FR 2025-03273

The document in question is a notice from the Securities and Exchange Commission (SEC), made in accordance with the Paperwork Reduction Act of 1995. It seeks approval from the Office of Management and Budget (OMB) to extend Rule 6a-3 under the Securities Exchange Act of 1934. This rule obligates national securities exchanges to file certain information with the SEC, such as documentation they distribute and monthly trading activity. Currently, 26 securities exchanges are subject to these requirements, with an estimated collective annual effort of 156 hours across these entities.

Summary of the Document

The primary purpose of this SEC notice is to request a renewal for the collection of information under Rule 6a-3. Exchanges need to comply by submitting information like notices, bulletins, and monthly reports that detail trading activities. The SEC uses these filings to oversee and ensure that exchanges comply with pertinent regulations. Interested parties are encouraged to comment on this information collection request by the end of March 2025 through a designated website or an email.

Significant Issues and Concerns

An issue apparent within the document is the lack of detailed cost analysis associated with the annual time burden required of the exchanges. While the document estimates 156 hours collectively across 26 exchanges, it omits any exploration of the financial impact this may have on those bodies. Transparency regarding these costs could offer better insights for stakeholders.

Furthermore, the calculation method for the time estimate (0.5 hours per filing) is not explained, raising potential questions about the accuracy of this estimation. Without clarity on how this figure was derived, stakeholders might remain skeptical of its validity.

Additionally, the process for submitting public comments might be inaccessible to those who are unfamiliar with navigating government platforms online. The reference to the website for comments lacks user-friendly guidance, and individuals not well-versed with online platforms might find it difficult to participate.

Impact on the Public and Stakeholders

For the broader public, the document has a minimal direct impact. However, it indirectly influences those who are stakeholders in the financial markets. National securities exchanges must adhere to these regulatory requirements, which can potentially affect their operational costs and processes. These costs may trickle down to other stakeholders, including investors and member firms involved in these exchanges.

Potential benefits might include increased transparency and regular oversight provided by these filings, ensuring that exchanges operate fairly and within legal boundaries. Such regulations help maintain integrity in financial markets, which is beneficial to the investing public at large.

On the downside, the lack of consideration for modernizing and reducing the reporting burden might mean missed opportunities for efficiency improvements within the industry. Updating procedures to leverage technology better could minimize the burden on exchanges while enhancing data quality for oversight purposes.

Conclusion

While the SEC's rule extension request supports essential regulatory oversight, ensuring the accuracy and utility of market data, there are gaps in the document that need addressing. By exploring the financial burdens placed on exchanges and providing clearer instructions for public engagement, the SEC can not only enhance stakeholder participation but also bolster trust and transparency in its regulatory processes.

The document under review pertains to a request by the Securities and Exchange Commission (SEC) to extend a previously approved collection of information under Rule 6a-3 of the Securities Exchange Act of 1934. This rule obligates national securities exchanges to submit specific monthly reports, detailing the volume and aggregate dollar amount of certain securities sold.

Financial References and Implications

The document outlines that Rule 6a-3 requires exchanges to file these monthly reports, which reveal the volume and aggregate dollar amount of certain transactions. However, the document does not provide details on the actual financial impacts of compiling and submitting these reports for the exchanges involved. The absence of specific dollar amounts associated with compliance, such as costs related to the time burden of reporting, is a notable omission. This lack of clarity might obscure the true financial implications for the exchanges required to comply with these reporting requirements.

Time Burden Estimation and Financial Implications

The SEC estimates that each of the 26 national securities exchanges will need to submit approximately 12 filings annually, with each filing taking roughly 0.5 hours. This results in a total time burden of 156 hours per year for all respondents. However, the document does not offer insight into how these time estimates were calculated or their associated costs in terms of labor or resources. The absence of a detailed cost analysis could lead to questions regarding the preciseness of these estimates and whether they accurately reflect the financial burden imposed on these entities.

Opportunities for Financial Clarity and Efficiency

There is no discussion in the document about potential updates or technological improvements that could reduce the reporting burden on these exchanges. Introducing modernized methods or automated systems could potentially decrease both the time and financial costs of compliance. By not addressing these potential efficiencies, the document may overlook opportunities to lessen the financial strain on respondents, possibly diminishing valuable resources that could be better utilized elsewhere within these organizations.

In summary, while the document references financial obligations, there is a considerable gap in detailing the actual financial costs associated with reporting requirements under Rule 6a-3. Offering more transparency and considering updates to the reporting process could alleviate both the financial burdens and encourage greater engagement from public stakeholders in the comment process.