81 FR 46978 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 138 (July 19, 2016)

Page Range		46978-46979
FR Document		2016-17000

Federal Register, Volume 81 Issue 138 (Tuesday, July 19, 2016)

[Federal Register Volume 81, Number 138 (Tuesday, July 19, 2016)]
[Notices]
[Pages 46978-46979]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17000]


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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:
    Form Custody, SEC File No. 270-643, OMB Control No. 3235-0691.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the existing 
collection of information provided for in Form Custody (17 CFR 249.639) 
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
(``Exchange Act''). The Commission plans to submit this existing 
collection of information to the Office of Management and Budget 
(``OMB'') for extension and approval.
    Section 17(a)(1) of the Exchange Act provides that broker-dealers 
registered with the Commission must make and keep records, furnish 
copies of the records, and make and disseminate reports as the 
Commission, by rule, prescribes. Pursuant to this authority, the 
Commission adopted Rule 17a-5 (17 CFR 240.17a-5), which is one of the 
primary financial and operational reporting rules for broker-
dealers.\1\ Paragraph (a)(5) of Rule 17-5 requires every broker-dealer 
registered with the Commission to file Form Custody (17 CFR 249.639) 
with its designated examining authority (``DEA'') within 17 business 
days after the end of each calendar quarter and within 17 business days 
after the date selected for the broker-dealer's annual report if that 
date is not the end of a calendar quarter. Form Custody is designed to 
elicit information about whether a broker-dealer maintains custody of 
customer and non-customer assets, and, if so, how such assets are 
maintained.
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    \1\ Rule 17a-5 is subject to a separate PRA filing (OMB Control 
Number 3235-0123).
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    There are approximately 4,113 broker-dealers registered with the 
Commission. Based on staff experience, the Commission estimates that, 
on average, it would take a broker-dealer approximately 12 hours to 
complete and file Form Custody, for an annual industry-wide reporting 
burden of approximately 197,424 hours.\2\ Assuming an average cost per 
hour of approximately $291for a compliance manager, the total internal 
cost of compliance for the respondents is approximately $57,450,384 per 
year.\3\
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    \2\ 4,113 brokers-dealers x 4 times per year x 12 hours = 
197,424 hours.
    \3\ 197,424 hours times $291 per hour = 57,450,384. $291 per 
hour for a compliance manager is from SIFMA's Management & 
Professional Earnings in the Securities Industry 2013, modified by 
Commission staff for an 1800-hour work-year, multiplied by 5.35 to 
account for bonuses, firm size, employee benefits, and overhead, and 
adjusted for inflation.
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    Written comments are invited on: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have 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 to be 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.
    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.

[[Page 46979]]

    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: July 13, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17000 Filed 7-18-16; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 138 / Tuesday, July 19, 2016 / Notices 46979

Please direct your written comments 67(a) and 67(c)-(e), which also ‘‘Participants’’), filed with the
to: Pamela Dyson, Director/Chief implemented the quoting and trading Commission, pursuant to Section 11A of
Information Officer, Securities and provisions of the Plan.5 the Act 6 and Rule 608 of Regulation
Exchange Commission, c/o Remi Pavlik- The text of the proposed rule change NMS thereunder, the Plan to Implement
Simon, 100 F Street NE., Washington, is available on the Exchange’s Web site a Tick Size Pilot Program.7 The
DC 20549, or send an email to: at http:// Participants filed the Plan to comply
PRA_Mailbox@sec.gov. nasdaqomxphlx.cchwallstreet.com/, at with an order issued by the Commission
Dated: July 13, 2016.
the principal office of the Exchange, and on June 24, 2014 (the ‘‘June 2014
at the Commission’s Public Reference Order’’).8 The Plan 9 was published for
Robert W. Errett,
Room. comment in the Federal Register on
Deputy Secretary.
[FR Doc. 2016–17000 Filed 7–18–16; 8:45 am] II. Self-Regulatory Organization’s November 7, 2014,10 and approved by
BILLING CODE 8011–01–P
Statement of the Purpose of, and the Commission, as modified, on May 6,
Statutory Basis for, the Proposed Rule 2015.11
Change The Plan is designed to allow the
SECURITIES AND EXCHANGE In its filing with the Commission, the Commission, market participants, and
COMMISSION Exchange included statements the public to study and assess the
[Release No. 34–78317; File No. SR–Phlx– concerning the purpose of and basis for impact of increment conventions on the
2016–73] the proposed rule change and discussed liquidity and trading of the common
any comments it received on the stocks of small capitalization
Self-Regulatory Organizations; proposed rule change. The text of these companies. The Commission plans to
NASDAQ PHLX LLC; Notice of Filing statements may be examined at the use the Tick Size Pilot Program to assess
and Immediate Effectiveness of places specified in Item IV below. The whether wider tick sizes enhance the
Proposed Rule Change To Adopt Rules Exchange has prepared summaries, set market quality of Pilot Securities for the
To Implement the Quoting and Trading forth in sections A, B, and C below, of
benefit of issuers and investors. Each
Provisions of the Plan To Implement a the most significant aspects of such
Participant is required to comply with,
Tick Size Pilot Program statements.
and to enforce compliance by its
July 13, 2016. A. Self-Regulatory Organization’s member organizations, as applicable,
Pursuant to Section 19(b)(1) of the Statement of the Purpose of, and the with the provisions of the Plan.
Securities Exchange Act of 1934 Statutory Basis for, the Proposed Rule
On October 9, 2015, the Operating
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Change
Committee approved the Exchange’s
notice is hereby given that on June 29, 1. Purpose [sic] proposed rules as model
2016, NASDAQ PHLX LLC (‘‘Phlx’’ or Participant rules that would require
‘‘Exchange’’) filed with the Securities The Exchange proposes to establish
rules to require its member compliance by a Participant’s member
and Exchange Commission (‘‘SEC’’ or organizations with the provisions of the
‘‘Commission’’) the proposed rule organizations to comply with the
requirements of the Plan, which is Plan, as applicable, and would establish
change as described in Items I, II, and written policies and procedures
III, below, which Items have been designed to study and assess the impact
of increment conventions on the reasonably designed to comply with
prepared by the Exchange. The
liquidity and trading of the common applicable quoting and trading
Commission is publishing this notice to
stocks of small capitalization requirements specified in the Plan.12 As
solicit comments on the proposed rule
companies. The Exchange proposes described more fully below, the
change from interested persons.
changes to its rules for a two-year pilot proposed rules would require member
I. Self-Regulatory Organization’s period that coincides with the pilot organizations to comply with the Plan
Statement of the Terms of Substance of period for the Plan, which is currently and provide for the widening of quoting
the Proposed Rule Change scheduled as a two year pilot to begin
The Exchange proposes to adopt rules on October 3, 2016. 6 15 U.S.C. 78k–1.
7 See Letter from Brendon J. Weiss, Vice
under Rule 3317 to implement the Background President, Intercontinental Exchange, Inc., to
quoting and trading provisions of the Secretary, Commission, dated August 25, 2014.
On August 25, 2014, NYSE Group,
Plan to Implement a Tick Size Pilot 8 See Securities Exchange Act Release No. 72460
Inc., on behalf of Bats BZX Exchange,
Program submitted to the Commission (June 24, 2014), 79 FR 36840 (June 30, 2014).
Inc. (f/k/a BATS Exchange, Inc.), Bats
pursuant to Rule 608 of Regulation 9 Unless otherwise specified, capitalized terms
BYX Exchange, Inc. (f/k/a BATS Y- used in this rule filing are based on the defined
NMS 3 under the Act (the ‘‘Plan’’).4 The
Exchange, Inc.), Chicago Stock terms of the Plan.
proposed rule change is substantially
Exchange, Inc., EDGA Exchange, Inc., 10 See Securities and Exchange Act Release No.
similar to proposed rule changes 73511 (November 3, 2014), 79 FR 66423 (File No.
EDGX Exchange, Inc., the Exchange
recently approved or published by the 4–657) (Tick Plan Filing).
[sic], Financial Industry Regulatory
Commission by New York Stock 11 See Tick Plan Approval Order, supra note 4.
Authority, Inc. (‘‘FINRA’’), NASDAQ See also Securities Exchange Act Release No. 77277
Exchange LLC to adopt NYSE Rules
OMX BX, Inc., NASDAQ OMX PHLX (March 3, 2016), 81 FR 12162 (March 8, 2016) (File
LLC, New York Stock Exchange LLC, No. 4–657), which amended the Plan to add
1 15 U.S.C. 78s(b)(1). National Stock Exchange, Inc. as a Participant.
2 17 CFR 240.19b–4. the Exchange [sic] and NYSE Arca, Inc., 12 The Operating Committee is required under
mstockstill on DSK3G9T082PROD with NOTICES

3 17 CFR 242.608. and the NYSE MKT LLC, (collectively, Section III(C)(2) of the Plan to ‘‘monitor the
4 See Securities and Exchange Act Release No. procedures established pursuant to the Plan and
74892 (May 6, 2015), 80 FR 27513 (File No. 4–657) 5 See Securities Exchange Act Release No. 76229 advise Participants with respect to any deficiencies,
(‘‘Tick Plan Approval Order’’). See also Securities (October 22, 2015), 80 FR 66065 (October 28, 2015) problems, or recommendations as the Operating
and Exchange Act Release No. 76382 (November 6, (SR–NYSE–2015–46), as amended by Partial Committee may deem appropriate.’’ The Operating
2015) (File No. 4–657), 80 FR 70284 (File No. 4– Amendments No. 1 and No. 2 to the Quoting & Committee is also required to ‘‘establish
657) (November 13, 2015), which extended the pilot Trading Rules Proposal. See Securities Exchange specifications and procedures for the
period commencement date from May 6, 2015 to Act Release No. 77703 (April 25, 2016), 81 FR implementation and operation of the Plan that are
October 3, 2016. 25725 (April 29, 2016) (SR–NYSE–2015–46). consistent with the provisions of the Plan.’’

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Document Created: 2016-07-19 01:10:50
Document Modified: 2016-07-19 01:10:50

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		81 FR 46978