Sunshine Act Meeting, 25630-25631 [2014-10362]
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emcdonald on DSK67QTVN1PROD with NOTICES
25630
Federal Register / Vol. 79, No. 86 / Monday, May 5, 2014 / Notices
estimates that each one of these firms
processes an average of three new
customers for penny stocks per week.
Thus, each respondent processes
approximately 156 penny stock
disclosure documents per year. If
communications in tangible form alone
are used to satisfy the requirements of
Rule 15g–2, then the copying and
mailing of the penny stock disclosure
document takes no more than two
minutes. Thus, the total associated
burden is approximately 2 minutes per
response, or an aggregate total of 312
minutes per respondent. Since there are
221 respondents, the current annual
burden is 68,952 minutes (312 minutes
per each of the 221 respondents) or
1,150 hours for this third party
disclosure burden. In addition, brokerdealers incur a recordkeeping burden of
approximately two minutes per
response when filing the completed
penny stock disclosure documents as
required pursuant to the Rule
15(g)(2)(c), which requires a brokerdealer to preserve a copy of the written
acknowledgement pursuant to Rule
17a–4(b) of the Exchange Act. Since
there are approximately 156 responses
for each respondent, the respondents
incur an aggregate recordkeeping
burden of 68,952 minutes (221
respondents × 156 responses for each ×
2 minutes per response) or 1,150 hours,
under Rule 15g–2. Accordingly, the
current aggregate annual hour burden
associated with Rule 15g–2 (assuming
that all respondents provide tangible
copies of the required documents) is
approximately 2,300 hours (1,150 third
party disclosure hours + 1,150
recordkeeping hours).
The burden hours associated with
Rule 15g–2 may be slightly reduced
when the penny stock disclosure
document required under the rule is
provided through electronic means such
as email from the broker-dealer (e.g., the
broker-dealer respondent may take only
one minute, instead of the two minutes
estimated above, to provide the penny
stock disclosure document by email to
its customer). In this regard, if each of
the customer respondents estimated
above communicates with his or her
broker-dealer electronically, the total
ongoing respondent burden is
approximately 1 minute per response, or
an aggregate total of 156 minutes (156
customers × 1 minutes per respondent).
Assuming 221 respondents, the annual
third party disclosure burden, if
electronic communications were used
by all customers, is 34,476 minutes (156
minutes per each of the 221
respondents) or 575 hours. If all
respondents were to use electronic
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means, the recordkeeping burden would
be 68,952 minutes or 1,150 hours (the
same as above). Thus, if all brokerdealer respondents obtain and send the
documents required under the rules
electronically, the aggregate annual hour
burden associated with Rule 15g–2 is
1,725 (575 hours + 1,150 hours).
In addition, if the penny stock
customer requests a paper copy of the
information on the Commission’s Web
site regarding microcap securities,
including penny stocks, from his or her
broker-dealer, the printing and mailing
of the document containing this
information takes no more than two
minutes per customer. Because many
investors have access to the
Commission’s Web site via computers
located in their homes, or in easily
accessible public places such as
libraries, then, at most, a quarter of
customers who are required to receive
the Rule 15g–2 disclosure document
request that their broker-dealer provide
them with the additional microcap and
penny stock information posted on the
Commission’s Web site. Thus, each
broker-dealer respondent processes
approximately 39 requests for paper
copies of this information per year or an
aggregate total of 78 minutes per
respondent (2 minutes per customer ×
39 requests per respondent). Since there
are 221 respondents, the estimated
annual burden is 17,238 minutes (78
minutes per each of the 221
respondents) or 288 hours. This is a
third party disclosure type of burden.
We have no way of knowing how
many broker-dealers and customers will
choose to communicate electronically.
Assuming that 50 percent of
respondents continue to provide
documents and obtain signatures in
tangible form and 50 percent choose to
communicate electronically to satisfy
the requirements of Rule 15g–2, the total
aggregate burden hours would be 2,301
((aggregate burden hours for sending
disclosure documents and obtaining
signed customer acknowledgements in
tangible form × 0.50 of the respondents
= 1,150 hours) + (aggregate burden
hours for electronically signed and
transmitted documents × 0.50 of the
respondents = 863 hours) + (288 burden
hours for those customers making
requests for a copy of the information on
the Commission’s Web site)).
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
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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.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov..
Dated: April 29, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–10142 Filed 5–2–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, May 8, 2014 at 2:00 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Aguilar, as duty
officer, voted to consider the items
listed for the Closed Meeting in closed
session.
The subject matter of the Closed
Meeting will be:
Institution and settlement of
injunctive actions;
institution and settlement of
administrative proceedings;
consideration of amicus participation;
adjudicatory matters; and
other matters relating to enforcement
proceedings.
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Federal Register / Vol. 79, No. 86 / Monday, May 5, 2014 / Notices
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact the Office of the Secretary at
(202) 551–5400.
Dated: May 1, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–10362 Filed 5–1–14; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72042; File No. SR–CFE–
2014–001]
Self-Regulatory Organizations; CBOE
Futures Exchange, LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Adopt and
Amend Certain Customer Protection
and Financial Rules
April 29, 2014.
Pursuant to Section 19(b)(7) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
April 11, 2014, CBOE Futures Exchange,
LLC (‘‘CFE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change described in
Items I, II, and III below, which Items
have been prepared by CFE. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons. CFE
also has filed this proposed rule change
with the Commodity Futures Trading
Commission (‘‘CFTC’’). CFE filed a
written certification with the CFTC
under Section 5c(c) of the Commodity
Exchange Act (‘‘CEA’’) 2 on April 11,
2014.
emcdonald on DSK67QTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Description of the Proposed Rule
Change
The Exchange proposes to adopt and
amend certain customer protection and
financial rules that are applicable to
security futures traded on CFE. The only
security futures currently traded on CFE
are traded under Chapter 16 of CFE’s
Rulebook which is applicable to
Individual Stock Based and ExchangeTraded Fund Based Volatility Index
security futures. The rule amendments
included as part of this rule change
relate generally to amending CFE Rules
to incorporate new and amended CFTC
1 15
27
U.S.C. 78s(b)(7).
U.S.C. 7a–2(c).
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regulations concerning customer
protection and the financial surveillance
of futures commission merchants
(‘‘FCMs’’). The text of the proposed rule
change is attached as Exhibit 4.3
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, CFE
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. CFE 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 the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed CFE rule
amendments included as part of this
rule change is to amend CFE rules (i) to
incorporate the final regulations
adopted by the CFTC under the caption
Enhancing Protections Afforded
Customers and Customer Funds Held by
Futures Commission Merchants and
Derivatives Clearing Organizations
(‘‘CFTC Rulemaking’’) 4 and (ii) to
enhance the financial surveillance of
FCMs that are Trading Privilege Holders
(‘‘TPHs’’). The rule amendments
included as part of this rule change are
to apply to all products traded on CFE,
including both non-security futures and
security futures. CFE is making these
rule amendments in conjunction with
other rule amendments being made by
CFE consistent with the CFTC
Rulemaking that are not required to be
submitted to the Commission pursuant
to Section 19(b)(7) of the Act 5 and thus
are not included as part of this rule
change.
CFE has incorporated into Appendix
to Chapter 5 of its Rulebook certain
CFTC regulations relating to customer
protection, recordkeeping, and reporting
and has provided that a violation of any
of those regulations shall be deemed a
violation of a specific CFE Rule. With
the exception of the amendments to CFE
Rule 503A, all other amendments to
CFE Rules contained in this filing are
proposed to change the CFE Rules in the
3 The Commission notes that the Exhibit 4 is
attached to the filing, but is not attached to the
publication of this notice.
4 78 FR 68506 (Nov. 14, 2013).
5 15 U.S.C. 78s(b)(7).
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25631
Appendix to Chapter 5 of the CFE
Rulebook to make their language
consistent with the language in the
CFTC regulations that was amended by
the CFTC Rulemaking.
CFE already requires that its FCMs
that are TPHs comply with all CFTC
regulations. For example, CFE Rule 604
prohibits TPHs and their Related Parties
from engaging in conduct in violation of
Applicable Law (which includes, among
other things, the CEA 6 and CFTC
regulations). CFE Rule 505 specifically
requires TPHs to comply with CFTC
regulations relating to the treatment of
customer funds and the maintenance of
related books and records. CFE Rule 518
specifically requires TPHs to comply
with CFTC regulations relating to
minimum financial requirements,
financial reporting requirements, and
protection of customer funds that are set
forth in the Appendix to Chapter 5 of
the CFE Rulebook. The purpose of these
proposed rule amendments is to make
the CFTC regulations that were added or
amended by the CFTC Rulemaking even
more explicit.
Risk Management Program for FCMs
CFE is proposing to add to its Rules
new Rule 520 (and renumber all
subsequent Rules in the Chapter) to
require that FCMs comply with the risk
management requirements set forth in
CFTC Regulation 1.11: Risk
Management Program for futures
commission merchants.7 As a result of
the CFTC Rulemaking, CFTC Regulation
1.52(b)(2) requires that all selfregulatory organizations (‘‘SROs’’)
(defined as designated contract markets
and registered futures associations in
CFTC Regulation 1.52(a)(2)) adopt rules
prescribing risk management
requirements for FCM member
registrants that are at least as stringent
as the requirements contained in CFTC
Regulation 1.11.8 CFTC Regulation 1.11
imposes, among other things, both
recordkeeping and reporting
requirements on FCMs. Specifically,
FCMs must maintain their risk
management policies and procedures,
all written approvals, and all records
and reports required under the
Regulation.9 In addition, FCMs must
furnish a copy of their risk management
policies and procedures to the CFTC
and its designated SRO upon
application for registration and
thereafter upon request, as well as
furnish copies of Risk Exposure Reports
67
U.S.C. 1 et seq.
CFR 1.11.
8 17 CFR 1.52.
9 17 CFR 1.11(c)(2), (h).
7 17
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]]>Agencies
[Federal Register Volume 79, Number 86 (Monday, May 5, 2014)]
[Notices]
[Pages 25630-25631]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-10362]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold a Closed Meeting on Thursday, May 8,
2014 at 2:00 p.m.
Commissioners, Counsel to the Commissioners, the Secretary to the
Commission, and recording secretaries will attend the Closed Meeting.
Certain staff members who have an interest in the matters also may be
present.
The General Counsel of the Commission, or her designee, has
certified that, in her opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR
200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Aguilar, as duty officer, voted to consider the items
listed for the Closed Meeting in closed session.
The subject matter of the Closed Meeting will be:
Institution and settlement of injunctive actions;
institution and settlement of administrative proceedings;
consideration of amicus participation;
adjudicatory matters; and
other matters relating to enforcement proceedings.
[[Page 25631]]
At times, changes in Commission priorities require alterations in
the scheduling of meeting items.
For further information and to ascertain what, if any, matters have
been added, deleted or postponed, please contact the Office of the
Secretary at (202) 551-5400.
Dated: May 1, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-10362 Filed 5-1-14; 4:15 pm]
BILLING CODE 8011-01-P
