Proposed Collection; Comment Request, 57717-57718 [E9-26884]
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Federal Register / Vol. 74, No. 215 / Monday, November 9, 2009 / Notices
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information to be 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 in
writing within 60 days of this
publication.
Comments should be directed to
Charles Boucher, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312 or send an
e-mail to: PRA_Mailbox@sec.gov.
November 2, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–26885 Filed 11–6–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon written request, copies available
from: U.S. Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
mstockstill on DSKH9S0YB1PROD with NOTICES
Extension:
Rule 17i–5, SEC File No. 270–531, OMB
Control No. 3235–0590.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of
1995 1 the Securities and Exchange
Commission (‘‘Commission’’) intends to
submit to the Office of Management and
Budget a request for extension of the
previously approved collections of
information discussed below. The Code
of Federal Regulations citation to this
collection of information is the
following: 17 CFR 240.17i–5.
Section 231 of the Gramm-LeachBliley Act of 1999 2 (the ‘‘GLBA’’)
amended Section 17 of the Securities
Exchange Act of 1934 (15 U.S.C. 78q) to
create a regulatory framework under
which a holding company of a brokerdealer (‘‘investment bank holding
company’’ or ‘‘IBHC’’) may voluntarily
be supervised by the Commission as a
1 44
U.S.C. 3501 et seq.
Law 106–102, 113 Stat. 1338 (1999).
2 Public
VerDate Nov<24>2008
16:52 Nov 06, 2009
Jkt 220001
supervised investment bank holding
company (or ‘‘SIBHC’’).3 In 2004, the
Commission promulgated rules,
including Rule 17i–5, to create a
framework for the Commission to
supervise SIBHCs.4 This framework
includes qualification criteria for
SIBHCs, as well as recordkeeping and
reporting requirements. Among other
things, this regulatory framework for
SIBHCs is intended to provide a basis
for non-U.S. financial regulators to treat
the Commission as the principal U.S.
consolidated home-country supervisor
for SIBHCs and their affiliated brokerdealers.5
Pursuant to Section 17(i)(3)(A) of the
Exchange Act, an SIBHC would be
required to make and keep records,
furnish copies thereof, and make such
reports as the Commission may require
by rule.6 Rule 17i–5 would require that
an SIBHC make and keep current certain
records relating to its business. In
addition, it would require that an SIBHC
preserve those and other records for
certain prescribed time periods.
The collections of information
required pursuant to Rule 17i–5 are
necessary so that the Commission can
adequately supervise the activities of
these SIBHCs. In addition, these
collections of information are needed to
allow the Commission to effectively
determine whether supervision of an
IBHC as an SIBHC is necessary or
appropriate in furtherance of the
purposes of section 17 of the Act. Rule
17i–5 also enhances the Commission’s
supervision of the SIBHCs’ subsidiary
broker-dealers through collection of
additional information and inspections
of affiliates of those broker-dealers.
Without this information and
documentation, the Commission would
be unable to adequately supervise an
SIBHC, nor would it be able to
determine whether continued
supervision of an IBHC as an SIBHC
were necessary and appropriate in
furtherance of the purposes of section
17 of the Act.
In addition to the one firm currently
supervised by the Commission as an
SIBHC, we estimate that 2 IBHCs will
file Notices of Intention with the
Commission to be supervised by the
Commission as SIBHCs; for a total of
three firms. An SIBHC will generally
require about 40 hours to create and
document a contingency plan regarding
funding and liquidity of the affiliate
3 See
15 U.S.C. 78q(i).
Exchange Act Release No. 49831 (Jun. 8,
2004), 69 FR 34472 (Jun. 21, 2004).
5 See H.R. Conf. Rep. No. 106–434, 165 (1999).
See also Exchange Act Release No. 49831, at 6 (Jun.
8, 2004), 69 FR 34472, at 34473 (Jun. 21, 2004).
6 15 U.S.C. 78q(i)(3)(A).
4 See
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
57717
group at a cost of $9,200 per SIBHC.7 An
SIBHC will require, on average,
approximately 64 hours each quarter to
create a record regarding stress tests, or
approximately 256 hours each year and
a cost of $49,920.8 Further, an SIBHC
will establish approximately 20 new
counterparty arrangements each year,
and will take, on average, about 30
minutes to create a record regarding the
basis for credit risk weights for each
such counterparty for a cost of $84,000.9
Finally, an SIBHC will generally require
about 24 hours per year to maintain the
specified records for a cost of $4,632.10
We believe that an IBHC likely will
upgrade its information technology
(‘‘IT’’) systems in order to more
efficiently comply with certain of the
SIBHC framework rules (including
Rules 17i–4, 17i–5, 17i–6 and 17i–7),
and that this would be a one-time cost.
Depending on the state of development
of the IBHC’s IT systems, it would cost
an IBHC between $1 million and $10
million to upgrade its IT systems to
comply with the SIBHC framework of
rules. Thus, on average, it would cost
each of the three IBHCs about $5.5
million to upgrade their IT systems, or
approximately $16.5 million in total. It
is impossible to determine what
percentage of the IT systems costs
would be attributable to each Rule, so
we allocated the total estimated upgrade
costs equally (at 25% for each of the
above-mentioned Rules), with
$4,125,000 attributable to Rule 17i–5.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the agency, including
7 We believe that an SIBHC would have a Senior
Treasury Manager create this record. According to
the Securities Industry and Financial Markets
Association (‘‘SIFMA’’), the hourly cost of a Senior
Treasury Manager is $230, as reflected in the
SIFMA’s Report on Management and Professional
Earnings for 2008 (‘‘SIFMA’s Report on Professional
Earnings’’), and modified to account for an 1,800hour work-year and multiplied by 5.35 to account
for bonuses, firm size, employee benefits and
overhead. ($230 × 40 hours) = $9,200.
8 We believe that an SIBHC would have a Floor
Supervisor, or equivalent, create this record with an
hourly cost of $195, as reflected in SIFMA’s Report
on Professional Earnings’’). ($195 × 256) = $49,920.
9 On average, each firm presently maintains
relationships with approximately 1,000
counterparties. Further, firms generally already
maintain documentation regarding their credit
decisions, including their determination of credit
risk weights, for those counterparties. We believe
that an SIBHC would have an Intermediate
Accountant create this record, which according to
SIFMA’s Report on Professional Earnings receives
an hourly rate of $141. ($141 × (30 minutes × 20
counterparties)) = $84,000.
10 We believe that an SIBHC would have a
Program Analyst perform this task and according to
SIFMA’s Report on Professional Earnings, a
Programmer Analyst receives an hourly rate of
$193. ($193 × 24) = $4,632.
E:\FR\FM\09NON1.SGM
09NON1
57718
Federal Register / Vol. 74, No. 215 / Monday, November 9, 2009 / Notices
whether the information will have
practical utility; (b) the accuracy of the
agency’s estimate of the burden of the
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 in
writing within 60 days of this
publication.
Comments should be directed to
Charles Boucher, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312 or send an email to: PRA_Mailbox@sec.gov.
Dated: November 2, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–26884 Filed 11–6–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSKH9S0YB1PROD with NOTICES
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, November 12, 2009 at 2
p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c), (5), (7), (8), 9(B) and (10)
and 17 CFR 200.402(a)(5), (7), (8), 9(ii)
and (10), permit consideration of the
scheduled matters at the Closed
Meeting.
Commissioner Aguilar, as duty
officer, voted to consider the items
listed for the Closed Meeting in a closed
session.
The subject matter of the Closed
Meeting scheduled for Thursday,
November 12, 2009 will be:
Institution and settlement of
injunctive actions; institution and
settlement of administrative
proceedings; and other matters relating
to enforcement proceedings.
16:52 Nov 06, 2009
Jkt 220001
Dated: November 5, 2009.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–27026 Filed 11–5–09; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60910; File No. SR–CBOE–
2009–083]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Change the Time at
Which CBSX Opens for Trading From
8:15 a.m. Central Time to 8 a.m. Central
Time
October 30, 2009.
Sunshine Act Meeting
VerDate Nov<24>2008
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact: The Office of the Secretary at
(202) 551–5400.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
30, 2009, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the Exchange.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to expand, by
15 minutes, the CBOE Stock Exchange
(‘‘CBSX’’) hours of operation. The text of
the proposed rule change is available on
the Exchange’s Web site (https://
www.cboe.org/Legal), at the Exchange’s
Office of the Secretary and at the
Commission.
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBSX proposes to amend Rule 51.2 to
change the time at which CBSX opens
for trading from 8:15 a.m. Central Time
to 8 a.m. Central Time. The proposed
change would be effective as of
November 2, 2009. This change has
been requested by the CBSX Traders.
Other U.S.-based exchanges open for
trading earlier than 8 a.m. Central Time,
including NASDAQ OMX PHLX.5
The Exchange represents that the
earlier start time will have no
implications for CBSX systems. Opening
at 8 a.m. Central Time merely extends
by 15 minutes the ‘‘pre-NMS’’ trading
window currently available on CBSX
between 8:15 and 8:30 Central Time.
CBSX DPMs will not be adversely
affected because their quoting
obligations do not start until 8:30 a.m.
Central Time. Lastly, the Exchange
represents that CBSX traders have been
notified of the time change via circular.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) 6 and the rules and regulations
thereunder and, in particular, the
requirements of Section 6(b) of the Act.7
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 8 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to remove
impediments to and to perfect the
mechanism for a free and open market
and a national market system, and, in
1 15
5 See
2 17
6 15
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
NASDAQ OMX PHLX Rule 101.
U.S.C. 78s(b)(1).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
E:\FR\FM\09NON1.SGM
09NON1
]]>Agencies
[Federal Register Volume 74, Number 215 (Monday, November 9, 2009)]
[Notices]
[Pages 57717-57718]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-26884]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon written request, copies available from: U.S. Securities and
Exchange Commission, Office of Investor Education and Advocacy,
Washington, DC 20549-0213.
Extension:
Rule 17i-5, SEC File No. 270-531, OMB Control No. 3235-0590.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 \1\ the Securities and Exchange Commission (``Commission'')
intends to submit to the Office of Management and Budget a request for
extension of the previously approved collections of information
discussed below. The Code of Federal Regulations citation to this
collection of information is the following: 17 CFR 240.17i-5.
---------------------------------------------------------------------------
\1\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------
Section 231 of the Gramm-Leach-Bliley Act of 1999 \2\ (the
``GLBA'') amended Section 17 of the Securities Exchange Act of 1934 (15
U.S.C. 78q) to create a regulatory framework under which a holding
company of a broker-dealer (``investment bank holding company'' or
``IBHC'') may voluntarily be supervised by the Commission as a
supervised investment bank holding company (or ``SIBHC'').\3\ In 2004,
the Commission promulgated rules, including Rule 17i-5, to create a
framework for the Commission to supervise SIBHCs.\4\ This framework
includes qualification criteria for SIBHCs, as well as recordkeeping
and reporting requirements. Among other things, this regulatory
framework for SIBHCs is intended to provide a basis for non-U.S.
financial regulators to treat the Commission as the principal U.S.
consolidated home-country supervisor for SIBHCs and their affiliated
broker-dealers.\5\
---------------------------------------------------------------------------
\2\ Public Law 106-102, 113 Stat. 1338 (1999).
\3\ See 15 U.S.C. 78q(i).
\4\ See Exchange Act Release No. 49831 (Jun. 8, 2004), 69 FR
34472 (Jun. 21, 2004).
\5\ See H.R. Conf. Rep. No. 106-434, 165 (1999). See also
Exchange Act Release No. 49831, at 6 (Jun. 8, 2004), 69 FR 34472, at
34473 (Jun. 21, 2004).
---------------------------------------------------------------------------
Pursuant to Section 17(i)(3)(A) of the Exchange Act, an SIBHC would
be required to make and keep records, furnish copies thereof, and make
such reports as the Commission may require by rule.\6\ Rule 17i-5 would
require that an SIBHC make and keep current certain records relating to
its business. In addition, it would require that an SIBHC preserve
those and other records for certain prescribed time periods.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q(i)(3)(A).
---------------------------------------------------------------------------
The collections of information required pursuant to Rule 17i-5 are
necessary so that the Commission can adequately supervise the
activities of these SIBHCs. In addition, these collections of
information are needed to allow the Commission to effectively determine
whether supervision of an IBHC as an SIBHC is necessary or appropriate
in furtherance of the purposes of section 17 of the Act. Rule 17i-5
also enhances the Commission's supervision of the SIBHCs' subsidiary
broker-dealers through collection of additional information and
inspections of affiliates of those broker-dealers. Without this
information and documentation, the Commission would be unable to
adequately supervise an SIBHC, nor would it be able to determine
whether continued supervision of an IBHC as an SIBHC were necessary and
appropriate in furtherance of the purposes of section 17 of the Act.
In addition to the one firm currently supervised by the Commission
as an SIBHC, we estimate that 2 IBHCs will file Notices of Intention
with the Commission to be supervised by the Commission as SIBHCs; for a
total of three firms. An SIBHC will generally require about 40 hours to
create and document a contingency plan regarding funding and liquidity
of the affiliate group at a cost of $9,200 per SIBHC.\7\ An SIBHC will
require, on average, approximately 64 hours each quarter to create a
record regarding stress tests, or approximately 256 hours each year and
a cost of $49,920.\8\ Further, an SIBHC will establish approximately 20
new counterparty arrangements each year, and will take, on average,
about 30 minutes to create a record regarding the basis for credit risk
weights for each such counterparty for a cost of $84,000.\9\ Finally,
an SIBHC will generally require about 24 hours per year to maintain the
specified records for a cost of $4,632.\10\
---------------------------------------------------------------------------
\7\ We believe that an SIBHC would have a Senior Treasury
Manager create this record. According to the Securities Industry and
Financial Markets Association (``SIFMA''), the hourly cost of a
Senior Treasury Manager is $230, as reflected in the SIFMA's Report
on Management and Professional Earnings for 2008 (``SIFMA's Report
on Professional Earnings''), and modified to account for an 1,800-
hour work-year and multiplied by 5.35 to account for bonuses, firm
size, employee benefits and overhead. ($230 x 40 hours) = $9,200.
\8\ We believe that an SIBHC would have a Floor Supervisor, or
equivalent, create this record with an hourly cost of $195, as
reflected in SIFMA's Report on Professional Earnings''). ($195 x
256) = $49,920.
\9\ On average, each firm presently maintains relationships with
approximately 1,000 counterparties. Further, firms generally already
maintain documentation regarding their credit decisions, including
their determination of credit risk weights, for those
counterparties. We believe that an SIBHC would have an Intermediate
Accountant create this record, which according to SIFMA's Report on
Professional Earnings receives an hourly rate of $141. ($141 x (30
minutes x 20 counterparties)) = $84,000.
\10\ We believe that an SIBHC would have a Program Analyst
perform this task and according to SIFMA's Report on Professional
Earnings, a Programmer Analyst receives an hourly rate of $193.
($193 x 24) = $4,632.
---------------------------------------------------------------------------
We believe that an IBHC likely will upgrade its information
technology (``IT'') systems in order to more efficiently comply with
certain of the SIBHC framework rules (including Rules 17i-4, 17i-5,
17i-6 and 17i-7), and that this would be a one-time cost. Depending on
the state of development of the IBHC's IT systems, it would cost an
IBHC between $1 million and $10 million to upgrade its IT systems to
comply with the SIBHC framework of rules. Thus, on average, it would
cost each of the three IBHCs about $5.5 million to upgrade their IT
systems, or approximately $16.5 million in total. It is impossible to
determine what percentage of the IT systems costs would be attributable
to each Rule, so we allocated the total estimated upgrade costs equally
(at 25% for each of the above-mentioned Rules), with $4,125,000
attributable to Rule 17i-5.
Written comments are invited on: (a) Whether the collection of
information is necessary for the proper performance of the functions of
the agency, including
[[Page 57718]]
whether the information will have practical utility; (b) the accuracy
of the agency's estimate of the burden of the 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 in writing within 60 days of this publication.
Comments should be directed to Charles Boucher, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send
an e-mail to: PRA_Mailbox@sec.gov.
Dated: November 2, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-26884 Filed 11-6-09; 8:45 am]
BILLING CODE 8011-01-P
