[Federal Register Volume 90, Number 19 (Thursday, January 30, 2025)]
[Notices]
[Pages 8544-8545]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01965]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-450, OMB Control No. 3235-0505]
Submission for OMB Review; Comment Request; Extension: Rule 303
of Regulation ATS
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
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 303
of Regulation ATS (17 CFR 242.303) under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) (``Exchange Act'').
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 (``SROs'') 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 107 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 1,605 hours per year. (107 ATSs x 15
hours = 1,605 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 ATSs, 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 1,607 hours (1,605 hours + 2
hours).
Compliance with Rule 303 is mandatory. The information required by
Rule 303 is available only for the examination of the Commission staff,
[[Page 8545]]
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.
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 and comment on this information collection
request at: https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202411-3235-003 or send an email comment to
[email protected] within 30 days of the day
after publication of this notice by March 3, 2025.
Dated: January 27, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-01965 Filed 1-29-25; 8:45 am]
BILLING CODE 8011-01-P