

[Federal Register: January 30, 2008 (Volume 73, Number 20)]
[Notices]               
[Page 5600-5601]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ja08-119]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Collection; Comment Request

Upon Written Request, Copies Available From: U.S. Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549-0213.

Extension:
    Rule 611; OMB Control No. 3238-0600; SEC File No. 270-540.

    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.
     (Rule 611 (17 CFR 242.611)--Order Protection Rule
    On June 9, 2005, effective August 29, 2005 (see 70 FR 37496, June 
29, 2005), the Commission adopted Rule 611 of Regulation NMS under the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) to require any 
national securities

[[Page 5601]]

exchange, national securities association, alternative trading system, 
exchange market maker, over-the-counter market maker and any other 
broker-dealer that executes orders internally by trading as principal 
or crossing orders as agent, to establish, maintain, and enforce 
policies and procedures reasonably designed to prevent the execution of 
a transaction in its market at a price that is inferior to a bid or 
offer displayed in another market at the time of execution (a ``trade-
though''), absent an applicable exception and, if relying on an 
exception, that are reasonably designed to assure compliance with the 
terms of the exception. Without this collection of information, 
respondents would not have a means to enforce compliance with the 
Commission's intention to prevent trade-throughs pursuant to the rule.
    There are approximately 788 respondents\1\ per year that will 
require an aggregate total of 36,540 hours to comply with this rule.\2\ 
It is anticipated that each respondent will continue to expend 
approximately 60 hours annually: Two hours per month of internal legal 
time and three hours per month of internal compliance time to ensure 
that its written policies and procedures are up-to-date and remain in 
compliance with Rule 611. The estimated cost for an in-house attorney 
is $295 per hour and the estimated cost for an assistant compliance 
director in the securities industry is $301 per hour. Therefore the 
estimated total cost of compliance for the annual hour burden is as 
follows: [(2 legal hours x 12 months x $295) x 788] + [(3 compliance 
hours x 12 months x $301) x 788] = $14,117,808.\3\ There are no longer 
start-up costs associated with Rule 611.
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    \1\ This estimate includes nine national securities exchanges 
and one national securities association that trade NMS stocks. The 
estimate also includes the approximately 731 firms that were 
registered equity market makers or specialists at year-end 2006, as 
well as automated trading systems that operate trading systems that 
trade NMS stocks.
    \2\ The one-time hour burden associated with developing the 
required policies and procedures is no longer applicable.
    \3\ The total cost of compliance for the annual hour burden has 
been revised to reflect updated estimated cost figures for an in-
house attorney and an assistant compliance director. These figures 
are from SIFMA's Management & Professional Earnings in the 
Securities Industry 2007, adjusted by the SEC staff for an 1800 hour 
work year and multiplied by 5.35 to account for bonuses, firm size, 
employee benefits and overhead. See Securities Exchange Act Release 
No. 50870 (Dec. 16, 2004), 69 FR 77424 (Dec. 27, 2004) at notes 427, 
428 and accompanying text.
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    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 to 
be 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, Virginia 22312 or send 
an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 
60 days of this notice.

    Dated: January 23, 2008.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-1617 Filed 1-29-08; 8:45 am]

BILLING CODE 8011-01-P
