Notice2024-08291
Submission for OMB Review; 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
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 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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