Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 201 and Rule 200(g) of Regulation SHO
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The U.S. Securities and Exchange Commission is seeking a three-year extension of the existing OMB approval (Control No. 3235-0670) for the collection of information required by Rule 201 and Rule 200(g) of Regulation SHO. Rule 201 is the short-sale circuit breaker rule that restricts the price at which a security can be sold short once a 10% price decline threshold is triggered. Rule 200(g) allows broker-dealers to mark qualifying sell orders as "short exempt." The rules require trading centers and certain broker-dealers to maintain written policies and procedures to prevent impermissible short sales and to mark orders appropriately. These records enable SEC and SRO compliance examinations. The estimated total annual burden across all respondents is 1,446,553 hours with an external cost of $248,000. Records must be retained under Exchange Act Rules 17a-1 and 17a-4(e)(7). The information is generally not public except for certain aggregated short-sale volume data published by SROs.
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Key Changes
- Extension of OMB Control No. 3235-0670 for three years
- Annual burden remains 1,446,553 hours across all respondents
- Annual external compliance cost remains $248,000
+ 3 more changes with Pro
Obligations
What this law requires
Trading centers must establish and maintain written policies and procedures to prevent execution or display of impermissibly priced short sale orders, unless marked 'short exempt' in accordance with Rule 201 requirements
Broker-dealers must establish and maintain written policies and procedures to comply with Rule 201(c) requirements regarding short sale restrictions
Broker-dealers executing riskless principal transactions must establish and maintain written policies and procedures to comply with Rule 201(d)(6) requirements
Broker-dealers must mark qualifying sell orders as 'short exempt' in accordance with Rule 200(g) requirements
Trading centers must preserve records of Rule 201 written policies and procedures in accordance with Exchange Act Rule 17a-1