83 FR 49964 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 192 (October 3, 2018)

Page Range		49964-49964
FR Document		2018-21511

Federal Register, Volume 83 Issue 192 (Wednesday, October 3, 2018)

[Federal Register Volume 83, Number 192 (Wednesday, October 3, 2018)]
[Notices]
[Page 49964]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21511]


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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:
    Regulation R, Rule 701, SEC File No. 270-562, OMB Control No. 
3235-0624

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in 
Regulation R, Rule 701 (17 CFR 247.701) under the Securities Exchange 
Act of 1934 (15 U.S.C. 78a et seq.).
    Regulation R, Rule 701 requires a broker or dealer (as part of a 
written agreement between the bank and the broker or dealer) to notify 
the bank if the broker or dealer makes certain determinations regarding 
the financial status of the customer, a bank employee's statutory 
disqualification status, and compliance with suitability or 
sophistication standards.
    The Commission estimates that brokers or dealers would, on average, 
notify 1,000 banks approximately two times annually about a 
determination regarding a customer's high net worth or institutional 
status or suitability or sophistication standing as well as a bank 
employee's statutory disqualification status. Based on these estimates, 
the Commission anticipates that Regulation R, Rule 701 would result in 
brokers or dealers making approximately 2,000 notifications to banks 
per year. The Commission further estimates (based on the level of 
difficulty and complexity of the applicable activities) that a broker 
or dealer would spend approximately 15 minutes per notice to a bank. 
Therefore, the estimated total annual third party disclosure burden for 
the requirements in Regulation R, Rule 701 is 500 \1\ hours for brokers 
or dealers.
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    \1\ (2,000 notices x 15 minutes) = 30,000 minutes/60 minutes = 
500 hours.
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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 currently valid OMB control number.
    The public may view 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: 
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Candace 
Kenner, 100 F Street NE, Washington, DC 20549, or by sending an email 
to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: September 27, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21511 Filed 10-2-18; 8:45 am]
 BILLING CODE 8011-01-P

49964 Federal Register / Vol. 83, No. 192 / Wednesday, October 3, 2018 / Notices

approved by the Commission.32 In that the Exchange represents that it has under the Securities Exchange Act of
considering the proposed changes to the an adequate surveillance program in 1934 (15 U.S.C. 78a et seq.).
Exchange rules related to the listing and place for index options.43 Further, the Regulation R, Rule 701 requires a
trading of XSP and RUT, including the Exchange is a member of the ISG, which broker or dealer (as part of a written
rules related to minimum increments 33 provides for the sharing of information agreement between the bank and the
and strike price intervals,34 the and the coordination of regulatory broker or dealer) to notify the bank if the
Commission notes that the proposed efforts among exchanges trading broker or dealer makes certain
rules are consistent with the rules of securities and related products to determinations regarding the financial
another exchange.35 In addition, the address potential intermarket status of the customer, a bank
Commission notes that the proposed manipulations and trading abuses. employee’s statutory disqualification
rule changes related to long-term In approving the proposed rule status, and compliance with suitability
options series,36 trading halts,37 the change, the Commission has also relied or sophistication standards.
obvious error process,38 the opening upon the Exchange’s representation that The Commission estimates that
process 39 and listing additional it and OPRA have the necessary systems brokers or dealers would, on average,
expiration months 40 are also consistent capacity to support the new options notify 1,000 banks approximately two
with the rules of other exchanges.41 The series that will result from this proposal, times annually about a determination
Commission believes that the and that the Exchange will monitor the regarding a customer’s high net worth or
Exchange’s proposal does not raise any trading volume associated with the institutional status or suitability or
novel regulatory issues, as it is additional options series listed as a sophistication standing as well as a
consistent with the rules of other result of this proposed rule change and bank employee’s statutory
national securities exchanges previously the effect (if any) of these additional disqualification status. Based on these
approved by the Commission. Finally, series on market fragmentation and on estimates, the Commission anticipates
the Commission notes that certain of the the capacity of the Exchange’s that Regulation R, Rule 701 would result
Exchange’s proposed rule changes are automated systems.44 in brokers or dealers making
intended to promote clarity about the
IV. Conclusion approximately 2,000 notifications to
applicability of the Exchange’s rules,42
thereby reducing any potential investor It is therefore ordered, pursuant to banks per year. The Commission further
confusion. Section 19(b)(2) of the Act,45 that the estimates (based on the level of
The Commission further believes that proposed rule change (SR-CboeBZX– difficulty and complexity of the
the Exchange’s proposed position and 2018–058), as modified by Amendment applicable activities) that a broker or
exercise limits, margin requirements Nos. 1 and 2, be approved. dealer would spend approximately 15
and other aspects of the proposed rule minutes per notice to a bank. Therefore,
For the Commission, by the Division of the estimated total annual third party
change related to the listing and trading Trading and Markets, pursuant to delegated
of XSP and RUT options are appropriate authority.46
disclosure burden for the requirements
and consistent with the Act. In in Regulation R, Rule 701 is 500 1 hours
Eduardo A. Aleman,
particular, the Commission notes that for brokers or dealers.
Assistant Secretary.
the Exchange rules regarding position An agency may not conduct or
[FR Doc. 2018–21485 Filed 10–2–18; 8:45 am]
and exercise limits and margin sponsor, and a person is not required to
BILLING CODE 8011–01–P
requirements incorporate by reference respond to, a collection of information
the corresponding Cboe Options rules under the PRA unless it displays a
which were previously approved by the SECURITIES AND EXCHANGE currently valid OMB control number.
Commission. The Commission notes COMMISSION The public may view background
documentation for this information
32 See Securities Exchange Act Release No. 61419
Submission for OMB Review; collection at the following website:
(January 26, 2010), 75 FR 5157 (February 1, 2010). www.reginfo.gov. Comments should be
Additionally, the Commission notes that options on
Comment Request
XSP and RUT will be subject to the maintenance directed to: (i) Desk Officer for the
listing standards of Rule 29.3(c). The Exchange
Upon Written Request Copies Available Securities and Exchange Commission,
represents that in the event XSP or RUT options From: Securities and Exchange Office of Information and Regulatory
fails to satisfy the maintenance listing standards set Commission, Office of FOIA Services, Affairs, Office of Management and
forth herein, the Exchange will not open for trading 100 F Street NE, Washington, DC
any additional series of options of that class unless Budget, Room 10102, New Executive
the continued listing of that class of index options
20549–2736 Office Building, Washington, DC 20503,
has been approved by the Commission under Extension: or by sending an email to: Shagufta_
Section 19(b)(2) of the Exchange Act. See Notice, Regulation R, Rule 701, SEC File No. 270–
supra note 3, at 42331, n. 4. Ahmed@omb.eop.gov; and (ii) Pamela
562, OMB Control No. 3235–0624 Dyson, Director/Chief Information
33 See proposed Rule 21.5, Interpretation and

Policy .02. Notice is hereby given that pursuant Officer, Securities and Exchange
34 See proposed Rule 29.11(c)(1) and (c)(5). to the Paperwork Reduction Act of 1995 Commission, c/o Candace Kenner, 100 F
35 See Cboe Options Rule 6.42, Interpretation and
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Street NE, Washington, DC 20549, or by
Policy .03; Cboe Options Rule 24.9. Interpretations
and Policies .01(a), .11.
Securities and Exchange Commission sending an email to: PRA_Mailbox@
36 See proposed changes to Rule 29.11(b). (‘‘Commission’’) has submitted to the sec.gov. Comments must be submitted to
37 See proposed changes to Rule 29.10(b). Office of Management and Budget OMB within 30 days of this notice.
38 See proposed changes to Rule 20.6(g) and (h). (‘‘OMB’’) a request for approval of Dated: September 27, 2018.
extension of the previously approved
daltland on DSKBBV9HB2PROD with NOTICES

39 See proposed changes to Rule 21.7.
Eduardo A. Aleman,
40 See proposed Rule 29.11(i).
collection of information provided for in
41 See, e.g., Cboe Options Rule 24.9(b)(1); Cboe Assistant Secretary.
Regulation R, Rule 701 (17 CFR 247.701)
Options Rule 24.9, Interpretation and Policy .13; [FR Doc. 2018–21511 Filed 10–2–18; 8:45 am]
Cboe Options Rule 24,7(a); Phlx Rule 1047A(c);
43 See Notice, supra note 3, at 42336. BILLING CODE 8011–01–P
Cboe Options Rule 6.25(g) and (h); C2 Rule
44 See id.
6.11(a)(2).
42 See, e.g., proposed changes to Rule 45 15 U.S.C. 78s(b)(2). 1 (2,000 notices × 15 minutes) = 30,000 minutes/

29.11(b)(1)(A); Rule 29.13; Rule 29.15. 46 17 CFR 200.30–3(a)(12). 60 minutes = 500 hours.

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Document Created: 2018-10-03 02:30:15
Document Modified: 2018-10-03 02:30:15

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 49964