[Federal Register Volume 73, Number 69 (Wednesday, April 9, 2008)]
[Notices]
[Page 19269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-7397]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon written request, copies available from: U.S. Securities and
Exchange Commission, Office of Investor Education and Advocacy,
Washington, DC 20549-0213.
Extension:
Rule 611, OMB Control No. 3238-0600, SEC File No. 270-540.
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 existing
collection of information provided for in the following rule: Rule 611
(17 CFR 242.611).
On June 9, 2005, effective August 29, 2005 (see 70 FR 37496, June
29, 2005), the Commission adopted Rule 611 of Regulation NMS under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) to require any
national securities exchange, national securities association,
alternative trading system, exchange market maker, over-the-counter
market maker and any other broker-dealer that executes orders
internally by trading as principal or crossing orders as agent, to
establish, maintain, and enforce policies and procedures reasonably
designed to prevent the execution of a transaction in its market at a
price that is inferior to a bid or offer displayed in another market at
the time of execution (a ``trade-though''), absent an applicable
exception and, if relying on an exception, that are reasonably designed
to assure compliance with the terms of the exception. Without this
collection of information, respondents would not have a means to
enforce compliance with the Commission's intention to prevent trade-
throughs pursuant to the rule.
There are approximately 788 respondents\1\ per year that will
require an aggregate total of 47,280 hours to comply with this rule.\2\
It is anticipated that each respondent will continue to expend
approximately 60 hours annually: two hours per month of internal legal
time and three hours per month of internal compliance time to ensure
that its written policies and procedures are up-to-date and remain in
compliance with Rule 611. The estimated cost for an in-house attorney
is $295 per hour and the estimated cost for an assistant compliance
director in the securities industry is $301 per hour. Therefore the
estimated total cost of compliance for the annual hour burden is as
follows: [(2 legal hours x 12 months x $295) x 788] + [(3 compliance
hours x 12 months x $301) x 788] = $14,117,808.\3\ There are no longer
start-up costs associated with Rule 611.
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\1\ This estimate includes nine national securities exchanges
and one national securities association that trade NMS stocks. The
estimate also includes the approximately 731 firms that were
registered equity market makers or specialists at year-end 2006, as
well as automated trading systems that operate trading systems that
trade NMS stocks.
\2\ Please note that the 60 Day Notice to extend the
effectiveness of Rule 611 stated the annual hour burden as 36,540,
which does not reflect the increase in the number of respondents;
see Securities and Exchange Commission Proposed Collection; Comment
Request, 73 FR 5600 (January 30, 2008). The one-time hour burden
associated with developing the required policies and procedures is
no longer applicable.
\3\ The total cost of compliance for the annual hour burden has
been revised to reflect updated estimated cost figures for an in-
house attorney and an assistant compliance director. These figures
are from SIFMA's Management & Professional Earnings in the
Securities Industry 2007, adjusted by the SEC staff for an 1800 hour
work year and multiplied by 5.35 to account for bonuses, firm size,
employee benefits and overhead. See Securities Exchange Act Release
No. 50870 (Dec. 16, 2004), 69 FR 77424 (Dec. 27, 2004) at notes 427,
428 and accompanying text.
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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) R. Corey Booth, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Shirley
Martinson, 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: April 2, 2008.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-7397 Filed 4-8-08; 8:45 am]
BILLING CODE 8011-01-P