Document ID: SEC-2019-0883-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2019-06-20T04:00Z

[Federal Register Volume 84, Number 119 (Thursday, June 20, 2019)]
[Notices]
[Pages 28878-28879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13056]

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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 302, SEC File No. 270-453, OMB Control No. 3235-0510

    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 302 (17 CFR 
242.302) of Regulation ATS (17 CFR 242.300 et seq.) under the 
Securities and Exchange Act of 1934 (``Act'') (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.
    Regulation ATS sets forth a regulatory regime for ``alternative 
trading systems'' (``ATSs''). An entity that meets the definition of an 
exchange must register, pursuant to Section 5 of the Exchange Act, as a 
national securities exchange under Section 6 of the Exchange Act \1\ or 
operate pursuant to an appropriate exemption.\2\ One of the available 
exemptions is for ATSs.\3\ Exchange Act Rule 3a1-1(a)(2) exempts from 
the definition of ``exchange'' under Section 3(a)(1) an organization, 
association, or group of persons that complies with Regulation ATS.\4\ 
Regulation ATS requires an ATS to, among other things, register as a 
broker-dealer with the Securities and Exchange Commission (``SEC''), 
file a Form ATS with the Commission to notice its operations, and 
establish written safeguards and procedures to protect subscribers' 
confidential trading information. An ATS that complies with Regulation 
ATS and operates pursuant to the Rule 3a1-1(a)(2) exemption would not 
be required by Section 5 to register as a national securities exchange.
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    \1\ See 15 U.S.C. 78e and 78f. A ``national securities 
exchange'' is an exchange registered as such under Section 6 of the 
Exchange Act.
    \2\ 15 U.S.C. 78a et seq.
    \3\ Rule 300(a) of Regulation ATS provides that an ATS is ``any 
organization, association, person, group of persons, or system: (1) 
[t]hat constitutes, maintains, or provides a market place or 
facilities for bringing together purchasers and sellers of 
securities or for otherwise performing with respect to securities 
the functions commonly performed by a stock exchange within the 
meaning of [Exchange Act Rule 3b-16]; and (2) [t]hat does not: (i) 
[s]et rules governing the conduct of subscribers other than the 
conduct of subscribers' trading on such [ATS]; or (ii) [d]iscipline 
subscribers other than by exclusion from trading.''
    \4\ See 17 CFR 240.3a1-1(a)(2).
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    Rule 302 of Regulation ATS (17 CFR 242.302) describes the 
recordkeeping requirements for ATSs. Under Rule 302,

[[Page 28879]]

ATSs are required to, among other things, make a record of subscribers 
to the ATS, daily summaries of trading in the ATS, and time-sequenced 
records of order information in the ATS.
    The information required to be collected under Rule 302 should 
increase the abilities of the Commission, state securities regulatory 
authorities, and the self-regulatory organizations to ensure that ATSs 
are in compliance with Regulation ATS as well as other applicable rules 
and regulations. If the information is not collected or collected less 
frequently, the regulators would be limited in their ability to comply 
with their statutory obligations, provide for the protection of 
investors, and promote the maintenance of fair and orderly markets.
    Respondents consist of ATSs that choose to operate pursuant to the 
exemption provided by Regulation ATS from registration as national 
securities exchanges. There are currently 83 respondents. These 
respondents will spend approximately 3,735 hours per year (83 
respondents at 45 burden hours/respondent) to comply with the 
recordkeeping requirements of Rule 302. At an average cost per burden 
hour of $73, the resultant total related internal cost of compliance 
for these respondents is $272,655 per year (3,735 burden hours 
multiplied by $73/hour).
    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 unless it displays a 
currently valid OMB control number.
    Please direct your written comments to: Charles Riddle, Acting 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an 
email to: PRA_Mailbox@sec.gov.

    Dated: June 14, 2019.
Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-13056 Filed 6-19-19; 8:45 am]
 BILLING CODE 8011-01-P