[Federal Register Volume 68, Number 223 (Wednesday, November 19, 2003)]
[Notices]
[Pages 65321-65322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28848]


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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