83 FR 34190 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 139 (July 19, 2018)

Page Range		34190-34191
FR Document		2018-15374
Federal Register, Volume 83 Issue 139 (Thursday, July 19, 2018)
[Federal Register Volume 83, Number 139 (Thursday, July 19, 2018)]
[Notices]
[Pages 34190-34191]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-15374]


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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:
    Rule 17f-6; SEC File No. 270-392, OMB Control No. 3235-0447

    Notice is hereby given that, under the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520), the Securities and Exchange Commission (the 
``Commission'') has submitted to the Office of Management and Budget a 
request for extension of the previously approved collection of 
information discussed below.
    Rule 17f-6 (17 CFR 270.17f-6) under the Investment Company Act of 
1940 (15 U.S.C. 80a) permits registered investment companies 
(``funds'') to maintain assets (i.e., margin) with futures commission 
merchants (``FCMs'') in connection with commodity transactions effected 
on both domestic and foreign exchanges. Before the rule was adopted, 
funds generally were required to maintain such assets in special 
accounts with a custodian bank.
    The rule requires a written contract that contains certain 
provisions designed to ensure important safeguards and other benefits 
relating to the custody of fund assets by FCMs. To protect fund assets, 
the contract must require that FCMs comply with the segregation or 
secured amount requirements of the Commodity Exchange Act (``CEA'') and 
the rules under that statute. The contract also must contain a 
requirement that FCMs obtain an acknowledgment from any clearing 
organization that the fund's assets are held on behalf of the FCM's 
customers according to CEA provisions.
    Because rule 17f-6 does not impose any ongoing obligations on funds 
or FCMs, Commission staff estimates there are no costs related to 
existing contracts between funds and FCMs. This estimate does not 
include the time required by an FCM to comply with the rule's contract 
requirements because, to the extent that complying with the contract 
provisions could be considered ``collections of information,'' the 
burden hours for compliance are already included in other PRA 
submissions.\1\
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    \1\ The rule requires a contract with the FCM to contain two 
provisions requiring the FCM to comply with existing requirements 
under the CEA and rules adopted thereunder. Thus, to the extent 
these provisions could be considered collections of information, the 
hours required for compliance would be included in the collection of 
information burden hours submitted by the CFTC for its rules.

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[[Page 34191]]

    Thus, Commission staff estimates that any burden of the rule would 
be borne by funds and FCMs entering into new contracts pursuant to the 
rule. Commission staff estimates that approximately 214 fund complexes 
and 2,825 funds currently effect commodities transactions and could 
deposit margin with FCMs in connection with those transactions pursuant 
to rule 17f-6.\2\ Staff further estimates that of this number, 21 fund 
complexes and 283 funds enter into new contracts with FCMs each 
year.\3\
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    \2\ This estimate is based on the number of funds that reported 
on Form N-SAR from June 1, 2017-November 30, 2017, in response to 
sub-items E through I of item 70, that they engaged in futures and 
commodity options transactions.
    \3\ These estimates are based on the assumption that 10% of fund 
complexes and funds enter into new FCM contracts each year. This 
assumption encompasses fund complexes and funds that enter into FCM 
contracts for the first time, as well as fund complexes and fund 
that change the FCM with whom they maintain margin accounts for 
commodities transactions.
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    Based on conversations with fund representatives, Commission staff 
understands that fund complexes typically enter into contracts with 
FCMs on behalf of all funds in the fund complex that engage in 
commodities transactions. Funds covered by the contract are typically 
listed in an attachment, which may be amended to encompass new funds. 
Commission staff estimates that the burden for a fund complex to enter 
into a contract with an FCM that contains the contract requirements of 
rule 17f-6 is one hour, and further estimates that the burden to add a 
fund to an existing contract between a fund complex and an FCM is 6 
minutes.
    Accordingly, Commission staff estimates that funds and FCMs spend 
49 burden hours annually complying with the information collection 
requirements of rule 17f-6.\4\ These estimates are made solely for the 
purposes of the Paperwork Reduction Act, and are not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms.
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    \4\ This estimate is based upon the following calculation: (21 
fund complexes x 1 hour) + (283 funds x 0.1 hours) = 49 hours.
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    Compliance with the collection of information requirements of the 
rule is necessary to obtain the benefit of relying on the rule. 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.
    The public may view the background documentation for this 
information collection at the following website, 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 Candace 
Kenner, 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: July 13, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-15374 Filed 7-18-18; 8:45 am]
 BILLING CODE 8011-01-P
34190 Federal Register / Vol. 83, No. 139 / Thursday, July 19, 2018 / Notices

Commission believes that the Rule 17d– cautioned that we do not redact or edit SECURITIES AND EXCHANGE
2 Plan, RSA, and Exception reporting personal identifying information from COMMISSION
requirements, procedures, and internal comment submissions. You should
controls would help protect the submit only information that you wish Submission for OMB Review;
independence of the Exchange’s self- to make available publicly. All Comment Request
regulatory function with respect to submissions should refer to File Upon Written Request, Copies Available
ArcaSec. The Commission also believes Number SR–CHX–2018–004, and From: Securities and Exchange
that the proposed rule is designed to should be submitted on or before Commission, Office of FOIA Services,
prevent ArcaSec from acting on non- August 9, 2018. 100 F Street NE, Washington, DC
public information obtained as a result
20549–2736
of its affiliation with the Exchange, and IV. Accelerated Approval of Proposed
that the proposed changes are consistent Rule Change, as Modified by Extension:
with the Exchange Act. Amendment Nos. 1, 2, and 3 Rule 17f–6; SEC File No. 270–392, OMB
Control No. 3235–0447
III. Solicitation of Comments The Commission finds good cause to Notice is hereby given that, under the
Interested persons are invited to approve the proposed rule change, as Paperwork Reduction Act of 1995 (44
submit written data, views, and modified by Amendment Nos. 1, 2, and U.S.C. 3501–3520), the Securities and
arguments concerning the foregoing, 3 prior to the 30th day after the date of Exchange Commission (the
including whether the Amendment Nos. publication of notice of Amendments ‘‘Commission’’) has submitted to the
2 and 3 to the proposed rule change is Nos. 2 and 3 in the Federal Register. As Office of Management and Budget a
consistent with the Exchange Act. noted above, Amendment Nos. 2 and 3 request for extension of the previously
Comments may be submitted by any of do not change the structure or purpose approved collection of information
the following methods: of the proposed rule change as it was discussed below.
Electronic Comments previously published for notice and Rule 17f–6 (17 CFR 270.17f–6) under
comment.70 The Commission believes the Investment Company Act of 1940
• Use the Commission’s internet (15 U.S.C. 80a) permits registered
comment form (http://www.sec.gov/ that an additional notice and comment
period for Amendment Nos. 2 and 3 investment companies (‘‘funds’’) to
rules/sro.shtml); or maintain assets (i.e., margin) with
• Send an email to rule-comments@ before approval of the proposed rule
change would not be in furtherance of futures commission merchants
sec.gov. Please include File Number SR–
(‘‘FCMs’’) in connection with
CHX–2018–004 on the subject line. the public interest or the protection of
commodity transactions effected on
Paper Comments investors. Accordingly, the Commission
both domestic and foreign exchanges.
finds good cause, pursuant to Section Before the rule was adopted, funds
• Send paper comments in triplicate 19(b)(2) of the Exchange Act,71 to
to Secretary, Securities and Exchange generally were required to maintain
approve the proposed rule change, as such assets in special accounts with a
Commission, 100 F Street NE, modified by Amendment Nos. 1, 2, and
Washington, DC 20549–1090. custodian bank.
3, on an accelerated basis. The rule requires a written contract
All submissions should refer to File
Number SR–CHX–2018–004. This file V. Conclusion that contains certain provisions
number should be included on the designed to ensure important safeguards
subject line if email is used. To help the For the foregoing reasons, the and other benefits relating to the
Commission process and review your Commission finds that the proposed custody of fund assets by FCMs. To
comments more efficiently, please use rule change, as modified by protect fund assets, the contract must
only one method. The Commission will Amendments Nos. 1, 2, and 3 is require that FCMs comply with the
post all comments on the Commission’s consistent with the Exchange Act and segregation or secured amount
internet website (http://www.sec.gov/ the rules and regulations thereunder requirements of the Commodity
rules/sro.shtml). Copies of the applicable to a national securities Exchange Act (‘‘CEA’’) and the rules
submission, all subsequent exchange. under that statute. The contract also
amendments, all written statements must contain a requirement that FCMs
It is therefore ordered, pursuant to obtain an acknowledgment from any
with respect to the proposed rule Section 19(b)(2) of the Exchange Act 72
change that are filed with the clearing organization that the fund’s
that the proposed rule change (SR– assets are held on behalf of the FCM’s
Commission, and all written CHX–2018–004), as modified by
communications relating to the customers according to CEA provisions.
Amendments Nos. 1, 2, and 3, be, and Because rule 17f–6 does not impose
proposed rule change between the hereby is, approved on an accelerated any ongoing obligations on funds or
Commission and any person, other than
basis. FCMs, Commission staff estimates there
those that may be withheld from the
For the Commission, by the Division of are no costs related to existing contracts
public in accordance with the
Trading and Markets, pursuant to delegated between funds and FCMs. This estimate
provisions of 5 U.S.C. 552, will be
authority.73 does not include the time required by an
available for website viewing and
FCM to comply with the rule’s contract
printing in the Commission’s Public Eduardo A. Aleman,
requirements because, to the extent that
Reference Room, 100 F Street NE, Assistant Secretary. complying with the contract provisions
Washington, DC 20549, on official
sradovich on DSK3GMQ082PROD with NOTICES

[FR Doc. 2018–15370 Filed 7–18–18; 8:45 am] could be considered ‘‘collections of
business days between the hours of
BILLING CODE 8011–01–P information,’’ the burden hours for
10:00 a.m. and 3:00 p.m. Copies of the
compliance are already included in
filing also will be available for
other PRA submissions.1
inspection and copying at the principal 70 See supra notes 5 and 6.
office of the Exchange. All comments 71 15 U.S.C. 78s(b)(2). 1 The rule requires a contract with the FCM to
received will be posted without change. 72 15 U.S.C. 78s(b)(2).
contain two provisions requiring the FCM to
Persons submitting comments are 73 17 CFR 200.30–3(a)(12). comply with existing requirements under the CEA

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Federal Register / Vol. 83, No. 139 / Thursday, July 19, 2018 / Notices 34191

Thus, Commission staff estimates that The public may view the background SROs, only 2 SRO respondents have
any burden of the rule would be borne documentation for this information filed a record destruction plan with the
by funds and FCMs entering into new collection at the following website, Commission. The staff calculates that
contracts pursuant to the rule. www.reginfo.gov. Comments should be the preparation and filing of a new
Commission staff estimates that directed to: (i) Desk Officer for the record destruction plan should take 160
approximately 214 fund complexes and Securities and Exchange Commission, hours. Further, any existing SRO record
2,825 funds currently effect Office of Information and Regulatory destruction plans may require revision,
commodities transactions and could Affairs, Office of Management and over time, in response to, for example,
deposit margin with FCMs in Budget, Room 10102, New Executive changes in document retention
connection with those transactions Office Building, Washington, DC 20503, technology, which the Commission
pursuant to rule 17f–6.2 Staff further or by sending an email to: Shagufta_ estimates will take much less than the
estimates that of this number, 21 fund Ahmed@omb.eop.gov; and (ii) Pamela 160 hours estimated for a new plan. The
complexes and 283 funds enter into new Dyson, Director/Chief Information Commission estimates that each SRO
contracts with FCMs each year.3 Officer, Securities and Exchange that has filed a destruction plan will
Based on conversations with fund Commission, c/o Candace Kenner, 100 F spend approximately 30 hours per year
representatives, Commission staff Street NE, Washington, DC 20549 or making required revisions. Thus, the
understands that fund complexes send an email to: PRA_Mailbox@ total annual compliance burden is
typically enter into contracts with FCMs sec.gov. Comments must be submitted to estimated to be 60 hours per year based
on behalf of all funds in the fund OMB within 30 days of this notice. on two respondents. The approximate
complex that engage in commodities compliance cost per hour is $422,
Dated: July 13, 2018.
transactions. Funds covered by the resulting in a total internal cost of
Eduardo A. Aleman, compliance for these respondents of
contract are typically listed in an
Assistant Secretary. $25,320 per year (60 hours @ $422 per
attachment, which may be amended to
[FR Doc. 2018–15374 Filed 7–18–18; 8:45 am] hour).
encompass new funds. Commission staff
estimates that the burden for a fund BILLING CODE 8011–01–P An agency may not conduct or
complex to enter into a contract with an sponsor, and a person is not required to
FCM that contains the contract respond to, a collection of information
SECURITIES AND EXCHANGE under the PRA unless it displays a
requirements of rule 17f–6 is one hour,
COMMISSION currently valid OMB control number.
and further estimates that the burden to
add a fund to an existing contract The public may view background
Submission for OMB Review; documentation for this information
between a fund complex and an FCM is Comment Request collection at the following website:
6 minutes.
Upon Written Request, Copies Available www.reginfo.gov. Comments should be
Accordingly, Commission staff
From: Securities and Exchange directed to: (i) Desk Officer for the
estimates that funds and FCMs spend 49
Commission, Office of FOIA Services, Securities and Exchange Commission,
burden hours annually complying with
100 F Street NE, Washington, DC Office of Information and Regulatory
the information collection requirements
20549–2736 Affairs, Office of Management and
of rule 17f–6.4 These estimates are made
Budget, Room 10102, New Executive
solely for the purposes of the Paperwork Extension: Office Building, Washington, DC 20503,
Reduction Act, and are not derived from Rule 17a–6, SEC File No. 270–433, OMB or by sending an email to: Shagufta_
a comprehensive or even a Control No. 3235–0489
Ahmed@omb.eop.gov; and (ii) Pamela
representative survey or study of the Notice is hereby given that pursuant Dyson, Director/Chief Information
costs of Commission rules and forms. to the Paperwork Reduction Act of 1995 Officer, Securities and Exchange
Compliance with the collection of (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Commission, c/o Candace Kenner, 100 F
information requirements of the rule is Securities and Exchange Commission Street NE, Washington, DC 20549, or by
necessary to obtain the benefit of relying (‘‘Commission’’) has submitted to the sending an email to: PRA_Mailbox@
on the rule. An agency may not conduct Office of Management and Budget sec.gov. Comments must be submitted to
or sponsor, and a person is not required (‘‘OMB’’) a request for extension of the OMB within 30 days of this notice.
to respond to, a collection of previously approved collection of
information unless it displays a Dated: July 13, 2018.
information provided for in Rule 17a–6
currently valid control number. Eduardo A. Aleman,
(17 CFR 240.17a–6) under the Securities
Assistant Secretary.
Exchange Act of 1934 (15 U.S.C. 78a et
and rules adopted thereunder. Thus, to the extent [FR Doc. 2018–15378 Filed 7–18–18; 8:45 am]
these provisions could be considered collections of
seq.).
information, the hours required for compliance Rule 17a–6 permits national securities BILLING CODE 8011–01–P

would be included in the collection of information exchanges, national securities
burden hours submitted by the CFTC for its rules. associations, registered clearing
2 This estimate is based on the number of funds
agencies, and the Municipal Securities SECURITIES AND EXCHANGE
that reported on Form N–SAR from June 1, 2017–
Rulemaking Board (‘‘MSRB’’) COMMISSION
November 30, 2017, in response to sub-items E
through I of item 70, that they engaged in futures (collectively, ‘‘SROs’’) to destroy or Submission for OMB Review;
and commodity options transactions. convert to microfilm or other recording Comment Request
3 These estimates are based on the assumption
media records maintained under Rule
that 10% of fund complexes and funds enter into Upon Written Request, Copies Available
sradovich on DSK3GMQ082PROD with NOTICES

new FCM contracts each year. This assumption
17a–1, if they have filed a record
encompasses fund complexes and funds that enter destruction plan with the Commission From: Securities and Exchange
into FCM contracts for the first time, as well as fund and the Commission has declared such Commission, Office of FOIA Services,
complexes and fund that change the FCM with plan effective. 100 F Street NE, Washington, DC
whom they maintain margin accounts for There are currently 32 SROs: 21 20549–2736.
commodities transactions.
4 This estimate is based upon the following national securities exchanges, 1 national Extension:
calculation: (21 fund complexes × 1 hour) + (283 securities association, the MSRB, and 9 Rule 17a–5(c); SEC File No. 270–199, OMB
funds × 0.1 hours) = 49 hours. registered clearing agencies. Of the 32 Control No. 3235–0199.

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Document Created: 2018-07-19 01:35:38
Document Modified: 2018-07-19 01:35:38
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 34190