60 Day Notice

3235-0514 60 Day Notice.pdf

Rule 8c-1, Hypothecation of customer's securities

60 Day Notice

OMB: 3235-0514

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Federal Register / Vol. 85, No. 57 / Tuesday, March 24, 2020 / Notices
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly.
All submissions should refer to File
Number SR–CboeEDGA–2020–008 and
should be submitted on or before April
14, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–06117 Filed 3–23–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–195; OMB Control No.
3235–0198]

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

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Extension:
Rule 15c2–5.

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 existing collection of information
provided for in Rule 15c2–5 (17 CFR
240.15c2–5) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) (‘‘Exchange Act’’). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 15c2–5 prohibits a broker-dealer
from arranging or extending certain
loans to persons in connection with the
offer or sale of securities unless, before
any element of the transaction is entered
into, the broker-dealer: (1) Delivers to
the person a written statement
containing the exact nature and extent
of the person’s obligations under the
loan arrangement; the risks and
disadvantages of the loan arrangement;
and all commissions, discounts, and
other remuneration received and to be
received in connection with the
transaction by the broker-dealer or
certain related persons (unless the
person receives certain materials from
the lender or broker-dealer which
contain the required information); and
30 17

CFR 200.30–3(a)(12).

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17:34 Mar 23, 2020

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(2) obtains from the person information
on the person’s financial situation and
needs, reasonably determines that the
transaction is suitable for the person,
and retains on file and makes available
to the person on request a written
statement setting forth the brokerdealer’s basis for determining that the
transaction was suitable. The collection
of information required by Rule 15c2–5
is necessary to execute the
Commission’s mandate under the
Exchange Act to prevent fraudulent,
manipulative, and deceptive acts and
practices by broker-dealers.
The Commission estimates that there
are approximately 50 respondents that
require an aggregate total of 600 hours
to comply with Rule 15c2–5.1 Each of
these approximately 50 registered
broker-dealers makes an estimated six
annual responses, for an aggregate total
of 300 responses per year.2 Each
response takes approximately two hours
to complete. Thus, the total compliance
burden per year is 600 burden hours.3
The approximate internal compliance
cost per hour is $63.00 for clerical
labor,4 resulting in a total internal
compliance cost of $37,800.5 These
reflect internal labor costs; there are no
external labor, capital, or start-up costs.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including 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.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
1 50 respondents × 6 responses per year × 2 hours
per response = 600 hours per year.
2 50 respondents × 6 responses per year = 300
responses per year.
3 300 responses per year × 2 hours per response
= 600 hours per year.
4 Cost per hour for a clerk is from SIFMA’s Office
Salaries in the Securities Industry 2013, modified
by Commission staff to account for an 1800-hour
work-year, multiplied by 2.93 to account for
bonuses, firm size, employee benefits and overhead,
and adjusted by a factor of 1.0965 to account for
inflation.
5 600 hours per year × $63.00 per hour = $37,800
per year.

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under the PRA 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 Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
[email protected].
Dated: March 18, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–06109 Filed 3–23–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–455, OMB Control No.
3235–0514]

Proposed Collection; 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 8c–1.

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 existing collection of information
provided for in Rule 8c–1 (17 CFR
240.8c–1), 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.
Rule 8c–1 generally prohibits a
broker-dealer from using its customers’
securities as collateral to finance its own
trading, speculating, or underwriting
transactions. More specifically, Rule 8c–
1 states three main principles: (1) A
broker-dealer is prohibited from
commingling the securities of different
customers as collateral for a loan
without the consent of each customer;
(2) a broker-dealer cannot commingle
customers’ securities with its own
securities under the same pledge; and
(3) a broker-dealer can only pledge its
customers’ securities to the extent that
customers are in debt to the brokerdealer. Additionally, Rule 8c–1 requires
broker-dealers to make certain written
notifications to pledgees in connection

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