
[Federal Register Volume 78, Number 125 (Friday, June 28, 2013)]
[Notices]
[Page 39023]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15491]


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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.) (``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 
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 
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 required under Rule 10b-10 would be $8,190,000,000.
    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.
    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, 100 
F Street NE., Washington, DC 20549; or send an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of 
this notice.

    Dated: June 24, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-15491 Filed 6-27-13; 8:45 am]
BILLING CODE 8011-01-P


