81 FR 53529 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 156 (August 12, 2016)

Page Range		53529-53530
FR Document		2016-19207
Federal Register, Volume 81 Issue 156 (Friday, August 12, 2016)
[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Notices]
[Pages 53529-53530]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19207]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copy Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-2736.

Extension:
    Rule 0-4, SEC File No. 270-569, OMB Control No. 3235-0633.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (the ``Commission'') is soliciting comments on the 
collection of information summarized below. The Commission plans to 
submit this collection of information to the Office of Management and 
Budget for extension and approval.
    Rule 0-4 (17 CFR 275.0-4) under the Investment Advisers Act of 1940 
(``Act'' or ``Advisers Act'') (15 U.S.C. 80b-1 et seq.) entitled 
``General Requirements of Papers and Applications,'' prescribes general 
instructions for filing an application seeking exemptive relief with 
the Commission. Rule 0-4 currently requires that every application for 
an order for which a form is not specifically prescribed and which is 
executed by a corporation, partnership or other company and filed with 
the Commission contain a statement of the applicable provisions of the 
articles of incorporation, bylaws or similar documents, relating to the 
right of the person signing and filing such application to take such 
action on behalf of the applicant, and a statement that all such 
requirements have been complied with and that the person signing and 
filing the application is fully authorized to do so. If such 
authorization is dependent on resolutions of stockholders, directors, 
or other bodies, such resolutions must be attached as an exhibit to or 
quoted in the application. Any amendment to the application must 
contain a similar statement as to the applicability of the original 
statement of authorization. When any application or amendment is signed 
by an agent or attorney, rule 0-4 requires that the power of attorney 
evidencing his authority to sign shall state the basis for the agent's 
authority and shall be filed with the Commission. Every application 
subject to rule 0-4 must be verified by the person executing the 
application by providing a notarized signature in substantially the 
form specified in the rule. Each application subject to rule 0-4 must 
state the reasons why the applicant is deemed to be entitled to the 
action requested with a reference to the provisions of the Act and 
rules thereunder, the name and address of each applicant, and the name 
and address of any person to whom any questions regarding the 
application should be directed. Rule 0-4 requires that a proposed 
notice of the proceeding initiated by the filing of the application 
accompany each application as an exhibit and, if necessary, be modified 
to reflect any amendment to the application.
    The requirements of rule 0-4 are designed to provide Commission 
staff with the necessary information to assess whether granting the 
orders of exemption are necessary and appropriate in the public 
interest and consistent with the protection of investors and the 
intended purposes of the Act.
    Applicants for orders under the Advisers Act can include registered 
investment advisers, affiliated persons of registered investment 
advisers, and entities seeking to avoid investment adviser status, 
among others. Commission staff estimates that it receives up to 3 
applications per year submitted under rule 0-4 of the Act seeking 
relief from various provisions of the Advisers Act and, in addition, up 
to 9 applications per year submitted under Advisers Act rule 206(4)-5, 
which addresses certain ``pay to play'' practices and also provides the 
Commission the authority to grant applications seeking relief from 
certain of the rule's restrictions. Although each application typically 
is submitted on behalf of multiple applicants, the applicants in the 
vast majority of cases are related entities and are treated as a single 
respondent for purposes of this analysis. Most of the work of preparing 
an application is performed by outside counsel and, therefore, imposes 
no hourly burden on respondents. The cost outside counsel charges 
applicants depends on the complexity of the issues covered by the 
application and the time required. Based on conversations with 
applicants and attorneys, the cost for applications ranges from 
approximately $12,800 for preparing a well-precedent, routine (or 
otherwise less involved)

[[Page 53530]]

application to approximately $200,000 to prepare a complex or novel 
application. We estimate that the Commission receives 1 of the most 
time-consuming applications annually, 2 applications of medium 
difficulty, and 9 of the least difficult applications subject to rule 
0-4.\1\ This distribution gives a total estimated annual cost burden to 
applicants of filing all applications of $402,200 [(1 x $200,000) + (2 
x $43,500) + (9 x $12,800)]. The estimate of annual cost burden is made 
solely for the purposes of the Paperwork Reduction Act, and is not 
derived from a comprehensive or even representative survey or study of 
the costs of Commission rules and forms.
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    \1\ The estimated 9 least difficult applications include the 
estimated 9 applications per year submitted under Advisers Act rule 
206(4)-5.
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    The requirements of this collection of information are required to 
obtain or retain benefits. Responses will not be kept confidential. 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 proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency'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 of this publication.
    Please direct your written comments to Pamela Dyson, Chief 
Information Officer, Securities and Exchange Commission, 100 F Street 
NE., Washington, DC 20549; or send an email to: PRA_Mailbox@sec.gov.

    Dated: August 9, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19207 Filed 8-11-16; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices 53529

whether the proposed rule should be For the Commission, by the Division of attorney, rule 0–4 requires that the
approved or disapproved. Trading and Markets, pursuant to delegated power of attorney evidencing his
authority.15 authority to sign shall state the basis for
IV. Solicitation of Comments Robert W. Errett, the agent’s authority and shall be filed
Deputy Secretary. with the Commission. Every application
Interested persons are invited to
submit written data, views and
[FR Doc. 2016–19174 Filed 8–11–16; 8:45 am] subject to rule 0–4 must be verified by
BILLING CODE 8011–01–P the person executing the application by
arguments concerning the foregoing,
providing a notarized signature in
including whether the proposed rule
substantially the form specified in the
change is consistent with the Act. SECURITIES AND EXCHANGE rule. Each application subject to rule 0–
Comments may be submitted by any of COMMISSION 4 must state the reasons why the
the following methods: applicant is deemed to be entitled to the
Proposed Collection; Comment action requested with a reference to the
Electronic Comments Request provisions of the Act and rules
• Use the Commission’s Internet Upon Written Request, Copy Available thereunder, the name and address of
comment form (http://www.sec.gov/ From: Securities and Exchange each applicant, and the name and
rules/sro.shtml); or Commission, Office of FOIA Services, address of any person to whom any
questions regarding the application
• Send an email to rule-comments@ 100 F Street NE., Washington, DC
20549–2736. should be directed. Rule 0–4 requires
sec.gov. Please include File No. SR–
that a proposed notice of the proceeding
MIAX–2016–23 on the subject line. Extension:
initiated by the filing of the application
Rule 0–4, SEC File No. 270–569, OMB
Paper Comments Control No. 3235–0633. accompany each application as an
exhibit and, if necessary, be modified to
• Send paper comments in triplicate Notice is hereby given that pursuant reflect any amendment to the
to Secretary, Securities and Exchange to the Paperwork Reduction Act of 1995 application.
Commission, 100 F Street NE., (44 U.S.C. 3501 et seq.), the Securities The requirements of rule 0–4 are
Washington, DC 20549–1090. and Exchange Commission (the designed to provide Commission staff
‘‘Commission’’) is soliciting comments with the necessary information to assess
All submissions should refer to File No. on the collection of information whether granting the orders of
SR–MIAX–2016–23. This file number summarized below. The Commission exemption are necessary and
should be included on the subject line plans to submit this collection of appropriate in the public interest and
if email is used. To help the information to the Office of consistent with the protection of
Commission process and review your Management and Budget for extension investors and the intended purposes of
comments more efficiently, please use and approval. the Act.
only one method. The Commission will Rule 0–4 (17 CFR 275.0–4) under the Applicants for orders under the
post all comments on the Commission’s Investment Advisers Act of 1940 (‘‘Act’’ Advisers Act can include registered
Internet Web site (http://www.sec.gov/ or ‘‘Advisers Act’’) (15 U.S.C. 80b–1 et investment advisers, affiliated persons
rules/sro.shtml). Copies of the seq.) entitled ‘‘General Requirements of of registered investment advisers, and
Papers and Applications,’’ prescribes entities seeking to avoid investment
submission, all subsequent
general instructions for filing an adviser status, among others.
amendments, all written statements
application seeking exemptive relief Commission staff estimates that it
with respect to the proposed rule
with the Commission. Rule 0–4 receives up to 3 applications per year
change that are filed with the currently requires that every application
Commission, and all written submitted under rule 0–4 of the Act
for an order for which a form is not seeking relief from various provisions of
communications relating to the specifically prescribed and which is the Advisers Act and, in addition, up to
proposed rule change between the executed by a corporation, partnership 9 applications per year submitted under
Commission and any person, other than or other company and filed with the Advisers Act rule 206(4)–5, which
those that may be withheld from the Commission contain a statement of the addresses certain ‘‘pay to play’’
public in accordance with the applicable provisions of the articles of practices and also provides the
provisions of 5 U.S.C. 552, will be incorporation, bylaws or similar Commission the authority to grant
available for Web site viewing and documents, relating to the right of the applications seeking relief from certain
printing in the Commission’s Public person signing and filing such of the rule’s restrictions. Although each
Reference Room, 100 F Street, NE., application to take such action on behalf application typically is submitted on
Washington, DC 20549 on official of the applicant, and a statement that all behalf of multiple applicants, the
business days between the hours of such requirements have been complied applicants in the vast majority of cases
10:00 a.m. and 3:00 p.m. Copies of the with and that the person signing and are related entities and are treated as a
filing also will be available for filing the application is fully authorized single respondent for purposes of this
inspection and copying at the principal to do so. If such authorization is analysis. Most of the work of preparing
office of the MIAX. All comments dependent on resolutions of an application is performed by outside
received will be posted without change; stockholders, directors, or other bodies, counsel and, therefore, imposes no
the Commission does not edit personal such resolutions must be attached as an hourly burden on respondents. The cost
exhibit to or quoted in the application. outside counsel charges applicants
mstockstill on DSK3G9T082PROD with NOTICES

identifying information from
submissions. You should submit only Any amendment to the application must depends on the complexity of the issues
contain a similar statement as to the covered by the application and the time
information that you wish to make
applicability of the original statement of required. Based on conversations with
available publicly. All submissions
authorization. When any application or applicants and attorneys, the cost for
should refer to File No. SR–MIAX– applications ranges from approximately
amendment is signed by an agent or
2016–23 and should be submitted on or $12,800 for preparing a well-precedent,
before September 2, 2016. 15 17 CFR 200.30–3(a)(12). routine (or otherwise less involved)

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53530 Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices

application to approximately $200,000 SECURITIES AND EXCHANGE CP submitted prices generated by the
to prepare a complex or novel COMMISSION sorting and ranking process for which
application. We estimate that the the bid price of one CP is above the offer
[Release No. 34–78501; File No. SR–ICC–
Commission receives 1 of the most time- price of the matched CP. The algorithm
2016–007]
consuming applications annually, 2 identifies locked markets, where the bid
applications of medium difficulty, and 9 Self-Regulatory Organizations; ICE and the offer are equal, in a similar
of the least difficult applications subject Clear Credit LLC; Order Approving fashion.
to rule 0–4.1 This distribution gives a Proposed Rule Change To Revise the ICC designates certain crossed and/or
total estimated annual cost burden to ICC End-of-Day Price Discovery locked markets as Firm Trades and CPs
Policies and Procedures are entered into cleared transactions.
applicants of filing all applications of
ICC establishes pre-defined notional
$402,200 [(1 × $200,000) + (2 × $43,500) August 8, 2016 amounts for Firm Trades. According to
+ (9 × $12,800)]. The estimate of annual ICC, no single Firm Trade can have a
cost burden is made solely for the I. Introduction
larger notional amount than specified by
purposes of the Paperwork Reduction On April 22, 2016, ICE Clear Credit the pre-defined notional amount for the
Act, and is not derived from a LLC (‘‘ICC’’) filed with the Securities relevant instrument. On a given Firm
comprehensive or even representative and Exchange Commission Trade day, all potential-trades resulting
survey or study of the costs of (‘‘Commission’’), pursuant to Section from the cross-and-lock algorithm in
Commission rules and forms. 19(b)(1) of the Securities Exchange Act any Firm Trade eligible instrument are
The requirements of this collection of (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a designated Firm Trades, unless they
information are required to obtain or proposed rule change relating to ICC’s breach a CP’s notional limits.
End-of-Day Price Discovery Policies and Currently single name Firm Trade
retain benefits. Responses will not be
Procedures (the ‘‘EOD Policy’’). The notional limits are set at the CP level.
kept confidential. An agency may not
proposed rule change was published for According to ICC, it designed the Firm
conduct or sponsor, and a person is not
comment in the Federal Register on Trade system to incentivize trading
required to respond to a collection of May 11, 2016.3 On June 23, 2016, the
information unless it displays a desks to provide quality end-of-day
Commission extended the time period price submissions for use in its end-of-
currently valid control number. in which to either approve, disapprove, day price discovery process, while
Written comments are invited on: (a) or institute proceedings to determine limiting the total overnight risk that a
Whether the proposed collection of whether to disapprove the proposed given institution may be required to
information is necessary for the proper rule change to August 9, 2016.4 The manage in case of submission errors or
performance of the functions of the Commission did not receive comments outlying pricing submissions which
agency, including whether the on the proposed rule change. For the may lead to Firm Trades. One
information will have practical utility; reasons discussed below, the mechanism introduced to provide these
(b) the accuracy of the agency’s estimate Commission is approving the proposed protections was single name Firm Trade
of the burden of the collection of rule change. notional limits per CP. ICC believes that
information; (c) ways to enhance the II. Description of the Proposed Rule at the time of its introduction, this
quality, utility, and clarity of the Change mechanism achieved its goal of limiting
information collected; and (d) ways to overnight risk limits per institution.
The principal purpose of the However, with the increase in client
minimize the burden of the collection of proposed rule change is to revise the
information on respondents, including clearing and in multiple CP
EOD Policy to change the calculation of memberships per holding company, ICC
through the use of automated collection single name firm trade (‘‘Firm Trade’’)
techniques or other forms of information asserts that the limit provided to a given
notional limits to be at a Clearing institution is multiples of that originally
technology. Consideration will be given Participant (‘‘CP’’) affiliate group level.
to comments and suggestions submitted contemplated.
As part of ICC’s end-of-day price In addition, because of recent changes
in writing within 60 days of this discovery process, ICC CPs are required to the EOD Policy to extend the process
publication. to submit end-of-day prices for specific for determining Firm Trades to include
Please direct your written comments instruments related to their open all submissions, including those
to Pamela Dyson, Chief Information interest at ICC. ICC determines end-of- classified as outlying pricing
Officer, Securities and Exchange day levels directly from these CP price submissions (or ‘‘obvious errors’’),5 ICC
Commission, 100 F Street NE., submissions using a proprietary asserts that CPs are eligible to receive
algorithm. To encourage CPs to provide Firm Trades on a wider range of price
Washington, DC 20549; or send an email
high quality end-of-day submissions, on submissions. Due to the broadened
to: PRA_Mailbox@sec.gov.
random days, ICC selects a subset of scope of the Firm Trade process, ICC
Dated: August 9, 2016. instruments which are eligible for Firm asserts a heightened interest in adjusting
Robert W. Errett, Trades. In order to determine Firm the allocation process so that CPs are
Deputy Secretary. Trade requirements, the algorithm sorts not over-penalized for Firm Trades in
[FR Doc. 2016–19207 Filed 8–11–16; 8:45 am] and ranks all CP submissions and terms of overnight risk exposure.
identifies ‘‘crossed and/or locked In order to maintain the original
BILLING CODE 8011–01–P
markets.’’ Crossed markets are pairs of intent of the end-of-day price discovery
mstockstill on DSK3G9T082PROD with NOTICES

process, ICC has proposed changes to its
1 15 U.S.C. 78s(b)(1).
2 17
EOD Policy to implement single name
CFR 240.19b–4.
3 Securities Exchange Act Release No. 34–77771
Firm Trade notional limits at the CP
(May 5, 2016), 81 FR 29309 (May 11, 2016) (SR– affiliate group level, as opposed to the
ICC–2016–007).
1 The estimated 9 least difficult applications 4 Securities Exchange Act Release No. 34–78144 5 See Securities Exchange Act Release No. 34–
include the estimated 9 applications per year (June 23, 2016), 81 FR 42018 (June 28, 2016) (SR– 74053 (January 14, 2015), 80 FR 2985 (January 21,
submitted under Advisers Act rule 206(4)–5. ICC–2016–007). 2015) (SR–ICC–2015–001).

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Document Created: 2018-02-09 11:32:54
Document Modified: 2018-02-09 11:32:54
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 53529