[Federal Register Volume 82, Number 53 (Tuesday, March 21, 2017)]
[Notices]
[Pages 14579-14580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05539]


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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 
20549-0213

ACTION: Notice.

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    [SEC File No. TM-S7-11-10, OMB Control No. 3235-0671]

    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 approval of an amendment to a 
collection of information in connection with an National Market System 
(NMS) Plan filed with the Commission under Rule 613 (17 CFR 242.613), 
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
    Rule 613 of Regulation NMS (17 CFR part 242) required national 
securities exchanges and national securities associations 
(``Participants'') to jointly submit to the Commission a national 
market system (``NMS'') plan to govern the creation, implementation, 
and maintenance of a consolidated audit trail (``CAT'') and Central 
Repository for the collection of information for NMS securities. On 
February 27, 2015, the Participants submitted the CAT NMS Plan to the 
Commission.\1\
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    \1\ See Letter from Participants to Brent J. Fields, Secretary, 
Commission, dated February 27, 2015. The Participants filed the CAT 
NMS Plan on September 30, 2014. See Letter from the Participants, to 
Brent J. Fields, Secretary, Commission, dated September 30, 2014. 
The CAT NMS Plan filed on February 27, 2015, was an amendment to and 
replacement of the Initial CAT NMS Plan (the ``Amended and Restated 
CAT NMS Plan''). On December 24, 2015, the Participants submitted an 
Amendment to the Amended and Restated CAT NMS Plan. See Letter from 
Participants to Brent J. Fields, Secretary, Commission, dated 
December 23, 2015 (the ``Amendment''). On February 9, 2016, the 
Participants filed with the Commission an identical, but unmarked, 
version of the Amended and Restated CAT NMS Plan, dated February 27, 
2015, as modified by the Amendment, as well as a copy of the request 
for proposal issued by the Participants to solicit Bids from parties 
interested in serving as the Plan Processor for the consolidated 
audit trail. Unless the context otherwise requires, the ``CAT NMS 
Plan'' shall refer to the Amended and Restated CAT NMS Plan, as 
modified by the Amendment.

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[[Page 14580]]

    On April 27, 2016, the Commission published a notice soliciting 
comments from the public (``CAT NMS Plan Notice'').\2\ On November 15, 
2016, the Commission approved the CAT NMS Plan (``CAT NMS Plan 
Order''), including the information collections proposed in the CAT NMS 
Plan Notice and certain additional information collections that are the 
subject of this Notice.\3\ This Notice addresses only the new 
information collections noticed in the CAT NMS Plan Order, which are: 
(1) A one-time independent audit of the fees, costs, and expenses 
incurred by the Participants on behalf of CAT NMS, LLC prior to the 
Effective Date \4\ of the Plan; \5\ (2) a one-time assessment of the 
clock synchronization standards in the Plan before reporting begins for 
Industry Members, which assessment shall take into account the 
diversity of CAT Reporters and systems; \6\ (3) a one-time report that 
discusses the Participants' assessment of implementing coordinated 
surveillance; \7\ (4) a one-time report discussing the feasibility and 
advisability of allowing Industry Members to bulk download the Raw Data 
that it has submitted to the Central Repository; \8\ (5) a one-time 
assessment of the nature and extent of errors in the Customer 
information submitted to the Central Repository and whether the 
correction of certain data fields over others should be prioritized; 
\9\ (6) a one-time report on the impact of tiered fees on market 
liquidity, including an analysis of the impact of the tiered-fee 
structure on Industry Members provision of liquidity; \10\ (7) an 
assessment of the projected impact of any Material Systems Change on 
the Maximum Error Rate, prior to the implementation of such Material 
Systems Change; \11\ and (8) an annual requirement that that the CAT 
LLC financials be (i) in compliance with GAAP, (ii) be audited by an 
independent public accounting firm, and (iii) be made publicly 
available.\12\
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    \2\ See Securities Exchange Act Release No. 77724 (April 27, 
2016), 81 FR 30613 (May 17, 2016). The burdens associated with the 
CAT NMS Plan Notice were submitted under OMB number 3235-0671 which 
relates to the NMS Plan required to be filed under Rule 613.
    \3\ See Securities Exchange Act Release No. 79318 (November 15, 
2016), 81 FR 84696 (November 23, 2016), available at https://www.sec.gov/rules/sro/nms/2016/34-79318.pdf.
    \4\ The ``Effective Date'' is the date the Commission approved 
the CAT NMS Plan, which was November 15, 2016. See id.
    \5\ See CAT NMS Plan Order, supra note at 84940.
    \6\ Id.
    \7\ Id. at 84940-84941.
    \8\ Id. at 84941.
    \9\ Id.
    \10\ Id. at 84941-84942.
    \11\ Id. at 84942. The Commission believes that four assessments 
would be filed annually.
    \12\ Id.
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    The Commission believes that these audits, reports, and assessments 
of various aspects of the CAT NMS Plan are necessary to achieving the 
CAT NMS Plan's objective of improving the quality of the data available 
to regulators in four areas that affect the ultimate effectiveness of 
core regulatory efforts--completeness, accuracy, accessibility and 
timeliness.\13\
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    \13\ See Securities Exchange Act Release No. 67457 (July 18, 
2012), 77 FR 45722 (August 1, 2012) (``Rule 613 Adopting Release''), 
at 45727 (discussing four ``qualities'' of trade and order data that 
impact the effectiveness of core Participant and Commission 
regulatory efforts: accuracy, completeness, accessibility, and 
timeliness).
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    The new information collections further require that each 
Participant conduct background checks for its employees and contractors 
that will use the CAT System.\14\ The Commission believes that these 
background checks are necessary to ensure that only authorized and 
qualified persons are using the CAT System.
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    \14\ See CAT NMS Plan Order, supra note at 84942.
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    There are 21 respondents that require an aggregate total of 
8,269,747.99 hours to comply with the collection of information, as 
amended. The Commission further estimates that the aggregate cost to 
comply with the collection of information, as amended, is 
$534,465,565.81.
    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 amendment 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: March 16, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05539 Filed 3-20-17; 8:45 am]
BILLING CODE 8011-01-P