

[Federal Register: May 22, 2007 (Volume 72, Number 98)]
[Notices]               
[Page 28730-28731]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22my07-114]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Collection; Comment Request

Upon written request, copies available from: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.
Extension:
    Rule 301 and Forms ATS and ATS-R, SEC File No. 270-451, OMB 
Control No. 3235-0509.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the collection of 
information summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget for extension and approval.
    Regulation ATS (17 CFR 242.300 et seq.) under the Securities 
Exchange Act of 1934 (15 U.S.C. 78a et seq.) provides a regulatory 
structure that directly addresses issues related to alternative trading 
systems' role in the marketplace. Regulation ATS allows alternative 
trading systems to choose between two regulatory structures. 
Alternative trading systems have the choice between registering as 
broker-dealers and complying with Regulation ATS or registering as 
national securities exchanges. Regulation ATS provides the regulatory 
framework for those alternative trading systems that choose to be 
regulated as broker-dealers. Rule 301 of Regulation ATS contains 
certain notice and reporting requirements, as well as additional 
obligations that only apply to alternative trading systems with 
significant volume. Rule 301 describes the conditions with which a 
registered broker-dealer operating an alternative trading system must 
comply. The Rule requires all alternative trading systems that wish to 
comply with Regulation ATS to file an initial operation report on Form 
ATS. The initial operation report requires

[[Page 28731]]

information regarding operation of the system including the method of 
operation, access criteria and the types of securities traded. 
Alternative trading systems are also required to supply updates on Form 
ATS to the Commission, describing material changes to the system, and 
quarterly transaction reports on Form ATS-R. Alternative trading 
systems are also required to file cessation of operations reports on 
Form ATS.
    Alternative trading systems with significant volume are required to 
comply with requirements for fair access and systems capacity, 
integrity and security. Under Rule 301, such alternative trading 
systems are required to establish standards for granting access to 
trading on its system. In addition, upon a decision to deny or limit an 
investor's access to the system, an alternative trading system is 
required to provide notice to the investor of the denial or limitation 
and their right to an appeal to the Commission. Regulation ATS requires 
alternative trading systems to preserve any records made in the process 
of complying with the systems' capacity, integrity and security 
requirements. In addition, such alternative trading systems are 
required to notify Commission staff of material systems outages and 
significant systems changes.
    The Commission uses the information provided pursuant to the Rule 
to monitor the growth and development of alternative trading systems to 
confirm that investors effecting trades through the systems are 
adequately protected, and that the systems do not impede the 
maintenance of fair and orderly securities markets or otherwise operate 
in a manner that is inconsistent with the federal securities laws. In 
particular, the information collected and reported to the Commission by 
alternative trading systems enables the Commission to evaluate the 
operation of alternative trading systems with regard to national market 
system goals, and monitor the competitive effects of these systems to 
ascertain whether the regulatory framework remains appropriate to the 
operation of such systems. Without the information provided on Forms 
ATS and ATS-R, the Commission would not have readily available 
information on a regular basis in a format that will allow it to 
determine whether such systems have adequate safeguards.
    Respondents consist of alternative trading systems that choose to 
register as broker-dealers and comply with the requirements of 
Regulation ATS. The Commission estimates that there are currently 
approximately 65 respondents.
    An estimated 65 respondents will file an average total of 465 
responses per year, which corresponds to an estimated annual response 
burden of 1,982.5 hours. At an average cost per burden hour of 
approximately $95.57, the resultant total related cost of compliance 
for these respondents is $189,458.15 per year (1,982.5 burden hours 
multiplied by $95.57 per hour; a slight discrepancy is due to 
arithmetic rounding).
    Written comments are invited on (a) Whether the proposed collection 
of information is necessary for the proper performance of the functions 
of the agency, including whether the information shall have practical 
utility; (b) the accuracy of the agency's estimate 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.
    Comments should be directed to: R. Corey Booth, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Shirley 
Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-
mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 60 
days of this notice.

    Dated: May 16, 2007.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E7-9808 Filed 5-21-07; 8:45 am]

BILLING CODE 8010-01-P
