[Federal Register Volume 84, Number 189 (Monday, September 30, 2019)]
[Notices]
[Page 51696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21083]
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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 10b-10, SEC File No. 270-389, OMB Control No. 3235-0444.
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'') 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
10b-10 (17 CFR 240.10b-10) under the Securities and Exchange Act of
1934 (15 U.S.C. 78a et seq.).
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 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.
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 24, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-21083 Filed 9-27-19; 8:45 am]
BILLING CODE 8011-01-P