83_FR_50156 83 FR 49964 - Submission for OMB Review; Comment Request

83 FR 49964 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

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

Page Range49964-49964
FR Document2018-21511

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]


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

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.
---------------------------------------------------------------------------

    \1\ (2,000 notices x 15 minutes) = 30,000 minutes/60 minutes = 
500 hours.
---------------------------------------------------------------------------

    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.



                                          VerDate Sep<11>2014   18:05 Oct 02, 2018   Jkt 247001   PO 00000   Frm 00060   Fmt 4703   Sfmt 9990   E:\FR\FM\03OCN1.SGM   03OCN1



Document Created: 2018-10-03 02:30:15
Document Modified: 2018-10-03 02:30:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 49964 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR