Document ID: SEC-2008-0544-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2008-04-09T04:00Z

[Federal Register: April 9, 2008 (Volume 73, Number 69)]
[Notices]               
[Page 19269]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ap08-90]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Submission for OMB Review; Comment Request

Upon written request, copies available from: U.S. Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549-0213.

Extension:
    Rule 611, OMB Control No. 3238-0600, SEC File No. 270-540.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget a request for approval of extension of the existing 
collection of information provided for in the following rule: Rule 611 
(17 CFR 242.611).
    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 
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 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 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 788 respondents\1\ per year that will 
require an aggregate total of 47,280 hours to comply with this rule.\2\ 
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 $295 per hour and the estimated cost for an assistant compliance 
director in the securities industry is $301 per hour. Therefore the 
estimated total cost of compliance for the annual hour burden is as 
follows: [(2 legal hours x 12 months x $295) x 788] + [(3 compliance 
hours x 12 months x $301) x 788] = $14,117,808.\3\ There are no longer 
start-up costs associated with Rule 611.
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    \1\ This estimate includes nine national securities exchanges 
and one national securities association that trade NMS stocks. The 
estimate also includes the approximately 731 firms that were 
registered equity market makers or specialists at year-end 2006, as 
well as automated trading systems that operate trading systems that 
trade NMS stocks.
    \2\ Please note that the 60 Day Notice to extend the 
effectiveness of Rule 611 stated the annual hour burden as 36,540, 
which does not reflect the increase in the number of respondents; 
see Securities and Exchange Commission Proposed Collection; Comment 
Request, 73 FR 5600 (January 30, 2008). The one-time hour burden 
associated with developing the required policies and procedures is 
no longer applicable.
    \3\ 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 2007, adjusted by the SEC staff for an 1800 hour 
work year and multiplied by 5.35 to account for bonuses, firm size, 
employee benefits and overhead. See Securities Exchange Act Release 
No. 50870 (Dec. 16, 2004), 69 FR 77424 (Dec. 27, 2004) at notes 427, 
428 and accompanying text.
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    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 control number.
    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 e-mail to: Alexander--
T._Hunt@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Shirley 
Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-
mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 30 
days of this notice.

    Dated: April 2, 2008.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-7397 Filed 4-8-08; 8:45 am]

BILLING CODE 8011-01-P