DGL REVISED 2021 24b-1 Supporting Statement - updated

SUPPORTING STATEMENT
for the Paperwork Reduction Act Information Collection Submission for
Rule 24b-1
OMB Control No. 3235-0194
A.

Justification
1.

Necessity of Information Collection

Rule 24b-1 (17 CFR 240.24b-1) (the “Rule”), which was adopted in 1948 pursuant to the
predecessor to current Section 24 of the Securities Exchange Act of 1934 (15 U.S.C. 78x) (the
“Act”), 1 permits members of the public to obtain access to the registration statements and
amendments to the registration statements of the securities exchanges. The Rule requires that
upon Commission action granting an exchange’s application for registration or exemption from
registration as a national securities exchange, the exchange must make available for public
inspection at its offices during reasonable business hours a copy of the registration statement and
exhibits filed with the Commission (along with any amendments thereto). However, the Rule
exempts those portions of this information to which the exchange has filed with the Commission
an objection to disclosure and when the Commission has not overruled the objection. While the
Rule does not specify a retention period, the exchanges would be expected to maintain this
information for a period of not less than five years, the first two years in an easily accessible
place pursuant to their general record retention responsibilities. 2
2.

Purpose and Use of Information Collection

Rule 24b-1 requires exchanges to make their registration information public, unless an
exception applies. Without the Rule, exchanges would probably not make this information
publicly available. 3
3.

Consideration Given to Information Technology

The Rule requires an exchange to make available for public inspection at its office during
reasonable business hours a copy of its registration statement and exhibits filed with the
Commission (along with any amendments thereto). Although such documents may also be
available to the public on the exchange’s and/or the Commission’s public websites, the Rule
specifically provides that copies be made available at the exchange’s office. To the extent that
such copies are provided in paper format, improved technology would not reduce the burden.
The Commission notes, however, that it does not prohibit exchanges from using information
1
2
3

Further authority for the Rule can be found in Section 23(a) of the Act (15 U.S.C.
78w(a)).
See 17 CFR 240.17a-1(b).
The Commission notes, however, that recent exchange applications for registration or
exemption are available at https://www.sec.gov/rules/other.shtml. The Commission
further notes that Form 1 amendments are available at
https://www.sec.gov/rules/national-securities-exchanges-amendments.htm.

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technology to facilitate the collection and/or preparation of the information required by the Rule
and that the use of such technology could lessen the need for additional copying and scanning.
4.
basis.

Duplication

Not applicable. Each request by members of the public must be done on an individual
5.

Effect on Small Entities

Not applicable. The burden is minimal and the information is necessary regardless of the
size of the exchange.
6.

Consequences of Not Conducting Collection

Since the Rule requires only that exchanges maintain copies of their registration
statements and exhibits filed with the Commission (and any amendments thereto) for public
inspection, less frequent collection is not possible.
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

Not applicable.
10.

Confidentiality

Under the Rule, exchange registration statements are required to be made available to the
public upon request. Thus confidentiality is assured to respondents under the Rule only with
regard to those portions of the statement for which an exchange has filed with the Commission
an objection to disclosure, and the Commission has not overruled the objection.
11.

Sensitive Questions

The information collection does not collect personally identifiable information. The
agency has determined that neither a PIA nor a SORN are required in connection with the
collection of information, the PAW is sufficient.

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12.

Information Collection Burden

There are currently 24 national securities exchanges subject to Rule 24b-1. 4 The burden
of complying with the Rule is evenly distributed among the exchanges subject to the Rule. The
staff estimates that each of the respondents spends approximately one half hour per year
complying with the Rule, for an aggregate total of approximately 12 burden hours per year.
Rule

Burden Type

Number of
Respondents

Rule 24b-1

Record Keeping

24

13.

Time Per
Respondent
(Hours)
0.5

Total Annual
Burden Hours
12

Costs to Respondents

The staff estimates that the average cost per respondent is approximately $65.18 per year
(comprised of $13.97 for copying plus $51.21 for storage) for an aggregate total cost to all
respondents of approximately $1,564 per year (24 x $65.18 = $1,564.32 rounded down to
$1,564). This estimate is based on those exchanges currently registered with the Commission.
The Commission recognizes that the number of registered exchanges may increase or decrease in
the future.
Rule

Annual Costs Per Respondent

Rule 24b-1

Copying
Storage

Total

Number of
Respondents

$13.97 24
$51.21
$65.18

Aggregate Total
Annual Cost to
Respondents
$1,564

It is not anticipated that respondents will have to incur any additional operational or
maintenance costs to comply with the Rule. It also is not anticipated that respondents will have
to incur any capital and start-up costs to comply with the Rule.

4

These 24 registered national securities exchanges are: (1) BOX Exchange LLC; (2) Cboe
BYX Exchange, Inc.; (3) Cboe BZX Exchange, Inc.; (4) Cboe C2 Exchange, Inc.; (5) Cboe
EDGA Exchange, Inc.; (6) Cboe EDGX Exchange, Inc.; (7) Cboe Exchange, Inc.; (8)
Investors Exchange LLC; (9) Long-Term Stock Exchange, Inc.; (10) MEMX LLC; (11)
Miami International Securities Exchange, LLC; (12) MIAX Emerald, LLC; (13) MIAX
PEARL, LLC; (14) Nasdaq BX, Inc.; (15) Nasdaq GEMX, LLC; (16) Nasdaq ISE, LLC;
(17) Nasdaq MRX, LLC; (18) Nasdaq PHLX LLC; (19) The Nasdaq Stock Market LLC;
(20) New York Stock Exchange LLC; (21) NYSE Arca, Inc.; (22) NYSE American LLC;
(23) NYSE Chicago, Inc.; (24) NYSE National, Inc.

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14.

Cost to Federal Government

The Commission incurs no costs with respect to Rule 24b-1.
15.

Changes in Burden

The increase in the estimated annual time burden and cost burden is due to an increase in
the number of respondents from 21 to 24.
16.

Information Collections 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.