83 FR 2254 - Proposed Collection; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 10 (January 16, 2018)
Federal Register Volume 83, Issue 10 (January 16, 2018)
| Page Range | 2254-2255 | |
| FR Document | 2018-00492 |
[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)] [Notices] [Pages 2254-2255] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-00492] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270-614, OMB Control No. 3235-0682] 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 13h-1 and Form 13H 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'') is soliciting comments on the existing collection of information provided for Rule 13h-1 (17 CFR 240.13h-1) and Form 13H--registration of large traders \1\ submitted pursuant to [[Page 2255]] Section 13(h) of 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. --------------------------------------------------------------------------- \1\ Rule 13h-1(a)(1) defines ``large trader'' as any person that directly or indirectly, including through other persons controlled by such person, exercises investment discretion over one or more accounts and effects transactions for the purchase or sale of any NMS security for or on behalf of such accounts, by or through one or more registered broker-dealers, in an aggregate amount equal to or greater than the identifying activity level or voluntarily registers as a large trader by filing electronically with the Commission Form 13H. --------------------------------------------------------------------------- Rule 13h-1 and Form 13H under Section 13(h) of the Exchange Act established a large trader reporting framework.\2\ The framework assists the Commission in identifying and obtaining certain baseline information about traders that conduct a substantial amount of trading activity, as measured by volume or market value, in the U.S. securities markets. --------------------------------------------------------------------------- \2\ See Securities Exchange Act Release No. 64976 (July 27, 2011), 76 FR 46959 (August 3, 2011). --------------------------------------------------------------------------- The identification, recordkeeping, and reporting framework provides the Commission with a mechanism to identify large traders and obtain additional information on their trading activity. Specifically, the system requires large traders to identify themselves to the Commission and make certain disclosures to the Commission on Form 13H. Upon receipt of Form 13H, the Commission issues a unique identification number to the large trader, which the large trader then provides to its registered broker-dealers. Certain registered broker-dealers are required to maintain transaction records for each large trader, and are required to report that information to the Commission upon request.\3\ In addition, certain registered broker-dealers are required to adopt procedures to monitor their customers for activity that would trigger the identification requirements of the rule. --------------------------------------------------------------------------- \3\ The Commission, pursuant to Rule 17a-25 (17 CFR 240.17a-25), currently collects transaction data from registered broker-dealers through the Electronic Blue Sheets (``EBS'') system to support its regulatory and enforcement activities. The large trader framework added two new fields, the time of the trade and the identity of the trader, to the EBS system. --------------------------------------------------------------------------- The respondents to the collection of information are large traders. There are currently approximately 6,300 large traders and 300 registered broker-dealers. Based on its experience collecting initial Forms 13H in previous years, the Commission estimates that approximately 600 new large traders will register each year and thus be subject to quarterly and annual reporting requirements over the next three years. Each new large trader respondent files one response, which takes approximately 20 hours to complete. The average internal cost of compliance per response is $5,615, calculated as follows: (3 hours of compliance manager time at $307 per hour) + (7 hours of legal time at $362 per hour) + (10 hours of paralegal time at $212 per hour) = $5,615. Additionally, on average, each large trader respondent (including new respondents) files 2 responses per year, which take approximately 6 hours to complete. The average internal cost of compliance per response is $1,770, calculated as follows: (2 hours of compliance manager time at $307 per hour) + (2 hours of legal time at $362 per hour) + (2 hours of paralegal time at $212 per hour) = $1,770. Each registered broker-dealer's monitoring requirement takes approximately 15 hours per year. The average internal cost of compliance is $5,430, calculated as follows: 15 hours of legal time at $362 per hour = $5,430. The Commission estimates that it may send 100 requests specifically seeking large trader data per year to each registered broker-dealer subject to the rule, and it would take each registered broker-dealer 2 hours to comply with each request. Accordingly, the annual reporting hour burden for a broker-dealer is estimated to be 200 burden hours (100 requests x 2 burden hours/request = 200 burden hours). The average internal cost of compliance per response is $432, calculated as follows: 2 hours of paralegal time at $212 per hour = $432. Compliance with Rule 13h-1 is mandatory. The information collection under proposed Rule 13h-1 is considered confidential subject to the limited exceptions provided by the Freedom of Information Act.\4\ --------------------------------------------------------------------------- \4\ See 5 U.S.C. 552 and 15 U.S.C. 78m(h)(7). --------------------------------------------------------------------------- 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 estimates 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 C. 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: January 9, 2018. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-00492 Filed 1-12-18; 8:45 am] BILLING CODE 8011-01-P
![2254 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices
at or below the prices that competing maintain their competitive standing in communications relating to the
exchanges charge for their data feeds. the financial markets. proposed rule change between the
The Exchange notes that although fees Commission and any person, other than
C. Self-Regulatory Organization’s
for external distribution of data feeds those that may be withheld from the
Statement on Comments on the
are typically higher than internal public in accordance with the
Proposed Rule Change Received From
distribution fees, the Exchange proposes provisions of 5 U.S.C. 552, will be
Members, Participants, or Others
to charge the same price for both available for website viewing and
internal and external distribution of the No written comments were either printing in the Commission’s Public
ISE Trade Feed as a means of solicited or received. Reference Room, 100 F Street NE,
incentivizing external distribution. III. Date of Effectiveness of the Washington, DC 20549, on official
The Exchange also notes that it Proposed Rule Change and Timing for business days between the hours of
proposes to price its Trade Feed higher Commission Action 10:00 a.m. and 3:00 p.m. Copies of the
than that of the Nasdaq GEMX product. filing also will be available for
The Exchange believes that this price The foregoing rule change has become inspection and copying at the principal
differential is reasonable given the fact effective pursuant to Section office of the Exchange. All comments
that the Exchange has more listings, 19(b)(3)(A)(ii) of the Act.11 At any time received will be posted without change.
strike volume, and market makers than within 60 days of the filing of the Persons submitting comments are
does Nasdaq GEMX, such that the proposed rule change, the Commission cautioned that we do not redact or edit
Exchange’s Trade Feed product has summarily may temporarily suspend personal identifying information from
greater potential value to customers such rule change if it appears to the comment submissions. You should
than does the Nasdaq GEMX product. Commission that such action is: (i) submit only information that you wish
Necessary or appropriate in the public to make available publicly. All
The Exchange believes that the
interest; (ii) for the protection of submissions should refer to File
proposal is an equitable allocation and
investors; or (iii) otherwise in Number SR–ISE–2017–113 and should
is not unfairly discriminatory because
furtherance of the purposes of the Act. be submitted on or before February 6,
the Exchange will apply the same fee to
If the Commission takes such action, the 2018.
all, regardless of membership.
Commission shall institute proceedings
B. Self-Regulatory Organization’s to determine whether the proposed rule For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Statement on Burden on Competition should be approved or disapproved. authority.12
The Exchange does not believe that IV. Solicitation of Comments Eduardo A. Aleman,
the proposed rule change will impose Interested persons are invited to Assistant Secretary.
any burden on competition not submit written data, views, and [FR Doc. 2018–00522 Filed 1–12–18; 8:45 am]
necessary or appropriate in furtherance arguments concerning the foregoing, BILLING CODE 8011–01–P
of the purposes of the Act. In terms of including whether the proposed rule
inter-market competition, the Exchange change is consistent with the Act.
notes that it operates in a highly Comments may be submitted by any of SECURITIES AND EXCHANGE
competitive market in which market the following methods: COMMISSION
participants can readily favor competing
venues if they deem fee levels at a Electronic Comments [SEC File No. 270–614, OMB Control No.
3235–0682]
particular venue to be excessive, or • Use the Commission’s internet
rebate opportunities available at other comment form (http://www.sec.gov/ Proposed Collection; Comment
venues to be more favorable. In such an rules/sro.shtml); or Request
environment, the Exchange must • Send an email to rule-comments@
continually adjust its fees to remain sec.gov. Please include File Number SR– Upon Written Request, Copies Available
competitive with other exchanges. ISE–2017–113 on the subject line. From: Securities and Exchange
Because competitors are free to modify Commission, Office of FOIA Services,
their own fees in response, and because Paper Comments 100 F Street NE, Washington, DC
market participants may readily adjust • Send paper comments in triplicate 20549–2736
their order routing practices, the to Secretary, Securities and Exchange Extension:
Exchange believes that the degree to Commission, 100 F Street NE, Rule 13h–1 and Form 13H
which fee changes in this market may Washington, DC 20549–1090.
impose any burden on competition is All submissions should refer to File Notice is hereby given that pursuant
extremely limited. Number SR–ISE–2017–113. This file to the Paperwork Reduction Act of 1995
In this instance, the proposed number should be included on the (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
establishment of the Nasdaq ISE Trade subject line if email is used. To help the Securities and Exchange Commission
Feed fee does not impose an undue Commission process and review your (‘‘Commission’’) is soliciting comments
burden on competition because a comments more efficiently, please use on the existing collection of information
subscription to the Nasdaq ISE Trade only one method. The Commission will provided for Rule 13h–1 (17 CFR
Feed is completely voluntary and post all comments on the Commission’s 240.13h–1) and Form 13H—registration
subject to extensive competition from internet website (http://www.sec.gov/ of large traders 1 submitted pursuant to
other exchanges. In sum, if the change rules/sro.shtml). Copies of the
daltland on DSKBBV9HB2PROD with NOTICES
12 17 CFR 200.30–3(a)(12).
proposed herein is unattractive to submission, all subsequent 1 Rule 13h–1(a)(1) defines ‘‘large trader’’ as any
market participants, it is likely that the amendments, all written statements person that directly or indirectly, including through
Exchange will lose market share as a with respect to the proposed rule other persons controlled by such person, exercises
result. Accordingly, the Exchange does change that are filed with the investment discretion over one or more accounts
and effects transactions for the purchase or sale of
not believe that the proposed change Commission, and all written any NMS security for or on behalf of such accounts,
will impair the ability of members or by or through one or more registered broker-dealers,
competing order execution venues to 11 15 U.S.C. 78s(b)(3)(A)(ii). in an aggregate amount equal to or greater than the
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![Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 2255
Section 13(h) of the Securities Exchange per response is $5,615, calculated as under the PRA unless it displays a
Act of 1934 (15 U.S.C. 78a et seq.) follows: (3 hours of compliance manager currently valid OMB control number.
(‘‘Exchange Act’’). The Commission time at $307 per hour) + (7 hours of Please direct your written comments
plans to submit this existing collection legal time at $362 per hour) + (10 hours to: Pamela C. Dyson, Director/Chief
of information to the Office of of paralegal time at $212 per hour) = Information Officer, Securities and
Management and Budget for extension $5,615. Additionally, on average, each Exchange Commission, c/o Remi Pavlik-
and approval. large trader respondent (including new Simon, 100 F Street NE, Washington,
Rule 13h–1 and Form 13H under respondents) files 2 responses per year, DC 20549, or send an email to: PRA_
Section 13(h) of the Exchange Act which take approximately 6 hours to Mailbox@sec.gov.
established a large trader reporting complete. The average internal cost of Dated: January 9, 2018.
framework.2 The framework assists the compliance per response is $1,770, Eduardo A. Aleman,
Commission in identifying and calculated as follows: (2 hours of
obtaining certain baseline information Assistant Secretary.
compliance manager time at $307 per
about traders that conduct a substantial [FR Doc. 2018–00492 Filed 1–12–18; 8:45 am]
hour) + (2 hours of legal time at $362
amount of trading activity, as measured per hour) + (2 hours of paralegal time at BILLING CODE 8011–01–P
by volume or market value, in the U.S. $212 per hour) = $1,770.
securities markets. Each registered broker-dealer’s
The identification, recordkeeping, and SECURITIES AND EXCHANGE
monitoring requirement takes
reporting framework provides the COMMISSION
approximately 15 hours per year. The
Commission with a mechanism to average internal cost of compliance is [Release No. 34–82468; File No. SR–
identify large traders and obtain $5,430, calculated as follows: 15 hours CboeEDGA–2017–003]
additional information on their trading of legal time at $362 per hour = $5,430.
activity. Specifically, the system The Commission estimates that it may Self-Regulatory Organizations; Cboe
requires large traders to identify send 100 requests specifically seeking EDGA Exchange, Inc.; Notice of Filing
themselves to the Commission and large trader data per year to each and Immediate Effectiveness of a
make certain disclosures to the registered broker-dealer subject to the Proposed Rule Change Related to Fees
Commission on Form 13H. Upon receipt rule, and it would take each registered for the EDGA Depth Market Data
of Form 13H, the Commission issues a broker-dealer 2 hours to comply with Product
unique identification number to the each request. Accordingly, the annual
large trader, which the large trader then January 9, 2018.
reporting hour burden for a broker-
provides to its registered broker-dealers. Pursuant to Section 19(b)(1) of the
dealer is estimated to be 200 burden
Certain registered broker-dealers are Securities Exchange Act of 1934 (the
hours (100 requests × 2 burden hours/
required to maintain transaction records ‘‘Act’’),1 and Rule 19b–4 thereunder,2
request = 200 burden hours). The
for each large trader, and are required to notice is hereby given that on December
average internal cost of compliance per
report that information to the 27, 2017, Cboe EDGA Exchange, Inc.
response is $432, calculated as follows:
Commission upon request.3 In addition, (the ‘‘Exchange’’ or ‘‘EDGA’’) filed with
2 hours of paralegal time at $212 per
certain registered broker-dealers are the Securities and Exchange
hour = $432.
required to adopt procedures to monitor Commission (the ‘‘Commission’’) the
Compliance with Rule 13h–1 is
their customers for activity that would proposed rule change as described in
mandatory. The information collection
trigger the identification requirements of Items I, II, and III below, which Items
under proposed Rule 13h–1 is
the rule. have been prepared by the Exchange.
considered confidential subject to the
The respondents to the collection of The Exchange has designated the
limited exceptions provided by the
information are large traders. There are proposed rule change as one
Freedom of Information Act.4
currently approximately 6,300 large establishing or changing a member due,
traders and 300 registered broker- Written comments are invited on: (a) fee, or other charge imposed by the
dealers. Based on its experience Whether the proposed collection of Exchange under Section 19(b)(3)(A)(ii)
collecting initial Forms 13H in previous information is necessary for the proper of the Act 3 and Rule 19b–4(f)(2)
years, the Commission estimates that performance of the functions of the
thereunder,4 which renders the
approximately 600 new large traders Commission, including whether the
proposed rule change effective upon
will register each year and thus be information shall have practical utility;
filing with the Commission. The
subject to quarterly and annual (b) the accuracy of the Commission’s
Commission is publishing this notice to
reporting requirements over the next estimates of the burden of the proposed
solicit comments on the proposed rule
three years. collection of information; (c) ways to
change from interested persons.
Each new large trader respondent files enhance the quality, utility, and clarity
one response, which takes of the information collected; and (d) I. Self-Regulatory Organization’s
approximately 20 hours to complete. ways to minimize the burden of the Statement of the Terms of Substance of
The average internal cost of compliance collection of information on the Proposed Rule Change
respondents, including through the use The Exchange filed a proposal to
identifying activity level or voluntarily registers as of automated collection techniques or amend the Market Data section of its fee
a large trader by filing electronically with the other forms of information technology. schedule to introduce new fees for Non-
Commission Form 13H. Consideration will be given to Display Usage of EDGA Depth.
2 See Securities Exchange Act Release No. 64976
comments and suggestions submitted in The text of the proposed rule change
daltland on DSKBBV9HB2PROD with NOTICES
(July 27, 2011), 76 FR 46959 (August 3, 2011).
3 The Commission, pursuant to Rule 17a–25 (17
writing within 60 days of this is available at the Exchange’s website at
CFR 240.17a–25), currently collects transaction data publication. www.markets.cboe.com, at the principal
from registered broker-dealers through the An agency may not conduct or
Electronic Blue Sheets (‘‘EBS’’) system to support sponsor, and a person is not required to 1 15 U.S.C. 78s(b)(1).
its regulatory and enforcement activities. The large respond to, a collection of information 2 17 CFR 240.19b–4.
trader framework added two new fields, the time of
3 15 U.S.C. 78s(b)(3)(A)(ii).
the trade and the identity of the trader, to the EBS
system. 4 See 5 U.S.C. 552 and 15 U.S.C. 78m(h)(7). 4 17 CFR 240.19b–4(f)(2).
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Document Created: 2018-01-13 02:02:54
Document Modified: 2018-01-13 02:02:54
| 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 | 83 FR 2254 |
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