3235-0778 Suporting Statement (2022 Proposed Partial Revision)

3235-0778 Suporting Statement (2022 Proposed Partial Revision).pdf

Market Data Infrastructure

OMB: 3235-0778

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 3235-0778 can be found here:

2024-04-18 - Extension without change of a currently approved collection

Document [pdf]

Download: pdf | pdf

SUPPORTING STATEMENT for the Paperwork Reduction Act Information Collection
Submission for the Market Data Infrastructure
3235-0778
Proposed Partial Revision
This submission is being made pursuant to the Paperwork Reduction Act of 1995, 44
U.S.C. Section 3501 et seq.
A.

JUSTIFICATION
1.

Necessity of Information Collection

The national market system for the collection, consolidation, and dissemination of
information with respect to quotations for and transactions in national market system (“NMS”)
stocks (“NMS information”) has been an essential element in the success of the U.S. securities
markets. Congress recognized the importance of market information to the U.S. securities
markets with the enactment of Section 11A of the Securities Exchange Act of 1934 (“Exchange
Act”) 1 and the Commission has adopted rules under Regulation NMS that govern the provision
of market information in the national market system. 2
On February 14, 2020, the Commission proposed to update and modernize the national
market system for the collection, consolidation, and dissemination of NMS information by,
among other things, amending Regulation NMS. 3 Pursuant to the statutory authority provided

Section 11A(a)(2) of the Exchange Act (15 U.S.C. 78k-1(a)(2)) directs the Commission, having
due regard for the public interest, the protection of investors, and the maintenance of fair and
orderly markets, to use its authority under the Exchange Act to facilitate the establishment of a
national market system for securities in accordance with the Congressional findings and
objectives set forth in Section 11A(a)(1) of the Exchange Act (15 U.S.C. 78k-1(a)(1)). Among
the findings and objectives in Section 11A(a)(1) are that “[n]ew data processing and
communications techniques create the opportunity for more efficient and effective market
operations” and “[i]t is in the public interest and appropriate for the protection of investors and
the maintenance of fair and orderly markets to assure . . . the availability to brokers, dealers and
investors of information with respect to quotations for and transactions in securities . . . . ” 15
U.S.C. 78k-1(a)(1)(B) and 15 U.S.C. 78k-1(a)(1)(C), respectively.

See 17 CFR 242.600, 601, 602, and 603.

See Securities Exchange Act Release No. 34-88216 (February 14, 2020), 85 FR 16726 (Mar. 24,
2020) (File No. S7-03-20) (“Proposing Release”).

by the Exchange Act, 4 including Sections 3(b), 5 5, 6 6, 7 11A, 8 and 23(a) 9 thereof, the
Commission adopted the amendments, with certain modifications, on December 9, 2020. 10
The amendments contain two key elements. First, the Commission updated the content
of NMS information that is required to be collected, consolidated and disseminated as part of the
national market system under Regulation NMS. Second, the Commission amended the method
by which “consolidated market data,” as now defined, is collected, consolidated and
disseminated by introducing a decentralized consolidation model with competing consolidators,
which replaces the centralized consolidation model that relies on exclusive securities information
processors (“exclusive SIPs”). 11
Today, NMS information is disseminated via a centralized consolidation model, whereby
the self-regulatory organizations (“SROs”) provide certain NMS information for each NMS
stock to an exclusive SIP. The exclusive SIP then consolidates this NMS information and makes
it available to market participants. 12 Market participants also may independently consolidate
NMS information by purchasing individual exchange proprietary market data products and
4

See 15 U.S.C. 78a.

15 U.S.C. 78c.

15 U.S.C. 78e.

15 U.S.C. 78f.

15 U.S.C. 78k-1.

15 U.S.C. 78w(a).

See Securities Exchange Act Release No. 34-90610 (December 9, 2020), 86 FR 18596 (April 9,
2020) (File No. S7-03-20) (“Adopting Release”).

An “exclusive processor” is defined in Section 3(a)(22)(B) of the Exchange Act as “any [SIP] or
[SRO] which, directly or indirectly, engages on an exclusive basis on behalf of any national
securities exchange or registered securities association, or any national securities exchange or
registered securities association which engages on an exclusive basis on its own behalf, in
collecting, processing, or preparing for distribution or publication any information with respect to
(i) transactions or quotations on or effected or made by means of any facility of such exchange or
(ii) quotations distributed or published by means of any electronic system operated or controlled
by such association.” A securities information processor is defined in Section 3(a)(22) of the
Exchange Act as “any person engaged in the business of (i) collecting, processing, or assisting,
participating in, or coordinating the distribution or publication of information with respect to
transactions in or quotations for any security (other than an exempted security) or (ii) distributing
or publishing (whether by means of a ticker tape, a communications network, a terminal display
device, or otherwise) on a current and continuing basis, information with respect to such
transactions or quotations.”

See Rule 603(b) of Regulation NMS. Rule 603(b) provides that all information for an individual
NMS stock must be disseminated through a single plan processor. 17 CFR 242.603(b). See Rule
600(b)(59), which defines a plan processor as “any self-regulatory organization or securities
information processor acting as an exclusive processor in connection with the development,
implementation and/or operation of any facility contemplated by an effective national market
system plan.” 17 CFR 242.600(b)(59).

consolidating that information for their own use, or obtain NMS information that has been
consolidated by a vendor that provides a data aggregation service.
The Commission amended Regulation NMS to better achieve the goal of assuring “the
availability to brokers, dealers and investors of information with respect to quotations for and
transactions in securities” 13 that is prompt, accurate, reliable, and fair. 14 The Commission
believes that the amendments promote fair and efficient markets, facilitate the best execution of
investor orders, and reduce information asymmetries between market participants who currently
rely on market data provided through the exclusive SIPs and those who purchase the proprietary
market data products offered by the national securities exchanges.
The amendments, as adopted, establish seven new collections of information.
1. Registration requirements and Form CC. Rule 614(a)(1)(i) requires each
competing consolidator to register with the Commission by filing Form CC
electronically in accordance with the instructions contained on the form.
Competing consolidators will be required to file amendments to the form in
accordance with the rule and file notice of its cessation of operations.
2. Competing consolidator duties and data collection. Rule 614(d)(1)-(4) requires
competing consolidators to (i) collect from each SRO the information with respect
to quotations for and transactions in NMS stocks as provided in Rule 603(b); (ii)
calculate and generate consolidated market data products; (iii) make consolidated
market data products available to subscribers with the required timestamps on
terms that are not unreasonably discriminatory; and (iv) timestamp the
information collected from the SROs at certain specified times.
3. Competing consolidators’ public posting of Form CC. Rule 614(c) requires
competing consolidators to make public on its website a direct URL hyperlink to
the Commission website that contains each effective initial Form CC, as
amended, order of ineffective initial Form CC, and Form CC amendments to an
effective Form CC.
4. Recordkeeping. Rule 614(d)(7) requires each competing consolidator to keep and
preserve at least one copy of all documents as defined in the rule for a period of
no less than five years, the first two in an easily accessible place. Rule 614(d)(8)
requires each competing consolidator, upon request of any representative of the
Commission, to promptly furnish copies of any documents to such representative.
5. Reports and Reviews. Rule 614(d)(5) requires competing consolidators to publish
on their websites certain monthly performance metrics. Rule 614(d)(6) requires
competing consolidators to publish certain monthly data quality information.
13

Section 11A(a)(1)(C)(iii), 15 U.S.C. 78k-1(a)(1)(C)(iii).

Section 11A(c)(1)(B), 15 U.S.C. 78k-1(c)(1)(B). Section 11A(c)(1)(B) provides the Commission
with the authority to prescribe rules and regulations as necessary or appropriate in the public
interest, for the protection of investors or otherwise in furtherance of the purposes of the
Exchange Act to “assure the prompt, accurate, reliable, and fair collection, processing,
distribution, and publication of information with respect to quotations for and transactions in such
securities and the fairness and usefulness of the form and content of such information.”

6. Amendment to the effective national market system plan(s) for NMS stocks. Rule
614(e) requires the participants to the effective national market system plan(s) for
NMS stocks to submit an amendment to such plan(s) within 150 days of the
effectiveness of the amendments that contain certain specified provisions.
7. Collection and dissemination of information by national securities exchanges and
national securities associations. The amendment to Rule 603(b) requires every
national securities exchange on which an NMS stock is traded and the national
securities association to make available to all competing consolidators and selfaggregators all information with respect to quotations for and transactions in
NMS stocks, including all data necessary to generate consolidated market data
products, in the same manner and using the same methods, including all methods
of access and using the same format as such exchange or association makes
available any information with respect to quotations for and transactions in NMS
stocks to any person.
These collections of information are necessary to further the national market system
objectives set forth in Section 11A(a)(1) of the Exchange Act. These objectives include the
economically efficient execution of orders; fair competition among broker-dealers, among
exchange markets, and between exchange markets and markets other than exchange markets; the
availability of information with respect to quotations for and transactions in securities; and the
practicability of brokers executing investors’ orders in the best market. Without the
amendments, the national market system for the collection, consolidation, and dissemination of
consolidated market data will not be modernized and updated. As discussed in the Adopting
Release, the current centralized consolidation model does not contain the data elements that
market participants, including investors, need to trade competitively in the markets and is
meaningfully slower than the proprietary data provided by the national securities exchanges. 15
Proposed Partial Revision to Collection of Information
In December of 2022, the Commission proposed amendments to Rules 600(b)(78) and
603(b) that would require the SROs to make available all data necessary to generate odd-lot
information to the exclusive SIPs. 16 The Proposed Amendments would also require the primary
listing exchange for each NMS stock to provide an indicator of the round lot size to the
applicable exclusive SIP for dissemination and to calculate and provide to competing
consolidators, self-aggregators, and the applicable exclusive SIP an indicator of the applicable
minimum pricing increment for dissemination. As discussed further below, the Proposed
Amendments would increase the burdens of the collection of information entitled “collection and
dissemination of information by national securities exchanges and national securities
15

See also Adopting Release, supra note 10, at 18698-702 (discussing phased transition period and
compliance schedule for the amendments); Proposed Amendments, infra note 16, at 80295
(discussing implementation status).

Securities Exchange Act Release No. 96494 (Dec. 14, 2022), 87 FR 80266 (Dec. 29, 2022)
(“Proposed Amendments”).

associations.” 17 The Proposed Amendments only affect the SRO Market Data Collection and
Dissemination information collection; the other information collections discussed herein are not
affected by the Proposed Amendments.
In addition, as discussed further below, the Commission is correcting Item 13 to remove
certain cost estimates that are the estimated dollar value (or “monetized” value) of the burden
hours in Item 12. These were previously included in Item 13 in error and are now being moved
to Item 12 for informational purposes. Specifically, the following information collections are
being corrected: Registration Requirements and Form CC, Competing Consolidators
Recordkeeping, Competing Consolidators Monthly Reports and Reviews, NMS Plan
Amendment, and SRO Market Data Collection and Dissemination.
2.

Purpose and Use of the Information Collection

The purpose of the information collection is to update and modernize the NMS
information that is collected, consolidated, and disseminated under the rules of the national
market system and the method by which such information is made available to market
participants. The registration requirement under Rule 614(a)(1) and (2) and Form CC provide
information to the Commission and market participants. The Commission will gather
information through the Form CC to determine whether to declare ineffective an initial Form
CC. The information will also be used by market participants to evaluate competing
consolidators. Under Rule 614, competing consolidators are required to keep certain records,
which facilitate the Commission’s oversight of competing consolidators, and to publish certain
monthly performance statistics, which provide transparency with respect to the services and
performance of competing consolidators. Competing consolidators and self-aggregators must
collect market data information from the SROs to generate consolidated market data products.
The SROs will need to collect market data information that they will then have to provide to
competing consolidators and self-aggregators for the purposes of generating consolidated market
data products. Finally, the SROs must file an amendment to the effective national market system
plan(s) to reflect the new role and functions of the plan(s). The collections of information are
necessary to further the national market system objectives set forth in Exchange Act Section
11A(a)(1) and Regulation NMS. These objectives include the economically efficient execution
of orders; fair competition among broker-dealers, among exchange markets, and between
exchange markets and markets other than exchange markets; the availability of information with
respect to quotations for and transactions in securities; and the practicability of brokers executing
investors’ orders in the best market.
3.

Consideration Given to Improved Information Technology

The amendments use information technology to lessen the burden on the respondents.
Form CC will be electronically filed with the Commission and publicly posted on the
Commission’s and competing consolidators’ websites. The amendments modernize the manner
in which consolidated market data, as now defined, is collected, calculated, and disseminated to
market participants by introducing competing consolidators who may compete for subscribers by
17

For brevity, this Supporting Statement also refers to this collection of information as “SRO
Market Data Collection and Dissemination.”

utilizing the latest information technology for the collection, consolidation and dissemination of
consolidated market data products. In addition, self-aggregators will be able to use the
information technology they choose to support their market data requirements. The Commission
believes that the amendments will address the issues raised about the latencies that exist with the
information technology that is currently used to collect, calculate, and disseminate NMS
information.
4.

Duplication

The amendments will not result in, or require the collection of, duplicate information that
is otherwise available in a similar form. While each SRO publishes its own market data via
proprietary data feeds for a fee, the proprietary data feeds do not provide the exact information in
a consolidated manner as required in the amendment.
5.

Effects on Small Entities

The Commission believes that the requirements under the amendments will not affect
small entities. 18 The amendments impose requirements on national securities exchanges and
FINRA, and on entities that act as competing consolidators. With respect to the national
securities exchanges, the Commission’s definition of a small entity is an exchange that has been
exempt from the reporting requirements of Rule 601 of Regulation NMS and that is not affiliated
with any person (other than a natural person) that is not a small business or small organization. 19
None of the national securities exchanges subject to the amendments fall within this definition.
Similarly, FINRA does not qualify as a small entity. 20 The Commission believes that no
competing consolidators will be small entities.
6.

Consequences of Not Conducting Collection

The information required by the amendments require national securities exchanges and
associations to make available to competing consolidators and self-aggregators the information
with respect to quotations for and transactions in NMS stocks that is necessary to generate
consolidated market data. Further, competing consolidators must collect, calculate and generate
consolidated market data products and make such data available to market participants. The
Commission will receive from competing consolidators information on Form CC, and competing
consolidators are required to maintain records and publish performance data and other
information on their websites on a monthly basis.
The Commission believes that the amendments promote fair and efficient markets,
facilitate the best execution of investor orders, and reduce information asymmetries between
market participants who currently rely on market data provided through the exclusive SIPs and
those who purchase the proprietary market data products offered by the national securities
18

See Adopting Release, supra note 10, at Part VI.

See 17 CFR 240.0-10(e).

See 13 CFR 121.201.

exchanges. Without the collection of information, the goals of Section 11A of the Exchange Act
and the rule’s intended benefits would not be achieved. The SROs would not be required to
make available to competing consolidators and self-aggregators quotation and transaction
information necessary to generate consolidated market data. Further, this would prevent
competing consolidators and self-aggregators from generating consolidated market data and
would prevent competing consolidators from making such data available to investors and other
market participants. In addition, if the information on Form CC is not collected, market
participants would not be able to compare and evaluate competing consolidator services and the
Commission would not be able to assess whether to declare an initial Form CC as ineffective.
7.

Inconsistencies with Guidelines in 5 CFR 1320.5(d)(2)

Competing consolidators are required to keep and preserve at least one copy of all
documents, including all correspondence, memoranda, papers, books, notices, accounts and such
other records as shall be made or received by it in the course of its business as such and in the
conduct of its business. The amendment requires competing consolidators to keep these
documents for a period of no less than five years, the first two years in an easily accessible place.
This requirement is consistent with current SEC rules for SROs. 21
There are no other special circumstances, and this collection is otherwise consistent with
the guidelines in 5 CFR 1320.5(d)(2).
8.

Consultations Outside the Agency

The Commission requested comment on the information collection requirements of the
amendments in the Proposing Release, 22 a copy of which is attached. The burden and costs for
filing ongoing Form CC Amendments were revised upon further Commission consideration and
the evaluation of a comment letter that stated that competing consolidators would amend their
fees more than once a year, which would require an amendment to a competing consolidator’s
Form CC. 23 The ongoing costs to post on its website a direct URL hyperlink to the
Commission’s website changed for the same reason. 24 The estimated burden and costs incurred
by potential competing consolidators to build or upgrade systems to comply with proposed Rules
614(d)(1)-(d)(4) were increased due to further Commission consideration and evaluation of the
view expressed by a commenter that the costs should be increased. 25 In addition, the
Commission and staff participate in ongoing dialogue with representatives of various market
participants through public conferences, meetings, and informal exchanges. Any comments
received on this rulemaking were posted on the Commission’s public website and made available
through www.sec.gov/rules/proposed.shtml. The Commission considered all comments received
21

See, e.g., Rule 17a-1, 17 CFR 240.17a-1.

See note 3 supra.

See Adopting Release, supra note 10, at 86 FR at 18709.

Id.

Id. at 18709-10, 18713, 18714.

prior to publishing the final rule, and explained in the Adopting Release how the final rule
responds to such comments, in accordance with 5 C.F.R. 1320.11(f).
Proposed Partial Revision to Collection of Information
In the Proposed Amendments, the Commission requested comment on the revised
estimates to the SRO Market Data Collection and Dissemination information collection. 26 Any
comments received on this proposed rulemaking will be posted on the Commission’s public
website, and made available through http://www.sec.gov/rules/proposed.shtml. The Commission
will consider all comments received prior to publishing the final rule, and will explain in any
adopting release how the final rule responds to such comments, in accordance with 5 C.F.R.
1320.11(f).
9.

Payment or Gift.

No payment or gift is provided to respondents.
10.

Confidentiality

The Form CC and amendments to the effective national market system plan(s) will not be
confidential; they will be posted on the Commission’s public website. Competing consolidators
will make available to subscribers consolidated market data products, which therefore will not be
confidential. Competing consolidator records will be available to the Commission and other
regulators. The reports and reviews of competing consolidators will be published on competing
consolidator websites and will not be confidential. Finally, the exchanges and associations will
make available to competing consolidators and self-aggregators quotation and transaction
information. Accordingly, no assurances of confidentiality are necessary.
11.

Sensitive Questions

The information collection collects basic personally identifiable information
(PII) that may include name, telephone and fax number, email address, user ID and job
title. In accordance with Section 208 of the E-Government Act of 2002, the agency has
conducted a Privacy Impact Assessment (PIA) of the SRO Rule Tracking
System/Electronic Form Filing System (SRTS/EFFS) PIA, in connection with this
collection of information. The SRTS/EFFS PIA, published on September 30, 2013, is
provided as a supplemental document and is also available at
https://www.sec.gov/privacy; this PIA is currently in the process of being updated.
The agency has determined that the information collection constitutes a system
of record for purposes of the Privacy Act and is covered under System of Records
Notice (SORN) # 70, published on February 15, 2018. SORN # 70 is provided as a
supplemental document and is also available at https://www.sec.gov/privacy.
26

See Proposed Amendments, supra note 16, at 80355.

12.

Burden of Information Collection

As noted above, the amendments establish new collections of information. The
Commission anticipates that the respondents will incur the following reporting, recordkeeping,
or third-party disclosure burdens.
Summary of Approximate Hourly Burdens
Name of
Information
Collection

Form CC
Form CC
Amendment Initial
Form CC
Amendment Ongoing
Form CC
Cessation
CC Duties and
Data
Collection

Public Posting
of Form CC Initial

Type of
Burden

A
Number of
Entities
Impacted

B
Annual
Responses
per Entity

C
Initial
Burden
per
Entity
per
Response

D
Initial
Burden
Annualized
per Entity
per
Response
C/3

E
Ongoing
Burden
per
Entity
per
Response

F
Annual
Burden
per
Entity
per
Response

G
Total
Annual
Burden
per
Entity

H
Total
Industry
Burden

F*B
(except
as
noted)
66.77
4

534.16
32

0
0

G*A
(except
as noted)

Small
Business
Entities
Affected

Reporting
Reporting

8
8

1
2

200.3
6

66.77
2

0 27
0

D+E
(except
as noted)
66.77
2

Reporting

6.15

36.9 28

295.2 29

Reporting

0.67

5.36

2 (market
data
aggregation
firms)
1 (brokerdealer)
2
(exclusive
SIPs)
2 (new
entrants)
1 (SRO)
8

2,200

733.33

1,320

2,053.33

4,106.66

2,200

733.33

1,320

2,053.33

4,400

1,466.67

1,320

2,786.66

5,573.33

8,800

2,933.33

1,320

4,253.33

8,506.66

1
1

8,800
0.5

2,933.33
0.167

1,320
0

4,253.33
0.167

4,253.33
1.336

0
0

Third Party

The ongoing burdens for Form CC are reflected in the following line describing Form CC
amendments.

6 (# of responses per entity in each subsequent year) x 6.15 hours (ongoing burden per entity per
response) = 36.9 hours.

36.9 hours (the annual burden per entity for each subsequent year) x 8 (# of entities impacted) =
295.2 hours.

Name of
Information
Collection

Public Posting
of Form CC Ongoing
CC
Recordkeeping
CC Monthly
Reports
NMS Plans
Amendment
SRO Market
Data

A
Number of
Entities
Impacted

Type of
Burden

B
Annual
Responses
per Entity

C
Initial
Burden
per
Entity
per
Response

D
Initial
Burden
Annualized
per Entity
per
Response
C/3

E
Ongoing
Burden
per
Entity
per
Response

F
Annual
Burden
per
Entity
per
Response

G
Total
Annual
Burden
per
Entity

H
Total
Industry
Burden

F*B
(except
as
noted)
1.5

G*A
(except
as noted)

Small
Business
Entities
Affected

Third Party

0.25

D+E
(except
as noted)
0.25

Recordkeeping

13.33

33.33

266.64

Reporting

20.5

6.833

17.833

214

1,712

Reporting

22.105 30

7.368

12.895 31

20.263

384.997

Third Party

220

73.33

396

469.33

7,978.61

Total Annual Burden

35,715.61

As discussed above, for certain of the collections of information, the Commission is
correcting Item 13 to remove certain cost estimates that are the monetized value of the burden
hours in Item 12. These were previously included in Item 13 in error and are now being moved
to Item 12 for informational purposes. The following chart provides the monetized value of the
estimated hour burdens for these collections of information. These values are being provided for
information purposes, and only to provide additional background details regarding the hour
burdens. Monetized values of hour burdens are not submitted to OMB for approval.
Summary of Approximate Monetized Hourly Burdens
(for informational purposes)
Name of
Information
Collection

Type of
Burden

Form CC

Reporting

A
Number
of
Entities
Impacted

B
Annual
Responses
per Entity

C
Initial
Value per
Entity per
Response

$93,540.10

D
Initial
Value
Annualized
per Entity
per
Response
C/3

E
Ongoing
Value per
Entity per
Response

$31,180.03

$0 32

F
Annual
Value per
Entity per
Response

G
Total
Annual
Value per
Entity

D+E
(except as
noted)
$31,180.03

F*B (except
as noted)
$31,180.03

H
Total Industry
Value
G*A (except
as noted)

$249,440.27

(420 initial burden hours per response filed jointly by respondents) / (19 respondents) = 22.105
hours per respondent.

(245 ongoing burden hours per response filed jointly by respondents) / (19 respondents) = 12.895
hours.

The ongoing value for Form CC are reflected in the following line describing Form CC
amendments.

Small
Business
Entities
Affected

Name of
Information
Collection

Type of
Burden

Form CC
Amendment Initial
Form CC
Amendment Ongoing
Form CC
Cessation
CC
Recordkeeping
CC Monthly
Reports
NMS Plans
Amendment
SRO Market
Data

A
Number
of
Entities
Impacted

B
Annual
Responses
per Entity

C
Initial
Value per
Entity per
Response

D
Initial
Value
Annualized
per Entity
per
Response
C/3

E
Ongoing
Value per
Entity per
Response

F
Annual
Value per
Entity per
Response

G
Total
Annual
Value per
Entity

H
Total Industry
Value

F*B (except
as noted)
$1,868.00

$14,944.00

0
0

G*A (except
as noted)

Small
Business
Entities
Affected

Reporting

$2,802

$934.00

D+E
(except as
noted)
$934.00

Reporting

$2,872.05

$17,232.30

Reporting

$934

$311.33

$137,858.40
each year
thereafter
$2,490.64

Recordkeeping

$8,720

$2,906.67

$4,360

$7,266.67

$58,133.36

Reporting

$6,708.92

$2,236.31

$3,768.50

$6,004.81

$72,057.72

$576,461.76

Reporting

$9.217.89

$3,072.63

$5,377.11

$8,449.74

$160,545

Third Party

$70,865

$23,621.67

$128,064

$151,685.67

$2,578,656.39

Registration Requirements and Form CC
The respondents to this collection of information will be the 8 entities that the
Commission estimates may register as competing consolidators. Each SIP that wishes to register
as a competing consolidator must file a Form CC to register with the Commission. Thereafter,
each competing consolidator must file an annual report and an amendment, if necessary.
The Commission estimates that each competing consolidator will incur an initial, onetime reporting burden of 200.3 hours to complete the initial Form CC with the information
required, including all exhibits and file the Form CC with the Commission (including 0.3 hours
to access the Commission’s Electronic Form Filing System). This would result in an estimated
annual burden of 66.77 hours per respondent, and 534.16 hours in the aggregate. 33 Competing
consolidators will have to submit amendments to Form CC when necessary, including Annual
Reports correcting information that has become inaccurate or incomplete, and Material
Amendments that must be filed prior to any material change in the pricing, connectivity, or
products offered. The Commission estimates that, during the first year, a competing consolidator
will incur an initial reporting burden per response (annualized) of 6 hours to complete and file
such materials. In each year thereafter, the Commission estimates that a competing consolidator
will incur an ongoing annual burden of approximately 6.15 hours per response. This would result
in estimated annual burdens per respondent of 4 hours 34 during the first year and 36.9 hours each

66.77 (initial one-time burden, annualized over the three-year approval period) x 8 respondents =
534.16 hours.

2 (# of responses per entity during the first year) x 2 hours (initial burden annualized per entity
per response) = 4 hours.

year thereafter. 35 Correspondingly, the aggregate industry burdens would be 32 hours during
the first year 36 and 295.2 hours each year thereafter. 37 When a competing consolidator ceases
operation, it must prepare and file a cessation form on Form CC. The Commission estimates that
each competing consolidator would incur an initial one-time reporting burden of 2 hours to
prepare and file the cessation form. This would result in an estimated annual burden of 0.67
hours per respondent, and 5.36 hours annually in the aggregate. 38
The Commission estimates an initial monetized value of $93,540.10 for internal legal
costs related to the registration as competing consolidators. This would result in an estimated
annual monetized value for the hour burden of $31,180.03 per respondent. 39 This would result in
an estimated annual monetized value for the hour burden for the industry of $249,440.27. When
a competing consolidator is required to amend its Form CC, it will have to file such amendment
with the Commission. This would result in an estimated annual monetized value for each
respondent of $934 per response during the first year and $2,872.05 per response each year
thereafter. This would result in an estimated annual monetized value of $1,868 per respondent in
the first year and $17,232 per respondent each year thereafter. 40 This would result in an
estimated annual monetized value for the industry of $14,944 during the first year and
$137,858.40 each year thereafter. 41 When a competing consolidator ceases operation, it must
file a cessation form. The Commission estimates that each competing consolidator would incur
an initial monetized value of $934 for internal legal costs related to filing the cessation form.
This would result in an estimated annual monetized value of $311.33 per respondent, and
$2,490.64 annually in the aggregate.
Competing Consolidator Duties and Data Collection
The respondents to this collection of information will be the 8 entities that the
Commission estimates may act as competing consolidators. Each entity must collect from the
35

6 (# of responses per entity in each subsequent year) x 6.15 hours (ongoing burden per entity per
response) = 36.9 hours.

4 hours (the annual burden per entity for the first year) x 8 (# of entities impacted) = 32 hours.

36.9 hours (the annual burden per entity for each subsequent year) x 8 (# of entities impacted) =
295.2 hours.

0.67 (initial one-time burden, annualized over the three-year period) + 0 (no ongoing burden) =
0.67 hours.

$31,180.03 (initial, one-time value, annualized over the three-year period) + $0 (ongoing value) =
$31,180.03.

2 (# of responses per entity during the first year) x $934 (initial cost annualized per entity per
response) = $1,868; 6 (# of responses per entity each year after the first year) x $2,872.05
(ongoing cost per entity per response) = $17,232.30.

$1,868 (total annual cost per entity in the first year) x 8 (# of entities impacted) = $14,944 (total
industry costs during the first year); $17,232.30 (total annual cost per entity in each year after the
first year) x 8 (# of entities impacted) = $137,858.40 (total industry costs in each year after the
first year).

SROs quotation and transaction information for NMS stocks, calculate and generate consolidated
market data products, and make available to subscribers consolidated market data products.
The Commission expects different entities to act as competing consolidators: two market
data aggregation firms, one broker-dealer that currently aggregates market data for internal uses,
two entities that currently operate as exclusive SIPs, two new entrants, and one SRO. The
Commission has estimated the burdens for different types of entities based on the anticipated
changes to their systems necessary to collect SRO quotation and transaction information,
calculate and generate consolidated market data products, and make available consolidated
market data products to subscribers.
The Commission estimates that each market data aggregation firm will incur an initial,
one-time burden of 2,200 hours to modify its systems in order to operate as a competing
consolidator. The Commission further estimates that each market data aggregation firm will
incur an ongoing burden of 1,320 hours to maintain its systems. This would result in an
estimated annual burden of 2,053.33 hours per respondent and 4,106.66 hours annually in the
aggregate. 42
The Commission estimates that a broker-dealer will incur an initial, one-time burden of
2,200 hours to modify its systems in order to act as a competing consolidator. The Commission
further estimates that the broker-dealer will incur an ongoing burden of 1,320 hours to maintain
its systems. This would result in an estimated annual burden of 2,053.33 hours per respondent 43
and 2,053.33 hours in the aggregate.
The Commission estimates that each exclusive SIP will incur an initial, one-time burden
of 4,400 hours to modify its systems in order to act as a competing consolidator. The
Commission further estimates that each exclusive SIP will incur an ongoing burden of 1,320
hours to maintain its systems. This would result in an estimated annual burden of 2,786.66 hours
per respondent 44 and 5,573.33 hours annually in the aggregate.
The Commission estimates that each new entrant will incur an initial, one-time burden of
8,800 hours to build systems in order to act as a competing consolidator. The Commission
further estimates that each new entrant will incur an ongoing burden of 1,320 hours to maintain
its systems. This would result in an estimated annual burden of 4,253.33 hours per respondent 45
and 8,506.66 hours annually in the aggregate.

733.33 (initial one-time burden, annualized over the three-year period) + 1,320 (ongoing burden)
= 2,053.33 hours.

1,466.67 (initial one-time burden, annualized over the three-year period) + 1,320 (ongoing
burden) = 2,786.67 hours.

2,933.33 (initial one-time burden, annualized over the three-year period) + 1,320 (ongoing
burden) = 4,253.33 hours.

The Commission estimates that each SRO will incur an initial, one-time burden of 8,800
hours to build systems in order to act as a competing consolidator. The Commission further
estimates that each SRO will incur an ongoing burden of 1,320 hours to maintain its systems.
This would result in an estimated annual burden of 4,253.33 hours per respondent 46 and 4,253.33
hours annually in the aggregate.
Competing Consolidators Public Posting of Form CC
The respondents to this collection of information will be the 8 entities that the
Commission estimates may register as competing consolidators. Each entity must make public
on its website a direct URL hyperlink to the Commission’s website that contains each effective
initial Form CC, order of ineffective initial Form CC, and amendments to effective Form CCs.
The Commission estimates that each competing consolidator will incur an initial, one-time
burden of 0.5 hours to publicly post the URL hyperlink and ensure the link is correct; when
annualized, this results in an annual burden of 1.336 hours. The Commission further estimates
that each competing consolidator will incur an ongoing burden of 1.5 hours 47 annually to
maintain the link. This would result in an estimated annual burden of 1.336 hours per respondent
for the initial public posting of the Form CC 48 and 12 hours annually per respondent to maintain
the link. 49
Competing Consolidators Recordkeeping
The respondents to this collection of information will be the 8 entities that the
Commission estimates may to act as competing consolidators. Each entity must keep and
preserve at least one copy of all documents made or received by it in the course of its business
and in the conduct of its business. These documents must be kept for a period of no less than
five years, the first two years in an easily accessible place. The Commission estimates that each
competing consolidator will incur an initial, one-time burden of 40 hours to comply with the
recordkeeping requirements. The Commission further estimates that each competing
consolidator will incur an ongoing burden of 20 hours to maintain the recordkeeping. This
would result in an estimated annual burden of 33.33 hours per respondent 50 and 266.64 hours
annually in the aggregate.
The Commission estimates an initial monetized value of $8,720 and an ongoing
monetized value of $4,360 per year, for internal legal costs related to recordkeeping. This would
46

2,933.33 (initial one-time burden, annualized over the three-year period) + 1,320 (ongoing
burden) = 4,253.33 hours.

0.25 (ongoing burden per response per year) * 6 (ongoing responses per respondent per year) =
1.5 hours per respondent per year

0.167 (initial one-time burden, annualized over the three-year period) x 8 (respondents) = 1.336
hours.

1.5 (hours per respondent per year) * 8 (respondents) = 12 hours.

13.33 (initial one-time burden, annualized over the three-year period) + 20 (ongoing burden) =
33.33 hours.

result in an estimated annual monetized value for the hour burden of $7,266.67 per respondent. 51
The Commission estimates that there will be 8 competing consolidator respondents. This would
result in an estimated annual monetized value of the hour burden for the industry of $58,133.36.
Competing Consolidators Monthly Reports and Reviews
The respondents to this collection of information will be the 8 entities that the
Commission estimates may act as competing consolidators. Each entity must produce monthly
reports. The Commission estimates that each competing consolidator will incur an initial burden
of 246 hours to produce the monthly reports and post them publicly. 52 Accordingly, the
estimated initial burden per respondent, per response is 20.5 hours. 53 The Commission further
estimates that each competing consolidator will incur an ongoing burden of 132 hours to produce
and post the monthly reports. 54 This would result in an estimated annual burdens of
approximately 214 hours per respondent and approximately 1,712 hours for all respondents. 55
The Commission estimates an initial annual monetized value per respondent will be
$80,507, and the total initial annual value for all respondents will be $644,056. 56 Accordingly,
the Commission estimates that the initial value per respondent, per response will be
approximately $6,708.92, 57 and that the ongoing annual value per respondent will be $45,222,
and the total ongoing value for all respondents will be $361,776. 58 Accordingly, the
Commission estimates that the annual ongoing value per respondent, per response will be

$2,906.67 (initial, one-time value, annualized over a three-year period) + $4,360 (ongoing value)
= $7,266.67.

See Adopting Release, supra note 10, 86 FR at 18718.

246 hours (initial burden per respondent per year) / 12 (months per year) = 20.5 hours (initial
burden per respondent, per response).

The Commission estimates that each competing consolidator would incur an average burden of
11 hours to prepare and make publicly available a monthly report in the format required by Rules
614(d)(5) and (d)(6). See Adopting Release, supra note 10, 86 FR at 18719. 11 hours (ongoing
burden per respondent for each monthly report) x 12 months = 132 hours (ongoing burden per
respondent, per year).

6.833 hours (initial burden annualized over a three-year period per entity, per response) + 11
hours (ongoing burden per entity, per response) = 17.833 hours (annual burden per respondent,
per response). 17.833 hours (annual burden per respondent, per response) x 12 (# of responses
per year) = 213.996 hours (total annual burden per respondent). 8 (# of respondents) x 213.966
hours (total annual burden per respondent) = 1,711.968 hours (total burden of all respondents).

See Adopting Release, supra note 10, 86 FR at 18718.

$80,507 (total initial annual value per respondent) / 12 (# of responses per year) = $6,708.92
(initial annual value per respondent, per response). Correspondingly, the Commission estimates
that the initial annual value per entity, per response, annualized over a three-year period is
$2,236.31.

See Adopting Release, supra note 10, at 18719.

approximately $3,768.50. 59 This would result in an estimated annual value of $6,004.81 per
respondent. 60 The Commission estimates that there will be 8 competing consolidator
respondents. This would result in an estimated annual total value per respondent of $72,057.72
and a total value to the industry of $576,461.76. 61
NMS Plans Amendment
The respondents to this collection of information will be the 18 national securities
exchanges and the single national securities association who are participants in the effective
national market system plan(s) for NMS stocks. The respondents must amend the current
effective national market system plans to reflect the decentralized consolidation model for
disseminating consolidated market data products as well as make technology changes to collect
and provide timestamps. The Commission estimates that the participants collectively will incur
an initial, one-time reporting burden of 420 hours of legal and compliance time to prepare,
amend, and file the NMS plans. The Commission further estimates that the participants
collectively will incur an ongoing burden of 245 hours related to the NMS amendment (for
maintaining the required timestamps, conducting assessments of competing consolidators,
preparing an annual report, maintaining the list of the primary listing exchange for each NMS
stock, and calculating gross revenues). Because the Commission expects the 19 SRO
respondents to collectively file one response, this would result in an estimated annual burden of
20.263 hours per respondent 62 and 384.997 hours annually in the aggregate.
The Commission estimates an initial monetized value of $9,217.89 and an ongoing
monetized value of $5,377.11 per year, for internal legal costs related to preparing the NMS plan
amendment. This would result in an estimated annual monetized value for the hour burden of
$8,449.74 per respondent. 63 Because the Commission expects the SRO respondents to
collectively file one response, this would result in an annual monetized value of the hour burden
for the industry of $160,545.
SRO Market Data Collection and Dissemination

$45,222 (ongoing annual value per respondent) / 12 (# of responses per year) = $3,768.50 (annual
ongoing value per respondent, per response).

$2,236.31 (initial value per respondent, per response, annualized over a three-year period) +
$3,768.50 (ongoing value per respondent, per response) = $6,004.81 (annual value per entity, per
response.

$6,004.81 (annual value per respondent, per response) x 12 (# of responses per year) =
$72,057.72; $72,057.72 (total annual value per respondent) x 8 (# of respondents) = $576,461.76
(total value of all respondents).

7.368 (initial one-time burden, annualized over a three-year period) + 12.895 (ongoing burden) =
20.263 hours.

$3,072.63 (initial, one-time value, annualized over the three-year period) + $5,377.11 (ongoing
value) = $8,449.74.

The respondents to this collection of information will be the 16 national securities
exchanges on which NMS stocks are traded and the single national securities association. Each
of these SROs must make available to all competing consolidators and self-aggregators all
information with respect to quotations for and transactions in NMS stocks, including all data
necessary to generate consolidated market data, in the same manner and using the same methods,
including all methods of access and the same format, as such SRO makes available any
information with respect to quotations for and transactions in NMS stocks to any person.
The Commission estimates that each of these SROs will incur an initial, one-time
reporting burden of 220 hours of legal, compliance, information technology, and business
operations personnel time to prepare and modify systems to generate and make available the
market data. The Commission further estimates that each SRO will incur an ongoing reporting
burden of 396 hours to collect the information necessary to generate consolidated market data.
This would result in an estimated annual burden of 469.33 hours per respondent 64 and 7,978.61
hours annually in the aggregate.
The Commission estimates an initial monetized value of $70,865 and an ongoing
monetized value of $128,064 per year, for internal legal and programming costs related to
collecting and disseminating market data. This would result in an estimated annual monetized
value for the hour burden of $151,685.67 per respondent 65 and an estimated annual monetized
value of the hour burden for the industry of $2,578,656.
PROPOSED PARTIAL REVISION: New Burdens Associated with the Proposed
Amendments
The Commission believes that the December 2022 amendments would result in the two
new hourly burdens. These are discussed in more detail below.
Summary of Proposed New Hourly Burdens
Name of
Informatio
n
Collection

SRO
Market

Type
of
Burde
n

Third
Party

A
Number
of
Entities
Impacte
d

B
Annual
Response
s per
Entity

C
Initial
Burden
per
Entity
per
Respons
e

D
Initial
Burden
Annualize
d per
Entity per
Response
C/3

3.67

E
Ongoing
Burden
per
Entity
per
Respons
e

19.8

F
Annual
Burden
per
Entity
per
Respons
e
D+E
(except
as
noted)
23.47

G
Total
Annua
l
Burde
n per
Entity
F*B
(excep
t as
noted)
23.47

H
Total
Industr
y
Burden
G*A
(except
as
noted)

398.99

Small
Busines
s
Entities
Affecte
d

73.33 hours (initial one-time burden, annualized over the three-year period) + 396 hours (ongoing
burden) = 469.33 hours.

($23,621.67 initial, one-time value, annualized over the three-year period) + ($128,064 ongoing
value) = $151,685.67.

Data -Odd-lot
informatio
n to
exclusive
SIPs
SRO
Market
Data -Round lot
and
minimum
pricing
increment
indicators

Third
Party

16.67

24.67

98.68

Total

493.4

883.39

In the Proposed Amendments, the Commission proposed to amend Rule 603(b) to require
SROs to make available all data necessary to generate odd-lot information to the exclusive SIPs,
which could increase the burdens under the SRO Market Data Collection and Dissemination
information collection. 66 The Commission estimates that this proposed requirement would add
11 initial burden hours 67 and 19.8 annual burden hours 68 to its previous estimates for the SRO
Market Data Collection and Dissemination information collection. 69 This would result in an
66

The SROs already provide certain quotation information to the exclusive SIPs, and many SROs
already provide odd-lot quotation information to customers through their proprietary data feeds.
Nevertheless, providing the exclusive SIPs with the data necessary to generate odd-lot
information may entail additional burdens. Specifically, technical development work may be
needed to direct odd-lot quotations to the exclusive SIPs and to expand the capacity of the
existing connections through which the SROs provide data to the exclusive SIPs to support the
additional message traffic associated with odd-lot quotations. See Proposed Amendments, supra
note 16, at 80354-55.

The Commission estimates the monetized initial burden for this requirement to be $3,929. The
Commission derived this estimate based on per hour figures from SIFMA’s Management &
Professional Earnings in the Securities Industry 2013, modified to account for an 1,800-hour
work-year and inflation, and multiplied by 5.35 to account for bonuses, firm size, employee
benefits, and overhead: [(Compliance Manager at $344 for 5.25 hours) + (Attorney at $462 for
3.5 hours) + (Sr. Systems Analyst at $316 for 1 hour) + (Operations Specialist at $152 for 1.25
hours)] = 11 initial burden hours and $3,929.

The Commission estimates the monetized ongoing, annual burden for this requirement to be
$7,050. The Commission derived this estimate based on per hour figures from SIFMA’s
Management & Professional Earnings in the Securities Industry 2013, modified to account for an
1,800-hour work-year and inflation, and multiplied by 5.35 to account for bonuses, firm size,
employee benefits, and overhead: [(Compliance Manager at $344 for 10.6 hours) + (Attorney at
$462 for 3.4 hours) + (Sr. Systems Analyst at $316 for 5.8 hours)] = 19.8 annual burden hours
and $7,050.

These estimates represent 5% of the existing burdens for the SRO Market Data Collection and
Dissemination information collection because the SROs already collect the data necessary to
generate odd-lot information and this information is only a subset of consolidated market data as
defined in the MDI Rules. See Proposed Amendments, supra note 16, at 80354-55.

estimated annual burden of 23.47 hours per respondent 70 and 398.99 hours annually in the
aggregate.
In addition, the Proposed Amendments would require the primary listing exchange for
each NMS stock to provide an indicator of the round lot size to the applicable exclusive SIP for
dissemination and to calculate and provide to competing consolidators, self-aggregators, and the
applicable exclusive SIP an indicator of the applicable minimum pricing increment for
dissemination. 71 This would also increase the burden estimates for the SRO Market Data
Collection and Dissemination information collection. Specifically, the Commission estimates
that these proposed requirements would add 50 initial burden hours 72 and 32 annual burden
hours 73 for each of the five primary listing exchanges. This would result in an estimated annual
burden of 24.67 hours per respondent 74 and 493.4 hours annually in the aggregate.
13.

Costs to Respondents

The Commission believes that respondents will incur costs in connection with the
amendment. The Commission anticipates that the respondents will incur the following initial
and annual cost burdens.
Summary of Dollar Costs
Name of
Information
Collection

Form CC

Type of
Burden

Reporting

A
Number of
Entities
Impacted

B
Annual
Responses
per Entity

C
Initial Cost
per Entity
per
Response
$50

D
Initial Cost
Annualized
per Entity
per
Response
C/3
$16.67

E
Ongoing
Cost per
Entity per
Response
$25

F
Annual Cost
per Entity per
Response

G
Total Annual
Cost per
Entity

D+E (except
as noted)
$41.67

F*B (except
as noted)
$41.67

H
Total Industry
Cost
G*A (except as
noted)
$333.36

3.67 hours (initial one-time burden, annualized over the three-year period) + 19.8 hours (ongoing
burden) = 23.47 hours.

The primary listing exchange is already required to calculate the applicable round lot size and
provide it to competing consolidators and self-aggregators under the MDI Rules, and the
incremental burden of providing this indicator to the two exclusive SIPs is likely to be minimal.
However, calculating the applicable minimum pricing increment and providing it to competing
consolidators, self-aggregators, and the exclusive SIPs would entail additional burdens.
Specifically, primary listing exchanges would need to program systems to calculate the applicable
minimum pricing increment for each NMS stock that they list each quarter based on its Time
Weighted Average Quoted Spread and to include this information in the data that they provide to
competing consolidators, self-aggregators, and the exclusive SIPs. See Proposed Amendments,
supra note 16, at 80354-55.

The Commission estimates the monetized initial burden for this requirement to be $19,000 per
primary listing exchange. See Proposed Amendments, supra note 16, at 80333.

The Commission estimates the monetized ongoing, annual burden for this requirement to be
$9,000 per primary listing exchange. Id.

16.67 hours (initial one-time burden, annualized over the three-year period) + 8 hours (ongoing
burden) = 24.67 hours.

Small
Business
Entities
Affected
0

Name of
Information
Collection

CC Duties
and Data
Collection

Public
Posting of
Form CC Initial
Public
Posting of
Form CC Ongoing
CC
Monthly
Reports

Type of
Burden

A
Number of
Entities
Impacted

B
Annual
Responses
per Entity

C
Initial Cost
per Entity
per
Response

D
Initial Cost
Annualized
per Entity
per
Response
C/3

E
Ongoing
Cost per
Entity per
Response

F
Annual Cost
per Entity per
Response

G
Total Annual
Cost per
Entity

D+E (except
as noted)

F*B (except
as noted)

Third
Party

H
Total Industry
Cost
G*A (except as
noted)

Small
Business
Entities
Affected

2 (market
data
aggregation
firms)
1 (brokerdealer)
2 (SIPs)
2 (new
entrants)
1 (SRO)
8

$826,750

$275,583.33

$5,141,895

$5,417,478.33

$10,834,956.66

$826,750

$275,583.33

$5,141,895

$5,417,478.33

1
1

$1,445,500
$2,683,000

$481,833.33
$894,333.33

$5,141,895
$5,141,895

$5,623,728.33
$6,036,228.33

$11,247,456.66
$12,072,456.66

0
0

1
1

$2,683,000
0

$894,333.33
0

$5,141,895

$6,036,228.33
$0

0
0

Third
Party

Reporting

$266.67 75

$266.67

$2,133.36

Third
Party

$800

$266.67

Total Annual Costs

$45,611,043.36

Registration Requirements and Form CC
As noted above, the respondents to this collection of information will be the 8 entities
that the Commission estimates may act as competing consolidators. Each competing
consolidator will register with the Commission by filing and digitally signing Form CC through
the EFFS system. The Commission estimates an initial external cost of $50 to obtain digital IDs
to sign Form CC and ongoing external costs of $25 per year for the same. This would result in
an estimated annual cost of $41.67 76 and an estimated annual cost for the industry of $333.36.
Competing Consolidator Duties and Data Collection
As noted above, the respondents to this collection of information will be the 8 entities
that the Commission estimates may act as competing consolidators. Each entity must collect
75

The hour burden for this information collection has twelve responses per year per respondent, bu t
the cost burden has only one response per year per respondent. Accordingly, for purposes of the
ROCIS entry, we divided the annual cost per entity by 12 ($266.67/12 = $22.2225) so it could be
included in the same worksheet as the hour burden.

$16.67 (initial, one-time cost, annualized over the three-year period) + $25 (ongoing cost) =
$41.67.

from the SROs quotation and transaction information for NMS stocks, calculate and generate
consolidated market data products, and make available such products to subscribers.
The Commission expects different entities to register as competing consolidators: two
market data aggregation firms, one broker-dealer, two entities that currently operate as exclusive
SIPs, two new entrants, and one SRO. The Commission has estimated the burdens for different
types of entities based on the anticipated changes to their systems necessary to collect SRO
quotation and transaction information, calculate and generate consolidated market data products,
and make available such products to subscribers.
The Commission estimates an initial cost of $826,750 and an ongoing cost of $5,141,895
per year for market data aggregation firms that act as competing consolidators, for internal
programming, legal, and external fees related to collect, consolidate, and aggregate market data.
This would result in an estimated annual cost of $5,417,478.33 per respondent 77 and an
estimated annual cost for the industry of $10,834,956.66.
The Commission estimates an initial cost of $826,750 and an ongoing cost of $5,141,895
per year for broker-dealer firms that act as competing consolidators, for internal programming,
legal, and external fees related to collect, consolidate, and aggregate market data. This would
result in an estimated annual cost of $5,417,478.33 per respondent 78 and an estimated annual
cost for the industry of $5,417,478.33.
The Commission estimates an initial cost of $1,445,500 and an ongoing cost of
$5,141,895 per year for exclusive SIPs that act as competing consolidators, for internal
programming, legal, and external fees related to collect, consolidate, and aggregate market data.
This would result in an estimated annual cost of $5,623,728.33 per respondent 79 and an
estimated annual cost for the industry of $11,247,456.66.
The Commission estimates an initial cost of $2,683,000 and an ongoing cost of
$5,141,895 per year for new entrants that act as competing consolidators, for internal
programming, legal, and external fees related to collect, consolidate, and aggregate market data.
This would result in an estimated annual cost of $6,036,228.33 per respondent 80 and an
estimated annual cost for the industry of $12,072,456.66.
The Commission estimates an initial cost of $2,683,000 and an ongoing cost of
$5,141,895 per year for the SRO that acts as a competing consolidator, for internal programming,
77

$275,583.33 (initial, one-time cost, annualized over the three-year period) + $5,141,895 (ongoing
cost) = $5,417,478.33.

$481,833.33 (initial, one-time cost, annualized over the three-year period) + $5,141,895 (ongoing
cost) = $5,623,728.33.

$894,333.33 (initial, one-time cost, annualized over the three-year period) + $5,141,895 (ongoing
cost) = $6,036,228.33.

legal, and external fees related to collect, consolidate, and aggregate market data. This would
result in an estimated annual cost of $6,036,228.33 per respondent 81 and an estimated annual
cost for the industry of $6,036,228.33.
Competing Consolidators Monthly Reports and Reviews
As noted above, the respondents to this collection of information will be the 8 entities
that the Commission estimates may act as competing consolidators. Each entity must produce
monthly reports and maintain them on a website. The Commission estimates an initial external
cost of $800 for an external website developer to create the website and no ongoing external
costs. This would result in an estimated annual cost of $266.67 82 and an estimated annual cost
for the industry of $2,133.36.
14.

Cost to Federal Government

The Commission estimates it will cost the federal government $630,927 in order to build
out the current Form CC in the EFFS/SRTS system, which is $210,309 per year over three years.
The Commission previously estimated that it would cost $750,000 but is revising this estimate
downward in light of more recent technology budget planning information.
15.

Changes in Burden

The Commission has revised its burden estimate for the collections of information, as
summarized in this chart:
Name of
Information
Collection

Annual Industry
Burden/Cost

Annual Industry
Burden/Cost
Previously
Reviewed

Increase (Decrease)
in Burden/Cost

Reason for Change

Burden hour increases as a result of the Proposed Amendments
SRO Market
Data-- Odd-lot
information to
exclusive SIPs

389.99

7,978.61

389.99

Additional burdens resulting
from Proposed Amendments

SRO Market
Data-- Round
lot and

493.4

7,978.61

493.4

Additional burdens resulting
from Proposed Amendments

$894,333.33 (initial, one-time cost, annualized over the three-year period) + $5,141,895 (ongoing
cost) = $6,036,228.33.

$266.67 (initial, one-time cost, annualized over the three-year period) + 0 (ongoing cost) =
$266.67.

minimum
pricing
increment
indicators
Cost reductions to remove monetized cost burdens
CC
Recordkeeping
NMS Plans
Amendment
SRO Market
Data
Form CC

$58,133.36

($58,133.36)

$160, 545

($160, 545)

$2,578,656.39

($2,578,656.39)

$333.36

$249,573.60

($249,240.24)

Form CC
Amendment-Ongoing
CC Monthly
Reports

$137,858.40

($137,858.40)

$2,133.36

$578,594.88

($576,461.52)

Removing monetized cost
burden
Removing monetized cost
burden
Removing monetized cost
burden
Removing monetized cost
burden
Removing monetized cost
burden
Removing monetized cost
burden

Burden hour increases as a result of the Proposed Amendments
SRO Market Data Collection and Dissemination
As discussed above, the Proposed Amendments would increase the burdens of the SRO
Market Data Collection and Dissemination information collection. Specifically, the requirement
for SROs to make available all data necessary to generate odd-lot information to the exclusive
SIPs and for the primary listing exchange for each NMS stock to calculate and provide to
competing consolidators, self-aggregators, and the applicable exclusive SIP an indicator of the
applicable minimum pricing increment for dissemination would add 883.39 hours (389.99 +
493.4) annually in the aggregate.
Cost reductions to remove monetized cost burdens
Competing Consolidators Recordkeeping
With respect to costs to respondents for Competing Consolidators Recordkeeping, the
Commission initially estimated an initial cost of $8,720 and an ongoing cost of $4,360 per year,
for internal legal costs related to recordkeeping. This would result in an estimated annual cost of
$7,266.67 per respondent. 83 The Commission estimates that there will be 8 competing
consolidator respondents. This would result in an estimated annual cost for the industry of
$58,133.36.
hours.
83

The Commission is reducing this estimate to zero as it is a monetized estimate of burden

$2,906.67 (initial, one-time cost, annualized over a three-year period) + $4,360 (ongoing cost) =
$7,266.67.

NMS Plans Amendment
With respect to costs to respondents for the NMS Plans Amendment, the Commission
initially estimated an initial cost of $9,217.89 and an ongoing cost of $5,377.11 per year, for
internal legal costs related to preparing an NMS Plan amendment. This would result in an
estimated annual cost of $8,449.74 per respondent 84 and an estimated annual cost for the
industry of $160,545.
hours.

The Commission is reducing this estimate to zero as it is a monetized estimate of burden

SRO Market Data Collection and Dissemination
With respect to costs to respondents for SRO Market Data Collection and Dissemination,
the Commission initially estimated an initial cost of $70,865 and ongoing cost of $128,064 per
year, for internal legal and programming costs related to collecting and disseminating market
data. This would result in an estimated annual cost of $151,685.67 per respondent. 85 The
Commission estimates that there will be 17 SRO respondents. This would result in an estimated
annual cost for the industry of $2,578,656.
hours.

The Commission is reducing this estimate to zero as it is a monetized estimate of burden

Registration Requirements and Form CC
With respect to costs to respondents for Registration Requirements and Form CC, the
Commission initially estimated an initial cost of $93,590.10 86 for internal legal costs related to
the registration as competing consolidators. This would result in an estimated annual cost of
$31,196.70 per respondent. 87 The Commission estimates that there will be 8 competing
consolidator respondents. This would result in an estimated annual cost for the industry of
$249,573.60.
The Commission is reducing these estimates to remove monetized estimates of burden
hours. As discussed above, the only remaining external costs related to this information
collection are an initial external cost of $50 to obtain digital IDs to sign Form CC and ongoing
84

$3,072.63 (initial, one-time cost, annualized over the three-year period) + $5,377.11 (ongoing
cost) = $8,449.74.

($23,621.67 initial, one-time cost, annualized over the three-year period) + ($128,064 ongoing
cost) = $151,685.67.

This number represents each respondent’s initial one-time burden of $93,540.10 + $50 to access
EFFS.

$31,196.70 (initial, one-time cost, annualized over the three-year period) + $0 (ongoing cost) =
$31,196.70.

external costs of $25 per year for the same. This would result in an estimated annual cost of
$41.67 88 and an estimated annual cost for the industry of $333.36.
Competing Consolidators Monthly Reports and Reviews
With respect to costs to respondents for Competing Consolidators Monthly Reports and
Reviews the Commission initially estimated an initial annual cost per respondent of $81,307, and
total initial annual costs for all respondents of $650,456. 89 Accordingly, the Commission
estimated an initial cost per respondent, per response of approximately $6,775.58, 90 and an
ongoing annual cost per respondent of $45,222, and total ongoing costs for all respondents of
$361,776. 91 Accordingly, the Commission estimated an annual ongoing cost per respondent, per
response of approximately $3,768.50. 92 This would result in an estimated annual cost of
$6,027.03 per respondent. 93 The Commission estimated that there will be 8 competing
consolidator respondents. This would result in an estimated annual total cost per respondent of
$72,324.36 and a total cost to the industry of $578,594.88. 94
The Commission is reducing these estimates to remove monetized estimates of burden
hours. As discussed above, the only remaining external costs related to this information
collection are an initial external cost of $800 for an external website developer to create the
website where the reports are posted and maintained. This would result in an estimated annual
cost of $266.67 95 and an estimated annual cost for the industry of $2,133.36.
16.

Information Collection Planned for Statistical Purposes

$16.67 (initial, one-time cost, annualized over the three-year period) + $25 (ongoing cost) =
$41.67.

See Adopting Release, supra note 10, 86 FR at 18718 ($80,507 total initial costs + $800 in
external costs = $81,307; $644,056, total cost of all respondents + $6,400 in external costs =
$650,456).

$81,307 (total initial annual cost for per respondent) / 12 (# of responses per year) = $6,775.58
(initial annual cost per respondent, per response). Correspondingly, the Commission estimates
that the initial annual cost per entity, per response, annualized over a three-year period is
$2,258.53.

See id. at 18719.

$45,222 (ongoing annual cost per respondent) / 12 (# of responses per year) = $3,768.50 (annual
ongoing cost per respondent, per response).

$2,258.53 (initial cost per respondent, per response, annualized over a three-year period) +
$3,768.50 (ongoing cost per respondent, per response) = $6,027.03 (annual cost per entity, per
response.

$6,027.03 (annual costs per respondent, per response) x 12 (# of responses per year) =
$72,324.36; $72,324.36 (total annual cost per respondent) x 8 (# of respondents) = $578,594.88
(total costs of all respondents).

$266.67 (initial, one-time cost, annualized over the three-year period) + 0 (ongoing cost) =
$266.67.

Not applicable. The information collection is not used for statistical purposes.
17.

OMB Expiration Date Display Approval

The Commission is requesting authorization to omit the expiration date on the electronic
version of the Form CC, although the OMB control number will be displayed. Including the
expiration date on the electronic version of this form will result in increased costs, because the
need to make changes to the form may not follow the application’s scheduled version release
dates.
18.

Exceptions to Certification for Paperwork Reduction Act Submissions

This collection complies with the requirements in 5 CFR 1320.9.
B.

COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
This collection does not involve statistical methods.

File Type	application/pdf
File Title	Supporting Statement-- Proposed Rule
Author	Steve Kuan
File Modified	2023-06-15
File Created	2023-06-15