80 FR 18470 - Proposed Collection; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 65 (April 6, 2015)
Federal Register Volume 80, Issue 65 (April 6, 2015)
| Page Range | 18470-18471 | |
| FR Document | 2015-07754 |
[Federal Register Volume 80, Number 65 (Monday, April 6, 2015)] [Notices] [Pages 18470-18471] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-07754] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549-2736. Extension: Rule 17f-6, SEC File No. 270-392, OMB Control No. 3235-0447. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), 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-6 (17 CFR 270.17f-6) under the Investment Company Act of 1940 (15 U.S.C. 80a) permits registered investment companies (``funds'') to maintain assets (i.e., margin) with futures commission merchants (``FCMs'') in connection with commodity transactions effected on both domestic and foreign exchanges. Prior to the rule's adoption, funds generally were required to maintain these assets in special accounts with a custodian bank. The rule requires a written contract that contains certain provisions designed to ensure important safeguards and other benefits relating to the custody of fund assets by FCMs. To protect fund assets, the contract must require that FCMs comply with the segregation or secured amount requirements of the Commodity Exchange Act (``CEA'') and the rules under that statute. The contract also must contain a requirement that FCMs obtain an acknowledgment from any clearing organization that the fund's assets are held on behalf of the FCM's customers according to CEA provisions. Because rule 17f-6 does not impose any ongoing obligations on funds or FCMs, Commission staff estimates there are no costs related to existing contracts between funds and FCMs. This estimate does not include the time required by an FCM to comply with the rule's contract requirements because, to the extent that complying with the contract provisions could be considered ``collections of information,'' the burden hours for compliance are already included in other PRA submissions.\1\ --------------------------------------------------------------------------- \1\ The rule requires a contract with the FCM to contain two provisions requiring the FCM to comply with existing requirements under the CEA and rules adopted thereunder. Thus, to the extent these provisions could be considered collections of information, the hours required for compliance would be included in the collection of information burden hours submitted by the CFTC for its rules. --------------------------------------------------------------------------- Thus, Commission staff estimates that any burden of the rule would be borne by funds and FCMs entering into new contracts pursuant to the rule. Commission staff estimates that approximately 291 fund complexes and 965 funds currently effect commodities transactions and could deposit margin with FCMs in connection with those transactions pursuant to rule 17f-6.\2\ Staff further estimates that of this number, 29 fund complexes and 97 funds enter into new contracts with FCMs each year.\3\ --------------------------------------------------------------------------- \2\ This estimate is based on the number of funds that reported on Form N-SAR from June 1, 2014-November 30, 2014, in response to items (b) through (i) of question 70, that they engaged in futures and commodity option transactions. \3\ These estimates are based on the assumption that 10% of fund complexes and funds enter into new FCM contracts each year. This assumption encompasses fund complexes and funds that enter into FCM contracts for the first time, as well as fund complexes and fund that change the FCM with whom they maintain margin accounts for commodities transactions. --------------------------------------------------------------------------- Based on conversations with fund representatives, Commission staff understands that fund complexes typically enter into contracts with FCMs on behalf of all funds in the fund complex that engage in commodities transactions. Funds covered by the contract are typically listed in an attachment, which may be amended to encompass new funds. Commission staff estimates that the burden for a fund complex to enter into a contract with an FCM that contains the contract requirements of rule 17f-6 is one hour, and further estimates that the burden to add a fund to an existing contract between a fund complex and an FCM is 6 minutes. Accordingly, Commission staff estimates that funds and FCMs spend 39 burden hours annually complying with the information collection requirements of rule 17f-6.\4\ At $380 per hour of professional (attorney) time, Commission staff estimates that the annual dollar cost for the 39 hours is $14,820.\5\ These estimates 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. --------------------------------------------------------------------------- \4\ This estimate is based upon the following calculation: (29 fund complexes x 1 hour) + (97 funds x 0.1 hours) = 39 hours. \5\ The $380 per hour figure for an attorney is from SIFMA's Management & Professional Earnings in the Securities Industry 2013, modified by Commission staff to account for an 1800-hour work-year and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead. --------------------------------------------------------------------------- Compliance with the collection of information requirements of the rule is necessary to obtain the benefit of relying on the rule. 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 control number. Written comments are invited on: (a) Whether the collection of information is 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 burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days after this publication. [[Page 18471]] 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: [email protected]. Dated: March 31, 2015. Brent J. Fields, Secretary. [FR Doc. 2015-07754 Filed 4-3-15; 8:45 am] BILLING CODE 8011-01-P
![18470 Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices
amendments, all written statements futures commission merchants Based on conversations with fund
with respect to the proposed rule (‘‘FCMs’’) in connection with representatives, Commission staff
change that are filed with the commodity transactions effected on understands that fund complexes
Commission, and all written both domestic and foreign exchanges. typically enter into contracts with FCMs
communications relating to the Prior to the rule’s adoption, funds on behalf of all funds in the fund
proposed rule change between the generally were required to maintain complex that engage in commodities
Commission and any person, other than these assets in special accounts with a transactions. Funds covered by the
those that may be withheld from the custodian bank. contract are typically listed in an
public in accordance with the The rule requires a written contract attachment, which may be amended to
provisions of 5 U.S.C. 552, will be that contains certain provisions encompass new funds. Commission staff
available for Web site viewing and designed to ensure important safeguards estimates that the burden for a fund
printing in the Commission’s Public and other benefits relating to the complex to enter into a contract with an
Reference Room, 100 F Street NE., custody of fund assets by FCMs. To FCM that contains the contract
Washington, DC 20549, on official protect fund assets, the contract must requirements of rule 17f–6 is one hour,
business days between the hours of 10 require that FCMs comply with the and further estimates that the burden to
a.m. and 3 p.m. Copies of such filing segregation or secured amount add a fund to an existing contract
also will be available for inspection and requirements of the Commodity between a fund complex and an FCM is
copying at the principal offices of the Exchange Act (‘‘CEA’’) and the rules 6 minutes.
Exchange. All comments received will under that statute. The contract also Accordingly, Commission staff
be posted without change; the must contain a requirement that FCMs
estimates that funds and FCMs spend 39
Commission does not edit personal obtain an acknowledgment from any
burden hours annually complying with
identifying information from clearing organization that the fund’s
the information collection requirements
submissions. You should submit only assets are held on behalf of the FCM’s
of rule 17f–6.4 At $380 per hour of
information that you wish to make customers according to CEA provisions.
Because rule 17f–6 does not impose professional (attorney) time,
available publicly. All submissions Commission staff estimates that the
should refer to File Number SR-Phlx- any ongoing obligations on funds or
FCMs, Commission staff estimates there annual dollar cost for the 39 hours is
2015–29, and should be submitted on or
are no costs related to existing contracts $14,820.5 These estimates are made
before April 27, 2015.
between funds and FCMs. This estimate solely for the purposes of the Paperwork
For the Commission, by the Division of Reduction Act, and are not derived from
Trading and Markets, pursuant to delegated does not include the time required by an
FCM to comply with the rule’s contract a comprehensive or even a
authority.78
requirements because, to the extent that representative survey or study of the
Brent J. Fields, costs of Commission rules and forms.
Secretary. complying with the contract provisions
could be considered ‘‘collections of Compliance with the collection of
[FR Doc. 2015–07751 Filed 4–3–15; 8:45 am]
information,’’ the burden hours for information requirements of the rule is
BILLING CODE 8011–01–P necessary to obtain the benefit of relying
compliance are already included in
other PRA submissions.1 on the rule. An agency may not conduct
Thus, Commission staff estimates that or sponsor, and a person is not required
SECURITIES AND EXCHANGE
any burden of the rule would be borne to respond to, a collection of
COMMISSION
by funds and FCMs entering into new information unless it displays a
Proposed Collection; Comment contracts pursuant to the rule. currently valid control number.
Request Commission staff estimates that Written comments are invited on: (a)
approximately 291 fund complexes and Whether the collection of information is
Upon Written Request, Copies Available 965 funds currently effect commodities necessary for the proper performance of
From: Securities and Exchange transactions and could deposit margin the functions of the Commission,
Commission, Office of FOIA Services, with FCMs in connection with those including whether the information has
100 F Street NE., Washington, DC transactions pursuant to rule 17f–6.2 practical utility; (b) the accuracy of the
20549–2736. Staff further estimates that of this Commission’s estimate of the burden of
Extension: number, 29 fund complexes and 97 the collection of information; (c) ways to
Rule 17f–6, SEC File No. 270–392, OMB funds enter into new contracts with enhance the quality, utility, and clarity
Control No. 3235–0447. FCMs each year.3 of the information collected; and (d)
Notice is hereby given that, pursuant ways to minimize the burden of the
1 The rule requires a contract with the FCM to
to the Paperwork Reduction Act of 1995 collection of information on
contain two provisions requiring the FCM to
(44 U.S.C. 3501–3520), the Securities comply with existing requirements under the CEA respondents, including through the use
and Exchange Commission (the and rules adopted thereunder. Thus, to the extent of automated collection techniques or
‘‘Commission’’) is soliciting comments these provisions could be considered collections of other forms of information technology.
on the collection of information information, the hours required for compliance
would be included in the collection of information Consideration will be given to
summarized below. The Commission burden hours submitted by the CFTC for its rules. comments and suggestions submitted in
plans to submit this existing collection 2 This estimate is based on the number of funds writing within 60 days after this
of information to the Office of that reported on Form N–SAR from June 1, 2014– publication.
Management and Budget for extension November 30, 2014, in response to items (b)
through (i) of question 70, that they engaged in
and approval. futures and commodity option transactions. 4 This estimate is based upon the following
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Rule 17f–6 (17 CFR 270.17f–6) under 3 These estimates are based on the assumption calculation: (29 fund complexes × 1 hour) + (97
the Investment Company Act of 1940 that 10% of fund complexes and funds enter into funds × 0.1 hours) = 39 hours.
(15 U.S.C. 80a) permits registered new FCM contracts each year. This assumption 5 The $380 per hour figure for an attorney is from
investment companies (‘‘funds’’) to encompasses fund complexes and funds that enter SIFMA’s Management & Professional Earnings in
into FCM contracts for the first time, as well as fund the Securities Industry 2013, modified by
maintain assets (i.e., margin) with complexes and fund that change the FCM with Commission staff to account for an 1800-hour work-
whom they maintain margin accounts for year and multiplied by 5.35 to account for bonuses,
78 17 CFR 200.30–3(a)(12). commodities transactions. firm size, employee benefits and overhead.
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![Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 18471
Please direct your written comments the proposed rule change and discussed controls, and is not designed to permit
to Pamela Dyson, Director/Chief any comments it received on the unfair discrimination between
Information Officer, Securities and proposed rule change. The text of those customers, issuers, brokers, or dealers.
Exchange Commission, C/O Remi statements may be examined at the NASDAQ believes that the proposed
Pavlik-Simon, 100 F Street NE., places specified in Item IV below. The change is reasonable because it has
Washington, DC 20549; or send an email Exchange has prepared summaries, set reviewed the impact of the prior change
to: PRA_Mailbox@sec.gov. forth in sections A, B, and C below, of to the fee and is now proposing to
Dated: March 31, 2015. the most significant parts of such modestly increase the fee to ensure that
Brent J. Fields,
statements. NASDAQ is able to realize a reasonable
Secretary. A. Self-Regulatory Organization’s profit in addition to covering costs. The
Statement of the Purpose of, and Exchange believes that it is reasonable
[FR Doc. 2015–07754 Filed 4–3–15; 8:45 am]
Statutory Basis for, the Proposed Rule to adjust fees from time to time so that
BILLING CODE 8011–01–P
Change it can continue to make a profit on the
products and services it offers. Ensuring
1. Purpose that its products and services provide
SECURITIES AND EXCHANGE
COMMISSION NASDAQ is proposing to increase the the Exchange with a profit allows it
fee assessed under Rule 7001(c) for continue to offer and enhance such
[Release No. 34–74629; File No. SR– MPIDs. MPIDs are special alphabetical products and services, such as MPIDs.
NASDAQ–2015–030] identifiers assigned to certain broker- Moreover, the Exchange notes that its
dealers to identify the firms’ transaction membership fees will continue to
Self-Regulatory Organizations; The
and quoting activity. NASDAQ remain substantially lower than the
NASDAQ Stock Market LLC; Notice of
administers the assignment of MPIDs, analogous fees assessed by the New
Filing and Immediate Effectiveness of
which may be requested by a broker- York Stock Exchange for membership.7
Proposed Rule Change To Modify
dealer for use on NASDAQ systems, The Exchange believes that the
NASDAQ Rule 7001(c)
reporting to the Financial Industry proposed change is both an equitable
April 1, 2015. Regulatory Authority (‘‘FINRA’’), or a allocation and is not designed to permit
Pursuant to Section 19(b)(1) of the combination of the two. NASDAQ unfair discrimination between member
Securities Exchange Act of 1934 member firms must subscribe to at least firms because the fee is applied to all
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 one MPID upon gaining NASDAQ member firms equally based on the
notice is hereby given that on March 26, membership, but may also request number of MPIDs subscribed.
2015, The NASDAQ Stock Market LLC additional MPIDs. Member firms are not B. Self-Regulatory Organization’s
(‘‘NASDAQ’’ or the ‘‘Exchange’’) filed assessed a fee for an MPID used Statement on Burden on Competition
with the Securities and Exchange exclusively for reporting information to
Commission (‘‘Commission’’) a facilities of FINRA, such as the FINRA/ NASDAQ does not believe that the
proposed rule change as described in NASDAQ Trade Reporting Facility. proposed rule change will result in any
Items I, II and III below, which Items In December 2014, NASDAQ burden on competition that is not
have been prepared by the Exchange. modified how the fee under Rule necessary or appropriate in furtherance
The Commission is publishing this 7001(c) is assessed by reducing the fee, of the purposes of the Act, as amended.8
notice to solicit comments on the but applying the fee to all MPIDs NASDAQ does not believe that the
proposed rule change from interested subscribed.4 The rule had previously proposed rule change places an
persons. provided that the first MPID subscribed unnecessary burden on competition
was available at no cost. In making the because it is a modest fee increase that
I. Self-Regulatory Organization’s change, the Exchange more closely will allow NASDAQ to realize a
Statement of the Terms of the Substance aligned the fee assessed with the benefit reasonable profit in addition to covering
of the Proposed Rule Change provided and the costs incurred in costs. As noted above, NASDAQ’s
The Exchange proposes to modify offering an MPID, which includes membership fees remain substantially
NASDAQ Rule 7001(c) concerning regulatory oversight associated with lower than the analogous fees of the
market maker participant identifier 3 each MPID. The Exchange is now NYSE, and membership fees are subject
(‘‘MPID’’) fees. The Exchange proposes proposing to modestly increase the fee to competition from other exchanges.
to implement the proposed rule change assessed for subscription to an MPID Accordingly, if the changes proposed
on April 1, 2015. from $500 to $550 per month. herein are unattractive to market
The text of the proposed rule change participants, it is likely that NASDAQ
is available at http://nasdaq.cchwall 2. Statutory Basis will experience a decline in
street.com at NASDAQ’s principal NASDAQ believes that the proposed membership and/or order flow as a
office, and at the Commission’s Public rule change is consistent with the result.
Reference Room. provisions of Section 6 of the Act,5 in
general, and with Sections 6(b)(4) and 7 The Exchange believes that the New York Stock
II. Self-Regulatory Organization’s Exchange (‘‘NYSE’’) Trading License Fee is
6(b)(5) of the Act,6 in particular, in that
Statement of the Purpose of, and analogous to membership fees of NASDAQ as they
it provides for the equitable allocation
Statutory Basis for, the Proposed Rule both provide access to the trading facilities of their
of reasonable dues, fees and other respective exchanges. In this regard, NYSE assesses
Change
charges among members and issuers and an annual fee of $50,000 for the first license held
In its filing with the Commission, other persons using any facility or by a member organization, and $15,000 for each
tkelley on DSK4VPTVN1PROD with NOTICES
NASDAQ included statements additional license. See https://www.nyse.com/
system which NASDAQ operates or publicdocs/nyse/markets/nyse/NYSE_Price_
concerning the purpose of, and basis for, List.pdf. By contrast, NASDAQ would assess the
4 See Securities Exchange Act Release No. 73705
proposed monthly fee of $550 per MPID ($6,600
1 15 U.S.C. 78s(b)(1). (December 1, 2015), 79 FR 72221 (December 5, annually), an annual membership fee of $3,000, and
2 17 CFR 240.19b–4. 2014)(SR–NASDAQ–2014–118). a monthly trading rights fee of $1,000 ($12,000
3 When applied to a market maker, sometimes 5 15 U.S.C. 78f. annually). See NASDAQ Rule 7001(a).
referred to as a ‘‘maker participant identifier.’’ 6 15 U.S.C. 78f(b)(4) and (5). 8 15 U.S.C. 78f(b)(8).
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Document Created: 2015-12-18 11:18:42
Document Modified: 2015-12-18 11:18:42
| 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 18470 |
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