Notice2023-01251
Submission for OMB Review; Comment Request; Extension: Rule 10b-10
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
January 24, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 15 (Tuesday, January 24, 2023)</title>
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[Federal Register Volume 88, Number 15 (Tuesday, January 24, 2023)]
[Notices]
[Pages 4262-4263]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-01251]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-389, OMB Control No. 3235-0444]
Submission for OMB Review; Comment Request; Extension: Rule 10b-
10
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 (44 U.S.C. 3501 et seq.) (``PRA''), 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
10b-10 (17 CFR 240.10b-10) under the Securities and Exchange Act of
1934 (15 U.S.C. 78a et seq.).
Rule 10b-10 requires broker-dealers to convey specified information
to customers regarding their securities transactions. This information
includes the date and time of the transaction, the identity and number
of shares bought or sold, and whether the broker-dealer acts as agent
for the customer or as principal for its own account. Depending on
whether the broker-dealer acts as agent or principal, Rule 10b-10
requires the disclosure of commissions, as well as mark-up and mark-
down information. For transactions in debt securities, Rule 10b-10
requires the disclosure of redemption and yield information. Rule 10b-
10 potentially applies to all of the approximately 3,531 firms
registered with the Commission that effect transactions for or with
customers.
Based on information provided by registered broker-dealers to the
Commission in FOCUS Reports, the Commission staff estimates that on
average, registered broker-dealers process approximately 27,151,388,510
order tickets per year for transactions for or with customers. Each
order ticket representing a transaction effected for or with a customer
generally results in one confirmation. Therefore, the Commission staff
estimates that approximately 27,151,388,510 confirmations are sent to
customers annually. The confirmations required by Rule 10b-10 are
generally processed through automated systems. It takes approximately
30 seconds to generate and send a confirmation. Accordingly, the
Commission staff estimates that broker-dealers spend approximately
226,261,571 hours per year complying with Rule 10b-10 (27,151,388,510 x
.5 / 60).
The number of confirmations sent and the cost of sending each
confirmation varies from firm to firm. Smaller firms generally send
fewer confirmations than larger firms because they effect fewer
transactions. The Commission staff estimates the cost of producing and
sending a paper confirmation, including postage, to be approximately 67
cents. The Commission staff also estimates that the cost of producing
and sending a wholly electronic confirmation is approximately 40 cents.
Based on informal discussions with industry participants, as well as
representations made in requests for exemptive and no-action letters
relating to Rule 10b-10, the staff estimates that broker-dealers used
electronic confirmations for approximately 35 percent of transactions.
Based on these calculations, Commission staff estimates that
17,648,402,532 paper confirmations are mailed each year at a cost of
$11,824,429,696. Commission staff also estimates that 9,502,985,979
wholly electronic confirmations are sent each year at a cost of
$3,801,194,392. Accordingly, Commission staff estimates that the total
annual cost associated with generating and delivering to investors the
information required under Rule 10b-10 is approximately
$15,625,624,088.
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 February 23, 2023 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#bdedeffce2f0dcd4d1dfd2c5fdced8de93dad2cb"><span class="__cf_email__" data-cfemail="56060417091b373f3a34392e1625333578313920">[email protected]</span></a>.
[[Page 4263]]
Dated: January 18, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-01251 Filed 1-23-23; 8:45 am]
BILLING CODE 8011-01-P
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