Notice2024-02951
Proposed Collection; Comment Request; Extension: Market Data Infrastructure
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
February 13, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 30 (Tuesday, February 13, 2024)</title>
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[Federal Register Volume 89, Number 30 (Tuesday, February 13, 2024)]
[Notices]
[Pages 10115-10116]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-02951]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-823, OMB Control No. 3235-0778]
Proposed Collection; Comment Request; Extension: Market Data
Infrastructure
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 Rules 603 and 614 (17 CFR
242.603 and 17 CFR 242.614, respectively), under the Securities
Exchange Act of 1934 (``Act'') (15 U.S.C. 78a et seq.). The Commission
plans to submit this existing collection of information to the Office
of Management and Budget (``OMB'') for extension and approval.
On December 9, 2020, the Commission updated the content of national
market system (``NMS'') information that is required to be collected,
consolidated, and disseminated as part of the national market system
under Regulation NMS. Second, the Commission amended the method by
which ``consolidated market data,'' as now defined, is collected,
consolidated, and disseminated by introducing a decentralized
consolidation model with competing consolidators, which replaces the
centralized consolidation model that relies on exclusive securities
information processors (``exclusive SIPs'').
The amendments, as adopted, establish seven new collections of
information.
1. Registration requirements and Form CC: Rule 614(a)(1)(i)
requires each competing consolidator to register with the Commission by
filing Form CC electronically in accordance with the instructions
contained on the form. Competing consolidators will be required to file
amendments to the form in accordance with the rule and file notice of
its cessation of operations.
2. Competing consolidator duties and data collection: Rule
614(d)(1)-(4) requires competing consolidators to (i) collect from each
SRO the information with respect to quotations for and transactions in
NMS stocks as provided in Rule 603(b); (ii) calculate and generate
consolidated market data products; (iii) make consolidated market data
products available to subscribers with the required timestamps on terms
that are not unreasonably discriminatory; and (iv) timestamp the
information collected from the SROs at certain specified times.
3. Competing consolidators' public posting of Form CC: Rule 614(c)
requires competing consolidators to make public on its website a direct
URL hyperlink to the Commission website that contains each effective
initial Form CC, as amended, order of ineffective initial Form CC, and
Form CC amendments to an effective Form CC.
4. Recordkeeping: Rule 614(d)(7) requires each competing
consolidator to keep and preserve at least one copy of all documents as
defined in the rule for a period of no less than five years, the first
two in an easily accessible place. Rule 614(d)(8) requires each
competing consolidator, upon request of any representative of the
Commission, to promptly furnish copies of any documents to such
representative.
5. Reports and Reviews: Rule 614(d)(5) requires competing
consolidators to publish on their websites certain monthly performance
metrics. Rule 614(d)(6) requires competing consolidators to publish
certain monthly data quality information.
6. Amendment to the effective national market system plan(s) for
NMS
[[Page 10116]]
stocks: Rule 614(e) requires the participants to the effective national
market system plan(s) for NMS stocks to submit an amendment to such
plan(s) within 150 days of the effectiveness of the amendments that
contain certain specified provisions.
7. Collection and dissemination of information by national
securities exchanges and national securities associations: The
amendment to Rule 603(b) requires every national securities exchange on
which an NMS stock is traded and the national securities association to
make available to all competing consolidators and self-aggregators all
information with respect to quotations for and transactions in NMS
stocks, including all data necessary to generate consolidated market
data products, in the same manner and using the same methods, including
all methods of access and using the same format as such exchange or
association makes available any information with respect to quotations
for and transactions in NMS stocks to any person.
These collections of information are necessary to further the
national market system objectives set forth in Section 11A(a)(1) of the
Exchange Act. Without Rules 603 and 614, the Commission would be unable
to fulfill these statutory responsibilities.
The staff estimates that 8 entities may register as competing
consolidators and therefore are subject to the collection of
information described in paragraph 1 through 5 above. The staff
estimates that there are 19 entities that are subject to the collection
of information described in paragraph 6 above. The staff estimates that
there are 17 entities that are subject to the collection of information
described in paragraph 7 above. The staff estimates that the aggregate
annual compliance burden for the industry is 35,715 hours and
$45,611,043.
Compliance with Rules 603 and 614 is mandatory. Competing
consolidators are required to keep and preserve at least one copy of
all documents, including all correspondence, memoranda, papers, books,
notices, accounts, and such other records as shall be made or received
by it in the course of its business as such and in the conduct of its
business. Competing consolidators must keep these documents for a
period of no less than five years, the first two years in an easily
accessible place. This requirement is consistent with current SEC rules
for SROs. The Form CC and amendments to the effective national market
system plan(s) will not be confidential; they will be posted on the
Commission's public website. Competing consolidators will make
available to subscribers consolidated market data products, which
therefore will not be confidential. Competing consolidator records will
be available to the Commission and other regulators. The reports and
reviews of competing consolidators will be published on competing
consolidator websites and will not be confidential. Finally, the
exchanges and associations will make available to competing
consolidators and self-aggregators quotation and transaction
information.
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 by
April 15, 2024.
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#0f5f5d4e50426e66636d60774f7c6a6c21686079"><span class="__cf_email__" data-cfemail="3b6b697a64765a52575954437b485e58155c544d">[email protected]</span></a>.
Dated: February 8, 2024.
Sherry R. Haywood
Assistant Secretary.
[FR Doc. 2024-02951 Filed 2-12-24; 8:45 am]
BILLING CODE 8011-01-P
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