[Federal Register Volume 84, Number 173 (Friday, September 6, 2019)]
[Notices]
[Pages 47028-47029]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19237]
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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 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'') has submitted to the Office of
Management and Budget (``OMB'') a request for approval of extension of
the previously approved 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.).
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
[[Page 47029]]
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. Rule 302 of Regulation ATS (17 CFR
242.302) describes the recordkeeping requirements for ATSs. Under Rule
302, ATSs are required to 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.
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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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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 (``SROs'') 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).
Compliance with Rule 302 is mandatory. The information required by
Rule 302 is available only for 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.
ATSs are required to preserve, for at least three years, any
records made in the process of complying with the requirements set out
in Rule 302.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
The public may view background documentation for this information
collection at the following website: www.reginfo.gov. Comments should
be directed to: (i) Desk Officer for the Securities and Exchange
Commission, Office of Information and Regulatory Affairs, Office of
Management and Budget, Room 10102, New Executive Office Building,
Washington, DC 20503, or by sending an email to:
[email protected]; and (ii) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Candace Kenner, 100 F Street NE, Washington, DC 20549, or by sending an
email to: [email protected]. Comments must be submitted to OMB within
30 days of this notice.
Dated: September 3, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-19237 Filed 9-5-19; 8:45 am]
BILLING CODE 8011-01-P