[Federal Register Volume 69, Number 159 (Wednesday, August 18, 2004)]
[Notices]
[Page 51339]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18913]


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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 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 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 303 
of Regulation ATS describes the record preservation requirements for 
alternative trading systems that are not national securities exchanges.
    Alternative trading systems that register as broker-dealers, comply 
with Regulation ATS and meet certain volume thresholds are required to 
preserve all records made pursuant to Rule 302, which includes 
information relating to subscribers, trading summaries and order 
information. Such alternative trading systems are also required to 
preserve records of any notices communicated to subscribers, a copy of 
the system's standards for granting access to trading and any documents 
generated in the course of complying with the capacity, integrity and 
security requirements for automated systems under Rule 301(b)(6) of 
Regulation ATS. Rule 303 also describes how such records must be kept 
and how long they must be preserved.
    The information contained in the records required to be preserved 
by the Rule will be used by examiners and other representatives of the 
Commission, state securities regulatory authorities, and the SROs to 
ensure that alternative trading systems are in compliance with 
Regulation ATS as well as other rules and regulations of the Commission 
and the SROs. Without the data required by the proposed Rule, the 
Commission would be severely limited in its ability to comply with its 
statutory obligations, provide for the protection of investors and 
promote the maintenance of fair and orderly markets.
    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 spend approximately 200 hours per 
year (50 respondents at 4 burden hours/respondent) to comply with the 
record preservation requirements of Rule 303. At an average cost per 
burden hour of $86.54, the resultant total related cost of compliance 
for these respondents is $17,308.00 per year (200 burden hours 
multiplied by $86.54/hour).
    Compliance with Rule 303 is mandatory. The information required by 
the Rule 303 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 email 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. 04-18913 Filed 8-17-04; 8:45 am]
BILLING CODE 8010-01-P