Proposed Collection; Comment Request, 65223-65224 [2011-27092]
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Federal Register / Vol. 76, No. 203 / Thursday, October 20, 2011 / Notices
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Act to promote fair and orderly markets
and ensure that exchange members
have, as the principle purpose of their
exchange memberships, the conduct of
a public securities business.
There are approximately 763
respondents that require an aggregate
total of 22 hours to comply with this
rule. Each of these approximately 763
respondents makes an estimated 20
annual responses, for an aggregate of
15,260 responses per year. Each
response takes approximately 5 seconds
to complete. Thus, the total compliance
burden per year is 22 hours (15,260 × 5
seconds/60 seconds per minute/60
minutes per hour = 22 hours). The
approximate cost per hour is $282,
resulting in a total cost of compliance
for the annual burden of $6,204 (22
hours @ $282).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
The Commission may not conduct or
sponsor a collection of information
unless it displays a currently valid
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid Office of Management and
Budget (OMB) control number.
Please direct your written comments
to: Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way,
Alexandria, Virginia 22312 or send an email to: PRA_Mailbox@sec.gov.
October 14, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–27093 Filed 10–19–11; 8:45 am]
BILLING CODE 8011–01–P
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SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Reports of Evidence of:
SEC File No. 270–514, OMB Control
No. 3235–0572.
Material Violations
Notice is hereby given that pursuant
to the Paperwork Reduction Act (PRA)
of 1995, 44 U.S.C. Sections 3501–3520,
the Securities and Exchange
Commission (‘‘Commission’’) is
soliciting comments on the collection of
information summarized below. The
Commission plans to submit the
existing collection of information to the
Office of Management and Budget for
extension.
On February 6, 2003, the Commission
published final rules, effective August 5,
2003, entitled ‘‘Standards of
Professional Conduct for Attorneys
Appearing and Practicing Before the
Commission in the Representation of an
Issuer’’ (17 CFR 205.1–205.7). The
information collection embedded in the
rules is necessary to implement the
Standards of Professional Conduct for
Attorneys prescribed by the rule and
required by Section 307 of the SarbanesOxley Act of 2002 (15 U.S.C. 7245). The
rules impose an ‘‘up-the-ladder’’
reporting requirement when attorneys
appearing and practicing before the
Commission become aware of evidence
of a material violation by the issuer or
any officer, director, employee, or agent
of the issuer. An issuer may choose to
establish a qualified legal compliance
committee (‘‘QLCC’’) as an alternative
procedure for reporting evidence of a
material violation. In the rare cases in
which a majority of a QLCC has
concluded that an issuer did not act
appropriately, the information may be
communicated to the Commission. The
collection of information is, therefore,
an important component of the
Commission’s program to discourage
violations of the Federal securities laws
and promote ethical behavior of
attorneys appearing and practicing
before the Commission.
The respondents to this collection of
information are attorneys who appear
and practice before the Commission
and, in certain cases, the issuer, and/or
officers, directors and committees of the
issuer. We believe that, in providing
quality representation to issuers,
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65223
attorneys report evidence of violations
to others within the issuer, including
the Chief Legal Officer, the Chief
Executive Officer, and, where necessary,
the directors. In addition, officers and
directors investigate evidence of
violations and report within the issuer
the results of the investigation and the
remedial steps they have taken or
sanctions they have imposed. Except as
discussed below, we therefore believe
that the reporting requirements imposed
by the rule are ‘‘usual and customary’’
activities that do not add to the burden
that would be imposed by the collection
of information.
Certain aspects of the collection of
information, however, may impose a
burden. For an issuer to establish a
QLCC, the QLCC must adopt written
procedures for the confidential receipt,
retention, and consideration of any
report of evidence of a material
violation. We estimate for purposes of
the PRA that there are approximately
16,517 issuers that are subject to the
rules.1 Of these, we estimate that
approximately 3.8%, or 637, have
established or will establish a QLCC.2
Establishing the written procedures
required by the rule should not impose
a significant burden. We assume that an
issuer would incur a greater burden in
the year that it first establishes the
procedures than in subsequent years, in
which the burden would be incurred in
updating, reviewing, or modifying the
procedures. For purposes of the PRA,
we assume that an issuer would spend
6 hours every three-year period on the
procedures. This would result in an
average burden of 2 hours per year.
Thus, we estimate for purposes of the
PRA that the total annual burden
imposed by the collection of
information would be 1,274 hours.
Assuming half of the burden hours will
be incurred by outside counsel at a rate
of $500 per hour would result in a cost
of $318,500.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act, and is not
1 This estimate is based, in part, on the total
number of operating companies that filed annual
reports on Form 10–K, Form 20–F, or Form 40–F,
during the 2011 fiscal year and an estimate of the
average number of issuers that may have a
registration statement filed under the Securities Act
pending with the Commission at any time (14,000).
In addition, we estimate that approximately 2,517
investment companies currently file periodic
reports on Form N–SAR.
2 We base this estimate on the number of issuers
who have reported in filings with the Commission
that they have created QLCCs. Indications are that
the 2005 estimate of the percentage of issuers that
would establish QLCCs (10%) was high. Our
adjusted estimate in the percentage of QLCCs
(3.8%) results in a reduced burden estimate as
compared to the previously-approved collection.
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65224
Federal Register / Vol. 76, No. 203 / Thursday, October 20, 2011 / Notices
derived from a comprehensive or even
a representative survey or study. 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.
Written comments are requested on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information has practical utility; (b) the
accuracy of the Commission’s estimate
of the burden[s] of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way,
Alexandria, Virginia 22312; or send an
e-mail to: PRA_Mailbox@sec.gov.
Dated: October 13, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–27092 Filed 10–19–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65577; File No. SR–CME–
2011–10]
Self-Regulatory Organizations;
Chicago Mercantile Exchange, Inc.;
Notice of Filing and Order Granting
Accelerated Approval of Proposed
Rule Change To Amend Its Rules
Relating to Interest Rate Swaps
Clearing
sroberts on DSK5SPTVN1PROD with NOTICES
October 14, 2011.
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 October
7, 2011, Chicago Mercantile Exchange
Inc. (‘‘CME’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change described in Items I and II
below, which items have been prepared
primarily by CME. The Commission is
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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18:59 Oct 19, 2011
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publishing this Notice and Order to
solicit comments on the proposed rule
change from interested persons and to
approve the proposed rule change on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of Terms of Substance of the
Proposed Rule Change
The proposed rule changes amend
current CME rules to expand its interest
rate swaps offering to include interest
rate swaps denominated in certain
additional currencies and rate options
and to clarify certain registration
requirements for clearing interest rate
swap products. CME is also at the same
time amending its Manual of Operation
for CME Cleared Interest Rate Swaps to
reflect the new denominations and rate
options. The text of the proposed rule
change is available at the CME’s Web
site at https://www.cmegroup.com, at the
principal office of CME, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of Purpose of, and Statutory
Basis for, the Proposed Rule Change
In its filing with the Commission,
CME included statements concerning
the purpose 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. CME has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of Purpose of, and Statutory
Basis for, the Proposed Rule Change
CME currently offers clearing services
for certain interest rate swap products.
These proposed rule changes are
intended to expand the listing of
interest rate swaps denominated in
certain additional currencies and rate
options. CME expects to accept euro
denominated interest rate swaps
referencing Euribor for clearing on or
around October 17, 2011. Great British
Pound, Japanese Yen, Canadian Dollar
and Swiss Franc denominated interest
rate swaps and related interbank rates
are expected to be accepted for clearing
prior to the end of the year.
Additionally, CME Rule 90005 is being
amended to clarify certain registration
requirements for clearing interest rate
swap products.
To accommodate the changes, CME
has also included changes to its Manual
of Operations for CME Cleared Interest
Rate Swaps to reflect the new
denominations and rate options.
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CME notes that it has also submitted
the proposed rule changes that are the
subject of this filing to its primary
regulator, the Commodity Futures
Trading Commission (‘‘CFTC’’). The text
of the CME rule proposed amendments
is attached to CME’s filing of proposed
rule change as Exhibit 5, with additions
underlined and deletions in brackets.
CME believes the proposed rule
changes are consistent with the
requirements of the Exchange Act
including Section 17A of the Exchange
Act because they involve clearing of
swaps and thus relate solely to the
CME’s swaps clearing activities
pursuant to its registration as a
derivatives clearing organization under
the Commodity Exchange Act (‘‘CEA’’)
and do not significantly affect any
securities clearing operations of the
clearing agency or any related rights or
obligations of the clearing agency or
persons using such service. CME further
notes that the policies of the CEA with
respect to clearing are comparable to a
number of the policies underlying the
Exchange Act, such as promoting
market transparency for over-thecounter derivatives markets, promoting
the prompt and accurate clearance of
transactions and protecting investors
and the public interest. The proposed
rule changes accomplish those
objectives by offering investors clearing
for an expanded range of interest rate
swap products.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CME does not believe that the
proposed rule change will have any
impact, or impose any burden, on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
CME has not solicited, and does not
intend to solicit, comments regarding
this proposed rule change. CME has not
received any unsolicited written
comments from interested parties.
III. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Electronic comments may be
submitted by using the Commission’s
Internet comment form (https://
www.sec.gov/rules/sro.shtml), or send
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]]>Agencies
[Federal Register Volume 76, Number 203 (Thursday, October 20, 2011)]
[Notices]
[Pages 65223-65224]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-27092]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Reports of Evidence of:
SEC File No. 270-514, OMB Control No. 3235-0572.
Material Violations
Notice is hereby given that pursuant to the Paperwork Reduction
Act (PRA) of 1995, 44 U.S.C. Sections 3501-3520, the Securities and
Exchange Commission (``Commission'') is soliciting comments on the
collection of information summarized below. The Commission plans to
submit the existing collection of information to the Office of
Management and Budget for extension.
On February 6, 2003, the Commission published final rules,
effective August 5, 2003, entitled ``Standards of Professional Conduct
for Attorneys Appearing and Practicing Before the Commission in the
Representation of an Issuer'' (17 CFR 205.1-205.7). The information
collection embedded in the rules is necessary to implement the
Standards of Professional Conduct for Attorneys prescribed by the rule
and required by Section 307 of the Sarbanes-Oxley Act of 2002 (15
U.S.C. 7245). The rules impose an ``up-the-ladder'' reporting
requirement when attorneys appearing and practicing before the
Commission become aware of evidence of a material violation by the
issuer or any officer, director, employee, or agent of the issuer. An
issuer may choose to establish a qualified legal compliance committee
(``QLCC'') as an alternative procedure for reporting evidence of a
material violation. In the rare cases in which a majority of a QLCC has
concluded that an issuer did not act appropriately, the information may
be communicated to the Commission. The collection of information is,
therefore, an important component of the Commission's program to
discourage violations of the Federal securities laws and promote
ethical behavior of attorneys appearing and practicing before the
Commission.
The respondents to this collection of information are attorneys who
appear and practice before the Commission and, in certain cases, the
issuer, and/or officers, directors and committees of the issuer. We
believe that, in providing quality representation to issuers, attorneys
report evidence of violations to others within the issuer, including
the Chief Legal Officer, the Chief Executive Officer, and, where
necessary, the directors. In addition, officers and directors
investigate evidence of violations and report within the issuer the
results of the investigation and the remedial steps they have taken or
sanctions they have imposed. Except as discussed below, we therefore
believe that the reporting requirements imposed by the rule are ``usual
and customary'' activities that do not add to the burden that would be
imposed by the collection of information.
Certain aspects of the collection of information, however, may
impose a burden. For an issuer to establish a QLCC, the QLCC must adopt
written procedures for the confidential receipt, retention, and
consideration of any report of evidence of a material violation. We
estimate for purposes of the PRA that there are approximately 16,517
issuers that are subject to the rules.\1\ Of these, we estimate that
approximately 3.8%, or 637, have established or will establish a
QLCC.\2\ Establishing the written procedures required by the rule
should not impose a significant burden. We assume that an issuer would
incur a greater burden in the year that it first establishes the
procedures than in subsequent years, in which the burden would be
incurred in updating, reviewing, or modifying the procedures. For
purposes of the PRA, we assume that an issuer would spend 6 hours every
three-year period on the procedures. This would result in an average
burden of 2 hours per year. Thus, we estimate for purposes of the PRA
that the total annual burden imposed by the collection of information
would be 1,274 hours. Assuming half of the burden hours will be
incurred by outside counsel at a rate of $500 per hour would result in
a cost of $318,500.
---------------------------------------------------------------------------
\1\ This estimate is based, in part, on the total number of
operating companies that filed annual reports on Form 10-K, Form 20-
F, or Form 40-F, during the 2011 fiscal year and an estimate of the
average number of issuers that may have a registration statement
filed under the Securities Act pending with the Commission at any
time (14,000). In addition, we estimate that approximately 2,517
investment companies currently file periodic reports on Form N-SAR.
\2\ We base this estimate on the number of issuers who have
reported in filings with the Commission that they have created
QLCCs. Indications are that the 2005 estimate of the percentage of
issuers that would establish QLCCs (10%) was high. Our adjusted
estimate in the percentage of QLCCs (3.8%) results in a reduced
burden estimate as compared to the previously-approved collection.
---------------------------------------------------------------------------
The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act, and is not
[[Page 65224]]
derived from a comprehensive or even a representative survey or study.
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.
Written comments are requested on: (a) Whether the collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information has practical
utility; (b) the accuracy of the Commission's estimate of the burden[s]
of the collection of information; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques or other
forms of information technology. Consideration will be given to
comments and suggestions submitted in writing within 60 days of this
publication.
Please direct your written comments to Thomas Bayer, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312; or
send an e-mail to: PRA_Mailbox@sec.gov.
Dated: October 13, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-27092 Filed 10-19-11; 8:45 am]
BILLING CODE 8011-01-P
