88842 Federal Register / Vol. 89, No. 217 / Friday, November 8, 2024 / Notices 

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.). The 

Commission plans to submit this 

existing collection of information to the 

Office of Management and Budget 

(‘‘OMB’’) for extension and approval. 

Rule 606 (formerly known as Rule 

11Ac1–6) requires require disclosure by 

broker-dealers of, (1) pursuant to Rule 

606(a)(1), a quarterly aggregated public 

report on the handling of orders in NMS 

stocks that are submitted on a held basis 

and orders in NMS securities that are 

option contracts with a market value 

less than $50,000; (2) pursuant to Rule 

606(b)(1), a report, upon request of a 

customer, on the routing of that 

customer’s orders in NMS stocks that 

are submitted on a held basis; orders in 

NMS stocks that are submitted on a not 

held basis and do not qualify for two de 

minimis exceptions; and orders in NMS 

securities that are option contracts, 

containing certain information on the 

broker-dealer’s routing of such orders 

for that customer for the prior six 

months; and (3) pursuant to Rule 

606(b)(3), a report, upon request of a 

customer that places with the brokerdealer, directly or indirectly, NMS stock 

orders of any size that are submitted on 

a not held basis (subject to two de 

minimis exceptions), containing certain 

information on the broker-dealer’s 

handling of such orders for that 

customer for the prior six months. 

The Commission estimates that out of 

the currently 3,399 broker-dealers that 

are subject to the collection of 

information obligations of Rule 

606(a)(1), 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 179 clearing brokers. In 

addition, there are approximately 61 

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(a)(1). 

As described in more detail, below, 

the total annual time burden associated 

with rule 606 is approximately 183,000 

hours per year and the total annual cost 

burden is approximately $1,300,000 per 

year. 

The Commission staff estimates that 

each firm significantly involved in order 

routing practices incurs an average 

burden of 40 hours to prepare and 

disseminate the quarterly report 

required by Rule 606(a)(1), or a burden 

of 160 hours per year. With an estimated 

240 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 38,400 hours (160 × 240). 

Additionally, for each of the 240 brokerdealers subject to disclosure 

requirements of Rule 606(a)(1), the 

Commission estimates the annual 

burden under Rule 606(a)(1)(iv) to 

monitor payment for order flow and 

profit-sharing relationships and 

potential self-regulatory organization 

rule changes that could impact their 

order routing decisions and incorporate 

any new information into their reports 

to be 10 hours and the annual burden 

for each broker-dealers to describe and 

update any terms of payment for order 

flow arrangements and profit-sharing 

relationships with a Specified Venue 

that may influence their order routing 

decisions to be 15 hours, for a total 

annual burden of 6,000 hours (25 × 240). 

Therefore, the estimated total annual 

burden to comply with Rule 606(a)(1) is 

44,400 hours. 

Clearing brokers generally bear the 

burden of responding to individual 

customer requests under Rule 606(b)(1) 

for order handling information. The 

Commission staff estimates that an 

average clearing broker incurs an annual 

burden of 400 hours (2000 responses × 

0.2 hours/response) to prepare, 

disseminate, and retain responses to 

customers required by Rule 606. With 

an estimated 179 clearing brokers 

subject to Rule 606(b)(1), the total 

industry-wide burden per year to 

comply with the customer response 

requirement in Rule 606 is estimated to 

be 71,600 hours (179 × 400). 

The Commission estimates that 

approximately 200 broker-dealers are 

involved in routing orders subject to the 

disclosure requirements of Rule 

606(b)(3). The Commission believes that 

some such broker-dealers will respond 

to requests for customer-specific reports 

in house, while others will engage a 

third-party service provider to do so. 

The Commission estimates that 

approximately 135 broker-dealers will 

respond in-house to individual 

customer requests for information on 

order handling under Rule 606(b)(3), 

and that for each, the individual annual 

burden will be 400 hours (200 responses 

× 2 hours/response), with a total annual 

burden of 54,000 hours (400 × 135). 

The Commission estimates that 

approximately 65 broker-dealers will 

engage a third party to respond to 

individual customer requests, and that 

for each, the individual annual burden 

will be 200 hours (200 responses × 1 

hour/response), with a total annual 

burden of 13,000 hours (200 × 65). The 

total annual cost burden associated with 

engaging such third parties is 

approximately $1,300,000 (65 × 200 

annual requests × $100 per request to 

engage a third-party service provider). 

Therefore, the estimated total annual 

burden to comply with Rule 606(b)(3) is 

67,000 hours and $1,300,000. 

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 by 

January 7, 2025. 

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: Austin Gerig, Director/Chief Data 

Officer, Securities and Exchange 

Commission, c/o Tanya Ruttenberg, 100 

F Street NE, Washington, DC 20549, or 

send an email to: PRA_Mailbox@

sec.gov. 

Dated: November 4, 2024. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–25924 Filed 11–7–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–098, OMB Control No. 

3235–0081] 

Submission for OMB Review; 

Comment Request; Extension: Rule 

12d2–1 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 217 / Friday, November 8, 2024 / Notices 88843 

1See Securities Exchange Act Release No. 98 

(February 12, 1935). 

2See Securities Exchange Act Release No. 7011 

(February 5, 1963), 28 FR 1506 (February 16, 1963). 

3Rule 12d2–2 prescribes the circumstances under 

which a security may be delisted from an exchange 

and withdrawn from registration under Section 

12(b) of the Act and provides the procedures for 

taking such action. 

4The Exchanges are BOX Exchange LLC, Cboe 

BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe 

C2 Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe 

EDGX Exchange, Inc., Cboe Exchange, Inc., 

Investors Exchange LLC, Long Term Stock 

Exchange, Inc., MEMX, LLC, Miami International 

Securities Exchange, MIAX Emerald, LLC, MIAX 

PEARL, LLC, Nasdaq BX, Inc., Nasdaq GEMX, LLC, 

Nasdaq ISE, LLC, Nasdaq MRX, LLC, Nasdaq PHLX 

LLC, The Nasdaq Stock Market, New York Stock 

Exchange LLC, NYSE Arca, Inc., NYSE Chicago, 

Inc., NYSE American LLC, NYSE National, Inc. 

5 In fact, some exchanges do not file any trading 

suspension reports in a given year. 

6The 658 figure was calculated by averaging the 

numbers for compliance in 2021, 2022 and 2023, 

which are 538, 622 and 814, respectively. 

1 17 CFR 240.15c2–12(b). 

2The term ‘‘Participating Underwriter’’ means 

any broker, dealer, or municipal securities dealer 

that acts as an underwriter in connection with an 

‘‘Offering,’’ i.e., a primary offering of municipal 

securities with an aggregate principal amount of 

$1,000,000 or more. 17 CFR 240.15c2–12(a) 

(defining ‘‘Participating Underwriter’’ and 

‘‘Offering’’). 

3 17 CFR 240.15c2–12(b)(1). 

4 17 CFR 240.15c2–12(b)(2). 

5 17 CFR 240.15c2–12(b)(3). 

(‘‘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 12d2–1 (17 CFR 240.12d2–1), 

under the Securities Exchange Act of 

1934 (15 U.S.C. 78a et seq.) (‘‘Act’’). 

On February 12, 1935, the 

Commission adopted Rule 12d2–1 1

(‘‘Suspension of Trading’’) which sets 

forth the conditions and procedures 

under which a security may be 

suspended from trading under Section 

12(d) of the Act.2 Rule 12d2–1 provides 

the procedures by which a national 

securities exchange may suspend from 

trading a security that is listed and 

registered on the exchange. Under Rule 

12d2–1, an exchange is permitted to 

suspend from trading a listed security in 

accordance with its rules and must 

promptly notify the Commission of any 

such suspension, along with the 

effective date and the reasons for the 

suspension. 

Any such suspension may be 

continued until such time as the 

Commission may determine that the 

suspension is designed to evade the 

provisions of Section 12(d) of the Act 

and Rule 12d2–2 thereunder.3 During 

the continuance of such suspension 

under Rule 12d2–1, the exchange is 

required to notify the Commission 

promptly of any change in the reasons 

for the suspension. Upon the restoration 

to trading of any security suspended 

under Rule 12d2–1, the exchange must 

notify the Commission promptly of the 

effective date of such restoration. 

The trading suspension notices serve 

a number of purposes. First, they inform 

the Commission that an exchange has 

suspended from trading a listed security 

or reintroduced trading in a previously 

suspended security. They also provide 

the Commission with information 

necessary for it to determine that the 

suspension has been accomplished in 

accordance with the rules of the 

exchange, and to verify that the 

exchange has not evaded the 

requirements of Section 12(d) of the Act 

and Rule 12d2–2 thereunder by 

improperly employing a trading 

suspension. Without Rule 12d2–1, the 

Commission would be unable to fully 

implement these statutory 

responsibilities. 

There are 24 national securities 

exchanges 4 that are subject to Rule 

12d2–1. The burden of complying with 

Rule 12d2–1 is not evenly distributed 

among the exchanges, however, since 

there are many more securities listed on 

the New York Stock Exchange, Inc., the 

NASDAQ Stock Exchange, and the 

NYSE American LLC than on the other 

exchanges.5 There are approximately 

658 responses 6 under Rule 12d2–1 for 

the purpose of suspension of trading 

from the national securities exchanges 

each year, and the resultant aggregate 

annual reporting hour burden would be, 

assuming on average one-half reporting 

hour per response, 329 annual burden 

hours for all exchanges. The related 

internal compliance costs associated 

with these burden hours are $79,618 per 

year. 

The collection of information 

obligations imposed by Rule 12d2–1 is 

mandatory. The response 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 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice by December 9, 2024 to (i) 

www.reginfo.gov/public/do/PRAMain or 

MBX.OMB.OIRA.SEC_desk_officer@

omb.eop.gov, and (ii) Austin Gerig, 

Director/Chief Data Officer, Securities 

and Exchange Commission, c/o Tanya 

Ruttenberg, 100 F Street NE, 

Washington, DC 20549, or by sending an 

email to: PRA_Mailbox@sec.gov. 

Dated: November 4, 2024. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–25925 Filed 11–7–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–330, OMB Control No. 

3235–0372] 

Proposed Collection; Comment 

Request; Extension: Municipal 

Securities Disclosure (Exchange Act 

Rule 15c2–12) 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the existing collection of information 

provided for in Rule 15c2–12— 

Municipal Securities Disclosure (17 CFR 

240.15c2–12) 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. 

In connection with offerings of 

municipal securities, paragraph (b) of 

Rule 15c2–12 1 requires Participating 

Underwriters: 2 (1) to obtain and review 

an official statement ‘‘deemed final’’ by 

an issuer of the securities, except for the 

omission of specified information, prior 

to making a bid, purchase, offer, or sale 

of municipal securities; 3 (2) in noncompetitively bid offerings, to send, 

upon request, a copy of the most recent 

preliminary official statement (if one 

exists) to potential customers; 4 (3) to 

contract with the issuer to receive, 

within a specified time, sufficient 

copies of the final official statement to 

comply with Rule 15c2–12’s delivery 

requirement and the rules of the 

Municipal Securities Rulemaking Board 

(‘‘MSRB’’); 5 (4) to send, upon request, a 


ddrumheller on DSK120RN23PROD with NOTICES1