Submission for OMB Review; Comment Request, 26298-26299 [2010-11099]

Download as PDF emcdonald on DSK2BSOYB1PROD with NOTICES 26298 Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Notices existence and adequacy of covered institutions’ safeguard policies and procedures. We estimate that as of the end of 2009, there are 5253 broker-dealers, 4522 investment companies, and 11,450 investment advisers currently registered with the Commission, for a total of 21,225 covered institutions. We expect that all of these covered institutions have already documented their safeguard policies and procedures in writing and therefore will incur no hourly burdens related to the initial documentation of policies and procedures. However, we expect that approximately 10 percent of the 21,225 covered institutions currently registered with the Commission will review and update their policies and procedures each year, for a total of 2123 covered institutions that will spend time to update their policies and procedures. The amount of time spent reviewing and updating safeguard policies and procedures is likely to vary widely, based on the size of the entity, the complexity of its operations, and any significant changes in the security environment. We estimate that it will take a typical covered institution that reviews and updates its safeguard policies and procedures approximately 20 hours to complete such a review and document the results, for a total hourly burden for all institutions of 42,460 hours. Although existing covered institutions would not incur any initial hourly burden in complying with the safeguards rule, we expect that newly registered institutions would incur some hourly burdens associated with documenting their safeguard policies and procedures. We estimate that approximately 1500 broker-dealers, investment companies, or investment advisers register with the Commission annually. However, we also expect that approximately 70% of these newly registered covered institutions (1050) are affiliated with an existing covered institution, and will rely on an organization-wide set of previously documented safeguard policies and procedures created by their affiliates. We estimate that these affiliated newly registered covered institutions will incur a significantly reduced hourly burden in complying with the safeguards rule, as they will need only to review their affiliate’s existing policies and procedures, and identify and adopt the relevant policies for their business. Therefore, we expect that newly registered covered institutions with existing affiliates will incur an hourly burden of approximately 15 VerDate Mar<15>2010 21:07 May 10, 2010 Jkt 220001 hours in identifying and adopting safeguard policies and procedures for their business, for a total hourly burden for all affiliated new institutions of 15,750 hours. Finally, we expect that the 450 newly registered entities that are not affiliated with an existing institution will incur a significantly higher hourly burden in reviewing and documenting their safeguard policies and procedures. We expect that virtually all of the newly registered covered entities that do not have an affiliate are likely to be small entities and are likely to have smaller and less complex operations, with a correspondingly smaller set of safeguard policies and procedures to document, compared to other larger existing institutions with multiple affiliates. We estimate that it will take a typical newly registered unaffiliated institution approximately 65 hours to review, identify, and document their safeguard policies and procedures, for a total of 29,250 hours for all newly registered unaffiliated entities. Therefore, we estimate that the total annual hourly burden associated with the safeguards rule is 87,460 hours. We also estimate that all covered institutions will be respondents each year, for a total of 21,225 respondents. These estimates of average burden hours are made solely for the purposes of the Paperwork Reduction Act. 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 control number. The safeguard rule does not require the reporting of any information or the filing of any documents with the Commission. The collection of information required by the safeguard rule is mandatory. Please direct general comments regarding the above information to the following persons: (i) Desk Officer for the Securities and Exchange Commission, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503 or send an e-mail to Shagufta Ahmed at Shagufta_Ahmed@omb.eop.gov; and (ii) Charles Boucher, Director/CIO, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312; or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. May 5, 2010. Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–11097 Filed 5–10–10; 8:45 am] BILLING CODE 8010–01–P PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investors Education and Advocacy, Washington, DC 20549–0213. Extension: Rule 605 of Regulation NMS; SEC File No. 270–488; OMB Control No. 3235–0542 Rule 606 of Regulation NMS; SEC File No. 270–489; OMB Control No. 3235–0541. 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 requests for approval of extension of the existing collections of information for the following rules: Rule 605 and Rule 606 (17 CFR 242.605 and 17 CFR 242.606) (formerly Rule 11Ac1–5 and Rule 11Ac1–6) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (‘‘Exchange Act’’). Rule 605 of Regulation NMS,1 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, 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 selfregulatory organization (‘‘SRO’’) that would generate the statistics and reports. 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 408 market centers are subject to the collection of 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, and Rule 11Ac1–6 under the Exchange Act was redesignated Rule 606 of Regulation NMS. No substantive amendments were made to Rule 605 and Rule 606 of Regulation NMS. See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005). E:\FR\FM\11MYN1.SGM 11MYN1 emcdonald on DSK2BSOYB1PROD with NOTICES Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Notices 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 in additional time to collect the data necessary to generate the reports, or 72 hours per year. With an estimated 408 market centers subject to Rule 605, the total data collection cost to comply with the monthly reporting requirement is estimated to be 29,376 hours per year. Rule 606 of Regulation NMS (‘‘Rule 606’’), formerly known as Rule 11Ac1– 6, requires broker-dealers to prepare and disseminate quarterly order routing reports. Much of the information needed to generate these reports already should be collected by broker-dealers in connection with their periodic evaluations of their order routing practices. Broker-dealers must conduct such evaluations to fulfill the duty of best execution that they owe their customers. The collection of information obligations of Rule 606 applies to broker-dealers that route non-directed customer orders in covered securities. The Commission estimates that out of the currently 5178 broker-dealers that are subject to the collection of information obligations of Rule 606, clearing brokers bear a substantial portion of the burden of complying with the reporting and recordkeeping requirements of Rule 606 on behalf of small to mid-sized introducing firms. There currently are approximately 527 clearing brokers. In addition, there are approximately 2426 introducing brokers that receive funds or securities from their customers. Because at least some of these firms also may have greater involvement in determining where customer orders are routed for execution, they have been included, along with clearing brokers, in estimating the total burden of Rule 606. The Commission staff estimates that each firm significantly involved in order routing practices incurs an average burden of 40 hours to prepare and disseminate a quarterly report required by Rule 606, or a burden of 160 hours per year. With an estimated 2953 2 broker-dealers significantly involved in order routing practices, the total burden per year to comply with the quarterly reporting requirement in Rule 606 is estimated to be 472,480 hours. Rule 606 requires broker-dealers to respond to individual customer requests for information on orders handled by the broker-dealer for that customer. Clearing brokers generally bear the burden of responding to these requests. The Commission staff estimates that an average clearing broker incurs an annual burden of 400 hours (2000 responses x 0.2 hours/response) to prepare, disseminate, and retain responses to customers required by Rule 606. With an estimated 527 clearing brokers subject to Rule 606, the total burden per year to comply with the customer response requirement in Rule 606 is estimated to be 210,800 hours. The collection of information obligations imposed by Rule 605 and Rule 606 are mandatory. The response will be available to the public and will not be kept confidential. Persons should note that an agency may not conduct or sponsor, and a person is not required to comply with, a collection of information unless it displays a currently valid OMB control number. 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 e-mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Charles Boucher, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312, or send an e-mail to PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. May 5, 2010. Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–11099 Filed 5–10–10; 8:45 am] BILLING CODE 8010–01–P clearing brokers + 2426 introducing brokers = 2953. VerDate Mar<15>2010 19:22 May 10, 2010 Jkt 220001 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to designate 75 options classes to be added to the Penny Pilot Program for Options (‘‘Penny Pilot’’ or ‘‘Pilot’’) on May 3, 2010. There are no changes to the rule text. A copy of this filing is available on the Exchange’s Web site at https:// www.nyse.com, at the Exchange’s principal office and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62031; File No. SR– NYSEArca–2010–39] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Adding 75 Options Classes to the Penny Pilot Program May 4, 2010. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on April 28, 1 15 2 527 26299 U.S.C.78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 4 See Exchange Act Release No. 60711 (September 23, 2009), 74 FR 49419 (September 28, 2009) (order approving SR–NYSEArca–2009–44). 2 15 PO 00000 Frm 00115 Fmt 4703 NYSE Arca proposes to identify the next 75 options classes to be added to the Penny Pilot effective May 3, 2010. The Exchange recently received approval to extend and expand the Pilot through December 31, 2010.4 In that filing, the Exchange had proposed expanding the Pilot on a quarterly basis to add the next 75 most actively traded multiply listed options classes based on national average daily volume for the six months prior to selection, closing under $200 per share on the Expiration Friday prior to expansion, except that the month immediately preceding their addition to the Penny Pilot will not be Sfmt 4703 E:\FR\FM\11MYN1.SGM 11MYN1

Agencies

[Federal Register Volume 75, Number 90 (Tuesday, May 11, 2010)]
[Notices]
[Pages 26298-26299]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11099]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investors Education and Advocacy, Washington, DC 
20549-0213.

Extension:
    Rule 605 of Regulation NMS; SEC File No. 270-488; OMB Control No. 
3235-0542
    Rule 606 of Regulation NMS; SEC File No. 270-489; OMB Control No. 
3235-0541.

    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 requests for approval of extension of the existing 
collections of information for the following rules: Rule 605 and Rule 
606 (17 CFR 242.605 and 17 CFR 242.606) (formerly Rule 11Ac1-5 and Rule 
11Ac1-6) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et 
seq.) (``Exchange Act'').
    Rule 605 of Regulation NMS,\1\ 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, 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 (``SRO'') that 
would generate the statistics and reports.
---------------------------------------------------------------------------

    \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, and Rule 
11Ac1-6 under the Exchange Act was redesignated Rule 606 of 
Regulation NMS. No substantive amendments were made to Rule 605 and 
Rule 606 of Regulation NMS. See Securities Exchange Act Release No. 
51808 (June 9, 2005), 70 FR 37496 (June 29, 2005).
---------------------------------------------------------------------------

    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 408 market 
centers are subject to the collection of

[[Page 26299]]

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 in additional time to collect 
the data necessary to generate the reports, or 72 hours per year. With 
an estimated 408 market centers subject to Rule 605, the total data 
collection cost to comply with the monthly reporting requirement is 
estimated to be 29,376 hours per year.
    Rule 606 of Regulation NMS (``Rule 606''), formerly known as Rule 
11Ac1-6, requires broker-dealers to prepare and disseminate quarterly 
order routing reports. Much of the information needed to generate these 
reports already should be collected by broker-dealers in connection 
with their periodic evaluations of their order routing practices. 
Broker-dealers must conduct such evaluations to fulfill the duty of 
best execution that they owe their customers.
    The collection of information obligations of Rule 606 applies to 
broker-dealers that route non-directed customer orders in covered 
securities. The Commission estimates that out of the currently 5178 
broker-dealers that are subject to the collection of information 
obligations of Rule 606, clearing brokers bear a substantial portion of 
the burden of complying with the reporting and recordkeeping 
requirements of Rule 606 on behalf of small to mid-sized introducing 
firms. There currently are approximately 527 clearing brokers. In 
addition, there are approximately 2426 introducing brokers that receive 
funds or securities from their customers. Because at least some of 
these firms also may have greater involvement in determining where 
customer orders are routed for execution, they have been included, 
along with clearing brokers, in estimating the total burden of Rule 
606.
    The Commission staff estimates that each firm significantly 
involved in order routing practices incurs an average burden of 40 
hours to prepare and disseminate a quarterly report required by Rule 
606, or a burden of 160 hours per year. With an estimated 2953 \2\ 
broker-dealers significantly involved in order routing practices, the 
total burden per year to comply with the quarterly reporting 
requirement in Rule 606 is estimated to be 472,480 hours.
---------------------------------------------------------------------------

    \2\ 527 clearing brokers + 2426 introducing brokers = 2953.
---------------------------------------------------------------------------

    Rule 606 requires broker-dealers to respond to individual customer 
requests for information on orders handled by the broker-dealer for 
that customer. Clearing brokers generally bear the burden of responding 
to these requests. The Commission staff estimates that an average 
clearing broker incurs an annual burden of 400 hours (2000 responses x 
0.2 hours/response) to prepare, disseminate, and retain responses to 
customers required by Rule 606. With an estimated 527 clearing brokers 
subject to Rule 606, the total burden per year to comply with the 
customer response requirement in Rule 606 is estimated to be 210,800 
hours.
    The collection of information obligations imposed by Rule 605 and 
Rule 606 are mandatory. The response will be available to the public 
and will not be kept confidential. Persons should note that an agency 
may not conduct or sponsor, and a person is not required to comply 
with, a collection of information unless it displays a currently valid 
OMB control number.
    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 e-mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Charles Boucher, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o Shirley Martinson, 
6432 General Green Way, Alexandria, Virginia 22312, or send an e-mail 
to PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 
days of this notice.

     May 5, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-11099 Filed 5-10-10; 8:45 am]
BILLING CODE 8010-01-P
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