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Please note that the OMB number and expiration date may not have been determined when this Information Collection Request and associated Information Collection forms were submitted to OMB. The approved OMB number and expiration date may be found by clicking on the Notice of Action link below.
View ICR - OIRA Conclusion
OMB Control No:
3235-0444
ICR Reference No:
201009-3235-001
Status:
Historical Active
Previous ICR Reference No:
201005-3235-008
Agency/Subagency:
SEC
Agency Tracking No:
TM-270-389
Title:
Rule 10b-10 Confirmation of Securities Transactions (17 C.F.R. 240.10b-10)
Type of Information Collection:
No material or nonsubstantive change to a currently approved collection
Common Form ICR:
No
Type of Review Request:
Regular
OIRA Conclusion Action:
Approved with change
Conclusion Date:
12/30/2012
Retrieve Notice of Action (NOA)
Date Received in OIRA:
12/21/2012
Terms of Clearance:
Burden change revised due to agency estimate. Please note, in the future this change should be submitted as a revision.
Inventory as of this Action
Requested
Previously Approved
Expiration Date
07/31/2013
07/31/2013
07/31/2013
Responses
16,800,000,005
0
16,800,000,000
Time Burden (Hours)
140,000,000
0
280,000,000
Cost Burden (Dollars)
8,190,000,004
0
14,280,000,000
Abstract:
Rule 10b-10 under the Securities Exchange Act of 1934 ("Exchange Act") requires broker-dealers to disclose basic trade information to customers regarding their securities transactions. The information required by Rule 10b-10 includes: the date and time of the transaction, the identity and number of shares bought or sold, and the trading capacity of the broker-dealer. In addition, depending on the trading capacity of the broker-dealer, the Rule requires the disclosure of commissions and, under specified circumstances, mark-up and mark-down information. For transactions in debt securities (other than U.S. savings bonds and municipal securities) the Rule requires the disclosure of redemption and yield information. For transactions in securities futures products in a futures account, the Rule permits alternative information disclosure requirements. This alternative information includes, the date the transaction was executed; the identity and number of shares bought or sold; the price, the delivery month, and the exchange on which the transaction was executed; the source and amount of broker remuneration; whether the broker received payment for order flow; and, the fact that other specified information about the execution of the transaction will be available upon written request. Rule 10b-10 also requires broker-dealers to inform their customers if they are not members of the Securities Investor Protection Corporation ("SIPC"). The purpose of this disclosure is to ensure that customers are not led to believe that their accounts are subject to SIPC protection when they are not. In addition, the Rule requires broker-dealers to state on confirmations whether they receive payment for order flow. The confirmation has become a customary tool in the industry, and it serves several functions: firms use it as a billing statement; it serves as a customer invoice; it informs investors of the details of a transaction allowing the customer to check for errors or misunderstandings; it provides consumer information, allowing investors to evaluate the cost and quality of the services provided by broker-dealers; it discloses possible conflict of interest that may arise between the investor and broker-dealer; and it safeguards against fraud, by permitting the customer to detect problems associated with a transaction.
Authorizing Statute(s):
US Code:
15 USC 78a
Name of Law: Securities and Exchange Act of 1934
Citations for New Statutory Requirements:
None
Associated Rulemaking Information
RIN:
Stage of Rulemaking:
Federal Register Citation:
Date:
Not associated with rulemaking
Federal Register Notices & Comments
60-day Notice:
Federal Register Citation:
Citation Date:
75 FR 16527
04/01/2010
30-day Notice:
Federal Register Citation:
Citation Date:
75 FR 32824
06/09/2010
Did the Agency receive public comments on this ICR?
No
Number of Information Collection (IC) in this ICR:
2
IC Title
Form No.
Form Name
Electronic Confirmation of Securities Transactions (17 C.F.R. 240.10b-10)
Paper Confirmation of Securities Transactions (17 C.F.R. 240.10b-10)
ICR Summary of Burden
Total Approved
Previously Approved
Change Due to New Statute
Change Due to Agency Discretion
Change Due to Adjustment in Estimate
Change Due to Potential Violation of the PRA
Annual Number of Responses
16,800,000,005
16,800,000,000
0
0
5
0
Annual Time Burden (Hours)
140,000,000
280,000,000
0
0
-140,000,000
0
Annual Cost Burden (Dollars)
8,190,000,004
14,280,000,000
0
0
-6,089,999,996
0
Burden increases because of Program Change due to Agency Discretion:
Yes
Burden Increase Due to:
Miscellaneous Actions
Burden decreases because of Program Change due to Agency Discretion:
Yes
Burden Reduction Due to:
Using Information Technology
Short Statement:
The Commission is revising this estimate to reflect the most recent information collected from industry participants. The Commission currently estimates that it would take an average of 30 seconds instead of 1 minute to generate and send a confirmation. As a result, the Commission staff estimates that the annual time burden to brokers-dealers to comply with the confirmation delivery requirements of Rule 10b-10 would be 140,000,000 hours.
Annual Cost to Federal Government:
$20,000
Does this IC contain surveys, censuses, or employ statistical methods?
No
Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002?
No
Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]?
No
Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]?
No
Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)?
No
Is this ICR related to the Pandemic Response?
Uncollected
Agency Contact:
Daniel Gien 202 551-5747
Common Form ICR:
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(a) It is necessary for the proper performance of agency functions;
(b) It avoids unnecessary duplication;
(c) It reduces burden on small entities;
(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;
(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;
(f) It indicates the retention periods for recordkeeping requirements;
(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.
(i) It uses effective and efficient statistical survey methodology (if applicable); and
(j) It makes appropriate use of information technology.
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Certification Date:
12/21/2012
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