

[Federal Register: May 22, 2007 (Volume 72, Number 98)]
[Notices]               
[Page 28730]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22my07-113]                         

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

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the 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 303 of Regulation ATS describes the 
record preservation requirements for alternative trading systems that 
are not national securities exchanges.
    Alternative trading systems that register as broker-dealers, comply 
with Regulation ATS, and meet certain volume thresholds are required to 
preserve all records made pursuant to Rule 302, which includes 
information relating to subscribers, trading summaries and order 
information. Such alternative trading systems are also required to 
preserve records of any notices communicated to subscribers, a copy of 
the system's standards for granting access to trading and any documents 
generated in the course of complying with the capacity, integrity and 
security requirements for automated systems under Rule 301(b)(6) of 
Regulation ATS. Rule 303 also describes how such records must be kept 
and how long they must be preserved.
    The information contained in the records required to be preserved 
by the Rule will be used by examiners and other representatives of the 
Commission, state securities regulatory authorities, and the SROs to 
ensure that alternative trading systems are in compliance with 
Regulation ATS as well as other rules and regulations of the Commission 
and the SROs. Without the data required by the proposed Rule, the 
Commission would be severely limited in its ability to comply with its 
statutory obligations, provide for the protection of investors and 
promote the maintenance of fair and orderly markets.
    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 spend approximately 260 hours per 
year (65 respondents at 4 burden hours/respondent) to comply with the 
record preservation requirements of Rule 303. At an average cost per 
burden hour of $86.54, the resultant total related cost of compliance 
for these respondents is $22,500.00 per year (260 burden hours 
multiplied by $86.54/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. E7-9806 Filed 5-21-07; 8:45 am]

BILLING CODE 8010-01-P
