[Federal Register Volume 88, Number 104 (Wednesday, May 31, 2023)]
[Notices]
[Pages 34907-34908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11549]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-203, OMB Control No. 3235-0195]


Proposed Collection; Comment Request; Extension: Rule 17Ab2-1 and 
Form CA-1

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

    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'') is soliciting comments on the 
collection of information provided for in Rule 17Ab2-1 (17 CFR 
240.17Ab2-1) and Form CA-1: Registration of Clearing Agencies (17 CFR 
249b.200) under the Securities Exchange Act of 1934 (``Exchange Act'') 
(15 U.S.C. 78a et seq.). The Commission plans to submit this existing 
collection of information to the Office of Management and Budget 
(``OMB'') for extension and approval.

[[Page 34908]]

    Rule 17Ab2-1 and Form CA-1 require clearing agencies to register 
with the Commission and to meet certain requirements with regard to, 
among other things, the clearing agency's organization, capacities, and 
rules. The information is collected from the clearing agency upon the 
initial application for registration on Form CA-1. Thereafter, 
information is collected by amendment to the initial Form CA-1 when 
changes in circumstances that render certain information on Form CA-1 
inaccurate, misleading, or incomplete necessitate modification of the 
information previously provided to the Commission.
    The Commission uses the information disclosed on Form CA-1 to (i) 
determine whether an applicant meets the standards for registration set 
forth in Section 17A of the Exchange Act, (ii) enforce compliance with 
the Exchange Act's registration requirement, and (iii) provide 
information about specific registered clearing agencies for compliance 
and investigatory purposes. Without Rule 17Ab2-1, the Commission could 
not perform these duties as statutorily required.
    The Commission staff estimates that the average Form CA-1 requires 
approximately 340 hours to complete and submit for approval, and that 
on average, the Commission receives one application each year. The 
Commission staff estimates that completion of an initial Form CA-1 will 
result in an internal cost of compliance of approximately $145,360 per 
year. The Commission staff estimates that it receives one amendment per 
year, and that an amendment requires approximately 60 hours of the 
exempt or registered clearing agency's staff time. The Commission staff 
estimates that amendment of a filed Form CA-1 will result in an 
internal cost of compliance of approximately $28,020 per year. 
Therefore, the aggregate hour burden is approximately 400 hours per 
year (340 + 60) and the aggregate internal cost of compliance is 
approximately $173,380 per year ($145,360 + $28,020).
    The external costs associated with work on Form CA-1 include fees 
charged by outside lawyers and accountants to assist the applicant or 
registrant to collect and prepare the information sought by the form 
(though such consultations are not required by the Commission). The 
Commission staff estimates that these external costs are more likely 
when novel questions arise under a new application, rather than under 
periodic review and amendment. The staff estimates an annual external 
cost of 45 hours of an Attorney's time (estimated at $462 per hour) and 
10 hours of a Senior Accountant's time (estimated at $241 per hour) for 
preparation of the Form CA-1, resulting in an aggregate external cost 
of approximately $23,200 per year ($20,790 + $2,410).
    Written comments are invited on: (a) whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
estimates of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology. 
Consideration will be given to comments and suggestions submitted by 
July 31, 2023.
    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.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
[email protected].

    Dated: May 25, 2023.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2023-11549 Filed 5-30-23; 8:45 am]
BILLING CODE 8011-01-P


