Supporting Statement for Rule 301 (08.01.18)

SUPPORTING STATEMENT
for the Paperwork Reduction Act Information Collection Submission for Regulation of
NMS Stock Alternative Trading Systems – Rule 301
This submission is being made pursuant to the Paperwork Reduction Act of 1995, 44 U.S.
C. Section 3501 et seq.
A.

JUSTIFICATION
1.

Necessity of Information Collection

In 1998, the Commission adopted Regulation ATS, which established a new regulatory
framework for alternative trading systems (“ATS”), which allows entities that meet the definition
of “exchange” under Section 3(a)(1) of the Exchange Act to choose between two regulatory
structures: registering as a national securities exchange or registering as a broker-dealer and
complying with Regulation ATS.
Regulation ATS allows an organization, association, or group of persons that meets the
definition of an exchange, as define under Section 3(a)(1) of the Exchange Act and Rule 3b-16
thereunder, 1 to choose between two regulatory structures: registering as a national securities
exchange or operating as an ATS pursuant to an exemption provided by Regulation ATS. An
organization, association, or group of persons that chooses to operate as an ATS pursuant to the
exemption provided by Exchange Act Rule 3a1-1(a)(2) must comply with Regulation ATS,
including registering as a broker-dealer.
Regulation ATS is composed of Rules 300, 2 301, 3 302, 4 and 303. 5 Rule 300 defines
terms. Rule 301 sets forth the conditions that an ATS must meet to be exempt under Rule 3a11(a)(2), including the requirement that an ATS be registered as a broker-dealer. Rule 301
contains certain notice and reporting requirements, as well as additional obligations that only
apply to ATSs with significant volume. 6 Rule 302 establishes a set of records relating to trading
1

See 17 CFR 240.3b-16. See generally Securities Exchange Act Release No. 40760
(December 8, 1998), 63 FR 70844, 70863 (December 22, 1998) (Regulation of
Exchanges and Alternative Trading Systems); see also Securities Exchange Act Release
No. 76474 (Nov. 18, 2015), 80 FR 80998, 81004 (Dec. 28, 2015) (“Proposal”) discussing
the current exemption from the definition of exchange available to ATSs).

2

Rule 300 does not include a collection of information.

3

OMB No. 3235-0509.

4

OMB No. 3235-0510.

5

OMB No. 3235-0505.

6

In November 2014, the Commission adopted Regulation Systems Compliance and
Integrity (“Regulation SCI”) to require certain key market participants to, among other

activity that the ATS must make. Rule 303 establishes requirements for the preservation of
certain records that ATSs must make. 7
The equity markets have evolved substantially since the adoption of Regulation ATS, and
the Commission has adopted amendments to Regulation ATS to improve the operational
transparency of ATSs that trade in NMS stocks (“NMS Stock ATSs”). 8 The majority of
substantive changes in the new amendments are in Rule 304 and Form ATS-N of Regulation
ATS. Rule 304 establishes new conditions for NMS Stock ATSs seeking to rely on the
exemption from the definition of “exchange” provided by Rule 3a1-1(a) of the Exchange Act. 9
Form ATS-N will require NMS Stock ATSs to publicly disclose, among other things,
information about the broker-dealer operator, the NMS Stock ATS’s manner of operations, and
the ATS-related activities of the broker-dealer operator and its affiliates. 10 The collection of

things: (1) have comprehensive policies and procedures in place to help ensure the
robustness and resiliency of their technological systems, and also that their technological
systems operate in compliance with the federal securities laws and with their own rules;
and (2) provide certain notices and reports to the Commission to improve Commission
oversight of securities market infrastructure. Regulation SCI was adopted to update,
formalize, and expand the Commission’s ARP Inspection Program, and, with respect to
SCI entities, to supersede and replace the Commission’s ARP Policy Statements, as well
as certain rules regarding systems capacity, integrity, and security in Rule 301(b)(6) of
Regulation ATS that relate to ATSs that trade NMS and equity securities that are not
NMS stocks. Securities and Exchange Act Release No. 34-73639 (November 19, 2014),
79 FR 72251 (December 5, 2014). Given the inclusion of ATSs that trade NMS stocks
and equity securities that are not NMS stocks within the scope of Regulation SCI, the
Commission amended Rule 301(b)(6) of Regulation ATS so that it will no longer apply
to ATSs that trade NMS stocks and equities securities that are not NMS stocks.
7

As discussed in the Proposal, the Commission is submitting separate information
collections for Rules 301, 303, and 304 of Regulation ATS because we consider this
method to be the most practical and efficient manner in which to organize the collections.
The collections associated with each rule serve different purposes: the collection in Rule
301 relates in large part to Form ATS; Rule 304 relates primarily to Form ATS-N; and
Rule 303 is the associated record preservation requirements. The Commission at one
point combined these collections under OMB control number 3235-0509 during the
proposing stage, but for the aforementioned reasons, we believe that separating the
information collections for these rules is more effective.

8

See Exchange Act Release No. 83663 (July 18, 2018) (File No. S7-23-15).

9

We have adopted conforming amendments to Rule 300 of Regulation ATS and Exchange
Act Rule 3a1-1(a).

10

Form ATS-N expands on the information contained in Form ATS and will be made public.
The Commission will continue to collect information for Form ATS for non-NMS Stock

2

information in Rule 304 and Form ATS-N are discussed in the Supporting Statement for OMB
No. 3235-XXXX. Thus, NMS Stock ATSs would no longer comply with the filing requirements
of Rule 301(b)(2). Instead, NMS Stock ATSs must file Form ATS-N pursuant to Rule 304 of
Regulation ATS.
In connection with the adoption of the Rule 304 and Form ATS-N, we adopted related
amendments to existing Rule 301 of Regulation ATS. Specifically, we amended Rule
301(b)(10) of Regulation ATS 11 to require every ATS to memorize in writing its safeguards and
procedures to protect subscribers’ confidential trading information. Such safeguards and
procedures were already mandated under Rule 310(b)(10); however, the rule did not require that
the safeguards and procedures be memorialized in writing. We believe that the requirement
(which will apply to all ATSs and not just NMS Stock ATSs) to memorialize in writing the
safeguards and procedures to protect subscribers’ confidential trading information will help
assist ATSs in more effectively complying with their existing legal requirements under
Regulation ATS; in particular, the requirements to protect the confidentiality of subscribers’
trading information under Rule 301(b)(10) of Regulation ATS.
2.

Purpose and Use of the Information Collection

Rule 301 of Regulation ATS sets forth the conditions that an ATS must comply with to
be exempt pursuant to Exchange Act Rule 3a1-1(a)(2). Rule 301 requires an ATS to register as a
broker-dealer. Rule 301 requires all ATSs that wish to comply with Regulation ATS to file an
initial operation report on Form ATS. The initial operation report requires information regarding
operation of the system including the method of operation, access criteria, and the types of
securities traded. ATSs are also required to supply updates on Form ATS to the Commission,
describing material changes to the system.
In addition, Regulation ATS requires ATSs to provide quarterly transaction reports on
Form ATS-R. ATSs are also required to file cessation of operations reports on Form ATS. The
gathering of such information permits the Commission to oversee the operation of such systems
and track the growth of their role in the securities markets.
ATSs with significant volume are required to comply with requirements for fair access
and systems capacity, integrity and security pursuant to Rule 301(b)(5) of Regulation ATS. Such
ATSs are required to establish standards for granting access to trading on the system and keep
records of all grants of access including, for all subscribers, the reasons for granting such access,
and all denials or limitations of access, and the reasons for each applicant for denying or limiting
access. In addition, upon a decision to deny or limit an investor’s access to the system, an ATS
is required to provide notice to the investor of the denial or limitation and their right to an appeal
ATSs and Form ATS-R. Both the Form ATS and Form ATS-R will remain confidential.
Although an ATS may voluntarily publish its Form ATS and Form ATS-R, these forms are
otherwise available only to the examination of the Commission staff, state securities
authorities, and self-regulatory organizations.
11

See 17 CFR 242.301(b)(10).

3

to the Commission. Regulation ATS requires ATSs to preserve any records made in the process
of complying with the systems’ capacity, integrity and security requirements. In addition, such
ATSs are required to notify Commission staff of material systems outages and significant
systems changes.
We use the information provided pursuant to the Rule to comprehensively monitor the
growth and development of ATSs to confirm that investors effecting trades through the systems
are adequately protected, and that the systems do not impede the maintenance of fair and orderly
securities markets or otherwise operate in a manner that is inconsistent with the federal securities
laws. In particular, the information collected and reported to us by ATSs enables us to evaluate
the operation of ATSs with regard to national market system goals, and monitor the competitive
effects of these systems to ascertain whether the regulatory framework remains appropriate to the
operation of such systems.
Without the information provided on Forms ATS and ATS-R, the Commission would not
have readily available information on a regular basis in a format that will allow it to determine
whether such systems have adequate safeguards. Further, in the absence of the Rule, the
Commission would not regularly obtain uniform trading data to identify areas where surveillance
by self-regulatory organizations may be more appropriately tailored to the detection of
fraudulent, deceptive and manipulative practices that may be peculiar to an automated trading
environment. In sum, without the data required by the Rule, the Commission would be limited
in its ability to comply with its statutory obligations, provide for the protection of investors, and
promote the maintenance of fair and orderly markets.
Furthermore, in connection with the amendments to Regulation ATS, the requirement for
an ATS to reduce to writing those safeguards and procedures under Rule 301(b)(10) will help
Commission staff, and the staff of the SRO of which an ATS’s broker-dealer operator is a
member, evaluate whether an ATS has established such procedures and safeguards, whether the
ATS has implemented and is abiding by them, and whether they comply with the requirements of
Rule 301(b)(10). This will enable the Commission and the applicable SRO(s) to exercise more
effective oversight of ATSs regarding the ATSs’ compliance with Rule 301(b)(10) and other
federal securities laws, rules, and regulations.
3.

Consideration Given to Information Technology

Ultimately, all SEC filings, including Forms ATS and ATS-R, will be considered for
electronic submission. Such automation would increase the speed, accuracy, and availability of
information, generating benefits to investors and financial markets.
4.

Duplication

Because most ATSs would maintain much of the information required by Rule 301, no
duplication occurs with respect to such information. To the extent that Rule 301 establishes new
collections of information, there is no similar information available that could replace the
information required.
The Commission is adopting Rule 301(b)(2)(viii) of Regulation ATS to provide that an
NMS Stock ATS shall file the reports and amendments required by Rule 304 of Regulation ATS
4

and would not be subject to the requirements of Rule 301(b)(2). Existing Rule 301(b)(2)
requires an ATS to file with the Commission a Form ATS initial operation report, amendments
to the Form ATS initial operation report, and cessation of operations reports on Form ATS, all of
which are “deemed confidential when filed.” 12 Because the Commission is adopting rules to
govern the content and manner in which an NMS Stock ATS would be required to disclose
information to the public on Form ATS-N, existing Rule 301(b)(2)would be duplicative of the
amendments and is no longer required for NMS Stock ATSs.
Because Regulation SCI would duplicate the requirements under Rule 301(b)(6) of
Regulation ATS as applied to ATSs that trade NMS stocks and equity securities that are not
NMS stocks, the Commission amended Rule 301(b)(6) so that it will no longer apply to ATSs
that trade NMS stocks and equity securities that are not NMS stocks.
5.

Effect on Small Entities

Rule 301 is one of general applicability that mostly does not depend on the size of the
system. Fair access reporting requirements and system capacity, integrity and security requirements
apply only to ATSs that have significant volume. The filing requirements on Forms ATS and ATSR, however, apply to all ATSs regardless of size. Therefore, the Rule could apply to small
businesses. Pursuant to 17 CFR 240.0-10(c), the term “small business” or “small organization”
when used in reference to a broker-dealer means a broker-dealer that has total capital (net worth
plus subordinated liabilities) of less than $500,000 on the date in the prior fiscal year as of which its
audited financial statements were prepared pursuant to 17 CFR 240.17a-5(d) or, if not required to
file such statements, a broker-dealer that had total capital of less than $500,000 on the last business
day of the preceding fiscal year (or in the time that it has been in business); and is not affiliated with
any person (other than a natural person) that is not a small business or small organization as defined
in 17 CFR 240.0-10. We estimate that 10 ATSs that would register as broker-dealers are small
entities as currently defined by the Act that would be subject to the filing requirements of Form
ATS.
The amendment to Rule 301(b)(10) would apply to 15 small entities that are ATSs
(including NMS Stock and non-NMS Stock ATSs), 13 but we believe that there would be no
significant economic impact on these entities because, to the extent they do not have these
safeguards and procedures in writing, any resulting burden is minimal because the ATS would
only be memorializing its existing safeguards and procedures. 14

12

See 17 CFR 242.301(b)(2).

13

We estimate that 5 of the estimated 15 small entities are NMS Stock ATSs that would not
be subject to the filing requirements of Form ATS (and instead comply with Rule 304).
As noted above, all 15 small entities would be subject to the filing requirements for Form
ATS-R.

14

See Proposal, supra note 1, at 81093.

5

Because the risks that the Commission monitors in the operation of an ATS occur in any
size business, we have determined that the Rule must apply in the same manner to small as well as
large entities. Hence, the Rule does not contain an exemption for small entities. However, we note
that Regulation ATS imposes additional duties on ATSs that have large volumes, which are not
likely to be such small entities.
6.

Consequences of Not Conducting Collection

Without the information provided on Forms ATS and ATS-R, we would not have readily
available information on a regular basis in a format that will allow it to determine whether such
systems have adequate safeguards. Further, in the absence of the amendments to Regulation
ATS, we would not regularly obtain uniform trading data to identify areas where surveillance by
self-regulatory organizations may be more appropriately tailored to the detection of fraudulent,
deceptive and manipulative practices that may be peculiar to an automated trading environment.
In sum, without the data required by Rule 304, we would be limited in our ability to comply with
its statutory obligations, provide for the protection of investors and promote the maintenance of
fair and orderly markets.
Additionally, requiring ATSs to reduce to writing the safeguards and procedures required
by Rule 301(b)(10) of Regulation ATS, as well as its oversight procedures to ensure that such
safeguards and procedures are followed, will strengthen the effectiveness of the ATS’s
safeguards and procedures and will better enable the ATS to protect confidential subscriber
trading information and implement and monitor the adequacy of, and the ATS’s compliance
with, its safeguards and procedures.
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

All Commission rule proposals are published in the Federal Register for a comment
period lasting at least 30-60 days. This comment period allowed the public an opportunity to
respond to the proposal. In the Proposal, the Commission solicited comments on the collection
of information burdens and asked whether commenters agree with our estimate of the number of
respondents and paperwork burdens of the Proposal. 15 The Commission received no comments
pertaining to the information collection in Rule 301.
9.

Payment or Gift

The respondents receive no payments or gifts.
10.

Confidentiality

Form ATS and Form ATS-R are available only for the examination of the Commission
15

See Proposal, supra note 1, at 81107.

6

staff, state securities authorities, and the SROs. Subject to the provisions of the Freedom of
Information Act, 5 U.S.C. § 522 (“FOIA”), and the SEC’s rules thereunder (17 CFR
200.80(b)(4)(iii)), the Commission does not generally publish or make available information
contained in any reports, summaries, analyses, letters, or memoranda arising out of, in anticipation
of, or in connection with an examination or inspection of the books and records of any person or any
other investigation.
11.

Sensitive Questions

Not applicable. No information of a sensitive nature is required under the rule.
12.

Burden of Information Collection
a. Form ATS – Initial Operation Report

An ATS operating pursuant to the Exchange Act Rule 3a1-1(a)(2) exemption must file an
Initial Operations Report on Form ATS prior to commencing operations. We estimate that
approximately 3 respondents 16 will file an Initial Operation Report on Form ATS each year, and
that the average compliance burden for each respondent would be 20 hours, comprising 13 hours of
in-house attorney work and 7 hours for a compliance clerk. Thus, the total compliance burden per
year is 60 hours (3 responses x 20 hours = 60 hours).
b. Form ATS - Periodic Amendments to Update Information
An ATS operating pursuant to the Exchange Act Rule 3a1-1(a)(2) exemption must file
amendments to the Initial Operations Report on Form ATS to provide notice of material systems
changes and reflect other changes. We estimate that each of the approximately 46 ATSs 17 will file
2 amendments per year for 92 responses, and that the average compliance burden for each response
would be 2 hours, comprising 1.5 hours for an in-house attorney and 0.5 hours for a compliance
clerk. Thus, the total compliance burden per year is 184 hours (92 responses x 2 hours = 184
hours).
c.

Form ATS-R - Quarterly Reports

An ATS operating pursuant to the Exchange Act Rule 3a1-1(a)(2) exemption must file
quarterly reports on Form ATS-R. Each of the approximately 87 ATSs 18 will file 4 quarterly
reports per year for 348 responses. We estimate that that the average compliance burden for each
response would be 4 hours, comprising 3 hours for an in-house attorney and 1 hour for a compliance
16

We lowered the estimated number of respondents that will file a Form ATS to account
for the NMS Stock ATSs that will file a Form ATS-N in lieu of Form ATS in accordance
with Rule 304.

17

Following the adoption of Rule 304, we estimate that there are currently 46 ATSs that file
Form ATS.

18

This is based on the number of ATSs as of March 31, 2018.

7

clerk. This would result in a compliance burden of 1392 hours (4 hours x 348 responses).
Under Rule 304 of Regulation ATS, 10 ATSs that trade in NMS stocks are required to
file four additional quarterly reports for their NMS stock trading activity. Although we do not
believe that those ATSs will incur any additional burden to collect the required information
because they currently assemble that information when preparing their current Form ATS-R
filings, we believe that they will incur an additional 0.5 hour burden to divide their trading
statistics between two forms and file each form separately. Consequently, we estimate that the
aggregate annual burden of filing Forms ATS-R should be increased by 20 hours to account for
the increased filings by those ATSs that effect transactions in both NMS stocks and non-NMS
stocks (10 NMS ATSs x 4 filings annually x 0.5 hours = 20 hours). 19 Thus, the total compliance
burden per year for Form ATS-R is 1412 hours (1392 hours + 20 hours). 20
d. Form ATS - Cessation of Operations Report
An ATS operating pursuant to the Exchange Act Rule 3a1-1(a)(2) exemption must file a
Cessation of Operations report on Form ATS to notice that is has ceased operations. We estimate
that 2 ATSs will be required to file a cessation of operations report each year, and that the average
compliance burden for each response would be 2 hours, comprising 1.5 hours for an in-house
attorney and 0.5 hours for a compliance clerk. Thus, the total compliance burden per year is 4 hours
(2 responses x 2 hours = 4 hours).
e. Fair Access Standards Recordkeeping
An ATS operating pursuant to the Exchange Act Rule 3a1-1(a)(2) exemption that exceeds
certain volume thresholds and is subject to Rule 301(b)(5)(fair access requirements) must establish
standards for granting access on its trading system. Such ATSs are required to make and keep such
criteria, so such a requirement creates a recordkeeping burden for ATSs. We estimate that 2 ATSs
that register as broker-dealers and comply with Regulation ATS would meet the volume thresholds
that trigger fair access obligations, and that the average compliance burden for each response would
be 5 hours of in-house professional work. Thus, the total compliance burden per year is 10 hours (2
responses x 5 hours = 10 hours).
f. Fair Access Notices
An ATS operating pursuant to the Exchange Act Rule 3a1-1(a)(2) exemption that are
subject to the requirements of Rule 301(b)(5) (fair access requirements) must report on Form ATS-

19

((Attorney at.25 hour + Compliance Clerk at .25 hour) x (4 filings annually)) x 10 ATSs
= 20 aggregate burden hours.

20

The total responses on Form ATS-R are 388 (348 + 40 = 388 responses).

8

R21 any decision to grant, deny or limit the user’s access to the system. We estimate that 2 ATSs
that register as broker-dealers and comply with Regulation ATS would meet the volume thresholds
that trigger fair access obligations approximately 27 times a year, and that the average compliance
burden for each response would be 1 hour of in-house professional work. Thus, the total
compliance burden per year is 54 hours (2 respondents x 27 responses each x 1 hour = 54 hours).
g. Systems Capacity, Integrity and Security Recordkeeping
An ATS operating pursuant to the Exchange Act Rule 3a1-1(a)(2) exemption must that
exceeds certain volume thresholds and is subject to Rule 301(b)(6) must make records relating to
any steps taken to comply with systems capacity, integrity and security requirements under Rule
301. 22 We estimate that 1 ATS that operating pursuant to the Exchange Act Rule 3a1-1(a)(2)
exemption would trigger this requirement, and that the average compliance burden for each
response would be 10 hours of in-house professional work. Thus, the total compliance burden per
year is 10 hours (1 respondents x 10 hours = 10 hours).
h. Systems Outage Notices
An ATS operating pursuant to the Exchange Act Rule 3a1-1(a)(2) exemption that exceeds
certain volume thresholds and is subject to Rule 301(b)(6) must provide a notice to the Commission
to report any systems’ outages. We estimate that 1 ATS that operates pursuant to the Exchange Act
Rule 3a1-1(a)(2) exemption would meet the volume thresholds that trigger systems’ outage notice
obligations approximately 5 times a year, and that the average compliance burden for each response
would be .25 hours of in-house professional work. Thus, the total compliance burden per year is
1.25 hours (1 respondents x 5 responses each x .25 hours = 1.25 hours). 23
i. Written Safeguards and Procedures
Following the amendments to Rule 301(b)(10), ATSs that have not recorded in writing
their safeguards and procedures to protect subscribers’ confidential trading information and
oversight procedures to ensure such safeguards and procedures are followed, there will be an
initial, one-time burden to memorialize them in a written document(s). For ATSs that have
already recorded in writing such safeguards and procedures, we believe that the current practices
of those ATSs would already be in compliance with the rules and the amendments should not
21

Forms ATS-R are filed with the Commission on a confidential basis.

22

See supra note 6 (explaining that ATSs that trade NMS stock and equity securities that
are not NMS stock are not required to comply with Rule 301(b)(6) pursuant to Regulation
SCI).

23

We are adding this burden back into the Rule 301 burden because some ATSs (other than
ATSs that trade NMS stocks and equities securities that are not NMS stocks) remain
subject to 301(b)(6).

9

require these ATSs to take any actions in addition to those currently undertaken (and thus no
additional burden).
In the Proposal for the amendments, we estimated that an ATS’s initial, one-time burden
to put in writing its safeguards and procedures to protect subscribers’ confidential trading
information and the oversight procedures to ensure such safeguards and procedures are followed
would be 8 hours. 24 Because ATSs are already required to have safeguards and procedures to
protect subscribers’ confidential trading information and to have oversight procedures to ensure
such safeguards and procedures are followed, we believe that recording these items in a written
format would not impose a substantial burden on ATSs and rely on internal staff to record the
ATS’s Rule 301(b)(10) procedures in writing. Therefore, we estimate that an ATS’s initial, onetime burden to put in writing its safeguards and procedures to protect subscribers’ confidential
trading information and the oversight procedures to ensure such safeguards and procedures are
followed would be approximately 8 hours. 25
We estimate that, of the 87 current ATSs, 15 ATSs might not have their safeguards and
procedures to protect subscribers’ confidential trading information or oversight procedures to ensure
such safeguards and procedures are followed in writing, and would therefore be subject to this onetime initial burden. 26 Accordingly, we estimate that the aggregate initial, one-time burden on all
ATSs would be 120 hours. 27
We estimate that the average annual, ongoing burden per ATS to update and preserve
written safeguards and written procedures to protect subscribers’ confidential trading information,
as well as to update and preserve the written standards controlling employees of the ATS trading for
their own account and the written oversight procedures, would be 4 hours. As a result, we estimate
that the total aggregate, ongoing burden per year for all ATSs would be 348 hours, 28 and thus, we
are modifying the current PRA burden estimates for Rules 301 to account for this increased
burden on ATSs.
j. Aggregate Respondent Reporting Burdens
The estimated average annual aggregate burden for ATSs to comply with Rule 301 of
Regulation ATS would be 2,123.25 hours. This estimate is broken down as follows:
24

See Proposal, supra note 1, at 81094.

25

Attorney at 7 hours + Compliance Clerk at 1 hour = 8 burden hours.

26

It is likely that most, if not all, ATSs already fulfill their Rule 301(b)(10) obligations in
writing, given the practical difficulty in ensuring such safeguards and procedures, as well
as oversight procedures, are “adequate,” as required under Rule 301(b)(10), and contain
all necessary components.

27

(Attorney at 7 hours + Compliance Clerk at 1 hour) x (15 ATSs) = 120 burden hours.
The annual burden is aggregated over a three-year period.

28

(Attorney at 2 hours + Compliance Clerk at 2 hours) x 87 ATSs = 348 burden hours.

10

Initial Operating Reports on Form ATS =
Amendments to Form ATS =
Quarterly reports on Form ATS-R =
Additional Forms ATS-R=
Cessation of operations report on Form ATS =
Fair access standards recordkeeping =
Fair access notices =
Systems capacity, integrity and security records =
Written Confidentiality Procedures (Updates)=
Systems outage notices =
Written safeguards and procedures =

13.

60 hours
184 hours
1,392 hours
20 hours
4 hours
10 hours
54 hours
10 hours
348 hours
1.25 hours
40 hours
2,123.25 hours

Costs to Respondents

We do not estimate any costs to Respondents in addition to the burden hours discussed in
Section 12.
14.

Cost to Federal Government

There are no federal costs related to material costs for this information collection.
15.

Changes in Burden

As compared to the burdens and costs identified in the Commission’s 2015 PRA
Submission, the estimated burdens associated with Rule 301 of Regulation ATS have decreased –
primarily as a result of NMS Stock ATSs no longer being required to comply with the filing
requirements of Rule 301(b)(2). Instead, NMS Stock ATSs are required to comply with Rule 304
and file public disclosures with the Commission on Form ATS-N.
16.

Information Collection Planned for Statistical Purposes

Not applicable. The information collections above are not planned for statistical purposes.
17.

OMB Expiration Date Display Approval

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

Exceptions to Certification for Paperwork Reduction Act Submissions

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

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

11