Submission for OMB Review; Comment Request; Extension: Rule 17a-4, 67523-67524 [2022-24248]
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Federal Register / Vol. 87, No. 215 / Tuesday, November 8, 2022 / Notices
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CboeEDGX–2022–047. 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
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–CboeEDGX–2022–047 and
should be submitted on or before
November 29, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–24283 Filed 11–7–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–198, OMB Control No.
3235–0279]
lotter on DSK11XQN23PROD with NOTICES1
Submission for OMB Review;
Comment Request; Extension: Rule
17a–4
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
21 17
CFR 200.30–3(a)(12), (59).
VerDate Sep<11>2014
16:56 Nov 07, 2022
Jkt 259001
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 extension of the
previously approved collection of
information provided for in Rule 17a–4
(17 CFR 240.17a–4), under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 17a–4 requires exchange
members, brokers, and dealers (‘‘brokerdealers’’) to preserve for prescribed
periods of time certain records required
to be made by Rule 17a–3. In addition,
Rule 17a–4 requires the preservation of
records required to be made by other
Commission rules and other kinds of
records which firms make or receive in
the ordinary course of business. These
include, but are not limited to, bank
statements, cancelled checks, bills
receivable and payable, originals of
communications, and descriptions of
various transactions. Rule 17a–4 also
permits broker-dealers to employ, under
certain conditions, electronic storage
media to maintain records required to
be maintained under Rules 17a–3 and
17a–4.
There are approximately 3,508 active,
registered broker-dealers. The staff
estimates that the average amount of
time necessary to preserve the books
and records as required by Rule 17a–4
is 254 hours per broker-dealer per year.
Additionally, the Commission estimates
that paragraph (b)(11) of Rule 17a–4
imposes an annual burden of 3 hours
per year to maintain the requisite
records. The Commission estimates that
there are approximately 200 internal
broker-dealer systems, resulting in an
annual recordkeeping burden of 600
hours.
The Commission also estimates that
there are approximately 2,578 brokerdealers with retail customers resulting
in an annual initial burden of
approximately 4,225,342 hours and an
annual ongoing burden of
approximately 4,182,947 to comply with
Rule 17a–4(e)(5). Moreover the
Commission estimates that these brokerdealers will incur 258 hours in annual
burden to comply with Rule 17a–
4(e)(10).
Therefore, the Commission estimates
that compliance with Rule 17a–4
requires 9,300,179 hours each year
((3,508 broker-dealers × 254 hours) +
(200 broker-dealers × 3 hours) +
4,225,342 hours + 4,182,947 hours + 258
hours)). These burdens are
recordkeeping burdens. The total
burden hour decrease of 678,217 hours
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
67523
is due to a decrease in the number of
respondents from 3,764 to 3,508.
In addition, the Commission estimates
that the telephonic recording retention
provision of paragraph (b)(4) of Rule
17a–4 imposes an initial burden on
broker-dealer SBSDs and broker-dealer
MSBSPs of 13 hours per firm in the first
year and an ongoing burden of 6 hours
per year (including the first year).
Therefore, the Commission estimates
that there are 17 respondents, resulting
in an estimated industry-wide initial
burden of 221 hours in the first year and
an ongoing burden of 102 hours per year
(including the first year) bringing the
total industry burden estimation to 527
hours over a three-year period.
The Commission estimates that the
provisions of paragraphs (b)(1), and
(b)(8)(v)–(viii) relating to security-based
swap activities and paragraphs
(b)(8)(xvi) and (b)(14) of Rule 17a–4
impose an initial burden of 65 hours per
firm in the first year and an ongoing
burden of 30 hours per year (including
the first year). The Commission
estimates that there are 42 respondents,
resulting in an estimated industry-wide
initial burden of 2,730 hours in the first
year and an ongoing burden of 1,260
hours per year (including the first year)
bringing the total industry burden
estimation to 6,510 hours over a threeyear period.
The Commission estimates that the
provisions of paragraph (b)(1) applicable
to broker-dealer SBSDs and brokerdealer MSBSPs and paragraphs (b)(15)
and (b)(16) of Rule 17a–4 impose an
initial burden of 65 hours per firm in
the first year and an ongoing burden of
30 hours per year on broker-dealer
SBSDs and broker-dealer MSBSPs
(including the first year). The
Commission estimates that there are 17
respondents, resulting in an estimated
industry-wide initial burden of 1,105
hours in the first year and an ongoing
burden of 510 hours per year (including
the first year) bringing the total industry
burden estimation to 2,635 hours over a
three year period.
The Commission estimates that
provisions of paragraph (b)(1) of Rule
17a–4 that apply only to broker-dealer
SBSDs impose an initial burden of 13
hours per firm in the first year and an
ongoing burden of 6 hours per year
(including the first year) on brokerdealer SBSDs. The Commission
estimates that there are 16 broker-dealer
SBSDs, resulting in an estimated
industry-wide initial burden of 208
hours in the first year and an ongoing
burden of 96 hours per year (including
the first year) bringing the total industry
burden estimation to 496 hours over a
three year period.
E:\FR\FM\08NON1.SGM
08NON1
lotter on DSK11XQN23PROD with NOTICES1
67524
Federal Register / Vol. 87, No. 215 / Tuesday, November 8, 2022 / Notices
The staff believes that compliance
personnel would be charged with
ensuring compliance with Commission
regulation, including Rule 17a–4. The
staff estimates that the hourly salary of
a Compliance Clerk is $78 per hour.
Based upon these numbers, the total
internal cost of compliance for 3,508
respondents is the dollar cost of
approximately $749 million ((891,632
yearly hours × $78) + (600 hours × $78)
+ (4,225,342 hours × $78) + (4,489,218
hours × $78) + (258 hours × $78)).
Based on conversations with members
of the securities industry and the
Commission’s experience in the area,
the staff estimates that the average
broker-dealer spends approximately
$5,000 each year to store documents
required to be retained under Rule 17a–
4. Costs include the cost of physical
space, computer hardware and software,
etc., which vary widely depending on
the size of the broker-dealer and the
type of storage media employed. The
Commission estimates that the annual
reporting and recordkeeping cost
burden is $17,540,000. This cost is
calculated by the number of active,
registered broker-dealers multiplied by
the reporting and recordkeeping cost for
each respondent (3,508 registered
broker-dealers × $5,000).
The Commission estimates that each
applicable firm incurs an ongoing
annual cost of approximately $2,000 per
firm for server, equipment, and systems
development costs associated with the
telephonic recording retention
requirement, which applicable to
broker-dealer SBSDs and broker-dealer
MSBSPs. The Commission estimates
that there are 17 respondents, resulting
in an estimated industry-wide ongoing
annual cost of $34,000 for compliance
with the telephonic recording retention
provision of Rule 17a–4(b)(4).
The Commission estimates that
provisions of paragraphs (b)(1),
(b)(8)(v)–(viii) relating to security-based
swap activities and paragraphs
(b)(8)(xvi) and (b)(14) of Rule 17a–4
impose an ongoing annual cost of
approximately $600 per firm. The
Commission estimates that there are 42
respondents, resulting in an estimated
industry-wide ongoing annual cost of
$25,200.
The Commission estimates that the
provisions of paragraph (b)(1) applicable
to broker-dealer SBSDs and brokerdealer MSBSPs and paragraphs (b)(15)
and (b)(16) of Rule 17a–4 impose
ongoing annual cost of approximately
$600 per firm. The Commission
estimates that there are 17 respondents,
resulting in an estimated industry-wide
ongoing annual cost of $10,200.
VerDate Sep<11>2014
16:56 Nov 07, 2022
Jkt 259001
The Commission estimates that the
provisions of paragraph (b)(1) of Rule
17a–4 that apply only to broker-dealer
SBSDs imposes an additional ongoing
annual cost of approximately $120 per
firm to broker-dealer SBSDs. The
Commission estimates that there are 16
broker-dealer SBSDs, resulting in an
estimated industry-wide ongoing annual
cost of $1,920.
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 the 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 by
December 7, 2022 to (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: November 2, 2022.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022–24248 Filed 11–7–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96208; File No. SR–
CboeBZX–2022–052]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Extend the
Pilot Programs in Connection With the
Listing and Trading of P.M.-Settled
Series on Certain Broad-Based Index
Options
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
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 BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX Options’’)
proposes to extend the pilot programs in
connection with the listing and trading
of P.M.-settled series on certain broadbased index options. 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.
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 proposed rule change extends the
listing and trading of P.M.-settled series
on certain broad-based index options on
a pilot basis.5 Rule 29.11(a)(6) currently
November 2, 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 October
24, 2022, Cboe BZX Exchange, Inc. (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
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00089
Fmt 4703
Sfmt 4703
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 The Exchange is authorized to list for trading
options that overlie the Mini-SPX Index (‘‘XSP’’)
and the Russell 2000 Index (‘‘RUT’’). See Rule
29.11(a). See also Securities Exchange Act Release
Nos. 84480 (October 24, 2018), 83 FR 54635
(October 30, 2018) (Notice of Filing of a Proposed
Rule Change To Permit the Listing and Trading of
P.M.-Settled Series on Certain Broad-Based Index
Options on a Pilot Basis) (SR–CboeBZX–2018–066)
(‘‘Notice’’); 85181 (February 22, 2019), 84 FR 6842
(February 28, 2019) (Notice of Deemed Approval of
a Proposed Rule Change To Permit the Listing and
Trading of P.M.-Settled Series on Certain BroadBased Index Options on a Pilot Basis) (SR–
4 17
E:\FR\FM\08NON1.SGM
08NON1
]]>Agencies
[Federal Register Volume 87, Number 215 (Tuesday, November 8, 2022)]
[Notices]
[Pages 67523-67524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24248]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-198, OMB Control No. 3235-0279]
Submission for OMB Review; Comment Request; Extension: Rule 17a-4
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'') has submitted to the Office of Management
and Budget (``OMB'') a request for extension of the previously approved
collection of information provided for in Rule 17a-4 (17 CFR 240.17a-
4), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
Rule 17a-4 requires exchange members, brokers, and dealers
(``broker-dealers'') to preserve for prescribed periods of time certain
records required to be made by Rule 17a-3. In addition, Rule 17a-4
requires the preservation of records required to be made by other
Commission rules and other kinds of records which firms make or receive
in the ordinary course of business. These include, but are not limited
to, bank statements, cancelled checks, bills receivable and payable,
originals of communications, and descriptions of various transactions.
Rule 17a-4 also permits broker-dealers to employ, under certain
conditions, electronic storage media to maintain records required to be
maintained under Rules 17a-3 and 17a-4.
There are approximately 3,508 active, registered broker-dealers.
The staff estimates that the average amount of time necessary to
preserve the books and records as required by Rule 17a-4 is 254 hours
per broker-dealer per year. Additionally, the Commission estimates that
paragraph (b)(11) of Rule 17a-4 imposes an annual burden of 3 hours per
year to maintain the requisite records. The Commission estimates that
there are approximately 200 internal broker-dealer systems, resulting
in an annual recordkeeping burden of 600 hours.
The Commission also estimates that there are approximately 2,578
broker-dealers with retail customers resulting in an annual initial
burden of approximately 4,225,342 hours and an annual ongoing burden of
approximately 4,182,947 to comply with Rule 17a-4(e)(5). Moreover the
Commission estimates that these broker-dealers will incur 258 hours in
annual burden to comply with Rule 17a-4(e)(10).
Therefore, the Commission estimates that compliance with Rule 17a-4
requires 9,300,179 hours each year ((3,508 broker-dealers x 254 hours)
+ (200 broker-dealers x 3 hours) + 4,225,342 hours + 4,182,947 hours +
258 hours)). These burdens are recordkeeping burdens. The total burden
hour decrease of 678,217 hours is due to a decrease in the number of
respondents from 3,764 to 3,508.
In addition, the Commission estimates that the telephonic recording
retention provision of paragraph (b)(4) of Rule 17a-4 imposes an
initial burden on broker-dealer SBSDs and broker-dealer MSBSPs of 13
hours per firm in the first year and an ongoing burden of 6 hours per
year (including the first year). Therefore, the Commission estimates
that there are 17 respondents, resulting in an estimated industry-wide
initial burden of 221 hours in the first year and an ongoing burden of
102 hours per year (including the first year) bringing the total
industry burden estimation to 527 hours over a three-year period.
The Commission estimates that the provisions of paragraphs (b)(1),
and (b)(8)(v)-(viii) relating to security-based swap activities and
paragraphs (b)(8)(xvi) and (b)(14) of Rule 17a-4 impose an initial
burden of 65 hours per firm in the first year and an ongoing burden of
30 hours per year (including the first year). The Commission estimates
that there are 42 respondents, resulting in an estimated industry-wide
initial burden of 2,730 hours in the first year and an ongoing burden
of 1,260 hours per year (including the first year) bringing the total
industry burden estimation to 6,510 hours over a three-year period.
The Commission estimates that the provisions of paragraph (b)(1)
applicable to broker-dealer SBSDs and broker-dealer MSBSPs and
paragraphs (b)(15) and (b)(16) of Rule 17a-4 impose an initial burden
of 65 hours per firm in the first year and an ongoing burden of 30
hours per year on broker-dealer SBSDs and broker-dealer MSBSPs
(including the first year). The Commission estimates that there are 17
respondents, resulting in an estimated industry-wide initial burden of
1,105 hours in the first year and an ongoing burden of 510 hours per
year (including the first year) bringing the total industry burden
estimation to 2,635 hours over a three year period.
The Commission estimates that provisions of paragraph (b)(1) of
Rule 17a-4 that apply only to broker-dealer SBSDs impose an initial
burden of 13 hours per firm in the first year and an ongoing burden of
6 hours per year (including the first year) on broker-dealer SBSDs. The
Commission estimates that there are 16 broker-dealer SBSDs, resulting
in an estimated industry-wide initial burden of 208 hours in the first
year and an ongoing burden of 96 hours per year (including the first
year) bringing the total industry burden estimation to 496 hours over a
three year period.
[[Page 67524]]
The staff believes that compliance personnel would be charged with
ensuring compliance with Commission regulation, including Rule 17a-4.
The staff estimates that the hourly salary of a Compliance Clerk is $78
per hour. Based upon these numbers, the total internal cost of
compliance for 3,508 respondents is the dollar cost of approximately
$749 million ((891,632 yearly hours x $78) + (600 hours x $78) +
(4,225,342 hours x $78) + (4,489,218 hours x $78) + (258 hours x $78)).
Based on conversations with members of the securities industry and
the Commission's experience in the area, the staff estimates that the
average broker-dealer spends approximately $5,000 each year to store
documents required to be retained under Rule 17a-4. Costs include the
cost of physical space, computer hardware and software, etc., which
vary widely depending on the size of the broker-dealer and the type of
storage media employed. The Commission estimates that the annual
reporting and recordkeeping cost burden is $17,540,000. This cost is
calculated by the number of active, registered broker-dealers
multiplied by the reporting and recordkeeping cost for each respondent
(3,508 registered broker-dealers x $5,000).
The Commission estimates that each applicable firm incurs an
ongoing annual cost of approximately $2,000 per firm for server,
equipment, and systems development costs associated with the telephonic
recording retention requirement, which applicable to broker-dealer
SBSDs and broker-dealer MSBSPs. The Commission estimates that there are
17 respondents, resulting in an estimated industry-wide ongoing annual
cost of $34,000 for compliance with the telephonic recording retention
provision of Rule 17a-4(b)(4).
The Commission estimates that provisions of paragraphs (b)(1),
(b)(8)(v)-(viii) relating to security-based swap activities and
paragraphs (b)(8)(xvi) and (b)(14) of Rule 17a-4 impose an ongoing
annual cost of approximately $600 per firm. The Commission estimates
that there are 42 respondents, resulting in an estimated industry-wide
ongoing annual cost of $25,200.
The Commission estimates that the provisions of paragraph (b)(1)
applicable to broker-dealer SBSDs and broker-dealer MSBSPs and
paragraphs (b)(15) and (b)(16) of Rule 17a-4 impose ongoing annual cost
of approximately $600 per firm. The Commission estimates that there are
17 respondents, resulting in an estimated industry-wide ongoing annual
cost of $10,200.
The Commission estimates that the provisions of paragraph (b)(1) of
Rule 17a-4 that apply only to broker-dealer SBSDs imposes an additional
ongoing annual cost of approximately $120 per firm to broker-dealer
SBSDs. The Commission estimates that there are 16 broker-dealer SBSDs,
resulting in an estimated industry-wide ongoing annual cost of $1,920.
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 the 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 by December 7, 2022 to (i)
[email protected] and (ii) David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending
an email to: [email protected].
Dated: November 2, 2022.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-24248 Filed 11-7-22; 8:45 am]
BILLING CODE 8011-01-P
