Proposed Extension of Existing Collection; Comment Request, 24747-24748 [2012-9937]
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pmangrum on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Notices
Office of Management and Budget for
extension and approval.
In response to an operational crisis in
the securities industry between 1967
and 1970, the Commission adopted Rule
17a–11 (17 CFR 240.17a–11) under the
Exchange Act on July 11, 1971. The
Rule requires broker-dealers that are
experiencing financial or operational
difficulties to provide notice to the
Commission, the broker-dealer’s
designated examining authority
(‘‘DEA’’), and the Commodity Futures
Trading Commission (‘‘CFTC’’) if the
broker-dealer is registered with the
CFTC as a futures commission
merchant. Rule 17a–11 is an integral
part of the Commission’s financial
responsibility program which enables
the Commission, a broker-dealer’s DEA,
and the CFTC to increase surveillance of
a broker-dealer experiencing difficulties
and to obtain any additional
information necessary to gauge the
broker-dealer’s financial or operational
condition.
Rule 17a–11 also requires over-thecounter (‘‘OTC’’) derivatives dealers and
broker-dealers that are permitted to
compute net capital pursuant to
Appendix E to Exchange Act Rule 15c3–
1 to notify the Commission when their
tentative net capital drops below certain
levels. OTC derivatives dealers must
also provide notice to the Commission
of backtesting exceptions identified
pursuant to Appendix F of Rule 15c3–
1 (17 CFR 15c3–1f).
Compliance with the Rule is
mandatory. The Commission will
generally not publish or make available
to any person notices or reports received
pursuant to Rule 17a–11. The
Commission believes that information
obtained under Rule 17a–11 relates to a
condition report prepared for the use of
the Commission, other federal
governmental authorities, and securities
industry self-regulatory organizations
responsible for the regulation or
supervision of financial institutions.
Only broker-dealers whose capital
declines below certain specified levels
or who are otherwise experiencing
financial or operational problems have a
reporting burden under Rule 17a–11. In
2011, the Commission received
approximately 465 notices under this
Rule, including one notice from an OTC
derivatives dealer permitted to compute
net capital pursuant to Appendix E to
Exchange Act Rule 15c3–1.
Each broker-dealer reporting pursuant
to Rule 17a–11 will spend
approximately one hour preparing and
transmitting the notice required by the
rule. Accordingly, the total estimated
annualized burden under Rule 17a–11 is
465 hours.
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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
estimate of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information on respondents; 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 current 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.
Please direct your written comments
to: Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way,
Alexandria, VA 22312 or send an email
to: PRA_Mailbox@sec.gov.
Dated: April 19, 2012.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–9938 Filed 4–24–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Extension of Existing
Collection; Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Rule 17a–6; OMB Control No. 3235–0489;
SEC File No. 270–433.
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 collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
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24747
Rule 17a–6 (17 CFR 240.17a–6) under
the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) permits national
securities exchanges, national securities
associations, registered clearing
agencies, and the Municipal Securities
Rulemaking Board (‘‘MSRB’’)
(collectively, ‘‘SROs’’) to destroy or
convert to microfilm or other recording
media records maintained under Rule
17a–1, if they have filed a record
destruction plan with the Commission
and the Commission has declared such
plan effective.
There are currently 26 SROs: 15
national securities exchanges, 1 national
securities association, the MSRB, and 9
registered clearing agencies. Of the 26
SROs, 2 SRO respondents have filed a
record destruction plan with the
Commission. The staff calculates that
the preparation and filing of a new
record destruction plan should take 160
hours. Further, any existing SRO record
destruction plans may require revision,
over time, in response to, for example,
changes in document retention
technology, which the Commission
estimates will take much less than the
160 hours estimated for a new plan.
Thus, the total annual compliance
burden is estimated to be 60 hours per
year. The approximate cost per hour is
$305, resulting in a total cost of
compliance for these respondents of
$18,300 per year (30 hours @ $305 per
hour).
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
estimate of the burden of the 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
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25APN1
24748
Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Notices
Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way,
Alexandria, VA 22312 or send an email
to PRA_Mailbox@sec.gov.
Dated: April 19, 2012.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–9937 Filed 4–24–12; 8:45 am]
Good Delivery and Not Good Delivery
MBS TBA Transactions
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66829; File No. SR–FINRA–
2012–020]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Granting
Approval of Proposed Rule Change
Relating to Post-Trade Transparency
for Agency Pass-Through MortgageBacked Securities Traded TBA
April 18, 2012.
I. Introduction
On March 1, 2012, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change relating to posttrade transparency for Agency PassThrough Mortgage-Backed Securities
(‘‘MBS’’) traded ‘‘to be announced’’ or
‘‘TBA.’’ The proposed rule change was
published for comment in the Federal
Register on March 16, 2012.3 The
Commission received no comments on
the proposal. This order approves the
proposed rule change.
pmangrum on DSK3VPTVN1PROD with NOTICES
II. Description of the Proposal
FINRA utilizes the Trade Reporting
and Compliance Engine (‘‘TRACE’’) to
collect from its members and publicly
disseminate information on secondary
over-the-counter transactions in
corporate debt securities and Agency
Debt Securities and certain primary
market transactions.4 FINRA also
utilizes TRACE to collect information
on transactions in Asset-Backed
Securities, but FINRA currently does
not disseminate such information
publicly.5 Agency Pass-Through
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 66577
(March 12, 2012), 77 FR 15827 (March 16, 2012)
(‘‘Notice’’).
4 See Securities Exchange Act Release No. 60726
(September 28, 2009), 74 FR 50991 (October 2,
2009) (approving SR–FINRA–2009–010).
5 See Securities Exchange Act Release No. 61566
(February 22, 2010), 75 FR 9262 (March 1, 2010)
2 17
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15:14 Apr 24, 2012
Mortgage-Backed Securities traded TBA
(‘‘MBS TBA’’) are a specific type of
Asset-Backed Security.6 FINRA has
proposed to amend its rules to reduce
the reporting timeframe for and to
provide for public dissemination of
MBS TBA transactions, and to make
certain other changes.
Jkt 226001
FINRA has proposed to amend the
definition of TBA set forth in Rule
6710(u) to identify two subsets of MBS
TBA transactions: MBS TBA
transactions ‘‘for good delivery’’ (‘‘MBS
TBA Good Delivery’’) and MBS TBA
transactions ‘‘not for good delivery’’
(‘‘MBS TBA Not Good Delivery’’). MBS
TBA Good Delivery meet certain market
standards and conventions, known
generally as ‘‘good delivery guidelines;’’
MBS TBA Not Good Delivery do not
meet those guidelines.7 Most newly
issued MBS TBA are MBS TBA Good
Delivery, and are composed primarily of
standard loans such as 15- and 30-year
fixed-rate single-family loans.8 Newly
issued MBS TBA Not Good Delivery, on
the other hand, include primarily nonstandard loans, such as interest-only
mortgages, project/construction loans,
and certain non-conforming mortgages
on single family residences.9 According
to FINRA, MBS TBA Good Delivery are
the most liquid and account for the vast
majority of MBS TBA transactions.10
Reduction of Reporting Period
FINRA also has proposed to amend
Rule 6730 to reduce the period for
reporting MBS TBA transactions to
TRACE. The reduction would occur in
two stages for both MBS TBA Good
Delivery and MBS TBA Not Good
Delivery transactions, but the reduced
reporting period for each type of MBS
TBA transaction would be different.
With respect to MBS TBA Good
Delivery transactions, first, for a pilot
program of approximately 180 days
duration, FINRA has proposed to reduce
the reporting period from no later than
the close of the TRACE system on the
date of execution to no later than 45
minutes from the Time of Execution.11
(approving SR–FINRA–2009–065). The term ‘‘Asset
Backed Security’’ is defined in FINRA Rule
6710(m).
6 See FINRA Rules 6710(m), (u), and (v).
7 See Notice, 77 FR at 15827–28.
8 See Notice, 77 FR at 15828.
9 See Notice, 77 FR at 15828 n.7.
10 See Notice, 77 FR at 15828, 15830.
11 See proposed Rule 6730(a)(3)(D)(i)b.
Exceptions for transactions that are executed within
45 minutes of the close of the TRACE system and
for transactions executed when it is closed are set
forth in subparts a., c., and d. of proposed Rule
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Second, after approximately 180 days,
the pilot program would expire and the
reporting period would be reduced from
no later than 45 minutes from the Time
of Execution to no later than 15 minutes
from the Time of Execution.12
With respect to MBS TBA Not Good
Delivery transactions, first, for a pilot
program of approximately 180 days
duration, FINRA has proposed to reduce
the reporting period from no later than
the close of the TRACE system on the
date of execution to no later than two
hours from the Time of Execution.13
Second, after approximately 180 days,
the pilot program would expire and the
reporting period would be reduced from
no later than two hours from the Time
of Execution to no later than one hour
from the Time of Execution.14
Dissemination of MBS TBA Transaction
Information
FINRA Rule 6750(b)(4) currently
provides that transactions in AssetBacked Securities are not subject to
dissemination. The proposal would
amend Rule 6750(b)(4) to provide for
dissemination of information on MBS
TBA transactions immediately upon
receipt of the transaction report.
Specifically, FINRA has proposed to
amend Rule 6750(b)(4) to provide that
FINRA will not disseminate information
on a transaction in an Asset-Backed
Security, except an MBS TBA
transaction. As a result of this proposed
change and the reduced reporting
periods that FINRA has proposed for
MBS TBA transactions, information on
MBS TBA Good Delivery and MBS TBA
Not Good Delivery transactions would
be disseminated within 45 minutes and
two hours, respectively, of the Time of
Execution during the pilot period. After
the pilot period expires, information on
MBS TBA Good Delivery and MBS TBA
Not Good Delivery transactions would
be disseminated within 15 minutes and
6730(a)(3)(D)(i). The term ‘‘Time of Execution’’ is
defined in Rule 6710(d).
12 See proposed Rule 6730(a)(3)(D)(ii), which
incorporates by reference Rule 6730(a)(1). Rule
6730(a)(1) requires that transactions in TRACEEligible Securities be reported within 15 minutes of
the Time of Execution, and also provides
exceptions for transactions in TRACE-Eligible
Securities that are executed shortly before the
TRACE system closes and when it is closed.
13 See proposed Rule 6730(a)(3)(E)(i)b. Exceptions
for transactions that are executed within two hours
of the close of the TRACE system and for
transactions executed when it is closed are set forth
in subparts a., c., and d. of proposed Rule
6730(a)(3)(E)(i).
14 See proposed Rule 6730(a)(3)(E)(ii)b.
Exceptions for transactions that are executed within
one hour of the close of the TRACE system and for
transactions executed when it is closed are set forth
in subparts a., c., and d. of proposed Rule
6730(a)(3)(E)(ii).
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[Federal Register Volume 77, Number 80 (Wednesday, April 25, 2012)]
[Notices]
[Pages 24747-24748]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9937]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Extension of Existing Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 17a-6; OMB Control No. 3235-0489; SEC File No. 270-433.
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 collection of
information summarized below. The Commission plans to submit this
existing collection of information to the Office of Management and
Budget for extension and approval.
Rule 17a-6 (17 CFR 240.17a-6) under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) permits national securities exchanges,
national securities associations, registered clearing agencies, and the
Municipal Securities Rulemaking Board (``MSRB'') (collectively,
``SROs'') to destroy or convert to microfilm or other recording media
records maintained under Rule 17a-1, if they have filed a record
destruction plan with the Commission and the Commission has declared
such plan effective.
There are currently 26 SROs: 15 national securities exchanges, 1
national securities association, the MSRB, and 9 registered clearing
agencies. Of the 26 SROs, 2 SRO respondents have filed a record
destruction plan with the Commission. The staff calculates that the
preparation and filing of a new record destruction plan should take 160
hours. Further, any existing SRO record destruction plans may require
revision, over time, in response to, for example, changes in document
retention technology, which the Commission estimates will take much
less than the 160 hours estimated for a new plan. Thus, the total
annual compliance burden is estimated to be 60 hours per year. The
approximate cost per hour is $305, resulting in a total cost of
compliance for these respondents of $18,300 per year (30 hours @ $305
per hour).
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
estimate of the burden of the 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
[[Page 24748]]
Exchange Commission, c/o Remi Pavlik-Simon, 6432 General Green Way,
Alexandria, VA 22312 or send an email to PRA_Mailbox@sec.gov.
Dated: April 19, 2012.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-9937 Filed 4-24-12; 8:45 am]
BILLING CODE 8011-01-P
