81 FR 23779 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 78 (April 22, 2016)

Page Range		23779-23780
FR Document		2016-09360
Federal Register, Volume 81 Issue 78 (Friday, April 22, 2016)
[Federal Register Volume 81, Number 78 (Friday, April 22, 2016)]
[Notices]
[Pages 23779-23780]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-09360]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; 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 606 of Regulation NMS, SEC File No. 270-489, OMB Control 
No. 3235-0541.

    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 (``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 Rule 
606 of Regulation NMS (``Rule 606'') (17 CFR 242.606) under the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et. seq.).
    Rule 606 (formerly known as Rule 11Ac1-6) requires broker-dealers 
to prepare and disseminate quarterly order routing reports. Much of the 
information needed to generate these reports already should be 
collected by broker-dealers in connection with their periodic 
evaluations of their order routing practices. Broker-dealers must 
conduct such evaluations to fulfill the duty of best execution that 
they owe their customers.
    The collection of information obligations of Rule 606 apply to 
broker-dealers that route non-directed customer orders in covered 
securities. The Commission estimates that out of the currently 4,240 
broker-dealers that are subject to the collection of information 
obligations of Rule 606, clearing brokers bear a substantial portion of 
the burden of complying with the reporting and recordkeeping 
requirements of Rule 606 on behalf of small to mid-sized introducing 
firms. There currently are approximately 185 clearing brokers. In 
addition, there are approximately 81 introducing brokers that receive 
funds or securities from their customers. Because at least some of 
these firms also may have greater involvement in determining where 
customer orders are routed for execution, they have been included, 
along with clearing brokers, in estimating the total burden of Rule 
606.
    The Commission staff estimates that each firm significantly 
involved in order routing practices incurs an average burden of 40 
hours to prepare and disseminate a quarterly report required by Rule 
606, or a burden of 160 hours

[[Page 23780]]

per year. With an estimated 266 \1\ broker-dealers significantly 
involved in order routing practices, the total industry-wide burden per 
year to comply with the quarterly reporting requirement in Rule 606 is 
estimated to be 42,560 hours (160 x 266).
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    \1\ 185 clearing brokers + 81 introducing brokers = 266.
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    Rule 606 also requires broker-dealers to respond to individual 
customer requests for information on orders handled by the broker-
dealer for that customer. Clearing brokers generally bear the burden of 
responding to these requests. The Commission staff estimates that an 
average clearing broker incurs an annual burden of 400 hours (2000 
responses x 0.2 hours/response) to prepare, disseminate, and retain 
responses to customers required by Rule 606. With an estimated 185 
clearing brokers subject to Rule 606, the total industry-wide burden 
per year to comply with the customer response requirement in Rule 606 
is estimated to be 74,000 hours (185 x 400).
    The collection of information obligations imposed by Rule 606 are 
mandatory. The responses will be available to the public and will not 
be kept confidential.
    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: April 19, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-09360 Filed 4-21-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Notices 23779

of Unicast End User those customers of Comments may be submitted by any of SECURITIES AND EXCHANGE
a Transmittal User (and customers of the following methods: COMMISSION
Users’ customers) that send all orders to
a Floor broker for representation on the Electronic Comments Submission for OMB Review;
Exchange is reasonable because it would • Use the Commission’s Internet Comment Request
encourage providing liquidity on the comment form (http://www.sec.gov/
Exchange, thereby contributing to the Upon Written Request, Copies Available
rules/sro.shtml); or From: Securities and Exchange
Exchange’s competitiveness with other
markets. In addition, the Exchange • Send an email to rule-comments@ Commission, Office of FOIA Services,
believes that expanding the definition of sec.gov. Please include File No. SR– 100 F Street NE., Washington, DC
Affiliates and adding the definitions of NYSEARCA–2016–19 on the subject 20549–2736.
Multicast End User, Rebroadcasting line. Extension:
User, Unicast End User, and Transmittal Rule 606 of Regulation NMS, SEC File No.
Paper Comments 270–489, OMB Control No. 3235–0541.
User to the Fee Schedules would make
such definitions accessible and • Send paper comments in triplicate Notice is hereby given that, pursuant
transparent and provide market to Secretary, Securities and Exchange to the Paperwork Reduction Act of 1995
participants with clarity as to the Commission, 100 F Street NE., (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
availability and application of the Washington, DC 20549–1090. Securities and Exchange Commission
proposed fees. (‘‘Commission’’) has submitted to the
Finally, the Exchange notes that it All submissions should refer to File No. office of Management and Budget
operates in a highly competitive market SR–NYSEARCA–2016–19. This file (‘‘OMB’’) a request for approval of
in which market participants can number should be included on the extension of the previously approved
readily favor competing venues if, for subject line if email is used. To help the collection of information provided for in
example, they deem fee levels at a Commission process and review your Rule 606 of Regulation NMS (‘‘Rule
particular venue to be excessive or if comments more efficiently, please use 606’’) (17 CFR 242.606) under the
they determine that another venue’s only one method. The Commission will Securities Exchange Act of 1934 (15
products and services are more post all comments on the Commission’s U.S.C. 78a et. seq.).
competitive than on the Exchange. In Internet Web site (http://www.sec.gov/ Rule 606 (formerly known as Rule
such an environment, the Exchange rules/sro.shtml). Copies of the 11Ac1–6) requires broker-dealers to
must continually review, and consider submission, all subsequent prepare and disseminate quarterly order
adjusting, the services it offers as well amendments, all written statements routing reports. Much of the information
as any corresponding fees and credits to with respect to the proposed rule needed to generate these reports already
remain competitive with other change that are filed with the should be collected by broker-dealers in
exchanges. For the reasons described Commission, and all written connection with their periodic
above, the Exchange believes that the communications relating to the evaluations of their order routing
proposed rule change reflects this proposed rule change between the practices. Broker-dealers must conduct
competitive environment. Commission and any person, other than such evaluations to fulfill the duty of
C. Self-Regulatory Organization’s those that may be withheld from the best execution that they owe their
Statement on Comments on the public in accordance with the customers.
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be The collection of information
Members, Participants, or Others available for Web site viewing and obligations of Rule 606 apply to broker-
printing in the Commission’s Public dealers that route non-directed customer
No written comments were solicited Reference Room, 100 F Street NE., orders in covered securities. The
or received with respect to the proposed Washington, DC 20549 on official Commission estimates that out of the
rule change. business days between the hours of currently 4,240 broker-dealers that are
III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such subject to the collection of information
Proposed Rule Change and Timing for filing also will be available for obligations of Rule 606, clearing brokers
Commission Action inspection and copying at the principal bear a substantial portion of the burden
Within 45 days of the date of office of the Exchange. All comments of complying with the reporting and
publication of this notice in the Federal received will be posted without change; recordkeeping requirements of Rule 606
Register or within such longer period (i) the Commission does not edit personal on behalf of small to mid-sized
as the Commission may designate up to identifying information from introducing firms. There currently are
90 days of such date if it finds such submissions. You should submit only approximately 185 clearing brokers. In
longer period to be appropriate and information that you wish to make addition, there are approximately 81
publishes its reasons for so finding or available publicly. All submissions introducing brokers that receive funds
(ii) as to which the Exchange consents, should refer to File No. SR– or securities from their customers.
the Commission shall: (a) By order NYSEARCA–2016–19, and should be Because at least some of these firms also
approve or disapprove such proposed submitted on or before May 13, 2016. may have greater involvement in
rule change, or (b) institute proceedings determining where customer orders are
For the Commission, by the Division of
to determine whether the proposed rule routed for execution, they have been
Trading and Markets, pursuant to delegated
included, along with clearing brokers, in
mstockstill on DSK4VPTVN1PROD with NOTICES

change should be disapproved. authority.24
estimating the total burden of Rule 606.
IV. Solicitation of Comments Robert W. Errett, The Commission staff estimates that
Interested persons are invited to Deputy Secretary. each firm significantly involved in order
submit written data, views, and [FR Doc. 2016–09322 Filed 4–21–16; 8:45 am] routing practices incurs an average
arguments concerning the foregoing, BILLING CODE 8011–01–P burden of 40 hours to prepare and
including whether the proposed rule disseminate a quarterly report required
change is consistent with the Act. 24 17 CFR 200.30–3(a)(12). by Rule 606, or a burden of 160 hours

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23780 Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Notices

per year. With an estimated 266 1 SECURITIES AND EXCHANGE of the most significant parts of such
broker-dealers significantly involved in COMMISSION statements.
order routing practices, the total A. Self-Regulatory Organization’s
industry-wide burden per year to [Release No. 34–77640; File No. SR– Statement of the Purpose of, and
comply with the quarterly reporting NYSEMKT–2016–15]
Statutory Basis for, the Proposed Rule
requirement in Rule 606 is estimated to Change
be 42,560 hours (160 × 266). Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing of Proposed 1. Purpose
Rule 606 also requires broker-dealers Rule Change Establishing Fees
to respond to individual customer Relating to End Users and Amending The Exchange proposes to establish
requests for information on orders the Definition of ‘‘Affiliate,’’ as Well as fees relating to certain end users and
handled by the broker-dealer for that Amending the NYSE MKT Equities amend the definition of ‘‘affiliate,’’ as
customer. Clearing brokers generally Price List and the NYSE Amex Options well as to amend the co-location 4
bear the burden of responding to these Fee Schedule To Reflect the Changes section of its Price List and Fee
requests. The Commission staff Schedule to reflect the changes. The
April 18, 2016. Exchange proposes that the changes be
estimates that an average clearing broker
incurs an annual burden of 400 hours Pursuant to Section 19(b)(1) 1 of the effective the first of the month following
(2000 responses × 0.2 hours/response) to Securities Exchange Act of 1934 (the approval by the Securities and Exchange
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Commission.
prepare, disseminate, and retain
notice is hereby given that, on April 4, Information flows over existing
responses to customers required by Rule
2016, NYSE MKT LLC (the ‘‘Exchange’’ network connections in two formats:
606. With an estimated 185 clearing
or ‘‘NYSE MKT’’) filed with the • Multicast format, which is a format
brokers subject to Rule 606, the total Securities and Exchange Commission
industry-wide burden per year to in which information is sent one-way
(the ‘‘Commission’’) the proposed rule from the Exchange to multiple
comply with the customer response change as described in Items I and II
requirement in Rule 606 is estimated to recipients at once, like a radio
below, which Items have been prepared broadcast; and
be 74,000 hours (185 × 400). by the self-regulatory organization. The
• Unicast format, which is a format
The collection of information Commission is publishing this notice to
that allows one-to-one communication,
obligations imposed by Rule 606 are solicit comments on the proposed rule
similar to a phone line, in which
mandatory. The responses will be change from interested persons.
information is sent to and from the
available to the public and will not be I. Self-Regulatory Organization’s Exchange.
kept confidential. Statement of the Terms of the Substance
Fees for Rebroadcasting Users Related to
An agency may not conduct or of the Proposed Rule Change
Their Multicast End Users
sponsor, and a person is not required to The Exchange proposes to establish
respond to, a collection of information fees relating to end users and amend the As a general matter, market data is
under the PRA unless it displays a definition of ‘‘affiliate,’’ as well as to broadcast to Users 5 in multicast format.
currently valid OMB control number. amend the co-location section of the Users can rebroadcast data they receive
The public may view background NYSE MKT Equities Price List (‘‘Price in multicast format to their customers 6
List’’) and the NYSE Amex Options Fee if they choose. The Exchange proposes
documentation for this information
Schedule (‘‘Fee Schedule’’) to reflect the to add to its co-location Price List and
collection at the following Web site,
changes. The Exchange proposes that Fee Schedule definitions of a
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the the changes be effective the first of the
4 The Exchange initially filed rule changes
Securities and Exchange Commission, month following approval by the
relating to its co-location services with the
Office of Information and Regulatory Securities and Exchange Commission Securities and Exchange Commission
Affairs, Office of Management and (‘‘Commission’’). The proposed change (‘‘Commission’’) in 2010. See Securities Exchange
is available on the Exchange’s Web site Act Release No. 62961 (September 21, 2010), 75 FR
Budget, Room 10102, New Executive 59299 (September 27, 2010) (SR–NYSEAmex–2010–
at www.nyse.com, at the principal office
Office Building, Washington, DC 20503, 80). The Exchange operates a data center in
of the Exchange, and at the
or by sending an email to: Shagufta_ Mahwah, New Jersey (the ‘‘data center’’) from
Commission’s Public Reference Room. which it provides co-location services to Users.
Ahmed@omb.eop.gov; and (ii) Pamela 5 For purposes of the Exchange’s co-location
Dyson, Director/Chief Information II. Self-Regulatory Organization’s services, a ‘‘User’’ means any market participant
Officer, Securities and Exchange Statement of the Purpose of, and that requests to receive co-location services directly
Commission, c/o Remi Pavlik-Simon, Statutory Basis for, the Proposed Rule from the Exchange. See Securities Exchange Act
Change Release No. 76009 (September 29, 2015), 80 FR
100 F Street NE., Washington, DC 20549 60213 (October 5, 2015) (SR–NYSEMKT–2015–67).
or by sending an email to: PRA_ In its filing with the Commission, the As specified in the Price List and Fee Schedule, a
Mailbox@sec.gov. Comments must be self-regulatory organization included User that incurs co-location fees for a particular co-
location service pursuant thereto would not be
submitted to OMB within 30 days of statements concerning the purpose of, subject to co-location fees for the same co-location
this notice. and basis for, the proposed rule change service charged by the Exchange’s affiliates New
Dated: April 19, 2016. and discussed any comments it received York Stock Exchange LLC and NYSE Arca, Inc. See
on the proposed rule change. The text Securities Exchange Act Release No. 70176 (August
Robert W. Errett, 13, 2013), 78 FR 50471 (August 19, 2013) (SR–
mstockstill on DSK4VPTVN1PROD with NOTICES

of those statements may be examined at NYSEMKT–2013–67.
Deputy Secretary. the places specified in Item IV below. 6 As used in the context of the proposed fees, the
[FR Doc. 2016–09360 Filed 4–21–16; 8:45 am] The Exchange has prepared summaries, term ‘‘customer’’ refers to any person who has a
BILLING CODE 8011–01–P set forth in sections A, B, and C below, contractual relationship with a User or the customer
of a User for the provision to that customer of
unicast or multicast services. A customer of a User
1 15 U.S.C. 78s(b)(1). may include another User or a ‘‘Hosted Customer,’’
1 185 clearing brokers + 81 introducing brokers = 2 15 U.S.C. 78a. as that term is defined in the Price List and Fee
266. 3 17 CFR 240.19b–4. Schedule.

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Document Created: 2017-08-22 23:36:39
Document Modified: 2017-08-22 23:36:39
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 23779