Notice2024-06631
Submission for OMB Review; Comment Request; Extension: Rule 13h-1 and Form 13H
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 28, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 61 (Thursday, March 28, 2024)</title>
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[Federal Register Volume 89, Number 61 (Thursday, March 28, 2024)]
[Notices]
[Page 21575]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-06631]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-614, OMB Control No. 3235-0682]
Submission for OMB Review; Comment Request; Extension: Rule 13h-1
and Form 13H
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
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'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of 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'').
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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
rule 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 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. Additionally, pursuant to Rule 613 (17
CFR 242.613), the Commission requires each national securities
exchange and national securities association to collect transaction
data from registered broker-dealers through the consolidated audit
trail, to which the agency has access, to support regulatory and
enforcement activities. This data includes the time of each trade
and the LTID number of the person exercising investment discretion
over the trade, the latter of which is assigned by the Commission
pursuant to Rule 13h-1.
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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 131,415 hours per year. This
burden is comprised of 31,140 hours for initial filings by large
traders on Form 13H, 75,300 hours for updates by large traders, 22,200
hours for broker-dealer reporting, and 2,775 hours for broker-dealer
monitoring.
Compliance with Rule 13h-1 is mandatory. The information collection
under 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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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.
The public may view background documentation for this information
collection at the following website: <a href="http://www.reginfo.gov">www.reginfo.gov</a>. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent by April 29, 2024 to (i) <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>; and (ii) David Bottom, Director/Chief Information
Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F
Street NE, Washington, DC 20549, or by sending an email to:
<a href="/cdn-cgi/l/email-protection#aafaf8ebf5e7cbc3c6c8c5d2ead9cfc984cdc5dc"><span class="__cf_email__" data-cfemail="d58587948a98b4bcb9b7baad95a6b0b6fbb2baa3">[email protected]</span></a>.
Dated: March 25, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-06631 Filed 3-27-24; 8:45 am]
BILLING CODE 8011-01-P
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