Notice2021-14263
Proposed Collection; Comment Request
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
July 6, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 126 (Tuesday, July 6, 2021)</title>
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[Federal Register Volume 86, Number 126 (Tuesday, July 6, 2021)]
[Notices]
[Pages 35558-35559]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-14263]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-450, OMB Control No. 3235-0505]
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 303 of Regulation ATS
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 303 of Regulation ATS
(17 CFR 242.303) 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.
Regulation ATS sets forth a regulatory regime for ``alternative
trading systems'' (``ATSs''), which are entities that carry out
exchange functions but are not required to register as national
securities exchanges under the Act. In lieu of exchange registration,
an ATS can instead opt to register with the Commission as a broker-
dealer and, as a condition to not having to register as an exchange,
must instead comply with Regulation ATS. Rule 303 of Regulation ATS (17
CFR 242.303) describes the record preservation requirements for ATSs.
Rule 303 also describes how such records must be maintained, what
entities may perform this function, and how long records must be
preserved.
Under Rule 303, ATSs are required to preserve all records made
pursuant to Rule 302, which includes information relating to
subscribers, trading summaries, and time-sequenced order information.
Rule 303 also requires ATSs to preserve any notices provided to
subscribers, including, but not limited to, notices regarding the ATSs
operations and subscriber access. For an ATS subject to the fair access
requirements described in Rule 301(b)(5)(ii) of Regulation ATS, Rule
303 further requires the ATS to preserve at least one copy of its
standards for access to trading, all documents relevant to the ATS's
decision to grant, deny, or limit access to any person, and all other
documents made or received by the ATS in the course of complying with
Rule 301(b)(5) of Regulation ATS. For an ATS subject to the capacity,
integrity, and security requirements for automated systems under Rule
301(b)(6) of Regulation ATS, Rule 303 requires an ATS to preserve all
documents made or received by the ATS related to its compliance,
including all correspondence, memoranda, papers, books, notices,
accounts, reports, test scripts, test results, and other similar
records. Rule 303(a)(1)(v) of Regulation ATS requires every ATS to
preserve the written safeguards and written procedures mandated under
Rule 301(b)(10). As provided in Rule 303(a)(1), ATSs are required to
keep all of these records, as applicable, for a period of at least
three years, the first two in an easily accessible place. In addition,
Rule 303 requires ATSs to preserve records of partnership articles,
articles of incorporation or charter, minute books, stock certificate
books, copies of reports filed pursuant to Rule 301(b)(2) and Rule 304,
and records made pursuant to Rule 301(b)(5) for the life of the ATS.
ATSs that trade both NMS Stock and securities other than NMS Stock are
required to file, and also preserve under Rule 303, both Form ATS and
related amendments and Form ATS-N and related amendments.
The information contained in the records required to be preserved
by Rule 303 will be used by examiners and other representatives of the
Commission, state securities regulatory authorities, and the self-
regulatory organizations to ensure that ATSs are in compliance with
Regulation ATS as well as other applicable rules and regulations.
Without the data required by the Rule, regulators would be limited in
their ability to comply with their statutory obligations, provide for
the protection of investors, and promote the maintenance of fair and
orderly markets. Respondents consist of ATSs that choose to register as
broker-dealers and comply with the requirements of Regulation ATS.
There are currently 94 respondents. The Commission believes that
the average ongoing hourly burden for a respondent to comply with the
baseline record preservation requirements under Rule 303 is
approximately 15 hours per year. We thus estimate that the average
aggregate ongoing burden to comply with the baseline Rule 303 record
preservation requirements is approximately 1,410 hours per year (94
ATSs x 15 hours = 1,410 hours). In addition, there are currently two
ATSs that transact in both NMS stock and non-NMS stock on their ATSs.
These two ATSs have a slightly greater burden because they have to keep
both Form ATS and Form ATS-N and related documents (e.g., amendments).
For these two ATS's, we estimate that the ongoing burden above the
current baseline estimate for preserving records will be approximately
1 hour annually per ATS for a total annual burden above the current
baseline burden estimate of 2 hours for all respondents. Thus, the
estimated average annual aggregate burden for alternative trading
systems to comply with Rule 303 is approximately 1,412 hours (1,410
hours + 2 hours).
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: <a href="/cdn-cgi/l/email-protection#c09092819f8da1a9aca2afb880b3a5a3eea7afb6"><span class="__cf_email__" data-cfemail="58080a1907153931343a3720182b3d3b763f372e">[email protected]</span></a>.
[[Page 35559]]
Dated: June 29, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-14263 Filed 7-2-21; 8:45 am]
BILLING CODE 8011-01-P
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