81 FR 49347 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 144 (July 27, 2016)
Federal Register Volume 81, Issue 144 (July 27, 2016)
| Page Range | 49347-49348 | |
| FR Document | 2016-17821 |
[Federal Register Volume 81, Number 144 (Wednesday, July 27, 2016)] [Notices] [Pages 49347-49348] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-17821] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; 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-5 and Form PILOT, SEC File No. 270-448, OMB Control No. 3235-0507. 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'') has submitted to the Office of Management and Budget (``OMB'') a request for approval of extension of the previously approved collection of information provided for in Rule 19b-5 (17 CFR 240.19b-5) and Form PILOT (17 CFR 249.821) under the Securities Exchange Act of 1934 (``Act'') (15 U.S.C. 78a et seq.). Rule 19b-5 provides a temporary exemption from the rule-filing requirements of Section 19(b) of the Act (15 U.S.C. 78s(b)) to self- regulatory organizations (``SROs'') wishing to establish and operate pilot trading systems. Rule 19b-5 permits an SRO to develop a pilot trading system and to begin operation of such system shortly after submitting an initial report on Form PILOT to the Commission. During operation of any such pilot trading system, the SRO must submit quarterly reports of the system's operation to the Commission, as well as timely amendments describing any material changes to the system. Within two years of operating such pilot trading system under the exemption afforded by Rule 19b-5, the SRO must submit a rule filing pursuant to Section 19(b)(2) of the Act (15 U.S.C. 78s(b)(2)) to obtain permanent approval of the pilot trading system from the Commission. The collection of information is designed to allow the Commission to maintain an accurate record of all new pilot trading systems operated by SROs and to determine whether an SRO has properly availed itself of the exemption afforded by Rule 19b-5, is operating a [[Page 49348]] pilot trading system in compliance with the Act, and is carrying out its statutory oversight obligations under the Act. The respondents to the collection of information are national securities exchanges and national securities associations. While there are 20 national securities exchanges and national securities associations that may avail themselves of the exemption under Rule 19b-5 and the use of Form PILOT, it is estimated that approximately three respondents will file a total of 3 initial reports (for an estimated annual burden of 72 hours total), 12 quarterly reports (for an estimated annual burden of 36 hours total), and 6 amendments (for an estimated annual burden of 18 hours total) on Form PILOT per year, with an estimated total annual response burden of 126 hours and an estimated total annual cost burden of $10,047. At an average hourly cost of $272.33, the aggregate related internal cost of compliance pertaining to Rule 19b-5 for all respondents is $34,314 per year (126 burden hours multiplied by $272.33/hour = $34,314). Although Rule 19b-5 does not in itself impose recordkeeping burdens on SROs, it relies on existing requirements imposed by Rule 17a-1 under the Act (17 CFR 240.17a-1) to require SROs to retain all the rules and procedures relating to each pilot trading system operating pursuant to Rule 19b-5, and to make such records available for Commission inspection for a period of not less than five years, the first two years in an easily accessible place. The filing of a Form PILOT is mandatory for any SRO seeking a temporary exemption under Rule 19b-5 from the rule filing requirements of Section 19(b) of the Act in connection with the operation of a pilot trading system. It is also mandatory that an SRO operating a pilot trading system file with the Commission notices of material systems changes and quarterly transaction reports on Form PILOT. Information provided on Form PILOT is deemed confidential and shall be available only for examination by the Commission, other agencies of the Federal Government, and state securities authorities. 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. The public may view background documentation for this information collection at the following Web site, www.reginfo.gov. Comments should be directed to: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, or by sending an email to: [email protected]; and (ii) 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]. Comments must be submitted to OMB within 30 days of this notice. July 22, 2016. Brent J. Fields, Secretary. [FR Doc. 2016-17821 Filed 7-26-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Notices 49347
investors and the public interest in that proposed rule change should be For the Commission, by the Division of
it will facilitate the listing and trading disapproved. Trading and Markets, pursuant to delegated
of the Funds, which seek to provide authority.35
investors with access to a broad range of IV. Solicitation of Comments Robert W. Errett,
actively managed investment strategies Deputy Secretary.
Interested persons are invited to
in a structure that offers the cost and tax submit written data, views, and
[FR Doc. 2016–17671 Filed 7–26–16; 8:45 am]
efficiencies and shareholder protections arguments concerning the foregoing, BILLING CODE 8011–01–P
of ETFs, while removing the
including whether the proposed rule
requirement for daily portfolio holdings
change is consistent with the Act. SECURITIES AND EXCHANGE
disclosure to ensure a tight relationship
Comments may be submitted by any of COMMISSION
between market trading prices and
NAV. the following methods:
Submission for OMB Review;
For the above reasons, Nasdaq Electronic Comments Comment Request
believes the proposed rule change is
consistent with the requirements of • Use the Commission’s Internet Upon Written Request, Copies Available
Section 6(b)(5) of the Act. comment form (http://www.sec.gov/ From: Securities and Exchange
rules/sro.shtml); or Commission, Office of FOIA Services,
B. Self-Regulatory Organization’s
Statement on Burden on Competition • Send an email to rule-comments@ 100 F Street NE., Washington, DC
sec.gov. Please include File Number SR– 20549–2736.
The Exchange does not believe that NASDAQ–2016–103 on the subject line. Extension:
the proposed rule change will result in Rule 19b–5 and Form PILOT, SEC File No.
any burden on competition that is not Paper Comments 270–448, OMB Control No. 3235–0507.
necessary or appropriate in furtherance Notice is hereby given that, pursuant
of the purposes of the Act. In fact, the • Send paper comments in triplicate
to Secretary, Securities and Exchange to the Paperwork Reduction Act of 1995
Exchange believes that the introduction (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
of the Funds would promote Commission, 100 F Street NE.,
Washington, DC 20549–1090. Securities and Exchange Commission
competition by making available to (‘‘Commission’’) has submitted to the
investors a broad range of actively All submissions should refer to File Office of Management and Budget
managed investment strategies in a Number SR–NASDAQ–2016–103. This (‘‘OMB’’) a request for approval of
structure that offers the cost and tax file number should be included on the extension of the previously approved
efficiencies and shareholder protections subject line if email is used. To help the collection of information provided for in
of ETFs, while removing the Rule 19b–5 (17 CFR 240.19b–5) and
Commission process and review your
requirement for daily portfolio holdings Form PILOT (17 CFR 249.821) under the
comments more efficiently, please use
disclosure to ensure a tight relationship Securities Exchange Act of 1934 (‘‘Act’’)
only one method. The Commission will
between market trading prices and (15 U.S.C. 78a et seq.).
NAV. Moreover, the Exchange believes post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ Rule 19b–5 provides a temporary
that the proposed method of Share exemption from the rule-filing
trading would provide investors with rules/sro.shtml). Copies of the
requirements of Section 19(b) of the Act
transparency of trading costs, and the submission, all subsequent
(15 U.S.C. 78s(b)) to self-regulatory
ability to control trading costs using amendments, all written statements
organizations (‘‘SROs’’) wishing to
limit orders, that is not available for with respect to the proposed rule establish and operate pilot trading
conventionally traded ETFs. change that are filed with the systems. Rule 19b–5 permits an SRO to
These developments could Commission, and all written develop a pilot trading system and to
significantly enhance competition to the communications relating to the begin operation of such system shortly
benefit of the markets and investors. proposed rule change between the after submitting an initial report on
Commission and any person, other than Form PILOT to the Commission. During
C. Self-Regulatory Organization’s those that may be withheld from the
Statement on Comments on the operation of any such pilot trading
public in accordance with the system, the SRO must submit quarterly
Proposed Rule Change Received From
provisions of 5 U.S.C. 552, will be reports of the system’s operation to the
Members, Participants, or Others
available for Web site viewing and Commission, as well as timely
No written comments were either printing in the Commission’s Public amendments describing any material
solicited or received. Reference Room, 100 F Street NE., changes to the system. Within two years
III. Date of Effectiveness of the Washington, DC 20549, on official of operating such pilot trading system
Proposed Rule Change and Timing for business days between the hours of under the exemption afforded by Rule
Commission Action 10:00 a.m. and 3:00 p.m. Copies of such 19b–5, the SRO must submit a rule
filing will also be available for filing pursuant to Section 19(b)(2) of the
Within 45 days of the date of inspection and copying at the principal Act (15 U.S.C. 78s(b)(2)) to obtain
publication of this notice in the Federal office of the Exchange. All comments permanent approval of the pilot trading
Register or within such longer period received will be posted without change; system from the Commission.
up to 90 days (i) as the Commission may The collection of information is
the Commission does not edit personal
designate if it finds such longer period
sradovich on DSK3GMQ082PROD with NOTICES
identifying information from designed to allow the Commission to
to be appropriate and publishes its maintain an accurate record of all new
submissions. You should submit only
reasons for so finding or (ii) as to which pilot trading systems operated by SROs
the self-regulatory organization information that you wish to make
and to determine whether an SRO has
consents, the Commission will: (a) By available publicly. All submissions properly availed itself of the exemption
order approve or disapprove such should refer to File Number SR– afforded by Rule 19b–5, is operating a
proposed rule change; or (b) institute NASDAQ–2016–103 and should be
proceedings to determine whether the submitted on or before August 17, 2016. 35 17 CFR 200.30–3(a)(12).
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![49348 Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Notices
pilot trading system in compliance with Office of Information and Regulatory provisions of the Regulation NMS Plan
the Act, and is carrying out its statutory Affairs, Office of Management and to Implement a Tick Size Pilot Program
oversight obligations under the Act. Budget, Room 10102, New Executive (the ‘‘Plan’’).5 The proposed rule change
The respondents to the collection of Office Building, Washington, DC 20503, is substantially similar to proposed rule
information are national securities or by sending an email to: Shagufta_ changes recently approved or published
exchanges and national securities Ahmed@omb.eop.gov; and (ii) Pamela by the Commission by New York Stock
associations. Dyson, Director/Chief Information Exchange LLC to adopt NYSE Rules
While there are 20 national securities Officer, Securities and Exchange 67(a) and 67(c)–(e), which also
exchanges and national securities Commission, c/o Remi Pavlik-Simon, implemented the quoting and trading
associations that may avail themselves 100 F Street NE., Washington, DC 20549 provisions of the Plan.6 Therefore, the
of the exemption under Rule 19b–5 and or by sending an email to: PRA_ Exchange has designated this proposal
the use of Form PILOT, it is estimated Mailbox@sec.gov. Comments must be as ‘‘non-controversial’’ and provided the
that approximately three respondents submitted to OMB within 30 days of Commission with the notice required by
will file a total of 3 initial reports (for this notice. Rule 19b–4(f)(6)(iii) under the Act.7
an estimated annual burden of 72 hours July 22, 2016. The text of the proposed rule change
total), 12 quarterly reports (for an is available at the Exchange’s Web site
Brent J. Fields,
estimated annual burden of 36 hours at www.nsx.com, at the principal office
total), and 6 amendments (for an Secretary.
[FR Doc. 2016–17821 Filed 7–26–16; 8:45 am] of the Exchange, and at the
estimated annual burden of 18 hours
Commission’s Public Reference Room.
total) on Form PILOT per year, with an BILLING CODE 8011–01–P
estimated total annual response burden II. Self-Regulatory Organization’s
of 126 hours and an estimated total Statement of the Purpose of, and
annual cost burden of $10,047. At an SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
average hourly cost of $272.33, the COMMISSION Change
aggregate related internal cost of [Release No. 34–78391; File No. SR–NSX–
compliance pertaining to Rule 19b–5 for 2016–05]
In its filing with the Commission, the
all respondents is $34,314 per year (126 Exchange included statements
burden hours multiplied by $272.33/ Self-Regulatory Organizations; concerning the purpose of and basis for
hour = $34,314). National Stock Exchange, Inc.; Notice the proposed rule change and discussed
Although Rule 19b–5 does not in of Filing and Immediate Effectiveness any comments it received on the
itself impose recordkeeping burdens on of a Proposed Rule Change To Amend proposed rule change. The text of these
SROs, it relies on existing requirements Exchange Rule 11.26 To Implement the statements may be examined at the
imposed by Rule 17a–1 under the Act Quoting and Trading Provisions of the places specified in Item IV below. The
(17 CFR 240.17a–1) to require SROs to Regulation NMS Plan To Implement a Exchange has prepared summaries, set
retain all the rules and procedures Tick Size Pilot Program forth in Sections A, B, and C below, of
relating to each pilot trading system the most significant parts of such
July 21, 2016. statements.
operating pursuant to Rule 19b–5, and
Pursuant to Section 19(b)(1) of the
to make such records available for A. Self-Regulatory Organization’s
Securities Exchange Act of 1934 (the
Commission inspection for a period of Statement of the Purpose of, and the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
not less than five years, the first two Statutory Basis for, the Proposed Rule
notice is hereby given that on July 11,
years in an easily accessible place. 2016, National Stock Exchange, Inc. Change
The filing of a Form PILOT is
(‘‘NSX’’ or the ‘‘Exchange’’) filed with 1. Purpose
mandatory for any SRO seeking a
the Securities and Exchange
temporary exemption under Rule 19b–5 The Exchange proposes to establish
Commission (‘‘SEC’’ or ‘‘Commission’’)
from the rule filing requirements of rules to require its ETP Holders 8 to
the proposed rule change, as described
Section 19(b) of the Act in connection comply with the requirements of the
in Items I, II, and III below, which Items
with the operation of a pilot trading Plan,9 which is designed to study and
have been substantially prepared by the
system. It is also mandatory that an SRO assess the impact of increment
Exchange. The Exchange has designated
operating a pilot trading system file this proposal as a ‘‘non-controversial’’ conventions on the liquidity and trading
with the Commission notices of material proposed rule change pursuant to of the common stocks of small
systems changes and quarterly Section 19(b)(3)(A) of the Act 3 and Rule capitalization companies. The Exchange
transaction reports on Form PILOT. 19b–4(f)(6)(iii) 4 thereunder, which proposes changes to its rules for a two-
Information provided on Form PILOT is renders it effective upon filing with the year pilot period that coincides with the
deemed confidential and shall be Commission. The Commission is pilot period for the Plan, which is
available only for examination by the publishing this notice to solicit
Commission, other agencies of the comments on the proposed rule change 5 17 CFR 242.608.
Federal Government, and state from interested persons. 6 See Securities Exchange Act Release No. 76229
securities authorities. (October 22, 2015), 80 FR 66065 (October 28, 2015)
An agency may not conduct or I. Self-Regulatory Organization’s (SR–NYSE–2015–46), as amended by Partial
sponsor, and a person is not required to Statement of the Terms of Substance of Amendments No. 1 and No. 2 to the Quoting &
the Proposed Rule Change Trading Rules Proposal. See Securities Exchange
respond to, a collection of information Act Release No. 77703 (April 25, 2016), 81 FR
sradovich on DSK3GMQ082PROD with NOTICES
under the PRA unless it displays a The Exchange filed a proposal to 25725 (April 29, 2016) (SR–NYSE–2015–46).
currently valid OMB control number. amend Exchange Rule 11.26 to 7 17 CFR 240.19b–4(f)(6)(iii).
The public may view background implement the quoting and trading 8 Rule 1.5E(1) defines the term ‘‘ETP’’ as an
documentation for this information Equity Trading Permit issued by the Exchange for
collection at the following Web site, effecting approved securities transactions on the
1 15 U.S.C. 78s(b)(1). Exchange’s trading facilities.
www.reginfo.gov. Comments should be 2 17 CFR 240.19b–4. 9 See Securities and Exchange Act Release No.
directed to: (i) Desk Officer for the 3 15 U.S.C. 78s(b)(3)(A).
74892 (May 6, 2015), 80 FR 27513 (May 13, 2015)
Securities and Exchange Commission, 4 17 CFR 240.19b–4(f)(6)(iii). (File No. 4–657) (‘‘Plan Approval Order’’).
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Document Created: 2018-02-08 08:02:33
Document Modified: 2018-02-08 08:02:33
| 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 49347 |
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