Document ID: SEC-2021-0926-0002
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2021-09-22T04:00Z

[Federal Register Volume 86, Number 181 (Wednesday, September 22, 2021)]
[Notices]
[Pages 52704-52705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20442]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-450, OMB Control No. 3235-0505]

Submission for OMB Review; 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 303 of Regulation ATS

    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'') 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 303 
of Regulation ATS (17 CFR 242.303) under the Securities Exchange Act of 
1934 (15 U.S.C. 78a et seq.) (``Exchange Act'').
    Regulation ATS sets forth a regulatory regime for ``alternative 
trading systems'' (``ATSs''), which are entities that carry out 
exchange functions but are not required to register as national 
securities exchanges under the Act. In lieu of exchange registration, 
an ATS can instead opt to register with the Commission as a broker-
dealer and, as a condition to not having to register as an exchange, 
must instead comply with Regulation ATS. Rule 303 of Regulation ATS (17 
CFR 242.303) describes the record preservation requirements for ATSs. 
Rule 303 also describes how such

[[Page 52705]]

records must be maintained, what entities may perform this function, 
and how long records must be preserved. Under Rule 303, ATSs are 
required to preserve all records made pursuant to Rule 302, which 
includes information relating to subscribers, trading summaries, and 
time-sequenced order information. Rule 303 also requires ATSs to 
preserve any notices provided to subscribers, including, but not 
limited to, notices regarding the ATSs operations and subscriber 
access. For an ATS subject to the fair access requirements described in 
Rule 301(b)(5)(ii) of Regulation ATS, Rule 303 further requires the ATS 
to preserve at least one copy of its standards for access to trading, 
all documents relevant to the ATS's decision to grant, deny, or limit 
access to any person, and all other documents made or received by the 
ATS in the course of complying with Rule 301(b)(5) of Regulation ATS. 
For an ATS subject to the capacity, integrity, and security 
requirements for automated systems under Rule 301(b)(6) of Regulation 
ATS, Rule 303 requires an ATS to preserve all documents made or 
received by the ATS related to its compliance, including all 
correspondence, memoranda, papers, books, notices, accounts, reports, 
test scripts, test results and other similar records. Rule 303(a)(1)(v) 
of Regulation ATS requires every ATS to preserve the written safeguards 
and written procedures mandated under Rule 301(b)(10). As provided in 
Rule 303(a)(1), ATSs are required to keep all of these records, as 
applicable, for a period of at least three years, the first two in an 
easily accessible place. In addition, Rule 303 requires ATSs to 
preserve records of partnership articles, articles of incorporation or 
charter, minute books, stock certificate books, copies of reports filed 
pursuant to Rule 301(b)(2) and Rule 304, and records made pursuant to 
Rule 301(b)(5) for the life of the ATS. ATSs that trade both NMS Stock 
and securities other than NMS Stock are required to file, and also 
preserve under Rule 303, both Form ATS and related amendments and Form 
ATS-N and related amendments.
    The information contained in the records required to be preserved 
by Rule 303 will be used by examiners and other representatives of the 
Commission, state securities regulatory authorities, and the self-
regulatory organizations (``SROs'') to ensure that ATSs are in 
compliance with Regulation ATS as well as other applicable rules and 
regulations. Without the data required by the Rule, 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 register as broker-
dealers and comply with the requirements of Regulation ATS. There are 
currently 94 respondents. The Commission believes that the average 
ongoing hourly burden for a respondent to comply with the baseline 
record preservation requirements under Rule 303 is approximately 15 
hours per year. We thus estimate that the average aggregate ongoing 
burden to comply with the baseline Rule 303 record preservation 
requirements is approximately 1,410 hours per year. (94 ATSs x 15 hours 
= 1,410 hours) In addition, there are currently two ATSs that transact 
in both NMS stock and non-NMS stock on their ATSs. These two ATSs have 
a slightly greater burden because they have to keep both Form ATS and 
Form ATS-N and related documents (e.g., amendments). For these two 
ATSs, we estimate that the ongoing burden above the current baseline 
estimate for preserving records will be approximately 1 hour annually 
per ATS for a total annual burden above the current baseline burden 
estimate of 2 hours for all respondents. Thus, the estimated average 
annual aggregate burden for alternative trading systems to comply with 
Rule 303 is approximately 1,412 hours (1,410 hours + 2 hours).
    Compliance with Rule 303 is mandatory. The information required by 
Rule 303 is available only for the examination of the Commission staff, 
state securities authorities and the SROs. Subject to the provisions of 
the Freedom of Information Act, 5 U.S.C. 522 (``FOIA''), and the 
Commission's rules thereunder (17 CFR 200.80(b)(4)(iii)), the 
Commission does not generally publish or make available information 
contained in any reports, summaries, analyses, letters, or memoranda 
arising out of, in anticipation of, or in connection with an 
examination or inspection of the books and records of any person or any 
other investigation.
    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 
to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by 
sending an email to: PRA_Mailbox@sec.gov.

    Dated: September 16, 2021.
J. Matthew Delesdernier,
Assistant Secretary.
[FR Doc. 2021-20442 Filed 9-21-21; 8:45 am]
BILLING CODE 8011-01-P