Reinstatement Emergency Request Memo

MEMORANDUM
TO:

Dominic Mancini
Deputy Director, Office of Information & Regulatory Affairs
Office of Management and Budget
Digitally signed by DAVID

FROM:

David L. Bottom DAVID BOTTOM BOTTOM
Date: 2022.04.20 19:36:28 -04'00'
Office of Information Technology
Securities and Exchange Commission

RE:

Emergency consideration of one collection of information pursuant to 44 U.S.C. 3507(j)
as implemented at 5 CFR 1320.13.
______________________________________________________________________________

The Securities and Exchange Commission (“Commission”) is requesting emergency
consideration of one collection of information pursuant to 44 U.S.C. 3507(j) as implemented at 5
CFR 1320.13. The collection of information is in 3235-0462, titled Display of Customer Limit
Orders (17 CFR 242.604). The collection of information in Rule 604 is part of the regulatory
structure that implements the goals and objectives of the national market system, including the
public availability of quotation information, fair competition, market efficiency, best execution and
disintermediation. Rule 604 furthers these goals and objectives by requiring specialists and market
makers to publish customer limit orders that are priced superior to the bids or offers being displayed
by each such specialist or market maker.
The information collected pursuant to Rule 604 is necessary to further the above-described
goals and objectives to facilitate the establishment of a national market system for securities. If the
required dissemination procedures are not adhered to, or adhered to inconsistently, there would be a
lack of transparency regarding trading interests that improve specialists’ and market makers’ quotes,
which could adversely investors by minimizing favorable execution opportunities and diminishing
access to the best available prices when they buy or sell securities. Emergency reinstatement would
also enable the Commission to better monitor and regulate existing market participants that are
subject to Rule 604. These functions, which are critical to the Commission’s statutory mandate to
facilitate the establishment of a national market system for securities, would be much more difficult
without the information collected pursuant to Rule 604.
In connection with this request, the Commission has determined:

1.

The collection of information is needed prior to the time periods established under the
Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq. (“PRA”) and applicable
regulations, 5 CFR 1320.1 et seq.

2.

The collection of information is essential to the mission of the Commission.

3.

The existing approval expired on Dec. 31, 2021. Therefore the Commission cannot
reasonably comply with the normal clearance requirement of the PRA and applicable
regulations because the use of normal clearance procedures is reasonably likely to prevent
or disrupt the collection of information.

4.

The Commission requests that OMB approve or disapprove the collection of
information by 4/29/2022.

Because the Commission is requesting a reinstatement of a previously approved
information collection on an emergency basis, the Commission has not yet specifically
solicited comments on this information collection. If reinstatement is granted, the
Commission will publish a notice soliciting comments in the Federal Register prior to
seeking an extension of the term of the information collection.
6. The Commission requests that OMB waive the notice requirement set forth
in 5 CFR 1320.5(a)(1)(iv).
5.

Thank you for considering this request.