Proposed Collection; Comment Request, 35701-35702 [2019-15695]

Download as PDF Federal Register / Vol. 84, No. 142 / Wednesday, July 24, 2019 / Notices Municipal Securities is consistent with the requirement that the rules of a national securities exchange be ‘‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’’ and ‘‘to protect investors and the public interest.’’ 28 Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CboeBZX–2019–023 on the subject line. khammond on DSKBBV9HB2PROD with NOTICES Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File Number SR–CboeBZX–2019–023. This file number should be included on the 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 10:00 a.m. and 3:00 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–CboeBZX–2019–023 and should be submitted by August 14, 2019. Rebuttal comments should be submitted by August 28, 2019. 28 15 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.29 Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–15657 Filed 7–23–19; 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 17a–4, SEC File No. 270–198, OMB Control No. 3235–0279. 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’’) is soliciting comments on the collection of information provided for in Rule 17a–4 (17 CFR 240.17a–4), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission plans to submit this existing collection of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Rule 17a–4 requires exchange members, brokers, and dealers (‘‘brokerdealers’’) to preserve for prescribed periods of time certain records required to be made by Rule 17a–3. In addition, Rule 17a–4 requires the preservation of records required to be made by other Commission rules and other kinds of records which firms make or receive in the ordinary course of business. These include, but are not limited to, bank statements, cancelled checks, bills receivable and payable, originals of communications, and descriptions of various transactions. Rule 17a–4 also permits broker-dealers to employ, under certain conditions, electronic storage media to maintain records required to be maintained under Rules 17a–3 and 17a–4. There are approximately 3,764 active, registered broker-dealers. The staff estimates that the average amount of time necessary to preserve the books and records as required by Rule 17a–4 is 254 hours per broker-dealer per year. Additionally, the Commission estimates that paragraph (b)(11) of Rule 17a–4 imposes an annual burden of 3 hours per year to maintain the requisite records. The Commission estimates that U.S.C. 78f(b)(5). VerDate Sep<11>2014 16:53 Jul 23, 2019 29 17 Jkt 247001 PO 00000 CFR 200.30–3(a)(57). Frm 00114 Fmt 4703 Sfmt 4703 35701 there are approximately 200 internal broker-dealer systems, resulting in an annual recordkeeping burden of 600 hours. Therefore, the Commission estimates that compliance with Rule 17a–4 requires 956,656 hours each year ((3,764 broker-dealers × 254 hours) + (200 broker-dealers × 3 hours)). These burdens are recordkeeping burdens. The staff believes that compliance personnel would be charged with ensuring compliance with Commission regulation, including Rule 17a–4. The staff estimates that the hourly salary of a Compliance Clerk is $70 per hour.1 Based upon these numbers, the total internal cost of compliance for 3,764 respondents is the dollar cost of approximately $67 million ((956,056 yearly hours × $70) + (600 × $70)). The total burden hour decrease of 86,210 hours is due to a decrease in the number of respondents from 4,104 to 3,764. Based on conversations with members of the securities industry and the Commission’s experience in the area, the staff estimates that the average broker-dealer spends approximately $5,000 each year to store documents required to be retained under Rule 17a– 4. Costs include the cost of physical space, computer hardware and software, etc., which vary widely depending on the size of the broker-dealer and the type of storage media employed. The Commission estimates that the annual reporting and recordkeeping cost burden is $18,820,000. This cost is calculated by the number of active, registered broker-dealers multiplied by the reporting and recordkeeping cost for each respondent (3,764 registered broker-dealers × $5,000). Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; (b) the accuracy of the Commission’s estimate of the burden of the proposed 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. 1 This figure is based on SIFMA’s Office Salaries in the Securities Industry 2013, modified by Commission staff to account for inflation and an 1,800-hour work-year multiplied by 2.93 to account for bonuses, firm size, employee benefits, and overhead. E:\FR\FM\24JYN1.SGM 24JYN1 35702 Federal Register / Vol. 84, No. 142 / Wednesday, July 24, 2019 / Notices 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: Charles Riddle, Acting Director/Chief Information Officer, Securities and Exchange Commission, c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an email to: PRA_ Mailbox@sec.gov. SECURITIES AND EXCHANGE COMMISSION Jill M. Peterson, Assistant Secretary. July 18, 2019. [FR Doc. 2019–15695 Filed 7–23–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meetings 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 Fixed Income Market Structure Advisory Committee (‘‘FIMSAC’’) will hold a public meeting on Monday, July 29, 2019 at 9:30 a.m. TIME AND DATE: The meeting will be held in Multi-Purpose Room LL–006 at the Commission’s headquarters, 100 F Street NE, Washington, DC. PLACE: The meeting will begin at 9:30 a.m. and will be open to the public. Seating will be on a first-come, firstserved basis. Doors will open at 9:00 a.m. Visitors will be subject to security checks. The meeting will be webcast on the Commission’s website at www.sec.gov. STATUS: On July 1, 2019, the Commission published notice of the Committee meeting (Release No. 34–86253), indicating that the meeting is open to the public and inviting the public to submit written comments to the Committee. This Sunshine Act notice is being issued because a majority of the Commission may attend the meeting. The agenda for the meeting will include updates and presentations from the FIMSAC subcommittees. MATTERS TO BE CONSIDERED: khammond on DSKBBV9HB2PROD with NOTICES CONTACT PERSON FOR MORE INFORMATION: For further information, please contact Vanessa A. Countryman from the Office of the Secretary at (202) 551–5400. Dated: July 22, 2019. Vanessa A. Countryman, Secretary. [Release No. 34–86411; File No. SR–CBOE– 2019–037] Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Rule 12.3 by Extending the Credit Option Margin Pilot Program Through July 20, 2020 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 16, 2019, Cboe Exchange, Inc. (the ‘‘Exchange’’ or ‘‘Cboe Options’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder.4 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 proposes to amend Rule 12.3 by extending the Credit Option Margin Pilot Program through July 20, 2020. The text of the proposed rule change is provided in Exhibit 5. The text of the proposed rule change is also available on the Exchange’s website (https://www.cboe.com/ AboutCBOE/CBOELegal RegulatoryHome.aspx), at the Exchange’s Office of the Secretary, 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 2 17 [FR Doc. 2019–15826 Filed 7–22–19; 4:15 pm] BILLING CODE 8011–01–P VerDate Sep<11>2014 16:53 Jul 23, 2019 Jkt 247001 PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 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 On February 2, 2011, the Commission approved the Exchange’s proposal to establish a Credit Option Margin Pilot Program (‘‘Program’’).5 The proposal became effective on a pilot basis to run on a parallel track with FINRA Rule 4240 that similarly operates on an interim pilot basis.6 On January 17, 2012, the Exchange filed a rule change to, among other things, decouple the Program with the FINRA program and to extend the expiration date of the Program to January 17, 2013.7 The Program, however, continues to be substantially similar to the provisions of the FINRA program. Subsequently, the Exchange filed rule changes to extend the program until January 17, 2014, January 16, 2015, January 15, 2016, January 17, 2017, July 18, 2017, July 18, 2018 and July 18, 2019, respectively.8 The Exchange believes that extending the expiration date of the Program further will allow for further analysis of the Program and a determination of how the Program should be structured in the future. Thus, the Exchange is now currently proposing to extend the duration of the Program for an additional year until July 20, 2020.9 5 See Securities Exchange Act Release No. 63819 (February 2, 2011), 76 FR 6838 (February 8, 2011) order approving (SR–CBOE–2010–106). To implement the Program, the Exchange amended Rule 12.3(l), Margin Requirements, to make Cboe Option’s margin requirements for Credit Options consistent with Financial Industry Regulatory Authority (‘‘FINRA’’) Rule 4240, Margin Requirements for Credit Default Swaps. Cboe Options Credit Options (i.e., Credit Default Options and Credit Default Basket Options) are analogous to credit default swaps. 6 See Securities Exchange Act Release No. 59955 (May 22, 2009), 74 FR 25586 (May 28, 2009) (Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change; SR–FINRA–2009–012). 7 See Securities Exchange Act Release No. 66163 (January 17, 2012), 77 FR 3318 (January 23, 2012) (SR–CBOE–2012–007). 8 See Securities Exchange Act Release Nos. 68539 (December 27, 2012), 78 FR 138 (January 2, 2013) (SR–CBOE–2012–125), 71124 (December 18, 2013), 78 FR 77754 (December 24, 2013) (SR–CBOE–2013– 123), 73837 (December 15, 2014), 79 FR 75850 (December 19, 2014) (SR–CBOE–2014–091), 76824 (January 5, 2016), 81 FR 1255 (January 11, 2016) (SR–CBOE–2015–118), 79621 (December 14, 2016) 81 FR 95236 (December 27, 2016) (SR–CBOE–2016– 089), 81083 (July 6, 2017) 82 FR 32219 (July 12, 2017) (SR–CBOE–2017–051), and 83672 (July 19, 2018) 83 FR 35305 (July 25, 2018) (SR–CBOE–2018– 052). 9 The Exchange is filing the proposed rule change for immediate effectiveness. The Exchange is E:\FR\FM\24JYN1.SGM 24JYN1

Agencies

[Federal Register Volume 84, Number 142 (Wednesday, July 24, 2019)]
[Notices]
[Pages 35701-35702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15695]


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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 17a-4, SEC File No. 270-198, OMB Control No. 3235-0279.

    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'') is soliciting comments on the collection of 
information provided for in Rule 17a-4 (17 CFR 240.17a-4), under the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission 
plans to submit this existing collection of information to the Office 
of Management and Budget (``OMB'') for extension and approval.
    Rule 17a-4 requires exchange members, brokers, and dealers 
(``broker-dealers'') to preserve for prescribed periods of time certain 
records required to be made by Rule 17a-3. In addition, Rule 17a-4 
requires the preservation of records required to be made by other 
Commission rules and other kinds of records which firms make or receive 
in the ordinary course of business. These include, but are not limited 
to, bank statements, cancelled checks, bills receivable and payable, 
originals of communications, and descriptions of various transactions. 
Rule 17a-4 also permits broker-dealers to employ, under certain 
conditions, electronic storage media to maintain records required to be 
maintained under Rules 17a-3 and 17a-4.
    There are approximately 3,764 active, registered broker-dealers. 
The staff estimates that the average amount of time necessary to 
preserve the books and records as required by Rule 17a-4 is 254 hours 
per broker-dealer per year. Additionally, the Commission estimates that 
paragraph (b)(11) of Rule 17a-4 imposes an annual burden of 3 hours per 
year to maintain the requisite records. The Commission estimates that 
there are approximately 200 internal broker-dealer systems, resulting 
in an annual recordkeeping burden of 600 hours. Therefore, the 
Commission estimates that compliance with Rule 17a-4 requires 956,656 
hours each year ((3,764 broker-dealers x 254 hours) + (200 broker-
dealers x 3 hours)). These burdens are recordkeeping burdens.
    The staff believes that compliance personnel would be charged with 
ensuring compliance with Commission regulation, including Rule 17a-4. 
The staff estimates that the hourly salary of a Compliance Clerk is $70 
per hour.\1\ Based upon these numbers, the total internal cost of 
compliance for 3,764 respondents is the dollar cost of approximately 
$67 million ((956,056 yearly hours x $70) + (600 x $70)). The total 
burden hour decrease of 86,210 hours is due to a decrease in the number 
of respondents from 4,104 to 3,764.
---------------------------------------------------------------------------

    \1\ This figure is based on SIFMA's Office Salaries in the 
Securities Industry 2013, modified by Commission staff to account 
for inflation and an 1,800-hour work-year multiplied by 2.93 to 
account for bonuses, firm size, employee benefits, and overhead.
---------------------------------------------------------------------------

    Based on conversations with members of the securities industry and 
the Commission's experience in the area, the staff estimates that the 
average broker-dealer spends approximately $5,000 each year to store 
documents required to be retained under Rule 17a-4. Costs include the 
cost of physical space, computer hardware and software, etc., which 
vary widely depending on the size of the broker-dealer and the type of 
storage media employed. The Commission estimates that the annual 
reporting and recordkeeping cost burden is $18,820,000. This cost is 
calculated by the number of active, registered broker-dealers 
multiplied by the reporting and recordkeeping cost for each respondent 
(3,764 registered broker-dealers x $5,000).
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
estimate of the burden of the proposed 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.

[[Page 35702]]

    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: Charles Riddle, Acting 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an 
email to: [email protected].

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15695 Filed 7-23-19; 8:45 am]
 BILLING CODE 8011-01-P
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