Proposed Collection; Comment Request; Extension: Rule 17Ab2-2, 56121-56122 [2022-19677]

Download as PDF 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 56122 Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices Dated: September 7, 2022. J. Matthew DeLesDernier, Deputy Secretary. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change [FR Doc. 2022–19677 Filed 9–12–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–95695; File No. SR–BX– 2022–015] Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Equity 4, Rules 4120, 4702 and 4703 September 7, 2022. 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 August 25, 2022, Nasdaq BX, Inc. (‘‘BX’’ or the ‘‘Exchange’’) 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 Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Equity 4, Rules 4120, 4702 and 4703 in light of planned changes to the System as well as to address existing issues, as described further below. The text of the proposed rule change is available on the Exchange’s website at https://listingcenter.nasdaq.com/ rulebook/bx/rules, at the principal office of the Exchange, and at the Commission’s Public Reference Room. jspears on DSK121TN23PROD with NOTICES 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 parts of such statements. 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Sep<11>2014 17:30 Sep 12, 2022 Jkt 256001 1. Purpose The Exchange is preparing to introduce a new upgraded version of the OUCH Order entry protocol 3 that will enable the Exchange to make functional enhancements and improvements to specific Order Types 4 and Order Attributes.5 Specifically, enhancements to OUCH will enable the Exchange to upgrade the logic and implementation of these Order Types and Order Attributes so that the features are more robust, streamlined, and harmonized across the Exchange’s Systems and Order entry protocols. The Exchange developed OUCH with simplicity in mind, and therefore, it presently lacks certain complex order handling capabilities. By contrast, the Exchange specifically designed its RASH Order Entry Protocol 6 to support advanced functionality, including discretion, random reserve, pegging and routing. The introduction of OUCH upgrades will enable participants to utilize OUCH, in addition to RASH, to enter Order Types that require advanced functionality. Thus, the proposal does not seek to introduce new functionality, but rather, it offers to OUCH users advanced functionality that already exists for RASH users. The Exchange plans to implement its enhancement of the OUCH protocol sequentially, by Order Type and Order Attribute.7 3 The OUCH Order entry protocol is a proprietary protocol that allows subscribers to quickly enter orders into the System and receive executions. OUCH accepts limit Orders from members, and if there are matching Orders, they will execute. Nonmatching Orders are added to the Limit Order Book, a database of available limit Orders, where they are matched in price-time priority. OUCH only provides a method for members to send Orders and receive status updates on those Orders. See https:// www.nasdaqtrader.com/Trader.aspx?id=OUCH. 4 An ‘‘Order Type’’ is a standardized set of instructions associated with an Order that define how it will behave with respect to pricing, execution, and/or posting to the Exchange Book when submitted to the Exchange. See Equity 1, Section 1(a)(11). 5 An ‘‘Order Attribute’’ is a further set of variable instructions that may be associated with an Order to further define how it will behave with respect to pricing, execution, and/or posting to the Exchange Book when submitted to the Exchange. See id. 6 The RASH (Routing and Special Handling) Order entry protocol is a proprietary protocol that allows members to enter Orders, cancel existing Orders and receive executions. RASH allows participants to use advanced functionality, including discretion, random reserve, pegging and routing. See https://nasdaqtrader.com/content/ technicalsupport/specifications/TradingProducts/ rash_sb.pdf. 7 The Exchange notes that its sister exchanges, The Nasdaq Stock Market and Nasdaq PSX, plan to PO 00000 Frm 00135 Fmt 4703 Sfmt 4703 To support and prepare for the introduction of OUCH upgrades, the Exchange proposes to amend Rule 4702 pertaining to Order Types to specify that, going forward, OUCH may be used to enter certain Order Types together with certain Order Attributes, whereas now, Rule 4702 specifies that RASH and FIX, but not OUCH, may be used to enter such combinations of Order Types and Attributes. The Exchange also proposes to adjust the current functionality of the Pegging,8 Reserve,9 and Trade Now Order Attributes,10 as described below, so that they align with how OUCH, once upgraded, will handle these Order Attributes going forward. Changes to Use of Certain Order Types With Certain Order Attributes Pursuant to Rule 4702(b), the availability of certain Order Attributes for use with certain Order Types presently depends upon the particular Order entry protocol a participant uses to enter its Order. For Price to Comply and Price to Display Orders entered though OUCH, the Reserve Size, Primary Pegging and Market Pegging, and Discretion Attributes are not available to participants presently. For Non-Displayed Orders entered through OUCH, the Primary Pegging, Market Pegging, and Discretion Attributes are not available presently. The Exchange proposes to amend Rule 4702(b) so that for each of the Order Types listed above, participants may utilize the corresponding Order Attributes when participants enter their Orders using the upgraded version of OUCH. Meanwhile, for Non-Displayed Orders with the Midpoint Pegging Attribute, the behavior of such Orders presently varies, as set forth in Rule 4703(d), based upon whether a participant uses OUCH/FLITE or RASH/FIX to enter them into the System. Going forward, the Exchange proposes to amend the Rule to reference the amended version Rule 4703(d) (discussed below), which will describe variances in behavior involving Non-Displayed Orders with Midpoint Pegging which will no longer depend strictly upon the Order entry protocol associated with the Orders. Changes to Market Maker Peg Orders Rule 4702(b)(7)(A) presently provides that Market Maker Peg Orders may be entered through RASH or FIX only. The Exchange proposes to amend this provision to state that the upgraded file similar proposed rule changes with the Commission shortly. 8 See Rule 4703(d). 9 See Rule 4703(h). 10 See Rule 4703(l). E:\FR\FM\13SEN1.SGM 13SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 87, Number 176 (Tuesday, September 13, 2022)]
[Notices]
[Pages 56121-56122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19677]


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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 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 one-time 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: 
[email protected].


[[Page 56122]]


    Dated: September 7, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-19677 Filed 9-12-22; 8:45 am]
BILLING CODE 8011-01-P

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