Proposed Collection; Comment Request, 65853-65854 [2019-25868]
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Federal Register / Vol. 84, No. 230 / Friday, November 29, 2019 / Notices
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–CboeEDGX–2019–070, and
should be submitted on or before
December 20, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–25838 Filed 11–27–19; 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.
60 Day Notice—Proposed Collection;
Comment Request
khammond on DSKJM1Z7X2PROD with NOTICES
Extension:
Rule 22e–4 (60 Day Notice 2019), SEC File
No. 270–794, OMB Control No. 3235–
0737.
Notice is hereby given that, under the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501–3520), the Securities and
Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collections 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.
Section 22(e) of the Investment
Company Act of 1940 (‘‘Investment
Company Act’’) provides that no
registered investment company shall
suspend the right of redemption or
postpone the date of payment of
redemption proceeds for more than
seven days after tender of the security
absent specified unusual circumstances.
The provision was designed to prevent
funds and their investment advisers
from interfering with the redemption
rights of shareholders for improper
purposes, such as the preservation of
19 17
CFR 200.30–3(a)(12).
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16:49 Nov 27, 2019
Jkt 250001
management fees. Although section
22(e) permits funds to postpone the date
of payment or satisfaction upon
redemption for up to seven days, it does
not permit funds to suspend the right of
redemption for any amount of time,
absent certain specified circumstances
or a Commission order.
Rule 22e–4 under the Act [17 CFR
270.22e–4] requires an open-end fund
and an exchange-traded fund that
redeems in kind (‘‘In-Kind ETF’’) to
establish a written liquidity risk
management program that is reasonably
designed to assess and manage the
fund’s or In-Kind ETF’s liquidity risk.
The rule also requires board approval
and oversight of a fund’s or In-Kind
ETF’s liquidity risk management
program and recordkeeping. Rule 22e–4
also requires a limited liquidity review,
under which a UIT’s principal
underwriter or depositor determines, on
or before the date of the initial deposit
of portfolio securities into the UIT, that
the portion of the illiquid investments
that the UIT holds or will hold at the
date of deposit that are assets is
consistent with the redeemable nature
of the securities it issues and retains a
record of such determination for the life
of the UIT and for five years thereafter.
The following estimates of average
burden hours and costs are made solely
for purposes of the Paperwork
Reduction Act and are not derived from
a comprehensive or even representative
survey or study of the cost of
Commission rules and forms.
Commission staff estimates that funds
within 846 fund complexes are subject
to rule 22e–4. Compliance with rule
22e–4 is mandatory for all such funds
and In-Kind ETFs, with certain program
elements applicable to certain funds
within a fund complex based upon
whether the fund is an In-Kind ETF or
does not primarily hold assets that are
highly liquid investments. The
Commission estimates that a fund
complex will incur a one time average
burden of 40 hours associated with
documenting the liquidity risk
management programs adopted by each
fund within a fund complex, in addition
to a one time burden of 10 hours per
fund complex associated with fund
boards’ review and approval of the
funds’ liquidity risk management
programs and preparation of board
materials. We estimate that the total
burden for initial documentation and
review of funds’ written liquidity risk
management program will be 42,300
hours.
Rule 22e–4 requires any fund that
does not primarily hold assets that are
highly liquid investments to determine
a highly liquid investment minimum for
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65853
the fund, which must be reviewed at
least annually, and may not be changed
during any period of time that a fund’s
assets that are highly liquid investments
are below the determined minimum
without approval from the fund’s board
of directors. We estimate that fund
complexes will have at least one fund
that will be subject to the highly liquid
investment minimum requirement.
Thus, we estimate that 846 fund
complexes will be subject to this
requirement under rule 22e–4 and that
the total burden for preparation of the
board report associated will be 11,844
hours.
Rule 22e–4 requires a fund or In-Kind
ETF to maintain a written copy of the
policies and procedures adopted
pursuant to its liquidity risk
management program for five years in
an easily accessible place. The rule also
requires a fund to maintain copies of
materials provided to the board in
connection with its initial approval of
the liquidity risk management program
and any written reports provided to the
board, for at least five years, the first
two years in an easily accessible place.
If applicable, a fund must also maintain
a written record of how its highly liquid
investment minimum and any
adjustments to the minimum were
determined, as well as any reports to the
board regarding a shortfall in the fund’s
highly liquid investment minimum, for
five years, the first two years in an
easily accessible place. We estimate that
the total burden for recordkeeping
related to the liquidity risk management
program requirement of rule 22e–4 will
be 3,384 hours.
We estimate that the hour burdens
and time costs associated with rule 22e–
4 for open-end funds, including the
burden associated with (1) funds’ initial
documentation and review of the
required written liquidity risk
management program, (2) reporting to a
fund’s board regarding the fund’s highly
liquid investment minimum, and (3)
recordkeeping requirements will result
in an average aggregate annual burden
of 25,380 hours.
UITs may in some circumstances be
subject to liquidity risk (particularly
where the UIT is not a pass-through
vehicle and the sponsor does not
maintain an active secondary market for
UIT shares). On or before the date of
initial deposit of portfolio securities into
a registered UIT, the UIT’s principal
underwriter or depositor is required to
determine that the portion of the
illiquid investments that the UIT holds
or will hold at the date of deposit that
are assets is consistent with the
redeemable nature of the securities it
issues, and maintain a record of that
E:\FR\FM\29NON1.SGM
29NON1
65854
Federal Register / Vol. 84, No. 230 / Friday, November 29, 2019 / Notices
determination for the life of the UIT and
for five years thereafter. We estimate
that 1,385 newly registered UITs will be
subject to the UIT liquidity
determination requirement under rule
22e–4 each year. We estimate that the
total burden for the initial
documentation and review of UIT
funds’ written liquidity risk
management program would be 13,850
hours. We estimate that the total burden
for recordkeeping related to UIT
liquidity risk management programs
will be 2,770 hours.
Compliance with the collection of
information requirements of the rule is
necessary to obtain the benefit of relying
on the rule. 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.
Written comments are invited 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 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 after this
publication.
Please direct your written comments
to Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
SECURITIES AND EXCHANGE
COMMISSION
Dated: November 25, 2019.
Eduardo A. Aleman,
Deputy Secretary.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2019–25868 Filed 11–27–19; 8:45 am]
khammond on DSKJM1Z7X2PROD with NOTICES
BILLING CODE 8011–01–P
[Release No. 34–87602; File No. SR–
CboeBYX–2019–022]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend
Paragraph (a) of Rule 11.1 To Allow the
Exchange To Accept Stop Orders
Entered Between 6:00 and 7:00 a.m.
Eastern Time
November 22, 2019.
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 November
19, 2019, Cboe BYX Exchange, Inc.
(‘‘Exchange’’) 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 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
Cboe BYX Exchange, Inc. (‘‘BYX’’ or
the ‘‘Exchange’’) is filing with the
Securities and Exchange Commission
(the ‘‘Commission’’) a proposed rule
change to amend paragraph (a) of Rule
11.1 to allow the Exchange to accept
Stop Orders entered between 6:00 and
7:00 a.m. Eastern Time. 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://markets.cboe.com/us/
equities/regulation/rule_filings/byx/), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
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
1 15
2 17
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16:49 Nov 27, 2019
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00079
Fmt 4703
Sfmt 4703
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 Exchange proposes to amend
paragraph (a) of Rule 11.1 to allow the
Exchange to accept Stop Orders 3
entered between 6:00 and 7:00 a.m.
Eastern Time.
Paragraph (a) of Rule 11.1 provides
that orders entered between 6:00 a.m.
and 7:00 a.m. Eastern Time are not
eligible for execution until the start of
the Early Trading Session,4 Pre-Opening
Session 5 or Regular Trading Hours,6
depending on the Time in Force
selected by the User.7 Paragraph (a) also
provides that the Exchange will not
accept certain orders 8 entered prior to
7:00 a.m. Eastern Time including BYX
Market Orders 9 with a Time in Force
other than Regular Hours Only
(‘‘RHO’’).10 BYX Market Orders with a
Time in Force other than RHO are
rejected by the Exchange prior to 7:00
a.m. Eastern Time because BYX Market
Orders are not eligible to trade prior to
the start of Regular Trading Hours and
such orders are generally not designated
to queue for later entry onto the
Exchange’s order book. Rather, BYX
Market Orders with a Time in Force
other than RHO are designed to
immediately execute at the NBBO when
3 A Stop Order is an order that becomes a BYX
market order when the stop price is elected. A Stop
Order to buy is elected when the consolidated last
sale in the security occurs at, or above, the specified
stop price. A Stop Order to sell is elected when the
consolidated last sale in the security occurs at, or
below, the specified stop price. See Exchange Rule
11.9(c)(16).
4 See Exchange Rule 1.5(ee).
5 See Exchange Rule 1.5(r).
6 See Exchange Rule 1.5(w).
7 See Exchange Rule 1.5(cc).
8 Specifically, Exchange Rule 11.1(a) provides
that BYX Post Only Orders, Partial Post Only at
Limit Orders, Intermarket Sweep Orders (‘‘ISOs’’),
BYX Market Orders with a Time in Force other than
Regular Hours Only, Minimum Quantity Orders
that also include a Time in Force of Regular Hours
Only, RPI Orders and all orders with a Time in
Force of Immediate-or-Cancel (‘‘IOC’’) or Fill-or-Kill
(‘‘FOK’’) are not accepted if entered prior to 7:00
a.m. Eastern Time.
9 A BYX Market Order is an ‘‘order to buy or sell
a stated amount of a security that is to be executed
at the NBBO when the order reaches the Exchange.
BYX market orders shall not trade through
Protected Quotations . . . BYX Market Orders are
not eligible for execution during the Early Trading
Session, Pre-Opening Session or the After Hours
Trading Session.’’ See Exchange Rule 11.9(a)(2).
10 RHO refers to a ‘‘limit or market order that is
designated for execution only during Regular
Trading Hours, which includes the Opening
Process, as defined in Rule 11.23.’’ See Exchange
Rule 11.9(b)(7).
E:\FR\FM\29NON1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 230 (Friday, November 29, 2019)]
[Notices]
[Pages 65853-65854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25868]
-----------------------------------------------------------------------
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.
60 Day Notice--Proposed Collection; Comment Request
Extension:
Rule 22e-4 (60 Day Notice 2019), SEC File No. 270-794, OMB
Control No. 3235-0737.
Notice is hereby given that, under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501-3520), the Securities and Exchange Commission (the
``Commission'') is soliciting comments on the collections 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.
Section 22(e) of the Investment Company Act of 1940 (``Investment
Company Act'') provides that no registered investment company shall
suspend the right of redemption or postpone the date of payment of
redemption proceeds for more than seven days after tender of the
security absent specified unusual circumstances. The provision was
designed to prevent funds and their investment advisers from
interfering with the redemption rights of shareholders for improper
purposes, such as the preservation of management fees. Although section
22(e) permits funds to postpone the date of payment or satisfaction
upon redemption for up to seven days, it does not permit funds to
suspend the right of redemption for any amount of time, absent certain
specified circumstances or a Commission order.
Rule 22e-4 under the Act [17 CFR 270.22e-4] requires an open-end
fund and an exchange-traded fund that redeems in kind (``In-Kind ETF'')
to establish a written liquidity risk management program that is
reasonably designed to assess and manage the fund's or In-Kind ETF's
liquidity risk. The rule also requires board approval and oversight of
a fund's or In-Kind ETF's liquidity risk management program and
recordkeeping. Rule 22e-4 also requires a limited liquidity review,
under which a UIT's principal underwriter or depositor determines, on
or before the date of the initial deposit of portfolio securities into
the UIT, that the portion of the illiquid investments that the UIT
holds or will hold at the date of deposit that are assets is consistent
with the redeemable nature of the securities it issues and retains a
record of such determination for the life of the UIT and for five years
thereafter.
The following estimates of average burden hours and costs are made
solely for purposes of the Paperwork Reduction Act and are not derived
from a comprehensive or even representative survey or study of the cost
of Commission rules and forms.
Commission staff estimates that funds within 846 fund complexes are
subject to rule 22e-4. Compliance with rule 22e-4 is mandatory for all
such funds and In-Kind ETFs, with certain program elements applicable
to certain funds within a fund complex based upon whether the fund is
an In-Kind ETF or does not primarily hold assets that are highly liquid
investments. The Commission estimates that a fund complex will incur a
one time average burden of 40 hours associated with documenting the
liquidity risk management programs adopted by each fund within a fund
complex, in addition to a one time burden of 10 hours per fund complex
associated with fund boards' review and approval of the funds'
liquidity risk management programs and preparation of board materials.
We estimate that the total burden for initial documentation and review
of funds' written liquidity risk management program will be 42,300
hours.
Rule 22e-4 requires any fund that does not primarily hold assets
that are highly liquid investments to determine a highly liquid
investment minimum for the fund, which must be reviewed at least
annually, and may not be changed during any period of time that a
fund's assets that are highly liquid investments are below the
determined minimum without approval from the fund's board of directors.
We estimate that fund complexes will have at least one fund that will
be subject to the highly liquid investment minimum requirement. Thus,
we estimate that 846 fund complexes will be subject to this requirement
under rule 22e-4 and that the total burden for preparation of the board
report associated will be 11,844 hours.
Rule 22e-4 requires a fund or In-Kind ETF to maintain a written
copy of the policies and procedures adopted pursuant to its liquidity
risk management program for five years in an easily accessible place.
The rule also requires a fund to maintain copies of materials provided
to the board in connection with its initial approval of the liquidity
risk management program and any written reports provided to the board,
for at least five years, the first two years in an easily accessible
place. If applicable, a fund must also maintain a written record of how
its highly liquid investment minimum and any adjustments to the minimum
were determined, as well as any reports to the board regarding a
shortfall in the fund's highly liquid investment minimum, for five
years, the first two years in an easily accessible place. We estimate
that the total burden for recordkeeping related to the liquidity risk
management program requirement of rule 22e-4 will be 3,384 hours.
We estimate that the hour burdens and time costs associated with
rule 22e-4 for open-end funds, including the burden associated with (1)
funds' initial documentation and review of the required written
liquidity risk management program, (2) reporting to a fund's board
regarding the fund's highly liquid investment minimum, and (3)
recordkeeping requirements will result in an average aggregate annual
burden of 25,380 hours.
UITs may in some circumstances be subject to liquidity risk
(particularly where the UIT is not a pass-through vehicle and the
sponsor does not maintain an active secondary market for UIT shares).
On or before the date of initial deposit of portfolio securities into a
registered UIT, the UIT's principal underwriter or depositor is
required to determine that the portion of the illiquid investments that
the UIT holds or will hold at the date of deposit that are assets is
consistent with the redeemable nature of the securities it issues, and
maintain a record of that
[[Page 65854]]
determination for the life of the UIT and for five years thereafter. We
estimate that 1,385 newly registered UITs will be subject to the UIT
liquidity determination requirement under rule 22e-4 each year. We
estimate that the total burden for the initial documentation and review
of UIT funds' written liquidity risk management program would be 13,850
hours. We estimate that the total burden for recordkeeping related to
UIT liquidity risk management programs will be 2,770 hours.
Compliance with the collection of information requirements of the
rule is necessary to obtain the benefit of relying on the rule. 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.
Written comments are invited 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 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 after this
publication.
Please direct your written comments to Charles Riddle, Acting
Director/Chief Information Officer, Securities and Exchange Commission,
C/O Cynthia Roscoe, 100 F Street NE, Washington, DC 20549; or send an
email to: [email protected].
Dated: November 25, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-25868 Filed 11-27-19; 8:45 am]
BILLING CODE 8011-01-P
