81 FR 6554 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 25 (February 8, 2016)

Page Range		6554-6555
FR Document		2016-02337
Federal Register, Volume 81 Issue 25 (Monday, February 8, 2016)
[Federal Register Volume 81, Number 25 (Monday, February 8, 2016)]
[Notices]
[Pages 6554-6555]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02337]


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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 605 of Regulation NMS; SEC File No 270-488, OMB Control No. 
3235-0542

    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'') is soliciting comments on the existing 
collection of information provided for in Rule 605 of Regulation NMS 
(``Rule 605'') (17 CFR 242.605),\1\ under the Securities Exchange Act 
of 1934 (15 U.S.C. 78a, et seq.) (``Exchange Act''). The Commission 
plans to submit this existing collection of information to the Office 
of Management and Budget (``OMB'') for extension and approval. Rule 
605, formerly known as, Rule 11Ac1-5, requires market centers to make 
available to the public monthly order execution reports in electronic 
form. The Commission believes that many market centers retain most, if 
not all, of the underlying raw data necessary to generate these reports 
in electronic format. Once the necessary data is collected, market 
centers could either program their systems to generate the statistics 
and reports, or transfer the data to a service provider (such as an 
independent company in the business of preparing such reports or a 
self-regulatory organization) that would generate the statistics and 
reports.
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    \1\ Regulation NMS, adopted by the Commission in June 2005, 
redesignated the national market system rules previously adopted 
under Section 11A of the Exchange Act. Rule 11Ac1-5 under the 
Exchange Act was redesignated Rule 605 of Regulation NMS. No 
substantive amendments were made to Rule 605 of Regulation NMS. See 
Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 
37496 (June 29, 2005).
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    The collection of information obligations of Rule 605 apply to all 
market centers that receive covered orders in national market system 
securities. The Commission estimates that approximately 132 market 
centers are subject to the collection of information obligations of 
Rule 605. Each of these respondents is required to respond to the 
collection of information on a monthly basis.
    The Commission staff estimates that, on average, Rule 605 causes 
respondents to spend 6 hours per month to collect the data necessary to 
generate the reports, or 72 hours per year. With an estimated 132 
market centers subject to Rule 605, the total data collection time 
burden to comply with the monthly reporting requirement is estimated to 
be 9,504 hours per year.
    Based on discussions with industry sources, the Commission staff 
estimates that an individual market center could retain a service 
provider to prepare a monthly report using the data collected for 
approximately $2,978 per month. This per-respondent estimate is based 
on the rate that a market center could expect to obtain if it 
negotiated on an individual basis. Based on the $2,978 estimate, the 
monthly cost to the 132 market centers to retain service providers to 
prepare reports would be $393,096, or an annual cost of approximately 
$4,717,152.
    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 will 
have practical utility; (b) the accuracy of the Commission's estimate 
of the burden of the 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 under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to Pamela C. Dyson, Director/
Chief

[[Page 6555]]

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 2, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-02337 Filed 2-5-16; 8:45 am]
 BILLING CODE 8011-01-P
6554 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices

Commission hereby grants the filing will also be available for program their systems to generate the
Exchange’s request and designates the inspection and copying at the principal statistics and reports, or transfer the
proposal operative upon filing. office of the Exchange. All comments data to a service provider (such as an
At any time within 60 days of the received will be posted without change; independent company in the business of
filing of the proposed rule change, the the Commission does not edit personal preparing such reports or a self-
Commission summarily may identifying information from regulatory organization) that would
temporarily suspend such rule change if submissions. You should submit only generate the statistics and reports.
it appears to the Commission that such information that you wish to make The collection of information
action is necessary or appropriate in the available publicly. All submissions obligations of Rule 605 apply to all
public interest, for the protection of should refer to File No. SR–EDGX– market centers that receive covered
investors, or otherwise in furtherance of 2016–01 and should be submitted on or orders in national market system
the purposes of the Act. If the beforeFebruary 29, 2016. securities. The Commission estimates
Commission takes such action, the that approximately 132 market centers
For the Commission, by the Division of
Commission shall institute proceedings Trading and Markets, pursuant to delegated are subject to the collection of
to determine whether the proposed rule authority.16 information obligations of Rule 605.
should be approved or disapproved. Robert W. Errett, Each of these respondents is required to
respond to the collection of information
IV. Solicitation of Comments Deputy Secretary.
on a monthly basis.
[FR Doc. 2016–02336 Filed 2–5–16; 8:45 am] The Commission staff estimates that,
Interested persons are invited to
submit written data, views, and BILLING CODE 8011–01–P on average, Rule 605 causes respondents
arguments concerning the foregoing, to spend 6 hours per month to collect
including whether the proposed rule the data necessary to generate the
SECURITIES AND EXCHANGE reports, or 72 hours per year. With an
change is consistent with the Act.
COMMISSION estimated 132 market centers subject to
Comments may be submitted by any of
the following methods: Proposed Collection; Comment Rule 605, the total data collection time
Request burden to comply with the monthly
Electronic Comments reporting requirement is estimated to be
• Use the Commission’s Internet Upon Written Request, Copies Available 9,504 hours per year.
comment form (http://www.sec.gov/ From: Securities and Exchange Based on discussions with industry
rules/sro.shtml); or Commission, Office of FOIA Services, sources, the Commission staff estimates
• Send an email to rule-comments@ 100 F Street NE., Washington, DC that an individual market center could
sec.gov. Please include File No. SR– 20549–2736. retain a service provider to prepare a
EDGX–2016–01 on the subject line. Extension: monthly report using the data collected
Rule 605 of Regulation NMS; SEC File No for approximately $2,978 per month.
Paper Comments
270–488, OMB Control No. 3235–0542 This per-respondent estimate is based
• Send paper comments in triplicate on the rate that a market center could
to Secretary, Securities and Exchange Notice is hereby given that pursuant
expect to obtain if it negotiated on an
Commission, 100 F Street NE., to the Paperwork Reduction Act of 1995
individual basis. Based on the $2,978
Washington, DC 20549–1090. (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
estimate, the monthly cost to the 132
Securities and Exchange Commission
All submissions should refer to File No. market centers to retain service
(‘‘Commission’’) is soliciting comments
SR–EDGX–2016–01. This file number providers to prepare reports would be
on the existing collection of information
should be included on the subject line $393,096, or an annual cost of
provided for in Rule 605 of Regulation
if email is used. To help the approximately $4,717,152.
NMS (‘‘Rule 605’’) (17 CFR 242.605),1 Written comments are invited on: (a)
Commission process and review your
under the Securities Exchange Act of Whether the proposed collection of
comments more efficiently, please use
1934 (15 U.S.C. 78a, et seq.) (‘‘Exchange information is necessary for the proper
only one method. The Commission will
Act’’). The Commission plans to submit performance of the functions of the
post all comments on the Commission’s
this existing collection of information to Commission, including whether the
Internet Web site (http://www.sec.gov/
the Office of Management and Budget information will have practical utility;
rules/sro.shtml). Copies of the
(‘‘OMB’’) for extension and approval. (b) the accuracy of the Commission’s
submission, all subsequent
Rule 605, formerly known as, Rule estimate of the burden of the collection
amendments, all written statements
11Ac1–5, requires market centers to of information; (c) ways to enhance the
with respect to the proposed rule
make available to the public monthly quality, utility, and clarity of the
change that are filed with the
order execution reports in electronic information collected; and (d) ways to
Commission, and all written
form. The Commission believes that minimize the burden of the collection of
communications relating to the
many market centers retain most, if not information on respondents, including
proposed rule change between the
all, of the underlying raw data necessary through the use of automated collection
Commission and any person, other than
to generate these reports in electronic techniques or other forms of information
those that may be withheld from the
format. Once the necessary data is technology. Consideration will be given
public in accordance with the
collected, market centers could either to comments and suggestions submitted
provisions of 5 U.S.C. 552, will be
asabaliauskas on DSK5VPTVN1PROD with NOTICES

available for Web site viewing and 16 17
in writing within 60 days of this
CFR 200.30–3(a)(12).
printing in the Commission’s Public 1 Regulation NMS, adopted by the Commission in
publication.
Reference Room, 100 F Street NE., June 2005, redesignated the national market system An agency may not conduct or
Washington, DC 20549, on official rules previously adopted under Section 11A of the sponsor, and a person is not required to
business days between the hours of Exchange Act. Rule 11Ac1–5 under the Exchange respond to, a collection of information
Act was redesignated Rule 605 of Regulation NMS. under the PRA unless it displays a
10:00 a.m. and 3:00 p.m. Copies of such No substantive amendments were made to Rule 605
of Regulation NMS. See Securities Exchange Act currently valid OMB control number.
efficiency, competition, and capital formation. See Release No. 51808 (June 9, 2005), 70 FR 37496 (June Please direct your written comments
15 U.S.C. 78c(f). 29, 2005). to Pamela C. Dyson, Director/Chief

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Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 6555

Information Officer, Securities and in Item IV below. FINRA has prepared systems changes necessary to comply
Exchange Commission, c/o Remi Pavlik- summaries, set forth in sections A, B, with SR–FINRA–2015–026.
Simon, 100 F Street NE., Washington, and C below, of the most significant FINRA has filed the proposed rule
DC 20549, or send an email to: PRA_ aspects of such statements. change for immediate effectiveness.
Mailbox@sec.gov.
A. Self-Regulatory Organization’s 2. Statutory Basis
Dated: February 2, 2016. Statement of the Purpose of, and the
Robert W. Errett, FINRA believes that the proposed rule
Statutory Basis for, the Proposed Rule
Deputy Secretary. change is consistent with the provisions
Change
of Section 15A(b)(6) of the Act,6 which
[FR Doc. 2016–02337 Filed 2–5–16; 8:45 am]
1. Purpose requires, among other things, that
BILLING CODE 8011–01–P
FINRA rules must be designed to
On July 20, 2015, FINRA filed a prevent fraudulent and manipulative
proposed rule change to amend FINRA acts and practices, to promote just and
SECURITIES AND EXCHANGE Rule 6730 (Transaction Reporting),
COMMISSION equitable principles of trade, and, in
which governs the reporting of eligible general, to protect investors and the
[Release No. 34–77015; File No. SR–FINRA– transactions to its Trade Reporting and public interest, and Section 15A(b)(9) of
2016–003] Compliance Engine (‘‘TRACE’’).3 Rule the Act,7 which requires that FINRA
6730 sets forth the requirements that rules not impose any burden on
Self-Regulatory Organizations; apply to firms when reporting
Financial Industry Regulatory competition that is not necessary or
transactions in TRACE-eligible appropriate.
Authority, Inc.; Notice of Filing and securities,4 and provides the specific
Immediate Effectiveness of a Proposed FINRA believes that the extension of
items of information that must be
Rule Change to Extend the the implementation date until July 18,
included in a TRACE trade report.
Implementation Date of the ‘‘No- 2016, is consistent with the Act in that
Among other things, Rules 6730(c) and
Remuneration’’ Indicator it would provide members with
(d) require that firms report the
additional time to complete the systems
February 2, 2016. commission (total dollar amount)
changes necessary to comply with SR–
Pursuant to Section 19(b)(1) of the separately on the TRACE trade report
FINRA–2015–026.
Securities Exchange Act of 1934 for agency transactions. FINRA then
(‘‘Act’’)1 and Rule 19b–4 thereunder,2 combines the dollar amount that is B. Self-Regulatory Organization’s
notice is hereby given that on January reported as the commission with the Statement on Burden on Competition
27, 2016, Financial Industry Regulatory amount that is reported in the price FINRA does not believe that the
Authority, Inc. (‘‘FINRA’’) filed with the field, and disseminates to the market proposed rule change will result in any
Securities and Exchange Commission this aggregate amount as the burden on competition that is not
(‘‘Commission’’) the proposed rule transaction’s price. For principal necessary or appropriate in furtherance
change as described in Items I and II transactions, Rule 6730(d)(1) provides of the purposes of the Act.
below, which Items have been prepared that firms must report a price that
by FINRA. The Commission is includes the mark-up/mark-down, and C. Self-Regulatory Organization’s
publishing this notice to solicit FINRA disseminates this price to the Statement on Comments on the
comments on the proposed rule change market. Proposed Rule Change Received From
from interested persons. In SR–FINRA–2015–026, FINRA Members, Participants, or Others
proposed to amend Rule 6730 to require Written comments were neither
I. Self-Regulatory Organization’s
that firms use a ‘‘No-Remuneration’’ solicited nor received.
Statement of the Terms of Substance of
indicator to identify those transactions
the Proposed Rule Change III. Date of Effectiveness of the
for which a commission or mark-up/
FINRA is proposing to extend the mark-down is not reflected in a TRACE Proposed Rule Change and Timing for
implementation date of the No- trade report. The Commission approved Commission Action
Remuneration indicator to July 18, 2016. the proposal, on October 16, 2015.5 In Because the foregoing proposed rule
The proposed rule change would not its filing, FINRA represented that the change does not: (i) Significantly affect
make any changes to FINRA rules. implementation date of these the protection of investors or the public
The text of the proposed rule change amendments would be May 23, 2016. interest; (ii) impose any significant
is available on FINRA’s Web site at FINRA has since determined to extend burden on competition; and (iii) become
http://www.finra.org, at the principal the implementation date for this operative for 30 days from the date on
office of FINRA and at the proposal to July 18, 2016 to provide which it was filed, or such shorter time
Commission’s Public Reference Room. members additional time to complete as the Commission may designate, it has
II. Self-Regulatory Organization’s become effective pursuant to Section
Statement of the Purpose of, and 3 See Securities Exchange Act Release No. 75588 19(b)(3)(A) of the Act 8 and Rule 19b–
Statutory Basis for, the Proposed Rule (August 3, 2015), 80 FR 47546 (August 7, 2015) 4(f)(6) thereunder.9
(Notice of Filing of File No. SR–FINRA–2015–026).
Change 4 Rule 6710 generally defines a ‘‘TRACE-eligible
6 15 U.S.C. 78o-3(b)(6).
In its filing with the Commission, security’’ as: (1) a debt security that is U.S. dollar-
7 15 U.S.C. 78o-3(b)(9).
denominated and issued by a U.S. or foreign private
asabaliauskas on DSK5VPTVN1PROD with NOTICES

FINRA included statements concerning
issuer (and, if a ‘‘restricted security’’ as defined in 8 15 U.S.C. 78s(b)(3)(A).
the purpose of and basis for the Securities Act Rule 144(a)(3), sold pursuant to 9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
proposed rule change and discussed any Securities Act Rule 144A); or (2) a debt security that 4(f)(6)(iii) requires a self-regulatory organization to
comments it received on the proposed is U.S. dollar denominated and issued or give the Commission written notice of its intent to
rule change. The text of these statements guaranteed by an ‘‘Agency’’ as defined in Rule file the proposed rule change, along with a brief
6710(k) or a ‘‘Government-Sponsored Enterprise’’ as description and text of the proposed rule change,
may be examined at the places specified defined in Rule 6710(n). at least five business days prior to the date of filing
5 See Securities Exchange Act Release No. 76176 of the proposed rule change, or such shorter time
1 15 U.S.C. 78s(b)(1). (October 16, 2015), 80 FR 64039 (October 22, 2015) as designated by the Commission. FINRA has
2 17 CFR 240.19b–4. (Order Approving File No. SR–FINRA–2015–026). satisfied this requirement.

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Document Created: 2016-02-06 00:24:41
Document Modified: 2016-02-06 00:24:41
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 6554