View Information Collection Request (ICR) Package

OMB Control No: 3235-0444	ICR Reference No: 201906-3235-016
Status: Historical Active	Previous ICR Reference No: 201602-3235-012
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: Extension without change of a currently approved collection	Common Form ICR: No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 04/22/2020
Retrieve Notice of Action (NOA)	Date Received in OIRA: 10/10/2019
Terms of Clearance: Supporting Statement responses 3 and 5 clarified during review.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2023	36 Months From Approved	04/30/2020
Responses	37,687,249,686	0	33,203,812,416
Time Burden (Hours)	157,030,207	0	138,349,218
Cost Burden (Dollars)	10,288,619,164	0	8,417,166,447

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:
	84 FR 34979	07/19/2019
30-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 51696	09/30/2019
Did the Agency receive public comments on this ICR? No

ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to Adjustment in Estimate
Annual Number of Responses	37,687,249,686	33,203,812,416	4,483,437,270
Annual Time Burden (Hours)	157,030,207	138,349,218	18,680,989
Annual Cost Burden (Dollars)	10,288,619,164	8,417,166,447	1,871,452,717

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The estimated total annual hour burden increased by approximately 18,680,989 hours because, while the estimated time per response remained 30 seconds (or 0.5 minutes) per response, and the number of respondents decreased from approximately 4,138 to approximately 3,750, the estimated total number of responses per year increased by approximately 2,241,718,635. The estimated total annual cost to respondents increased by approximately $1,871,452,717 because the estimated average cost of mailing a confirmation increasing from 57 cents to 63 cents, the estimated number of paper confirmations mailed to customers each year increased from 10,791,239,035 to 12,248,356,148,and the estimated number of electronic confirmations sent to customers each year increased by 784,601,522.

Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination. No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination. 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: Brice Prince 202 551-5595

View ICR - OIRA Conclusion