80 FR 17526 - Proposed Collection; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 62 (April 1, 2015)
Federal Register Volume 80, Issue 62 (April 1, 2015)
| Page Range | 17526-17528 | |
| FR Document | 2015-07462 |
[Federal Register Volume 80, Number 62 (Wednesday, April 1, 2015)] [Notices] [Pages 17526-17528] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-07462] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270-237, OMB Control No. 3235-0226] Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange [[Page 17527]] Commission, Office of FOIA Services, 100 F Street, NE., Washington, DC 20549-2736. Extension: Rule 10f-3 Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange Commission (``Commission'') is soliciting comments on the collections of information discussed below. The Commission plans to submit these existing collections of information to the Office of Management and Budget (``OMB'') for extension and approval. Section 10(f) of the Investment Company Act of 1940 (15 U.S.C. 80a) (the ``Act'') prohibits a registered investment company (``fund'') from purchasing any security during an underwriting or selling syndicate if the fund has certain relationships with a principal underwriter for the security.\1\ Congress enacted this provision in 1940 to protect funds and their shareholders by preventing underwriters from ``dumping'' unmarketable securities on affiliated funds. --------------------------------------------------------------------------- \1\ 15 U.S.C. 80a-10(f). --------------------------------------------------------------------------- Rule 10f-3 permits a fund to engage in a securities transaction that otherwise would violate section 10(f) if, among other things: (i) Each transaction effected under the rule is reported on Form N-SAR; (ii) the fund's directors have approved procedures for purchases made in reliance on the rule, regularly review fund purchases to determine whether they comply with these procedures, and approve necessary changes to the procedures; and (iii) a written record of each transaction effected under the rule is maintained for six years, the first two of which in an easily accessible place.\2\ The written record must state: (i) From whom the securities were acquired; (ii) the identity of the underwriting syndicate's members; (iii) the terms of the transactions; and (iv) the information or materials on which the fund's board of directors has determined that the purchases were made in compliance with procedures established by the board. --------------------------------------------------------------------------- \2\ 17 CFR 270.10f-3. --------------------------------------------------------------------------- Rule 10f-3 also conditionally allows managed portions of fund portfolios to purchase securities offered in otherwise off-limits primary offerings. To qualify for this exemption, rule 10f-3 requires that the subadviser that is advising the purchaser be contractually prohibited from providing investment advice to any other portion of the fund's portfolio and consulting with any other of the fund's advisers that is a principal underwriter or affiliated person of a principal underwriter concerning the fund's securities transactions. These requirements provide a mechanism for fund boards to oversee compliance with the rule. The required recordkeeping facilitates the Commission staff's review of rule 10f-3 transactions during routine fund inspections and, when necessary, in connection with enforcement actions. The staff estimates that approximately 270 funds engage in a total of approximately 3,350 rule 10f-3 transactions each year.\3\ Rule 10f-3 requires that the purchasing fund create a written record of each transaction that includes, among other things, from whom the securities were purchased and the terms of the transaction. The staff estimates \4\ that it takes an average fund approximately 30 minutes per transaction and approximately 1,675 hours \5\ in the aggregate to comply with this portion of the rule. --------------------------------------------------------------------------- \3\ These estimates are based on staff extrapolations from filings with the Commission. \4\ Unless stated otherwise, the information collection burden estimates are based on conversations between the staff and representatives of funds. \5\ This estimate is based on the following calculation: (0.5 hours x 3,350 = 1,675 hours). --------------------------------------------------------------------------- The funds also must maintain and preserve these transactional records in accordance with the rule's recordkeeping requirement, and the staff estimates that it takes a fund approximately 20 minutes per transaction and that annually, in the aggregate, funds spend approximately 1,117 hours \6\ to comply with this portion of the rule. --------------------------------------------------------------------------- \6\ This estimate is based on the following calculations: (20 minutes x 3,350 transactions = 67,000 minutes; 67,000 minutes/60 = 1,117 hours). --------------------------------------------------------------------------- In addition, fund boards must, no less than quarterly, examine each of these transactions to ensure that they comply with the fund's policies and procedures. The information or materials upon which the board relied to come to this determination also must be maintained and the staff estimates that it takes a fund 1 hour per quarter and, in the aggregate, approximately 1,080 hours \7\ annually to comply with this rule requirement. --------------------------------------------------------------------------- \7\ This estimate is based on the following calculation: (1 hour per quarter x 4 quarters x 270 funds = 1,080 hours). --------------------------------------------------------------------------- The staff estimates that reviewing and revising as needed written procedures for rule 10f-3 transactions takes, on average for each fund, two hours of a compliance attorney's time per year.\8\ Thus, annually, in the aggregate, the staff estimates that funds spend a total of approximately 540 hours \9\ on monitoring and revising rule 10f-3 procedures. --------------------------------------------------------------------------- \8\ These averages take into account the fact that in most years, fund attorneys and boards spend little or no time modifying procedures and in other years, they spend significant time doing so. \9\ This estimate is based on the following calculation: (270 funds x 2 hours = 540 hours). --------------------------------------------------------------------------- Based on an analysis of fund filings, the staff estimates that approximately 251 fund portfolios enter into subadvisory agreements each year.\10\ Based on discussions with industry representatives, the staff estimates that it will require approximately 3 attorney hours to draft and execute additional clauses in new subadvisory contracts in order for funds and subadvisers to be able to rely on the exemptions in rule 10f-3. Because these additional clauses are identical to the clauses that a fund would need to insert in their subadvisory contracts to rely on rules 12d3-1, 17a-10, and 17e-1, and because we believe that funds that use one such rule generally use all of these rules, we apportion this 3 hour time burden equally to all four rules. Therefore, we estimate that the burden allocated to rule 10f-3 for this contract change would be 0.75 hours.\11\ Assuming that all 251 funds that enter into new subadvisory contracts each year make the modification to their contract required by the rule, we estimate that the rule's contract modification requirement will result in 188 burden hours annually.\12\ --------------------------------------------------------------------------- \10\ Based on information in Commission filings, we estimate that 38 percent of funds are advised by subadvisers. \11\ This estimate is based on the following calculation (3 hours / 4 rules = .75 hours). \12\ These estimates are based on the following calculations: (0.75 hours x 251 portfolios = 188 burden hours). --------------------------------------------------------------------------- The staff estimates, therefore, that rule 10f-3 imposes an information collection burden of 4,060 hours.\13\ This estimate does not include the time spent filing transaction reports on Form N-SAR, which is encompassed in the information collection burden estimate for that form. --------------------------------------------------------------------------- \13\ This estimate is based on the following calculation: (1,675 hours + 1,117 hours + 1,080 hours + 188 hours = 4,060 total burden hours). --------------------------------------------------------------------------- Written comments are invited on: (a) Whether the collections of information are necessary for the proper performance of the functions of the Commission, including whether the information has practical utility; (b) the accuracy of the Commission's estimate of the burdens of the collections of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burdens of the collections of information on respondents, including through the use of automated collection techniques or other forms of [[Page 17528]] information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Please direct your written comments to Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email to: PRA_Mailbox@sec.gov. Dated: March 27, 2015. Brent J. Fields, Secretary. [FR Doc. 2015-07462 Filed 3-31-15; 8:45 am] BILLING CODE 8011-01-P
![17526 Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices
Act.5 The revisions to Rules 80202.A.B. are properly filed under Section Paper Comments
and 80202.B.B. and to Appendix 1 to 19(b)(3)(A) 8 and Rule 19b–4(f)(4)(ii) 9 • Send paper comments in triplicate
Rule 802 will conform CME’s practice thereunder. to Secretary, Securities and Exchange
for listing indices for cleared CDX Index Commission, 100 F Street NE.,
B. Self-Regulatory Organization’s
Untranched CDS Contracts to its Washington, DC 20549–1090.
Statement on Burden on Competition
existing practice for listing indices for
CME does not believe that the All submissions should refer to File
cleared iTraxx Europe Index
proposed rule change will have any Number SR–CME–2015–010. This file
Untranched CDS Contracts. These
impact, or impose any burden, on number should be included on the
amendments would provide market
competition. The proposed amendments subject line if email is used. To help the
participants with a consistent format for
would simply provide market Commission process and review your
identifying product eligibility
participants with a consistent format for comments more efficiently, please use
requirements and should therefore be
seen to be designed to promote the identifying product eligibility only one method. The Commission will
prompt and accurate clearance and requirements. Further, the changes are post all comments on the Commission’s
settlement of securities transactions limited to CME’s futures and swaps Internet Web site (http://www.sec.gov/
and, to the extent applicable, derivatives clearing businesses and, as such, do not rules/sro.shtml). Copies of the
agreements, contracts, and transactions, affect the security-based swap clearing submission, all subsequent
to assure the safeguarding of securities activities of CME in any way and amendments, all written statements
and funds which are in the custody or therefore do not impose any burden on with respect to the proposed rule
control of the clearing agency or for competition that is inappropriate in change that are filed with the
which it is responsible, and, in general, furtherance of the purposes of the Act. Commission, and all written
to protect investors and the public communications relating to the
C. Self-Regulatory Organization’s proposed rule change between the
interest consistent with Section Statement on Comments on the
17A(b)(3)(F) of the Exchange Act.6 Commission and any person, other than
Proposed Rule Change Received From those that may be withheld from the
Furthermore, the proposed rule Members, Participants, or Others
change is limited to CME’s futures and public in accordance with the
swaps clearing businesses, which mean CME has not solicited, and does not provisions of 5 U.S.C. 552, will be
they are limited in their effect to intend to solicit, comments regarding available for Web site viewing and
products that are under the exclusive this proposed rule change. CME has not printing in the Commission’s Public
jurisdiction of the CFTC. As such, the received any unsolicited written Reference Room, 100 F Street NE.,
changes are limited to CME’s activities comments from interested parties. Washington, DC 20549, on official
as a DCO clearing futures that are not III. Date of Effectiveness of the business days between the hours of 10
security futures and swaps that are not Proposed Rule Change and Timing for a.m. and 3 p.m. Copies of such filing
security-based swaps. CME notes that Commission Action also will be available for inspection and
the policies of the CFTC with respect to copying at the principal office of CME
administering the Commodity Exchange The foregoing rule change has become and on CME’s Web site at http://
Act are comparable to a number of the effective upon filing pursuant to Section www.cmegroup.com/market-regulation/
policies underlying the Exchange Act, 19(b)(3)(A) 10 of the Act and Rule 19b– rule-filings.html.
4(f)(4)(ii) 11 thereunder. At any time All comments received will be posted
such as promoting market transparency
within 60 days of the filing of the without change; the Commission does
for over-the-counter derivatives markets,
proposed rule change, the Commission not edit personal identifying
promoting the prompt and accurate
summarily may temporarily suspend information from submissions. You
clearance of transactions and protecting
such rule change if it appears to the should submit only information that
investors and the public interest.
Because the proposed rule change is Commission that such action is you wish to make available publicly.
limited in their effect to CME’s futures necessary or appropriate in the public All submissions should refer to File
and swaps clearing businesses, the interest, for the protection of investors, Number SR–CME–2015–010 and should
or otherwise in furtherance of the be submitted on or before April 22,
proposed rule change is properly
purposes of the Act. 2015.
classified as effecting a change in an
existing service of CME that: IV. Solicitation of Comments For the Commission, by the Division of
(a) Primarily affects the clearing Interested persons are invited to Trading and Markets, pursuant to delegated
operations of CME with respect to submit written data, views and
authority.12
products that are not securities, arguments concerning the foregoing, Brent J. Fields,
including futures that are not security including whether the proposed rule Secretary.
futures, swaps that are not security- change is consistent with the Act. [FR Doc. 2015–07365 Filed 3–31–15; 8:45 am]
based swaps or mixed swaps; and Comments may be submitted by any of BILLING CODE 8011–01–P
forwards that are not security forwards; the following methods:
and
(b) does not significantly affect any Electronic Comments SECURITIES AND EXCHANGE
securities clearing operations of CME or • Use the Commission’s Internet COMMISSION
any rights or obligations of CME with comment form (http://www.sec.gov/
respect to securities clearing or persons [SEC File No. 270–237, OMB Control No.
rules/sro.shtml), or 3235–0226]
mstockstill on DSK4VPTVN1PROD with NOTICES
using such securities-clearing service. • Send an email to rule-comments@
As such, the changes are therefore sec.gov. Please include File No. SR– Proposed Collection; Comment
consistent with the requirements of CME–2015–010 on the subject line. Request
Section 17A of the Exchange Act 7 and
8 15 U.S.C. 78s(b)(3)(A). Upon Written Request, Copies Available
5 15 U.S.C. 78q–1. 9 17 CFR 240.19b–4(f)(4)(ii). From: Securities and Exchange
6 15 U.S.C. 78q–1(b)(3)(F). 10 15 U.S.C. 78s(b)(3)(A).
7 15 U.S.C. 78q–1. 11 17 CFR 240.19b–4(f)(4)(ii). 12 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 18:37 Mar 31, 2015 Jkt 235001 PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 E:\FR\FM\01APN1.SGM 01APN1](https://thefederalregister.org/doc/80_FR_17588/page/1.svg)
![17528 Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices
information technology. Consideration and outreach efforts, and target areas Dated: March 27, 2015.
will be given to comments and where additional program efforts are Brent J. Fields,
suggestions submitted in writing within necessary. Secretary.
60 days of this publication. Information will be collected in the [FR Doc. 2015–07464 Filed 3–31–15; 8:45 am]
Please direct your written comments System via web-based, e-filed, dynamic BILLING CODE 8011–01–P
to Pamela Dyson, Director/Chief form-based technology. The company
Information Officer, Securities and point of contact will complete a profile
Exchange Commission, c/o Remi Pavlik- consisting of basic contact data and SECURITIES AND EXCHANGE
Simon, 100 F Street NE., Washington, information on the capabilities of the COMMISSION
DC 20549; or send an email to: PRA_ business. The profile will include a [Release No. 34–74590; File No. SR–CBOE–
Mailbox@sec.gov. series of questions, some of which are 2015–029]
Dated: March 27, 2015. based on the data that the individual
Brent J. Fields, enters. Drop-down lists will be included Self-Regulatory Organizations;
Secretary. where appropriate to increase ease of Chicago Board Options Exchange,
[FR Doc. 2015–07462 Filed 3–31–15; 8:45 am]
use. Incorporated; Notice of Filing of a
The information collection is Proposed Rule Change Relating to
BILLING CODE 8011–01–P
voluntary. The System is scheduled to Stock-Option Order Handling
be released in May 2015. There are no March 26, 2015.
SECURITIES AND EXCHANGE costs associated with this collection. Pursuant to Section 19(b)(1) of the
COMMISSION The public interface to the System will Securities Exchange Act of 1934 (the
be available via a web-link provided by ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Submission for OMB Review; the agency. notice is hereby given that on March 16,
Comment Request Estimated number of annual 2014, Chicago Board Options Exchange,
Upon Written Request Copies Available responses = 500 Incorporated (the ‘‘Exchange’’ or
From: U.S. Securities and Exchange Estimated annual reporting burden = ‘‘CBOE’’) filed with the Securities and
Commission, Office of FOIA Services, 250 hours (30 minutes per submission) Exchange Commission (the
100 F Street NE., Washington, DC On January 27, 2015, the Commission ‘‘Commission’’) the proposed rule
20549–2736. published a 60-day notice in the Federal change as described in Items I, II, and
New Information Collection: Register (80 FR 4320) requesting public III below, which Items have been
Supplier Diversity Business Management comment on the proposed collection of prepared by the Exchange. The
System; SEC File No. 270–663, OMB information. The Commission received Commission is publishing this notice to
Control No. 3235–XXXX. no comments. solicit comments on the proposed rule
Written comments continue to be change from interested persons.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995 invited on: (a) Whether this collection of I. Self-Regulatory Organization’s
(44 U.S.C. 3501 et seq.), the Securities information is necessary for the proper Statement of the Terms of Substance of
and Exchange Commission performance of the functions of the the Proposed Rule Change
(‘‘Commission’’) has submitted to the agency, including whether the
The Exchange proposes to amend its
Office of Management and Budget a information will have practical utility;
rules regarding the handling and
request to approve the collection of (b) the accuracy of the agency’s estimate
processing of stock-option orders on the
information discussed below. of the burden imposed by the collection
Exchange. The text of the proposed rule
The Commission is required under of information; (c) ways to enhance the
change is available on the Exchange’s
Section 342 of the Dodd Frank Wall quality, utility, and clarity of the
Web site (http://www.cboe.com/
Street and Reform Act to develop information collected; and (d) ways to
AboutCBOE/
standards and procedures for ensuring minimize the burden of the collection of
CBOELegalRegulatoryHome.aspx), at
the fair inclusion of minority-owned information on respondents, including
the Exchange’s Office of the Secretary,
and women-owned businesses in all of through the use of automated collection
and at the Commission’s Public
the Commission’s business activities. techniques or other forms of information
Reference Room.
The Commission is also required to technology.
develop standards for coordinating Background documentation for this II. Self-Regulatory Organization’s
technical assistance minority-owned information collection may be viewed at Statement of the Purpose of, and
and women-owned businesses. As part the following Web site, Statutory Basis for, the Proposed Rule
of its implementation of Section 342 of www.reginfo.gov. Please direct general Change
the Dodd-Frank Act, the Commission is comments to the following persons: (i) In its filing with the Commission, the
developing a new electronic Supplier Desk Officer for the Securities and Exchange included statements
Diversity Business Management System Exchange Commission, Office of concerning the purpose of and basis for
(the System) to collect up-to-date Management and Budget, Room 10102, the proposed rule change and discussed
business information and capabilities New Executive Office Building, any comments it received on the
statements from diverse suppliers Washington, DC 20503 or send an email proposed rule change. The text of these
interested in doing business with the to Shagufta Ahmed at Shagufta_ statements may be examined at the
mstockstill on DSK4VPTVN1PROD with NOTICES
Commission. The information collected Ahmed@omb.eop.gov; and (ii) Pamela places specified in Item IV below. The
in the System will allow the Dyson, Chief Information Officer, Exchange has prepared summaries, set
Commission to update and more Securities and Exchange Commission, c/ forth in sections A, B, and C below, of
effectively manage its current internal o Remi Pavlik-Simon, 100 F Street NE., the most significant aspects of such
repository of diverse suppliers. Further, Washington, DC 20549 or send an email statements.
the information in the System will also to: PRA_Mailbox@sec.gov. Comments
allow the Commission to measure the must be submitted within 30 days of 1 15 U.S.C. 78s(b)(1).
effectiveness of its technical assistance this notice. 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 18:37 Mar 31, 2015 Jkt 235001 PO 00000 Frm 00143 Fmt 4703 Sfmt 4703 E:\FR\FM\01APN1.SGM 01APN1](https://thefederalregister.org/doc/80_FR_17588/page/3.svg)
Document Created: 2015-12-18 11:04:09
Document Modified: 2015-12-18 11:04:09
| 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 17526 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR