Rule 606 of Regulation NMS (f/k/a Rule 11Ac1-6)

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
3235-0541 60 Day Notice 2021-27497.pdf	Supplementary Document	Uploaded 2022-01-27	Repair queued
3235-0541.pdf	Supplementary Document	Uploaded 2022-01-27	Available
DGL FINAL FINAL REVISED 2021 PRA Supporting Statement Rule 606 - katza revisions.pdf	Supporting Statement A	Uploaded 2021-12-15	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
35356	Rule 606 (a)(1) - Issue Quarterly Disclosure		Modified
233801	Rule 606 - Industry Update to Compliance Manuals		Modified
233800	Rule 606(b)(3) - Respond to Customer Disclosure Requests Using Third Party		Unchanged
233798	Rule 606(b)(3) - Respond to Customer Disclosure Requests In House		Unchanged
233797	Rule 606(b)(3) - Update Systems Using Third Party		Modified
233796	Rule 606(b)(3) - Update Systems In House		Modified
233795	Rule 606(b)(1) - Update Disclosure Order Categories Using Third Party		Modified
233794	Rule 606(b)(1) - Update Disclosure Order Categories In House		Modified
233793	Rule 606(a)(1) - Assess Payment for Order Flow and Profit-Sharing Relationships		Modified
233792	Rule 606(a)(1) - Update Systems Using Third Party		Modified
233791	Rule 606(a)(1) - Initial Burden to Update Systems In House		Modified
192311	Rule 606(b)(1) - Respond to Customer Disclosure Requests		Modified

ICR Details

OMB Control No: 3235-0541	ICR Reference No: 202104-3235-016
Status: Historical Active	Previous ICR Reference No: 201810-3235-044
Agency/Subagency: SEC	Agency Tracking No: TM-270-489
Title: Rule 606 of Regulation NMS (f/k/a Rule 11Ac1-6)
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 03/03/2022
Retrieve Notice of Action (NOA)	Date Received in OIRA: 01/27/2022
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2025	36 Months From Approved	03/31/2022
Responses	413,327	0	480,649
Time Burden (Hours)	190,240	0	229,782
Cost Burden (Dollars)	1,300,000	0	5,591,667

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Abstract: 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.

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Authorizing Statute(s): 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
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 71935	12/20/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 4312	01/27/2022
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 12

table that charts list of burden

IC Title	Form No.	Form Name
Rule 606 (a)(1) - Issue Quarterly Disclosure
Rule 606 - Industry Update to Compliance Manuals
Rule 606(a)(1) - Assess Payment for Order Flow and Profit-Sharing Relationships
Rule 606(a)(1) - Initial Burden to Update Systems In House
Rule 606(a)(1) - Update Systems Using Third Party
Rule 606(b)(1) - Respond to Customer Disclosure Requests
Rule 606(b)(1) - Update Disclosure Order Categories In House
Rule 606(b)(1) - Update Disclosure Order Categories Using Third Party
Rule 606(b)(3) - Respond to Customer Disclosure Requests In House
Rule 606(b)(3) - Respond to Customer Disclosure Requests Using Third Party
Rule 606(b)(3) - Update Systems In House
Rule 606(b)(3) - Update Systems Using Third Party

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ICR Summary of Burden

table that charts list of burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	413,327	480,649	0	0	-67,322	0
Annual Time Burden (Hours)	190,240	229,782	0	0	-39,542	0
Annual Cost Burden (Dollars)	1,300,000	5,591,667	0	0	-4,291,667	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The total annual hour burden decreased from approximately 229,782 hours to approximately 190,240 hours. The reduction is attributed to (1) a decrease in the estimated number of Rule 606(a)(1) respondents from 292 to 264 and a decrease in the number of Rule 606(b)(1) respondents from 217 to 186, and (2) the obsolescence of certain one-time only hour burdens imposed by the 2018 amendments. The total annual cost burden decreased from approximately $5,591,667 to approximately $1,300,000 due to the obsolescence of certain one-time only cost burdens imposed by the 2018 amendments.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 01/27/2022

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