Rule 204

Forms and Documents

Document Name	Status
3235-0647 2021-26675.pdf Supplementary Document	2022-01-20
3235-0647.pdf Supplementary Document	2022-01-20
Rule 204 PRA Supporting Statement - 2021.pdf Supporting Statement A	2021-12-03

IC Document Collections

IC ID	Document Title	Status
190781	Pre-fail demonstration requirement	Modified
190780	Certification requirement	Modified
190779	Pre borrow notification requirement	Modified
190778	Demonstration requirement for fails to deliver on long sales	Modified
186911	Allocation notificiation requirement	Modified

ICR Details

OMB Control No: 3235-0647	ICR Reference No: 202112-3235-002
Status: Received in OIRA	Previous ICR Reference No: 201808-3235-031
Agency/Subagency: SEC	Agency Tracking No: TM-270-586
Title: Rule 204
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 01/20/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved	02/28/2022
Responses	8,487,475	7,975,536
Time Burden (Hours)	1,357,997	1,276,087
Cost Burden (Dollars)	0	0

---

Abstract: Rule 204 is intended to help further the Commission’s goal of reducing fails to deliver by maintaining the reductions in fails to deliver achieved by the adoption of temporary Rule 204T, as well as other actions taken by the Commission. In addition, Rule 204 is intended to help further the Commission’s goal of addressing abusive ‘‘naked’’ short selling in all equity securities. The information collected will continue to assist the Commission and self-regulatory organizations in monitoring whether or not participants of a registered clearing agency, and the broker-dealers from which they receive trades for clearance and settlement, are complying with the close-out and borrowing requirements of the rule.

---

Authorizing Statute(s): US Code: 15 USC 78b, 78i(h), 78j, 78k-1, 78o, Name of Law: Sections 2, 9(h), 10, 11A, 15, 17, 17A, 19 and 23(a) of the Exchange Act
   US Code: 15 USC 78q, 78q-1, 78w(a)
  

Citations for New Statutory Requirements: US Code: 15 USC 78b, 78c(b), 78f, 78i(h), 78j Name of Law: Sections 2, 3(b), 6, 9(h), 10 of the Securities Exchange Act of 1934
US Code: 15 USC 78k-1, 78o, 78o-3, 78q, 78q-1 Name of Law: Sections 11A, 15, 15A, 17, 17A of the Securities Exchange Act of 1934
US Code: 15 USC 78s and 78w(a) Name of Law: Sections 19 and 23(a) of the Securities Exchange Act of 1934

---

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

---

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 70155	12/09/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 3135	01/20/2022
Did the Agency receive public comments on this ICR? No

---

Number of Information Collection (IC) in this ICR: 5

IC Title	Form No.	Form Name
Allocation notificiation requirement
Certification requirement
Demonstration requirement for fails to deliver on long sales
Pre borrow notification requirement
Pre-fail demonstration requirement

---

ICR Summary of Burden

	Total Request	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	8,487,475	7,975,536	0	0	511,939	0
Annual Time Burden (Hours)	1,357,997	1,276,087	0	0	81,910	0
Annual Cost Burden (Dollars)	0	0	0	0	0	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 increase in total aggregate burden hours from 1,276,087 to 1,357,997 is largely due to an increase in the number of average daily fail to deliver positions from 6,868 during 2017 to 7,450 in 2020.

---

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

---

Common Form ICR:  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:

(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: 01/20/2022

---