
[Federal Register: June 9, 2010 (Volume 75, Number 110)]
[Notices]               
[Page 32824]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jn10-114]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Submission for OMB Review; 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) has submitted to the Office of Management and Budget a 
request for approval of extension of the previously approved 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.)
    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 a 
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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid control number.
    Comments should be directed to: (i) Desk Officer for the Securities 
and Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503 or send an e-mail to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Charles Boucher 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 to OMB within 30 days of 
this notice.

    Dated: June 2, 2010.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-13834 Filed 6-8-10; 8:45 am]
BILLING CODE 8010-01-P

