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-dealerâs handling of such orders for that customer for the prior six months (âCustomer-Specific Disclosure on Handling of Non-Exempt Not Held Ordersâ); (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 (âQuarterly Public Disclosure on Routing of Held Orders and Options Contractsâ); and (3) a report, upon request of a customer, on the routing of that customerâs 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-dealerâs 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
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.
PRA Supporting Statement amended Rule 606 (FINAL RULE 11.19.2018).docx
Rule 606 (a)(1) - Issue Quarterly Disclosure