82 FR 22032 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 90 (May 11, 2017)
Federal Register Volume 82, Issue 90 (May 11, 2017)
| Page Range | 22032-22033 | |
| FR Document | 2017-09584 |
[Federal Register Volume 82, Number 90 (Thursday, May 11, 2017)] [Notices] [Pages 22032-22033] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-09584] ----------------------------------------------------------------------- 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: [[Page 22033]] Rule 203A-2(e), SEC File No. 270-501, OMB Control No. 3235-0559. 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'') has submitted to the Office of Management and Budget (``OMB'') a request for extension and approval of the previously approved collection of information discussed below. Rule 203A-2(e),\1\ which is entitled ``Internet Investment Advisers,'' exempts from the prohibition on Commission registration an Internet investment adviser who provides investment advice to all of its clients exclusively through computer software-based models or applications termed under the rule as ``interactive Web sites.'' \2\ These advisers generally would not meet the statutory thresholds currently set out in section 203A of the Advisers Act \3\--they do not manage $25 million or more in assets and do not advise registered investment companies, or they manage between $25 million and $100 million in assets, do not advise registered investment companies or business development companies, and are required to be registered as investment advisers with the states in which they maintain their principal offices and places of business and are subject to examination as an adviser by such states.\4\ Eligibility under rule 203A-2(e) is conditioned on an adviser maintaining in an easily accessible place, for a period of not less than five years from the filing of Form ADV,\5\ a record demonstrating that the adviser's advisory business has been conducted through an interactive Web site in accordance with the rule.\6\ --------------------------------------------------------------------------- \1\ 17 CFR 275.203A-2(e). \2\ Included in rule 203A-2(e) is a limited exception to the interactive Web site requirement which allows these advisers to provide investment advice to fewer than 15 clients through other means on an annual basis. 17 CFR 275.203A-2(e)(1)(i). The rule also precludes advisers in a control relationship with an SEC-registered Internet adviser from registering with the Commission under the common control exemption provided by rule 203A-2(b) (17 CFR 275.203A-2(b)). 17 CFR 275.203A-2(e)(1)(iii). \3\ 15 U.S.C. 80b-3a(a). \4\ Id. \5\ The five-year record retention period is a similar recordkeeping retention period as imposed on all advisers under rule 204-2 of the Advisers Act. See rule 204-2 (17 CFR 275.204-2). \6\ 17 CFR 275.203A-2(e)(1)(ii). --------------------------------------------------------------------------- This record maintenance requirement is a ``collection of information'' for PRA purposes. The Commission believes that approximately 144 advisers are registered with the Commission under rule 203A-2(e), which involves a recordkeeping requirement of approximately four burden hours per year per adviser and results in an estimated 576 of total burden hours (4 x 144) for all advisers. This collection of information is mandatory, as it is used by Commission staff in its examination and oversight program in order to determine continued Commission registration eligibility of advisers registered under this rule. Responses generally are kept confidential pursuant to section 210(b) of the Advisers Act.\7\ 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 80b-10(b). --------------------------------------------------------------------------- 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 send an email to: [email protected]. Comments must be submitted to OMB within 30 days of this notice. Dated: May 5, 2017. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-09584 Filed 5-10-17; 8:45 am] BILLING CODE 8011-01-P
![22032 Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Notices
allowing Clearing Members to better designated risk settings with its Clearing Paper Comments
monitor their risk exposure. Member could avoid sharing such
The Exchange notes that the rule settings by becoming a Clearing • Send paper comments in triplicate
change to adopt paragraph (f) to Rule Member. to Secretary, Securities and Exchange
11.13 is based on and substantively Commission, 100 F Street NE.,
C. Self-Regulatory Organization’s Washington, DC 20549–1090.
identical to Bats BZX Exchange Rule
Statement on Comments on the
21.17 (‘‘BZX’’) and Bats EDGX Exchange All submissions should refer to File No.
Proposed Rule Change Received From
(‘‘EDGX’’) Rule 21.17, each of which is SR–BatsEDGA–2017–07. This file
Members, Participants, or Others
applicable to options participants of number should be included on the
such exchanges. The Exchange also The Exchange has not solicited, and subject line if email is used. To help the
notes that other equities exchanges offer does not intend to solicit, comments on Commission process and review your
functionality that allows clearing firms this proposed rule change. The comments more efficiently, please use
to not only directly monitor but also to Exchange has not received any written only one method. The Commission will
set certain risk settings in connection comments from members or other post all comments on the Commission’s
with the activities of the firms for which interested parties. Internet Web site (http://www.sec.gov/
they clear.14 III. Date of Effectiveness of the rules/sro.shtml). Copies of the
The Exchange further believes that Proposed Rule Change and Timing for submission, all subsequent
codifying the risk settings described Commission Action amendments, all written statements
above in Interpretation and Policy .01 to with respect to the proposed rule
Rule 11.10 is consistent with the Act as Because the proposed rule change change that are filed with the
it will provide additional transparency does not (i) significantly affect the
Commission, and all written
to Exchange Users regarding the protection of investors or the public
communications relating to the
optional risk settings offered by the interest; (ii) impose any significant
proposed rule change between the
Exchange. As noted above, these burden on competition; and (iii) become
Commission and any person, other than
settings have been described by the operative for 30 days from the date on
those that may be withheld from the
Exchange in prior filings 15 and further which it was filed, or such shorter time
public in accordance with the
information regarding such settings is as the Commission may designate, it has
provisions of 5 U.S.C. 552, will be
available in technical specifications become effective pursuant to Section
available for Web site viewing and
19(b)(3)(A) of the Act 17 and Rule 19b–
made available by the Exchange. printing in the Commission’s Public
4(f)(6) thereunder.18
However, the Exchange believes it is Reference Room, 100 F Street NE.,
At any time within 60 days of the
appropriate to provide additional details filing of the proposed rule change, the Washington, DC 20549, on official
regarding these risk settings in Exchange Commission summarily may business days between the hours of
rules. As such, the Exchange believes temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the
that the proposal is consistent with the it appears to the Commission that such filing also will be available for
Act, particularly Section 6(b)(5),16 action is necessary or appropriate in the inspection and copying at the principal
because it will foster cooperation and public interest, for the protection of office of the Exchange. All comments
coordination with persons engaged in investors, or otherwise in furtherance of received will be posted without change;
facilitating transactions in securities and the purposes of the Act. If the the Commission does not edit personal
more generally, will protect investors Commission takes such action, the identifying information from
and the public interest, by providing Commission shall institute proceedings submissions. You should submit only
additional transparency regarding to determine whether the proposed rule information that you wish to make
optional risk settings offered by the change should be approved or available publicly. All submissions
Exchange. disapproved. should refer to File No. SR–BatsEDGA–
B. Self-Regulatory Organization’s 2017–07, and should be submitted on or
IV. Solicitation of Comments before June 1, 2017.
Statement on Burden on Competition
Interested persons are invited to For the Commission, by the Division of
The Exchange does not believe that submit written data, views, and Trading and Markets, pursuant to delegated
the proposed rule change will impose arguments concerning the foregoing, authority.19
any burden on competition that is not including whether the proposed rule Eduardo A. Aleman,
necessary or appropriate in furtherance change is consistent with the Act. Assistant Secretary.
of the purposes of the Act. The Comments may be submitted by any of
proposed rule change is not designed to [FR Doc. 2017–09524 Filed 5–10–17; 8:45 am]
the following methods:
address any competitive issues and does BILLING CODE 8011–01–P
not pose an undue burden on non- Electronic Comments
Clearing Members because, unlike • Use the Commission’s Internet SECURITIES AND EXCHANGE
Clearing Members, non-Clearing comment form (http://www.sec.gov/
Members do not guarantee the execution COMMISSION
rules/sro.shtml); or
of a Member’s transactions on the • Send an email to rule-comments@ Submission for OMB Review;
Exchange. The proposal is structured to sec.gov. Please include File No. SR– Comment Request
offer the same enhancement to all BatsEDGA–2017–07 on the subject line.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Clearing Members, regardless of size, Upon Written Request, Copies Available
and would not impose a competitive 17 15 U.S.C. 78s(b)(3)(A). From: Securities and Exchange
burden on any Member. Any Member 18 17 CFR 240.19b–4(f)(6). As required under Rule
Commission, Office of FOIA Services
that does not wish to share its 19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
100 F Street NE., Washington, DC
the proposed rule change, along with a brief 20549–2736.
14 See, e.g., Nasdaq Rules 6110 and 6120 relating
description and the text of the proposed rule Extension:
to the Nasdaq Risk Management Service. change, at least five business days prior to the date
15 See supra note 9.
of filing of the proposed rule change, or such
16 15 U.S.C. 78f(b)(5). shorter time as designated by the Commission. 19 17 CFR 200.30–3(a)(12).
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![Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Notices 22033
Rule 203A–2(e), SEC File No. 270–501, approximately four burden hours per to Section 19(b)(1) of the Securities
OMB Control No. 3235–0559. year per adviser and results in an Exchange Act of 1934 (‘‘Act’’) 1 and Rule
Notice is hereby given that, pursuant estimated 576 of total burden hours 19b–4 thereunder,2 a proposed rule
to the Paperwork Reduction Act of 1995 (4 × 144) for all advisers. change amending the Exchange’s rules
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the This collection of information is to make permanent a program that
Securities and Exchange Commission mandatory, as it is used by Commission allows transactions to take place in open
(‘‘Commission’’) has submitted to the staff in its examination and oversight outcry trading at prices of at least $0 but
Office of Management and Budget program in order to determine less than $1 per option contract (‘‘sub-
(‘‘OMB’’) a request for extension and continued Commission registration dollar cabinet trades’’). The proposed
approval of the previously approved eligibility of advisers registered under rule change was published for comment
collection of information discussed this rule. Responses generally are kept in the Federal Register on March 23,
below. confidential pursuant to section 210(b) 2017.3 On April 25, 2017, the Exchange
Rule 203A–2(e),1 which is entitled of the Advisers Act.7 An agency may not filed Amendment No. 1 to the proposed
‘‘Internet Investment Advisers,’’ conduct or sponsor, and a person is not rule change.4 The Commission received
exempts from the prohibition on required to respond to a collection of no comment letters on the proposed rule
Commission registration an Internet information unless it displays a change. This order provides notice of
investment adviser who provides currently valid control number. filing of Amendment No. 1 and
investment advice to all of its clients The public may view the background approves the proposed rule change, as
exclusively through computer software- documentation for this information modified by Amendment No. 1, on an
based models or applications termed collection at the following Web site, accelerated basis.
under the rule as ‘‘interactive Web www.reginfo.gov. Comments should be II. Description of the Proposed Rule
sites.’’ 2 These advisers generally would directed to: (i) Desk Officer for the Change
not meet the statutory thresholds Securities and Exchange Commission,
currently set out in section 203A of the Office of Information and Regulatory Prior to 2010, Exchange Rule 968NY
Advisers Act 3—they do not manage $25 Affairs, Office of Management and (Cabinet Trades (Accommodation
million or more in assets and do not Budget, Room 10102, New Executive Transactions)) allowed cabinet trade
advise registered investment companies, Office Building, Washington, DC 20503, transactions at a price of $1 per option
or they manage between $25 million or by sending an email to: Shagufta_ contract to occur in open outcry trading
and $100 million in assets, do not Ahmed@omb.eop.gov; and (ii) Pamela for certain classes.5 In 2010, the
advise registered investment companies Dyson, Director/Chief Information Exchange amended Rule 968NY on a
or business development companies, Officer, Securities and Exchange pilot basis to allow sub-dollar cabinet
and are required to be registered as Commission, c/o Remi Pavlik-Simon, trades to take place at prices of at least
investment advisers with the states in 100 F Street NE., Washington, DC 20549 $0 but less than $1 per option contract.6
which they maintain their principal or send an email to: PRA_Mailbox@ The Exchange now proposes to amend
offices and places of business and are sec.gov. Comments must be submitted to Rule 968NY to make permanent its sub-
subject to examination as an adviser by OMB within 30 days of this notice. dollar cabinet trade pilot program,
such states.4 Eligibility under rule which currently is scheduled to expire
203A–2(e) is conditioned on an adviser Dated: May 5, 2017. on July 5, 2017.7
maintaining in an easily accessible Eduardo A. Aleman,
place, for a period of not less than five Assistant Secretary. 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
years from the filing of Form ADV,5 a [FR Doc. 2017–09584 Filed 5–10–17; 8:45 am]
3 See Securities Exchange Act Release No. 80272
record demonstrating that the adviser’s BILLING CODE 8011–01–P
(March 17, 2017), 82 FR 14936 (March 23, 2017)
advisory business has been conducted (‘‘Notice’’).
through an interactive Web site in 4 In Amendment No. 1, the Exchange provided
accordance with the rule.6 SECURITIES AND EXCHANGE supplemental background detail on its proposal,
This record maintenance requirement COMMISSION including a summary of why it initially put the
is a ‘‘collection of information’’ for PRA program on a pilot, a description of the systems
[Release No. 34–80616; File No. SR– enhancements it made to be able to process cabinet
purposes. The Commission believes that NYSEMKT–2017–13] trades in the regular course, an example of how a
approximately 144 advisers are cabinet trade is done on the trading floor, and a
registered with the Commission under Self-Regulatory Organizations; NYSE representation that, to its knowledge, neither the
rule 203A–2(e), which involves a Options Clearing Corporation (‘‘OCC’’) nor the
MKT LLC; Notice of Filing of Exchange’s members have reported any operational
recordkeeping requirement of Amendment No. 1 and Order Granting issues in connection with cabinet trades. To
Accelerated Approval of a Proposed promote transparency of its proposed amendment,
1 17 CFR 275.203A–2(e). Rule Change, as Modified by when NYSE MKT filed Amendment No. 1 with the
2 Included in rule 203A–2(e) is a limited Commission, it also submitted Amendment No. 1 as
exception to the interactive Web site requirement Amendment No. 1, Amending Rule a comment letter to the file, which the Commission
which allows these advisers to provide investment 968NY To Make Permanent a Program posted on its Web site and placed in the public
advice to fewer than 15 clients through other means That Allows Cabinet Trade comment file for SR–NYSEMKT–2017–13 (available
on an annual basis. 17 CFR 275.203A–2(e)(1)(i). The Transactions To Take Place at a Price at https://www.sec.gov/comments/sr-nysemkt-2017-
rule also precludes advisers in a control 13/nysemkt201713.htm). The Exchange also posted
relationship with an SEC-registered Internet adviser Below $1 Per Option Contract a copy of its Amendment No. 1 on its Web site
from registering with the Commission under the (https://www.nyse.com/regulation/rule-filings)
asabaliauskas on DSK3SPTVN1PROD with NOTICES
common control exemption provided by rule 203A– May 5, 2017. when it filed it with the Commission.
2(b) (17 CFR 275.203A–2(b)). 17 CFR 275.203A– 5 See Rule 968NY. See also Notice, supra note 3,
2(e)(1)(iii).
I. Introduction
at 14936 (discussing Rule 968NY).
3 15 U.S.C. 80b–3a(a).
On March 2, 2017, NYSE MKT LLC 6 See Securities Exchange Act Release No. 63475
4 Id.
(the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed (December 8, 2010), 75 FR 77932 (December 14,
5 The five-year record retention period is a similar 2010) (SR–NYSEAmex–2010–114).
recordkeeping retention period as imposed on all
with the Securities and Exchange 7 See Commentary .01 to Rule 968NY. See also
advisers under rule 204–2 of the Advisers Act. See Commission (‘‘Commission’’), pursuant Securities Exchange Act Release No. 79564
rule 204–2 (17 CFR 275.204–2). (December 15, 2016), 81 FR 93716 (December 21,
6 17 CFR 275.203A–2(e)(1)(ii). 7 15 U.S.C. 80b–10(b). 2016) (SR–NYSEMKT–2016–116).
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Document Created: 2017-05-11 00:14:56
Document Modified: 2017-05-11 00:14:56
| 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 | 82 FR 22032 |
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