[Federal Register Volume 84, Number 119 (Thursday, June 20, 2019)]
[Notices]
[Pages 28878-28879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13056]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736.
Extension:
Rule 302, SEC File No. 270-453, OMB Control No. 3235-0510
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and
Exchange Commission (``Commission'') is soliciting comments on the
existing collection of information provided for in Rule 302 (17 CFR
242.302) of Regulation ATS (17 CFR 242.300 et seq.) under the
Securities and Exchange Act of 1934 (``Act'') (15 U.S.C. 78a et seq.).
The Commission plans to submit this existing collection of information
to the Office of Management and Budget (``OMB'') for extension and
approval.
Regulation ATS sets forth a regulatory regime for ``alternative
trading systems'' (``ATSs''). An entity that meets the definition of an
exchange must register, pursuant to Section 5 of the Exchange Act, as a
national securities exchange under Section 6 of the Exchange Act \1\ or
operate pursuant to an appropriate exemption.\2\ One of the available
exemptions is for ATSs.\3\ Exchange Act Rule 3a1-1(a)(2) exempts from
the definition of ``exchange'' under Section 3(a)(1) an organization,
association, or group of persons that complies with Regulation ATS.\4\
Regulation ATS requires an ATS to, among other things, register as a
broker-dealer with the Securities and Exchange Commission (``SEC''),
file a Form ATS with the Commission to notice its operations, and
establish written safeguards and procedures to protect subscribers'
confidential trading information. An ATS that complies with Regulation
ATS and operates pursuant to the Rule 3a1-1(a)(2) exemption would not
be required by Section 5 to register as a national securities exchange.
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\1\ See 15 U.S.C. 78e and 78f. A ``national securities
exchange'' is an exchange registered as such under Section 6 of the
Exchange Act.
\2\ 15 U.S.C. 78a et seq.
\3\ Rule 300(a) of Regulation ATS provides that an ATS is ``any
organization, association, person, group of persons, or system: (1)
[t]hat constitutes, maintains, or provides a market place or
facilities for bringing together purchasers and sellers of
securities or for otherwise performing with respect to securities
the functions commonly performed by a stock exchange within the
meaning of [Exchange Act Rule 3b-16]; and (2) [t]hat does not: (i)
[s]et rules governing the conduct of subscribers other than the
conduct of subscribers' trading on such [ATS]; or (ii) [d]iscipline
subscribers other than by exclusion from trading.''
\4\ See 17 CFR 240.3a1-1(a)(2).
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Rule 302 of Regulation ATS (17 CFR 242.302) describes the
recordkeeping requirements for ATSs. Under Rule 302,
[[Page 28879]]
ATSs are required to, among other things, make a record of subscribers
to the ATS, daily summaries of trading in the ATS, and time-sequenced
records of order information in the ATS.
The information required to be collected under Rule 302 should
increase the abilities of the Commission, state securities regulatory
authorities, and the self-regulatory organizations to ensure that ATSs
are in compliance with Regulation ATS as well as other applicable rules
and regulations. If the information is not collected or collected less
frequently, the 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 operate pursuant to the
exemption provided by Regulation ATS from registration as national
securities exchanges. There are currently 83 respondents. These
respondents will spend approximately 3,735 hours per year (83
respondents at 45 burden hours/respondent) to comply with the
recordkeeping requirements of Rule 302. At an average cost per burden
hour of $73, the resultant total related internal cost of compliance
for these respondents is $272,655 per year (3,735 burden hours
multiplied by $73/hour).
Written comments are invited on (a) whether the proposed collection
of information is necessary for the proper performance of the functions
of the Commission, including whether the information shall have
practical utility; (b) the accuracy of the Commission's estimates of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information collected;
and (d) ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication.
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 OMB control number.
Please direct your written comments to: Charles Riddle, Acting
Director/Chief Information Officer, Securities and Exchange Commission,
c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an
email to: [email protected].
Dated: June 14, 2019.
Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-13056 Filed 6-19-19; 8:45 am]
BILLING CODE 8011-01-P