
[Federal Register Volume 78, Number 78 (Tuesday, April 23, 2013)]
[Notices]
[Pages 23962-23963]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09484]


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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.) (``PRA''), 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 (``OMB'') 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 
30 seconds to generate and send a confirmation. Accordingly, the 
Commission estimates that broker-dealers spend 140 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 54 
cents. The Commission staff also estimates that the cost of producing 
and sending a wholly electronic confirmation is approximately 39 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 35 percent of 
transactions. Based on these calculations, Commission staff estimates 
that 10,920,000,000 paper confirmations are mailed each year at a cost 
of $5,896,800,000. Commission staff also estimates that 5,880,000,000 
wholly electronic confirmations are sent each year at a cost of 
$2,293,200,000. Accordingly, Commission staff estimates that total 
annual cost associated with generating and delivering to investors the 
information

[[Page 23963]]

required under Rule 10b-10 would be $8,190,000,000.
    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 
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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information subject to the PRA unless it 
displays a currently valid OMB control number. Please direct your 
written comments to: Thomas Bayer, Director/Chief Information Officer, 
Securities and Exchange Commission, c/o Remi Pavlik-Simon, 6432 General 
Green Way, Alexandria, Virginia 22312 or send an email to: PRA_Mailbox@sec.gov.

    Dated: April 17, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-09484 Filed 4-22-13; 8:45 am]
BILLING CODE 8011-01-P


