Notice2023-09201
Proposed Collection; Comment Request; Extension: Rule 611
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
May 2, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 84 (Tuesday, May 2, 2023)</title>
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[Federal Register Volume 88, Number 84 (Tuesday, May 2, 2023)]
[Notices]
[Pages 27548-27549]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-09201]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-540, OMB Control No. 3235-0600]
Proposed Collection; Comment Request; Extension: Rule 611
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'') is soliciting comments on the existing
collection of information provided for in Rule 611 (17 CFR 242.611)
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.
On June 9, 2005, effective August 29, 2005 (see 70 FR 37496, June
29, 2005), the Commission adopted Rule 611 of Regulation NMS under the
Exchange Act to require any national securities exchange, national
securities association, alternative trading system, exchange market
maker, over-the-counter market maker, and any other broker-dealer that
executes orders internally by trading as principal or crossing orders
as agent, to establish, maintain, and enforce written policies and
procedures reasonably designed to prevent the execution of a
transaction in its market at a price that is inferior to a bid or offer
displayed in another market at the time of execution (a ``trade-
though''), absent an applicable exception and, if relying on an
exception, that are reasonably designed to assure compliance with the
terms of the exception. Without this collection of information,
respondents would not have a means to enforce compliance with the
Commission's intention to prevent trade-throughs pursuant to the rule.
There are approximately 235 respondents \1\ per year that will
require an aggregate total of approximately 14,100 hours to comply with
this Rule. It is anticipated that each respondent will continue to
expend approximately 60 hours annually: two hours per month of internal
legal time and three hours per month of internal compliance time to
ensure that its written policies and procedures are up-to-date and
remain in compliance with Rule 611. The estimated cost for an in-house
attorney is $489 per hour and the estimated cost for an assistant
compliance director in the securities industry is $432 per hour.
Therefore the estimated total internal cost of compliance for the
annual hour burden is as follows: [(2 legal hours x 12 months x $489) x
235] + [(3 compliance hours x 12 months x $432) x 235] = $6,412,680.\2\
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\1\ This estimate includes 16 national securities exchanges that
are equity securities exchanges. The estimate also includes an
estimated 187 firms that are over-the-counter market makers or
exchange market makers, as well as an estimated 32 alternative
trading systems that trade NMS stocks.
\2\ The total cost of compliance for the annual hour burden has
been revised to reflect updated estimated cost figures for an in-
house attorney and an assistant compliance director. These figures
are from SIFMA's Management & Professional Earnings in the
Securities Industry 2013, modified by Commission staff to account
for an 1800-hour work-year and multiplied by 5.35 to account for
bonuses, firm size, employee benefits, and overhead, and then
adjusted for inflation.
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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 to
be 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 by
July 3, 2023.
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.
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#07575546584a666e6b65687f4774626429606871"><span class="__cf_email__" data-cfemail="3e6e6c7f61735f57525c51467e4d5b5d10595148">[email protected]</span></a>.
[[Page 27549]]
Dated: April 26, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-09201 Filed 5-1-23; 8:45 am]
BILLING CODE 8011-01-P
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