Proposed Collection; Comment Request, 43515-43516 [2014-17515]
Download as PDF
<![CDATA[
Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Notices
N–17f–1 with the Commission 3 times
each year, for a total of 12 responses
annually.2 The total annual hour burden
for Form N–17f–1 is therefore estimated
to be approximately 18 hours.3
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act, and is not
derived from a comprehensive or even
a representative survey or study of the
costs of Commission rules. Compliance
with the collections of information
required by Form N–17f–1 is mandatory
for funds that place their assets in the
custody of a national securities
exchange member. 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.
The Commission requests written
comments on: (a) Whether the
collections of information are 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 burdens 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, Chief Information
Officer, Securities and Exchange
Commission, C/O Remi Pavlik-Simon,
100 F Street NE., Washington, DC
20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: July 21, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–17516 Filed 7–24–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
emcdonald on DSK67QTVN1PROD with NOTICES
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
2 This estimate is based on a review of Form N–
17f–1 filings made with the Commission over the
last three years.
3 This estimate is based on the following
calculations: (4.5 hours × 4 funds = 18 total hours).
VerDate Mar<15>2010
18:34 Jul 24, 2014
Jkt 232001
100 F Street NE., Washington, DC
20549–2736.
Extension:
Rule 17f–1. SEC File No. 270–236, OMB
Control No. 3235–0222.
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’’) is soliciting comments
on the collections of information
summarized below. The Commission
plans to submit these existing
collections of information to the Office
of Management and Budget for
extension and approval.
Rule 17f–1 (17 CFR 270.17f–1) under
the Investment Company Act of 1940
(the ‘‘Act’’) (15 U.S.C. 80a) is entitled:
‘‘Custody of Securities with Members of
National Securities Exchanges.’’ Rule
17f–1 provides that any registered
management investment company
(‘‘fund’’) that wishes to place its assets
in the custody of a national securities
exchange member may do so only under
a written contract that must be ratified
initially and approved annually by a
majority of the fund’s board of directors.
The written contract also must contain
certain specified provisions. In addition,
the rule requires an independent public
accountant to examine the fund’s assets
in the custody of the exchange member
at least three times during the fund’s
fiscal year. The rule requires the written
contract and the certificate of each
examination to be transmitted to the
Commission. The purpose of the rule is
to ensure the safekeeping of fund assets.
Commission staff estimates that each
fund makes 1 response and spends an
average of 3.5 hours annually in
complying with the rule’s requirements.
Commission staff estimates that on an
annual basis it takes: (i) 0.5 hours for the
board of directors 1 to review and ratify
the custodial contracts; and (ii) 3 hours
for the fund’s controller to assist the
fund’s independent public auditors in
verifying the fund’s assets.
Approximately 4 funds rely on the rule
annually, with a total of 4 responses.2
Thus, the total annual hour burden for
Rule 17f–1 is approximately 14 hours.3
1 Estimates of the number of hours are based on
conversations with representatives of mutual funds
that comply with the rule. The actual number of
hours may vary significantly depending on
individual fund assets. The hour burden for Rule
17f–1 does not include preparing the custody
contract because that would be part of customary
and usual business practice.
2 Based on a review of Form N–17f–1 filings in
over the last three years, the Commission staff
estimates that an average of 4 funds rely on Rule
17f–1 each year.
3 This estimate is based on the following
calculation: (4 respondents × 3.5 hours = 14 hours).
The annual burden for Rule 17f–1 does not include
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
43515
Funds that rely on Rule 17f–1
generally use outside counsel to prepare
the custodial contract for the board’s
review and to transmit the contract to
the Commission. Commission staff
estimates the cost of outside counsel to
perform these tasks for a fund each year
is $800.4 Funds also must have an
independent public accountant verify
the fund’s assets three times each year
and prepare the certificate of
examination. Commission staff
estimates the annual cost for an
independent public accountant to
perform this service is $8,500.5
Therefore, the total annual cost burden
for a fund that relies on Rule 17f–1
would be approximately $9,300.6 As
noted above, the staff estimates that 4
funds rely on Rule 17f–1 each year, for
an estimated total annualized cost
burden of $37,200.7
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act, and is not
derived from a comprehensive or even
a representative survey or study of the
costs of Commission rules. Compliance
with the collections of information
required by Rule 17f–1 is mandatory for
funds that place their assets in the
custody of a national securities
exchange member. 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.
The Commission requests written
comments on: (a) Whether the
collections of information are 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 burdens 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
time spent preparing Form N–17f–1. The burden for
Form N–17f–1 is included in a separate collection
of information.
4 This estimate is based on the following
calculation: (2 hours of outside counsel time × $400
= $800). The staff has estimated the average cost of
outside counsel at $400 per hour, based on
information received from funds, fund
intermediaries, and their counsel.
5 This estimate is based on information received
from fund representatives estimating the aggregate
annual cost of an independent public accountant’s
periodic verification of assets and preparation of the
certificate of examination.
6 This estimate is based on the following
calculation: ($800 + $8,500 = $9,300).
7 This estimate is based on the following
calculation: (4 funds × $9,300 = $37,200).
E:\FR\FM\25JYN1.SGM
25JYN1
43516
Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Notices
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, Chief Information
Officer, Securities and Exchange
Commission, C/O Remi Pavlik-Simon,
100 F Street NE., Washington, DC
20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: July 21, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–17515 Filed 7–24–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72646; File No. SR–BATS–
2014–027]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Rules 11.9, 11.12,
11.18, 21.1 and 21.7 of BATS
Exchange, Inc.
July 21, 2014.
emcdonald on DSK67QTVN1PROD with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 9,
2014, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) 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 the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders it effective upon filing
with the Commission. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend Rule 11.9 to add certain
functionality to the Exchange’s cash
equities trading platform (‘‘BATS
Equities’’), to add additional detail
regarding existing functionality in place
on BATS Equities, and to correct certain
typographical errors. The Exchange also
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).
proposes to make related changes to
Rule 11.12 and to eliminate obsolete
language and correct certain
typographical errors in Rule 11.18, all
such rules applicable to BATS Equities.
Consistent with its practice of offering
similar functionality for the Exchange’s
equity options trading platform (‘‘BATS
Options’’) as it does for BATS Equities,
the Exchange proposes to amend Rule
21.1 to add similar functionality to
BATS Options, to add additional detail
regarding existing functionality in place
on BATS Options, and to conform
descriptions where possible between
BATS Equities and BATS Options.
Finally, the Exchange proposes to make
related changes to Rule 21.7.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Earlier this year, the Exchange and its
affiliate BATS Y-Exchange, Inc. (‘‘BYX’’)
received approval to affect a merger (the
‘‘Merger’’) of the Exchange’s parent
company, BATS Global Markets, Inc.,
with Direct Edge Holdings LLC, the
indirect parent of EDGX Exchange, Inc.
(‘‘EDGX’’) and EDGA Exchange, Inc.
(‘‘EDGA’’, and together with BZX, BYX
and EDGX, the ‘‘BGM Affiliated
Exchanges’’).5 In the context of the
Merger, the BGM Affiliated Exchanges
are working to align certain system
functionality, retaining only intended
differences between the BGM Affiliated
Exchanges. Thus, many of the proposals
set forth below are intended to add
certain system functionality currently
1 15
2 17
VerDate Mar<15>2010
18:34 Jul 24, 2014
5 See
Securities Exchange Act Release No. 71375
(January 23, 2014), 79 FR 4771 (January 29, 2014)
(SR–BATS–2013–059; SR–BYX–2013–039).
Jkt 232001
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
offered by EDGA and/or EDGX in order
to provide a consistent technology
offering for users of the BGM Affiliated
Exchanges. In the context of such
alignment, the Exchange is also seeking
to improve the transparency and
understandability of its rules, and has
therefore proposed various corrective
and clarifying changes, as described
below. Finally, as noted above, BATS
Equities and BATS Options offer much
of the same functionality, and thus, in
adding functionality and modifying rule
text related to BATS Equities, the
Exchange also wishes to do the same for
BATS Options.
The specific proposals set forth in
more detail below include: (i) The
addition of Fill-or-Kill functionality for
both BATS Equities and BATS Options;
(ii) the addition of a new replenishment
option with respect to Reserve Orders as
well as additional detail regarding the
existing functionality of Reserve Orders
for both BATS Equities and BATS
Options; (iii) the addition of rule text
regarding Minimum Quantity
functionality for BATS Equities and
additional detail in the BATS Options
description of Minimum Quantity
functionality; (iv) the addition of Stop
Orders and Stop Limit Orders for both
BATS Equities and BATS Options; and
(v) various corrections to typographical
errors in Exchange rules, elimination of
obsolete language in Rule 11.18 as well
as the addition of detail to the routing
portion of Rule 11.18.
Fill-or-Kill (‘‘FOK’’) Functionality
BATS Equities
The Exchange proposes to add a
Time-in-Force (‘‘TIF’’) term of Fill-orKill (‘‘FOK’’) to BATS Equities. BATS
Equities currently offers five other TIF
terms pursuant to Rule 11.9(b),
including Immediate-or-Cancel (‘‘IOC’’).
The Exchange proposes to add FOK as
a sixth TIF option for BATS Equities,
which would be numbered as 11.9(b)(6).
As proposed, a FOK would be a limit
order that is to be executed in its
entirety as soon as it is received and, if
not so executed, cancelled.
Example 1—FOK Executes
Assume the NBBO is 10.00 × 10.01
and the Exchange has a displayed order
to buy 100 shares at 10.00 and a nondisplayed order to buy 100 shares at
10.00. Assume that a User 6 submits a
limit order to sell 200 shares at 10.00
that is designated with a TIF of FOK.
6 As defined in BATS Rule 1.5(cc), a User is ‘‘any
Member or Sponsored Participant who is
authorized to obtain access to the System pursuant
to Rule 11.3.’’
E:\FR\FM\25JYN1.SGM
25JYN1
]]>Agencies
[Federal Register Volume 79, Number 143 (Friday, July 25, 2014)]
[Notices]
[Pages 43515-43516]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17515]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.
Extension:
Rule 17f-1. SEC File No. 270-236, OMB Control No. 3235-0222.
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'') is soliciting comments on the
collections of information summarized below. The Commission plans to
submit these existing collections of information to the Office of
Management and Budget for extension and approval.
Rule 17f-1 (17 CFR 270.17f-1) under the Investment Company Act of
1940 (the ``Act'') (15 U.S.C. 80a) is entitled: ``Custody of Securities
with Members of National Securities Exchanges.'' Rule 17f-1 provides
that any registered management investment company (``fund'') that
wishes to place its assets in the custody of a national securities
exchange member may do so only under a written contract that must be
ratified initially and approved annually by a majority of the fund's
board of directors. The written contract also must contain certain
specified provisions. In addition, the rule requires an independent
public accountant to examine the fund's assets in the custody of the
exchange member at least three times during the fund's fiscal year. The
rule requires the written contract and the certificate of each
examination to be transmitted to the Commission. The purpose of the
rule is to ensure the safekeeping of fund assets.
Commission staff estimates that each fund makes 1 response and
spends an average of 3.5 hours annually in complying with the rule's
requirements. Commission staff estimates that on an annual basis it
takes: (i) 0.5 hours for the board of directors \1\ to review and
ratify the custodial contracts; and (ii) 3 hours for the fund's
controller to assist the fund's independent public auditors in
verifying the fund's assets. Approximately 4 funds rely on the rule
annually, with a total of 4 responses.\2\ Thus, the total annual hour
burden for Rule 17f-1 is approximately 14 hours.\3\
---------------------------------------------------------------------------
\1\ Estimates of the number of hours are based on conversations
with representatives of mutual funds that comply with the rule. The
actual number of hours may vary significantly depending on
individual fund assets. The hour burden for Rule 17f-1 does not
include preparing the custody contract because that would be part of
customary and usual business practice.
\2\ Based on a review of Form N-17f-1 filings in over the last
three years, the Commission staff estimates that an average of 4
funds rely on Rule 17f-1 each year.
\3\ This estimate is based on the following calculation: (4
respondents x 3.5 hours = 14 hours). The annual burden for Rule 17f-
1 does not include time spent preparing Form N-17f-1. The burden for
Form N-17f-1 is included in a separate collection of information.
---------------------------------------------------------------------------
Funds that rely on Rule 17f-1 generally use outside counsel to
prepare the custodial contract for the board's review and to transmit
the contract to the Commission. Commission staff estimates the cost of
outside counsel to perform these tasks for a fund each year is $800.\4\
Funds also must have an independent public accountant verify the fund's
assets three times each year and prepare the certificate of
examination. Commission staff estimates the annual cost for an
independent public accountant to perform this service is $8,500.\5\
Therefore, the total annual cost burden for a fund that relies on Rule
17f-1 would be approximately $9,300.\6\ As noted above, the staff
estimates that 4 funds rely on Rule 17f-1 each year, for an estimated
total annualized cost burden of $37,200.\7\
---------------------------------------------------------------------------
\4\ This estimate is based on the following calculation: (2
hours of outside counsel time x $400 = $800). The staff has
estimated the average cost of outside counsel at $400 per hour,
based on information received from funds, fund intermediaries, and
their counsel.
\5\ This estimate is based on information received from fund
representatives estimating the aggregate annual cost of an
independent public accountant's periodic verification of assets and
preparation of the certificate of examination.
\6\ This estimate is based on the following calculation: ($800 +
$8,500 = $9,300).
\7\ This estimate is based on the following calculation: (4
funds x $9,300 = $37,200).
---------------------------------------------------------------------------
The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act, and is not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules. Compliance with the collections of information
required by Rule 17f-1 is mandatory for funds that place their assets
in the custody of a national securities exchange member. 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.
The Commission requests written comments on: (a) Whether the
collections of information are 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
burdens 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
[[Page 43516]]
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, Chief
Information Officer, Securities and Exchange Commission, C/O Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email
to: PRA_Mailbox@sec.gov.
Dated: July 21, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-17515 Filed 7-24-14; 8:45 am]
BILLING CODE 8011-01-P
