FINAL DGL REVISED Supporting Statement 6a-3 2019

SUPPORTING STATEMENT
for the Paperwork Reduction Act Information Collection Submission for
Rule 6a-3
A.

JUSTIFICATION
1.

Necessity for Information Collection

The Securities Exchange Act of 1934 ("Exchange Act") provides a framework for
self-regulation under which self-regulatory organizations, including national securities
exchanges, have primary responsibility for regulating their members or participants. The
role of the Securities and Exchange Commission ("SEC") in this framework is primarily
one of oversight: the Exchange Act charges the SEC with supervising the national
securities exchanges and assuring that each complies with and advances the policies of
the Exchange Act.
Section 6 of the Exchange Act 1 sets out a framework for the registration and
regulation of national securities exchanges. Under Rule 6a-3(a)(1), 2 a national securities
exchange or an exchange that exempted from registration as a national securities
exchange (“exempt exchange”) must file with the SEC certain supplemental information,
including any material (including notices, circulars, bulletins, lists, and periodicals)
issued or made generally available to members of, or participants or subscribers to, the
exchange. Under Rule 6a-3(a)(2), 3 a national securities exchange or exempt exchange
need not file this supplemental information with the SEC if such information required to
be filed is available continuously on a website controlled by the exchange, and in lieu of
filing such information, the exchange indicates the location of the website where such
information may be found and certifies that the information available is accurate as of its
date. Rule 6a-3(b) 4 requires the exchanges to file monthly reports that set forth the
volume and aggregate dollar amount of certain securities sold on the exchange each
month; the principal amount of bonds sold and the aggregate dollar amount of such bonds
sold on the exchange; and the number of rights and warrants sold and the aggregate dollar
amount of such rights and warrants sold on the exchange. Per Rule 6a-3(c), 5 a national
securities exchange registered pursuant to Section 6(g)(1) 6 of the Exchange Act is exempt
from the requirement of Rule 6a-3.
2.

Purpose and Use of the Information Collection

1

15 U.S.C. 78f.

2

17 CFR 240.6a-3(a)(1).

3

17 CFR 240.6a-3(a)(2).

4

17 CFR 240.6a-3(b).

5

17 CFR 240.6a-3(c).

6

15 U.S.C. 78f(g)(1).

The information filed with the SEC pursuant to Rule 6a-3 by a registered or exempt
exchange (“Respondent”) is designed to enable the SEC to carry out its statutorily mandated
oversight functions and to assure that registered or exempt exchanges continue to be in
compliance with the Exchange Act. Without access to this information, the SEC would be
less able to ensure that registered and exempt exchanges are continuing to act in a manner
consistent with the Exchange Act.
3.

Consideration Given to Information Technology

Rule 6a-3(a)(2) permits Respondents to comply by making certain information
available on the Internet and notifying the Commission of its location. Providing access to
the supplemental information to members, participants, or subscribers through the Internet
can ease compliance burdens for Respondents and increase the speed, accuracy and
availability of information. All registered and exempt exchanges currently maintain some
presence on the Internet and make information available to interested parties.
4.

Duplication

The SEC believes that Rule 6a-3 does not impose any duplicative reporting
requirements. Respondents are able to avoid duplicative reporting by informing the SEC
where certain supplemental information may be found on its Internet website. In lieu of
filing the supplemental information specified in Rule 6a-3(a)(1), Respondents must certify
that the supplemental information available at the website location is accurate as of its date.
With respect to information regarding certain securities traded on Respondent exchanges,
this is information that generally is compiled by such exchanges in the ordinary course of
business.
5.

Effect on Small Entities

No small businesses are involved in the procedures of data compilation and filing.
6.

Consequences of Not Conducting Collection

It is important to the oversight abilities of the Commission for the information
required by Rule 6a-3 to be as current as possible. If the information were filed less
frequently, the Commission would not have the information on registered and exempt
exchange activities that is necessary to comply with its statutory obligations.
7.

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

There are no special circumstances. This collection is consistent with the
guidelines in 5 CFR 1320.5(d)(2).
8.

Consultations Outside the Agency

2

The required Federal Register notice with a 60-day comment period soliciting
comments on this collection of information was published. No public comments were
received.
9.

Payment or Gift

The Respondents receive no payments or gifts as a result of this collection of
information.
10.

Confidentiality

Not applicable. Any collection of information pursuant to Rule 6a-3 would not be
confidential and would be publicly available from the Commission upon request, or in the
case of supplemental information, could be accessed on the Respondent’s website.
11.

Sensitive Questions

Not applicable. No issues of a sensitive nature are involved. The information
collection does not collect any Personally Identifiable Information (PII).
12.

Burden of Information Collection

The SEC estimates that the preparation and filing of supplemental information and
monthly reports pursuant to Rule 6a-3 generally involves photocopying existing documents
and will usually take approximately 0.5 hours per response. The SEC estimates that each
exchange makes approximately 12 such filings on an annual basis. The SEC estimates that
the average internal compliance cost per response is approximately $106. This figure was
derived in the following manner:
0.5 hours of clerical work at $202/hr7 =
Miscellaneous clerical expenses =

$101
$ 5
$106

Currently, 21 Respondents are subject to the collection of information requirements
of Rule 6a-3. The SEC estimates that the total annual time burden for all Respondents will
be 126 hours (12 responses/Respondent per year x 0.5 hours/response x 21 Respondents).
The SEC estimates that the total annual internal compliance cost will be $26,712
($106/response x 12 responses/Respondent per year x 21 Respondents). Additionally, most
submissions pursuant to Rule 6a-3(a)(1) take advantage of the alternative means of filing

7

Figure for a Paralegal is from SIFMA’s Office Salaries in the Securities Industry
2013 modified by Commission staff to account for inflation, an 1800-hour workyear and multiplied by 5.35 to account for bonuses, firm size, employee benefits,
and overhead.
3

and specify where supplemental information is available on Respondents’ respective
internet websites.

SUMMARY OF ANNUAL TIME BURDEN

Rule

Burden Type

Rule 6a-3
(17 CFR
240.6a-3)

Reporting

Number of
Annual
Number of Reponses Per
Respondents Respondent

21

Time Per
Response
(Hours)

Total Burden
Per Burden
Type (Hours)

0.5

126

12

Total Aggregate Burden (Hours)

13.

126

Costs to Respondents

The SEC anticipates that Respondents will incur shipping costs of approximately
$20 per submission, for a total burden of $5,040 (12 submissions per Respondent x $20 per
submission x 21 Respondents), to comply with the collection of information requirements
imposed by Rule 6a-3.
SUMMARY OF ANNUAL COST BURDEN

Rule
Burden Type
Rule 6a-3
(17 CFR
Reporting
240.6a-3)
Total Aggregate Burden
14.

Number of
Annual
Number of Reponses Per
Respondents Respondent
21

12

Cost Per
Response
(Dollars)

Total Burden
Per Burden
Type (Dollars)

$20

$5,040
$5,040

Costs to Federal Government

The operational cost to the SEC to review responses submitted pursuant to Rule 6a-3
is approximately $40,950 dollars (12 responses/Respondent x 21 Respondents x
$162.50/response) and 252 hours (12 responses/Respondent x 21 Respondents x 1
hour/response) annually to review the supplemental information and monthly reports
submitted by the exchanges pursuant to Rule 6a-3. The SEC estimates that each response
4

costs approximately $162.50 to review. These estimates were derived in the following
manner:
0.5 hours attorney review at $255/hr8
0.5 hours clerical work at $70/hr9
15.

$127.50
$ 35___
$162.50

Changes in Burden

The estimated time burden has increased from 114 hours to 126 hours because the
number of Respondents has increased from 19 to 21. In addition, the total shipping costs
have increased from $4,560 to $5,040 due to the increased number of Respondents.
16.

Information Collection Planned for Statistical Purposes

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

Approval to Omit OMB Expiration Date

The Commission is not seeking approval to omit the expiration date.
18.

Exceptions to Certification for Paperwork Reduction Act Submissions

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

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

8

Figure for SEC Management and Professional Staff is from SIFMA’s Office
Salaries in the Securities Industry 2013 modified by Commission staff to account
for inflation, an 1800-hour work-year and multiplied by 5.35 to account for
bonuses, firm size, employee benefits, and overhead.

9

Figure for SEC Office Staff is from SIFMA’s Office Salaries in the Securities
Industry 2013 modified by Commission staff to account for inflation, an 1800hour work-year and multiplied by 2.93 to account for bonuses, firm size,
employee benefits, and overhead.
5