[Federal Register Volume 85, Number 111 (Tuesday, June 9, 2020)]
[Notices]
[Page 35356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12389]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-196, OMB Control No. 3235-0202]


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 15c2-11

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), 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 
15c2-11, (17 CFR 240.15c2-11), under the Securities Exchange Act of 
1934 (15 U.S.C. 78a et seq.) (``Exchange Act'').
    Rule 15c2-11 under the Exchange Act regulates the initiation or 
resumption of quotations in a quotation medium by a broker-dealer for 
over-the-counter (``OTC'') securities. The Rule is intended to prevent 
broker-dealers from initiating or resuming quotations for OTC 
securities that may facilitate a fraudulent or manipulative scheme. 
Subject to certain exceptions, the Rule prohibits broker-dealers from 
publishing a quotation for a security, or submitting a quotation for 
publication, in a quotation medium unless they have reviewed specified 
information concerning the security and the issuer. With respect to the 
securities of certain private issuers, a broker-dealer must make such 
specified information reasonably available upon request to any person 
expressing an interest in a proposed transaction in the security with 
such broker or dealer.
    Based on information provided by Financial Industry Regulatory 
Authority, Inc. (``FINRA''), we understand that in the 2019 calendar 
year, approximately 34 broker-dealers completed information reviews 
pursuant to the Rule for 384 securities--87 concerning securities of 
reporting issuers and 297 concerning securities of non-reporting 
issuers. The collection of information that is submitted to FINRA for 
review and approval is currently not available to the public from 
FINRA.
    We estimate that it will take a broker-dealer 4 hours to review, 
record and retain the information pertaining to a reporting issuer 
(approximately 3 hours relating to recordkeeping and one hour relating 
to third-party disclosure), and 8 hours to review, record and retain 
the information pertaining to a non-reporting issuer (approximately 7 
hours relating to recordkeeping and one hour relating to third-party 
disclosure). We therefore estimate that the total time burden for 
recordkeeping associated with the information review requirement of the 
Rule will be 2,340 hours [for (87 reviews for reporting issuers x 3 
hours) + (297 reviews for non-reporting issuers x 7 hours)]; and the 
total time burden for third-party disclosure associated with the 
information review requirement under the Rule will be 384 hours [for 
(87 reviews for reporting issuers x 1 hour) + (297 reviews for non-
reporting issuers x 1 hour)]. Thus, we estimate the industrywide total 
annual burden hours associated with the information review requirement 
under the Rule to be 2,724 hours (2,340 hours for recordkeeping + 384 
hours for third-party disclosure). The Commission believes that the 
compliance costs for these 2,724 hours would be borne by internal staff 
working at a rate of $62 per hour.\1\
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    \1\ The $62 per hour figure for a General Clerk is from SIFMA's 
Office Salaries in the Securities Industry 2013, modified by 
Commission staff to account for an 1800-hourwork-year and inflation, 
and multiplied by 2.93 to account for bonuses, firm size, employee 
benefits and overhead.
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    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    The public may view background documentation for this information 
collection at the following website: www.reginfo.gov. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by 
sending an email to: PRA_Mailbox@sec.gov.

    Dated: June 3, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-12389 Filed 6-8-20; 8:45 am]
 BILLING CODE 8011-01-P


