Proposed Extension of Existing Collection; Comment Request, 72461 [2011-30218]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 76, Number 226 (Wednesday, November 23, 2011)]
[Notices]
[Page 72461]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30218]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Extension of Existing 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 9b-1; OMB Control No. 3235-0480; SEC File No. 270-429.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission 
(``Commission'') is soliciting comments on the existing collection of 
information provided for the following rule: Rule 9b-1, Options 
Disclosure Document (17 CFR 240.9b-1) under the Securities Exchange Act 
of 1934 (15 U.S.C. 78 et seq.). The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    Rule 9b-1 (17 CFR 240.9b-1) sets forth the categories of 
information required to be disclosed in an options disclosure document 
(``ODD'') and requires the options markets to file an ODD with the 
Commission 60 days prior to the date it is distributed to investors. In 
addition, Rule 9b-1 provides that the ODD must be amended if the 
information in the document becomes materially inaccurate or incomplete 
and that amendments must be filed with the Commission 30 days prior to 
the distribution to customers. Finally, Rule 9b-1 requires a broker-
dealer to furnish to each customer an ODD and any amendments, prior to 
accepting an order to purchase or sell an option on behalf of that 
customer.
    There are 9 options markets that must comply with Rule 9b-1. These 
respondents work together to prepare a single ODD covering options 
traded on each market, as well as amendments to the ODD. These 
respondents file approximately 3 amendments per year. The staff 
calculates that the preparation and filing of amendments should take no 
more than eight hours per options market. Thus, the total compliance 
burden for options markets per year is 216 hours (9 options markets x 8 
hours per amendment x 3 amendments). The estimated cost for an in-house 
attorney is $354 per hour,\1\ resulting in a total cost of compliance 
for these respondents of $76,464 per year (216 hours at $354 per hour).
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    \1\ The $354 per hour figure for an Attorney is from SIFMA's 
Management & Professional Earnings in the Securities Industry 2010, 
modified by Commission staff to account for an 1800-hour work-year 
and multiplied by 5.35 to account for bonuses, firm size, employee 
benefits and overhead.
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    In addition, approximately 1,500 broker-dealers must comply with 
Rule 9b-1. Each of these respondents will process an average of 3 new 
customers for options each week and, therefore, will have to furnish 
approximately 156 ODDs per year. The postal mailing or electronic 
delivery of the ODD takes respondents no more than 30 seconds to 
complete for an annual compliance burden for each of these respondents 
of 78 minutes or 1.3 hours. Thus, the total compliance burden per year 
is 1,950 hours (1,500 broker-dealers x 1.3 hours). The estimated cost 
for a general clerk of a broker-dealer is $50 per hour,\2\ resulting in 
a total cost of compliance for these respondents of $97,500 per year 
(1,950 hours at $50 per hour).
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    \2\ The $50 per hour figure for a General Clerk is from SIFMA's 
Office Salaries in the Securities Industry 2010, modified by 
Commission staff to account for an 1800-hour work-year and 
multiplied by 2.93 to account for bonuses, firm size, employee 
benefits and overhead. The staff believes that the ODD would be 
mailed or electronically delivered to customers by a general clerk 
of the broker-dealer or some other equivalent position.
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    The total compliance burden for all respondents under this rule 
(both options markets and broker-dealers) is 2,166 hours per year (216 
+ 1,950), and the total compliance cost is $173,964 ($76,464 + 
$97,500).
    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 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.
    The Commission may not conduct or sponsor a collection of 
information unless it displays a currently valid control number. No 
person shall be subject to any penalty for failing to comply with a 
collection of information subject to the PRA that does not display a 
valid Office of Management and Budget (OMB) control number.
    Comments should be directed to: Thomas Bayer, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312 or 
send an email to: PRA_Mailbox@sec.gov. Comments must be submitted 
within 60 days of this notice.

    Dated: November 18, 2011.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30218 Filed 11-22-11; 8:45 am]
BILLING CODE 8011-01-P