Submission for OMB Review; Comment Request, 37721-37722 [2020-13512]

Download as PDF Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / 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 10:00 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–MIAX–2020–16 and should be submitted on or before July 14, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–13430 Filed 6–22–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–616, OMB Control No. 3235–0671] 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. jbell on DSKJLSW7X2PROD with NOTICES Extension: Rule 613 of Regulation NMS 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 21 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:17 Jun 22, 2020 Jkt 250001 Office of Management and Budget (‘‘OMB’’) a request for approval of extension of the previously approved collection of information provided for in connection with a National Market System (NMS) Plan filed with the Commission under Rule 613 (17 CFR 242.613), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). Rule 613 of Regulation NMS (17 CFR part 242) required national securities exchanges and national securities associations (‘‘Participants’’) to jointly submit to the Commission a national market system (‘‘NMS’’) plan to govern the creation, implementation, and maintenance of a consolidated audit trail (‘‘CAT’’) and Central Repository for the collection of information for NMS securities. On February 27, 2015, the Participants submitted the CAT NMS Plan to the Commission.1 On April 27, 2016, the Commission published a notice soliciting comments from the public (‘‘CAT NMS Plan Notice’’).2 On November 15, 2016, the Commission approved the CAT NMS Plan (‘‘CAT NMS Plan Order’’), including the information collections proposed in the CAT NMS Plan Notice and certain additional information collections.3 Since November 15, 2016, the Commission believes that three information collection requirements have been completed, specifically: (1) A document outlining how the Participants could incorporate into the consolidated audit trail information regarding certain products that are not 1 See Letter from Participants to Brent J. Fields, Secretary, Commission, dated February 27, 2015. The Participants filed the CAT NMS Plan on September 30, 2014. See Letter from the Participants, to Brent J. Fields, Secretary, Commission, dated September 30, 2014. The CAT NMS Plan filed on February 27, 2015, was an amendment to and replacement of the Initial CAT NMS Plan (the ‘‘Amended and Restated CAT NMS Plan’’). On December 24, 2015, the Participants submitted an Amendment to the Amended and Restated CAT NMS Plan. See Letter from Participants to Brent J. Fields, Secretary, Commission, dated December 23, 2015 (the ‘‘Amendment’’). On February 9, 2016, the Participants filed with the Commission an identical, but unmarked, version of the Amended and Restated CAT NMS Plan, dated February 27, 2015, as modified by the Amendment, as well as a copy of the request for proposal issued by the Participants to solicit Bids from parties interested in serving as the Plan Processor for the consolidated audit trail. Unless the context otherwise requires, the ‘‘CAT NMS Plan’’ shall refer to the Amended and Restated CAT NMS Plan, as modified by the Amendment. 2 See Securities Exchange Act Release No. 77724 (April 27, 2016), 81 FR 30613 (May 17, 2016). The burdens associated with the CAT NMS Plan Notice were submitted under OMB number 3235–0671 which relates to the NMS Plan required to be filed under Rule 613. 3 See Securities Exchange Act Release No. 79318 (November 15, 2016), 81 FR 84696 (November 23, 2016), available at https://www.sec.gov/rules/sro/ nms/2016/34-79318.pdf (‘‘CAT NMS Plan Order’’). PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 37721 NMS securities; 4 (2) a one-time assessment of the clock synchronization standards in the Plan before reporting begins for Industry Members, which assessment shall take into account the diversity of CAT Reporters and systems; 5 and (3) a one-time report that discusses the Participants’ assessment of implementing coordinated surveillance.6 This Notice addresses the remaining information collection requirements noticed in the CAT NMS Plan Notice and certain additional information collection requirements of the CAT NMS Plan Order, which are: (1) Development of a Central Repository tasked with the receipt, consolidation, and retention of reported order and execution information submitted by Participants and their members; 7 (2) the requirement that each Participant, and any member of such Participant, record and electronically report to the Central Repository details for each order and Reportable Event documenting the life of an order through the process of original receipt or origination, routing, modification, cancellation, and execution (in whole or in part) for each NMS security; 8 (3) the requirement that the CAT NMS Plan require the Central Repository to collect and retain on a current and continuous basis NBBO information for each NMS security, transaction reports reported pursuant to an effective transaction reporting plan, and Last Sale Reports reported pursuant to the Options Price Reporting Authority Plan; 9 (4) the requirement that the CAT NMS Plan must require that every national securities exchange and national securities association develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the consolidated audit trail; 10 (5) a one-time independent audit of the fees, costs, and expenses incurred by the Participants on behalf of CAT NMS, LLC prior to the Effective Date 11 of the Plan; 12 (6) a one-time report from 4 See 17 CFR 242.613(i). See also ‘‘One-Time Written Assessments,’’ Consolidated Audit Trail, LLC at: https://www.catnmsplan.com/one-timewritten-assessments/. 5 See CAT NMS Plan Order, supra note 3, at 84940. 6 Id. at 84940–84941. 7 See 17 CFR 242.613. 8 See 17 CFR 242.613(c)(1), (c)(5), (c)(6), (c)(7). 9 See 17 CFR 242.613(e)(7). 10 See 17 CFR 242.613(f). 11 The ‘‘Effective Date’’ is the date the Commission approved the CAT NMS Plan, which is November 15, 2016. See id. 12 See CAT NMS Plan Order, supra note 3, at 84940. E:\FR\FM\23JNN1.SGM 23JNN1 37722 Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices the Participants discussing the feasibility and advisability of allowing Industry Members to bulk download the Raw Data that it has submitted to the Central Repository; 13 (7) a one-time assessment of the nature and extent of errors in the Customer information submitted to the Central Repository and whether the correction of certain data fields over others should be prioritized from the Participants; 14 (8) a one-time report on the impact of tiered fees on market liquidity, including an analysis of the impact of the tiered-fee structure on Industry Members provision of liquidity from the Participants; 15 (9) an assessment of the projected impact of any Material Systems Change on the Maximum Error Rate, prior to the implementation of such Material Systems Change from the Participants; 16 (10) an annual requirement that that the CAT LLC financials be (i) in compliance with GAAP, (ii) be audited by an independent public accounting firm, and (iii) be made publicly available; 17 (11) a requirement that each Participant conduct background checks for its employees and contractors that will use the CAT System.18 The Commission believes that the CAT NMS Plan, once fully implemented, will improve the quality of the data available to regulators in four areas that affect the ultimate effectiveness of core regulatory efforts— completeness, accuracy, accessibility and timeliness.19 The improvements in these data qualities would substantially improve regulators’ ability to perform analysis and reconstruction of market events, and market analysis and research to inform policy decisions, as well as perform regulatory activities, in particular market surveillance, examinations, investigations, and other enforcement functions. The Commission estimates that 1524 respondents 20 will require an aggregate 13 Id. at 84941. 14 Id. jbell on DSKJLSW7X2PROD with NOTICES 15 Id. at 84941–84942. 16 Id. at 84942. The Commission believes that four assessments would be filed annually. 17 Id. 18 Id. The Commission believes that these background checks are necessary to ensure that only authorized and qualified persons are using the CAT System. 19 See CAT NMS Plan Order, supra note 3, at 45727 (discussing four ‘‘qualities’’ of trade and order data that impact the effectiveness of core Participant and Commission regulatory efforts: accuracy, completeness, accessibility, and timeliness). 20 The Commission notes that 24 Participants (the 23 national securities exchanges and one national securities association) and 1,500 broker-dealers subject to information collections requirements pursuant to Rule 613 and the CAT NMS Plan. VerDate Sep<11>2014 17:17 Jun 22, 2020 Jkt 250001 total of approximately 7,572,610 hours per year to comply with the collection of information. The Commission further estimates that the aggregate cost to comply with the collection of information will be approximately $463,322,593 per year. 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 view background documentation for this information collection at the following website: www.reginfo.gov. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to (i) www.reginfo.gov/public/do/ PRAMain and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by sending an email to: PRA_Mailbox@sec.gov. Dated: June 18, 2020. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–13512 Filed 6–22–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–89080; File No. SR– CboeEDGX–2020–028] Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 21.5 To Conform the Rule to Section 3.1 of the Plan for the Purpose of Developing and Implementing Procedures Designed To Facilitate the Listing and Trading of Standardized Options and Add New Rule 21.5(e) June 17, 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 June 11, 2020, Cboe EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX 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 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00101 Fmt 4703 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 Cboe EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX Options’’) proposes to amend Rule 21.5 to conform the rule to Section 3.1 of the Plan for the Purpose of Developing and Implementing Procedures Designed to Facilitate the Listing and Trading of Standardized Options (the ‘‘OLPP’’) and add new Rule 21.5(e). 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/ options/regulation/rule_filings/edgx/), 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 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 rule change is to amend Rule 21.5 (Minimum Increments) to align the rule with the recently approved amendment to the OLPP. Background On January 23, 2007, the Commission approved on a limited basis a Penny Pilot in option classes in certain issues (‘‘Penny Pilot’’). The Penny Pilot was designed to determine whether investors would benefit from options being quoted in penny increments, and 3 15 4 17 Sfmt 4703 E:\FR\FM\23JNN1.SGM U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 23JNN1

Agencies

[Federal Register Volume 85, Number 121 (Tuesday, June 23, 2020)]
[Notices]
[Pages 37721-37722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13512]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-616, OMB Control No. 3235-0671]


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 613 of Regulation NMS

    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 
connection with a National Market System (NMS) Plan filed with the 
Commission under Rule 613 (17 CFR 242.613), under the Securities 
Exchange Act of 1934 (15 U.S.C. 78a et seq.).
    Rule 613 of Regulation NMS (17 CFR part 242) required national 
securities exchanges and national securities associations 
(``Participants'') to jointly submit to the Commission a national 
market system (``NMS'') plan to govern the creation, implementation, 
and maintenance of a consolidated audit trail (``CAT'') and Central 
Repository for the collection of information for NMS securities. On 
February 27, 2015, the Participants submitted the CAT NMS Plan to the 
Commission.\1\ On April 27, 2016, the Commission published a notice 
soliciting comments from the public (``CAT NMS Plan Notice'').\2\ On 
November 15, 2016, the Commission approved the CAT NMS Plan (``CAT NMS 
Plan Order''), including the information collections proposed in the 
CAT NMS Plan Notice and certain additional information collections.\3\
---------------------------------------------------------------------------

    \1\ See Letter from Participants to Brent J. Fields, Secretary, 
Commission, dated February 27, 2015. The Participants filed the CAT 
NMS Plan on September 30, 2014. See Letter from the Participants, to 
Brent J. Fields, Secretary, Commission, dated September 30, 2014. 
The CAT NMS Plan filed on February 27, 2015, was an amendment to and 
replacement of the Initial CAT NMS Plan (the ``Amended and Restated 
CAT NMS Plan''). On December 24, 2015, the Participants submitted an 
Amendment to the Amended and Restated CAT NMS Plan. See Letter from 
Participants to Brent J. Fields, Secretary, Commission, dated 
December 23, 2015 (the ``Amendment''). On February 9, 2016, the 
Participants filed with the Commission an identical, but unmarked, 
version of the Amended and Restated CAT NMS Plan, dated February 27, 
2015, as modified by the Amendment, as well as a copy of the request 
for proposal issued by the Participants to solicit Bids from parties 
interested in serving as the Plan Processor for the consolidated 
audit trail. Unless the context otherwise requires, the ``CAT NMS 
Plan'' shall refer to the Amended and Restated CAT NMS Plan, as 
modified by the Amendment.
    \2\ See Securities Exchange Act Release No. 77724 (April 27, 
2016), 81 FR 30613 (May 17, 2016). The burdens associated with the 
CAT NMS Plan Notice were submitted under OMB number 3235-0671 which 
relates to the NMS Plan required to be filed under Rule 613.
    \3\ See Securities Exchange Act Release No. 79318 (November 15, 
2016), 81 FR 84696 (November 23, 2016), available at https://www.sec.gov/rules/sro/nms/2016/34-79318.pdf (``CAT NMS Plan 
Order'').
---------------------------------------------------------------------------

    Since November 15, 2016, the Commission believes that three 
information collection requirements have been completed, specifically: 
(1) A document outlining how the Participants could incorporate into 
the consolidated audit trail information regarding certain products 
that are not NMS securities; \4\ (2) a one-time assessment of the clock 
synchronization standards in the Plan before reporting begins for 
Industry Members, which assessment shall take into account the 
diversity of CAT Reporters and systems; \5\ and (3) a one-time report 
that discusses the Participants' assessment of implementing coordinated 
surveillance.\6\
---------------------------------------------------------------------------

    \4\ See 17 CFR 242.613(i). See also ``One-Time Written 
Assessments,'' Consolidated Audit Trail, LLC at: https://www.catnmsplan.com/one-time-written-assessments/.
    \5\ See CAT NMS Plan Order, supra note 3, at 84940.
    \6\ Id. at 84940-84941.
---------------------------------------------------------------------------

    This Notice addresses the remaining information collection 
requirements noticed in the CAT NMS Plan Notice and certain additional 
information collection requirements of the CAT NMS Plan Order, which 
are: (1) Development of a Central Repository tasked with the receipt, 
consolidation, and retention of reported order and execution 
information submitted by Participants and their members; \7\ (2) the 
requirement that each Participant, and any member of such Participant, 
record and electronically report to the Central Repository details for 
each order and Reportable Event documenting the life of an order 
through the process of original receipt or origination, routing, 
modification, cancellation, and execution (in whole or in part) for 
each NMS security; \8\ (3) the requirement that the CAT NMS Plan 
require the Central Repository to collect and retain on a current and 
continuous basis NBBO information for each NMS security, transaction 
reports reported pursuant to an effective transaction reporting plan, 
and Last Sale Reports reported pursuant to the Options Price Reporting 
Authority Plan; \9\ (4) the requirement that the CAT NMS Plan must 
require that every national securities exchange and national securities 
association develop and implement a surveillance system, or enhance 
existing surveillance systems, reasonably designed to make use of the 
consolidated information contained in the consolidated audit trail; 
\10\ (5) a one-time independent audit of the fees, costs, and expenses 
incurred by the Participants on behalf of CAT NMS, LLC prior to the 
Effective Date \11\ of the Plan; \12\ (6) a one-time report from

[[Page 37722]]

the Participants discussing the feasibility and advisability of 
allowing Industry Members to bulk download the Raw Data that it has 
submitted to the Central Repository; \13\ (7) a one-time assessment of 
the nature and extent of errors in the Customer information submitted 
to the Central Repository and whether the correction of certain data 
fields over others should be prioritized from the Participants; \14\ 
(8) a one-time report on the impact of tiered fees on market liquidity, 
including an analysis of the impact of the tiered-fee structure on 
Industry Members provision of liquidity from the Participants; \15\ (9) 
an assessment of the projected impact of any Material Systems Change on 
the Maximum Error Rate, prior to the implementation of such Material 
Systems Change from the Participants; \16\ (10) an annual requirement 
that that the CAT LLC financials be (i) in compliance with GAAP, (ii) 
be audited by an independent public accounting firm, and (iii) be made 
publicly available; \17\ (11) a requirement that each Participant 
conduct background checks for its employees and contractors that will 
use the CAT System.\18\
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    \7\ See 17 CFR 242.613.
    \8\ See 17 CFR 242.613(c)(1), (c)(5), (c)(6), (c)(7).
    \9\ See 17 CFR 242.613(e)(7).
    \10\ See 17 CFR 242.613(f).
    \11\ The ``Effective Date'' is the date the Commission approved 
the CAT NMS Plan, which is November 15, 2016. See id.
    \12\ See CAT NMS Plan Order, supra note 3, at 84940.
    \13\ Id. at 84941.
    \14\ Id.
    \15\ Id. at 84941-84942.
    \16\ Id. at 84942. The Commission believes that four assessments 
would be filed annually.
    \17\ Id.
    \18\ Id. The Commission believes that these background checks 
are necessary to ensure that only authorized and qualified persons 
are using the CAT System.
---------------------------------------------------------------------------

    The Commission believes that the CAT NMS Plan, once fully 
implemented, will improve the quality of the data available to 
regulators in four areas that affect the ultimate effectiveness of core 
regulatory efforts--completeness, accuracy, accessibility and 
timeliness.\19\ The improvements in these data qualities would 
substantially improve regulators' ability to perform analysis and 
reconstruction of market events, and market analysis and research to 
inform policy decisions, as well as perform regulatory activities, in 
particular market surveillance, examinations, investigations, and other 
enforcement functions.
---------------------------------------------------------------------------

    \19\ See CAT NMS Plan Order, supra note 3, at 45727 (discussing 
four ``qualities'' of trade and order data that impact the 
effectiveness of core Participant and Commission regulatory efforts: 
accuracy, completeness, accessibility, and timeliness).
---------------------------------------------------------------------------

    The Commission estimates that 1524 respondents \20\ will require an 
aggregate total of approximately 7,572,610 hours per year to comply 
with the collection of information. The Commission further estimates 
that the aggregate cost to comply with the collection of information 
will be approximately $463,322,593 per year.
---------------------------------------------------------------------------

    \20\ The Commission notes that 24 Participants (the 23 national 
securities exchanges and one national securities association) and 
1,500 broker-dealers subject to information collections requirements 
pursuant to Rule 613 and the CAT NMS Plan.
---------------------------------------------------------------------------

    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 view background documentation for this information 
collection at the following website: www.reginfo.gov. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by 
sending an email to: [email protected].

    Dated: June 18, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-13512 Filed 6-22-20; 8:45 am]
BILLING CODE 8011-01-P
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