[Federal Register Volume 69, Number 159 (Wednesday, August 18, 2004)]
[Notices]
[Page 51337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18910]


=======================================================================
-----------------------------------------------------------------------

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 301 and Forms ATS and ATS-R--SEC File No. 270-451--OMB 
Control No. 3235-0509.

    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 extension of the previously approved 
collection of information discussed below.
    Regulation ATS provides a regulatory structure that directly 
addresses issues related to alternative trading systems' role in the 
marketplace. Regulation ATS allows alternative trading systems to 
choose between two regulatory structures. Alternative trading systems 
have the choice between registering as broker-dealers and complying 
with Regulation ATS or registering as national securities exchanges. 
Regulation ATS provides the regulatory framework for those alternative 
trading systems that choose to be regulated as broker-dealers. Rule 301 
of Regulation ATS contains certain notice and reporting requirements, 
as well as additional obligations that only apply to alternative 
trading systems with significant volume. Rule 301 describes the 
conditions with which an alternative trading system must comply to be 
registered as a broker-dealer. The Rule requires all alternative 
trading systems that wish to comply with Regulation ATS to file an 
initial operation report on Form ATS. The initial operation report 
requires information regarding operation of the system including the 
method of operation, access criteria and the types of securities 
traded. Alternative trading systems are also required to supply updates 
on Form ATS to the Commission, describing material changes to the 
system, and quarterly transaction reports on Form ATS-R. Alternative 
trading systems are also required to file cessation of operations 
reports on Form ATS.
    Alternative trading systems with significant volume are required to 
comply with requirements for fair access and systems capacity, 
integrity and security. Under Rule 301, such alternative trading 
systems are required to establish standards for granting access to 
trading on its system. In addition, upon a decision to deny or limit an 
investor's access to the system, an alternative trading system is 
required to provide notice to the investor of the denial or limitation 
and their right to an appeal to the Commission. Regulation ATS requires 
alternative trading systems to preserve any records made in the process 
of complying with the systems' capacity, integrity and security 
requirements. In addition, such alternative trading systems are 
required to notify Commission staff of material systems outages and 
significant systems changes.
    The Commission uses the information provided pursuant to the Rule 
to comprehensively monitor the growth and development of alternative 
trading systems to confirm that investors effecting trades through the 
systems are adequately protected, and that the systems do not impede 
the maintenance of fair and orderly securities markets or otherwise 
operate in a manner that is inconsistent with the federal securities 
laws. In particular, the information collected and reported to the 
Commission by alternative trading systems enables the Commission to 
evaluate the operation of alternative trading systems with regard to 
national market system goals, and monitor the competitive effects of 
these systems to ascertain whether the regulatory framework remains 
appropriate to the operation of such systems. Without the information 
provided on Forms ATS and ATS-R, the Commission would not have readily 
available information on a regular basis in a format that will allow it 
to determine whether such systems have adequate safeguards.
    Respondents consist of alternative trading systems that choose to 
register as broker-dealers and comply with the requirements of 
Regulation ATS. The Commission estimates that there are currently 
approximately 50 respondents.
    An estimated 50 respondents will file an average total of 379 
responses per year, which corresponds to an estimated annual response 
burden of 1,532.5 hours. At an average cost per burden hour of 
approximately $77.03, the resultant total related cost of compliance 
for these respondents is $118,046.26 per year (1,532.5 burden hours 
multiplied by $77.03 per hour; a slight discrepancy is due to 
arithmetic rounding).
    Compliance with Rule 301 is mandatory. The information required by 
the Rule 301 is available only to 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.
    Regulation ATS requires alternative trading systems to preserve any 
records, for at least three years, made in the process of complying 
with the systems capacity, integrity and security requirements.
    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.
    Written comments regarding the above information should be directed 
to the following persons: (a) The Desk Officer for the SEC, by sending 
an e-mail to: [email protected]; and (b) R. Corey Booth, 
Director/Chief Information Officer, Office of Information Technology, 
Securities and Exchange Commission, 450 Fifth Street, NW., Washington, 
DC 20549. Comments must be submitted to the Office of Management and 
Budget within 30 days of this notice.

    Dated: August 13, 2004.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-18910 Filed 8-17-04; 8:45 am]
BILLING CODE 8010-01-P