[Federal Register Volume 86, Number 126 (Tuesday, July 6, 2021)]
[Notices]
[Pages 35558-35559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14263]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-450, OMB Control No. 3235-0505]


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 303 of Regulation ATS

    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 303 of Regulation ATS 
(17 CFR 242.303) under the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.) (``Exchange Act''). 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''), which are entities that carry out 
exchange functions but are not required to register as national 
securities exchanges under the Act. In lieu of exchange registration, 
an ATS can instead opt to register with the Commission as a broker-
dealer and, as a condition to not having to register as an exchange, 
must instead comply with Regulation ATS. Rule 303 of Regulation ATS (17 
CFR 242.303) describes the record preservation requirements for ATSs. 
Rule 303 also describes how such records must be maintained, what 
entities may perform this function, and how long records must be 
preserved.
    Under Rule 303, ATSs are required to preserve all records made 
pursuant to Rule 302, which includes information relating to 
subscribers, trading summaries, and time-sequenced order information. 
Rule 303 also requires ATSs to preserve any notices provided to 
subscribers, including, but not limited to, notices regarding the ATSs 
operations and subscriber access. For an ATS subject to the fair access 
requirements described in Rule 301(b)(5)(ii) of Regulation ATS, Rule 
303 further requires the ATS to preserve at least one copy of its 
standards for access to trading, all documents relevant to the ATS's 
decision to grant, deny, or limit access to any person, and all other 
documents made or received by the ATS in the course of complying with 
Rule 301(b)(5) of Regulation ATS. For an ATS subject to the capacity, 
integrity, and security requirements for automated systems under Rule 
301(b)(6) of Regulation ATS, Rule 303 requires an ATS to preserve all 
documents made or received by the ATS related to its compliance, 
including all correspondence, memoranda, papers, books, notices, 
accounts, reports, test scripts, test results, and other similar 
records. Rule 303(a)(1)(v) of Regulation ATS requires every ATS to 
preserve the written safeguards and written procedures mandated under 
Rule 301(b)(10). As provided in Rule 303(a)(1), ATSs are required to 
keep all of these records, as applicable, for a period of at least 
three years, the first two in an easily accessible place. In addition, 
Rule 303 requires ATSs to preserve records of partnership articles, 
articles of incorporation or charter, minute books, stock certificate 
books, copies of reports filed pursuant to Rule 301(b)(2) and Rule 304, 
and records made pursuant to Rule 301(b)(5) for the life of the ATS. 
ATSs that trade both NMS Stock and securities other than NMS Stock are 
required to file, and also preserve under Rule 303, both Form ATS and 
related amendments and Form ATS-N and related amendments.
    The information contained in the records required to be preserved 
by Rule 303 will be used by examiners and other representatives 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. 
Without the data required by the Rule, 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 register as 
broker-dealers and comply with the requirements of Regulation ATS.
    There are currently 94 respondents. The Commission believes that 
the average ongoing hourly burden for a respondent to comply with the 
baseline record preservation requirements under Rule 303 is 
approximately 15 hours per year. We thus estimate that the average 
aggregate ongoing burden to comply with the baseline Rule 303 record 
preservation requirements is approximately 1,410 hours per year (94 
ATSs x 15 hours = 1,410 hours). In addition, there are currently two 
ATSs that transact in both NMS stock and non-NMS stock on their ATSs. 
These two ATSs have a slightly greater burden because they have to keep 
both Form ATS and Form ATS-N and related documents (e.g., amendments). 
For these two ATS's, we estimate that the ongoing burden above the 
current baseline estimate for preserving records will be approximately 
1 hour annually per ATS for a total annual burden above the current 
baseline burden estimate of 2 hours for all respondents. Thus, the 
estimated average annual aggregate burden for alternative trading 
systems to comply with Rule 303 is approximately 1,412 hours (1,410 
hours + 2 hours).
    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 under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o 
Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or send an email 
to: [email protected].


[[Page 35559]]


    Dated: June 29, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-14263 Filed 7-2-21; 8:45 am]
BILLING CODE 8011-01-P