Proposed Collection; Comment Request, 6588-6589 [2020-02233]

Download as PDF 6588 Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices Section 19(b)(2) of the Act 9 provides that, after initiating disapproval proceedings, the Commission shall issue an order approving or disapproving the proposed rule change not later than 180 days after the date of publication of notice of filing of the proposed rule change. The Commission may extend the period for issuing an order approving or disapproving the proposed rule change, however, by not more than 60 days if the Commission determines that a longer period is appropriate and publishes the reasons for such determination. The proposed rule change was published for notice and comment in the Federal Register on August 7, 2019. February 3, 2020 is 180 days from that date, and April 3, 2020 is 240 days from that date. The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,10 designates April 3, 2020 as the date by which the Commission shall either approve or disapprove the proposed rule change (File No. SR–CboeBZX–2019–068). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–02203 Filed 2–4–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–794, OMB Control No. 3235–0737] 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. jbell on DSKJLSW7X2PROD with NOTICES Extension: Rule 22e–4. 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 9 15 U.S.C. 78s(b)(2). 10 Id. 11 17 CFR 200.30–3(a)(57). VerDate Sep<11>2014 18:54 Feb 04, 2020 Jkt 250001 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 PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 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 E:\FR\FM\05FEN1.SGM 05FEN1 jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices 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 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. The public may view the 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) David Bottom, 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. Comments must be submitted to OMB within 30 days of this notice. Dated: January 31, 2020. J. Matthew DeLesDernier, Assistant Secretary. Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change Relating To Amend Certain Rules Within Rules 4.5 Through 4.16, Which Contain the Exchange’s Compliance Rule (‘‘Compliance Rule’’) Regarding the National Market System Plan Governing the Consolidated Audit Trail (the ‘‘CAT NMS Plan’’ or ‘‘Plan’’), To Be Consistent With Certain Proposed Amendments to and Exemptions From the CAT NMS Plan as Well as To Facilitate the Retirement of Certain Existing Regulatory Systems January 30, 2020. 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 January 22, 2020, Cboe BZX Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III 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 BZX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘Cboe BZX’’) proposes to amend certain Rules within Rules 4.5 through 4.16, which contain the Exchange’s compliance rule (‘‘Compliance Rule’’) regarding the National Market System Plan Governing the Consolidated Audit Trail (the ‘‘CAT NMS Plan’’ or ‘‘Plan’’),3 to be consistent with certain proposed amendments to and exemptions from the CAT NMS Plan as well as to facilitate the retirement of certain existing regulatory systems. 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/bzx/), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the Compliance Rule. 2 17 BILLING CODE 8011–01–P 18:54 Feb 04, 2020 [Release No. 34–88101; File No. SR– CboeBZX–2020–011] 1 15 [FR Doc. 2020–02233 Filed 2–4–20; 8:45 am] VerDate Sep<11>2014 SECURITIES AND EXCHANGE COMMISSION Jkt 250001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 6589 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 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 this proposed rule change is to amend the Consolidated Audit Trail (‘‘CAT’’) Compliance Rule in Rules 4.5 through 4.16 to be consistent with certain proposed amendments to and exemptions from the CAT NMS Plan as well as to facilitate the retirement of certain existing regulatory systems. As described more fully below, the proposed rule change would make the following changes to the Compliance Rule: • Revise data reporting requirements for the Firm Designated ID; • Add additional data elements to the CAT reporting requirements for Industry Members to facilitate the retirement of the Financial Industry Regulatory Authority, Inc.’s (‘‘FINRA’’) Order Audit Trail System (‘‘OATS’’); • Add additional data elements related to OTC Equity Securities that FINRA currently receives from ATSs that trade OTC Equity Securities for regulatory oversight purposes to the CAT reporting requirements for Industry Members; • Implement a phased approach for Industry Member reporting to the CAT (‘‘Phased Reporting’’); • Revise the CAT reporting requirements regarding cancelled trades and SRO-Assigned Market Participant Identifiers of clearing brokers, if applicable, in connection with order executions, as such information will be available from FINRA’s trade reports submitted to the CAT; • To the extent that any Industry Member’s order handling or execution systems utilize time stamps in increments finer than milliseconds, revise the timestamp granularity requirement to require such Industry Member to record and report Industry E:\FR\FM\05FEN1.SGM 05FEN1

Agencies

[Federal Register Volume 85, Number 24 (Wednesday, February 5, 2020)]
[Notices]
[Pages 6588-6589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02233]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-794, OMB Control No. 3235-0737]


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 22e-4.

    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

[[Page 6589]]

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 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.
    The public may view the 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) David Bottom, 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]. Comments must be submitted to OMB within 30 days 
of this notice.

    Dated: January 31, 2020.
 J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-02233 Filed 2-4-20; 8:45 am]
 BILLING CODE 8011-01-P
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