Upon Written Request, Copies Available From: Securities and Exchange Commission Office of FOIA Services 100 F Street NE, Washington, DC 20549-2736
Rule 19b-5 and Form PILOT, SEC File No. 270-448, OMB Control No. 3235-0507
Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (“PRA”) (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (“SEC”) is soliciting comments on the existing collection of information provided for in Rule 19b-5 (17 CFR 240.19b-5) and Form PILOT (17 CFR 249.821) under the Securities Exchange Act of 1934 (“Exchange Act”) (15 U.S.C. 78a et seq.). The SEC plans to submit this existing collection of information to the Office of Management and Budget (“OMB”) for extension and approval.
Rule 19b-5 provides a temporary exemption from the rule-filing requirements of Section 19(b) of the Exchange Act (15 U.S.C. 78s(b)) to self-regulatory organizations (“SROs”) wishing to establish and operate pilot trading systems. Rule 19b-5 permits an SRO to develop a pilot trading system and to begin operation of such system Start Printed Page 25587shortly after submitting an initial report on Form PILOT to the SEC. During operation of any such pilot trading system, the SRO must submit quarterly reports of the system's operation to the SEC, as well as timely amendments describing any material changes to the system. Within two years of operating such pilot trading system under the exemption afforded by Rule 19b-5, the SRO must submit a rule filing pursuant to Section 19(b)(2) of the Exchange Act (15 U.S.C. 78s(b)(2)) to obtain permanent approval of the pilot trading system from the SEC.
The collection of information is designed to allow the SEC to maintain an accurate record of all new pilot trading systems operated by SROs and to determine whether an SRO has properly availed itself of the exemption afforded by Rule 19b-5, is operating a pilot trading system in compliance with the Exchange Act, and is carrying out its statutory oversight obligations under the Exchange Act.
The respondents to the collection of information are national securities exchanges and national securities associations.
There are 23 SROs which could avail themselves of the exemption under Rule 19b-5 and the use of Form PILOT. The SEC estimates that approximately three of these SROs, in the aggregate, each year will file on Form PILOT one initial report (i.e., 3 reports total, for an estimated annual burden of 72 hours total), four quarterly reports (i.e., 12 reports total, for an estimated annual burden of 36 hours total), and two amendments (i.e., 6 reports total, for an estimated annual burden of 18 hours total). Thus, the estimated annual response burden resulting from Form PILOT is 42 hours per SRO, or a total of 126 hours for the three SROs. The SEC estimates that the aggregate annual internal cost of compliance for all three respondents is approximately $38,094 (126 hours at an average of $302.333 per hour). In addition, the SEC estimates that the three SRO respondents will incur, in the aggregate, printing, supplies, copying, and postage expenses of $6,101 per year for filing initial reports, $3,046 per year for filing quarterly reports, and $1,523 per year for filing notices of material systems changes, for a total annual cost burden of $10,670 for all three respondents.
Written comments are invited on (a) whether the proposed collection of information is necessary for the proper performance of the functions of the SEC, including whether the information shall have practical utility; (b) the accuracy of the SEC's estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number.
Please direct your written comments to: Charles Riddle, Acting Director/Chief Information Officer, Securities and Exchange Commission, c/o Candace Kenner, 100 F Street NE, Washington, DC 20549 or send an email to: PRA_Mailbox@sec.gov.
Dated: May 28, 2019.
Eduardo A. Aleman,
[FR Doc. 2019-11433 Filed 5-31-19; 8:45 am]
BILLING CODE 8011-01-P