[Federal Register Volume 79, Number 22 (Monday, February 3, 2014)]
[Notices]
[Pages 6236-6238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-02143]
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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 Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 301 and Forms ATS and ATS-R, SEC File No. 270-451, OMB
Control No. 3235-0509.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (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 extension of the
[[Page 6237]]
previously approved collection of information discussed below.
Regulation ATS provides a regulatory structure for alternative
trading systems. Regulation ATS allows an alternative trading system to
choose between registering as a broker-dealer and complying with
Regulation ATS, or registering as a national securities exchange.
Regulation ATS provides the regulatory framework for those alternative
trading systems that choose to be regulated as broker-dealers. Rule 301
of Regulation ATS contains certain notice and reporting requirements,
as well as additional obligations that apply only to alternative
trading systems with significant volume. The Rule requires all
alternative trading systems that wish to comply with Regulation ATS to
file an initial operation report on Form ATS. The initial operation
report requires information regarding operation of the system including
the method of operation, access criteria and the types of securities
traded. Alternative trading systems are also required to supply updates
on Form ATS to the Commission, describing material changes to the
system, and quarterly transaction reports on Form ATS-R. Alternative
trading systems are also required to file cessation of operations
reports on Form ATS.
An alternative trading system with significant volume is required
to comply with requirements for fair access and systems capacity,
integrity, and security. Under Rule 301, such alternative trading
system is required to establish written standards for granting access
to its system. In addition, such alternative trading system is required
to make and keep records of all grants of access including, for all
subscribers, the reasons for granting such access, and all denials or
limitations of access and reasons, for each applicant, for denying or
limiting access. Regulation ATS requires alternative trading systems to
preserve any records made in the process of complying with the
capacity, integrity, and security requirements. In addition, such
alternative trading systems are required to notify Commission staff of
material systems outages and significant systems changes.
The Commission uses the information provided pursuant to the
Regulation ATS to monitor the growth and development of alternative
trading systems, and to monitor whether the systems promote fair and
orderly securities markets and operate in a manner that is consistent
with the federal securities laws. In particular, the information
collected and reported to the Commission by alternative trading systems
enables the Commission to evaluate the operation of alternative trading
systems with regard to national market system goals, and monitor the
competitive effects of these systems to ascertain whether the
regulatory framework remains appropriate to the operation of such
systems. Without the information provided on Forms ATS and ATS-R, the
Commission would not have readily available information on a regular
basis in a format that would allow it to oversee the securities
markets.
Respondents consist of alternative trading systems that choose to
register as broker-dealers and comply with the requirements of
Regulation ATS. The Commission estimates that there will be
approximately 95 respondents.
An estimated 95 respondents will file an average total of 598
responses per year, which corresponds to an estimated aggregated annual
response burden of 2,872.50 hours (comprised of 2,156 hours
professional labor and 716.5 hours para-professional labor). At an
average cost per burden hour of approximately $379 for professional
labor and $63 for para-professional labor, the resultant total related
cost of compliance for these respondents is $862,263.50 per year
((2,156 professional burden hours multiplied by $379 = $817,124) plus
(716.5 para-professional burden hours multiplied by $63 = $45,139.50).
An estimated 7 respondents will commence operations as an ATS each
year, necessitating the filing of an initial operation report on Form
ATS. The Commission estimates that the average compliance burden for
each respondent would be 20 hours, comprising 13 hours of in-house
professional work and 7 hours of clerical work. Thus, the total
compliance burden per year is 140 hours (7 responses x 20 hours = 140
hours). The total cost of compliance for the annual burden is $37,576
($379 x 13 hours per response + $63 x 7 hours per response = $5,368 per
response; $5,368 x 7 responses = $37,576).
An estimated 95 respondents will file an estimated two periodic
amendments to their initial operation report on Form ATS each year, an
estimated total of 190 amendments. The Commission estimates that the
average compliance burden for each amendment would be 6 hours,
comprising 4.5 hours of in-house professional work and 1.5 hours of
clerical work. Thus, the total compliance burden per year is 1,140
hours (190 responses x 6 hours = 1,140 hours). The total cost of
compliance for the annual burden is $342,000 ($379 x 4.5 hours per
response + $63 x 1.5 hours per response = $1,800 per response; $1,800 x
190 responses = $342,000).
An estimated 95 respondents will file four quarterly reports on
Form ATS-R each year for an estimated total of 380 responses. The
Commission estimates that that the average compliance burden for each
filing would be 4 hours, comprising 3 hours of in-house professional
work and 1 hour of clerical work. Thus, the total compliance burden per
year is 1,520 hours (380 responses x 4 hours = 1,520 hours). The total
cost of compliance for the annual burden is $456,000 ($379 x 3 hours
per response + $63 x 1 hours per response = $1,200 per response; $1,200
x 380 responses = $456,000).
An estimated 5 respondents will be required to file a cessation of
operations report on Form ATS each year. The Commission estimates that
the average compliance burden for each response would be 2 hours,
comprising 1.5 hours of in-house professional work and 0.5 hours of
clerical work. Thus, the total compliance burden per year is 10 hours
(5 responses x 2 hours = 10 hours). The total cost of compliance for
the annual burden is $3,000 ($379 x 1.5 hours per response + $63 x 0.5
hours per response = $600 per response; $600 x 5 responses = $3,000).
An estimated 2 respondents will meet certain volume thresholds
requiring them to establish written standards for granting access to
their systems. The Commission estimates that the average compliance
burden for each response would be 10 hours of in-house professional
work at $379 per hour. Thus, the total compliance burden per year is 20
hours (2 responses x 10 hours = 20 hours). The total cost of compliance
for the annual burden is $7,580 ($379 x 10 hours per response x 2
responses = $7,580).
An estimated 2 respondents will meet certain volume thresholds
requiring them to make and keep records of (1) all grants of access
including, for all subscribers, the reasons for granting such access;
and (2) all denials or limitations of access and reasons, for each
applicant, for denying or limiting access. The Commission estimates
that the average compliance burden for each response would be 10 hours
of in-house professional work at $379 per hour. Thus, the total
compliance burden per year is 20 hours (2 respondents x 10 hours = 20
hours). The total cost of compliance for the annual burden is $7,580
($379 x 10 hours per response x 2 respondents = $7,580).
An estimated 2 respondents will meet certain volume thresholds
requiring them to keep records relating to any steps taken to comply
with systems capacity, integrity, and security requirements under Rule
301. The
[[Page 6238]]
Commission estimates that the average compliance burden for each
response would be 10 hours of in-house professional work at $379 per
hour. Thus, the total compliance burden per year is 20 hours (2
respondents x 10 hours = 20 hours). The total cost of compliance for
the annual burden is $7,580 ($379 x 10 hours per response x 2
respondents = $7,580).
An estimated 2 respondents will meet certain volume thresholds
requiring them to provide a notice to the Commission to report any
system outages, and these notice obligations will be triggered an
estimated 5 times per year for each respondent. The Commission
estimates that the average compliance burden for each response would be
0.25 hours of in-house professional work at $379 per hour. Thus, the
total compliance burden per year is 2.5 hours (2 respondents x 5
responses each x 0.25 hours = 2.5 hours). The total cost of compliance
for the annual burden is $947.50 ($379 x 0.25 hours per response x 10
responses = $947.50).
Compliance with Rule 301 is mandatory. The information required by
the Rule 301 is available only to the examination of the Commission
staff, state securities authorities, and the SROs. Subject to the
provisions of the Freedom of Information Act, 5 U.S.C. Sec. 522
(``FOIA''), and the Commission's rules thereunder (17 CFR
200.80(b)(4)(iii)), the Commission does not generally publish or make
available information contained in any reports, summaries, analyses,
letters, or memoranda arising out of, in anticipation of, or in
connection with an examination or inspection of the books and records
of any person or any other investigation.
Regulation ATS requires alternative trading systems to preserve any
records, for at least three years, made in the process of complying
with the systems capacity, integrity, and security requirements.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information 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) Thomas Bayer, 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: January 28, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-02143 Filed 1-31-14; 8:45 am]
BILLING CODE 8011-01-P