82 FR 23894 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 99 (May 24, 2017)

Page Range		23894-23895
FR Document		2017-10618
Federal Register, Volume 82 Issue 99 (Wednesday, May 24, 2017)
[Federal Register Volume 82, Number 99 (Wednesday, May 24, 2017)]
[Notices]
[Pages 23894-23895]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-10618]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; 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 17a-11. SEC File. No. 270-94, OMB Control No. 3235-0085.

    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'') is soliciting comments on the existing 
collection of information provided for in Rule 17a-11 (17 CFR 240.17a-
11) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
(``Exchange Act''). The Commission plans to submit this existing 
collection of information to the Office of Management and Budget for 
extension and approval.
    In response to an operational crisis in the securities industry 
between 1967 and 1970, the Commission adopted Rule 17a-11 (17 CFR 
240.17a-11) under the Exchange Act on July 11, 1971. The Rule requires 
broker-dealers that are experiencing financial or operational 
difficulties to provide notice to the Commission, the broker-dealer's 
designated examining authority (``DEA''), and the Commodity Futures 
Trading Commission (``CFTC'') if the broker-dealer is registered with 
the CFTC as a futures commission merchant. Rule 17a-11 is an integral 
part of the Commission's financial responsibility program which enables 
the Commission, a broker-dealer's DEA, and the CFTC to increase 
surveillance of a broker-dealer experiencing difficulties and to obtain 
any additional information necessary to gauge the broker-dealer's 
financial or operational condition.
    Rule 17a-11 also requires over-the-counter (``OTC'') derivatives 
dealers and broker-dealers that are permitted to compute net capital 
pursuant to Appendix E to Exchange Act Rule 15c3-1 to notify the 
Commission when their tentative net capital drops below certain levels.
    To ensure the provision of these types of notices to the 
Commission, Rule 17a-11 requires every national securities exchange or 
national securities association to notify the Commission when it learns 
that a member broker-dealer has failed to send a notice or transmit a 
report required under the Rule.
    Compliance with the Rule is mandatory. The Commission will 
generally not publish or make available to any person notices or 
reports received pursuant to Rule 17a-11. The Commission believes that 
information obtained under Rule 17a-11 relates to a condition report 
prepared for the use of the Commission, other federal governmental 
authorities, and securities industry self-regulatory organizations 
responsible for the regulation or supervision of financial 
institutions.
    The Commission expects to receive 253 notices from broker-dealers 
whose capital declines below certain specified levels or who are 
otherwise experiencing financial or operational problems and ten 
notices each year from national securities exchange or national 
securities association notifying it that a member broker-dealer has 
failed to send the Commission a notice or transmit a report required 
under the Rule. The Commission expects that it will take approximately 
one hour to prepare and transmit each notice.
    Rule 17a-11 also requires broker-dealers engaged in securities 
lending or repurchase activities to either: (1) File a notice with the 
Commission and their DEA whenever the total money payable against all 
securities loaned, subject to a reverse repurchase agreement or the 
contract value of all securities borrowed or subject to a repurchase 
agreement, exceeds 2,500% of tentative net capital; or, alternatively, 
(2) report monthly their securities lending and repurchase activities 
to their DEA in a form acceptable to their DEA.
    The Commission estimates that, annually, six broker-dealers will 
submit the monthly stock loan/borrow report. The Commission estimates 
each firm will spend, on average, approximately one hour per month (or 
twelve hours per year) of employee resources to prepare and send the 
report or to prepare the information for the FOCUS report (as required 
by the firm's DEA, if applicable). Therefore, the Commission estimates 
the total annual reporting burden arising from this section of the 
amendment will be approximately 72 hours.\1\
---------------------------------------------------------------------------

    \1\ 6 broker-dealers x 12 hours per year = 72 hours.
---------------------------------------------------------------------------

    Therefore, the total annual reporting burden associated with Rule 
17a-11 is approximately 335 hours.\2\
---------------------------------------------------------------------------

    \2\ 253 + 10 + 72.
---------------------------------------------------------------------------

    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's

[[Page 23895]]

estimate of the burden of the proposed 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.
    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.
    Please direct your written comments to: 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].

    Dated: May 19, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-10618 Filed 5-23-17; 8:45 am]
 BILLING CODE 8011-01-P
23894 Federal Register / Vol. 82, No. 99 / Wednesday, May 24, 2017 / Notices

Commission (‘‘Commission’’), pursuant SECURITIES AND EXCHANGE Compliance with the Rule is
to Section 19(b)(1) of the Securities COMMISSION mandatory. The Commission will
Exchange Act of 1934 (‘‘Act’’) 1 and Rule generally not publish or make available
19b–4 thereunder,2 a proposed rule Proposed Collection; Comment to any person notices or reports received
change to amend (1) the fees set forth in Request pursuant to Rule 17a–11. The
BZX Rule 14.13 applicable to securities Upon Written Request, Copies Available Commission believes that information
listed on the Exchange, and (2) the fee From: Securities and Exchange obtained under Rule 17a–11 relates to a
schedule applicable to Members 3 and Commission, Office of FOIA Services, condition report prepared for the use of
non-Members of the Exchange pursuant 100 F Street NE., Washington, DC the Commission, other federal
20549–2736. governmental authorities, and securities
to Exchange Rules 15.1(a) and (c). BZX
industry self-regulatory organizations
designated the proposed rule change as Extension: responsible for the regulation or
immediately effective upon filing with Rule 17a–11. SEC File. No. 270–94, OMB supervision of financial institutions.
the Commission pursuant to Section Control No. 3235–0085.
The Commission expects to receive
19(b)(3)(A) of the Act.4 On October 14, Notice is hereby given that pursuant 253 notices from broker-dealers whose
2016, the Commission published notice to the Paperwork Reduction Act of 1995 capital declines below certain specified
of filing of the proposed rule change and (44 U.S.C. 3501 et seq.), the Securities levels or who are otherwise
pursuant to Section 19(b)(3)(C) of the and Exchange Commission experiencing financial or operational
Act: (1) Temporarily suspended the (‘‘Commission’’) is soliciting comments problems and ten notices each year from
proposed rule change; and (2) instituted on the existing collection of information national securities exchange or national
proceedings to determine whether to provided for in Rule 17a–11 (17 CFR securities association notifying it that a
approve or disapprove the proposal.5 240.17a–11) under the Securities member broker-dealer has failed to send
On April 14, 2017, pursuant to Section Exchange Act of 1934 (15 U.S.C. 78a et the Commission a notice or transmit a
19(b)(2) of the Act,6 the Commission seq.) (‘‘Exchange Act’’). The report required under the Rule. The
designated a longer period within which Commission plans to submit this Commission expects that it will take
to approve or disapprove the proposed existing collection of information to the approximately one hour to prepare and
rule change.7 The Commission received Office of Management and Budget for transmit each notice.
extension and approval. Rule 17a–11 also requires broker-
three comment letters on the proposal.8 In response to an operational crisis in dealers engaged in securities lending or
On May 17, 2017, the Exchange the securities industry between 1967 repurchase activities to either: (1) File a
withdrew the proposed rule change and 1970, the Commission adopted Rule notice with the Commission and their
(SR–BatsBZX–2016–60). 17a–11 (17 CFR 240.17a–11) under the DEA whenever the total money payable
For the Commission, by the Division of Exchange Act on July 11, 1971. The against all securities loaned, subject to
Trading and Markets, pursuant to delegated Rule requires broker-dealers that are a reverse repurchase agreement or the
authority.9 experiencing financial or operational contract value of all securities borrowed
Eduardo A. Aleman, difficulties to provide notice to the or subject to a repurchase agreement,
Assistant Secretary.
Commission, the broker-dealer’s exceeds 2,500% of tentative net capital;
designated examining authority or, alternatively, (2) report monthly
[FR Doc. 2017–10582 Filed 5–23–17; 8:45 am]
(‘‘DEA’’), and the Commodity Futures their securities lending and repurchase
BILLING CODE 8011–01–P Trading Commission (‘‘CFTC’’) if the activities to their DEA in a form
broker-dealer is registered with the acceptable to their DEA.
CFTC as a futures commission The Commission estimates that,
merchant. Rule 17a–11 is an integral annually, six broker-dealers will submit
part of the Commission’s financial the monthly stock loan/borrow report.
1 15 U.S.C. 78s(b)(1). responsibility program which enables The Commission estimates each firm
2 17 CFR 240.19b–4. the Commission, a broker-dealer’s DEA, will spend, on average, approximately
3 A Member is defined as ‘‘any registered broker and the CFTC to increase surveillance of one hour per month (or twelve hours
or dealer that has been admitted to membership in a broker-dealer experiencing difficulties per year) of employee resources to
the Exchange.’’ See BZX Rule 1.5(n). and to obtain any additional prepare and send the report or to
4 15 U.S.C. 78s(b)(3)(A).
information necessary to gauge the prepare the information for the FOCUS
5 See Securities Exchange Act Release No. 79103,
broker-dealer’s financial or operational report (as required by the firm’s DEA, if
81 FR 72624 (Oct. 20, 2016). condition.
6 15 U.S.C. 78s(b)(2).
applicable). Therefore, the Commission
Rule 17a–11 also requires over-the- estimates the total annual reporting
7 See Securities Exchange Act Release No. 80461,
counter (‘‘OTC’’) derivatives dealers and burden arising from this section of the
82 FR 18681 (Apr. 20, 2017). The Commission
broker-dealers that are permitted to amendment will be approximately 72
designated June 17, 2017, as the date by which it
should approve or disapprove the proposed rule
compute net capital pursuant to hours.1
change. Appendix E to Exchange Act Rule 15c3– Therefore, the total annual reporting
8 See letter to Brent J. Fields, Secretary, 1 to notify the Commission when their burden associated with Rule 17a–11 is
Commission, from Kyle Murray, Assistant General tentative net capital drops below certain approximately 335 hours.2
Counsel, Bats Global Markets, Inc., dated November levels. Written comments are invited on: (a)
To ensure the provision of these types
asabaliauskas on DSK3SPTVN1PROD with NOTICES

22, 2016; letter to Brent J. Fields, Secretary, Whether the proposed collection of
Commission, from Douglas A. Cifu, Chief Executive of notices to the Commission, Rule 17a– information is necessary for the proper
Officer, Virtu Financial, Inc., dated December 20, 11 requires every national securities performance of the functions of the
2016; and letter to Brent J. Fields, Secretary,
exchange or national securities Commission, including whether the
Commission, from Andrew Madar, Senior Associate
General Counsel, NASDAQ Stock Market LLC,
association to notify the Commission information shall have practical utility;
dated January 27, 2017. Comment letters are when it learns that a member broker- (b) the accuracy of the Commission’s
available at: https://www.sec.gov/comments/sr- dealer has failed to send a notice or
batsbzx-2016-60/batsbzx201660.shtml. transmit a report required under the 16 broker-dealers × 12 hours per year = 72 hours.
9 17 CFR 200.30–3(a)(12). Rule. 2 253 + 10 + 72.

VerDate Sep<11>2014 19:43 May 23, 2017 Jkt 241001 PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 E:\FR\FM\24MYN1.SGM 24MYN1
Federal Register / Vol. 82, No. 99 / Wednesday, May 24, 2017 / Notices 23895

estimate of the burden of the proposed I. Self-Regulatory Organization’s Arca, Inc. and NYSE National, Inc.5
collection of information; (c) ways to Statement of the Terms of Substance of (collectively, the ‘‘Participants’’) filed
enhance the quality, utility, and clarity the Proposed Rule Change with the Commission, pursuant to
of the information collected; and (d) The Exchange proposes to adopt a fee Section 11A of the Exchange Act 6 and
ways to minimize the burden of the schedule to establish the fees for Rule 608 of Regulation NMS
collection of information on Industry Members related to the thereunder,7 the CAT NMS Plan.8 The
respondents, including through the use National Market System Plan Governing Participants filed the Plan to comply
of automated collection techniques or the Consolidated Audit Trail (the ‘‘CAT with Rule 613 of Regulation NMS under
other forms of information technology. NMS Plan’’ or ‘‘Plan’’) at Section X of the Exchange Act. The Plan was
Consideration will be given to the ISE Fee Schedule. published for comment in the Federal
comments and suggestions submitted in The text of the proposed rule change Register on May 17, 2016,9 and
writing within 60 days of this is available on the Exchange’s Web site approved by the Commission, as
publication. at www.ise.com, at the principal office modified, on November 15, 2016.10 The
An agency may not conduct or of the Exchange, and at the Plan is designed to create, implement
sponsor, and a person is not required to Commission’s Public Reference Room. and maintain a consolidated audit trail
respond to, a collection of information (‘‘CAT’’) that would capture customer
II. Self-Regulatory Organization’s
under the PRA unless it displays a and order event information for orders
Statement of the Purpose of, and
currently valid OMB control number. in NMS Securities and OTC Equity
Statutory Basis for, the Proposed Rule
Please direct your written comments Change Securities, across all markets, from the
to: Pamela Dyson, Director/Chief time of order inception through routing,
Information Officer, Securities and In its filing with the Commission, the cancellation, modification, or execution
Exchange Commission, c/o Remi Pavlik- Exchange included statements in a single consolidated data source.
Simon, 100 F Street NE., Washington, concerning the purpose of and basis for
The Plan accomplishes this by creating
DC 20549, or send an email to: PRA_ the proposed rule change and discussed
CAT NMS, LLC (the ‘‘Company’’), of
Mailbox@sec.gov. any comments it received on the
which each Participant is a member, to
proposed rule change. The text of these
Dated: May 19, 2017. statements may be examined at the operate the CAT.11 Under the CAT NMS
Eduardo A. Aleman, places specified in Item IV below. The Plan, the Operating Committee of the
Exchange has prepared summaries, set Company (‘‘Operating Committee’’) has
Assistant Secretary.
forth in sections A, B, and C below, of discretion to establish funding for the
[FR Doc. 2017–10618 Filed 5–23–17; 8:45 am]
the most significant aspects of such Company to operate the CAT, including
BILLING CODE 8011–01–P
statements. establishing fees that the Participants
will pay, and establishing fees for
A. Self-Regulatory Organization’s Industry Members that will be
SECURITIES AND EXCHANGE Statement of the Purpose of, and the implemented by the Participants (‘‘CAT
COMMISSION Statutory Basis for, the Proposed Rule Fees’’).12 The Participants are required
Change
to file with the SEC under Section 19(b)
[Release No. 34–80715; File No. SR–ISE– 1. Purpose of the Exchange Act any such CAT Fees
2017–45]
The purpose of the proposed rule applicable to Industry Members that the
Self-Regulatory Organizations; Nasdaq change is to adopt a fee schedule to Operating Committee approves.13
ISE, LLC; Notice of Filing and establish the fees for Industry Members Accordingly, the Exchange submits this
Immediate Effectiveness of Proposed related to the CAT NMS Plan. fee filing to propose the Consolidated
Rule Change To Adopt Section X of the Bats BYX Exchange, Inc., Bats BZX Audit Trail Funding Fees, which will
ISE Fee Schedule Exchange, Inc., Bats EDGA Exchange, require Industry Members that are SRO
Inc., Bats EDGX Exchange, Inc., BOX members to pay the CAT Fees
May 18, 2017. Options Exchange LLC, C2 Options determined by the Operating
Pursuant to Section 19(b)(1) of the Exchange, Incorporated, Chicago Board Committee.
Securities Exchange Act of 1934 (‘‘Act’’ Options Exchange, Incorporated,
or ‘‘Exchange Act’’),1 and Rule 19b–4 Chicago Stock Exchange, Inc., Financial 5 National Stock Exchange, Inc. has been renamed

Industry Regulatory Authority, Inc. NYSE National, Inc. See Securities Exchange Act
thereunder,2 notice is hereby given that Release No. 79902 (Jan. 30, 2017), 82 FR 9258
on May 12, 2017, Nasdaq ISE, LLC (‘‘FINRA’’), Investors’ Exchange LLC, (February 3, 2017).
(‘‘ISE’’ or ‘‘Exchange’’) filed with the Miami International Securities 6 15 U.S.C. 78k–1.

Securities and Exchange Commission Exchange, LLC, MIAX PEARL, LLC, 7 17 CFR 242.608.

(‘‘SEC’’ or ‘‘Commission’’) the proposed NASDAQ BX, Inc., Nasdaq GEMX, LLC, 8 See Letter from the Participants to Brent J.

Nasdaq ISE, LLC, Nasdaq MRX, LLC,4 Fields, Secretary, Commission, dated September 30,
rule change as described in Items I, II, 2014; and Letter from Participants to Brent J. Fields,
and III below, which Items have been NASDAQ PHLX LLC, The NASDAQ Secretary, Commission, dated February 27, 2015.
prepared by the Exchange.3 The Stock Market LLC, New York Stock On December 24, 2015, the Participants submitted
Commission is publishing this notice to Exchange LLC, NYSE MKT LLC, NYSE an amendment to the CAT NMS Plan. See Letter
from Participants to Brent J. Fields, Secretary,
solicit comments on the proposed rule
asabaliauskas on DSK3SPTVN1PROD with NOTICES

Commission, dated December 23, 2015.
change from interested persons. 4 ISE Gemini, LLC, ISE Mercury, LLC and
9 Securities Exchange Act Release No. 77724
International Securities Exchange, LLC have been
(April 27, 2016), 81 FR 30614 (May 17, 2016).
renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC, 10 Securities Exchange Act Release No. 79318
1 15 U.S.C. 78s(b)(1). and Nasdaq ISE, LLC, respectively. See Securities
2 17 CFR 240.19b–4. Exchange Act Release No. 80248 (March 15, 2017), (November 15, 2016), 81 FR 84696 (November 23,
3 The Exchange originally filed the proposed rule 82 FR 14547 (March 21, 2017); Securities Exchange 2016) (‘‘Approval Order’’).
11 The Plan also serves as the limited liability
change on May 3, 2017 under File No. SR–ISE– Act Release No. 80326 (March 29, 2017), 82 FR
2017–40. The Exchange subsequently withdrew that 16460 (April 4, 2017); and Securities Exchange Act company agreement for the Company.
12 Section 11.1(b) of the CAT NMS Plan.
filing on May 12, 2017 and filed this proposed rule Release No. 80325 (March 29, 2017), 82 FR 16445
change. (April 4, 2017). 13 Id.

VerDate Sep<11>2014 19:43 May 23, 2017 Jkt 241001 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 E:\FR\FM\24MYN1.SGM 24MYN1
Document Created: 2017-05-24 01:03:10
Document Modified: 2017-05-24 01:03:10
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 23894