82 FR 14579 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 53 (March 21, 2017)
Federal Register Volume 82, Issue 53 (March 21, 2017)
| Page Range | 14579-14580 | |
| FR Document | 2017-05539 |
[Federal Register Volume 82, Number 53 (Tuesday, March 21, 2017)] [Notices] [Pages 14579-14580] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-05539] ----------------------------------------------------------------------- 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 20549-0213 ACTION: Notice. ----------------------------------------------------------------------- [SEC File No. TM-S7-11-10, OMB Control No. 3235-0671] 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 (``Commission'') has submitted to the Office of Management and Budget (``OMB'') a request for approval of an amendment to a collection of information in connection with an National Market System (NMS) Plan filed with the Commission under Rule 613 (17 CFR 242.613), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). Rule 613 of Regulation NMS (17 CFR part 242) required national securities exchanges and national securities associations (``Participants'') to jointly submit to the Commission a national market system (``NMS'') plan to govern the creation, implementation, and maintenance of a consolidated audit trail (``CAT'') and Central Repository for the collection of information for NMS securities. On February 27, 2015, the Participants submitted the CAT NMS Plan to the Commission.\1\ --------------------------------------------------------------------------- \1\ See Letter from Participants to Brent J. Fields, Secretary, Commission, dated February 27, 2015. The Participants filed the CAT NMS Plan on September 30, 2014. See Letter from the Participants, to Brent J. Fields, Secretary, Commission, dated September 30, 2014. The CAT NMS Plan filed on February 27, 2015, was an amendment to and replacement of the Initial CAT NMS Plan (the ``Amended and Restated CAT NMS Plan''). On December 24, 2015, the Participants submitted an Amendment to the Amended and Restated CAT NMS Plan. See Letter from Participants to Brent J. Fields, Secretary, Commission, dated December 23, 2015 (the ``Amendment''). On February 9, 2016, the Participants filed with the Commission an identical, but unmarked, version of the Amended and Restated CAT NMS Plan, dated February 27, 2015, as modified by the Amendment, as well as a copy of the request for proposal issued by the Participants to solicit Bids from parties interested in serving as the Plan Processor for the consolidated audit trail. Unless the context otherwise requires, the ``CAT NMS Plan'' shall refer to the Amended and Restated CAT NMS Plan, as modified by the Amendment. --------------------------------------------------------------------------- [[Page 14580]] On April 27, 2016, the Commission published a notice soliciting comments from the public (``CAT NMS Plan Notice'').\2\ On November 15, 2016, the Commission approved the CAT NMS Plan (``CAT NMS Plan Order''), including the information collections proposed in the CAT NMS Plan Notice and certain additional information collections that are the subject of this Notice.\3\ This Notice addresses only the new information collections noticed in the CAT NMS Plan Order, which are: (1) A one-time independent audit of the fees, costs, and expenses incurred by the Participants on behalf of CAT NMS, LLC prior to the Effective Date \4\ of the Plan; \5\ (2) a one-time assessment of the clock synchronization standards in the Plan before reporting begins for Industry Members, which assessment shall take into account the diversity of CAT Reporters and systems; \6\ (3) a one-time report that discusses the Participants' assessment of implementing coordinated surveillance; \7\ (4) a one-time report discussing the feasibility and advisability of allowing Industry Members to bulk download the Raw Data that it has submitted to the Central Repository; \8\ (5) a one-time assessment of the nature and extent of errors in the Customer information submitted to the Central Repository and whether the correction of certain data fields over others should be prioritized; \9\ (6) a one-time report on the impact of tiered fees on market liquidity, including an analysis of the impact of the tiered-fee structure on Industry Members provision of liquidity; \10\ (7) an assessment of the projected impact of any Material Systems Change on the Maximum Error Rate, prior to the implementation of such Material Systems Change; \11\ and (8) an annual requirement that that the CAT LLC financials be (i) in compliance with GAAP, (ii) be audited by an independent public accounting firm, and (iii) be made publicly available.\12\ --------------------------------------------------------------------------- \2\ See Securities Exchange Act Release No. 77724 (April 27, 2016), 81 FR 30613 (May 17, 2016). The burdens associated with the CAT NMS Plan Notice were submitted under OMB number 3235-0671 which relates to the NMS Plan required to be filed under Rule 613. \3\ See Securities Exchange Act Release No. 79318 (November 15, 2016), 81 FR 84696 (November 23, 2016), available at https://www.sec.gov/rules/sro/nms/2016/34-79318.pdf. \4\ The ``Effective Date'' is the date the Commission approved the CAT NMS Plan, which was November 15, 2016. See id. \5\ See CAT NMS Plan Order, supra note at 84940. \6\ Id. \7\ Id. at 84940-84941. \8\ Id. at 84941. \9\ Id. \10\ Id. at 84941-84942. \11\ Id. at 84942. The Commission believes that four assessments would be filed annually. \12\ Id. --------------------------------------------------------------------------- The Commission believes that these audits, reports, and assessments of various aspects of the CAT NMS Plan are necessary to achieving the CAT NMS Plan's objective of improving the quality of the data available to regulators in four areas that affect the ultimate effectiveness of core regulatory efforts--completeness, accuracy, accessibility and timeliness.\13\ --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release No. 67457 (July 18, 2012), 77 FR 45722 (August 1, 2012) (``Rule 613 Adopting Release''), at 45727 (discussing four ``qualities'' of trade and order data that impact the effectiveness of core Participant and Commission regulatory efforts: accuracy, completeness, accessibility, and timeliness). --------------------------------------------------------------------------- The new information collections further require that each Participant conduct background checks for its employees and contractors that will use the CAT System.\14\ The Commission believes that these background checks are necessary to ensure that only authorized and qualified persons are using the CAT System. --------------------------------------------------------------------------- \14\ See CAT NMS Plan Order, supra note at 84942. --------------------------------------------------------------------------- There are 21 respondents that require an aggregate total of 8,269,747.99 hours to comply with the collection of information, as amended. The Commission further estimates that the aggregate cost to comply with the collection of information, as amended, is $534,465,565.81. 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 amendment 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: March 16, 2017. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-05539 Filed 3-20-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Notices 14579
Series for the period of time and Proposed Rule 6895(b)(1) states that the impact of the Plan on firms
accessibility specified in Rule 17a– each Industry Member that captures currently exempt from reporting to
4(b). 105 Because proposed Rule 6890 time in milliseconds shall comply with OATS when it approved the CAT NMS
incorporate Rule 17a–4(b) and Rule 6820 with regard to Business Plan.
implements the recordkeeping provision Clocks on or before March 15, 2017.
Paragraph (b)(2) states that each VI. Conclusion
of the CAT NMS Plan, the Commission
finds that proposed Rule 6890 is Industry Member that does not capture It is therefore ordered, pursuant to
consistent with the Act. time in milliseconds shall comply with Section 19(b)(2) of the Act, that the
Rule 6820 with regard to Business proposed rule change (SR–FINRA–
K. Timely, Accurate and Complete Data Clocks on or before February 19, 2018. 2017–003) is approved.
(Rule 6893) The Commission notes that the For the Commission, by the Division of
The Commission finds that proposed compliance date set forth in proposed Trading and Markets, pursuant to delegated
Rule 6893 is consistent with the Act as Rule 6895(b)(2) reflects the exemptive authority.109
it implements the requirements for relief requested by the Participants and Eduardo A. Aleman,
reporting timely, accurate and complete granted by the Commission with regard Assistant Secretary.
data to the CAT as set forth in the CAT to the clock synchronization [FR Doc. 2017–05504 Filed 3–20–17; 8:45 am]
NMS Plan. FINRA notes that proposed requirements related to Business Clocks
BILLING CODE 8011–01–P
Rule 6893 implements the requirement that do not capture time in
in Rule 613 and the CAT NMS Plan that milliseconds.106
data reported to the CAT be timely, Proposed Rule 6895(c)(1) requires SECURITIES AND EXCHANGE
accurate and complete. Specifically, each Industry Member (other than Small COMMISSION
proposed Rule 6893(a) requires that Industry Members) to record and report
Industry Members record and report the Industry Member Data to the Central Submission for OMB Review;
data to the Central Repository as Repository by November 15, 2018. Comment Request
required by the proposed Rule 6800 Proposed rule 6895(c)(2) requires that
Series in a manner that ensures the each Industry Member that is a Small Upon Written Request, Copies Available
timeliness, accuracy, integrity and Industry Member to record and report From: Securities and Exchange
completeness of such data. Proposed the Industry Member Data to the Central Commission, Office of FOIA Services,
Rule 6893(b) requires Industry Members Repository by November 15, 2019.107 100 F Street NE., Washington, DC
to accurately provide the LEIs in their Proposed Rule 6895(c)(1) and (c)(2) 20549–0213
records as required by the proposed implement the CAT NMS Plan’s ACTION: Notice.
Rule 6800 Series and states that provisions regarding the reporting of
Industry Member data to the Central [SEC File No. TM–S7–11–10, OMB Control
Industry Members may not knowingly No. 3235–0671]
submit inaccurate LEIs to the Central Repository.
Repository. Paragraph (b) notes, The Commission notes that one Notice is hereby given that pursuant
however, that this requirement does not commenter also requested that FINRA to the Paperwork Reduction Act of 1995
impose any additional due diligence classify all firms currently exempt from (44 U.S.C. 3501 et seq.), the Securities
obligations on Industry Members with reporting to OATS to be classified as a and Exchange Commission
regard to LEIs for CAT purposes. ‘‘Small Industry Member’’ as defined by (‘‘Commission’’) has submitted to the
Proposed Rule 6893(c) and (d) require the CAT NMS Plan.108 The commenter Office of Management and Budget
Industry Members to be in compliance notes that some OATS exempt firms (‘‘OMB’’) a request for approval of an
with the Error Rate as set forth in the would be classified as Large Industry amendment to a collection of
Members but really should be subject to information in connection with an
CAT NMS Plan and the Compliance
the three year implementation National Market System (NMS) Plan
Thresholds as discussed in the CAT
timeframe for Small Industry Members. filed with the Commission under Rule
NMS Plan and determined by the
The Participants responded that the 613 (17 CFR 242.613), under the
Operating Committee. Proposed Rule
definition of ‘‘Small Industry Member’’ Securities Exchange Act of 1934 (15
6893 implements the CAT NMS Plan’s
is appropriate because it is an existing U.S.C. 78a et seq.).
provisions.
regulatory standard. The Commission Rule 613 of Regulation NMS (17 CFR
L. Compliance Dates (Rule 6895) believes that the proposed rule change’s part 242) required national securities
The Commission finds that the use of the ‘‘Small Industry Member’’ exchanges and national securities
compliance dates in proposed Rule 6895 definition is consistent with the CAT associations (‘‘Participants’’) to jointly
NMS Plan. submit to the Commission a national
are consistent with the Act, as they
The Commission notes that a market system (‘‘NMS’’) plan to govern
implement the compliance dates for
commenter suggested that a cost/benefit the creation, implementation, and
reporting data to the CAT as set forth in analysis be performed to review the
the CAT NMS Plan and an exemptive maintenance of a consolidated audit
impact of CAT on firms currently trail (‘‘CAT’’) and Central Repository for
order issued by the Commission. exempt from reporting to OATS. The
Proposed Rule 6895(a) states that, the collection of information for NMS
Participants responded the Commission securities. On February 27, 2015, the
except as set forth in paragraphs (b) and had already undertaken into account the
(c) of the Rule or otherwise set forth in Participants submitted the CAT NMS
impact of CAT on firms currently Plan to the Commission.1
this Rule Series, the compliance date for exempt from OATS. The Commission
mstockstill on DSK3G9T082PROD with NOTICES
the proposed Rule 6800 Series will be likewise notes that it took into account 109 17 CFR 200.30–3(a)(12).
the date of Commission approval of the 1 See Letter from Participants to Brent J. Fields,
proposed rule change. 106 See supra note 77. Secretary, Commission, dated February 27, 2015.
107 Such compliance dates are consistent with the The Participants filed the CAT NMS Plan on
105 17 CFR 240.17a–4(b). FINRA also notes that compliance dates set forth in SEC Rule 613(a)(3)(v) September 30, 2014. See Letter from the
proposed Rule 6890 is based on Rule 7440(a)(5), and (vi), and Sections 6.7(a)(v) and (vi) of the CAT Participants, to Brent J. Fields, Secretary,
which sets forth the recordkeeping requirements NMS Plan. Commission, dated September 30, 2014. The CAT
related to OATS. 108 Wachtel Letter at 1. Continued
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![14580 Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Notices
On April 27, 2016, the Commission time report on the impact of tiered fees Ahmed@omb.eop.gov; and (ii) Pamela
published a notice soliciting comments on market liquidity, including an Dyson, Director/Chief Information
from the public (‘‘CAT NMS Plan analysis of the impact of the tiered-fee Officer, Securities and Exchange
Notice’’).2 On November 15, 2016, the structure on Industry Members Commission, c/o Remi Pavlik-Simon,
Commission approved the CAT NMS provision of liquidity; 10 (7) an 100 F Street NE., Washington, DC
Plan (‘‘CAT NMS Plan Order’’), assessment of the projected impact of 20549, or by sending an email to: PRA_
including the information collections any Material Systems Change on the Mailbox@sec.gov. Comments must be
proposed in the CAT NMS Plan Notice Maximum Error Rate, prior to the submitted to OMB within 30 days of
and certain additional information implementation of such Material this notice.
collections that are the subject of this Systems Change; 11 and (8) an annual Dated: March 16, 2017.
Notice.3 This Notice addresses only the requirement that that the CAT LLC Eduardo A. Aleman,
new information collections noticed in financials be (i) in compliance with
Assistant Secretary.
the CAT NMS Plan Order, which are: (1) GAAP, (ii) be audited by an
[FR Doc. 2017–05539 Filed 3–20–17; 8:45 am]
A one-time independent audit of the independent public accounting firm,
fees, costs, and expenses incurred by the and (iii) be made publicly available.12 BILLING CODE 8011–01–P
Participants on behalf of CAT NMS, LLC The Commission believes that these
prior to the Effective Date 4 of the Plan; 5 audits, reports, and assessments of
various aspects of the CAT NMS Plan SECURITIES AND EXCHANGE
(2) a one-time assessment of the clock
are necessary to achieving the CAT COMMISSION
synchronization standards in the Plan
before reporting begins for Industry NMS Plan’s objective of improving the [Investment Company Act Release No.
Members, which assessment shall take quality of the data available to 32533; File No. 812–14255]
into account the diversity of CAT regulators in four areas that affect the
Reporters and systems; 6 (3) a one-time ultimate effectiveness of core regulatory Allianz Funds Multi-Strategy Trust and
report that discusses the Participants’ efforts—completeness, accuracy, Allianz Global Investors U.S. LLC
assessment of implementing accessibility and timeliness.13 March 15, 2017.
coordinated surveillance; 7 (4) a one- The new information collections
AGENCY: Securities and Exchange
time report discussing the feasibility further require that each Participant
Commission (‘‘Commission’’).
and advisability of allowing Industry conduct background checks for its
employees and contractors that will use ACTION: Notice.
Members to bulk download the Raw
Data that it has submitted to the Central the CAT System.14 The Commission Notice of an application for an order
Repository; 8 (5) a one-time assessment believes that these background checks under section 12(d)(1)(J) of the
of the nature and extent of errors in the are necessary to ensure that only Investment Company Act of 1940 (the
Customer information submitted to the authorized and qualified persons are ‘‘Act’’) for an exemption from sections
Central Repository and whether the using the CAT System. 12(d)(1)(A), (B), and (C) of the Act and
correction of certain data fields over There are 21 respondents that require under sections 6(c) and 17(b) of the Act
others should be prioritized; 9 (6) a one- an aggregate total of 8,269,747.99 hours for an exemption from sections 17(a)(1)
to comply with the collection of and (2) of the Act. The requested order
NMS Plan filed on February 27, 2015, was an
information, as amended. The would permit certain registered open-
amendment to and replacement of the Initial CAT Commission further estimates that the end investment companies to acquire
NMS Plan (the ‘‘Amended and Restated CAT NMS aggregate cost to comply with the shares of certain registered open-end
Plan’’). On December 24, 2015, the Participants collection of information, as amended,
submitted an Amendment to the Amended and investment companies, registered
is $534,465,565.81.
Restated CAT NMS Plan. See Letter from closed-end investment companies,
Participants to Brent J. Fields, Secretary, An agency may not conduct or
business development companies, as
Commission, dated December 23, 2015 (the sponsor, and a person is not required to
‘‘Amendment’’). On February 9, 2016, the respond to, a collection of information defined in section 2(a)(48) of the Act,
Participants filed with the Commission an identical, under the PRA unless it displays a and unit investment trusts (collectively,
but unmarked, version of the Amended and
currently valid OMB control number. ‘‘Underlying Funds’’) that are within
Restated CAT NMS Plan, dated February 27, 2015, and outside the same group of
as modified by the Amendment, as well as a copy The public may view background
of the request for proposal issued by the documentation for this amendment at investment companies as the acquiring
Participants to solicit Bids from parties interested the following Web site: investment companies, in excess of the
in serving as the Plan Processor for the consolidated
www.reginfo.gov. Comments should be limits in section 12(d)(1) of the Act.
audit trail. Unless the context otherwise requires,
directed to: (i) Desk Officer for the APPLICANTS: Allianz Funds Multi-
the ‘‘CAT NMS Plan’’ shall refer to the Amended
and Restated CAT NMS Plan, as modified by the Securities and Exchange Commission, Strategy Trust (the ‘‘Trust’’), a
Amendment. Office of Information and Regulatory Massachusetts business trust that is
2 See Securities Exchange Act Release No. 77724
Affairs, Office of Management and registered under the Act as an open-end
(April 27, 2016), 81 FR 30613 (May 17, 2016). The management investment company with
burdens associated with the CAT NMS Plan Notice
Budget, Room 10102, New Executive
were submitted under OMB number 3235–0671 Office Building, Washington, DC 20503, multiple series, and Allianz Global
which relates to the NMS Plan required to be filed or by sending an email to: Shagufta_ Investors U.S. LLC (the ‘‘Applying
under Rule 613. Manager’’), a Delaware limited liability
3 See Securities Exchange Act Release No. 79318
10 Id. at 84941–84942. company registered as an investment
(November 15, 2016), 81 FR 84696 (November 23,
2016), available at https://www.sec.gov/rules/sro/
11 Id. at 84942. The Commission believes that four adviser under the Investment Advisers
assessments would be filed annually. Act of 1940.
mstockstill on DSK3G9T082PROD with NOTICES
nms/2016/34-79318.pdf. 12 Id.
4 The ‘‘Effective Date’’ is the date the Commission
13 See Securities Exchange Act Release No. 67457
FILING DATES: The application was filed
approved the CAT NMS Plan, which was November on December 23, 2013 and amended on
(July 18, 2012), 77 FR 45722 (August 1, 2012)
15, 2016. See id.
5 See CAT NMS Plan Order, supra note at 84940.
(‘‘Rule 613 Adopting Release’’), at 45727 July 30, 2015, May 2, 2016, February 3,
(discussing four ‘‘qualities’’ of trade and order data 2017, March 8, 2017 and March 13,
6 Id.
that impact the effectiveness of core Participant and
7 Id. at 84940–84941.
Commission regulatory efforts: accuracy,
2017.
8 Id. at 84941. completeness, accessibility, and timeliness). HEARING OR NOTIFICATION OF HEARING: An
9 Id. 14 See CAT NMS Plan Order, supra note at 84942. order granting the requested relief will
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Document Created: 2017-03-21 01:09:30
Document Modified: 2017-03-21 01:09:30
| 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 | |
| Action | Notice. | |
| FR Citation | 82 FR 14579 |
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