82 FR 35001 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 143 (July 27, 2017)

Page Range		35001-35002
FR Document		2017-15779
Federal Register, Volume 82 Issue 143 (Thursday, July 27, 2017)
[Federal Register Volume 82, Number 143 (Thursday, July 27, 2017)]
[Notices]
[Pages 35001-35002]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-15779]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-094; OMB Control No. 3235-0085]


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:
    Rule 17a-11

    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 a 
request for approval of extension of the previously approved 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'').
    In response to an operational crisis in the securities industry 
between 1967 and 1970, the Commission adopted Rule 17a-11 under the 
Exchange Act on July 11, 1971. Rule 17a-11 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.

[[Page 35002]]

    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\
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    \1\ 6 broker-dealers x 12 hours per year = 72 hours.
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    Therefore, the total annual reporting burden associated with Rule 
17a-11 is approximately 335 hours.\2\
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    \2\ 253 + 10 + 72.
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    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 current valid OMB control number.
    The public may view 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: July 21, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-15779 Filed 7-26-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 143 / Thursday, July 27, 2017 / Notices 35001

III. Date of Effectiveness of the Commission takes such action, the For the Commission, by the Division of
Proposed Rule Change and Timing for Commission shall institute proceedings Trading and Markets, pursuant to delegated
Commission Action to determine whether the proposed rule authority.20
should be approved or disapproved. Eduardo A. Aleman,
Because the foregoing proposed rule
Assistant Secretary.
change does not: (i) Significantly affect IV. Solicitation of Comments [FR Doc. 2017–15771 Filed 7–26–17; 8:45 am]
the protection of investors or the public
interest; (ii) impose any significant BILLING CODE 8011–01–P
Interested persons are invited to
burden on competition; and (iii) become submit written data, views, and
operative for 30 days after the date of arguments concerning the foregoing,
the filing, or such shorter time as the SECURITIES AND EXCHANGE
including whether the proposed rule COMMISSION
Commission may designate, it has change is consistent with the Act.
become effective pursuant to 19(b)(3)(A) Comments may be submitted by any of [SEC File No. 270–094; OMB Control No.
of the Act 14 and Rule 19b–4(f)(6) 15 the following methods: 3235–0085]
thereunder.
A proposed rule change filed under Electronic Comments Submission for OMB Review;
Rule 19b–4(f)(6) 16 normally does not Comment Request
become operative for 30 days after the • Use the Commission’s Internet
comment form (http://www.sec.gov/ Upon Written Request, Copies Available
date of filing. However, pursuant to From: Securities and Exchange
Rule 19b–4(f)(6)(iii),17 the Commission rules/sro.shtml); or
Commission, Office of FOIA Services,
may designate a shorter time if such • Send an email to rule-comments@ 100 F Street NE., Washington, DC
action is consistent with the protection sec.gov. Please include File Number SR– 20549–2736.
of investors and the public interest. The MIAX–2017–33 on the subject line.
Exchange has asked the Commission to Extension:
Paper Comments Rule 17a–11
waive the 30-day operative delay so that
the proposal may become operative Notice is hereby given that pursuant
• Send paper comments in triplicate
immediately upon filing. The to the Paperwork Reduction Act of 1995
to Secretary, Securities and Exchange
Commission believes that waiving the (44 U.S.C. 3501 et seq.) the Securities
Commission, 100 F Street NE.,
30-day operative delay is consistent and Exchange Commission
Washington, DC 20549–1090. (‘‘Commission’’) has submitted to the
with the protection of investors and the
public interest as it will immediately All submissions should refer to File Office of Management and Budget a
provide investors with additional Number SR–MIAX–2017–33. This file request for approval of extension of the
flexibility in trading and hedging number should be included on the previously approved collection of
positions in IVV options on the subject line if email is used. To help the information provided for in Rule 17a–11
Exchange. The Commission also notes Commission process and review your (17 CFR 240.17a–11) under the
that the proposed rule change is comments more efficiently, please use Securities Exchange Act of 1934 (15
consistent with the strike price intervals only one method. The Commission will U.S.C. 78a et seq.) (‘‘Exchange Act’’).
in IVV options that is permitted on post all comments on the Commission’s In response to an operational crisis in
other exchanges and thus raises no new Internet Web site (http://www.sec.gov/ the securities industry between 1967
novel or substantive issues.18 rules/sro.shtml). Copies of the and 1970, the Commission adopted Rule
Accordingly, the Commission hereby submission, all subsequent 17a–11 under the Exchange Act on July
waives the 30-day operative delay amendments, all written statements 11, 1971. Rule 17a–11 requires broker-
requirement and designates the with respect to the proposed rule dealers that are experiencing financial
proposed rule change as operative upon change that are filed with the or operational difficulties to provide
filing.19 Commission, and all written notice to the Commission, the broker-
At any time within 60 days of the communications relating to the dealer’s designated examining authority
filing of the proposed rule change, the proposed rule change between the (‘‘DEA’’), and the Commodity Futures
Commission summarily may Commission and any person, other than Trading Commission (‘‘CFTC’’) if the
temporarily suspend such rule change if those that may be withheld from the broker-dealer is registered with the
it appears to the Commission that such CFTC as a futures commission
public in accordance with the
action is necessary or appropriate in the merchant. Rule 17a–11 is an integral
provisions of 5 U.S.C. 552, will be
public interest, for the protection of part of the Commission’s financial
available for Web site viewing and
investors, or otherwise in furtherance of responsibility program which enables
printing in the Commission’s Public
the purposes of the Act. If the the Commission, a broker-dealer’s DEA,
Reference Room, 100 F Street NE.,
and the CFTC to increase surveillance of
Washington, DC 20549, on official
a broker-dealer experiencing difficulties
14 15 U.S.C. 78s(b)(3)(A). business days between the hours of
15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– and to obtain any additional
10:00 a.m. and 3:00 p.m. Copies of the
4(f)(6) requires a self-regulatory organization to give information necessary to gauge the
filing also will be available for
the Commission written notice of its intent to file broker-dealer’s financial or operational
the proposed rule change at least five business days inspection and copying at the principal condition.
prior to the date of filing of the proposed rule office of the Exchange. All comments Rule 17a–11 also requires over-the-
change, or such shorter time as designated by the received will be posted without change;
Commission. The Exchange has satisfied this counter (‘‘OTC’’) derivatives dealers and
the Commission does not edit personal broker-dealers that are permitted to
mstockstill on DSK30JT082PROD with NOTICES

requirement.
16 17 CFR 240.19b–4(f)(6). identifying information from compute net capital pursuant to
17 17 CFR 240.19b–4(f)(6)(iii). submissions. You should submit only Appendix E to Exchange Act Rule 15c3–
18 See supra note 11. information that you wish to make 1 to notify the Commission when their
19 For purposes only of waiving the 30-day available publicly. All submissions tentative net capital drops below certain
operative delay, the Commission has also should refer to File Number SR–MIAX–
considered the proposed rule’s impact on levels.
efficiency, competition, and capital formation. See
2017–33, and should be submitted on or
15 U.S.C. 78c(f). before August 17, 2017. 20 17 CFR 200.30–3(a)(12).

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35002 Federal Register / Vol. 82, No. 143 / Thursday, July 27, 2017 / Notices

To ensure the provision of these types Therefore, the total annual reporting I. Self-Regulatory Organization’s
of notices to the Commission, Rule 17a– burden associated with Rule 17a–11 is Statement of the Terms of Substance of
11 requires every national securities approximately 335 hours.2 the Proposed Rule Change
exchange or national securities An agency may not conduct or The Exchange is filing a proposal to
association to notify the Commission sponsor, and a person is not required to amend Exchange Rule 404, Series of
when it learns that a member broker- respond to, a collection of information Option Contracts Open for Trading,
dealer has failed to send a notice or under the PRA unless it displays a Interpretations and Policies .10, to
transmit a report required under the current valid OMB control number. include the iShares S&P 500 Index ETF
Rule. (‘‘IVV’’) in the list of Exchange-Traded
The public may view background
Compliance with the Rule is documentation for this information Funds (‘‘ETFs’’) that are eligible for $1
mandatory. The Commission will collection at the following Web site, strike price intervals.
generally not publish or make available www.reginfo.gov. Comments should be The text of the proposed rule change
to any person notices or reports received directed to: (i) Desk Officer for the is available on the Exchange’s Web site
pursuant to Rule 17a–11. The Securities and Exchange Commission, at http://www.miaxoptions.com/rule-
Commission believes that information Office of Information and Regulatory filings/pearl at MIAX PEARL’s principal
obtained under Rule 17a–11 relates to a Affairs, Office of Management and office, and at the Commission’s Public
condition report prepared for the use of Budget, Room 10102, New Executive Reference Room.
the Commission, other federal Office Building, Washington, DC 20503
governmental authorities, and securities II. Self-Regulatory Organization’s
or by sending an email to: Shagufta_ Statement of the Purpose of, and
industry self-regulatory organizations Ahmed@omb.eop.gov; and (ii) Pamela
responsible for the regulation or Statutory Basis for, the Proposed Rule
Dyson, Director/Chief Information Change
supervision of financial institutions. Officer, Securities and Exchange
The Commission expects to receive Commission, c/o Remi Pavlik-Simon, In its filing with the Commission, the
253 notices from broker-dealers whose 100 F Street NE., Washington, DC Exchange included statements
capital declines below certain specified 20549, or by sending an email to: PRA_ concerning the purpose of and basis for
levels or who are otherwise Mailbox@sec.gov. Comments must be the proposed rule change and discussed
experiencing financial or operational submitted to OMB within 30 days of any comments it received on the
problems and ten notices each year from this notice. proposed rule change. The text of these
national securities exchange or national statements may be examined at the
Dated: July 21, 2017. places specified in Item IV below. The
securities association notifying it that a
Eduardo A. Aleman, Exchange has prepared summaries, set
member broker-dealer has failed to send
the Commission a notice or transmit a Assistant Secretary. forth in sections A, B, and C below, of
report required under the Rule. The [FR Doc. 2017–15779 Filed 7–26–17; 8:45 am] the most significant aspects of such
Commission expects that it will take BILLING CODE 8011–01–P statements.
approximately one hour to prepare and A. Self-Regulatory Organization’s
transmit each notice. Statement of the Purpose of, and the
SECURITIES AND EXCHANGE
Rule 17a–11 also requires broker- Statutory Basis for, the Proposed Rule
COMMISSION
dealers engaged in securities lending or Change
repurchase activities to either: (1) File a
[Release No. 34–81184; File No. SR– 1. Purpose
notice with the Commission and their
DEA whenever the total money payable PEARL–2017–32] The Exchange proposes to amend
against all securities loaned, subject to Exchange Rule 404, Series of Option
Self-Regulatory Organizations; MIAX Contracts Open for Trading, to modify
a reverse repurchase agreement or the PEARL, LLC ; Notice of Filing and
contract value of all securities borrowed the strike setting regime for IVV options
Immediate Effectiveness of a Proposed by including IVV in the list of ETFs that
or subject to a repurchase agreement, Rule Change To Amend Rule 404,
exceeds 2,500% of tentative net capital; are eligible for $1 strike price intervals
Series of Option Contracts Open for under Interpretations and Policies .10.
or, alternatively, (2) report monthly Trading
their securities lending and repurchase The Exchange notes that this is a
activities to their DEA in a form July 21, 2017. competitive filing based on an
acceptable to their DEA. immediately effective filing recently
Pursuant to the provisions of Section submitted by the Chicago Board Options
The Commission estimates that, 19(b)(1) of the Securities Exchange Act
annually, six broker-dealers will submit Exchange, Incorporated (‘‘CBOE’’).3
of 1934 (‘‘Act’’)1 and Rule 19b–4 Specifically, the Exchange proposes to
the monthly stock loan/borrow report. thereunder,2 notice is hereby given that
The Commission estimates each firm modify the interval setting regime for
on July 11, 2017, MIAX PEARL, LLC IVV options to allow $1 strike price
will spend, on average, approximately (‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed
one hour per month (or twelve hours intervals above $200. The Exchange
with the Securities and Exchange believes that the proposed rule change
per year) of employee resources to Commission (‘‘Commission’’) a
prepare and send the report or to would make IVV options easier for
proposed rule change as described in investors and traders to use and more
prepare the information for the FOCUS Items I and II below, which Items have
report (as required by the firm’s DEA, if tailored to their investment needs.
been prepared by the Exchange. The
mstockstill on DSK30JT082PROD with NOTICES

applicable). Therefore, the Commission Additionally, the interval setting regime
Commission is publishing this notice to the Exchange proposes to apply to IVV
estimates the total annual reporting solicit comments on the proposed rule
burden arising from this section of the options is currently applied to options
change from interested persons. on units of the Standard & Poor’s
amendment will be approximately 72
hours.1 2 253 + 10 + 72. 3 See Securities Exchange Act Release No. 80913
1 15 U.S.C. 78s(b)(1). (June 13, 2017), 82 FR 27907 (June 19, 2017) (SR–
16 broker-dealers × 12 hours per year = 72 hours. 2 17 CFR 240.19b–4. CBOE–2017–048).

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Document Created: 2017-07-27 02:07:36
Document Modified: 2017-07-27 02:07:36
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 35001