Submission for OMB Review; Comment Request, 11456-11457 [E6-3161]
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Federal Register / Vol. 71, No. 44 / Tuesday, March 7, 2006 / Notices
sroberts on PROD1PC70 with NOTICES
$79 million. The staff further estimates
that each of 24 new money market funds
spends a total of 21 hours of director,
legal, and support staff time at a total
cost of approximately $126,216 to adopt
procedures designed to stabilize the
fund’s NAV and guidelines regarding
the delegation of certain responsibilities
to the fund’s adviser.4 The staff further
estimates that on average each of 212
money market funds spends a total of
4.5 hours of director and legal time at
a total cost of approximately $916,370 to
review and amend written procedures
and guidelines each year.5 Finally, the
staff estimates that one money market
fund that experiences a change in
certain eligibility standards for portfolio
securities or an event of default or
insolvency relating to portfolio
securities spends a total of one and a
half hours of professional legal time (at
$109.97 per hour) documenting board
determinations and notifying the
Commission regarding the event, for a
total of $165. Thus, the Commission
estimates the total annual burden of the
rule’s information collection
requirements are 1,034,800 hours at an
annual cost of $80 million.6
Based on these estimates, Commission
staff estimates the total burden of the
rule’s paperwork requirements for
money market funds to be 1,034,800
hours.7 This is an increase from the
previous estimate of 480,830 hours. The
4 This estimate is based on information from
iMoneyNet’s database. During the past three years,
an average of 24 new money market funds have
been created annually. In calculating industry costs
for complying with the information collection
requirements of rule 2a–7, the Commission staff
estimate that fund boards’ hourly rate is $2000 per
hour. The estimated costs for professional and
support staff time were based on the average annual
salaries reported in the SIA Salary Guides. The
estimated costs for legal time was based on the
weighted average of associate general counsel
salaries reported in the SIA Salary Guides and New
York law firm attorney salaries (outside counsel)
based on a survey conducted by the National Law
Journal available at https://www.law.com/special/
professionals/nlj/2002/firm_by_firm_
sampling_of_billing_rates_nationwide.shtml.
5 For PRA purposes we assumed that on average
25% of money market funds would review and
update their procedures on an annual basis.
6 A significant portion of the recordkeeping
burden involves organizing information that the
funds already collect when initially purchasing
securities. In addition, when a money market fund
analyzes a security, the analysis need not be
presented in any particular format. Money market
funds therefore have a choice of methods for
maintaining these records that vary in technical
sophistication and formality (e.g., handwritten
notes, computer disks, etc.). Accordingly, the cost
of preparing these documents may vary
significantly among individual funds. The burden
hours associated with filing reports to the
Commission as an exhibit to Form N–SAR are
included in the PRA burden estimate for that form.
7 This estimate is based on the following
calculation: (847 × 1220) + (1 × 1.5) + (24 × 21) +
(212 × 4.5) = 1,034,800.
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increase is attributable to updated
information from money market funds
regarding hourly burdens and the
significant differences in burden hours
reported by the funds selected at
random to be surveyed in different
submission years.
These estimates of burden hours are
made solely for the purposes of the
Paperwork Reduction Act. The
estimates are not derived from a
comprehensive or even a representative
survey or study of Commission rules.
In addition to the burden hours,
Commission staff estimates that money
market funds will incur costs to
preserve records required under rule
2a–7. These costs will vary significantly
for individual funds, depending on the
amount of assets under fund
management and whether the fund
preserves its records in a storage facility
in hard copy or has developed and
maintains a computer system to create
and preserve compliance records.8
Commission staff estimates that the
amount an individual fund may spend
ranges from $100 per year to $300,000.
Based on a cost of $0.0000204 per dollar
of assets under management for small
fund, $0.0000005 per dollar assets
under management for medium funds,
and $0.0000046 per dollar of assets
under management for large funds,9 the
staff estimates compliance with rule 2a–
7 costs the fund industry approximately
$7.6 million per year.10 Based on
responses from individuals in the
money market fund industry, the staff
estimates that some of the largest fund
complexes have created computer
programs for maintaining and
preserving compliance records for rule
2a–7. Based on a cost of $0.0000231 per
dollar of assets under management for
large funds, the staff estimates that total
annualized capital/startup costs range
8 The amount of assets under management in
individual money market funds ranges from
approximately $400,000 to $109 billion.
9 For purpose of this PRA submission,
Commission staff used the following categories for
fund sizes: (i) small—money market funds with $50
million or less in assets under management, (ii)
medium—money market funds with more than $50
million up to and including $1 billion in assets
under management; and (iii) large—money market
funds with more than $1 billion in assets under
management.
10 The staff estimated the annual cost of
preserving the required books and records by
identifying the annual costs incurred by several
funds and then relating this total cost to the average
net assets of these funds during the year. With a
total of $2.2 billion under management in small
funds, $174.1 billion under management in medium
funds and $1623.8 billion under management in
large funds, the costs of preservation were
estimated as follows: (0.0000204 × $2.2 billion) +
(0.0000005 × $174.1) + (0.0000046 × $1623.8
billion) = $7.6 million. See supra note 9 regarding
sizes of large, medium, and small funds.
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from $0 for small funds to $37.5 million
for all large funds. Commission staff
further estimates that, even absent the
requirements of rule 2a–7, money
market funds would spend at least half
of the amount for capital costs ($19
million) and for record preservation
($3.8 million) to establish and maintain
these records and the systems for
preserving them as a part of sound
business practices to ensure
diversification and minimal credit risk
in a portfolio for a fund that seeks to
maintain a stable price per share.
The collections of information
required by rule 2a–7 are necessary to
obtain the benefits described above.
Notices to the Commission will not be
kept confidential. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid control number.
General comments regarding the
above information should be directed to
the following persons: (i) Desk Officer
for the Securities and Exchange
Commission, Office of Information and
Regulatory Affairs, Office of
Management and Budget, Room 10102,
New Executive Office Building,
Washington, DC 20503 or e-mail to:
David_Rostker@omb.eop.gov; and (ii) R.
Corey Booth, Director/Chief Information
Officer, Office of Information
Technology, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549. Comments must
be submitted to OMB within 30 days of
this notice.
February 27, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6–3160 Filed 3–6–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request; Copies Available
From: Securities and Exchange
Commission, Office of Filings and
Information Services, Washington, DC
20549.
Extension:
Form TH; OMB Control No. 3235–0425;
SEC File No. 270–377.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget a
request for extension of the previously
E:\FR\FM\07MRN1.SGM
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Federal Register / Vol. 71, No. 44 / Tuesday, March 7, 2006 / Notices
approved collection of information
discussed below.
Form TH under the Securities Act of
1933, the Securities Exchange Act of
1934, the Trust Indenture Act of 1939
and the Investment Company Act of
1940 is used by registrants to notify the
Commission that an electronic filer is
relying on the temporary hardship
exemption for the filing of a document
in paper format that would otherwise be
required to be filed electronically as
prescribed by Rule 201(a) of Regulation
S–T. Form TH is a public document and
is filed on occasion. Form TH must be
filed every time an electronic filer
experiences unanticipated technical
difficulties preventing the timely
preparation and submission of a
required electronic filing.
Approximately 70 registrants file Form
TH and it takes an estimated .33 hours
per response for a total annual burden
of 23 hours.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Written comments regarding the
above information should be directed to
the following persons: (i) Desk Officer
for the Securities and Exchange
Commission, Office of Information and
Regulatory Affairs, Office of
Management and Budget, Room 10102,
New Executive Office Building,
Washington, DC 20503; or send an email to David_Rostker@omb.eop.gov;
and (ii) R. Corey Booth, Director/Chief
Information Officer, Office of
Information Technology, Securities and
Exchange Commission, 100 F Street,
NE., Washington, DC 20549. Comments
must be submitted to OMB within 30
days of this notice.
Dated: February 27, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6–3161 Filed 3–6–06; 8:45 am]
sroberts on PROD1PC70 with NOTICES
16:39 Mar 06, 2006
[Release No. 34–53390; File No. SR–ISE–
2006–08]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Order Granting Accelerated Approval
of a Proposed Rule Change
Establishing Fees for Historical
Options Tick Market Data for NonMembers
February 28, 2006.
On February 1, 2006, the International
Securities Exchange, Inc. (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend its Schedule of Fees to establish
non-member fees for historical options
tick market data, described below. The
ISE requested the Commission grant
accelerated approval of the proposed
rule change. The Commission did not
immediately grant accelerated approval.
Instead, the proposed rule change was
published for comment in the Federal
Register on February 9, 2006 for a 15day comment period, which expired on
February 24, 2006.3 The Commission
received no comments on the proposal.
Historical options tick market data is
Options Price Reporting Authority
(‘‘OPRA’’) tick data, a complete file,
tick-by-tick, of all quote and transaction
data of all instruments disseminated by
OPRA during a trading day. OPRA tick
data includes data from all six options
exchanges. On any given trading day,
OPRA tick data is publicly available and
may be stored. The OPRA tick data
collected and stored by ISE is neither
exclusive nor proprietary to the
Exchange. The ISE captures the OPRA
tick data and will make it available as
an ‘‘end of day’’ file 4 or as a ‘‘historical’’
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 53211
(February 2, 2006), 71 FR 6801. The instant
proposed rule change proposes to establish a fee for
non-ISE members only. The Exchange also filed a
separate proposed rule change, SR–ISE–2006–07,
Securities Exchange Act Release No. 53212
(February 2, 2006), 71 FR 6803 (February 9, 2006),
that established fees for ISE members. The proposed
fees for both ISE members and non-ISE members are
the same.
4 An end of day file refers to OPRA tick data for
a trading day that is distributed prior to the opening
of the next trading day. An end of day file will be
made available to subscribers as soon as practicable
at the end of each trading day on an on-going basis
pursuant to an annual subscription or through an
ad-hoc request.
2 17
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COMMISSION
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11457
file 5 for ISE members and non-ISE
members alike.6
The Commission has reviewed
carefully the proposed rule change and
finds that it is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.7 In
particular, the Commission finds that
the proposed rule change is consistent
with the requirement of Section 6(b)(4) 8
that an exchange have an equitable
allocation of reasonable dues, fees and
other charges among its members and
other persons using its facilities.
The Commission finds good cause for
approving this proposed rule change
before the 30th day after publication of
notice in the Federal Register. On
February 1, 2006, the ISE amended its
rules to give its members the
opportunity to access historical options
tick market data.9 The ISE asked the
Commission to approve the instant
proposed rule change on an accelerated
basis so that the ISE could offer the
same service to non-members (at the
same price) as soon as possible. As
mentioned above, the Commission
received no comments on the ISE’s
proposed rule change. The Commission
believes that the proposed rule change
raises no new issues or novel regulatory
questions, and that non-members
should have the ability to partake of this
service without unnecessary delay.
Accordingly, the Commission finds
good cause pursuant to section 19(b)(2)
of the Act,10 for approving the proposed
rule change prior to the 30th day after
publication in the Federal Register.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,11 that the
proposed rule change be, and hereby is
approved on an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–3162 Filed 3–6–06; 8:45 am]
BILLING CODE 8010–01–P
5 An end of day file that is distributed after the
start of the next trading day is called a historical
file. A historical file will be available to customers
for a pre-determined date range by ad-hoc requests
only.
6 See supra, at n.3.
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78f(b)(4).
9 See supra, at n.3.
10 15 U.S.C. 78s(b)(2).
11 Id.
12 17 CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 71, Number 44 (Tuesday, March 7, 2006)]
[Notices]
[Pages 11456-11457]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-3161]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request; Copies Available From: Securities and Exchange
Commission, Office of Filings and Information Services, Washington, DC
20549.
Extension:
Form TH; OMB Control No. 3235-0425; SEC File No. 270-377.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget a request for extension of the previously
[[Page 11457]]
approved collection of information discussed below.
Form TH under the Securities Act of 1933, the Securities Exchange
Act of 1934, the Trust Indenture Act of 1939 and the Investment Company
Act of 1940 is used by registrants to notify the Commission that an
electronic filer is relying on the temporary hardship exemption for the
filing of a document in paper format that would otherwise be required
to be filed electronically as prescribed by Rule 201(a) of Regulation
S-T. Form TH is a public document and is filed on occasion. Form TH
must be filed every time an electronic filer experiences unanticipated
technical difficulties preventing the timely preparation and submission
of a required electronic filing. Approximately 70 registrants file Form
TH and it takes an estimated .33 hours per response for a total annual
burden of 23 hours.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid control number.
Written comments regarding the above information should be directed
to the following persons: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503; or send an e-mail to David--
Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief
Information Officer, Office of Information Technology, Securities and
Exchange Commission, 100 F Street, NE., Washington, DC 20549. Comments
must be submitted to OMB within 30 days of this notice.
Dated: February 27, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6-3161 Filed 3-6-06; 8:45 am]
BILLING CODE 8010-01-P
