[Federal Register Volume 75, Number 175 (Friday, September 10, 2010)]
[Notices]
[Page 55371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-22563]
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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 303; SEC File No. 270-450; OMB Control No. 3235-0505.
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 a request for approval of extension of the previously
approved collection of information provided for in Rule 303 (17 CFR
242.303) of Regulation ATS (17 CFR 242.300 et seq.) under the
Securities and Exchange Act of 1934 (15 U.S.C. 78a et seq.).
Regulation ATS sets forth a regulatory regime for ``alternative
trading systems'' (``ATSs''), which are entities that carry out
exchange functions but which are not required to register as national
securities exchanges under the Act. In lieu of exchange registration,
an ATS can instead opt to register with the Commission as a broker-
dealer and, as a condition to not having to register as an exchange,
must instead comply with Regulation ATS. Rule 303 of Regulation ATS (17
CFR 242.303) describes the record preservation requirements for ATSs.
Rule 303 also describes how such records must be maintained, what
entities may perform this function, and how long records must be
preserved.
Under Rule 303, ATSs are required to preserve all records made
pursuant to Rule 302, which includes information relating to
subscribers, trading summaries, and time-sequenced order information.
Rule 303 also requires ATSs to preserve any notices provided to
subscribers, including, but not limited to, notices regarding the ATSs
operations and subscriber access. For an ATS subject to the fair access
requirements described in Rule 301(b)(5)(ii) of Regulation ATS, Rule
303 further requires the ATS to preserve at least one copy of its
standards for access to trading, all documents relevant to the ATS's
decision to grant, deny, or limit access to any person, and all other
documents made or received by the ATS in the course of complying with
Rule 301(b)(5) of Regulation ATS. For an ATS subject to the capacity,
integrity, and security requirements for automated systems under Rule
301(b)(6) of Regulation ATS, Rule 303 requires an ATS to preserve all
documents made or received by the ATS related to its compliance,
including all correspondence, memoranda, papers, books, notices,
accounts, reports, test scripts, test results and other similar
records. As provided in Rule 303(a)(1), ATSs are required to keep all
of these records, as applicable, for a period of at least three years,
the first two in an easily accessible place. In addition, Rule 303
requires ATSs to preserve records of partnership articles, articles of
incorporation or charter, minute books, stock certificate books, copies
of reports filed pursuant to Rule 301(b)(2), and records made pursuant
to Rule 301(b)(5) for the life of the ATS.
The information contained in the records required to be preserved
by Rule 303 will be used by examiners and other representatives of the
Commission, state securities regulatory authorities, and the self-
regulatory organizations (``SROs'') to ensure that ATSs are in
compliance with Regulation ATS as well as other applicable rules and
regulations. Without the data required by the Rule, regulators would be
limited in their ability to comply with their statutory obligations,
provide for the protection of investors, and promote the maintenance of
fair and orderly markets.
Respondents consist of ATSs that choose to register as broker-
dealers and comply with the requirements of Regulation ATS. There are
currently 81 respondents. To comply with the record preservation
requirements of Rule 303, these respondents will spend approximately
1,215 hours per year (81 respondents at 15 burden hours/respondent). At
an average cost per burden hour of $106, the resultant total related
cost of compliance for these respondents is $128,790 per year (1,215
burden hours multiplied by $106/hour).
Compliance with Rule 303 is mandatory. The information required by
Rule 303 is available only for 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. 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.
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.
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: [email protected]; and (ii) Charles Boucher, Director/Chief Information
Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon,
6432 General Green Way, Alexandria, VA 22312 or send an e-mail to:
[email protected]. Comments must be submitted within 30 days of this
notice.
Dated: September 3, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-22563 Filed 9-9-10; 8:45 am]
BILLING CODE 8010-01-P