81 FR 28923 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 90 (May 10, 2016)

[Federal Register Volume 81, Number 90 (Tuesday, May 10, 2016)]
[Notices]
[Pages 28923-28924]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-10888]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-389, OMB Control No. 3235-0444]


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 10b-10.

    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 
10b-10 (17 CFR 240.10b-10) under the Securities and Exchange Act of 
1934 (15 U.S.C. 78a et seq.).
    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

[[Page 28924]]

delivering to investors the information required under Rule 10b-10 
would be $8,417,166,447.
    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: May 4, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-10888 Filed 5-9-16; 8:45 am]
 BILLING CODE 8011-01-P