[Federal Register Volume 85, Number 104 (Friday, May 29, 2020)]
[Notices]
[Pages 32432-32433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11594]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Rule 611, SEC File No. 270-540, OMB Control No. 3235-0600

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the

[[Page 32433]]

Securities and Exchange Commission (``Commission'') is soliciting 
comments on the existing collection of information provided for in Rule 
611 (17 CFR 242.611) under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.) (``Exchange Act''). The Commission plans to submit 
this existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    On June 9, 2005, effective August 29, 2005 (see 70 FR 37496, June 
29, 2005), the Commission adopted Rule 611 of Regulation NMS under the 
Exchange Act to require any national securities exchange, national 
securities association, alternative trading system, exchange market 
maker, over-the-counter market maker, and any other broker-dealer that 
executes orders internally by trading as principal or crossing orders 
as agent, to establish, maintain, and enforce written policies and 
procedures reasonably designed to prevent the execution of a 
transaction in its market at a price that is inferior to a bid or offer 
displayed in another market at the time of execution (a ``trade-
though''), absent an applicable exception and, if relying on an 
exception, that are reasonably designed to assure compliance with the 
terms of the exception. Without this collection of information, 
respondents would not have a means to enforce compliance with the 
Commission's intention to prevent trade-throughs pursuant to the rule.
    There are approximately 366 respondents \1\ per year that will 
require an aggregate total of approximately 21,960 hours to comply with 
this Rule. It is anticipated that each respondent will continue to 
expend approximately 60 hours annually: Two hours per month of internal 
legal time and three hours per month of internal compliance time to 
ensure that its written policies and procedures are up-to-date and 
remain in compliance with Rule 611. The estimated cost for an in-house 
attorney is $396 per hour and the estimated cost for an assistant 
compliance director in the securities industry is $349 per hour. 
Therefore the estimated total internal cost of compliance for the 
annual hour burden is as follows: [(2 legal hours x 12 months x $396) x 
366] + [(3 compliance hours x 12 months x $349) x 366] = $8,076,888.\2\
---------------------------------------------------------------------------

    \1\ This estimate includes 17 national securities exchanges that 
are equity securities exchanges. The estimate also includes an 
estimated 318 firms that are over-the-counter market makers or 
exchange market makers, as well as an estimated 31 alternative 
trading systems that trade NMS stocks.
    \2\ The total cost of compliance for the annual hour burden has 
been revised to reflect updated estimated cost figures for an in-
house attorney and an assistant compliance director. These figures 
are from SIFMA's Management & Professional Earnings in the 
Securities Industry 2017, modified by Commission staff to account 
for an 1800-hour work-year and multiplied by 5.35 to account for 
bonuses, firm size, employee benefits, and overhead.
---------------------------------------------------------------------------

    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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o 
Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or send an email 
to: PRA_Mailbox@sec.gov.

    Dated: May 26, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-11594 Filed 5-28-20; 8:45 am]
BILLING CODE 8011-01-P


