Submission for OMB Review; Comment Request, 56121-56122 [2018-24577]

Download as PDF Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Notices subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street, NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CBOE– 2018–070, and should be submitted on or before November 30, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–24522 Filed 11–8–18; 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 FOIA Services, 100 F Street NE, Washington, DC 20549–2736 khammond on DSK30JT082PROD with NOTICES Extension: Rule 204, SEC File No. 270–586, OMB Control No. 3235–0647 Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget 18 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:36 Nov 08, 2018 Jkt 247001 (‘‘OMB’’) a request for approval of extension of the previously approved collection of information provided for in Rule 204 (17 CFR 242.204), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). Rule 204(a) provides that a participant of a registered clearing agency must deliver securities to a registered clearing agency for clearance and settlement on a long or short sale in any equity security by settlement date, or if a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in any equity security for a long or short sale transaction in the equity security, the participant shall, by no later than the beginning of regular trading hours on the applicable close-out date, immediately close out its fail to deliver positions by borrowing or purchasing securities of like kind and quantity. For a short sale transaction, the participant must close out a fail to deliver by no later than the beginning of regular trading hours on the settlement day following the settlement date. If a participant has a fail to deliver that the participant can demonstrate on its books and records resulted from a long sale, or that is attributable to bona-fide market making activities, the participant must close out the fail to deliver by no later than the beginning of regular trading hours on the third consecutive settlement day following the settlement date. Rule 204 is intended to help further the Commission’s goal of reducing fails to deliver by maintaining the reductions in fails to deliver achieved by the adoption of temporary Rule 204T, as well as other actions taken by the Commission. In addition, Rule 204 is intended to help further the Commission’s goal of addressing potentially abusive ‘‘naked’’ short selling in all equity securities. The information collected under Rule 204 will continue to be retained and/or provided to other entities pursuant to the specific rule provisions and will be available to the Commission and selfregulatory organization (‘‘SRO’’) examiners upon request. The information collected will continue to aid the Commission and SROs in monitoring compliance with these requirements. In addition, the information collected will aid those subject to Rule 204 in complying with its requirements. These collections of information are mandatory. Several provisions under Rule 204 will impose a ‘‘collection of information’’ within the meaning of the Paperwork Reduction Act. I. Allocation Notification Requirement: As of December 31, 2017, PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 56121 there were 3,893 registered brokerdealers. Each of these broker-dealers could clear trades through a participant of a registered clearing agency and, therefore, become subject to the notification requirements of Rule 204(d). If a participant allocates a fail to deliver position to a broker or dealer pursuant to Rule 204(d), the broker or dealer that has been allocated the fail to deliver position in an equity security must determine whether or not such fail to deliver position was closed out in accordance with Rule 204(a). If such broker or dealer does not comply with the provisions of Rule 204(a), such broker or dealer must immediately notify the participant that it has become subject to the requirements of Rule 204(b). We estimate that a broker or dealer could have to make such determination and notification with respect to approximately 1.76 equity securities per day.1 We estimate a total of 1,719,772 potential notifications in accordance with Rule 204(d) across all registered broker-dealers (that could be allocated responsibility to close out a fail to deliver position) per year (3,893 registered broker-dealers notifying participants once per day 2 on 1.76 equity securities, multiplied by 251 trading days in 2017). The total estimated annual burden hours per year will be approximately 275,164 burden hours (1,719,772 multiplied by 0.16 hours/notification). II. Demonstration Requirement for Fails to Deliver on Long Sales: As of December 5, 2017, there were 132 participants of NSCC that were registered as broker-dealers. If a participant of a registered clearing agency has a fail to deliver position in an equity security at a registered clearing agency and determined that such fail to deliver position resulted from a long sale, we estimate that a participant of a registered clearing agency will have to make such determination with respect to approximately 33 securities per day.3 1 The Commission’s Division of Economic and Risk Analysis (‘‘DERA’’) estimates that there were approximately 6,868 average daily fail to deliver positions during 2017. Across 3,893 registered broker-dealers, the number of securities per registered broker-dealer per trading day is approximately 1.76 equity securities. 2 Because failure to comply with the close-out requirements of Rule 204(a) is a violation of the rule, we believe that a broker or dealer would make the notification to a participant that it is subject to the borrowing requirements of Rule 204(b) at most once per day. 3 DERA estimates that during 2017 approximately 62.93% of trade volume was long. DERA estimates that there were approximately 6,868 average daily fail to deliver positions during 2017. Across 132 broker-dealer participants of the NSCC, the number E:\FR\FM\09NON1.SGM Continued 09NON1 khammond on DSK30JT082PROD with NOTICES 56122 Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Notices We estimate a total of 1,093,356 potential demonstrations in accordance with Rule 204(a)(1) across all brokerdealer participants per year (132 participants checking for compliance once per day on 33 securities, multiplied by 251 trading days in 2017). The total approximate estimated annual burden hour per year will be approximately 174,937 burden hours (1,093,356 multiplied by 0.16 hours/ documentation). III. Pre-Borrow Notification Requirement: As of December 5, 2017, there were 132 participants of NSCC that were registered as broker-dealers. If a participant of a registered clearing agency has a fail to deliver position in an equity security, the participant must determine whether or not the fail to deliver position was closed out in accordance with Rule 204(a). We estimate that a participant of a registered clearing agency will have to make such determination with respect to approximately 52 equity securities per day.4 We estimate a total of 1,722,864 potential notifications in accordance with Rule 204(c) across all participants per year (132 broker-dealer participants notifying broker-dealers once per day on 52 securities, multiplied by 251 trading days in 2017). The total estimated annual burden hours per year will be approximately 275,658 burden hours (1,722,864 multiplied by 0.16 hours/ documentation). IV. Certification Requirement: As of December 31, 2017, there were 3,893 registered broker-dealers. Each of these broker-dealers may clear trades through a participant of a registered clearing agency. If the broker-dealer determines that it has not incurred a fail to deliver position on settlement date for a long or short sale in an equity security for which the participant has a fail to deliver position at a registered clearing agency or has purchased or borrowed securities in accordance with the prefail credit provision of Rule 204(e), we estimate that a broker-dealer could have to make such determination with respect to approximately 1.76 securities per day.5 We estimate that registered broker-dealers could have to certify to the participant that it has not incurred a fail to deliver position on settlement date for a long or short sale in an equity security for which the participant has a fail to deliver position at a registered clearing agency or, alternatively, that it of securities per participant per day is approximately 52 equity securities. 62.93% of 52 equity securities per trading day equals approximately 33 securities per day. 4 See supra note 3. 5 See supra note 1. VerDate Sep<11>2014 17:36 Nov 08, 2018 Jkt 247001 is in compliance with the requirements set forth in the pre-fail credit provision of Rule 204(e), 1,719,772 times per year (3,893 registered broker-dealers certifying once per day on 1.76 securities, multiplied by 251 trading days in 2017). The total approximate estimated annual burden hour per year will be approximately 275,164 burden hours (1,719,772 multiplied by 0.16 hours/certification). V. Pre-Fail Credit Demonstration Requirement: As of December 31, 2017, there were 3,893 registered brokerdealers. If a broker-dealer purchased or borrowed securities in accordance with the conditions specified in Rule 204(e) and determined that it had a net long position or net flat position on the settlement day for which the brokerdealer is claiming pre-fail credit, we estimate that a broker-dealer could have to make such determination with respect to approximately 1.76 securities per day.6 We estimate that registered broker-dealers could have to demonstrate on its books and records that it has a net long position or net flat position on the settlement day for which the broker-dealer is claiming pre-fail credit, 1,719,772 times per year (3,893 registered broker-dealers checking for compliance once per day on 1.76 equity securities, multiplied by 251 trading days in 2017). The total approximate estimated annual burden hours per year will be 275,164 burden hours (1,719,772 multiplied by 0.16 hours/ demonstration). The total aggregate annual burden for the collection of information undertaken pursuant to all five provisions is thus 1,276,087 hours per year (275,164 + 174,937 + 275,658 + 275,164 + 275,164). 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. The public may review background documentation for this information collection at the following website: www.reginfo.gov. Comments should be directed to: (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 by sending an email to: Lindsay.M.Abate@omb.eop.gov; and (ii) Charles Riddle, Acting Director/Chief Information Officer, Securities and Exchange Commission, c/o Candace Kenner, 100 F Street NE, Washington DC 20549, or by sending an email to: PRA_Mailbox@sec.gov. Comments must 6 See PO 00000 supra note 1. Frm 00077 Fmt 4703 Sfmt 4703 be submitted to OMB within 30 days of this notice. Dated: November 6, 2018. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–24577 Filed 11–8–18; 8:45 am] BILLING CODE 8011–01–P 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 2a–7, SEC File No. 270–258, OMB Control No. 3235–0268 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 collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. Rule 2a–7 (17 CFR 270.2a–7) under the Investment Company Act of 1940 (15 U.S.C. 80a) (the ‘‘Act’’) governs money market funds. Money market funds are open-end management investment companies that differ from other open-end management investment companies in that they seek to maintain a stable price per share, usually $1.00. The rule exempts money market funds from the valuation requirements of the Act, and, subject to certain risk-limiting conditions, permits money market funds to use the ‘‘amortized cost method’’ of asset valuation or the ‘‘penny-rounding method’’ of share pricing. Rule 2a–7 also imposes certain recordkeeping and reporting obligations on money market funds. The board of directors of a money market fund, in supervising the fund’s operations, must establish written procedures designed to stabilize the fund’s net asset value (‘‘NAV’’); establish written procedures to test periodically the ability of the fund to maintain a stable NAV based on certain hypothetical events (‘‘stress testing’’); review, revise, and approve written procedures to stress test a fund’s portfolio; and create a report to the fund board documenting the results of stress testing. The board must also adopt guidelines and procedures relating to certain responsibilities it delegates to E:\FR\FM\09NON1.SGM 09NON1

Agencies

[Federal Register Volume 83, Number 218 (Friday, November 9, 2018)]
[Notices]
[Pages 56121-56122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24577]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; 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 204, SEC File No. 270-586, OMB Control No. 3235-0647

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in Rule 204 
(17 CFR 242.204), under the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.).
    Rule 204(a) provides that a participant of a registered clearing 
agency must deliver securities to a registered clearing agency for 
clearance and settlement on a long or short sale in any equity security 
by settlement date, or if a participant of a registered clearing agency 
has a fail to deliver position at a registered clearing agency in any 
equity security for a long or short sale transaction in the equity 
security, the participant shall, by no later than the beginning of 
regular trading hours on the applicable close-out date, immediately 
close out its fail to deliver positions by borrowing or purchasing 
securities of like kind and quantity. For a short sale transaction, the 
participant must close out a fail to deliver by no later than the 
beginning of regular trading hours on the settlement day following the 
settlement date. If a participant has a fail to deliver that the 
participant can demonstrate on its books and records resulted from a 
long sale, or that is attributable to bona-fide market making 
activities, the participant must close out the fail to deliver by no 
later than the beginning of regular trading hours on the third 
consecutive settlement day following the settlement date. Rule 204 is 
intended to help further the Commission's goal of reducing fails to 
deliver by maintaining the reductions in fails to deliver achieved by 
the adoption of temporary Rule 204T, as well as other actions taken by 
the Commission. In addition, Rule 204 is intended to help further the 
Commission's goal of addressing potentially abusive ``naked'' short 
selling in all equity securities.
    The information collected under Rule 204 will continue to be 
retained and/or provided to other entities pursuant to the specific 
rule provisions and will be available to the Commission and self-
regulatory organization (``SRO'') examiners upon request. The 
information collected will continue to aid the Commission and SROs in 
monitoring compliance with these requirements. In addition, the 
information collected will aid those subject to Rule 204 in complying 
with its requirements. These collections of information are mandatory.
    Several provisions under Rule 204 will impose a ``collection of 
information'' within the meaning of the Paperwork Reduction Act.
    I. Allocation Notification Requirement: As of December 31, 2017, 
there were 3,893 registered broker-dealers. Each of these broker-
dealers could clear trades through a participant of a registered 
clearing agency and, therefore, become subject to the notification 
requirements of Rule 204(d). If a participant allocates a fail to 
deliver position to a broker or dealer pursuant to Rule 204(d), the 
broker or dealer that has been allocated the fail to deliver position 
in an equity security must determine whether or not such fail to 
deliver position was closed out in accordance with Rule 204(a). If such 
broker or dealer does not comply with the provisions of Rule 204(a), 
such broker or dealer must immediately notify the participant that it 
has become subject to the requirements of Rule 204(b). We estimate that 
a broker or dealer could have to make such determination and 
notification with respect to approximately 1.76 equity securities per 
day.\1\ We estimate a total of 1,719,772 potential notifications in 
accordance with Rule 204(d) across all registered broker-dealers (that 
could be allocated responsibility to close out a fail to deliver 
position) per year (3,893 registered broker-dealers notifying 
participants once per day \2\ on 1.76 equity securities, multiplied by 
251 trading days in 2017). The total estimated annual burden hours per 
year will be approximately 275,164 burden hours (1,719,772 multiplied 
by 0.16 hours/notification).
---------------------------------------------------------------------------

    \1\ The Commission's Division of Economic and Risk Analysis 
(``DERA'') estimates that there were approximately 6,868 average 
daily fail to deliver positions during 2017. Across 3,893 registered 
broker-dealers, the number of securities per registered broker-
dealer per trading day is approximately 1.76 equity securities.
    \2\ Because failure to comply with the close-out requirements of 
Rule 204(a) is a violation of the rule, we believe that a broker or 
dealer would make the notification to a participant that it is 
subject to the borrowing requirements of Rule 204(b) at most once 
per day.
---------------------------------------------------------------------------

    II. Demonstration Requirement for Fails to Deliver on Long Sales: 
As of December 5, 2017, there were 132 participants of NSCC that were 
registered as broker-dealers. If a participant of a registered clearing 
agency has a fail to deliver position in an equity security at a 
registered clearing agency and determined that such fail to deliver 
position resulted from a long sale, we estimate that a participant of a 
registered clearing agency will have to make such determination with 
respect to approximately 33 securities per day.\3\

[[Page 56122]]

We estimate a total of 1,093,356 potential demonstrations in accordance 
with Rule 204(a)(1) across all broker-dealer participants per year (132 
participants checking for compliance once per day on 33 securities, 
multiplied by 251 trading days in 2017). The total approximate 
estimated annual burden hour per year will be approximately 174,937 
burden hours (1,093,356 multiplied by 0.16 hours/documentation).
---------------------------------------------------------------------------

    \3\ DERA estimates that during 2017 approximately 62.93% of 
trade volume was long. DERA estimates that there were approximately 
6,868 average daily fail to deliver positions during 2017. Across 
132 broker-dealer participants of the NSCC, the number of securities 
per participant per day is approximately 52 equity securities. 
62.93% of 52 equity securities per trading day equals approximately 
33 securities per day.
---------------------------------------------------------------------------

    III. Pre-Borrow Notification Requirement: As of December 5, 2017, 
there were 132 participants of NSCC that were registered as broker-
dealers. If a participant of a registered clearing agency has a fail to 
deliver position in an equity security, the participant must determine 
whether or not the fail to deliver position was closed out in 
accordance with Rule 204(a). We estimate that a participant of a 
registered clearing agency will have to make such determination with 
respect to approximately 52 equity securities per day.\4\ We estimate a 
total of 1,722,864 potential notifications in accordance with Rule 
204(c) across all participants per year (132 broker-dealer participants 
notifying broker-dealers once per day on 52 securities, multiplied by 
251 trading days in 2017). The total estimated annual burden hours per 
year will be approximately 275,658 burden hours (1,722,864 multiplied 
by 0.16 hours/documentation).
---------------------------------------------------------------------------

    \4\ See supra note 3.
---------------------------------------------------------------------------

    IV. Certification Requirement: As of December 31, 2017, there were 
3,893 registered broker-dealers. Each of these broker-dealers may clear 
trades through a participant of a registered clearing agency. If the 
broker-dealer determines that it has not incurred a fail to deliver 
position on settlement date for a long or short sale in an equity 
security for which the participant has a fail to deliver position at a 
registered clearing agency or has purchased or borrowed securities in 
accordance with the pre-fail credit provision of Rule 204(e), we 
estimate that a broker-dealer could have to make such determination 
with respect to approximately 1.76 securities per day.\5\ We estimate 
that registered broker-dealers could have to certify to the participant 
that it has not incurred a fail to deliver position on settlement date 
for a long or short sale in an equity security for which the 
participant has a fail to deliver position at a registered clearing 
agency or, alternatively, that it is in compliance with the 
requirements set forth in the pre-fail credit provision of Rule 204(e), 
1,719,772 times per year (3,893 registered broker-dealers certifying 
once per day on 1.76 securities, multiplied by 251 trading days in 
2017). The total approximate estimated annual burden hour per year will 
be approximately 275,164 burden hours (1,719,772 multiplied by 0.16 
hours/certification).
---------------------------------------------------------------------------

    \5\ See supra note 1.
---------------------------------------------------------------------------

    V. Pre-Fail Credit Demonstration Requirement: As of December 31, 
2017, there were 3,893 registered broker-dealers. If a broker-dealer 
purchased or borrowed securities in accordance with the conditions 
specified in Rule 204(e) and determined that it had a net long position 
or net flat position on the settlement day for which the broker-dealer 
is claiming pre-fail credit, we estimate that a broker-dealer could 
have to make such determination with respect to approximately 1.76 
securities per day.\6\ We estimate that registered broker-dealers could 
have to demonstrate on its books and records that it has a net long 
position or net flat position on the settlement day for which the 
broker-dealer is claiming pre-fail credit, 1,719,772 times per year 
(3,893 registered broker-dealers checking for compliance once per day 
on 1.76 equity securities, multiplied by 251 trading days in 2017). The 
total approximate estimated annual burden hours per year will be 
275,164 burden hours (1,719,772 multiplied by 0.16 hours/
demonstration).
---------------------------------------------------------------------------

    \6\ See supra note 1.
---------------------------------------------------------------------------

    The total aggregate annual burden for the collection of information 
undertaken pursuant to all five provisions is thus 1,276,087 hours per 
year (275,164 + 174,937 + 275,658 + 275,164 + 275,164). 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.
    The public may review background documentation for this information 
collection at the following website: www.reginfo.gov. Comments should 
be directed to: (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 by sending an email to: 
[email protected]; and (ii) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o 
Candace Kenner, 100 F Street NE, Washington DC 20549, or by sending an 
email to: [email protected]. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: November 6, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-24577 Filed 11-8-18; 8:45 am]
 BILLING CODE 8011-01-P
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