Proposed Collection; Comment Request

CourtSecurities And Exchange Commission
Citation86 FR 8658
Published date08 February 2021
SectionNotices
Record Number2021-02505
Federal Register, Volume 86 Issue 24 (Monday, February 8, 2021)
[Federal Register Volume 86, Number 24 (Monday, February 8, 2021)]
                [Notices]
                [Pages 8658-8659]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-02505]
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                SECURITIES AND EXCHANGE COMMISSION
                [SEC File No. 270-614, OMB Control No. 3235-0682]
                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 13h-1 and Form 13H.
                 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 13h-1 (17 CFR 240.13h-1)
                and Form 13H--registration of large traders \1\ submitted pursuant to
                Section 13(h) of 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.
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                 \1\ Rule 13h-1(a)(1) defines ``large trader'' as any person that
                directly or indirectly, including through other persons controlled
                by such person, exercises investment discretion over one or more
                accounts and effects transactions for the purchase or sale of any
                NMS security for or on behalf of such accounts, by or through one or
                more registered broker-dealers, in an aggregate amount equal to or
                greater than the identifying activity level or voluntarily registers
                as a large trader by filing electronically with the Commission Form
                13H.
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                 Rule 13h-1 and Form 13H under Section 13(h) of the Exchange Act
                established a large trader reporting framework.\2\ The framework
                assists the Commission in identifying and obtaining certain baseline
                information about traders that conduct a substantial amount of trading
                activity, as measured by volume or market value, in the U.S. securities
                markets.
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                 \2\ See Securities Exchange Act Release No. 64976 (July 27,
                2011), 76 FR 46959 (August 3, 2011).
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                 The identification, recordkeeping, and reporting framework provides
                the Commission with a mechanism to identify large traders and obtain
                additional information on their trading activity. Specifically, the
                system requires large traders to identify themselves to the Commission
                and file certain interim updates with the Commission on Form 13H. Upon
                receipt of Form 13H, the Commission issues a unique identification
                number to the large trader, which the large trader then provides to its
                registered broker-dealers. Certain registered broker-dealers are
                required to maintain transaction records for each large trader, and are
                required to report that information to the Commission upon request.\3\
                In addition, certain registered broker-dealers are required to adopt
                procedures to monitor their customers for activity that would
                [[Page 8659]]
                trigger the identification requirements of the rule.
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                 \3\ The Commission, pursuant to Rule 17a-25 (17 CFR 240.17a-25),
                currently collects transaction data from registered broker-dealers
                through the Electronic Blue Sheets (``EBS'') system to support its
                regulatory and enforcement activities. The large trader framework
                added two new fields, the time of the trade and the identity of the
                trader, to the EBS system.
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                 The respondents to the collection of information required by Rule
                13h-1 and Form 13H are large traders and registered broker-dealers. The
                Commission estimates that the total annual time burden associated with
                Rule 13h-1 and Form 13H is approximately 185,200 hours per year. This
                burden is comprised of 23,500 hours for initial filings by large
                traders on Form 13H, 58,500 hours for updates by large traders, 96,000
                hours for broker-dealer reporting, and 7,200 hours for broker-dealer
                monitoring.
                 Compliance with Rule 13h-1 is mandatory. The information collection
                under proposed Rule 13h-1 is considered confidential subject to the
                limited exceptions provided by the Freedom of Information Act.\4\
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                 \4\ See 5 U.S.C. 552 and 15 U.S.C. 78m(h)(7).
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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
                estimates of the burden of the proposed 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 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: [email protected].
                 Dated: February 3, 2021.
                J. Matthew DeLesDernier,
                Assistant Secretary.
                [FR Doc. 2021-02505 Filed 2-5-21; 8:45 am]
                BILLING CODE 8011-01-P
                

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