Rule 19b-5 permits a self-regulatory organization (SRO) to operate a pilot trading system, under certain conditions, for two years without submitting a proposed rule change to the Commission pursuant to Rule 19b-4. SROs availing themselves of Rule 19b-5 are required to file a Form PILOT at least 20 days before com- mencing operation of the system. SROs are also required to file notices of material systems changes and quarterly activity re- ports on Form PILOT.
US Code:
15 USC 78s(b)
Name of Law: Securities Exchange Act of 1934
The estimates of burden under Rule 19b-5 have decreased since the prior submission. In the prior submission, the Commission anticipated receiving as many as six proposals per year from six respondents to operate pilot trading systems filed as initial reports on Form PILOT each year. The Commission estimated that each respondent would file four quarterly reports on Form PILOT per year, for a total of 24 quarterly reports from all respondents, and 2 notices of material systems changes on Form PILOT per year, for a total of 12 notices of material systems changes from all respondents.
Since the prior submission, the Commission has received no initial reports on Form PILOT. The Commission has received four Form PILOT submissions since Rule 19b-5 was adopted and the Form PILOT process was created in 1998. Additionally, no pilot trading system is currently operating under the Rule 19b-5 exemption. Based on these facts and circumstances, at this time the Commission anticipates receiving up to three proposals to operate pilot trading systems filed as initial reports on Form PILOT each year. The Commission continues to estimate that each respondent filing an initial proposal would file four quarterly reports on Form PILOT per year, for a total of 12 quarterly reports from all respondents, and 2 notices of material systems changes on Form PILOT per year, for a total of 6 notices of material systems changes from all respondents. Based on the CommissionÂs experience with Rule 19b-5 since its adoption, the Commission now believes that it would be reasonable to make a much lower estimate of the number of pilot trading systems that will be established by SROs over the next three-year period pursuant to Rule 19b-5. Although the Commission anticipates fewer initial filings on Form PILOT, and thus fewer overall quarterly filings and notices of material systems changes, the Commission estimates the time required to complete an initial form, quarterly report or notice of material system change to be the same. Therefore, the estimated aggregate reporting burden to all respondents in a year under Rule 19b-5 has decreased from 252 hours to 126 hours. Although the total estimated annual hour compliance burden has decreased, the estimated related cost associated with such burden has increased from $13,030 to $38,775 due to increases in the hourly estimated rates for professional legal work and clerical work
$6,663
No
No
No
Uncollected
No
Uncollected
Sarah Schandler 202 551-7145
Reginfo record details
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:
(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;
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.
Form SEC 2552 Rule 19b-5 Under the Securities Exchange Act of 1934; Pilot Trading System Rule Filing Requirements (Initial Reports)
2010 Rule 19b-5 Justification.doc
Rule 19b-5 Under the Securities Exchange Act of 1934; Pilot Trading System Rule Filing Requirements (Initial Reports)