Notice2024-08291

Submission for OMB Review; Comment Request; Extension: Market Data Infrastructure

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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
April 18, 2024

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 89 Issue 76 (Thursday, April 18, 2024)</title>
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[Federal Register Volume 89, Number 76 (Thursday, April 18, 2024)]
[Notices]
[Pages 27817-27818]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08291]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-823, OMB Control No. 3235-0778]


Submission for OMB Review; 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'') 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 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.).
    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 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

[[Page 27818]]

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.
    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 May 20, 2024 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#adfdffecf2e0ccc4c1cfc2d5eddec8ce83cac2db"><span class="__cf_email__" data-cfemail="b1e1e3f0eefcd0d8ddd3dec9f1c2d4d29fd6dec7">[email&#160;protected]</span></a>.

    Dated: April 15, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-08291 Filed 4-17-24; 8:45 am]
BILLING CODE 8011-01-P


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