Submission for OMB Review; Comment Request; Extension: Rule 17e-1, 94838-94839 [2024-27980]
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Federal Register / Vol. 89, No. 230 / Friday, November 29, 2024 / Notices
khammond on DSK9W7S144PROD with NOTICES
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 shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
submitted on or before December 20,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.73
Sherry R. Haywood,
Assistant Secretary.
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:
[FR Doc. 2024–27989 Filed 11–27–24; 8:45 am]
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–
MIAX–2024–43 on the subject line.
Submission for OMB Review;
Comment Request; Extension: Rule
17e–1
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–MIAX–2024–43. 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
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–MIAX–2024–43 and should be
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–224, OMB Control No.
3235–0217]
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 et seq.) (‘‘Paperwork
Reduction Act’’), the Securities and
Exchange Commission (the
‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information described below.
Rule 17e–1 (17 CFR 270.17e–1) under
the Investment Company Act of 1940
(15 U.S.C. 80a–1 et seq.) (the
‘‘Investment Company Act’’) deems a
remuneration as ‘‘not exceeding the
usual and customary broker’s
commission’’ for purposes of Section
17(e)(2)(A) of the Investment Company
Act (15 U.S.C. 80a–17(e)(2)(A)) if,
among other things, a registered
investment company’s (‘‘fund’s’’) board
of directors, including a majority of the
directors who are not interested persons
of the fund, has adopted procedures
reasonably designed to provide that the
remuneration to an affiliated broker is
reasonable and fair compared to that
received by other brokers in connection
with comparable transactions involving
similar securities being purchased or
sold on a securities exchange during a
comparable period of time and the
board makes and approves such changes
as it deems necessary. In addition, each
quarter, the board must determine that
all transactions effected under the rule
during the preceding quarter complied
with the established procedures
(‘‘review requirement’’). Rule 17e–1 also
requires the fund to (i) maintain
permanently in an easily accessible
73 17
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CFR 200.30–3(a)(12), (59).
Frm 00138
Fmt 4703
Sfmt 4703
place a written copy of the procedures
adopted by the board for complying
with the requirements of the rule; and
(ii) maintain for a period of six years,
the first two in an easily accessible
place, a written record of each
transaction subject to the rule, setting
forth the amount and source of the
commission, fee, or other remuneration
received; the identity of the broker; the
terms of the transaction; and the
materials used to determine that the
transactions were effected in
compliance with the procedures
adopted by the board (‘‘recordkeeping
requirement’’). The review and
recordkeeping requirements of rule 17e–
1 permit Commission staff to monitor
the reasonableness and fairness of
remuneration received by affiliated
persons of the fund. Without the
recordkeeping requirement,
Commission inspectors would have
difficulty ascertaining whether funds
were complying with rule 17e–1.
Based upon an analysis of fund filings
on Form N–CEN, approximately 1,614
funds report reliance on rule 17e–1.1
Based on staff experience and
conversations with fund representatives,
we estimate that the burden of
compliance with rule 17e–1 is
approximately 50 hours per fund per
year. This time is spent, for example,
reviewing the applicable transactions
and maintaining records. Accordingly,
we calculate the total estimated annual
internal burden of complying with the
review and recordkeeping requirements
of rule 17e–1 to be approximately
80,700 hours.2 We further estimate that,
of these:
• 60 percent (48,420 hours) are spent
by senior accountants, at an estimated
hourly wage of $266,3 for a total of
approximately $12,879,720 per year; 4
• 30 percent (24,210 hours) are spent
by in-house attorneys at an estimated
hourly wage of $511, for a total of
1 Staff estimate is based on a three-year average
of funds reporting reliance on rule 17e–1 covering
calendar years 2022–2024.
2 1,614 funds × 50 hours per fund = 80,700 hours.
3 The Commission’s estimates concerning the
allocation of burden hours and the relevant wage
rates are based on consultations with industry
representatives and on salary information for the
securities industry compiled by the Securities
Industry and Financial Markets Association; the
estimated wage figures are also based on published
rates for senior accountants and in-house attorneys,
modified to account for an 1800-hour work-year
and multiplied by 5.35 to account for bonuses, firm
size, employee benefits, and overhead, yielding
effective hourly rates of $266 and $511,
respectively; see Securities Industry and Financial
Markets Association, Report on Management &
Professional Earnings in the Securities Industry
2013.
4 48,420 hours × $266 per hour = $12,879,720.
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Federal Register / Vol. 89, No. 230 / Friday, November 29, 2024 / Notices
approximately $12,371,310 per year; 5
and
• 10 percent (8,070) are spent by the
funds’ board of directors at an hourly
cost of $4,770, for a total of
approximately $38,493,900 per year.6
Based on these estimated wage rates,
the total cost to the industry of the hour
burden for complying with the review
and recordkeeping requirements of rule
17e–1 is approximately $63,744,930.7
The Commission staff estimates that
there is no cost burden associated with
the information collection requirement
of rule 17e–1 other than this cost.
Estimates of the average burden hours
are made solely for the purposes of the
Paperwork Reduction Act and are not
derived from a comprehensive or even
a representative survey or study of the
costs of Commission rules and forms.
The collection of information under rule
17e-1 is required to obtain the benefits
of the rule. The information provided
under rule 17e-1 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.
The 30-day public comment period
for this information collection request
opens on December 2, 2024 and ends on
December 30, 2024. View the full
information request and submit
comments at https://www.reginfo.gov/
public/do/PRAViewICR?ref_
nbr=202409-3235-009 or email
comments to MBX.OMB.OIRA.SEC_
desk_officer@omb.eop.gov.
Dated: November 22, 2024.
Sherry R. Haywood,
Assistant Secretary.
khammond on DSK9W7S144PROD with NOTICES
BILLING CODE 8011–01–P
hours × $511 per hour = $12,371,310.
hours × $4,770 per hour = $38,493,900;
the estimate for the cost of board time as a whole
is derived from estimates made by the staff
regarding typical board size and compensation that
is based on information received from fund
representatives and publicly available sources.
7 $12,879,720 + $12,371,310 + $38,493,900 =
$63,744,930.
6 8,070
VerDate Sep<11>2014
21:22 Nov 27, 2024
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[Release No. 34–101713; File No. SR–
NYSEARCA–2024–101]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To List and Trade Option
Contracts on the Grayscale Fund, the
Grayscale Bitcoin Mini Trust BTC, and
the Bitwise Bitcoin ETF
November 22, 2024.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 20, 2024, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. 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 list and
trade option contracts on the Grayscale
Fund, (BTC), the Grayscale Bitcoin Mini
Trust BTC, and the Bitwise Bitcoin ETF.
The proposed rule change is available
on the Exchange’s website at
www.nyse.com, at the principal office of
the Exchange, 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
[FR Doc. 2024–27980 Filed 11–27–24; 8:45 am]
5 24,210
SECURITIES AND EXCHANGE
COMMISSION
In its filing with the Commission, the
self-regulatory organization 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 those 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
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00139
Fmt 4703
Sfmt 4703
94839
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 5.3–O (Criteria for Underlying
Securities), Rule 5.4–O (Withdrawal of
Approval of Underlying Securities),
Rule 5.32–O (Terms of FLEX Options),
and Rule 6.8–O (Position Limits),) to
allow the Exchange to list and trade
options on the following exchangetraded products: the Grayscale Bitcoin
Trust (BTC) (the ‘‘Grayscale Fund’’ or
‘‘GBTC’’), the Grayscale Bitcoin Mini
Trust BTC (the ‘‘Grayscale Mini Fund’’
or ‘‘BTC’’), and the Bitwise Bitcoin ETF
(the ‘‘Bitwise Fund’’ or ‘‘BITB’’ and,
collectively, the ‘‘Bitcoin Funds’’ or
‘‘Funds’’).4 This proposal would align
the Exchange’s rules with that of its
affiliated exchange, NYSE American
LLC.5 As such this proposal does not
raise any new or novel issues not
previously considered by the
Commission.
As discussed herein, the Exchange
believes options on the Bitcoin Funds
would permit hedging, and allow for
more liquidity, better price efficiency,
and less volatility with respect to the
underlying Funds. Further, permitting
the listing of such options would
enhance the transparency and efficiency
of markets in these and correlated
products.
Rule 5.3–O provides that, subject to
certain other criteria set forth in the
Rule,6 securities deemed appropriate for
4 See proposed Rule 5–3–O, Commentary .010.
On January 11, 2024, GBTC and BITB began trading
on the Exchange after the Commission approved
rule changes to list and trade shares of ‘‘BitcoinBased Commodity-Based Trust Shares’’ pursuant to
Rule 8.201–E(c)(1) (Commodity-Based Trust
Shares), including GBTC and BITB. See Securities
Exchange Act Release No. 99306 (January 10, 2024)
(Order Granting Accelerated Approval of Proposed
Rule Changes, as Modified by Amendments
Thereto, to List and Trade Bitcoin-Based
Commodity-Based Trust Shares and Trust Units), 89
FR 3008 (January 17, 2024) (SR–NYSEARCA–2023–
44; SR–NYSEARCA–2021–90).
On July 13, 2024, after receiving approval of the
Commission, BTC began trading on the Exchange.
See Securities Exchange Act Release No. 100610
(July 26, 2024) (Order Granting Approval of
Proposed Rule Changes, as Modified by
Amendment No. 1, to List and Trade Share of BTC
pursuant to NYSE Arca Rule 8.201–E (CommodityBased Trust Shares)), 89 FR 62821 (August 1, 2024)
(SR–NYSEARCA–2023–45).
5 See Securities Exchange Act Release No. 101386
(October 18, 2024), 89 FR 84960 (October 24, 2024)
(SR–NYSEAMER–2024–49) (Order approving the
listing and trading of options on the Bitcoin Funds)
(the ‘‘American Bitcoin Options Approval Order’’).
See also NYSE American Rule 915, Commentary
.10(a).
6 To be eligible for options trading, ETFs and
ETPs must satisfy the initial listing criteria set forth
in Rule 5.3–O(g)(1) through (2).
E:\FR\FM\29NON1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 230 (Friday, November 29, 2024)]
[Notices]
[Pages 94838-94839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27980]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-224, OMB Control No. 3235-0217]
Submission for OMB Review; Comment Request; Extension: Rule 17e-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 et seq.) (``Paperwork Reduction Act''), the
Securities and Exchange Commission (the ``Commission'') has submitted
to the Office of Management and Budget (``OMB'') a request for
extension of the previously approved collection of information
described below.
Rule 17e-1 (17 CFR 270.17e-1) under the Investment Company Act of
1940 (15 U.S.C. 80a-1 et seq.) (the ``Investment Company Act'') deems a
remuneration as ``not exceeding the usual and customary broker's
commission'' for purposes of Section 17(e)(2)(A) of the Investment
Company Act (15 U.S.C. 80a-17(e)(2)(A)) if, among other things, a
registered investment company's (``fund's'') board of directors,
including a majority of the directors who are not interested persons of
the fund, has adopted procedures reasonably designed to provide that
the remuneration to an affiliated broker is reasonable and fair
compared to that received by other brokers in connection with
comparable transactions involving similar securities being purchased or
sold on a securities exchange during a comparable period of time and
the board makes and approves such changes as it deems necessary. In
addition, each quarter, the board must determine that all transactions
effected under the rule during the preceding quarter complied with the
established procedures (``review requirement''). Rule 17e-1 also
requires the fund to (i) maintain permanently in an easily accessible
place a written copy of the procedures adopted by the board for
complying with the requirements of the rule; and (ii) maintain for a
period of six years, the first two in an easily accessible place, a
written record of each transaction subject to the rule, setting forth
the amount and source of the commission, fee, or other remuneration
received; the identity of the broker; the terms of the transaction; and
the materials used to determine that the transactions were effected in
compliance with the procedures adopted by the board (``recordkeeping
requirement''). The review and recordkeeping requirements of rule 17e-1
permit Commission staff to monitor the reasonableness and fairness of
remuneration received by affiliated persons of the fund. Without the
recordkeeping requirement, Commission inspectors would have difficulty
ascertaining whether funds were complying with rule 17e-1.
Based upon an analysis of fund filings on Form N-CEN, approximately
1,614 funds report reliance on rule 17e-1.\1\ Based on staff experience
and conversations with fund representatives, we estimate that the
burden of compliance with rule 17e-1 is approximately 50 hours per fund
per year. This time is spent, for example, reviewing the applicable
transactions and maintaining records. Accordingly, we calculate the
total estimated annual internal burden of complying with the review and
recordkeeping requirements of rule 17e-1 to be approximately 80,700
hours.\2\ We further estimate that, of these:
---------------------------------------------------------------------------
\1\ Staff estimate is based on a three-year average of funds
reporting reliance on rule 17e-1 covering calendar years 2022-2024.
\2\ 1,614 funds x 50 hours per fund = 80,700 hours.
---------------------------------------------------------------------------
60 percent (48,420 hours) are spent by senior accountants,
at an estimated hourly wage of $266,\3\ for a total of approximately
$12,879,720 per year; \4\
---------------------------------------------------------------------------
\3\ The Commission's estimates concerning the allocation of
burden hours and the relevant wage rates are based on consultations
with industry representatives and on salary information for the
securities industry compiled by the Securities Industry and
Financial Markets Association; the estimated wage figures are also
based on published rates for senior accountants and in-house
attorneys, modified to account for an 1800-hour work-year and
multiplied by 5.35 to account for bonuses, firm size, employee
benefits, and overhead, yielding effective hourly rates of $266 and
$511, respectively; see Securities Industry and Financial Markets
Association, Report on Management & Professional Earnings in the
Securities Industry 2013.
\4\ 48,420 hours x $266 per hour = $12,879,720.
---------------------------------------------------------------------------
30 percent (24,210 hours) are spent by in-house attorneys
at an estimated hourly wage of $511, for a total of
[[Page 94839]]
approximately $12,371,310 per year; \5\ and
---------------------------------------------------------------------------
\5\ 24,210 hours x $511 per hour = $12,371,310.
---------------------------------------------------------------------------
10 percent (8,070) are spent by the funds' board of
directors at an hourly cost of $4,770, for a total of approximately
$38,493,900 per year.\6\
---------------------------------------------------------------------------
\6\ 8,070 hours x $4,770 per hour = $38,493,900; the estimate
for the cost of board time as a whole is derived from estimates made
by the staff regarding typical board size and compensation that is
based on information received from fund representatives and publicly
available sources.
---------------------------------------------------------------------------
Based on these estimated wage rates, the total cost to the industry
of the hour burden for complying with the review and recordkeeping
requirements of rule 17e-1 is approximately $63,744,930.\7\ The
Commission staff estimates that there is no cost burden associated with
the information collection requirement of rule 17e-1 other than this
cost.
---------------------------------------------------------------------------
\7\ $12,879,720 + $12,371,310 + $38,493,900 = $63,744,930.
---------------------------------------------------------------------------
Estimates of the average burden hours are made solely for the
purposes of the Paperwork Reduction Act and are not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules and forms. The collection of information under rule
17e-1 is required to obtain the benefits of the rule. The information
provided under rule 17e-1 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.
The 30-day public comment period for this information collection
request opens on December 2, 2024 and ends on December 30, 2024. View
the full information request and submit comments at https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202409-3235-009 or email
comments to [email protected].
Dated: November 22, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-27980 Filed 11-27-24; 8:45 am]
BILLING CODE 8011-01-P
