SEC Proposed Extension of Information Collection for Rule 103 of Regulation M (Passive Market-Making)
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The U.S. Securities and Exchange Commission is seeking public comments on the extension of the existing Paperwork Reduction Act approval for Rule 103 under Regulation M. Rule 103 allows passive market-making transactions in Nasdaq securities during a securities distribution. Distribution participants wishing to rely on this exception must disclose their intention to engage in passive market-making to third parties. The SEC estimates there are 249 respondents annually, each making one response that takes approximately one hour, for a total annual burden of 249 hours. The estimated aggregate internal compliance cost is $40,836 per year, or about $164 per response. This is a routine 60-day comment period notice under OMB Control No. 3235-0466.
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Key Changes
- Extension of OMB Control No. 3235-0466 for Rule 103 of Regulation M
- Estimated 249 annual respondents and 249 total burden hours
- Each respondent submits 1 response per year taking 1 hour
+ 3 more changes with Pro
Obligations
What this law requires
Distribution participants seeking to rely on Rule 103 passive market-making exception must disclose their intention to engage in passive market-making to third parties
Respondents must complete and submit information collection responses required under Rule 103 of Regulation M within the compliance timeline
Entities must allocate approximately 1 hour per annual response to comply with Rule 103 information collection requirements
Written comments on the information collection must be submitted to Austin Gerig, Director/Chief Data Officer, via email to PaperworkReductionAct@sec.gov by June 1, 2026, if submitting feedback during the 60-day comment period