[Federal Register Volume 81, Number 40 (Tuesday, March 1, 2016)]
[Notices]
[Pages 10690-10691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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