The information disclosed by Rule 606
of Regulation NMS will be used by investors to evaluate their
brokers' order routing decisions, and by broker-dealers to compete
on the basis of order routing services. Respondents will be
broker-dealers. The Commission adopted amendments to Rule 606 of
Regulation NMS to require disclosure by broker-dealers of (1) a
report, upon request of a customer that places with the
broker-dealer, directly or indirectly, NMS stock orders of any size
that are submitted on a not held basis (subject to two de minimis
exceptions), containing certain information on the broker-dealer’s
handling of such orders for that customer for the prior six months
(“Customer-Specific Disclosure on Handling of Non-Exempt Not Held
Orders”); (2) a quarterly aggregated public report on the handling
of orders in NMS stocks that are submitted on a held basis and
orders in NMS securities that are option contracts with a market
value less than $50,000 (“Quarterly Public Disclosure on Routing of
Held Orders and Options Contracts”); and (3) a report, upon request
of a customer, on the routing of that customer’s orders in NMS
stocks that are submitted on a held basis; orders in NMS stocks
that are submitted on a not held basis and do not qualify for the
two de minimis exceptions; and orders in NMS securities that are
option contracts, containing certain information on the
broker-dealer’s routing of such orders for that customer for the
prior six months. The amendments to Rule 606 would require
collections of information.
US Code:
15
USC 78q Name of Law: Securities Exchange Act of 1934
US Code: 15
USC 17k-1 Name of Law: Securities Exchange Act of 1934
The total annual hourly and
cost burden have increased from the previous version of the Rule,
as the adopted amendments are enhancing the current quarterly and
customer-specific disclosure requirements for order routing under
Rule 606(a)(1) and (b)(1), respectively, and adding new
requirements for customer-specific reports on order handling under
Rule 606(b)(3). The burdens for the existing collections for Rule
606(a)(1) and 606(b)(1) are also increasing due an increase in the
number of respondents since the most recent renewal: the number of
broker-dealers subject to the information collection requirements
of Rule 606(a)(1) increased from 266 to 292 and the number of
clearing brokers subject to the information collection requirements
of Rule 606(b)(1) increased from 185 to 217.
$0
No
No
No
No
No
No
Uncollected
Amir Katz 202 551-2000
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.
PRA Supporting Statement amended Rule 606 (FINAL RULE 11.19.2018).docx
Rule 606 (a)(1) - Issue Quarterly Disclosure