Regulation SCI and Form SCI

OMB Control No: 3235-0703	ICR Reference No: 202309-3235-015
Status: Received in OIRA	Previous ICR Reference No: 202111-3235-005
Agency/Subagency: SEC	Agency Tracking No: TM-270-653
Title: Regulation SCI and Form SCI
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 12/07/2023

	Requested	Previously Approved
Expiration Date	02/28/2025	03/31/2025
Responses	5,416	2,784
Time Burden (Hours)	331,757	148,160
Cost Burden (Dollars)	10,467,493	3,789,577

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Abstract: Regulation SCI would update and formalize a regulatory framework for ensuring that the U.S. securities trading markets develop and maintain systems with adequate capacity, integrity, resiliency, availability, and security, and reinforce the requirement that such systems operate in compliance with relevant laws and rules. Regulation SCI is intended to advance the goals of the national market system by enhancing the capacity, integrity, resiliency, availability, and security of the automated systems of entities important to the functioning of the U.S. securities markets, and reinforce the requirement that such systems operate in compliance with the Exchange Act and relevant rules. The Commission recently proposed to update 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. Specifically, the Proposal would expand the content of the information with respect to quotations for and transactions in NMS stocks that must be made available under Regulation NMS and introduce a decentralized consolidation model whereby “competing consolidators” would assume responsibility for the collection, consolidation, and dissemination functions currently performed by the exclusive Securities Information Processors (“SIPs”). Among other things, the Proposal would expand the definition of “SCI entity” to include competing consolidators, so that all competing consolidators would be subject to Regulation SCI.

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Authorizing Statute(s): US Code: 15 USC 78a et seq Name of Law: Securities Exchange Act of 1934

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AN25	Proposed rulemaking	88 FR 23146	04/13/2023

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 88

IC Title Form No. Form Name IC 1.1 - Policies and procedures required by Rule 1001(a) - initial burden- Current SCI Entities IC 1.2 - Policies and procedures required by Rule 1001(a) - initial burden - competing consolidators IC 10.2 - SCI event notice required by Rule 1002(b)(1) - Competing Consolidators IC 11.1 - SCI event notice required by Rule 1002(b)(2) - Current SCI Entities IC 11.2 - SCI event notice required by Rule 1002(b)(2) - Competing Consolidators IC 12.1 - SCI event notice required by Rule 1002(b)(3) - Current SCI Entities IC 12.2 - SCI event notice required by Rule 1002(b)(3) - Competing Consolidators IC 13.1 - SCI event notice required by Rule 1002(b)(4) - Current SCI Entities IC 13.2 - SCI event notice required by Rule 1002(b)(4) - Competing Consolidators IC 14.1 - SCI event notice required by Rule 1002(b)(5) - Current SCI Entities IC 14.2 - SCI event notice required by Rule 1002(b)(5) - Competing Consolidators IC 15.1 - Dissemination of information required by Rule 1002(c)(1)(i) - Current SCI Entities IC 15.2 - Dissemination of information required by Rule 1002(c)(1)(i) - Competing Consolidators IC 16.1 - Dissemination of information required by Rule 1002(c)(1)(ii) - Current SCI Entities IC 16.2 - Dissemination of information required by Rule 1002(c)(1)(ii) - Competing Consolidators IC 17.1 - Dissemination of information required by Rule 1002(c)(2) - Current SCI Entities IC 17.2 - Dissemination of information required by Rule 1002(c)(2) - Competing Consolidators IC 18.1 - Material systems change notice required by Rule 1003(a)(1) - Current SCI Entities IC 18.2 - Material systems change notice required by Rule 1003(a)(1) - Competing Consolidators IC 19.1 - Material systems change notice required by Rule 1003(a)(2) - Current SCI Entities IC 19.2 - Material systems change notice required by Rule 1003(a)(2) - Competing Consolidators IC 2.1 - Policies and procedures required by Rule 1001(a) - ongoing burden - Current SCI Entities IC 2.2 - Policies and procedures required by Rule 1001(a) - ongoing burden - Competing Consolidator IC 20.1 - SCI review required by Rule 1003(b)(1) and (b)(2) - Current SCI Entities IC 20.2 - SCI review required by Rule 1003(b)(1) and (b)(2) - Competing Consolidators IC 21.1 - SCI review required by Rule 1003(b)(3) - Current SCI Entities IC 21.2 - SCI review required by Rule 1003(b)(3) - Competing Consolidators IC 22.1 - Access to EFFS - EAUF - initial burden - Competing Consolidators IC 23.1 - Access to EFFS - EAUF - ongoing burden - Current SCI Entities IC 23.2 - Access to EFFS - EAUF - ongoing burden - Competing Consolidators IC 23.3 - Access to EFFS - digital ID - New SCI Entities IC 23.4 - Access to EFFS - digital ID - Current SCI Entities IC 23.5 - Access to EFFS - digital ID - Competing Consolidators IC 24.1 - Corrective action required by Rule 1002(a) - initial burden - Current SCI Entities IC 24.2 - Corrective action required by Rule 1002(a) - initial burden - Competing Consolidators IC 25.1 - Corrective action required by Rule 1002(a) - ongoing burden - Current SCI Entities IC 25.2 - Corrective action required by Rule 1002(a) - ongoing burden - Competing Consolidators IC 26.1 - Identification of critical SCI systems, major SCI events, de minimis SCI events, and material systems changes - initial burden - Current SCI Entities IC 26.2 - Identification of critical SCI systems, major SCI events, de minimis SCI events, and material systems changes - initial burden - Competing Consolidators IC 27.1 - Identification of critical SCI systems, major SCI events, de minimis SCI events, and material systems changes - ongoing burden - Current SCI Entities IC 27.2 - Identification of critical SCI systems, major SCI events, de minimis SCI events, and material systems changes - ongoing burden Competing Considators IC 28.1 - Recordkeeping required by Rules 1005 and 1007 - initial burden - Competing Consolidators IC 29.1 - Recordkeeping required by Rules 1005 and 1007 - ongoing burden - Current SCI Entities IC 29.2 - Recordkeeping required by Rules 1005 and 1007 - ongoing burden - Competing Consolidators IC 3.1 - Policies and procedures required by Rule 1001(b) - initial burden - Competing Consolidator IC 31 - Access to EFFS - digital ID IC 4.1 - Policies and procedures required by Rule 1001(b) - ongoing burden - Competing Consolidators IC 5.1 - Policies and procedures required by Rule 1001(b) - ongoing burden - New SCI Entities non-SROs IC 6.1 - Policies and procedures required by Rule 1001(c) - initial burden - Competing Consolidators IC 7.1 - Policies and procedures required by Rule 1001(c) – ongoing burden - Current SCI Entities IC 7.2 - Policies and procedures required by Rule 1001(c) – ongoing burden - Competing Consolidators IC 8.1 - Mandate participation in certain testing for non-plan processors required by Rule 1004 – initial burden - Current SCI Entities IC 8.2 - Mandate participation in certain testing for non-plan processors required by Rule 1004 – initial burden - Competing Consolidators IC 9.1 - Mandate participation in certain testing for non-plan processors required by Rule 1004 - ongoing burden - Current SCI Entities IC 9.2 - Mandate participation in certain testing for non-plan processors required by Rule 1004 - ongoing burden - Competing Consolidators IC 9.3 - Mandate participation in certain testing for plan processors required by Rule 1004 IC1 - Policies and procedures required by Rule 1001(a) - initial burden-- New SCI Entities IC10 - SCI event notice required by Rule 1002(b)(1) - New SCI Entities Form SCI Form SCI IC11 - SCI event notice required by Rule 1002(b)(2) - New SCI Entities Form SCI Form SCI IC12 - SCI event notice required by Rule 1002(b)(3) - New SCI Entities Form SCI Form SCI IC13 - SCI event notice required by Rule 1002(b)(4) - New SCI Entities Form SCI Form SCI IC14 - SCI event notice required by Rule 1002(b)(5) - New SCI Entities Form SCI Form SCI IC15 - Dissemination of information required by Rule 1002(c)(1)(i) - New SCI Entities IC16 - Dissemination of information required by Rule 1002(c)(1)(ii) - New SCI Entities IC17 - Dissemination of information required by Rule 1002(c)(2) IC17 - Dissemination of information required by Rule 1002(c)(2) - New Entities IC18 - Material systems change notice required by Rule 1003(a)(1) - New SCI Entities Form SCI Form SCI IC19 - Material systems change notice required by Rule 1003(a)(2) - New SCI Entities Form SCI Form SCI IC2 - Policies and procedures required by Rule 1001(a) - ongoing burden - New SCI Entities IC20 - SCI review required by Rule 1003(b)(1) and (b)(2) - New SCI Entities Form SCI Form SCI IC21 - SCI review required by Rule 1003(b)(3) - New SCI Entities Form SCI Form SCI IC22 - Access to EFFS - EAUF - initial burden - New SCI Entities IC23 - Access to EFFS - EAUF - ongoing burden - New SCI Entities IC24 - Corrective action required by Rule 1002(a) - initial burden - New SCI Entities IC25 - Corrective action required by Rule 1002(a) - ongoing burden - New SCI Entities IC26 - Identification of critical SCI systems, major SCI events, de minimis SCI events, and material systems changes - initial burden - New SCI Entities IC27 - Identification of critical SCI systems, major SCI events, de minimis SCI events, and material systems changes - ongoing burden - New SCI Entities IC28 - Recordkeeping required by Rules 1005 and 1007 - initial burden - New SCI Entities IC29 - Recordkeeping required by Rules 1005 and 1007 - ongoing burden - New SCI Entities IC3 - Policies and procedures required by Rule 1001(b) - initial burden - New SCI Entities IC30 - Mandate participation in certain testing for plan processors required by Rule 1004 IC4 - Policies and procedures required by Rule 1001(b) - ongoing burden - SCI SROs IC5 - Policies and procedures required by Rule 1001(b) -ongoing burden - Current SCI Entities non-SROs IC6 - Policies and procedures required by Rule 1001(c) - initial burden - New SCI Entities IC7 - Policies and procedures required by Rule 1001(c) - ongoing burden - New SCI Entities IC8 - Mandate participation in certain testing for non-plan processors required by Rule 1004 - initial burden - New SCI Entities IC9 - Mandate participation in certain testing for non-plan processors required by Rule 1004 - ongoing burden- New SCI Entities ICR 10.1 - SCI event notice required by Rule 1002(b)(1) - Current SCI Entities

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	5,416	2,784	0	2,632	0	0
Annual Time Burden (Hours)	331,757	148,160	0	183,597	0	0
Annual Cost Burden (Dollars)	10,467,493	3,789,577	0	6,677,916	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Changing Regulations

Short Statement: The Commission has proposed amendments to the rule that would revise collections of information, and the corresponding burdens, in this OMB number. These revisions are discussed in more detail in the attached Supporting Statement.

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Annual Cost to Federal Government: $180,000

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

Agency Contact: Gita Subramaniam 202 551-5793

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
		(a) It is necessary for the proper performance of agency functions;
		(b) It avoids unnecessary duplication;
		(c) It reduces burden on small entities;
		(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;
		(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;
		(f) It indicates the retention periods for recordkeeping requirements;
		(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:
			(i) Why the information is being collected;
			(ii) Use of information;
			(iii) Burden estimate;
			(iv) Nature of response (voluntary, required for a benefit, or mandatory);
			(v) Nature and extent of confidentiality; and
			(vi) Need to display currently valid OMB control number;
		(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.
		(i) It uses effective and efficient statistical survey methodology (if applicable); and
		(j) It makes appropriate use of information technology.
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Certification Date: 12/07/2023

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