[Federal Register Volume 84, Number 139 (Friday, July 19, 2019)]
[Notices]
[Pages 34978-34979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15344]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-389, OMB Control No. 3235-0444]
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 10b-10
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and
Exchange Commission (``Commission'') is soliciting comments on the
existing collection of information provided for in Rule 10b-10 (17 CFR
240.10b-10) under the Securities and Exchange Act of 1934 (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.
Rule 10b-10 requires broker-dealers to convey specified information
to customers regarding their securities transactions. This information
includes the date and time of the transaction, the identity and number
of shares bought or sold, and whether the broker-dealer acts as agent
for the customer or as principal for its own account. Depending on
whether the broker-dealer acts as agent or principal, Rule 10b-10
requires the disclosure of commissions, as well as mark-up and mark-
down information. For transactions in debt securities, Rule 10b-10
requires the disclosure of redemption and yield information. Rule 10b-
10 potentially applies to all of the approximately 3,750 firms
registered with the Commission that effect transactions for or with
customers.
Based on information provided by registered broker-dealers to the
Commission in FOCUS Reports, the Commission staff estimates that on
average, registered broker-dealers process approximately 18,843,624,843
order tickets per year for transactions for or with customers. Each
order ticket representing a transaction effected for or with a customer
generally results in one confirmation. Therefore, the Commission staff
estimates that approximately 18,843,624,843 confirmations are sent to
customers annually. The confirmations required by Rule 10b-10 are
generally processed through automated systems. It takes approximately
30 seconds to generate and send a confirmation. Accordingly, the
Commission staff estimates that broker-dealers spend approximately
157,030,207 hours per year complying with Rule 10b-10 (18,843,624,843 x
.5 / 60).
The amount of confirmations sent and the cost of sending each
confirmation varies from firm to firm. Smaller firms generally send
fewer confirmations than larger firms because they effect fewer
transactions. The Commission staff estimates the costs of producing and
sending a paper confirmation, including postage, to be approximately 63
cents. The Commission staff also estimates
[[Page 34979]]
that the cost of producing and sending a wholly electronic confirmation
is approximately 39 cents. Based on informal discussions with industry
participants, as well as representations made in requests for exemptive
and no-action letters relating to Rule 10b-10, the staff estimates that
broker-dealers used electronic confirmations for approximately 35
percent of transactions. Based on these calculations, Commission staff
estimates that 12,248,356,148 paper confirmations are mailed each year
at a cost of $7,716,464,373. Commission staff also estimates that
6,595,268,695 wholly electronic confirmations are sent each year at a
cost of $2,572,154,791. Accordingly, Commission staff estimates that
the total annual cost associated with generating and delivering to
investors the information required under Rule 10b-10 would be
$10,288,619,164.
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 subject to the PRA 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: July 15, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15344 Filed 7-18-19; 8:45 am]
BILLING CODE 8011-01-P