3235-0504 Supporting Statement (2025) Final

SUPPORTING STATEMENT
For the Paperwork Reduction Act Information Collection Submission for
Rule 19b-4(e) and Form 19b-4(e) by Self-Regulatory Organizations
OMB Control No. 3235-0504
Revision
A.

JUSTIFICATION
1.

Information Collection Necessity

The Securities Exchange Act of 1934, as amended (“Act”) 1 sets forth a scheme of selfregulation under which national securities exchanges, national securities associations and
registered clearing agencies have primary responsibility for regulating their members or
participants. Under this scheme, the Commission's role is primarily one of oversight; the Act
charges the Commission with the responsibility for assuring that each of these organizations
(“self-regulatory organizations” or “SROs”) complies with and advances the policies of the Act.
As part of its oversight responsibilities, the Commission is required to review changes in the
rules of the various self-regulatory organizations.
Section 19(b) of the Act, as amended by the Securities Act Amendments of 1975,
requires each SRO to file with the Commission copies of any proposed rule or any proposed
change in, addition to, or deletion from the rules of such SRO (collectively, “proposed rule
change”). The Commission is required to publish notice of the proposed rule change. No
proposed rule change shall take effect unless approved by the Commission or otherwise
permitted in accordance with the Act.
Rule 19b-4 implements the requirements of Section 19(b) of the Act by requiring SROs
to file their proposed rule changes on Form 19b-4 and by clarifying which actions by SROs must
be filed pursuant to Section 19(b). Rule 19b-4 was adopted in 1975 pursuant to Sections 2, 3, 6,
11A, 15A, 15B, 17, 19 and 23 of the Act.
The Commission has exercised its rulemaking authority 2 by promulgating paragraphs (b),
(c) and (d) of Rule 19b-4 under the Act, which interpret the terms “stated policy, practice or
1

15 U.S.C. 78a et seq.

2

Sections 3(a)(26), 3(a)(27), 3(a)(28) and 3(b) of the Act provide that the Commission may promulgate rules
regarding, among other things, “stated policies, practices and interpretations” of SROs. Section 19(b)
authorizes the Commission to promulgate rules regarding “proposed rule changes” of SROs. Section 23(a)
of the Act provides that the Commission shall have power to make such rules and regulations as may be
necessary or appropriate to implement the provisions of the Act for which it is responsible or for the
execution of the functions vested in it by the Act, and may for such purposes classify persons, securities,
transactions, statements, applications, reports and other matters within its jurisdiction, and prescribe
greater, lesser or different requirements for different classes thereof. (See, e.g., Securities Exchange Act
Release No. 35123 (Dec. 20, 1994) 59 FR 66692 (Dec. 28, 1994)). In addition, in 1996, Congress granted
the Commission the authority, under Section 36(a), to exempt, among other things, any class of person,
security or transaction from any provision of the Act. Pub. L. No. 104-290, 110 Stat. 3416 (1996).

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interpretation” and “proposed rule change.” Paragraph (c) of Rule 19b-4 provides that certain
stated policies, practices and interpretations of SROs do not constitute proposed rule changes.
Specifically, a “stated policy, practice or interpretation” of an SRO is not a proposed rule change
if it, among other things, is reasonably and fairly implied by an existing SRO rule. The
Commission then amended Rule 19b-4 by adding paragraph (e) to state that the listing and
trading of new derivative securities products by an SRO would not be deemed a proposed rule
change if the Commission has approved the SRO’s trading rules, procedures and listing
standards for the product class that would include the new derivative securities product and the
SRO has a surveillance program for the product class.
The Commission believes that, when the Commission has approved, pursuant to Section
19(b) of the Act, an SRO’s trading rules, procedures and listing standards for the product class
that would include the new derivative securities product, the listing and trading of the new
derivative securities product is reasonably and fairly implied by the SRO’s existing trading rules,
procedures and listing standards. The Commission therefore deemed the listing and trading of
new derivative securities products to not be proposed rule changes pursuant to Rule 19b-4(c)(1)
under certain conditions.
Certain provisions of Rule 19b-4(e) contain “collection of information requirements”
within the meaning of the Paperwork Reduction Act of 1995 3 through the use of Form 19b-4(e)
under the Act. The collection of information requires an SRO to submit a completed one-page
sheet of nine questions within five days of beginning to trade a new derivative securities product
through its facilities. Form 19b-4(e) asks factual information regarding the characteristics of the
subject new derivative securities product and the securities underlying it. Such questions do not
require any analysis or exhibits.
a) Amendment to Rule 19b-4(e)
The Commission has amended Rule 19b-4(e) to rescind paper Form 19b-4(e) and instead
require an SRO to publicly report the same information currently required on Form 19b-4(e) on
its internet website by using the most recent versions of the XML schema and the associated
PDF renderer as published on the Commission’s website to post the information required under
Rule 19b-4(e) for each new derivative securities product within five days of beginning to trade a
new derivative securities product through its facilities. 4 The information required under amended
Rule 19b-4(e) remains the factual information regarding the characteristics of the subject new
derivative securities product and the securities underlying it and does not require any analysis or
exhibits.

3

44 U.S.C. 3501 et seq.

4

See Electronic Submission of Certain Materials Under the Securities Exchange Act of 1934; Amendments
Regarding the FOCUS Report; SEC Release Nos. 33–11342; 34–101925; IC– 35420 ; (Dec. 16, 2024); 90
FR 7250 (Jan. 21, 2025) (File No. S7-08-23) (“Adopting Release”).

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2.

Information Collection Purpose and Use

Rule 19b-4(e) permits an SRO to list and trade a new derivative securities product
without submitting a proposed rule change pursuant to Section 19(b) of the Act (15 U.S.C.
78s(b)), so long as such product meets the criteria of Rule 19b-4(e) under the Act. However, in
order for the Commission to maintain accurate information regarding these new derivative
securities products while ensuring that information remains publicly available, amended Rule
19b-4(e) requires an SRO to post the information required under Rule 19b-4(e) when the SRO
begins trading a new derivative securities product that is not required to be submitted as a
proposed rule change to the Commission. Such information should be posted within five
business days after an SRO begins trading a new derivative securities product that is not required
to be submitted as a proposed rule change. In addition, amended Rule 19b-4(e) requires an SRO
to maintain, on-site, such information for a prescribed period of time.
This collection of information is designed to allow the Commission to maintain an
accurate record of all new derivative securities products traded on the SROs that are not deemed
to be proposed rule changes and to determine whether an SRO has properly availed itself of the
permission granted by Rule 19b-4(e). The Commission reviews SRO compliance with Rule 19b4(e) through its routine inspections of the SROs.
3.

Consideration Given to Information Technology

The collection of information under the amendment to Rule 19b-4(e) requires the use of
automated, electronic, mechanical or other technological collection techniques or other forms of
information technology.
4.

Duplication

Not applicable. The Commission believes that no duplication of the requirements of Rule
19b-4(e) exists.
5.

Effect on Small Entities

Not applicable. The SROs that are required to respond to the collection of information are
not small businesses.
6.

Consequences of Not Conducting Collection

If the Commission did not collect this information or collected it less frequently, it would
not be able to maintain accurate information regarding new derivative securities products traded
on the SROs that are not deemed to be proposed rule changes while ensuring that information
remains publicly available consistent with its statutory oversight obligations.

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7.

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

Rule 19b-4(e) permits an SRO to list and trade a new derivative securities product
without submitting a proposed rule change pursuant to Section 19(b) of the Act (15 U.S.C.
78s(b)), so long as such product meets the criteria of Rule 19b-4(e) under the Act. However, in
order for the Commission to maintain accurate information regarding these new derivative
securities products while ensuring that information remains publicly available, amended Rule
19b-4(e) requires an SRO to post the information required under Rule 19b-4(e) when the SRO
begins trading a new derivative securities product that is not required to be submitted as a
proposed rule change to the Commission. Such information should be posted within five
business days after an SRO begins trading a new derivative securities product that is not required
to be submitted as a proposed rule change. In addition, amended Rule 19b-4(e) continues to
require an SRO to maintain, on-site, that information for a period of not less than 5 years.
This collection of information is designed to allow the Commission to maintain accurate
and timely information regarding new derivative securities products traded on the SROs that are
not deemed to be proposed rule changes and to determine whether an SRO has properly availed
itself of the permission granted by Rule 19b-4(e). The Commission reviews SRO compliance
with Rule 19b-4(e) through its routine inspections of the SROs. Additionally, the Commission
notes that Rule 19b-4(e) has not imposed new recordkeeping burdens on the SROs. Paragraph
(2)(i) of Rule 19b-4(e) reiterates the SROs’ existing recordkeeping burdens under Rule 17a-1 of
the Act.
Amended Rule 19b-4(e) requires an SRO to publicly report the information required
under Rule 19b-4(e) on its internet website using the most recent versions of the XML schema
and the associated PDF renderer as published on the Commission’s website to post the
information required under Rule 19b-4(e) for each new derivative securities product.
8.

Consultations Outside the Agency

The Commission requested comment on the collection of information requirements in the
April 18, 2023 Electronic Submission of Certain Material Under the Securities Exchange Act of
1934; Amendments Regarding the FOCUS Report proposing release. 5
9.

Payment or Gift

Not applicable. No payments or gifts are required to be made or are made to respondents.
10.

Confidentiality

Not applicable. Any collection of information pursuant to amended Rule 19b-4(e) under
the Act would not be held confidential.
5

See Electronic Submission of Certain Materials Under the Securities Exchange Act of 1934; Amendments
Regarding the FOCUS Report; SEC Release Nos. 33-11176, 34-97182, IC-34864 (Mar. 22, 2023); 88 FR
23920 (Apr. 18, 2023) (File No. S7-08-23). No comments were received with respect to the collection of
information requirements regarding proposed amendments to Rule 19b-4(e).

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11.

Sensitive Questions

The information collection collects basic personally identifiable information that may
include name and job title. However, the agency has determined that the information collection
does not constitute a system of records for purposes of the Privacy Act, because information is
not retrieved by a personal identifier.
12.

Information Collection Burden

As of April 8, 2022, there were 24 SROs subject to the reporting requirements of Rule
19b-4(e). The Commission’s experience since the adoption of Rule 19b-4(e) and Form 19b-4(e)
indicates that the total time required to complete each filing is approximately one hour. Based on
the number of new derivative securities products that were reported to the Commission in years
2019, 2020 and 2021, the estimated expected number of filings per year is 2,331, or
approximately 97.12 hours per respondent. 6
Amended Rule 19b-4(e) Initial Response
Under its amended Rule, the Commission estimates that, although the time required to
post the information for each response is 1 hour, the additional time required to post the
information for the initial response is 0.5 hours. The Commission estimates, therefore, that the
total additional initial hour burden would be 12 hours (0.5 additional burden hours per initial
response x 24 respondents). At an average hourly cost of $72, the aggregated additional related
internal cost of compliance for the initial response under amended Rule 19b-4(e) is
approximately $1,296 (12 burden hours multiplied by $72 per hour).
Amended Rule 19b-4(e)
Under its amended Rule, the Commission estimates that the time required to post the
information for each response other than the initial response would remain one hour. Based on
the number of new derivative securities products that were reported to the Commission in years
2019, 2020 and 2021, the estimated expected number of filings per year would be 2,331, or
approximately 97.12 hours per respondent. The Commission estimates, therefore, that the total
annual hour burden associated with amended Rule 19b-4(e) is approximately 2,331 hours
per year (2,331 responses x 1 hour per response). At an average hourly cost of $72, the
aggregate related internal cost of compliance for Rule 19b-4(e) is approximately $167,832 (2,331
burden hours multiplied by $72/hour).

6

2,331 is based on the average annual number of new derivative securities products accounted for on
previously used Forms 19b-4(e) received by the Commission in years 2019, 2020 and 2021. The
Commission notes that some SROs did, on certain occasions, file a single Form 19b-4(e) that provided
notice of the trading of multiple new derivative securities products.

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Summary of Hour Burdens
Rule

Burden Type

Ongoing
or Initial
Burden

Number of
Respondents

Rule 19b4(e)—
Initial
Response
Rule 19b4(e)

Reporting

Initial

24

Reporting

Ongoing

24

Number of
Annual
Reponses
Per
Respondent

Hour
Burden
Per
Response
(Hours)

Annual
Burden
per
Entity

1

1.5

0.5

97.12

1

Total Aggregate Burden
13.

Total
Burden
Per
Burden
Type
(Hours)
12

2,331

2,343

Costs to Respondents

Not applicable. It is not anticipated that respondents will have to incur any capital and
start-up costs, nor any additional operational or maintenance costs, to comply with the collection
of information.
Additionally, the Commission notes that amended Rule 19b-4(e) has not imposed new
recordkeeping burdens on the SROs. Paragraph (2)(i) of Rule 19b-4(e) reiterates the SROs’
existing recordkeeping burdens under Rule 17a-1 of the Act.
14.

Costs to Federal Government

None. Review of information posted by respondents pursuant to amended Rule 19b-4(e)
would be done by existing Commission staff as part of their regular duties.
15.

Changes in Burden

The Commission has increased the burden of this collection of information as a result of
the amendment. The Commission has added an estimated initial burden of 0.5 burden hours. The
Commission estimates that the ongoing burden would be unchanged. Thus, the estimated total
additional initial burden would be 12 hours.
Name of
Information
Collection

Annual
Industry
Burden

Annual
Industry
Burden
Previously
Reviewed

Change in
Burden

Reason for Change

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Rule 19b-4(e)—first
structured data
response
Rule 19b-4(e)
16.

0.5

0

0.5

1

1

0

Amended rule imposes a new
initial structuring of data
requirement
N/A

Information Collection Planned for Statistical Purposes

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

Approval to Omit OMB Expiration Date

Not applicable.
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.