80_FR_36134 80 FR 36014 - Sunshine Act Meeting

80 FR 36014 - Sunshine Act Meeting

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 120 (June 23, 2015)

Page Range36014-36015
FR Document2015-15449

Federal Register, Volume 80 Issue 120 (Tuesday, June 23, 2015) 
[Federal Register Volume 80, Number 120 (Tuesday, June 23, 2015)]
[Notices]
[Pages 36014-36015]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-15449]


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SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Public Law 94-409, that the Securities 
and Exchange Commission will hold a Closed Meeting on Thursday, June 
25, 2015 at 2:00 p.m.
    Commissioners, Counsel to the Commissioners, the Secretary to the 
Commission, and recording secretaries will attend the Closed Meeting. 
Certain

[[Page 36015]]

staff members who have an interest in the matters also may be present.
    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), (7), 9(B) and (10) and 17 CFR 
200.402(a)(3), (a)(5), (a)(7), (a)(9)(ii) and (a)(10), permit 
consideration of the scheduled matter at the Closed Meeting.
    Commissioner Piwowar, as duty officer, voted to consider the items 
listed for the Closed Meeting in closed session.
    The subject matter of the Closed Meeting will be:
Institution and settlement of injunctive actions;
Institution and settlement of administrative proceedings;
Resolution of litigation claims; and
Other matters relating to enforcement proceedings.
    At times, changes in Commission priorities require alterations in 
the scheduling of meeting items.
    For further information and to ascertain what, if any, matters have 
been added, deleted, or postponed, please contact the Office of the 
Secretary at (202) 551-5400.

    Dated: June 18, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-15449 Filed 6-19-15; 11:15 am]
 BILLING CODE 8011-01-P

36014 Federal Register / Vol. 80, No. 120 / Tuesday, June 23, 2015 / Notices amounts spent under the rule 12b–1 portfolios are part of an affiliated group approximately three funds per year plan; and (iii) the board, including the of funds or mutual fund family that is prepare a proxy in connection with the independent directors, consider overseen by a common board of adoption or material amendment of a continuation of the rule 12b–1 plan and directors. Although the board must rule 12b–1 plan. Funds typically hire any related agreements at least annually. review and approve the rule 12b–1 plan outside legal counsel and proxy Rule 12b–1 also requires mutual funds for each fund separately, we have solicitation firms to prepare, print, and relying on the rule to preserve for six allocated the costs and hourly burden mail such proxies. The staff further years, the first two years in an easily related to rule 12b–1 based on the estimates that the cost of each fund’s accessible place, copies of the rule 12b– number of fund families that have at proxy is $34,372. Thus the total annual 1 plan and any related agreements and least one fund that charges rule 12b–1 cost burden of rule 12b–1 to the fund reports, as well as minutes of board fees, rather than on the total number of industry is $103,116 (3 funds requiring meetings that describe the factors mutual fund portfolios that individually a proxy × $34,372 per proxy). considered and the basis for adopting or have a rule 12b–1 plan.2 Based on The estimate of average burden hours continuing a rule 12b–1 plan. information filed with the Commission, is made solely for the purposes of the Rule 12b–1 also prohibits funds from the staff estimates that there are Paperwork Reduction Act, and is not paying for distribution of fund shares approximately 330 fund families with derived from a comprehensive or even with brokerage commissions on their common boards of directors that have at a representative survey or study of the portfolio transactions. The rule requires least one fund with a rule 12b–1 plan. costs of Commission rules and forms. funds that use broker-dealers that sell Based on previous conversations with The collections of information their shares to also execute their fund representatives, Commission staff required by rule 12b–1 are necessary to portfolio securities transactions, to estimates that for each of the 330 mutual obtain the benefits of the rule. Notices implement policies and procedures fund families with a portfolio that has to the Commission will not be kept reasonably designed to prevent: (i) The a rule 12b–1 plan, the average annual confidential. An agency may not persons responsible for selecting broker- burden of complying with the rule is conduct or sponsor, and a person is not dealers to effect transactions in fund 425 hours. This estimate takes into required to respond to a collection of portfolio securities from taking into account the time needed to prepare information unless it displays a account broker-dealers’ promotional or quarterly reports to the board of currently valid control number. sales efforts when making those directors, the board’s consideration of The public may view the background decisions; and (ii) a fund, its adviser or those reports, and the board’s initial or documentation for this information principal underwriter, from entering annual consideration of whether to collection at the following Web site, into any agreement under which the continue the plan.3 We therefore www.reginfo.gov. Comments should be fund directs brokerage transactions or estimate that the total hourly burden per revenue generated by those transactions year for all funds to comply with directed to: (i) Desk Officer for the to a broker-dealer to pay for distribution current information collection Securities and Exchange Commission, of the fund’s (or any other fund’s) requirements under rule 12b–1, is Office of Information and Regulatory shares. 140,250 hours (330 fund families × 425 Affairs, Office of Management and The board and shareholder approval hours per fund family = 140,250 hours). Budget, Room 10102, New Executive requirements of rule 12b–1 are designed If a currently operating fund seeks to Office Building, Washington, DC 20503, to ensure that fund shareholders and (i) adopt a new rule 12b–1 plan or (ii) or by sending an email to: Shagufta_ directors receive adequate information materially increase the amount it spends Ahmed@omb.eop.gov; and (ii) Pamela to evaluate and approve a rule 12b–1 for distribution under its rule 12b–1 Dyson, Director/Chief Information plan and, thus, are necessary for plan, rule 12b–1 requires that the fund Officer, Securities and Exchange investor protection. The requirement of obtain shareholder approval. As a Commission, c/o Remi Pavlik-Simon, quarterly reporting to the board is consequence, the fund will incur the 100 F Street NE., Washington, DC 20549 designed to ensure that the rule 12b–1 cost of a proxy.4 Based on previous or send an email to: PRA_Mailbox@ plan continues to benefit the fund and conversations with fund representatives, sec.gov. Comments must be submitted to its shareholders. The recordkeeping Commission staff estimates that OMB within 30 days of this notice. requirements of the rule are necessary to Dated: June 18, 2015. 2 This allocation is based on previous enable Commission staff to oversee Brent Fields, conversations with fund representatives on how compliance with the rule. The fund boards comply with the requirements of rule Secretary. requirement that funds or their advisers 12b–1. Despite this allocation of hourly burdens [FR Doc. 2015–15378 Filed 6–22–15; 8:45 am] implement, and fund boards approve, and costs, the number of annual responses each BILLING CODE 8011–01–P policies and procedures in order to year will continue to depend on the number of fund portfolios with rule 12b–1 plans rather than the prevent persons charged with allocating number of fund families with rule 12b–1 plans. The fund brokerage from taking distribution staff estimates that the number of annual responses SECURITIES AND EXCHANGE efforts into account is designed to per fund portfolio will be four per year (quarterly, COMMISSION with the annual reviews taking place at one of the ensure that funds’ selection of brokers to quarterly intervals). Thus, we estimate that funds effect portfolio securities transactions is will make 31,348 responses (7837 fund portfolios × Sunshine Act Meeting not influenced by considerations about 4 responses per fund portfolio = 31,348 responses) the sale of fund shares. each year. Notice is hereby given, pursuant to Based on information filed with the 3 We do not estimate any costs or time burden the provisions of the Government in the related to the recordkeeping requirements in rule mstockstill on DSK4VPTVN1PROD with NOTICES Commission by funds, Commission staff Sunshine Act, Public Law 94–409, that 12b–1, as funds are either required to maintain estimates that there are approximately these records pursuant to other rules or would keep the Securities and Exchange 7837 mutual fund portfolios that have at these records in any case as a matter of business Commission will hold a Closed Meeting least one share class subject to a rule practice. on Thursday, June 25, 2015 at 2:00 p.m. 4 In general, a fund adopts a rule 12b–1 plan 12b–1 plan.1 However, many of these Commissioners, Counsel to the before it begins operations. Therefore, the fund is not required to obtain the approval of its public Commissioners, the Secretary to the 1 This estimate is based on information from the shareholders because the fund’s shares have not yet Commission, and recording secretaries Commission’s NSAR database. been offered to the public. will attend the Closed Meeting. Certain VerDate Sep<11>2014 18:39 Jun 22, 2015 Jkt 235001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 E:\FR\FM\23JNN1.SGM 23JNN1

Federal Register / Vol. 80, No. 120 / Tuesday, June 23, 2015 / Notices 36015 staff members who have an interest in Register on October 21, 2014.3 On Exchange, the quote mitigation plan was the matters also may be present. December 2, 2014, pursuant to Section designed to reduce the number of The General Counsel of the 19(b)(2) of the Act,4 the Commission quotation messages sent by the Commission, or her designee, has designated a longer period within which Exchange to the Options Price Reporting certified that, in her opinion, one or to approve the proposed rule change, Authority (‘‘OPRA’’) by only submitting more of the exemptions set forth in 5 disapprove the proposed rule change, or quote messages for ‘‘active’’ series.10 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) institute proceedings to determine The Exchange defines active series and 17 CFR 200.402(a)(3), (a)(5), (a)(7), whether to approve or disapprove the under the quote mitigation plan in (a)(9)(ii) and (a)(10), permit proposed rule change.5 On January 8, Commentary .03 to Exchange Rule 6.86 consideration of the scheduled matter at 2015, the Exchange submitted a as: (i) Series that have traded on any the Closed Meeting. comment letter in further support of its options exchange in the previous 14 Commissioner Piwowar, as duty proposal.6 On January 16, 2015, the calendar days; or (ii) series that are officer, voted to consider the items Commission issued an Order Instituting solely listed on the Exchange; or (iii) listed for the Closed Meeting in closed Proceedings to Determine Whether to series that have been trading ten days or session. Approve or Disapprove the proposed less; or (iv) series for which the The subject matter of the Closed rule change.7 On February 27, 2015 and Exchange has received an order.11 In Meeting will be: June 4, 2015, the Exchange submitted addition, under the Exchange’s quote Institution and settlement of injunctive comment letters in further support of its mitigation plan, the Exchange may actions; proposal.8 No additional comment define a series as active on an intraday Institution and settlement of letters were submitted. This order basis if: (i) The series trades at any administrative proceedings; disapproves the proposed rule change. options exchange; (ii) the Exchange Resolution of litigation claims; and II. Description of the Proposal receives an order in the series; or (iii) Other matters relating to enforcement the Exchange receives a request for proceedings. In 2007, the Exchange adopted a At times, changes in Commission quote from a customer in that series.12 quote mitigation plan in connection The Exchange proposes to remove its priorities require alterations in the with the Options Penny Pilot Program quote mitigation plan from its rules by scheduling of meeting items. (‘‘Penny Pilot’’).9 According to the For further information and to deleting Commentary .03 to Exchange ascertain what, if any, matters have been 3 See Securities Exchange Act Release No. 73362 Rule 6.86.13 The Exchange states that its added, deleted, or postponed, please (October 15, 2014), 79 FR 62983 (‘‘Notice’’). quote mitigation plan is no longer contact the Office of the Secretary at 4 15 U.S.C. 78s(b)(2). necessary primarily for three reasons. (202) 551–5400. 5 See Securities Exchange Act Release No. 73720, First, the Exchange states that its 79 FR 72747 (December 8, 2014). The Commission incorporation of select provisions of the Dated: June 18, 2015. designated January 19, 2015, as the date by which Options Listing Procedures Plan Brent J. Fields, it should approve, disapprove, or institute proceedings to determine whether to approve or (‘‘OLPP’’) 14 in Exchange Rule 6.4A Secretary. disapprove the proposed rule change. serves to reduce the potential for excess [FR Doc. 2015–15449 Filed 6–19–15; 11:15 am] 6 See Letter from Elizabeth King, Secretary & quoting because the OLPP limits the BILLING CODE 8011–01–P General Counsel, Exchange, to Kevin O’Neill, number of options series eligible to be Deputy Secretary, Commission, dated January 8, 2015 (‘‘NYSE Arca Letter 1’’) available at http:// listed, which, according to the www.sec.gov/comments/sr-nysearca-2014-117/ Exchange, reduces the number of SECURITIES AND EXCHANGE nysearca2014117.shtml. options series a market maker would be COMMISSION 7 See Securities and Exchange Release No. 74088, obligated to quote.15 Second, the 80 FR 3687 (January 23, 2015) (Order Instituting [Release No. 34–75191; File No. SR– Proceedings to Determine Whether to Approve or NYSEArca–2014–117] quote mitigation plan the Commission stated that Disapprove a Proposal Rule Change to Remove the ‘‘because the Commission expects that the Penny Exchange’s Quote Mitigation Plan as Provided by Pilot Program will increase quote message traffic, Self-Regulatory Organizations; NYSE Commentary .03 to Exchange Rule 6.86) (‘‘OIP’’). 8 See Letters from Elizabeth King, Secretary & the Commission is also approving the Exchange’s Arca, Inc.; Order Disapproving proposal to reduce the number of quotations it General Counsel, Exchange, to Kevin O’Neill, disseminates.’’ See Quote Mitigation Approval Proposed Rule Change To Remove the Deputy Secretary, Commission, dated February 27, Exchange’s Quote Mitigation Plan as Order at 4760. 2015 (‘‘NYSE Arca Letter 2’’) available athttp:// 10 See Notice, supra note 3, at 62983. Provided in Commentary .03 to www.sec.gov/comments/sr-nysearca-2014-117/ 11 See Exchange Rule 6.86, Commentary .03, and Exchange Rule 6.86 nysearca2014117-2.pdf and to Brent Fields, Secretary, Commission, dated June 4, 2015 (‘‘NYSE Notice, supra note 3, at 62983. 12 See id. June 17, 2015. Arca Letter 3’’) available at http://www.sec.gov/ 13 See Notice, supra note 3, at 62984. In addition, comments/sr-nysearca-2014-117/nysearca2014117- I. Introduction 3.pdf. the Exchange proposes to amend paragraphs (b)(1) 9 See Securities and Exchange Release No. 55156 and (b)(2) of Exchange Rule 6.86 to delete On October 2, 2014, NYSE Arca, Inc. (January 23, 2007), 72 FR 4759 (February 1, 2007) references to the ‘‘Quote Mitigation Plan,’’ which (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed (Order Granting Approval of SR–NYSEArca–2006– refer to the quote mitigation plan set forth in 73) (‘‘Quote Mitigation Approval Order’’). In this Commentary .03 to Exchange Rule 6.86. See id. with the Securities and Exchange 14 See Amendment to Plan for the Purpose of Order, the Commission approved a proposed rule Commission (‘‘Commission’’), pursuant change to amend the NYSE Arca rules to (i) permit Developing and Implementing Procedures Designed to Section 19(b)(1) of the Securities thirteen options classes to be quoted in pennies on to Facilitate the Listing and Trading of Exchange Act of 1934 (‘‘Act’’) 1 and Rule a pilot basis and (ii) adopt a quote mitigation plan. Standardized Options Submitted Pursuant to 19b–4 thereunder,2 a proposed rule In approving the Penny Pilot, the Commission Section 11A(a)(3)(B) of the Securities Exchange Act analyzed data provided by the options exchanges to available at http://www.theocc.com/clearing/ mstockstill on DSK4VPTVN1PROD with NOTICES change to remove the Exchange’s quote assess the potential impact the Penny Pilot would industry-services/olpp.jsp (providing for the most mitigation plan as provided by have on, among other things, the increase in current OLPP). See also Securities and Exchange Commentary .03 to NYSE Arca Rule quotation message traffic. According to the Release No. 44521 (July 6, 2001), 66 FR 36809 (July 6.86. The proposed rule change was Exchange, the quote mitigation plan was designed 13, 2001) (order approving the OLPP). to mitigate the volume of data processed and 15 See Notice, supra note 3, at 62983. See also published for comment in the Federal disseminated by OPRA. See Securities and Securities and Exchange Release No. 61977 (April Exchange Release No. 55590 (October 12, 2006), 72 23, 2010), 75 FR 22884 (April 30, 2010) (SR– 1 15 U.S.C. 78s(b)(1). FR 4759 (October 18, 2006) (Notice of SR– NYSEArca–2010–30) (in which the Exchange 2 17 CFR 240.19b–4. NYSEArca-2006–73). In approving the Exchange’s Continued VerDate Sep<11>2014 18:39 Jun 22, 2015 Jkt 235001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 E:\FR\FM\23JNN1.SGM 23JNN1


Document Created: 2018-02-22 11:15:20
Document Modified: 2018-02-22 11:15:20
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 36014 
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