
[Federal Register Volume 78, Number 77 (Monday, April 22, 2013)]
[Notices]
[Page 23791]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09324]


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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 606 of Regulation NMS.
    SEC File No. 270-489, OMB Control No. 3235-0541.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and 
Exchange Commission (``Commission'') has submitted to the office of 
Management and Budget (``OMB'') a request for approval of extension of 
the previously approved collection of information provided for in Rule 
606 of Regulation NMS (``Rule 606'') (17 CFR 242.606) under the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et. seq.).
    Rule 606 (formerly known as Rule 11Ac1-6) requires broker-dealers 
to prepare and disseminate quarterly order routing reports. Much of the 
information needed to generate these reports already should be 
collected by broker-dealers in connection with their periodic 
evaluations of their order routing practices. Broker-dealers must 
conduct such evaluations to fulfill the duty of best execution that 
they owe their customers.
    The collection of information obligations of Rule 606 apply to 
broker-dealers that route non-directed customer orders in covered 
securities. The Commission estimates that out of the currently 5178 
broker-dealers that are subject to the collection of information 
obligations of Rule 606, clearing brokers bear a substantial portion of 
the burden of complying with the reporting and recordkeeping 
requirements of Rule 606 on behalf of small to mid-sized introducing 
firms. There currently are approximately 527 clearing brokers. In 
addition, there are approximately 2426 introducing brokers that receive 
funds or securities from their customers. Because at least some of 
these firms also may have greater involvement in determining where 
customer orders are routed for execution, they have been included, 
along with clearing brokers, in estimating the total burden of Rule 
606.
    The Commission staff estimates that each firm significantly 
involved in order routing practices incurs an average burden of 40 
hours to prepare and disseminate a quarterly report required by Rule 
606, or a burden of 160 hours per year. With an estimated 2953 \1\ 
broker-dealers significantly involved in order routing practices, the 
total industry-wide burden per year to comply with the quarterly 
reporting requirement in Rule 606 is estimated to be 472,480 hours (160 
x 2953).
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    \1\ 527 clearing brokers + 2426 introducing brokers = 2953.
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    Rule 606 also requires broker-dealers to respond to individual 
customer requests for information on orders handled by the broker-
dealer for that customer. Clearing brokers generally bear the burden of 
responding to these requests. The Commission staff estimates that an 
average clearing broker incurs an annual burden of 400 hours (2000 
responses x 0.2 hours/response) to prepare, disseminate, and retain 
responses to customers required by Rule 606. With an estimated 527 
clearing brokers subject to Rule 606, the total industry-wide burden 
per year to comply with the customer response requirement in Rule 606 
is estimated to be 210,800 hours (527 x 400).
    The collection of information obligations imposed by Rule 606 are 
mandatory. The responses will be available to the public and will not 
be kept confidential.
    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 OMB control number.
    The public may view background documentation for this information 
collection at the following Web site, www.reginfo.gov. 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 by sending an email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 
6432 General Green Way, Alexandria, VA 22312 or send an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of 
this notice.

    Dated: April 16, 2013.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-09324 Filed 4-19-13; 8:45 am]
BILLING CODE 8011-01-P


