Proposed Collection; Comment Request; Extension: Rule 22c-1, 56120-56121 [2022-19669]
Download as PDF
<![CDATA[
56120
Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices
with respect to the proposed rule
change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and paragraph (f) of Rule
19b–4 13 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
jspears on DSK121TN23PROD with NOTICES
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–
ICEEU–2022–018 on the subject line.
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–ICEEU–2022–018. 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
12 15
13 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
17:30 Sep 12, 2022
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s website at https://
www.theice.com/clear-europe/
regulation.
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–ICEEU–2022–018
and should be submitted on or before
October 4, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–19675 Filed 9–12–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–793, OMB Control No.
3235–0734]
Proposed Collection; Comment
Request; Extension: Rule 22c–1
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to 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.
Rule 22c–1 (17 CFR 270.22c–1) under
the Investment Company Act of 1940
(15 U.S.C. 80a) (the ‘‘Investment
Company Act’’ or ‘‘Act’’) enables a fund
to choose to use ‘‘swing pricing’’ as a
tool to mitigate shareholder dilution.
Rule 22c–1 is intended to promote
investor protection by providing funds
with an additional tool to mitigate the
potentially dilutive effects of
shareholder purchase or redemption
activity and a set of operational
standards that allow funds to gain
comfort using swing pricing as a means
of mitigating potential dilution.
14 17
Jkt 256001
PO 00000
CFR 200.30–3(a)(12).
Frm 00133
Fmt 4703
Sfmt 4703
The respondents to amended rule
22c–1 are open-end management
investment companies (other than
money market funds or exchange-traded
funds) that engage in swing pricing.
Compliance with rule 22c–1(a)(3) is
mandatory for any fund that chooses to
use swing pricing to adjust its NAV in
reliance on the rule.
While we are not aware of any funds
that have engaged in swing pricing,1 we
are estimating for the purpose of this
analysis that 5 fund complexes have
funds that may adopt swing pricing
policies and procedures in the future
pursuant to the rule. We estimate that
the total burden associated with the
preparation and approval of swing
pricing policies and procedures by those
fund complexes that would use swing
pricing will be 280 hours.2 We also
estimate that it will cost a fund complex
$48,188 to document, review and
initially approve these policies and
procedures, for a total cost of $240,940.3
Rule 22c–1 requires a fund that uses
swing pricing to maintain the fund’s
swing policies and procedures that are
in effect, or at any time within the past
six years were in effect, in an easily
accessible place.4 The rule also requires
a fund to retain a written copy of the
periodic report provided to the board
prepared by the swing pricing
administrator that describes, among
other things, the swing pricing
administrator’s review of the adequacy
of the fund’s swing pricing policies and
procedures and the effectiveness of their
implementation, including the impact
on mitigating dilution and any backtesting performed.5 The retention of
these records is necessary to allow the
staff during examinations of funds to
determine whether a fund is in
1 No funds have engaged in swing pricing as
reported on Form N–CEN as of August 15, 2022.
2 This estimate is based on the following
calculation: (48 + 2 + 6) hours × 5 fund complexes
= 280 hours.
3 These estimates are based on the following
calculations: 24 hours × $237 (hourly rate for a
senior accountant) = $5,688; 24 hours × $545
(blended hourly rate for assistant general counsel
($510) and chief compliance officer ($580)) =
$13,080; 2 hours (for a fund attorney’s time to
prepare materials for the board’s determinations) ×
$400 (hourly rate for a compliance attorney) = $800;
6 hours × $4,770 (hourly rate for a board of 9
directors) = $28,620; ($5,688 + $13,080 +$800 +
$28,620) = $48,188; $48,188 × 5 fund complexes =
$240,940. The hourly wages used are from SIFMA’s
Management & Professional Earnings in the
Securities Industry 2013, modified by Commission
staff to account for an 1800-hour work-year and
inflation, and multiplied by 5.35 to account for
bonuses, firm size, employee benefits, and
overhead. The staff has estimated the average cost
of board of director time as $4,770 per hour for the
board as a whole, based on information received
from funds and their counsel.
4 See rule 22c–1(a)(3)(iii).
5 See id.
E:\FR\FM\13SEN1.SGM
13SEN1
Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices
jspears on DSK121TN23PROD with NOTICES
compliance with its swing pricing
policies and procedures and with rule
22c–1. We estimate a time cost per fund
complex of $344.6 We estimate that the
total for recordkeeping related to swing
pricing will be 20 hours, at an aggregate
cost of $1,720, for all fund complexes
that we believe include funds that have
adopted swing pricing policies and
procedures.7
Amortized over a three-year period,
we believe that the hour burdens and
time costs associated with rule 22c–1,
including the burden associated with
the requirements that funds adopt
policies and procedures, obtain board
approval, and periodic review of an
annual written report from the swing
pricing administrator, and retain certain
records and written reports related to
swing pricing, will result in an average
aggregate annual burden of 113.3 hours,
and average aggregate time costs of
$82,033.8 We also estimate that rule
22c–1 imposes a total external cost
burden of $2,655 for outside legal
services related to compliance with the
policies and procedures requirement.9
These estimates of average costs are
made solely for the purposes of the
Paperwork Reduction Act. The estimate
is not derived from a comprehensive or
even a representative survey or study of
the costs of Commission rules. This
collection of information is necessary to
obtain a benefit and will not be kept
confidential. 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 OMB control number.
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 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
6 This estimate is based on the following
calculations: 2 hours × $68 (hourly rate for a general
clerk) = $136; 2 hours × $104 (hourly rate for a
senior computer operator) = $208. $136 + $208 =
$344.
7 These estimates are based on the following
calculations: 4 hours × 5 fund complexes = 20
hours. 5 fund complexes × $344 = $1,720.
8 These estimates are based on the following
calculations: (280 hours (year 1) + (3 × 20 hours)
(years 1, 2 and 3)) ÷ 3 = 113.3 hours; ($240,940 (year
1) + (3 × $1,720) (years 1, 2 and 3)) ÷ 3 = $82,033.
9 This estimated burden is based on the estimated
wage rate of $531 per hour for outside legal services
and the following calculation: $531 × 5 fund
complexes = $2,655.
VerDate Sep<11>2014
17:30 Sep 12, 2022
Jkt 256001
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
by November 14, 2022.
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: David Bottom, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
Dated: September 7, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–19669 Filed 9–12–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–617, OMB Control No.
3235–0728]
Proposed Collection; Comment
Request; Extension: Rule 17Ab2–2
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
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 existing collection of information
provided for in Rule 17Ab2–2 (17 CFR
240.17Ab2–2) 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.
Exchange Act Rule 17Ab2–2
establishes procedures for the
Commission to make a determination,
either of its own initiative or upon
application by any clearing agency or
member of a clearing agency, whether a
covered clearing agency is systemically
important in multiple jurisdictions and
procedures to determine, if the
Commission deems appropriate,
whether any of the activities of a
clearing agency providing central
counterparty services, in addition to
clearing agencies registered with the
Commission for the purpose of clearing
security-based swaps, have a more
complex risk profile. In addition,
Exchange Act Rule 17Ab2–2 provides a
PO 00000
Frm 00134
Fmt 4703
Sfmt 4703
56121
procedure for the Commission to
determine whether to rescind any such
determinations previously made by the
Commission.
Because determinations made by the
Commission pursuant to Exchange Act
Rule 17Ab2–2 may be made upon the
request of a clearing agency, respondent
clearing agencies would have the
burden of preparing such requests for
submission to the Commission.
Commission staff estimates that Rule
17Ab2–2 will impose a PRA burden on
registered clearing agencies that seek a
determination from the Commission
regarding the covered clearing agency’s
status as systemically important in
multiple jurisdictions. Commission staff
estimates that two registered clearing
agencies or their members on their
behalf will apply for a Commission
determination, or may be subject to a
Commission-initiated determination,
regarding whether a registered clearing
agency is involved in activities with a
more complex risk profile or whether a
covered clearing agency is systemically
important in multiple jurisdictions.
Commission staff estimates that each
respondent clearing agency incurs a
one-time burden of 10 hours and a onetime cost of $2,000 to draft and review
a determination request submitted to the
Commission, for a total of 20 hours and
$4,000 for all respondents. The total
annualized burden and cost for all
respondents are 6.66 hours and
$1,333.33.
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
estimates 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 by November 14, 2022.
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: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
E:\FR\FM\13SEN1.SGM
13SEN1
]]>Agencies
[Federal Register Volume 87, Number 176 (Tuesday, September 13, 2022)]
[Notices]
[Pages 56120-56121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19669]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-793, OMB Control No. 3235-0734]
Proposed Collection; Comment Request; Extension: Rule 22c-1
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Notice is hereby given that, pursuant to 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.
Rule 22c-1 (17 CFR 270.22c-1) under the Investment Company Act of
1940 (15 U.S.C. 80a) (the ``Investment Company Act'' or ``Act'')
enables a fund to choose to use ``swing pricing'' as a tool to mitigate
shareholder dilution. Rule 22c-1 is intended to promote investor
protection by providing funds with an additional tool to mitigate the
potentially dilutive effects of shareholder purchase or redemption
activity and a set of operational standards that allow funds to gain
comfort using swing pricing as a means of mitigating potential
dilution.
The respondents to amended rule 22c-1 are open-end management
investment companies (other than money market funds or exchange-traded
funds) that engage in swing pricing. Compliance with rule 22c-1(a)(3)
is mandatory for any fund that chooses to use swing pricing to adjust
its NAV in reliance on the rule.
While we are not aware of any funds that have engaged in swing
pricing,\1\ we are estimating for the purpose of this analysis that 5
fund complexes have funds that may adopt swing pricing policies and
procedures in the future pursuant to the rule. We estimate that the
total burden associated with the preparation and approval of swing
pricing policies and procedures by those fund complexes that would use
swing pricing will be 280 hours.\2\ We also estimate that it will cost
a fund complex $48,188 to document, review and initially approve these
policies and procedures, for a total cost of $240,940.\3\
---------------------------------------------------------------------------
\1\ No funds have engaged in swing pricing as reported on Form
N-CEN as of August 15, 2022.
\2\ This estimate is based on the following calculation: (48 + 2
+ 6) hours x 5 fund complexes = 280 hours.
\3\ These estimates are based on the following calculations: 24
hours x $237 (hourly rate for a senior accountant) = $5,688; 24
hours x $545 (blended hourly rate for assistant general counsel
($510) and chief compliance officer ($580)) = $13,080; 2 hours (for
a fund attorney's time to prepare materials for the board's
determinations) x $400 (hourly rate for a compliance attorney) =
$800; 6 hours x $4,770 (hourly rate for a board of 9 directors) =
$28,620; ($5,688 + $13,080 +$800 + $28,620) = $48,188; $48,188 x 5
fund complexes = $240,940. The hourly wages used are from SIFMA's
Management & Professional Earnings in the Securities Industry 2013,
modified by Commission staff to account for an 1800-hour work-year
and inflation, and multiplied by 5.35 to account for bonuses, firm
size, employee benefits, and overhead. The staff has estimated the
average cost of board of director time as $4,770 per hour for the
board as a whole, based on information received from funds and their
counsel.
---------------------------------------------------------------------------
Rule 22c-1 requires a fund that uses swing pricing to maintain the
fund's swing policies and procedures that are in effect, or at any time
within the past six years were in effect, in an easily accessible
place.\4\ The rule also requires a fund to retain a written copy of the
periodic report provided to the board prepared by the swing pricing
administrator that describes, among other things, the swing pricing
administrator's review of the adequacy of the fund's swing pricing
policies and procedures and the effectiveness of their implementation,
including the impact on mitigating dilution and any back-testing
performed.\5\ The retention of these records is necessary to allow the
staff during examinations of funds to determine whether a fund is in
[[Page 56121]]
compliance with its swing pricing policies and procedures and with rule
22c-1. We estimate a time cost per fund complex of $344.\6\ We estimate
that the total for recordkeeping related to swing pricing will be 20
hours, at an aggregate cost of $1,720, for all fund complexes that we
believe include funds that have adopted swing pricing policies and
procedures.\7\
---------------------------------------------------------------------------
\4\ See rule 22c-1(a)(3)(iii).
\5\ See id.
\6\ This estimate is based on the following calculations: 2
hours x $68 (hourly rate for a general clerk) = $136; 2 hours x $104
(hourly rate for a senior computer operator) = $208. $136 + $208 =
$344.
\7\ These estimates are based on the following calculations: 4
hours x 5 fund complexes = 20 hours. 5 fund complexes x $344 =
$1,720.
---------------------------------------------------------------------------
Amortized over a three-year period, we believe that the hour
burdens and time costs associated with rule 22c-1, including the burden
associated with the requirements that funds adopt policies and
procedures, obtain board approval, and periodic review of an annual
written report from the swing pricing administrator, and retain certain
records and written reports related to swing pricing, will result in an
average aggregate annual burden of 113.3 hours, and average aggregate
time costs of $82,033.\8\ We also estimate that rule 22c-1 imposes a
total external cost burden of $2,655 for outside legal services related
to compliance with the policies and procedures requirement.\9\
---------------------------------------------------------------------------
\8\ These estimates are based on the following calculations:
(280 hours (year 1) + (3 x 20 hours) (years 1, 2 and 3)) / 3 = 113.3
hours; ($240,940 (year 1) + (3 x $1,720) (years 1, 2 and 3)) / 3 =
$82,033.
\9\ This estimated burden is based on the estimated wage rate of
$531 per hour for outside legal services and the following
calculation: $531 x 5 fund complexes = $2,655.
---------------------------------------------------------------------------
These estimates of average costs are made solely for the purposes
of the Paperwork Reduction Act. The estimate is not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules. This collection of information is necessary to obtain
a benefit and will not be kept confidential. 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 OMB control number.
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 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 by November 14, 2022.
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: David Bottom, Acting
Director/Chief Information Officer, Securities and Exchange Commission,
c/o John Pezzullo, 100 F Street NE, Washington, DC 20549 or send an
email to: [email protected].
Dated: September 7, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-19669 Filed 9-12-22; 8:45 am]
BILLING CODE 8011-01-P
