Supporting_Statement_6a-3_(3)[1]

SUPPORTING STATEMENT
for the Paperwork Reduction Act Information Collection Submission for
“Rule 6a-3”
A.

JUSTIFICATION
1.

Necessity for Information Collection

The Securities Exchange Act of 1934 ("Exchange Act") provides a framework for
self-regulation under which various entities involved in the securities business, including
national securities exchanges, have primary responsibility for regulating their members or
participants. The role of the Securities and Exchange Commission ("SEC") in this
framework is primarily one of oversight: the Exchange Act charges the SEC with
supervising the national securities exchanges and assuring that each complies with and
advances the policies of the Exchange Act.
Section 6 of the Exchange Act 1 sets out a framework for the registration and
regulation of national securities exchanges. Under Rule 6a-3, 2 one of the rules that
implements Section 6, a national securities exchange (or an exchange exempted from
registration as a national securities exchange based on limited volume) must provide
certain supplemental information to the SEC, including any material (including notices,
circulars, bulletins, lists, and periodicals) issued or made generally available to members
of, or participants or subscribers to, the exchange. Rule 6a-3 also requires the exchanges
to file monthly reports that set forth the volume and aggregate dollar amount of securities
sold on the exchange each month. Only certain kinds of new exchanges registered under
the Exchange Act will not be subject to the collection of information required by
Rule 6a-3.
2.

Purpose and Use of the Information Collection

The information filed with the SEC pursuant to Rule 6a-3 by a registered or exempt
exchange is designed to enable the SEC to carry out its statutorily mandated oversight
functions and to assure that registered or exempt exchanges continue to be in compliance
with the Exchange Act. Without this information, the SEC would be less able to ensure that
registered and exempt exchanges are continuing to act in a manner consistent with the
Exchange Act.
3.

Consideration Given to Information Technology

Rule 6a-3 permits respondents to comply by making certain information available on
the Internet and notifying the Commission of its location. The Internet has developed the
potential to ease compliance burdens for respondents and will increase the speed, accuracy
and availability of information, generating benefits to investors and financial markets. All
1

15 U.S.C. 78f.

2

17 CFR 240.6a-3.

registered and exempt exchanges currently maintain some presence on the Internet and
make information available to interested parties.
4.

Duplication

The SEC believes that Rule 6a-3 does not impose any duplicative reporting
requirements. Respondents are able to avoid duplicative reporting by informing the SEC
where certain responsive information may be found on the Internet. In addition, the prior
amendments to Rule 6a-3 were prompted by a desire not to impose unnecessary reporting
requirements.
5.

Effect on Small Entities

No small businesses are involved in the procedures of data compilation and filing.
6.

Consequences of Not Conducting Collection

It is important to the oversight abilities of the Commission for the information
received pursuant to Rule 6a-3 to be as current as possible. If the information were filed less
frequently, the Commission would not have the information on registered and exempt
exchange activities that is necessary to comply with its statutory obligations.
7.

Inconsistencies with Guidelines in 5 CFR 1320.5(d)(2)

There are no special circumstances. This collection is consistent with the
guidelines in 5 CFR 1320.5(d)(2).
8.

Consultations Outside the Agency

The required Federal Register notice with a 60-day comment period soliciting
comments on this collection of information was published. No public comments were
received.
9.

Payment or Gift

The respondents receive no payments or gifts.

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10.

Confidentiality

Not applicable. Any collection of information pursuant to Rule 6a-3 would not be
confidential and would be publicly available from the Commission upon request.
11.

Sensitive Questions

Not applicable. No issues of a sensitive nature are involved.
12.

Burden of Information Collection

The SEC estimates that the preparation and filing of supplemental information and
monthly reports pursuant to Rule 6a-3 generally involves photocopying existing documents
and will usually take less than one-half hour per response. The SEC estimates that each
exchange makes approximately 25 such filings on an annual basis. The SEC estimates that
the average cost per response is approximately $52.50. These figures were derived in the
following manner:
0.5 hours of clerical work at $95/hr 3 =
miscellaneous clerical expenses =

$47.50
$ 5.00
$52.50

Currently, 19 respondents (seventeen national securities exchanges and two exempt
exchanges) are subject to the collection of information requirements of Rule 6a-3. The SEC
estimates that the total burden for all respondents will be 237.5 hours (25 filings/respondent
per year x 0.5 hours/response x 19 respondents) and $24,937.50 ($52.50/response x 25
responses/respondent per year x 19 respondents) per year.
13.

Costs to Respondents

The SEC does not anticipate that respondents would have to incur any capital or
start-up costs, nor any additional operational or maintenance costs (other than as provided in
Item 12), to comply with the collection of information requirements imposed by Rule 6a-3.
14.

Costs to Federal Government

The SEC estimates that it incurs costs of approximately $4000 annually to review
the supplemental information and monthly reports submitted by the exchanges pursuant to
Rule 6a-3. This amount was based on our computation of the value of staff time devoted to
reviewing filings on a regular basis and the related overhead value at 35 percent of the value
of staff time. The Commission estimates overhead costs (printing, supplies, copying, and
3

Figure for a Paralegal is from SIFMA’s Office Salaries in the Securities Industry
2011 modified by Commission staff to account for an 1800-hour work-year and
multiplied by 2.93 to account for bonuses, firm size, employee benefits, and
overhead.

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postage) to be approximately 35 percent of the value of labor costs. These estimates have
been computed based on the GSA Guide to Estimating Reporting Costs (1973).
15.

Changes in Burden

The estimated changes in burden have been adjusted to reflect the fact that, since
the last time the SEC sought OMB approval for the collection of information pursuant to
Rule 6a-3, the number of registered national securities exchanges has increased from
thirteen to seventeen. Accordingly, the number of respondents has increased from fifteen
to nineteen. Moreover, the estimates reflect an increase in salary data that includes
overhead costs.
16.

Information Collection Planned for Statistical Purposes

Not applicable. The information collection is not used for statistical purposes.
17.

Approval to Omit OMB Expiration Date

The Commission is not seeking approval to omit the expiration date.
18.

Exceptions to Certification for Paperwork Reduction Act Submissions

This collection complies with the requirements in 5 CFR 1320.9.
B.

COLLECTION OF INFORMATION EMPLOYING STATISTICAL
METHODS
This collection does not involve statistical methods.

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