Notice2021-26595
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
December 8, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 233 (Wednesday, December 8, 2021)</title>
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[Federal Register Volume 86, Number 233 (Wednesday, December 8, 2021)]
[Notices]
[Page 69695]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-26595]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No 270-488, OMB Control No. 3235-0542]
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 605 of Regulation NMS
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Rule 605 of Regulation NMS
(``Rule 605'') (17 CFR 242.605),\1\ 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
605, formerly known as, Rule 11Ac1-5, requires market centers to make
available to the public monthly order execution reports in electronic
form. The Commission believes that many market centers retain most, if
not all, of the underlying raw data necessary to generate these reports
in electronic format. Once the necessary data is collected, market
centers could either program their systems to generate the statistics
and reports, or transfer the data to a service provider (such as an
independent company in the business of preparing such reports or a
self-regulatory organization) that would generate the statistics and
reports.
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\1\ Regulation NMS, adopted by the Commission in June 2005,
redesignated the national market system rules previously adopted
under Section 11A of the Exchange Act. Rule 11Ac1-5 under the
Exchange Act was redesignated Rule 605 of Regulation NMS. See
Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR
37496 (June 29, 2005). In 2018, Commission amended Rule 605(a)(2) to
require market centers to keep reports required pursuant to Rule
605(a)(1) posted on an internet website that is free of charge and
readily accessible to the public for a period of three years from
the initial date of posting on the internet website. See Securities
Exchange Act Release No. 84528 (November 2, 2018), 83 FR 58338
(November 19, 2018).
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The collection of information obligations of Rule 605 apply to all
market centers that receive covered orders in national market system
securities. The Commission estimates that approximately 319 market
centers are subject to the collection of information obligations of
Rule 605. Each of these respondents is required to respond to the
collection of information on a monthly basis.
The Commission staff estimates that, on average, Rule 605 causes
each respondent to spend 6 hours per month to collect the data
necessary to generate the reports, or 72 hours per year. With an
estimated 319 market centers subject to Rule 605, the total data
collection time burden to comply with the monthly reporting requirement
is estimated to be 22,968 hours per year.
Based on discussions with industry sources, the Commission staff
estimates that an individual market center could retain a service
provider to prepare a monthly report using the data collected for
approximately $2,978 per month or $35,736 per year. This per-respondent
estimate is based on the rate that a market center could expect to
obtain if it negotiated on an individual basis. Based on the $2,978
estimate, the monthly cost to all 319 market centers to retain service
providers to prepare reports would be approximately $949,982, and the
total annual cost for all 319 market centers would be approximately
$11,399,784.
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 will
have practical utility; (b) the accuracy of the Commission'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 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 John
Pezzullo, 100 F Street NE, Washington, DC 20549; or send an email to:
<a href="/cdn-cgi/l/email-protection#9fcfcddec0d2fef6f3fdf0e7dfecfafcb1f8f0e9"><span class="__cf_email__" data-cfemail="98c8cad9c7d5f9f1f4faf7e0d8ebfdfbb6fff7ee">[email protected]</span></a>.
Dated: December 3, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26595 Filed 12-7-21; 8:45 am]
BILLING CODE 8011-01-P
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