Notice2021-26595

Proposed Collection; Comment Request

Primary source

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Published
December 8, 2021

Issuing agencies

Securities and Exchange Commission

Full Text

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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&#160;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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Indexed from Federal Register on December 8, 2021.

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