81 FR 40935 - Proposed Collection; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 121 (June 23, 2016)
Federal Register Volume 81, Issue 121 (June 23, 2016)
| Page Range | 40935-40937 | |
| FR Document | 2016-14840 |
[Federal Register Volume 81, Number 121 (Thursday, June 23, 2016)] [Notices] [Pages 40935-40937] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14840] ----------------------------------------------------------------------- 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 19b-4 and Form 19b-4, SEC File No. 270-38, OMB Control No. 3235-0045. 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'') is soliciting comments on the existing collection of information provided for in Rule 19b-4 (17 CFR 240.19b- 4), under the Securities Exchange Act of 1934 (``Act'') (15 U.S.C. 78a et seq.). The Commission plans to submit this existing collection of information to the Office of Management and Budget (``OMB'') for extension and approval. Section 19(b) of the Act (15 U.S.C. 78s(b)) requires each self- regulatory organization (``SRO'') to file with the Commission copies of any proposed rule, or any proposed change in, addition to, or deletion from the rules of such SRO. Rule 19b-4 implements the requirements of Section 19(b) by requiring the SROs to file their proposed rule changes on Form 19b-4 and by clarifying which actions taken by SROs are subject to the filing requirement set forth in Section 19(b). Rule 19b-4(n) requires a designated clearing agency to provide the Commission advance notice (``Advance Notice'') of any proposed change to its rules, procedures, or operations that could materially affect the nature or level of risks presented by such clearing agency. Rule 19b-4(o) requires a registered clearing agency to submit for a Commission determination any security-based swap, or any group, category, type, or class of security-based swaps it plans to accept for clearing (``Security-Based Swap Submission''), and provide notice to its members of such submissions. The collection of information is designed to provide the Commission with the information necessary to determine, as required by the Act, whether the proposed rule change is consistent with the Act and the rules thereunder. The information is used to determine if the proposed rule change should be approved, disapproved, suspended, or if proceedings should be instituted to determine whether to approve or disapprove the proposed rule change. The respondents to the collection of information are SROs (as defined by Section 3(a)(26) of the Act),\1\ including national securities exchanges, national securities associations, registered clearing agencies, notice registered securities future product exchanges, and the Municipal Securities Rulemaking Board. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78c(a)(26). --------------------------------------------------------------------------- In calendar year 2015, each respondent filed an average of approximately 57 proposed rule changes. Each filing takes approximately 39 hours to complete on average. Thus, the total annual reporting burden for filing proposed rule changes with the Commission is 86,697 hours (57 proposals per year x 39 SROs x 39 hours per filing) for the estimated future number of 39 SROs.\2\ In addition to filing their proposed rule changes with the Commission, the respondents also are required to post each of their proposals on their respective Web sites, a process that takes approximately four hours to complete per proposal. Thus, for 1,935 proposals, the total annual reporting burden on respondents to post the proposals on their Web sites is 7,740 hours (1,935 proposals per year x 4 hours per filing) or 8,892 hours (57 proposals per year x 39 SROs x 4 hours per filing) for the estimated future number of 39 SROs. Further, the respondents are required to update their rulebooks, which they maintain on their Web sites, to reflect the changes that they make in each proposal they file. Thus, for all filings that were not withdrawn by a respondent (240 withdrawn filings in calendar year 2015) or disapproved by the Commission (6 disapproved filings in calendar year 2015), the respondents were required to update their online rulebooks to reflect the effectiveness of 1,689 proposals, each of which takes approximately four hours to complete [[Page 40936]] per proposal. Thus, the total annual reporting burden for updating online rulebooks is 7,764 hours ((2,223 filings per year-275 withdrawn filings \3\-7 disapproved filings \4\) x 4 hours). Finally, a respondent is required to notify the Commission if it does not post a proposed rule change on its Web site on the same day that it filed the proposal with the Commission. The Commission estimates that SROs will fail to post proposed rule changes on their Web sites on the same day as the filing 22 times a year (across all SROs), and that each SRO will spend approximately one hour preparing and submitting such notice to the Commission, resulting in a total annual burden of 22 hours (22 notices x 1 hour per notice). --------------------------------------------------------------------------- \2\ For most of 2015, 34 SROs were registered. One registered SRO withdrew in December 2015 and one SRO newly registered with the Commission in January 2016. The Commission expects five additional respondents to register during the three-year period for which this PRA Extension is applicable (three as registered clearing agencies and two as national securities exchanges), bringing the total number of respondents to 39. \3\ For 34 SROs, 240 withdrawn filings equal approximately 7.06 filings per SRO. For 39 SROs, the figure would increase to 275 withdrawn filings. \4\ For 34 SROs, six disapproved filings equal approximately 0.18 filings per SRO. For 39 SROs, the figure would increase to seven disapproved filings. --------------------------------------------------------------------------- Designated clearing agencies have additional information collection burdens. As noted above, pursuant to Rule 19b-4(n), a designated clearing agency must file with the Commission an Advance Notice of any proposed change to its rules, procedures, or operations that could materially affect the nature or level of risks presented by such designated clearing agency. The Commission estimates that four designated clearing agencies will each submit five Advance Notices per year, with each submission taking 90 hours to complete. The total annual reporting burden for filing Advance Notices is therefore 1,800 hours (4 designated clearing agencies x 5 Advance Notices per year x 90 hours per response). Designated clearing agencies are required to post all Advance Notices to their Web sites, each of which takes approximately four hours to complete. For five Advance Notices, the total annual reporting burden for posting them to respondents' Web sites is 80 hours (4 designated clearing agencies x 5 Advance Notices per year x 4 hours per Web site posting). Respondents are required to update the postings of those Advance Notices that become effective, each of which takes approximately four hours to complete. The total annual reporting burden for updating Advance Notices on the respondents' Web sites is 80 hours (4 designated clearing agencies x 5 Advance Notices per year x 4 hours per Web site posting). Pursuant to Rule 19b-4(n)(5), the respondents are also required to provide copies of all materials submitted to the Commission relating to an Advance Notice to the Board of Governors of the Federal Reserve System (``Board'') contemporaneously with such submission to the Commission, which is estimated to take two hours. The total annual reporting burden for designated clearing agencies to meet this requirement is 40 hours (4 designated clearing agencies x 5 Advance Notices per year x 2 hours per response). The Commission estimates that three security-based swap clearing agencies will each submit 20 Security-Based Swap Submissions per year, with each submission taking 140 hours to complete resulting in a total annual reporting burden of 8,400 hours (3 respondent clearing agencies x 20 Security-Based Swap Submissions per year x 140 hours per response). Respondent clearing agencies are required to post all Security-Based Swap Submissions to their Web sites, each of which takes approximately four hours to complete. For 20 Security-Based Swap Submissions, the total annual reporting burden for posting them to the three respondents' Web sites is 240 hours (3 respondent clearing agencies x 20 Security-Based Swap Submissions per year x 4 hours per Web site posting). In addition, three clearing agencies that have not previously posted Security-Based Swap Submissions, Advance Notices, and proposed rule changes on their Web sites may need to update their existing Web sites to post such filings online. The Commission estimates that each of these three clearing agencies would spend approximately 15 hours updating its existing Web site, resulting in a total one-time burden of 45 hours (3 respondent clearing agencies x 15 hours per Web site update) or 15 hours annualized over three years. Respondent clearing agencies will also have to provide training to staff members using the Electronic Form 19b-4 Filing System (``EFFS'') to submit Security-Based Swap Submissions, Advance Notices, and/or proposed rule changes electronically. The Commission estimates that one anticipated security-based swap clearing agency will spend approximately 20 hours training all staff members who will use EFFS to submit Security-Based Swap Submissions, Advance Notices, and/or proposed rule changes electronically, or 6.7 hours annualized over three years. The Commission also estimates that one anticipated clearing agency will have a one-time burden of 130 hours to draft and implement internal policies and procedures for using EFFS to make these submissions, or 43.3 hours annualized over three years. The Commission estimates that each of the 39 respondents will spend 10 hours each year training new compliance staff members and updating the training of existing compliance staff members to use EFFS, for a total annual burden of 390 hours (39 respondent SROs x 10 hours). In connection with Security-Based Swap Submissions, counterparties may apply for a stay from a mandatory clearing requirement under Rule 3Ca-1. The Commission estimates that each clearing agency will submit five applications for stays from a clearing requirement per year and it will take approximately 18 hours to retrieve, review, and submit each application. Thus, the total annual reporting burden for the Rule 3Ca-1 stay of clearing requirement would be 270 hours (3 respondent clearing agencies x 5 stay of clearing applications per year x 18 hours to retrieve, review, and submit the stay of clearing information). Based on the above, the total estimated annual response burden pursuant to Rule 19b-4 and Form 19b-4 is the sum of the total annual reporting burdens for filing proposed rule changes, Advance Notices, and Security-Based Swap Submissions; training staff to file such proposals; drafting, modifying, and implementing internal policies and procedures for filing such proposals; posting each proposal on the respondents' Web sites; updating Web sites to enable posting of proposals; updating the respondents' online rulebooks to reflect the proposals that became effective; submitting copies of Advance Notices to the Board; and applying for stays from clearing requirements, which is 114,740 hours. Compliance with Rule 19b-4 is mandatory. Information received in response to Rule 19b-4 shall not be kept confidential; the information collected is public information. Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; (b) the accuracy of the Commission's estimate of the burden of the proposed 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 of this publication. [[Page 40937]] 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. 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 by sending an email to [email protected]. Dated: June 17, 2016. Robert W. Errett, Deputy Secretary. [FR Doc. 2016-14840 Filed 6-22-16; 8:45 am] BILLING CODE 8011-01-P
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of the fifteen NAC members would For the Commission, by the Division of with the information necessary to
continue to be Industry Members, Trading and Markets, pursuant to delegated determine, as required by the Act,
including two Small Firm NAC authority.44 whether the proposed rule change is
Members, one Mid-Size Firm NAC Robert W. Errett, consistent with the Act and the rules
Member, two Large Firm NAC Members, Deputy Secretary. thereunder. The information is used to
and two at-large Industry Members.40 [FR Doc. 2016–14837 Filed 6–22–16; 8:45 am] determine if the proposed rule change
Accordingly, the Commission believes BILLING CODE 8011–01–P should be approved, disapproved,
that the proposed rule change continues suspended, or if proceedings should be
to allow for substantial industry instituted to determine whether to
participation, while enhancing the SECURITIES AND EXCHANGE approve or disapprove the proposed
overall independence of the NAC. COMMISSION rule change.
The Commission also believes it is The respondents to the collection of
Proposed Collection; Comment information are SROs (as defined by
appropriate for FINRA to increase the Request
term of NAC members from three to four Section 3(a)(26) of the Act),1 including
years. While one commenter raised Upon Written Request, Copies Available national securities exchanges, national
concerns about extending member From: Securities and Exchange securities associations, registered
terms,41 the Commission believes that Commission, Office of FOIA Services, clearing agencies, notice registered
the proposed rule change will allow 100 F Street NE., Washington, DC securities future product exchanges, and
NAC members to spend more time 20549–2736. the Municipal Securities Rulemaking
serving and being fully productive after Extension: Board.
gaining experience on the NAC. At the Rule 19b–4 and Form 19b–4, SEC File No. In calendar year 2015, each
same time, the Commission believes the 270–38, OMB Control No. 3235–0045. respondent filed an average of
current term limits, staggered terms, and Notice is hereby given that pursuant approximately 57 proposed rule
composition of the NAC should to the Paperwork Reduction Act of 1995 changes. Each filing takes
continue to provide the NAC with (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the approximately 39 hours to complete on
varied perspectives and views. Securities and Exchange Commission average. Thus, the total annual reporting
(‘‘Commission’’) is soliciting comments burden for filing proposed rule changes
The Commission also believes that the with the Commission is 86,697 hours
proposed changes to the NAC selection on the existing collection of information
provided for in Rule 19b–4 (17 CFR (57 proposals per year × 39 SROs × 39
process to modernize and streamline the hours per filing) for the estimated future
process and to align it with the process 240.19b–4), under the Securities
Exchange Act of 1934 (‘‘Act’’) (15 U.S.C. number of 39 SROs.2 In addition to
used in FINRA District Committee filing their proposed rule changes with
elections are appropriate.42 The 78a et seq.). The Commission plans to
submit this existing collection of the Commission, the respondents also
proposed rule change would allow are required to post each of their
ballots to be delivered and voted by information to the Office of
Management and Budget (‘‘OMB’’) for proposals on their respective Web sites,
means other than the mail and further a process that takes approximately four
simplify the tabulation process by extension and approval.
Section 19(b) of the Act (15 U.S.C. hours to complete per proposal. Thus,
eliminating the provision that allowed for 1,935 proposals, the total annual
NAC candidates and their 78s(b)) requires each self-regulatory
organization (‘‘SRO’’) to file with the reporting burden on respondents to post
representatives to observe the the proposals on their Web sites is 7,740
Independent Agent’s accounting of Commission copies of any proposed
rule, or any proposed change in, hours (1,935 proposals per year × 4
ballots in a contested election. FINRA hours per filing) or 8,892 hours (57
stated that candidates rarely opted to addition to, or deletion from the rules of
such SRO. Rule 19b–4 implements the proposals per year × 39 SROs × 4 hours
observe the Independent Agent and per filing) for the estimated future
observing the Independent Agent did requirements of Section 19(b) by
requiring the SROs to file their proposed number of 39 SROs. Further, the
not provide candidates additional respondents are required to update their
grounds for recourse. NAC candidates rule changes on Form 19b–4 and by
clarifying which actions taken by SROs rulebooks, which they maintain on their
and their representatives were not Web sites, to reflect the changes that
allowed to see the vote of any FINRA are subject to the filing requirement set
forth in Section 19(b). Rule 19b–4(n) they make in each proposal they file.
member and the final determination of Thus, for all filings that were not
the qualification of a ballot rested with requires a designated clearing agency to
provide the Commission advance notice withdrawn by a respondent (240
the Secretary of FINRA. withdrawn filings in calendar year
(‘‘Advance Notice’’) of any proposed
V. Conclusion change to its rules, procedures, or 2015) or disapproved by the
operations that could materially affect Commission (6 disapproved filings in
It is therefore ordered, pursuant to calendar year 2015), the respondents
the nature or level of risks presented by
Section 19(b)(2) of the Act,43 that the were required to update their online
such clearing agency. Rule 19b–4(o)
proposed rule change (FINRA–2016– rulebooks to reflect the effectiveness of
requires a registered clearing agency to
014) be, and it hereby is approved. 1,689 proposals, each of which takes
submit for a Commission determination
any security-based swap, or any group, approximately four hours to complete
40 See current and proposed FINRA Regulation
asabaliauskas on DSK3SPTVN1PROD with NOTICES
By-Laws, Article V (National Adjudicatory
category, type, or class of security-based 1 15 U.S.C. 78c(a)(26).
Council), Section 5.2(a) (Number of Members and swaps it plans to accept for clearing 2 For most of 2015, 34 SROs were registered. One
Qualifications). (‘‘Security-Based Swap Submission’’), registered SRO withdrew in December 2015 and
41 See FSI Letter.
and provide notice to its members of one SRO newly registered with the Commission in
42 See FINRA Regulation By-Laws, Article VIII
such submissions. January 2016. The Commission expects five
(District Committees), Sections 8.11 (Ballots), 8.13 additional respondents to register during the three-
(Ballots Returned as Undelivered), and 8.14
The collection of information is
year period for which this PRA Extension is
(General Procedures for Qualification and designed to provide the Commission applicable (three as registered clearing agencies and
Accounting of Ballots). two as national securities exchanges), bringing the
43 15 U.S.C. 78s(b)(2). 44 17 CFR 200.30–3(a)(12). total number of respondents to 39.
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An agency may not conduct or All interested persons are invited to going to: http://www.regulations.gov/
sponsor, and a person is not required to attend the July 8 public session where #!home and searching for docket
respond to, a collection of information they will have an opportunity to ask number DOS–2016–0045.
under the PRA unless it displays a questions and discuss implementation FOR FURTHER INFORMATION CONTACT: Neal
currently valid OMB control number. of Chapter 17 and the Environmental Morris, (202) 647–9312, or Laura Buffo,
Please direct your written comments Cooperation Agreement with Council (202) 395–9424
to: Pamela Dyson, Director/Chief Members. At the public session, the
Information Officer, Securities and Council hopes to receive input from the SUPPLEMENTARY INFORMATION: Article
Exchange Commission, c/o Remi Pavlik- public on current environmental 17.5 of the CAFTA–DR establishes an
Simon, 100 F Street NE., Washington, challenges and ideas for future Environmental Affairs Council (the
DC 20549, or by sending an email to cooperation. The session will also offer Council) and, unless the CAFTA–DR
PRA_Mailbox@sec.gov. the opportunity to hear directly from parties otherwise agree, requires it to
Dated: June 17, 2016. beneficiaries of the CAFTA–DR meet annually to oversee the
Environmental Cooperation Program implementation of, and review progress
Robert W. Errett,
and explore environmental progress in under, Chapter 17. Article 17.5 further
Deputy Secretary. requires, unless the parties otherwise
CAFTA–DR countries through a number
[FR Doc. 2016–14840 Filed 6–22–16; 8:45 am] agree, that each meeting of the Council
of side events and interactive
BILLING CODE 8011–01–P
presentations. If you would like to include a session in which members of
attend the public session, please notify the Council have an opportunity to meet
Neal Morris and Laura Buffo at the with the public to discuss matters
DEPARTMENT OF STATE email addresses listed under the relating to the implementation of
[Public Notice: 9614] heading ADDRESSES. Please include your Chapter 17.
full name and identify any organization In Article 17.9, the parties recognize
Notification of the Next CAFTA–DR or group you represent. the importance of strengthening
Environmental Affairs Council Meeting The Department of State and Office of capacity to protect the environment and
the United States Trade Representative to promote sustainable development in
AGENCY: Department of State.
also invite written comments or concert with strengthening trade and
ACTION:Notice of the CAFTA–DR suggestions to be submitted before July investment relations and state their
Environmental Affairs Council Meeting 1, 2016 regarding topics to be discussed commitment to expanding their
and request for comments. at the Council meeting. In preparing cooperative relationship on
SUMMARY: The Department of State and comments, we encourage submitters to environmental matters. Article 17.9 also
the Office of the United States Trade refer to Chapter 17 of the CAFTA–DR, references the ECA, which sets out
Representative are providing notice that the Final Environmental Review of the certain priority areas of cooperation on
the parties to the Dominican Republic- CAFTA–DR, and the CAFTA–DR environmental activities. These priority
Central America-United States Free Environmental Cooperation Agreement areas include, among others:
Trade Agreement (CAFTA–DR) intend (ECA) (documents available at http:// Reinforcing institutional and legal
to hold the tenth meeting of the www.state.gov/e/oes/eqt/trade/caftadr/ frameworks and the capacity to develop,
Environmental Affairs Council (the index.htm). Instructions on how to implement, administer, and enforce
Council) established under Chapter 17 submit comments are under the heading environmental laws, regulations,
(Environment) of that agreement in San ADDRESSES. standards and policies; conserving and
Salvador, El Salvador, on July 7 and 8, DATES: The public session of the managing shared, migratory and
2016. The Council will commemorate Council will be held on July 8, 2016, endangered species in international
the tenth anniversary of CAFTA–DR by from 9:00 a.m.–4:00 p.m. at the Hotel commercial trade and management of
highlighting the many environmental Sheraton Presidente in San Salvador, El protected areas; promoting best
accomplishments of the past ten years Salvador. We request comments and practices leading to sustainable
and charting a course for the future. On suggestions in writing no later than July management of the environment; and
July 7, the Council will meet to review 1, 2016. facilitating technology development and
implementation of Chapter 17 of ADDRESSES: Written comments or transfer and training to promote clean
CAFTA–DR and the CAFTA–DR suggestions should be submitted to production technologies. In preparing
Environmental Cooperation Agreement both: comments, we encourage submitters to
(ECA). All interested persons are invited (1) Neal Morris, U.S. Department of refer to:
to attend the Council’s public session State, Bureau of Oceans and • Chapter 17 of the CAFTA–DR,
beginning at 9:00 a.m. on July 8 at the International Environmental and • The Final Environmental Review of
Hotel Sheraton Presidente in San Scientific Affairs, Office of CAFTA–DR, and
Salvador. Environmental Quality and • The ECA.
During the July 7 Council meeting, Transboundary Issues by email to These documents are available at:
Council members will present the MorrisND@state.gov with the subject http://www.state.gov/e/oes/eqt/trade/
progress made and challenges in line ‘‘CAFTA–DR EAC Meeting’’ or by caftadr/index.htm. Visit http://
implementing Chapter 17 obligations as fax to (202) 647–5947; and www.state.gov and the USTR Web site at
well as the outcomes achieved through (2) Laura Buffo, Director for
asabaliauskas on DSK3SPTVN1PROD with NOTICES
www.ustr.gov for more information.
environmental cooperation in their Environment and Natural Resources,
respective countries. The Council will Office of the United States Trade Dated: June 17, 2016.
also receive a presentation from the Representative by email to Laura_ Robert Wing,
CAFTA–DR Secretariat for Buffo@ustr.eop.gov with the subject line Acting Director, Office of Environmental
Environmental Matters (SEM). More ‘‘CAFTA–DR EAC Meeting’’ or by fax to Quality and Transboundary Issues, U.S.
information on the Council is included (202) 395–9517. Department of State.
below under SUPPLEMENTARY If you have access to the Internet you [FR Doc. 2016–14927 Filed 6–22–16; 8:45 am]
INFORMATION. can view and comment on this notice by BILLING CODE 4710–09–P
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Document Created: 2018-02-08 07:41:35
Document Modified: 2018-02-08 07:41:35
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 40935 |
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