[Federal Register: November 19, 2003 (Volume 68, Number 223)]
[Notices]
[Page 65321-65322]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19no03-129]
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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 Filings and Information Services,
Washington, DC 20549.
Extension:
Rule 11Ac1-5, SEC File No. 270-488, OMB Control No. 3235-0542
Rule 11Ac1-6, 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'') is soliciting comments on the collections
of information summarized below. The Commission plans to submit these
existing collections of information to the Office of Management and
Budget for extension and approval.
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.
The collection of information obligations of Rule 11Ac1-5 apply to
all market centers that receive covered orders in national market
system securities. The Commission estimates that approximately 367
market centers are subject to the collection of information obligations
of Rule 11Ac1-5. 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 11Ac1-5
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 367 market centers subject to Rule 11Ac1-5, the
total data collection cost to comply with the monthly reporting
requirement is estimated to be 26,424 hours per year.
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 11Ac1-6 applies
to broker-dealers that route non-directed customer orders in covered
securities. The Commission estimates that out of the currently 2678
broker-dealers that are subject to the collection of information
obligations of Rule 11Ac1-6, clearing brokers bear a substantial
portion of the burden of complying with the reporting and recordkeeping
requirements of Rule 11Ac1-6 on behalf of small to mid-sized
introducing firms. There currently are approximately 330 clearing
brokers. In addition, there are approximately 610 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 11Ac1-6.
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
11Ac1-6, or a burden of 160 hours per year. With an estimated 940
broker-dealers significantly involved in order routing practices, the
total burden per year to comply with the quarterly reporting
requirement in Rule 11Ac1-6 is estimated to be 150,400 hours.
Rule 11Ac1-6 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 11Ac1-6. With an estimated 330
clearing brokers subject to Rule 11Ac1-6, the total burden per year to
comply with the customer response requirement in Rule 11Ac1-6 is
estimated to be 132,000 hours.
The collection of information obligations imposed by Rule 11Ac1-5
and Rule 11Ac1-6 are mandatory. The response will be available to the
public and will not be kept confidential. 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.
General comments regarding the above information should be directed
to the following persons: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of
[[Page 65322]]
Management and Budget, Room 10102, New Executive Office building,
Washington, DC 20503; and (ii) Kenneth A. Fogash, Acting Associate
Executive Director/CIO, Office of Information Technology, Securities
and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
Comments must be submitted to OMB within 30 days of this notice.
Dated: November 10, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-28848 Filed 11-18-03; 8:45 am]
BILLING CODE 8010-01-P