Notice2026-11211

Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 8c-1

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
June 4, 2026

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 91 Issue 107 (Thursday, June 4, 2026)</title>
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[Federal Register Volume 91, Number 107 (Thursday, June 4, 2026)]
[Notices]
[Page 33845]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11211]



[[Page 33845]]

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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0514]


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Extension: Rule 8c-1

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 
previously approved 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.).
    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 broker-
dealer. Additionally, Rule 8c-1 requires broker-dealers to make certain 
written notifications to pledgees in connection with such use of 
customer securities as collateral.\1\
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    \1\ See Exchange Act Release No. 2690 (November 15, 1940); 
Exchange Act Release No. 9428 (December 29, 1971).
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    The information required by Rule 8c-1 is necessary for the 
execution of the Commission's mandate under the Exchange Act to prevent 
broker-dealers from hypothecating or arranging for the hypothecation of 
any securities carried for the account of any customer under certain 
circumstances. In addition, the information required by Rule 8c-1 
provides important investor protections.
    There are approximately 54 respondents as of the end of 2025 (i.e., 
broker-dealers that conducted business with the public, filed Part II 
of the FOCUS Report, did not claim an exemption from the Reserve 
Formula computation, and reported that they had a bank loan during at 
least one quarter of the current year). Each respondent makes an 
estimated 45 annual responses, for an aggregate total of approximately 
2,430 responses per year.\2\ Each response takes approximately 0.5 
hours to complete. Therefore, the total third-party disclosure burden 
per year is approximately 1,215 hours.\3\
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    \2\ 54 respondents x 45 annual responses = 2,430 aggregate total 
of annual responses.
    \3\ 2,430 responses x 0.5 hours = 1,215 hours.
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    The retention period for the recordkeeping requirement under Rule 
8c-1 is three years. The recordkeeping requirement under Rule 8c-1 is 
mandatory to ensure that broker-dealers do not commingle their 
securities or use them to finance the broker-dealers' proprietary 
business. This rule does not involve the collection of confidential or 
personal identifiable information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB Control Number.
    The public may view and comment on this information collection 
request at: <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202603-3235-023">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202603-3235-023</a> or email comment to 
<a href="/cdn-cgi/l/email-protection#80cdc2d8aecfcdc2aecfc9d2c1aed3c5c3dfe4e5f3ebdfefe6e6e9e3e5f2c0efede2aee5eff0aee7eff6"><span class="__cf_email__" data-cfemail="6c212e344223212e4223253e2d423f292f3308091f0733030a0a050f091e2c03010e4209031c420b031a">[email&#160;protected]</span></a> within 30 days of the day 
after publication of this notice, by July 6, 2026.

    Dated: June 2, 2026.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-11211 Filed 6-3-26; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on June 4, 2026.

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