81 FR 10690 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 40 (March 1, 2016)

Page Range		10690-10691
FR Document		2016-04350
Federal Register, Volume 81 Issue 40 (Tuesday, March 1, 2016)
[Federal Register Volume 81, Number 40 (Tuesday, March 1, 2016)]
[Notices]
[Pages 10690-10691]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-04350]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

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

Extension: Rule 10b-10, SEC File No. 270-389, OMB Control No. 3235-
0444.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and 
Exchange Commission

[[Page 10691]]

(``Commission'') is soliciting comments on the existing collection of 
information provided for in Rule 10b-10 (17 CFR 240.10b-10) under the 
Securities and Exchange Act of 1934 (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.
    Rule 10b-10 requires broker-dealers to convey specified information 
to customers regarding their securities transactions. This information 
includes the date and time of the transaction, the identity and number 
of shares bought or sold, and whether the broker-dealer acts as agent 
for the customer or as principal for its own account. Depending on 
whether the broker-dealer acts as agent or principal, Rule 10b-10 
requires the disclosure of commissions, as well as mark-up and mark-
down information. For transactions in debt securities, Rule 10b-10 
requires the disclosure of redemption and yield information. Rule 10b-
10 potentially applies to all of the approximately 4,183 firms 
registered with the Commission that effect transactions for or with 
customers.
    Based on information provided by registered broker-dealers to the 
Commission in FOCUS Reports, the Commission staff estimates that on 
average, registered broker-dealers process approximately 1,383,492,184 
order tickets per month for transactions for or with customers. Each 
order ticket representing a transaction effected for or with a customer 
results in one confirmation. Therefore, the Commission staff estimates 
that approximately 16,601,906,208 confirmations are sent to customers 
annually. The confirmations required by Rule 10b-10 are generally 
processed through automated systems. It takes approximately 30 seconds 
to generate and send a confirmation. Accordingly, the Commission staff 
estimates that broker-dealers spend approximately 138,349,218 hours per 
year complying with Rule 10b-10.
    The amount of confirmations sent and the cost of sending each 
confirmation varies from firm to firm. Smaller firms generally send 
fewer confirmations than larger firms because they effect fewer 
transactions. The Commission staff estimates the costs of producing and 
sending a paper confirmation, including postage, to be approximately 57 
cents. The Commission staff also estimates that the cost of producing 
and sending a wholly electronic confirmation is approximately 39 cents. 
Based on informal discussions with industry participants, as well as 
representations made in requests for exemptive and no-action letters 
relating to Rule 10b-10, the staff estimates that broker-dealers used 
electronic confirmations for approximately 35 percent of transactions. 
Based on these calculations, Commission staff estimates that 
10,791,239,035 paper confirmations are mailed each year at a cost of 
$6,151,006,250. Commission staff also estimates that 5,810,667,173 
wholly electronic confirmations are sent each year at a cost of 
$2,266,160,197. Accordingly, Commission staff estimates that the total 
annual cost associated with generating and delivering to investors the 
information required under Rule 10b-10 would be $8,417,166,447.
    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 in 
writing within 60 days of this publication.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information subject to the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: Pamela Dyson, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email 
to: [email protected].

    Dated: February 24, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-04350 Filed 2-29-16; 8:45 am]
 BILLING CODE 8011-01-P
10690 Federal Register / Vol. 81, No. 40 / Tuesday, March 1, 2016 / Notices

Section 6 of the Act,31 in general, and elimination of the Retail Price All submissions should refer to File
further the objectives of Section 6(b)(5) Improvement Program. Number SR–NASDAQ–2016–023. This
of the Act,32 in particular, in that it is file number should be included on the
B. Self-Regulatory Organization’s
designed to prevent fraudulent and subject line if email is used. To help the
Statement on Burden on Competition
manipulative acts and practices, to Commission process and review your
promote just and equitable principles of The Exchange does not believe that comments more efficiently, please use
trade, to foster cooperation and the proposed rule change will result in only one method. The Commission will
coordination with persons engaged in any burden on competition that is not post all comments on the Commission’s
regulating, clearing, settling, processing necessary or appropriate in furtherance Internet Web site (http://www.sec.gov/
information with respect to, and of the purposes of the Act, as amended. rules/sro.shtml).
facilitating transactions in securities, to Specifically, the change is designed to Copies of the submission, all
remove impediments to and perfect the promote consistency in the treatment of subsequent amendments, all written
mechanism of a free and open market Pegged and Routable Orders in the statements with respect to the proposed
and a national market system, and, in Opening Cross. Such a change does not rule change that are filed with the
general, to protect investors and the place a burden on competition between Commission, and all written
public interest; and are not designed to market participants as the changes are communications relating to the
permit unfair discrimination between applied consistently to all participants. proposed rule change between the
customers, issuers, brokers, or dealers. Moreover, the proposed change does not Commission and any person, other than
Specifically, the proposed changes impose a burden on competition among those that may be withheld from the
promote just and equitable principles of exchanges as they are done to clarify public in accordance with the
trade and perfects the mechanisms of a NASDAQ’s rules and do not impact provisions of 5 U.S.C. 552, will be
competition. available for Web site viewing and
free and open market and the national
market system by providing greater C. Self-Regulatory Organization’s printing in the Commission’s Public
clarity concerning the System’s Statement on Comments on the Reference Room, 100 F Street NE.,
operation with respect to Pegged and Proposed Rule Change Received From Washington, DC 20549, on official
Routable Orders during the Opening Members, Participants, or Others business days between the hours of
Cross process and how such orders with No written comments were either 10:00 a.m. and 3:00 p.m. Copies of the
a Time-in-Force characteristic that solicited or received. filing also will be available for
allows them to trade during Market inspection and copying at the principal
Hours are processed upon initiation of III. Date of Effectiveness of the office of the Exchange. All comments
the Opening Cross. Proposed Rule Change and Timing for received will be posted without change;
The proposed change will contribute Commission Action the Commission does not edit personal
to the protection of investors and the Within 45 days of the date of identifying information from
public interest by bringing consistency publication of this notice in the Federal submissions. You should submit only
to the processing of Orders in the Register or within such longer period information that you wish to make
Opening Cross, thereby avoiding any up to 90 days (i) as the Commission may available publicly.
Participant confusion that may be designate if it finds such longer period All submissions should refer to File
caused by dissimilar treatment of to be appropriate and publishes its Number SR–NASDAQ–2016–023 and
Routable and Pegged Orders. With reasons for so finding or (ii) as to which should be submitted on or before March
respect to Routable Orders, uniformly the Exchange consents, the Commission 22, 2016.
converting such Orders, which are will: For the Commission, by the Division of
designated to participate in the Opening A. By order approve or disapprove Trading and Markets, pursuant to delegated
Cross, is consistent with a Participant’s such proposed rule change, or authority.33
intent to first potentially execute during B. institute proceedings to determine Robert W. Errett,
the Opening Cross and, to the extent not whether the proposed rule change Deputy Secretary.
fully executed, thereafter join Market should be disapproved.
[FR Doc. 2016–04359 Filed 2–29–16; 8:45 am]
Hours trading consistent with the Order IV. Solicitation of Comments BILLING CODE 8011–01–P
Type and Routing Option employed,
Interested persons are invited to
unless otherwise cancelled after the
submit written data, views, and
Opening Cross as discussed above. SECURITIES AND EXCHANGE
arguments concerning the foregoing,
With respect to Pegged Orders, COMMISSION
including whether the proposed rule
uniformly canceling all Pegged Orders
change is consistent with the Act. Proposed Collection; Comment
as described under Rule 4703(d) is
Comments may be submitted by any of Request
consistent with the nature of a Pegged
the following methods:
Order, which is only available during
Upon Written Request, Copies Available
Market Hours. Further, these changes Electronic Comments
From: Securities and Exchange
simplify the processing making it easier • Use the Commission’s Internet Commission, Office of FOIA Services,
for all participants to understand how comment form (http://www.sec.gov/ 100 F Street NE., Washington, DC
their orders behave with respect to the rules/sro.shtml); or 20549–2736.
Opening Cross and thereafter. The • Send an email to rule-comments@
asabaliauskas on DSK5VPTVN1PROD with NOTICES

proposed elimination of references to Extension: Rule 10b–10, SEC File No. 270–
sec.gov. Please include File Number SR–
Retail Orders and RPI Orders will also 389, OMB Control No. 3235–0444.
NASDAQ–2016–023 on the subject line.
serve to avoid potential Participant Notice is hereby given that, pursuant
confusion arising from including Paper Comments to the Paperwork Reduction Act of 1995
references thereto in light of the • Send paper comments in triplicate (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
to Secretary, Securities and Exchange Securities and Exchange Commission
31 15 U.S.C. 78f. Commission, 100 F Street NE.,
32 15 U.S.C. 78f(b)(5). Washington, DC 20549–1090. 33 17 CFR 200.30–3(a)(12).

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Federal Register / Vol. 81, No. 40 / Tuesday, March 1, 2016 / Notices 10691

(‘‘Commission’’) is soliciting comments the staff estimates that broker-dealers Rule 19b–4(e) and Form 19b–4(e); SEC File
on the existing collection of information used electronic confirmations for No. 270–447, OMB Control No. 3235–
provided for in Rule 10b–10 (17 CFR approximately 35 percent of 0504.
240.10b–10) under the Securities and transactions. Based on these Notice is hereby given that pursuant
Exchange Act of 1934 (15 U.S.C. 78a et calculations, Commission staff estimates to the Paperwork Reduction Act of 1995
seq.). The Commission plans to submit that 10,791,239,035 paper confirmations (44 U.S.C. 3501 et seq.) the Securities
this existing collection of information to are mailed each year at a cost of and Exchange Commission
the Office of Management and Budget $6,151,006,250. Commission staff also (‘‘Commission’’) is soliciting comments
(‘‘OMB’’) for extension and approval. estimates that 5,810,667,173 wholly on the existing collection of information
Rule 10b–10 requires broker-dealers electronic confirmations are sent each provided for in Rule 19b–4(e) (17 CFR
to convey specified information to year at a cost of $2,266,160,197. 240.19b–4(e)) under the Securities
customers regarding their securities Accordingly, Commission staff Exchange Act of 1934 (15 U.S.C 78a et
transactions. This information includes estimates that the total annual cost seq.) (the ‘‘Act’’). The Commission plans
the date and time of the transaction, the associated with generating and to submit this existing collection of
identity and number of shares bought or delivering to investors the information information to the Office of
sold, and whether the broker-dealer acts required under Rule 10b–10 would be Management and Budget (‘‘OMB’’) for
as agent for the customer or as principal $8,417,166,447. extension and approval.
for its own account. Depending on Written comments are invited on: (a) Rule 19b–4(e) permits a self-
whether the broker-dealer acts as agent Whether the proposed collection of regulatory organization (‘‘SRO’’) to list
or principal, Rule 10b–10 requires the information is necessary for the proper and trade a new derivative securities
disclosure of commissions, as well as performance of the functions of the product without submitting a proposed
mark-up and mark-down information. Commission, including whether the rule change pursuant to Section 19(b) of
For transactions in debt securities, Rule information shall have practical utility; the Act (15 U.S.C. 78s(b)), so long as
10b–10 requires the disclosure of (b) the accuracy of the Commission’s such product meets the criteria of Rule
redemption and yield information. Rule estimates of the burden of the proposed 19b–4(e) under the Act. However, in
10b–10 potentially applies to all of the collection of information; (c) ways to order for the Commission to maintain an
approximately 4,183 firms registered enhance the quality, utility, and clarity accurate record of all new derivative
with the Commission that effect of the information collected; and (d) securities products traded on the SROs,
transactions for or with customers. ways to minimize the burden of the Rule 19b–4(e) requires an SRO to file a
Based on information provided by collection of information on summary form, Form 19b–4(e), to notify
registered broker-dealers to the respondents, including through the use the Commission when the SRO begins
Commission in FOCUS Reports, the of automated collection techniques or trading a new derivative securities
Commission staff estimates that on other forms of information technology. product that is not required to be
average, registered broker-dealers submitted as a proposed rule change to
Consideration will be given to
process approximately 1,383,492,184 the Commission. Form 19b–4(e) should
comments and suggestions submitted in
order tickets per month for transactions be submitted within five business days
writing within 60 days of this
for or with customers. Each order ticket after an SRO begins trading a new
publication.
representing a transaction effected for or derivative securities product that is not
An agency may not conduct or
with a customer results in one required to be submitted as a proposed
sponsor, and a person is not required to
confirmation. Therefore, the rule change. In addition, Rule 19b–4(e)
respond to, a collection of information
Commission staff estimates that requires an SRO to maintain, on-site, a
subject to the PRA unless it displays a
approximately 16,601,906,208 copy of Form 19b–4(e) for a prescribed
currently valid OMB control number.
confirmations are sent to customers period of time.
Please direct your written comments
annually. The confirmations required by This collection of information is
to: Pamela Dyson, Director/Chief
Rule 10b–10 are generally processed designed to allow the Commission to
through automated systems. It takes Information Officer, Securities and
maintain an accurate record of all new
approximately 30 seconds to generate Exchange Commission, c/o Remi Pavlik- derivative securities products traded on
and send a confirmation. Accordingly, Simon, 100 F Street NE., Washington, the SROs that are not deemed to be
the Commission staff estimates that DC 20549, or send an email to: PRA_ proposed rule changes and to determine
broker-dealers spend approximately Mailbox@sec.gov. whether an SRO has properly availed
138,349,218 hours per year complying Dated: February 24, 2016. itself of the permission granted by Rule
with Rule 10b–10. Robert W. Errett, 19b–4(e). The Commission reviews SRO
The amount of confirmations sent and Deputy Secretary. compliance with Rule 19b–4(e) through
the cost of sending each confirmation [FR Doc. 2016–04350 Filed 2–29–16; 8:45 am] its routine inspections of the SROs.
varies from firm to firm. Smaller firms BILLING CODE 8011–01–P
The respondents to the collection of
generally send fewer confirmations than information are SROs (as defined by the
larger firms because they effect fewer Act), all of which are national securities
transactions. The Commission staff SECURITIES AND EXCHANGE exchanges. As of January 2016, there are
estimates the costs of producing and COMMISSION eighteen entities registered as national
sending a paper confirmation, including securities exchanges with the
postage, to be approximately 57 cents. Commission. The Commission receives
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Proposed Collection; Comment
The Commission staff also estimates Request an average total of 2,088 responses per
that the cost of producing and sending year, which corresponds to an estimated
a wholly electronic confirmation is Upon Written Request, Copies Available annual response burden of 2,088 hours.
approximately 39 cents. Based on From: Securities and Exchange At an average hourly cost of $64, the
informal discussions with industry Commission, Office of FOIA Services, aggregate related internal cost of
participants, as well as representations 100 F Street NE., Washington, DC compliance with Rule 19b–4(e) is
made in requests for exemptive and no- 20549–2736, $133,632 (2,088 burden hours
action letters relating to Rule 10b–10, Extension: multiplied by $64/hour).

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Document Created: 2018-02-02 15:00:00
Document Modified: 2018-02-02 15:00:00
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		81 FR 10690