81 FR 71558 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 200 (October 17, 2016)
Federal Register Volume 81, Issue 200 (October 17, 2016)
| Page Range | 71558-71559 | |
| FR Document | 2016-24977 |
[Federal Register Volume 81, Number 200 (Monday, October 17, 2016)] [Notices] [Pages 71558-71559] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-24977] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, [[Page 71559]] 100 F Street, NE., Washington, DC 20549-2736. Extension: Rule 17a-4. SEC File No. 270-198, OMB Control No. 3235-0279. 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 extension of the previously approved collection of information provided for in Rule 17a-4 (17 CFR 240.17a- 4), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). Rule 17a-4 requires approximately 4,104 active, registered exchange members, brokers and dealers (``broker-dealers'') to preserve for prescribed periods of time certain records required to be made by Rule 17a-3 and other Commission rules, and other kinds of records which firms make or receive in the ordinary course of business. Rule 17a-4 also permits broker-dealers to employ, under certain conditions, electronic storage media to maintain these required records. The records required to be maintained under Rule 17a-4 are used by examiners and other representatives of the Commission to determine whether broker-dealers are in compliance with, and to enforce their compliance with, the Commission's rules. There are approximately 4,104 active, registered broker-dealers. The staff estimates that the average amount of time necessary to preserve the books and records as required by Rule 17a-4 is 254 hours per broker-dealer per year. In addition, the Commission is moving into this information collection the annual burden hours for paragraph (b)(11) of Rule 17a-4, which requires any broker-dealer that sponsors an internal broker-dealer system to maintain certain records relating to such system for at least three years. The Commission estimates that paragraph (b)(11) of Rule 17a-4 imposes an annual burden of 3 hours per year to maintain the requisite records. The Commission estimates that there are approximately 150 internal broker-dealer systems, resulting in an annual recordkeeping burden of 450 hours. Therefore, the Commission estimates that compliance with Rule 17a-4 requires 1,042,866 hours each year ((4,104 broker-dealers x 254 hours) + (150 broker- dealers x 3 hours). These burdens are recordkeeping burdens. The staff believes that compliance personnel would be charged with ensuring compliance with Commission regulation, including Rule 17a-4. The staff estimates that the hourly salary of a Compliance Clerk is $65 per hour.\1\ Based upon these numbers, the total internal cost of compliance for 4,104 respondents is the dollar cost of approximately $67.8 million (1,042,416 yearly hours x $65). The total burden hour decrease of 242,062 is due to a decrease in the number of respondents from 5,057 to 4,104. --------------------------------------------------------------------------- \1\ This figure is based on SIFMA's Office Salaries in the Securities Industry 2016, modified by Commission staff to account for an 1,800-hour work-year multiplied by 2.93 to account for bonuses, firm size, employee benefits, and overhead. --------------------------------------------------------------------------- Based on conversations with members of the securities industry and the Commission's experience in the area, the staff estimates that the average broker-dealer spends approximately $5,000 each year to store documents required to be retained under Rule 17a-4. Costs include the cost of physical space, computer hardware and software, etc., which vary widely depending on the size of the broker-dealer and the type of storage media employed. The Commission estimates that the annual reporting and recordkeeping cost burden is $20,520,000. This cost is calculated by the number of active, registered broker-dealers multiplied by the reporting and recordkeeping cost for each respondent (4,104 active, registered broker-dealers x $5,000). 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 the 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. Dated: October 11, 2016. Robert W. Errett, Deputy Secretary. [FR Doc. 2016-24977 Filed 10-14-16; 8:45 am] BILLING CODE 8011-01-P
![71558 Federal Register / Vol. 81, No. 200 / Monday, October 17, 2016 / Notices
Multiply-Listed FLEX option member organizations engaging in both • Send an email to rule-comments@
transactions in the Strategy Fee Cap may additional Multiply Listed FLEX option sec.gov. Please include File Number SR–
encourage members and member transactions and strategy executions in Phlx–2016–100 on the subject line.
organizations to execute additional order to reach the fee cap levels. The
Paper comments
Multiply-Listed FLEX options and proposed change could also increase
strategy executions on the Exchange. competition between the Exchange and • Send paper comments in triplicate
The proposed change would therefore other option markets by making the to Secretary, Securities and Exchange
result in greater amounts of liquidity on Exchange a more desirable market with Commission, 100 F Street NE.,
the Exchange, which should benefit the respect to pricing for Multiply Listed Washington, DC 20549–1090.
quality of the Exchange’s market and FLEX option transactions and strategy All submissions should refer to File
investors, generally. This proposed executions. Number SR–Phlx–2016–100. This file
change is further reasonable because the If the changes proposed herein are number should be included on the
Exchange understands that other option unattractive to market participants, it is subject line if email is used. To help the
markets similarly include Multiply likely that the Exchange will lose Commission process and review your
Listed FLEX option transactions in market share as a result. Accordingly, comments more efficiently, please use
certain fee caps applicable to strategy the Exchange does not believe that the only one method. The Commission will
executions on such other markets.21 proposed changes will impair the ability post all comments on the Commission’s
The Exchange believes that the of members or competing order Internet Web site (http://www.sec.gov/
proposed change is equitable and not execution venues to maintain their rules/sro.shtml). Copies of the
unfairly discriminatory because all competitive standing in the financial submission, all subsequent
members and member organizations are markets. amendments, all written statements
eligible to transact Multiply Listed with respect to the proposed rule
The Exchange’s proposal to permit
FLEX options and are eligible for the change that are filed with the
Multiply Listed FLEX options to be
Strategy Fee Cap. Commission, and all written
eligible for the Section II Strategy Caps
B. Self-Regulatory Organization’s does not impose an undue burden on communications relating to the
Statement on Burden on Competition intra-market competition because all proposed rule change between the
members and member organizations are Commission and any person, other than
The Exchange does not believe that those that may be withheld from the
the proposed rule change will impose eligible to transact Multiply Listed
FLEX options and are eligible for the public in accordance with the
any burden on competition not provisions of 5 U.S.C. 552, will be
necessary or appropriate in furtherance Strategy Fee Cap.
available for Web site viewing and
of the purposes of the Act. In terms of C. Self-Regulatory Organization’s printing in the Commission’s Public
inter-market competition, the Exchange Statement on Comments on the Reference Room, 100 F Street NE.,
notes that it operates in a highly Proposed Rule Change Received From Washington, DC 20549, on official
competitive market in which market Members, Participants, or Others business days between the hours of
participants can readily favor competing 10:00 a.m. and 3:00 p.m. Copies of the
venues if they deem fee levels at a No written comments were either
solicited or received. filing also will be available for
particular venue to be excessive, or inspection and copying at the principal
rebate opportunities available at other III. Date of Effectiveness of the office of the Exchange. All comments
venues to be more favorable. In such an Proposed Rule Change and Timing for received will be posted without change;
environment, the Exchange must Commission Action the Commission does not edit personal
continually adjust its fees to remain
Within 45 days of the date of identifying information from
competitive with other exchanges and
publication of this notice in the Federal submissions. You should submit only
with alternative trading systems that
Register or within such longer period (i) information that you wish to make
have been exempted from compliance
as the Commission may designate up to available publicly.
with the statutory standards applicable All submissions should refer to File
to exchanges. Because competitors are 90 days of such date if it finds such
longer period to be appropriate and Number SR–Phlx–2016–100 and should
free to modify their own fees in be submitted on or before November 7,
response, and because market publishes its reasons for so finding or
(ii) as to which the Exchange consents, 2016.
participants may readily adjust their
order routing practices, the Exchange the Commission shall: (a) By order For the Commission, by the Division of
approve or disapprove such proposed Trading and Markets, pursuant to delegated
believes that the degree to which fee
rule change, or (b) institute proceedings authority.22
changes in this market may impose any
to determine whether the proposed rule Robert W. Errett,
burden on competition is extremely
limited. change should be disapproved. Deputy Secretary.
The pricing proposed herein are [FR Doc. 2016–24980 Filed 10–14–16; 8:45 am]
IV. Solicitation of Comments
intended to continue to incentivize BILLING CODE 8011–01–P
market participants to execute Interested persons are invited to
additional Multiply Listed FLEX submit written data, views, and
options and strategy executions on the arguments concerning the foregoing, SECURITIES AND EXCHANGE
Exchange and for this reason imposes including whether the proposed rule COMMISSION
no inter-market burden on competition. change is consistent with the Act.
jstallworth on DSK7TPTVN1PROD with NOTICES
Submission for OMB Review;
The proposal could increase Comments may be submitted by any of
Comment Request
competition on the Exchange by the following methods:
including Multiply Listed FLEX option Electronic comments Upon Written Request, Copies Available
transactions in the Strategy Fee Cap. From: Securities and Exchange
This could result in members and • Use the Commission’s Internet Commission, Office of FOIA Services,
comment form (http://www.sec.gov/
21 See note 6 above. rules/sro.shtml); or 22 17 CFR 200.30–3(a)(12).
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![Federal Register / Vol. 81, No. 200 / Monday, October 17, 2016 / Notices 71559
100 F Street, NE., Washington, DC regulation, including Rule 17a–4. The SECURITIES AND EXCHANGE
20549–2736. staff estimates that the hourly salary of COMMISSION
Extension: a Compliance Clerk is $65 per hour.1
Rule 17a–4. SEC File No. 270–198, OMB Based upon these numbers, the total [Release No. 34–79078; File No. SR–
Control No. 3235–0279. internal cost of compliance for 4,104 NYSEArca–2016–135]
Notice is hereby given that pursuant respondents is the dollar cost of
to the Paperwork Reduction Act of 1995 approximately $67.8 million (1,042,416 Self-Regulatory Organizations; NYSE
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the yearly hours x $65). The total burden Arca, Inc.; Notice of Filing and
Securities and Exchange Commission hour decrease of 242,062 is due to a Immediate Effectiveness of Proposed
(‘‘Commission’’) has submitted to the decrease in the number of respondents Rule Change Amending Its Rules To
Office of Management and Budget from 5,057 to 4,104. Remove Definitions and Trading Rules
(‘‘OMB’’) a request for extension of the Based on conversations with members That Are No Longer Operative After the
previously approved collection of of the securities industry and the Completed Full Migration of All
information provided for in Rule 17a–4 Commission’s experience in the area, Symbols to the Pillar Trading Platform
(17 CFR 240.17a–4), under the the staff estimates that the average
Securities Exchange Act of 1934 (15 broker-dealer spends approximately October 11, 2016.
U.S.C. 78a et seq.). $5,000 each year to store documents Pursuant to Section 19(b)(1) 1 of the
Rule 17a–4 requires approximately required to be retained under Rule 17a– Securities Exchange Act of 1934 (the
4,104 active, registered exchange 4. Costs include the cost of physical
‘‘Act’’),2 and Rule 19b–4 thereunder,3
members, brokers and dealers (‘‘broker- space, computer hardware and software,
notice is hereby given that on
dealers’’) to preserve for prescribed etc., which vary widely depending on
September 28, 2016, NYSE Arca, Inc.
periods of time certain records required the size of the broker-dealer and the
type of storage media employed. The (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
to be made by Rule 17a–3 and other with the Securities and Exchange
Commission rules, and other kinds of Commission estimates that the annual
reporting and recordkeeping cost Commission (the ‘‘Commission’’) the
records which firms make or receive in proposed rule change as described in
the ordinary course of business. Rule burden is $20,520,000. This cost is
calculated by the number of active, Items I and II below, which Items have
17a–4 also permits broker-dealers to
registered broker-dealers multiplied by been prepared by the self-regulatory
employ, under certain conditions,
the reporting and recordkeeping cost for organization. The Commission is
electronic storage media to maintain
these required records. The records each respondent (4,104 active, publishing this notice to solicit
required to be maintained under Rule registered broker-dealers × $5,000). comments on the proposed rule change
17a–4 are used by examiners and other An agency may not conduct or from interested persons.
representatives of the Commission to sponsor, and a person is not required to I. Self-Regulatory Organization’s
determine whether broker-dealers are in respond to, a collection of information Statement of the Terms of Substance of
compliance with, and to enforce their under the PRA unless it displays a the Proposed Rule Change
compliance with, the Commission’s currently valid OMB control number.
rules. The public may view the background The Exchange proposes to amend its
There are approximately 4,104 active, documentation for this information rules to remove definitions and trading
registered broker-dealers. The staff collection at the following Web site: rules that are no longer operative after
estimates that the average amount of www.reginfo.gov. Comments should be the completed full migration of all
time necessary to preserve the books directed to: (i) Desk Officer for the symbols to the Pillar trading platform.
and records as required by Rule 17a–4 Securities and Exchange Commission, The proposed rule change is available
is 254 hours per broker-dealer per year. Office of Information and Regulatory on the Exchange’s Web site at
In addition, the Commission is moving Affairs, Office of Management and www.nyse.com, at the principal office of
into this information collection the Budget, Room 10102, New Executive the Exchange, and at the Commission’s
annual burden hours for paragraph Office Building, Washington, DC 20503, Public Reference Room.
(b)(11) of Rule 17a–4, which requires or by sending an email to: Shagufta_
any broker-dealer that sponsors an Ahmed@omb.eop.gov; and (ii) Pamela II. Self-Regulatory Organization’s
internal broker-dealer system to Dyson, Director/Chief Information Statement of the Purpose of, and
maintain certain records relating to such Officer, Securities and Exchange Statutory Basis for, the Proposed Rule
system for at least three years. The Commission, c/o Remi Pavlik-Simon, Change
Commission estimates that paragraph 100 F Street NE., Washington, DC
(b)(11) of Rule 17a–4 imposes an annual 20549, or by sending an email to: PRA_ In its filing with the Commission, the
burden of 3 hours per year to maintain Mailbox@sec.gov. Comments must be self-regulatory organization included
the requisite records. The Commission submitted to OMB within 30 days of statements concerning the purpose of,
estimates that there are approximately this notice. and basis for, the proposed rule change
150 internal broker-dealer systems, and discussed any comments it received
Dated: October 11, 2016.
resulting in an annual recordkeeping on the proposed rule change. The text
Robert W. Errett, of those statements may be examined at
burden of 450 hours. Therefore, the
Commission estimates that compliance Deputy Secretary. the places specified in Item IV below.
[FR Doc. 2016–24977 Filed 10–14–16; 8:45 am] The Exchange has prepared summaries,
jstallworth on DSK7TPTVN1PROD with NOTICES
with Rule 17a–4 requires 1,042,866
hours each year ((4,104 broker-dealers × BILLING CODE 8011–01–P set forth in sections A, B, and C below,
254 hours) + (150 broker-dealers × 3 of the most significant parts of such
hours). These burdens are 1 This figure is based on SIFMA’s Office Salaries
statements.
recordkeeping burdens. in the Securities Industry 2016, modified by
Commission staff to account for an 1,800-hour
The staff believes that compliance work-year multiplied by 2.93 to account for
1 15 U.S.C. 78s(b)(1).
personnel would be charged with bonuses, firm size, employee benefits, and 2 15 U.S.C. 78a.
ensuring compliance with Commission overhead. 3 17 CFR 240.19b–4.
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Document Created: 2016-10-15 01:51:42
Document Modified: 2016-10-15 01:51:42
| 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 71558 |
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