Submission for OMB Review; Comment Request, 968-969 [E9-160]
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Federal Register / Vol. 74, No. 6 / Friday, January 9, 2009 / Notices
18f–3 plan’’).4 Approval of the plan
must occur before the fund issues any
shares of multiple classes and whenever
the fund materially amends the plan. In
approving the plan, a majority of the
fund board, including a majority of the
fund’s independent directors, must
determine that the plan is in the best
interests of each class and the fund as
a whole.
The requirement that the fund prepare
and directors approve a written rule
18f–3 plan is intended to ensure that the
fund compiles information relevant to
the fairness of the separate arrangement
and expense allocation for each class,
and that directors review and approve
the information. Without a blueprint
that highlights material differences
among classes, directors might not
perceive potential conflicts of interests
when they determine whether the plan
is in the best interests of each class and
the fund. In addition, the plan may be
useful to Commission staff in reviewing
the fund’s compliance with the rule.
There are approximately 5,300
multiple class funds offered by 1,120
registrants.5 Based on a review of
typical rule 18f–3 plans, the
Commission’s staff estimates that the
1,120 registrants together make an
average of 560 responses each year to
prepare and approve a written rule 18f–
3 plan, requiring approximately 10
hours per response and a total of 5,600
burden hours per year in the aggregate.6
The staff estimates that preparation of
the rule 18f–3 plan may require 6 hours
of the services of an attorney employed
by the fund, at a cost of approximately
$295 per hour for professional time,7
and approval of the plan may require 4
hours of the services of the board of
directors, at a cost of approximately
4 Rule
18f–3(d).
estimate is based on data from Form N–
SAR, the semi-annual report that funds file with the
Commission. In previous years, the staff estimated
that each multiple class fund prepared and
approved a rule 18f–3 plan. However, the staff has
revised this estimate to reflect its belief that most
registrants prepare and approve a single rule 18f–
3 plan for all series funds offered by the registrants.
6 The estimate reflects the assumption that each
registrant prepares and approves a rule 18f–3 plan
every two years when issuing a new fund or new
class or amending a plan (or that 560 of all 1,120
registrants prepare and approve a plan each year).
The estimate assumes that the time required to
prepare a plan is 6 hours per plan (or 3360 hours
for 560 registrants annually), and the time required
to approve a plan is an additional 4 hours per plan
(or 2240 hours for 560 registrants annually).
7 This hourly rate estimate is derived from annual
salaries reported in: Securities Industry and
Financial Markets Association, Management and
Professional Earnings in the Securities Industry
(2007), modified to account for an 1800-hour work
year and multiplied by 5.35 to account for bonuses,
firm size, employee benefits and overhead.
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$2000 per hour.8 The staff therefore
estimates that the aggregate annual cost
of complying with the paperwork
requirements of the rule is
approximately $5,471,200 ((6 hours ×
560 responses × $295 = $991,200) + (4
hours × 560 responses × $2000 =
4,480,000)).
The estimated annual burden of 5,600
hours represents a decrease of 110 hours
over the prior estimate of 5,710 hours.
The decrease in burden hours is
attributable to a change in the estimate
of the number of responses that are
submitted pursuant to the rule.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act. The estimate
is not derived from a comprehensive or
even a representative survey or study of
the costs of Commission rules.
Complying with this collection of
information requirement is mandatory.
Responses 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.
Please direct general comments
regarding the above information to the
following persons: (i) Desk Officer for
the Securities and Exchange
Commission, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503
or send an e-mail to:
Shagufta_Ahmed@omb.eop.gov; and (ii)
Charles Boucher Director/CIO,
Securities and Exchange Commission,
C/O Shirley Martinson, 6432 General
Green Way, Alexandria, VA 22312; or
send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
January 5, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–159 Filed 1–8–09; 8:45 am]
BILLING CODE 8011–01–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
20549–0213.
Extension:
8 This hourly rate estimate is derived from fund
representatives.
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Rule 30b2–1; SEC File No. 270–213; OMB
Control No. 3235–0220.
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 (the
‘‘Commission’’) has submitted to the
Office of Management and Budget a
request for extension of the previously
approved collection of information
discussed below.
Rule 30b2–1 (17 CFR 270.30b2–1)
under the Investment Company Act of
1940 (15 U.S.C. 80a) requires the filing
of four copies of every periodic or
interim report transmitted by or on
behalf of any registered investment
company to its stockholders.1 This
requirement ensures that the
Commission has information in its files
to perform its regulatory functions and
to apprise investors of the operational
and financial condition of a registered
investment companies.2
Registered management investment
companies are required to send reports
to stockholders at least twice annually.
In addition, under rule 30b2–1, each
registered investment company is
required to file with the Commission
Form N–CSR (17 CFR 274.128),
certifying the financial statements.3 The
annual burden of filing the reports is
included in the burden estimate for
Form N–CSR; however, we are
requesting one burden hour remain in
inventory for administrative purposes.
The burden estimate for rule 30b2–1
is made solely for the purposes of the
Act and is not derived from a
comprehensive or even representative
survey or study of the costs of
Commission rules and forms.
The collection of information under
rule 30b2–1 is mandatory. The
information provided by rule 30b2–1 is
not 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 OMB control number.
Please direct general comments
regarding the above information to the
following persons: (i) Desk Officer for
the Securities and Exchange
Commission, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503
or send an e-mail to:
1 Most filings are made via the Commission’s
electronic filing system; therefore, paper filings
under Rule 30b2–1 occur only in exceptional
circumstances. Electronic filing eliminates the need
for multiple copies of filings.
2 Annual and periodic reports to the Commission
become part of its public files and, therefore, are
available for use by prospective investors and
stockholders.
3 Rule 30b2–1(a) [17 CFR 270.30b2–1(a)].
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09JAN1
Federal Register / Vol. 74, No. 6 / Friday, January 9, 2009 / Notices
Shagufta_Ahmed@omb.eop.gov; and (ii)
Charles Boucher, Director/CIO,
Securities and Exchange Commission,
C/O Shirley Martinson, 6432 General
Green Way, Alexandria, VA 22312; or
send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
underlying security and some additional
modifications to this section. The text of
the proposed rule change is available
from the principal office of the
Exchange, at the Commission’s Public
Reference Room and also on the
Exchange’s Internet Web site at https://
nasdaqtrader.com/Trader.aspx?id=
Boston_Stock_Exchange.
January 5, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–160 Filed 1–8–09; 8:45 am]
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59197; File No. SR–BSE–
2008–52]
Self-Regulatory Organizations; the
Boston Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
BOX Rules Relating to Obvious Error
Provisions To Address Catastrophic
Errors, Erroneous Quotes or Prints in
the Underlying Security, and Some
Additional Modifications
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 )
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
24, 2008, the Boston Stock Exchange,
Inc.) (‘‘BSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by BSE. The Exchange
filed the proposed rule change as a
‘‘non-controversial’’ proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b-4(f)(6)
thereunder,4 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
mstockstill on PROD1PC66 with NOTICES
January 5, 2009.
The purpose of the proposed rule
change is to amend Chapter V, Section
20 of the BOX Rules (the ‘‘Obvious Error
Rule’’) to address certain extreme
circumstances. In particular, the
Exchange proposes to add criteria for
identifying ‘‘Catastrophic Errors’’ and
making adjustments when Catastrophic
Errors occur, as well as a streamlined
procedure for reviewing actions taken in
these extreme circumstances. This
proposed rule change also seeks to
incorporate provisions within the BOX
Obvious Error Rule which will allow for
the nullification or adjustment of trades
that are the result of either an erroneous
quote or print in the underlying
security. In addition, the proposed rule
also amends the Supplementary
Material to remove references to a $.05
offer and to provide that executions may
be busted, if at least one strike below
(for calls) or above (for puts), rather than
the three strikes.
The Exchange notes that, currently
under the Obvious Error Rule, trades
that result from an Obvious Error may
be adjusted or busted according to
objective standards. Under the rule,
whether an Obvious Error has occurred
is determined by comparing the
execution price to the Theoretical Price
of the option. The rule requires that
participants notify the Market
Operations Center ) (‘‘MOC’’) within a
short time period following the
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Chapter V, Section 20 (Obvious Errors)
of the Rules of the Boston Options
Exchange Group, LLC ) (‘‘BOX’’) to
address catastrophic errors )
(‘‘Catastrophic Errors’’) as well as
erroneous quotes or prints in the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
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969
execution of a trade (five minutes for
market makers and 20 minutes for nonmarket makers) if they believe the trade
qualifies as an Obvious Error. Trades
that qualify for adjustment are adjusted
under the rule to a price that matches
the Theoretical Price plus or minus an
adjustment value, which is $.15 if the
theoretical value is under $3 and $.30 if
the theoretical value is at or above $3.
By adjusting trades above or below the
Theoretical Price, the rule assesses a
‘‘penalty’’ in that the adjustment price is
not as favorable as what the party
making the error would have received
had it not made the error.
In formulating the Obvious Error
Rule, the Exchange has weighed
carefully the need to assure that one
market participant is not permitted to
receive a wind-fall at the expense of
another market participant that made an
Obvious Error, against the need to
assure that market participants are not
simply being given an opportunity to
reconsider poor trading decisions. The
Exchange states that, while it believes
that the Obvious Error Rule strikes the
correct balance in most situations, in
some extreme situations, participants
may not be aware of errors that result in
very large losses within the time periods
required under the rule. In this type of
extreme situation, the Exchange believes
participants should be given more time
to seek relief so that there is a greater
opportunity to mitigate very large losses
and reduce the corresponding large
wind-falls. However, to maintain the
appropriate balance, the Exchange
believes participants should only be
given more time when the execution
price is much further away from the
Theoretical Price than is required for
Obvious Errors, and that the adjustment
‘‘penalty’’ should be much greater, so
that relief is only provided in extreme
circumstances.5
Accordingly, the Exchange proposes
to amend the Obvious Error Rule to
address ‘‘Catastrophic Errors.’’ Under
the proposed rule, participants will
have until 8:30 a.m. Eastern Time on the
day following the trade to notify the
MOC of a potential Catastrophic Error.
For trades that take place in an expiring
series on expiration Friday, participants
must notify the MOC of a potential
Catastrophic Error by 5 p.m. Eastern
Time that same day. Once a participant
has notified the MOC of a Catastrophic
Error within the required time period,
5 The Exchange does not believe the type of
extreme situation that is covered by the proposed
rule would occur in the normal course of trading.
Rather, this type of situation could potentially
occur as a result of, for example, an error in a
paticipant’s quotation system that causes a market
maker to severly misprice an option.
E:\FR\FM\09JAN1.SGM
09JAN1
]]>Agencies
[Federal Register Volume 74, Number 6 (Friday, January 9, 2009)]
[Notices]
[Pages 968-969]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-160]
-----------------------------------------------------------------------
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
20549-0213.
Extension:
Rule 30b2-1; SEC File No. 270-213; OMB Control No. 3235-0220.
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 (the ``Commission'') has submitted to the Office of
Management and Budget a request for extension of the previously
approved collection of information discussed below.
Rule 30b2-1 (17 CFR 270.30b2-1) under the Investment Company Act of
1940 (15 U.S.C. 80a) requires the filing of four copies of every
periodic or interim report transmitted by or on behalf of any
registered investment company to its stockholders.\1\ This requirement
ensures that the Commission has information in its files to perform its
regulatory functions and to apprise investors of the operational and
financial condition of a registered investment companies.\2\
---------------------------------------------------------------------------
\1\ Most filings are made via the Commission's electronic filing
system; therefore, paper filings under Rule 30b2-1 occur only in
exceptional circumstances. Electronic filing eliminates the need for
multiple copies of filings.
\2\ Annual and periodic reports to the Commission become part of
its public files and, therefore, are available for use by
prospective investors and stockholders.
---------------------------------------------------------------------------
Registered management investment companies are required to send
reports to stockholders at least twice annually. In addition, under
rule 30b2-1, each registered investment company is required to file
with the Commission Form N-CSR (17 CFR 274.128), certifying the
financial statements.\3\ The annual burden of filing the reports is
included in the burden estimate for Form N-CSR; however, we are
requesting one burden hour remain in inventory for administrative
purposes.
---------------------------------------------------------------------------
\3\ Rule 30b2-1(a) [17 CFR 270.30b2-1(a)].
---------------------------------------------------------------------------
The burden estimate for rule 30b2-1 is made solely for the purposes
of the Act and is not derived from a comprehensive or even
representative survey or study of the costs of Commission rules and
forms.
The collection of information under rule 30b2-1 is mandatory. The
information provided by rule 30b2-1 is not 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 OMB
control number.
Please direct general comments regarding the above information to
the following persons: (i) Desk Officer for the Securities and Exchange
Commission, Office of Management and Budget, Room 10102, New Executive
Office Building, Washington, DC 20503 or send an e-mail to:
[[Page 969]]
Shagufta_Ahmed@omb.eop.gov; and (ii) Charles Boucher, Director/CIO,
Securities and Exchange Commission, C/O Shirley Martinson, 6432 General
Green Way, Alexandria, VA 22312; or send an e-mail to: PRA_
Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of
this notice.
January 5, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-160 Filed 1-8-09; 8:45 am]
BILLING CODE 8011-01-P
