
[Federal Register: April 1, 2010 (Volume 75, Number 62)]
[Notices]               
[Page 16527-16528]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01ap10-125]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Collection; Comment Request

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

Extension:
    Rule 10b-10, SEC File No. 270-389, OMB Control No. 3235-0444.

    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 existing collection of 
information provided for in Rule 10b-10 (17 CFR 240.10b-10) under the 
Securities and Exchange Act of 1934 (15 U.S.C. 78a et seq.). The 
Commission plans to submit this existing collection of information to 
the Office of Management and Budget for extension and approval.
    Rule 10b-10 requires broker-dealers to convey basic trade 
information to customers regarding their securities transactions. This 
information includes: The date and time of the transaction, the 
identity and number of shares bought or sold, and the trading capacity 
of the broker-dealer. Depending on the trading capacity of the broker-
dealer, Rule 10b-10 requires the disclosure of commissions as well as 
mark-up and mark-down information. For transactions in debt securities, 
Rule 10b-10 requires the disclosure of redemption and yield 
information. Rule 10b-10 potentially applies to all of the 
approximately 5,178 firms registered with the Commission that effect 
transactions on behalf of customers.
    Based on information provided by registered broker-dealers to the 
Commission in FOCUS Reports, the Commission staff estimates that on 
average, registered broker-dealers process approximately 1.4 billion 
order tickets per month for transactions on behalf of customers. Each 
order ticket representing a transaction effected on behalf of a 
customer results in one confirmation. Therefore, the Commission staff 
estimates that approximately 16.8 billion confirmations are sent to 
customers annually. The confirmations required by Rule 10b-10 are 
generally processed through automated systems. It takes approximately 1 
minute to generate and send a confirmation. Accordingly, the Commission 
estimates that broker-dealers spend 280 million hours per year 
complying with Rule 10b-10.
    The amount of confirmations sent and the cost of sending each 
confirmation varies from firm to firm. Smaller firms generally send 
fewer confirmations than larger firms because they effect fewer 
transactions. The Commission staff estimates the costs of producing and 
sending a paper confirmation, including postage to be approximately 96 
cents. The Commission staff also estimates that the cost of producing 
and sending a wholly electronic confirmation is approximately 52 cents. 
Based on informal discussions with industry participants as well as no-
action positions taken in this area, the staff estimates that broker-
dealers used electronic confirmations for approximately 25 percent of 
transactions. Based on these calculations, Commission staff estimates 
that 12,600,000,000 paper confirmations are mailed each year at a cost 
of $12,096,000,000. Commission staff also estimates that 4,200,000,000 
wholly electronic confirmations are sent each year at a cost of 
$2,184,000,000. Accordingly, Commission staff estimates that total 
annual cost associated with generating and delivering to investors the 
information required under Rule 10b-10 would be $14,280,000,000.

[[Page 16528]]

    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.
    Please direct your comments to: Charles Boucher, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Shirley 
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send 
e-mail to: PRA_Mailbox@sec.gov.

    Dated: March 25, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-7359 Filed 3-31-10; 8:45 am]
BILLING CODE 8011-01-P

