
[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)]
[Notices]
[Page 71871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29202]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-2736.

Extension:
    Rule 17a-12/Form X-17A-5 Part IIB; SEC File No. 270-442, OMB 
Control No. 3235-0498.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in Rule 17a-
12 (17 CFR 240.17a-12) and Part IIB of Form X-17A-5 (17 CFR 249.617) 
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
    Rule17a-12 requires OTC derivatives dealers to file quarterly 
Financial and Operational Combined Uniform Single Reports (``FOCUS'' 
reports) on Part IIB of Form X-17A-5, the basic document for reporting 
the financial and operational condition of over-the-counter (``OTC'') 
derivatives dealers. Rule 17a-12 also requires that OTC derivatives 
dealers file audited financial statements annually. The reports 
required under Rule 17a-12 provide the Commission with information used 
to monitor the operations of OTC derivatives dealers and to enforce 
their compliance with the Commission's rules. These reports also enable 
the Commission to review the business activities of OTC derivatives 
dealers and to anticipate, where possible, how these dealers may be 
affected by significant economic events.
    There are currently four registered OTC derivatives dealers. The 
staff expects that one additional firm will register as an OTC 
derivatives dealer within the next three years. The staff estimates 
that the average amount of time necessary to prepare and file the 
quarterly reports required by the rule is eighty hours per OTC 
derivatives dealer \1\ and that the average amount of time to prepare 
and file the annual audit report is 100 hours per OTC derivatives 
dealer per year, for a total reporting burden of 180 hours per OTC 
derivatives dealer annually. Thus the staff estimates that the total 
industry-wide reporting burden to comply with the requirements of Rule 
17a-12 is 900 hours per year (180 x 5). Further, the Commission 
estimates that the total internal compliance cost associated with this 
requirement is approximately $255,000 per year.\2\ The average annual 
reporting cost per broker-dealer for an independent public accountant 
to examine the financial statements is approximately $46,300 per 
broker-dealer. Thus, the total industry-wide annual reporting cost is 
approximately $231,500 ($46,300 x 5).
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    \1\ Based upon an average of 4 responses per year and an average 
of 20 hours spent preparing each response.
    \2\ Based on staff experience, an OTC derivatives dealer likely 
would have a Compliance Manager gather the necessary information and 
prepare and file the quarterly reports and annual audit report and 
supporting schedules. According to the Securities Industry and 
Financial Markets Association Report on Management and Professional 
Earnings in the Securities Industry dated October 2013, which 
provides base salary and bonus information for middle-management and 
professional positions within the securities industry, the hourly 
cost of a compliance manager, which the Commission staff has 
modified to account for an 1800-hour work year and multiplied by 
5.35 to account for bonuses, firm size, employee benefits, and 
overhead, is approximately $283/hour. $283/hour times 900 hours = 
$254,700, rounded to $255,000.
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    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.
    The public may view background documentation for this information 
collection at the following Web site: www.reginfo.gov. Comments should 
be directed to: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 10102, New Executive Office Building, 
Washington, DC 20503, or by sending an email to: 
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or by sending an 
email to PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: November 10, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-29202 Filed 11-16-15; 8:45 am]
BILLING CODE 8011-01-P


