Sunshine Act Meetings, 52523-52524 [2024-13886]
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Federal Register / Vol. 89, No. 121 / Monday, June 24, 2024 / Notices
lotter on DSK11XQN23PROD with NOTICES1
Data. Further, the proposed discount is
intended to promote increased use of
the Exchange’s historical Open-Close
Data by defraying some of the costs a
purchaser would ordinarily have to
expend before using the data product.
The Exchange believes that the
proposed discount is equitable and not
unfairly discriminatory because it will
apply equally to all Members and nonMembers who purchase historical OpenClose Data. Lastly, the purchase of this
data product is discretionary and not
compulsory. Indeed, no market
participant is required to purchase the
historical Open-Close Data, and the
Exchange is not required to make the
historical Open-Close Data available to
all investors. Potential purchasers may
request the data at any time if they
believe it to be valuable or may decline
to purchase such data. As noted above,
the Exchange previously adopted a
similar discount program last year.13
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange operates in a highly
competitive environment in which the
Exchange must continually adjust its
fees to remain competitive. Because
competitors are free to modify their own
fees in response, the Exchange believes
that the degree to which fee changes in
this market may impose any burden on
competition is extremely limited. As
discussed above, Open-Close Data is
subject to direct competition from
several other options exchanges that
offer substitutes to Open-Close Data.
Moreover, purchase of Open-Close Data
is optional. It is designed to help
investors understand underlying market
trends to improve the quality of
investment decisions, but is not
necessary to execute a trade.
The proposed rule changes are
grounded in the Exchange’s efforts to
compete more effectively. In this
competitive environment, potential
purchasers are free to choose which, if
any, similar product to purchase to
satisfy their need for market
information. As a result, the Exchange
believes this proposed rule change
permits fair competition among national
securities exchanges. Further, the
Exchange believes that these changes
will not cause any unnecessary or
inappropriate burden on intermarket
13 See Securities Exchange Act Release No. 99026
(November 28, 2023), 88 FR 84023 (December 1,
2023) (SR–CboeEDGX–2023–070).
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competition, as the proposed incentive
program applies uniformly to any
purchaser of historical Open-Close Data.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on 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 14 and paragraph (f) of Rule
19b–4 15 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. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
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:
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–
CboeEDGX–2024–033 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–CboeEDGX–2024–033. 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
14 15
15 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
Frm 00091
Fmt 4703
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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–CboeEDGX–2024–033 and should be
submitted on or before July 15, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–13706 Filed 6–21–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
2:00 p.m. on Thursday,
June 27, 2024.
PLACE: The meeting will be held via
remote means and/or at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
In the event that the time, date, or
location of this meeting changes, an
announcement of the change, along with
the new time, date, and/or place of the
meeting will be posted on the
Commission’s website at https://
www.sec.gov.
TIME AND DATE:
16 17
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CFR 200.30–3(a)(12).
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52524
Federal Register / Vol. 89, No. 121 / Monday, June 24, 2024 / Notices
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matter of the closed
meeting will consist of the following
topics:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Resolution of litigation claims; and
Other matters relating to examinations
and enforcement proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting agenda items that
may consist of adjudicatory,
examination, litigation, or regulatory
matters.
CONTACT PERSON FOR MORE INFORMATION:
For further information, please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Authority: 5 U.S.C. 552b.
Dated: June 20, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–13886 Filed 6–20–24; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–233, OMB Control No.
3235–0223]
lotter on DSK11XQN23PROD with NOTICES1
Proposed Collection; Comment
Request; Extension: Rule 17f–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
(44 U.S.C. 350l et seq.), the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection 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 17f–2 (17 CFR 270.17f–2),
entitled ‘‘Custody of Investments by
Registered Management Investment
Company,’’ establishes safeguards for
arrangements in which a registered
management investment company or
business development company
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(‘‘fund’’) is deemed to maintain custody
of its own assets, such as when the fund
maintains its assets in a facility that
provides safekeeping but not custodial
services.1 The rule includes four
distinct requirements that are an
information collection under the
Paperwork Reduction Act. First, fund’s
directors must prepare a resolution
designating not more than five fund
officers or responsible employees who
may have access to the fund’s assets.
Secondly, the fund’s board must vote to
approve this resolution. Third, the
designated access persons (two or more
of whom must act jointly when
handling fund assets) must prepare a
written notation providing certain
information about each deposit or
withdrawal of fund assets and must
transmit the notation to another officer
or director designated by the directors.
Lastly, an independent public
accountant must verify the fund’s assets
three times each year, and two of those
examinations must be unscheduled.2
Rule 17f–2’s requirements are
designed to safeguard fund assets from
loss by requiring certain specific
controls when those assets are not
placed and maintained in the custody of
a bank or other custodian as permitted
under section 17(f) of the Investment
Company Act of 1940 (15 U.S.C. 80a17(f)) (‘‘Act’’) and the rules thereunder.
Specifically, the requirement that
directors designate access persons is
intended to ensure that directors
evaluate the trustworthiness of insiders
who handle fund assets. The
requirements that access persons act
jointly in handling fund assets, prepare
a written notation of each transaction,
and transmit the notation to another
designated person are intended to
reduce the risk of misappropriation of
fund assets by access persons, and to
ensure that adequate records are
prepared, reviewed by a responsible
third person, and available for
examination by the Commission. The
requirement that auditors verify fund
assets without notice twice each year is
intended to provide an additional
deterrent to the misappropriation of
fund assets and to detect any
1 The rule generally requires all assets to be
deposited in the safekeeping of a ‘‘bank or other
company whose functions and physical facilities
are supervised by Federal or State authority.’’
2 The accountant must transmit to the
Commission promptly after each examination a
certificate describing the examination on Form N–
17f–2; the preparation and filing of Form N–17f–2,
which largely serves as a cover-sheet for the
accountant’s certification of their audit, is covered
by a separate information collection; the third
(scheduled) examination may coincide with the
annual verification required for every fund by
section 30(g) of the Act (15 U.S.C. 80a–29(g)).
PO 00000
Frm 00092
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irregularities. Less frequent
examinations by a fund’s accountants
could impair the ability of the
Commission’s examination staff to
ascertain the fund’s compliance with
the rule.
The Commission staff estimates that
each fund makes 974 responses and
spends an average of 252 hours annually
in complying with the rule’s
requirements.3 Commission staff
estimates that on an annual basis it
takes: (i) 0.5 hours of fund accounting
personnel at a total cost of $126 and 1
hour of fund attorney personnel time at
a cost of $484, for a total of 1.5 hours
and a cost of $610 to draft director
resolutions; 4 (ii) 0.5 hours of the fund’s
board of directors at a total cost of
$2,385 to adopt the resolution; 5 (iii) 244
hours for the fund’s accounting
personnel at a total cost of $81,086 to
prepare written notations of
transactions; 6 and (iv) 3 hours for the
fund’s controller or administrator at a
total cost of $1,704 to assist the
independent public accountants when
they perform verifications of fund
assets.7 The total of these four
requirements would then be 249 hours
at a cost of $84,081 per respondent.8
Commission staff estimates that
approximately 165 funds file Form N–
17f–2 each year.9 Thus, the total annual
3 The 974 responses are: 1 (one) response to draft
and adopt the resolution and 973 notations;
estimates of the number of hours are based on
conversations with individuals in the fund
industry; the actual number of hours may vary
significantly depending on individual fund assets.
4 The estimate relating to fund accounting
personnel is based on the following calculation: 0.5
(burden hours per fund) × $252 (senior accountant’s
hourly rate) = approximately $126; unless otherwise
indicated, the hourly wage figures used herein are
from the Securities Industry and Financial Markets
Association’s Management & Professional Earnings
in the Securities Industry 2013, modified by
Commission staff to account for an 1800-hour workyear and inflation, and multiplied by 5.35 to
account for bonuses, firm size, employee benefits
and overhead.
5 The staff has estimated the average cost of board
of director time as $4,770 per hour, which was last
adjusted for inflation through 2019; this is a
combined cost for the entire board and assumes as
average of 9 board members per board..
6 Respondents estimated that each fund makes
973 responses on an annual basis and spends a total
of 0.25 hours per response; the staff assumes that
the fund personnel involved are Accounts Payable
Manager ($237 hourly rate), Senior Operations
Manager ($425 hourly rate) and General Accounting
Manager ($337 hourly rate); the blended average
hourly rate of these personnel is $333 ($333 = (237
+ 425 + 337)/3); the total estimated cost of
preparing notations is based on the following
calculation: 974 × 0.25 × $333 = $81,086.
7 This estimate is based on the following
calculation: 3 × $568 (fund controller’s hourly rate)
= $1704.
8 249 = 0.5 + 1 + 0.5 + 3 + 244; $84,081 = 126
+ 484 + $2,385 + 81,086 + 1,704.
9 On average, each year approximately 165 funds
filed Form N–17f–2 with the Commission during
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Agencies
[Federal Register Volume 89, Number 121 (Monday, June 24, 2024)]
[Notices]
[Pages 52523-52524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13886]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings
TIME AND DATE: 2:00 p.m. on Thursday, June 27, 2024.
PLACE: The meeting will be held via remote means and/or at the
Commission's headquarters, 100 F Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to the public.
MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners,
the Secretary to the Commission, and recording secretaries will attend
the closed meeting. Certain staff members who have an interest in the
matters also may be present.
In the event that the time, date, or location of this meeting
changes, an announcement of the change, along with the new time, date,
and/or place of the meeting will be posted on the Commission's website
at https://www.sec.gov.
[[Page 52524]]
The General Counsel of the Commission, or her designee, has
certified that, in her opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10),
permit consideration of the scheduled matters at the closed meeting.
The subject matter of the closed meeting will consist of the
following topics:
Institution and settlement of injunctive actions;
Institution and settlement of administrative proceedings;
Resolution of litigation claims; and
Other matters relating to examinations and enforcement proceedings.
At times, changes in Commission priorities require alterations in
the scheduling of meeting agenda items that may consist of
adjudicatory, examination, litigation, or regulatory matters.
CONTACT PERSON FOR MORE INFORMATION: For further information, please
contact Vanessa A. Countryman from the Office of the Secretary at (202)
551-5400.
Authority: 5 U.S.C. 552b.
Dated: June 20, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-13886 Filed 6-20-24; 11:15 am]
BILLING CODE 8011-01-P