80 FR 59209 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 190 (October 1, 2015)

Page Range		59209-59210
FR Document		2015-24888
Federal Register, Volume 80 Issue 190 (Thursday, October 1, 2015)
[Federal Register Volume 80, Number 190 (Thursday, October 1, 2015)]
[Notices]
[Pages 59209-59210]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-24888]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: U.S. Securities and 
Exchange Commission, Office of FOIA Services, 100 F Street NE., 
Washington, DC 20549-2736.

Extension:
    Rule 613; SEC File No. 270-616, OMB Control No. 3235-0671.

    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 
existing collection of information provided for in the following rule: 
Rule 613 (17 CFR 242.613), under the Securities Exchange Act of 1934 
(15 U.S.C. 78a et seq.).
    Rule 613 of Regulation NMS (17 CFR part 242) requires national 
securities exchanges and national securities associations (``self-
regulatory organizations'' or ``SROs'') to jointly submit to the 
Commission a national market system (``NMS'') plan to govern the 
creation, implementation, and maintenance of a consolidated audit trail 
and central repository for the collection of information for NMS 
securities. The NMS plan must require each SRO and its respective 
members to provide certain data to the central repository in compliance 
with Rule 613. When it adopted Rule 613, the Commission discussed the 
burden hours associated with the development and submission of the NMS 
plan.\1\ In doing so, the Commission noted that the development and 
submission of the NMS plan is part of a multi-step process for 
developing the consolidated audit trail and that the Commission 
deferred its discussion of the burden hours associated with the other 
paperwork requirements required by Rule 613--such as the requirements 
to provide certain data to the central repository--until after the SROs 
submit an NMS plan and there has been an opportunity for public 
comment.\2\
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    \1\ See Securities Exchange Act Release No. 67457 (July 18, 
2012), 77 FR 45722 (August 1, 2012) (``Adopting Release''), at 
45804-45807.
    \2\ Id. at 45804.
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    The SROs submitted to the Commission the NMS plan on September 30, 
2014 \3\ and an amended and restated NMS Plan on February 27, 2015.\4\ 
Although the existing collection of information pertains to the 
development and submission of an NMS plan, and such NMS plan has been 
developed and submitted, the Commission believes it is prudent to 
extend this collection of information during the pendency of the 
Commission's review of the NMS plan.
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    \3\ See Letter from the SROs, to Brent J. Fields, Secretary, 
Commission, dated September 30, 2014 (``CAT NMS Plan'').
    \4\ See Letter from the SROs, to Brent J. Fields, Secretary, 
Commission, dated February 27, 2015 (``Amended and Restated CAT NMS 
Plan'').
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    The Commission estimates that each of the 19 SROs would spend a 
total of 2,760 burden hours of internal legal, compliance, information 
technology, and business operations time to comply with the existing 
collection of information, calculated as follows: (880 programmer 
analyst hours) + (880 business analyst hours) + (700 attorney hours) + 
(300 compliance manager hours) = 2,760 burden hours to prepare and file 
an NMS plan, or approximately 52,440 burden hours in the aggregate, 
calculated as follows: (2,760 burden

[[Page 59210]]

hours per SRO) x (19 SROs) = 52,440 burden hours. Amortized over three 
years, the annualized burden hours would be 920 hours per SRO, or a 
total of 17,480 for all 19 SROs.
    The Commission further estimates that the aggregate one-time 
reporting burden for preparing and filing an NMS plan would be 
approximately $20,000 in external legal costs per SRO, calculated as 
follows: 50 legal hours x $400 per hour = $20,000, for an aggregate 
burden of $380,000, calculated as follows: ($20,000 in external legal 
costs per SRO) x (19 SROs) = $380,000. Amortized over three years, the 
annualized capital external cost would be $6,667 per SRO, or a total of 
$126,667 for all 19 SROs.
    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 Web site: www.reginfo.gov. Comments should 
be directed to: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 10102, New Executive Office Building, 
Washington, DC 20503, or by sending an email to: 
[email protected]; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or by sending an 
email to: [email protected]. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: September 25, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-24888 Filed 9-30-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 190 / Thursday, October 1, 2015 / Notices 59209

SECURITIES AND EXCHANGE benefit of a central database that stores Rule 613 of Regulation NMS (17 CFR
COMMISSION information about missing, lost, part 242) requires national securities
counterfeit, or stolen securities for the exchanges and national securities
Submission for OMB Review; Lost and Stolen Securities Program. associations (‘‘self-regulatory
Comment Request Reporting institutions required to organizations’’ or ‘‘SROs’’) to jointly
Upon Written Request, Copies Available register under Rule 17f–1(c) will not be submit to the Commission a national
From: Securities and Exchange kept confidential; however, the Lost and market system (‘‘NMS’’) plan to govern
Commission, Office of FOIA Services, Stolen Securities Program database will the creation, implementation, and
100 F Street NE., Washington, DC be kept confidential. maintenance of a consolidated audit
20549–2736. An agency may not conduct or trail and central repository for the
sponsor, and a person is not required to collection of information for NMS
Extension: securities. The NMS plan must require
Rule 17f–1(c) and Form X–17F–1A. SEC respond to, a collection of information
under the PRA unless it displays a each SRO and its respective members to
File No. 270–29, OMB Control No. 3235–
0037. currently valid OMB control number. provide certain data to the central
repository in compliance with Rule 613.
Notice is hereby given that pursuant The public may view background
When it adopted Rule 613, the
to the Paperwork Reduction Act of 1995 documentation for this information
Commission discussed the burden hours
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the collection at the following Web site:
associated with the development and
Securities and Exchange Commission www.reginfo.gov. Comments should be
submission of the NMS plan.1 In doing
(‘‘Commission’’) has submitted to the directed to: (i) Desk Officer for the
so, the Commission noted that the
Office of Management and Budget Securities and Exchange Commission,
development and submission of the
(‘‘OMB’’) a request for approval of Office of Information and Regulatory
NMS plan is part of a multi-step process
extension of the previously approved Affairs, Office of Management and
for developing the consolidated audit
collection of information provided for in Budget, Room 10102, New Executive
trail and that the Commission deferred
Rule 17f–1(c) (17 CFR 240.17f–1(c) and Office Building, Washington, DC 20503
its discussion of the burden hours
Form X–17F–1A (17 CFR 249.100) or by sending an email to: shagufta_
associated with the other paperwork
under the Securities Exchange Act of ahmed@omb.eop.gov; and (ii) Pamela
requirements required by Rule 613—
1934 (15 U.S.C. 78a et seq.). Dyson, Director/Chief Information
such as the requirements to provide
Rule 17f–1(c) requires approximately Officer, Securities and Exchange
certain data to the central repository—
15,500 entities in the securities industry Commission, c/o Remi Pavlik-Simon,
until after the SROs submit an NMS
to report lost, stolen, missing, or 100 F Street, NE Washington, DC 20549,
plan and there has been an opportunity
counterfeit securities certificates to the or by sending an email to PRA_
for public comment.2
Commission or its designee, to a Mailbox@sec.gov. Comments must be The SROs submitted to the
registered transfer agent for the issue, submitted to OMB within 30 days of Commission the NMS plan on
and, when criminal activity is this notice. September 30, 2014 3 and an amended
suspected, to the Federal Bureau of Dated: September 25, 2015. and restated NMS Plan on February 27,
Investigation. Such entities are required Robert W. Errett, 2015.4 Although the existing collection
to use Form X–17F–1A to make such
Deputy Secretary. of information pertains to the
reports. Filing these reports fulfills a
[FR Doc. 2015–24887 Filed 9–30–15; 8:45 am] development and submission of an NMS
statutory requirement that reporting
BILLING CODE 8011–01–P plan, and such NMS plan has been
institutions report and inquire about
developed and submitted, the
missing, lost, counterfeit, or stolen
Commission believes it is prudent to
securities. Since these reports are
SECURITIES AND EXCHANGE extend this collection of information
compiled in a central database, the rule
COMMISSION during the pendency of the
facilitates reporting institutions to
Commission’s review of the NMS plan.
access the database that stores Submission for OMB Review; The Commission estimates that each
information for the Lost and Stolen Comment Request of the 19 SROs would spend a total of
Securities Program. 2,760 burden hours of internal legal,
We estimate that 15,500 reporting Upon Written Request, Copies Available compliance, information technology,
institutions will report that securities From: U.S. Securities and Exchange and business operations time to comply
certificates are either missing, lost, Commission, Office of FOIA Services, with the existing collection of
counterfeit, or stolen annually and that 100 F Street NE., Washington, DC information, calculated as follows: (880
each reporting institution will submit 20549–2736. programmer analyst hours) + (880
this report 30 times each year. The staff
Extension: business analyst hours) + (700 attorney
estimates that the average amount of Rule 613; SEC File No. 270–616, OMB hours) + (300 compliance manager
time necessary to comply with Rule Control No. 3235–0671. hours) = 2,760 burden hours to prepare
17f–1(c) and Form X17F–1A is five
and file an NMS plan, or approximately
minutes per submission. The total Notice is hereby given that pursuant
52,440 burden hours in the aggregate,
burden is 38,750 hours annually for the to the Paperwork Reduction Act of 1995
calculated as follows: (2,760 burden
entire industry (15,500 times 30 times 5 (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
divided by 60). Securities and Exchange Commission 1 See Securities Exchange Act Release No. 67457
mstockstill on DSK4VPTVN1PROD with NOTICES6

Rule 17f–1(c) is a reporting rule and (‘‘Commission’’) has submitted to the (July 18, 2012), 77 FR 45722 (August 1, 2012)
does not specify a retention period. The Office of Management and Budget (‘‘Adopting Release’’), at 45804–45807.
rule requires an incident-based (‘‘OMB’’) a request for approval of 2 Id. at 45804.

reporting requirement by the reporting extension of the existing collection of 3 See Letter from the SROs, to Brent J. Fields,

institutions when securities certificates information provided for in the Secretary, Commission, dated September 30, 2014
(‘‘CAT NMS Plan’’).
are discovered to be missing, lost, following rule: Rule 613 (17 CFR 4 See Letter from the SROs, to Brent J. Fields,
counterfeit, or stolen. Registering under 242.613), under the Securities Exchange Secretary, Commission, dated February 27, 2015
Rule 17f–1(c) is mandatory to obtain the Act of 1934 (15 U.S.C. 78a et seq.). (‘‘Amended and Restated CAT NMS Plan’’).

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59210 Federal Register / Vol. 80, No. 190 / Thursday, October 1, 2015 / Notices

hours per SRO) × (19 SROs) = 52,440 September 21, 2015, The NASDAQ providing price improvement
burden hours. Amortized over three Stock Market LLC (‘‘NASDAQ’’ or opportunities to retail order flow.
years, the annualized burden hours ‘‘Exchange’’) filed with the Securities The Exchange is proposing RTFY,
would be 920 hours per SRO, or a total and Exchange Commission which is similar to TFTY,4 as an
of 17,480 for all 19 SROs. (‘‘Commission’’) the proposed rule alternative method for posting non-
The Commission further estimates change as described in Items I, II, and marketable order flow on the Exchange
that the aggregate one-time reporting III below, which Items have been order book. Rather than allowing the
burden for preparing and filing an NMS prepared by the Exchange. The marketable DROs to immediately
plan would be approximately $20,000 in Commission is publishing this notice to remove liquidity from the Exchange
external legal costs per SRO, calculated solicit comments on the proposed rule order book (unless explicitly instructed
as follows: 50 legal hours × $400 per change from interested persons. to do so), the order will be routed to
hour = $20,000, for an aggregate burden I. Self-Regulatory Organization’s destinations in the System routing
of $380,000, calculated as follows: Statement of the Terms of Substance of table 5 to increase price improvement
($20,000 in external legal costs per SRO) the Proposed Rule Change opportunities for the DROs. RTFY may
× (19 SROs) = $380,000. Amortized over remove liquidity from the Exchange
three years, the annualized capital The Exchange proposes to amend book after routing to other destinations.
external cost would be $6,667 per SRO, NASDAQ Rule 4758 (Order Routing) to Any non-marketable RTFY orders will
or a total of $126,667 for all 19 SROs. adopt a new routing option, the Retail post on the Exchange book. In this
An agency may not conduct or Order Process (‘‘RTFY’’). regard, the RTFY routing option does
sponsor, and a person is not required to The text of the proposed rule change
not differ from the TFTY routing option.
respond to, a collection of information is available at http://
Specifically, members using TFTY will
under the PRA unless it displays a nasdaq.cchwallstreet.com/, at the
Exchange’s principal office, and at the not check the NASDAQ book (unless so
currently valid OMB control number. instructed by the entering firm) for
The public may view background Commission’s Public Reference Room.
available shares and will instead route
documentation for this information II. Self-Regulatory Organization’s to the destination with lower
collection at the following Web site: Statement of the Purpose of, and transaction fees.6
www.reginfo.gov. Comments should be Statutory Basis for, the Proposed Rule The destinations in the System
directed to: (i) Desk Officer for the Change routing table for RTFY will include OTC
Securities and Exchange Commission, In its filing with the Commission, the market makers,7 which may also be
Office of Information and Regulatory Exchange included statements registered NASDAQ market makers 8
Affairs, Office of Management and concerning the purpose of and basis for (‘‘Market Makers’’). The Exchange
Budget, Room 10102, New Executive the proposed rule change and discussed believes Market Makers will likely
Office Building, Washington, DC 20503, any comments it received on the provide the greatest opportunity for
or by sending an email to: Shagufta_ proposed rule change. The text of these price improvement for the DROs. The
Ahmed@omb.eop.gov; and (ii) Pamela statements may be examined at the Exchange believes the RTFY routing
Dyson, Director/Chief Information places specified in Item IV below. The option will benefit DROs by providing
Officer, Securities and Exchange Exchange has prepared summaries, set additional price improvement
Commission, c/o Remi Pavlik-Simon, forth in Sections A, B, and C below, of opportunities for retail investors that
100 F Street NE., Washington, DC the most significant aspects of such they do not otherwise enjoy today.
20549, or by sending an email to: PRA_ statements. If a RTFY order is posted on the
Mailbox@sec.gov. Comments must be Exchange, either because it was non-
submitted to OMB within 30 days of A. Self-Regulatory Organization’s
Statement of the Purpose of, and marketable when it was received or it
this notice. has exhausted all available liquidity
Statutory Basis for the Proposed Rule
Dated: September 25, 2015. Change within its limit price—including the
Robert W. Errett, Exchange, Reg NMS protected
Deputy Secretary. 1. Purpose quotations and other destinations in the
[FR Doc. 2015–24888 Filed 9–30–15; 8:45 am] NASDAQ is amending Rule 4758, System routing table—and the order is
BILLING CODE 8011–01–P which describes its order routing subsequently locked or crossed by
processes, to add the new RTFY order another market center, the System will
routing option under NASDAQ Rule not route to the locking or crossing
SECURITIES AND EXCHANGE 4758(a)(1)(A)(v) for Designated Retail market center.
COMMISSION Orders (‘‘DROs’’).3 Retail order firms
often send non-marketable order flow, 4 See NASDAQ Rule 4758(a)(1)(A)(v).
[Release No. 34–75987; File No. SR–
that is—orders that are not executable 5 The term ‘‘System routing table’’ refers to the
NASDAQ–2015–112] proprietary process for determining the specific
against the best prices available in the
trading venues to which the System routes orders
Self-Regulatory Organizations; The market place based on their limit and the order in which it routes them. NASDAQ
NASDAQ Stock Market LLC; Notice of price—to post and display on reserves the right to maintain a different System
Filing of Proposed Rule Change To exchanges. Some of the orders that have routing table for different routing options and to
been deemed to be non-marketable by modify the System routing table at any time without
Amend Rule 4758 notice. See NASDAQ Rule 4758(a)(1)(A).
the entering firm become marketable by
mstockstill on DSK4VPTVN1PROD with NOTICES6

6 See Securities Exchange Act Release No. 61460
September 25, 2015. the time the exchange receives them and (Feb. 1, 2010), 75 FR 66183 (Feb. 5, 2010) (SR–
Pursuant to Section 19(b)(1) of the ultimately remove liquidity from the NASDAQ–2010–018).
Securities Exchange Act of 1934 exchange order book. As discussed more 7 An ‘‘OTC market maker’’ in a stock is defined

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 fully below, the RTFY order routing in Rule 600(b)(52) of Regulation NMS as, in general,
a dealer that holds itself out as willing to buy and
notice is hereby given that on option is designed to enhance execution sell the stock, otherwise than on a national
quality and benefit retail investors by securities exchange, in amounts of less than block
1 15 U.S.C. 78s(b)(1). size (less than 10,000 shares).
2 17 CFR 240.19b–4. 3 See NASDAQ Rule 7018. 8 See NASDAQ Rule 4612.

VerDate Sep<11>2014 21:04 Sep 30, 2015 Jkt 238001 PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 E:\FR\FM\01OCN1.SGM 01OCN1
Document Created: 2015-12-15 08:40:05
Document Modified: 2015-12-15 08:40:05
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 59209