Document ID: SEC-2016-0811-0002
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2019-07-19T04:00Z

[Federal Register Volume 84, Number 139 (Friday, July 19, 2019)]
[Notices]
[Pages 34978-34979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15344]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-389, OMB Control No. 3235-0444]

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 10b-10

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and 
Exchange Commission (``Commission'') is soliciting comments on the 
existing collection of information provided for in Rule 10b-10 (17 CFR 
240.10b-10) under the Securities and 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 10b-10 requires broker-dealers to convey specified information 
to customers regarding their securities transactions. This information 
includes the date and time of the transaction, the identity and number 
of shares bought or sold, and whether the broker-dealer acts as agent 
for the customer or as principal for its own account. Depending on 
whether the broker-dealer acts as agent or principal, Rule 10b-10 
requires the disclosure of commissions, as well as mark-up and mark-
down information. For transactions in debt securities, Rule 10b-10 
requires the disclosure of redemption and yield information. Rule 10b-
10 potentially applies to all of the approximately 3,750 firms 
registered with the Commission that effect transactions for or with 
customers.
    Based on information provided by registered broker-dealers to the 
Commission in FOCUS Reports, the Commission staff estimates that on 
average, registered broker-dealers process approximately 18,843,624,843 
order tickets per year for transactions for or with customers. Each 
order ticket representing a transaction effected for or with a customer 
generally results in one confirmation. Therefore, the Commission staff 
estimates that approximately 18,843,624,843 confirmations are sent to 
customers annually. The confirmations required by Rule 10b-10 are 
generally processed through automated systems. It takes approximately 
30 seconds to generate and send a confirmation. Accordingly, the 
Commission staff estimates that broker-dealers spend approximately 
157,030,207 hours per year complying with Rule 10b-10 (18,843,624,843 x 
.5 / 60).
    The amount of confirmations sent and the cost of sending each 
confirmation varies from firm to firm. Smaller firms generally send 
fewer confirmations than larger firms because they effect fewer 
transactions. The Commission staff estimates the costs of producing and 
sending a paper confirmation, including postage, to be approximately 63 
cents. The Commission staff also estimates

[[Page 34979]]

that the cost of producing and sending a wholly electronic confirmation 
is approximately 39 cents. Based on informal discussions with industry 
participants, as well as representations made in requests for exemptive 
and no-action letters relating to Rule 10b-10, the staff estimates that 
broker-dealers used electronic confirmations for approximately 35 
percent of transactions. Based on these calculations, Commission staff 
estimates that 12,248,356,148 paper confirmations are mailed each year 
at a cost of $7,716,464,373. Commission staff also estimates that 
6,595,268,695 wholly electronic confirmations are sent each year at a 
cost of $2,572,154,791. Accordingly, Commission staff estimates that 
the total annual cost associated with generating and delivering to 
investors the information required under Rule 10b-10 would be 
$10,288,619,164.
    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 subject to the PRA 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: July 15, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15344 Filed 7-18-19; 8:45 am]
 BILLING CODE 8011-01-P