80 FR 14426 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 53 (March 19, 2015)

Page Range		14426-14427
FR Document		2015-06313

Federal Register, Volume 80 Issue 53 (Thursday, March 19, 2015)

[Federal Register Volume 80, Number 53 (Thursday, March 19, 2015)]
[Notices]
[Pages 14426-14427]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-06313]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, Washington, DC 20549-2736.

Extension: Rule 15g-4.
    SEC File No. 270-347, OMB Control No. 3235-0393.

    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 existing collection of 
information provided for in Rule 15g-4--Disclosure of compensation to 
brokers or dealers (17 CRF 240.15g-4) under the Securities Exchange Act 
of 1934 (15 U.S.C. 78a et seq.).
    Rule 15g-4 requires brokers and dealers effecting transactions in 
penny stocks for or with customers to disclose the amount of 
compensation received by the broker-dealer in connection with the 
transaction. The purpose of the rule is to increase the level of 
disclosure to investors concerning penny stocks

[[Page 14427]]

generally and specific penny stock transactions.
    The Commission estimates that approximately 221 broker-dealers will 
spend an average of 87 hours annually to comply with this rule. Thus, 
the total compliance burden is approximately 19,245 burden-hours per 
year.
    Rule 15g-4 contains record retention requirements. Compliance with 
the rule is mandatory. The required records are available only to the 
examination staff of the Commission and the self regulatory 
organizations of which the broker-dealer is a member.
    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 background documentation for this information 
collection at the following Web site: www.reginfo.gov. Comments should 
be directed to: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 10102, New Executive Office Building, 
Washington, DC 20503 or by sending an email to: 
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or by sending an 
email to PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: March 13, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-06313 Filed 3-18-15; 8:45 am]
 BILLING CODE 8011-01-P

14426 Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices

with section 6(b)(5) of the Act,16 which regarding trading volume, market the other listing criteria under MIAX’s
requires, among other things, that the capitalization, number of index rules would continue to apply to any
Exchange’s rules be designed to promote components, and index concentration such options. In addition, the
just and equitable principles of trade, to limits.24 They do not, however, require Commission notes that the requirement
remove impediments to and perfect the the listing exchange to obtain a CSSA for MIAX to obtain a CSSA will
mechanism of a free and open market with the home country market for the continue to apply to other products that
and a national market system, and, in underlying index components.25 The do not fit this limited exception. The
general, to protect investors and the Commission stated that a CSSA with the Commission believes that the proposed
public interest. home country market was not required, rule change should facilitate listing and
MIAX proposes to eliminate the because the listing standards provided trading of additional investment options
requirement that it obtain a CSSA with for minimum levels of liquidity, for market participants seeking efficient
the applicable foreign market before concentration, and pricing transparency trading and hedging vehicles and
trading options on certain ETFs that for index components.26 In addition, the thereby, benefit investors by providing
track broad-based indexes of Commission noted that the generic them with valuable risk management
securities.17 CSSAs help to ensure that listing standards for ETFs based on tools.
the listing exchange has the ability to global or international indexes applied
obtain the information necessary to in conjunction with the other applicable IV. Conclusion
detect and deter potential trading listing requirements would ‘‘permit the It is therefore ordered, pursuant to
abuses.18 According to the Exchange, it listing only of ETFs that are sufficiently section 19(b)(2) of the Act,29 that the
believes that this proposed listing broad-based in scope to minimize proposed rule change (File No. SR–
standard for options on ETFs is potential manipulation . . . [and] are MIAX–2015–04) be, and hereby is,
reasonable for international and global designed to preclude ETFs from approved.
indexes, and, when applied in becoming surrogates for trading in For the Commission, by the Division of
conjunction with the other listing unregistered securities.’’ 27 Trading and Markets, pursuant to delegated
requirements, would result in options MIAX now seeks to establish parallel authority.30
overlying ETFs that are sufficiently listing standards for options. The Jill M. Peterson,
broad-based in scope and therefore not Commission believes that it is
Assistant Secretary.
readily susceptible to manipulation.19 consistent with the Act for the Exchange
Moreover, the Exchange believes that to list and trade options that overlie [FR Doc. 2015–06285 Filed 3–18–15; 8:45 am]
the proposed rule change would benefit ETFs, provided such ETFs are listed BILLING CODE 8011–01–P

investors by providing valuable risk pursuant to generic listing standards on
management tools.20 The NYSE Group equities exchanges for portfolio
agrees with these statements by the depositary receipts and index fund SECURITIES AND EXCHANGE
Exchange and supports the proposal.21 shares based on international or global COMMISSION
The Commission approved generic indexes under which a CSSA with a
Submission for OMB Review;
listing standards for ETFs based on foreign market is not required.28 All of
Comment Request
international or global indexes in
2006.22 At that time, the Commission 24 For example, with respect to ETFs for portfolio
Upon Written Request, Copies Available
determined that for certain ETFs based depositary receipts based on international or global
indexes, the generic listing standards generally
From: Securities and Exchange
on broad-based indexes of securities, the contain the following requirements with respect to Commission, Office of FOIA Services,
generic listing standards for equities the underlying index: (1) Component stocks that in Washington, DC 20549–2736.
exchanges need not require the the aggregate account for at least 90% of the weight
of the index or portfolio each shall have a minimum Extension: Rule 15g–4.
exchange to obtain a CSSA to list and SEC File No. 270–347, OMB Control No.
market value of at least $100 million; (2) component
trade such ETFs.23 These generic ETF stocks that in the aggregate account for at least 90% 3235–0393.
listing standards contain quantitative of the weight of the index or portfolio each shall
criteria with respect to components have a minimum worldwide monthly trading Notice is hereby given that pursuant
included in the ETF’s underlying index volume over the most recent six-month period of at to the Paperwork Reduction Act of 1995
least 250,000 shares; (3) that the index observe (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
that provide minimum thresholds certain concentration limits (e.g., that no
component may exceed 25% of the weight of the
Securities and Exchange Commission
16 15 U.S.C. 78f(b)(5). index and that the five most heavily weighted (Commission) has submitted to the
17 See Proposed MIAX Rule 402(i)(E)(2)(i). See components may not exceed 60% of the weight of Office of Management and Budget
also NYSE MKT Rule 1000, Commentary .03(a)(B); the index); (4) that there be a minimum number of (‘‘OMB’’) a request for extension of the
NYSE MKT Rule 1000A, Commentary .02(a)(B); 20 component stocks in the index; and (5) that each
NYSE Arca Equities Rule 5.2(j)(3), Commentary component either be an exchange-listed NMS stock
existing collection of information
.01(a)(B); NYSE Arca Equities Rule 8.100, or, if a non-U.S. stock, be listed and traded on an provided for in Rule 15g–4—Disclosure
Commentary .01(a)(B); NASDAQ Rule exchange that has last-sale reporting. See, e.g., of compensation to brokers or dealers
5705(a)(3)(A)(ii); NASDAQ Rule 5705(b)(3)(A)(ii); NYSE MKT Rule 1000, Commentary .03; NYSE (17 CRF 240.15g–4) under the Securities
BATS Rule 14.11(b)(3)(A)(ii); and BATS Rule Arca Equities Rule 8.100, Commentary .01;
14.11(c)(3)(A)(ii). NASDAQ Rule 5705(a); and BATS Rule 14.11(b).
Exchange Act of 1934 (15 U.S.C. 78a et
18 See Securities Exchange Act Release No. 40761 The requirements with respect to the underlying seq.).
(December 8, 1998), 63 FR 70952, 70959 (December index under the generic listing standards for index Rule 15g–4 requires brokers and
22, 1998). fund shares based on international or global indexes dealers effecting transactions in penny
19 See Notice, supra note 3. are substantially similar. See, e.g., NYSE MKT Rule
20 Id. 1000A, Commentary .02; NYSE Arca Equities Rule
stocks for or with customers to disclose
the amount of compensation received by
Rmajette on DSK2VPTVN1PROD with NOTICES

21 See NYSE Letter, supra note 4. 5.2(j)(3), Commentary .01; NASDAQ Rule 5705(b);
22 See Securities Exchange Act Release No. 54739, and BATS Rule 14.11(c). the broker-dealer in connection with the
supra note 9 (SR-Amex-2006–78). Subsequently,
25 See, e.g., Securities Exchange Act Release No.
transaction. The purpose of the rule is
other exchanges filed similar proposals that were 54739, supra note 9. to increase the level of disclosure to
26 Id. at 71 FR 66995 n.18. See also supra note
approved by the Commission. See, e.g., Securities investors concerning penny stocks
Exchange Act Release Nos. 55621, supra note 9 24 and accompanying text.
(approving SR–NYSEArca-2006–86); and 55269, 27 See Securities Exchange Act Release No. 54739,

supra note 9 (approving SR–NASDAQ–2006–050). supra note 9, at 71 FR 66997. 29 15 U.S.C. 78s(b)(2).
23 See id. 28 See supra note 24 and accompanying text. 30 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 15:18 Mar 18, 2015 Jkt 235001 PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 E:\FR\FM\19MRN1.SGM 19MRN1

Document Created: 2018-02-21 09:42:23
Document Modified: 2018-02-21 09:42:23

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 14426