83 FR 50722 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 195 (October 9, 2018)

Page Range		50722-50723
FR Document		2018-21831

Federal Register, Volume 83 Issue 195 (Tuesday, October 9, 2018)

[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)]
[Notices]
[Pages 50722-50723]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21831]


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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:
    Electronic Data Collection System; SEC File No. 270-621, OMB 
Control No. 3235-0672

    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'') is soliciting comments on the collection of 
information summarized below. The Commission plans to submit an 
extension for this current collection of information to the Office of 
Management and Budget for approval.
    The Commission invites comment on updates to its Electronic Data 
Collection System database (the Database), which will support 
information provided by members of the public who would like to file an 
online tip, complaint or referral (TCR) to the Commission. The Database 
will be a web based e-filed dynamic report based on technology that 
pre-populates and establishes a series of questions based on the data 
that the individual enters. The individual will then complete specific 
information on the subject(s) and nature of the suspicious activity, 
using the data elements appropriate to the type of complaint or 
subject. The information collection is voluntary. The public interface 
to the Database will be available using the agency's website, 
www.sec.gov. The Commission estimates that it takes a complainant, on 
average, 30 minutes to submit a TCR through the Database. Based on the 
receipt of an average of approximately 16,000 annual TCRs for the past 
three fiscal years, the Commission estimates that the annual reporting 
burden is 8,000 hours.
    Written comments are invited on: (a) Whether this collection of 
information is necessary for the proper performance

[[Page 50723]]

of the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden imposed by the 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.
    Background documentation for this information collection may be 
viewed 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) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o 
Candace Kenner, 100 F St. NE, Washington, DC 20549 or send an email to: 
[email protected]. Comments must be submitted to OMB within 30 days 
of this notice.

    Dated: October 3, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21831 Filed 10-5-18; 8:45 am]
 BILLING CODE 8011-01-P

50722 Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Notices

open SPX positions across numerous system, and, in general, to protect For the Commission, by the Division of
series. RWA Packages may be executed investors and the public interest and Trading and Markets, pursuant to delegated
in the SPX crowd on the trading floor that the rules are not designed to permit authority.19
if they meet certain conditions specified unfair discrimination between Eduardo A. Aleman,
in Rule 6.57, including that they be customers, issuers, brokers, or dealers. Assistant Secretary.
initiated for the account(s) of a Cboe The proposed rule change is designed [FR Doc. 2018–21784 Filed 10–5–18; 8:45 am]
Options market maker, result in a to remove impediments to and perfect BILLING CODE 8011–01–P
change in beneficial ownership, and the mechanism of a free and open
include a certification concerning the
market and a national market system by SECURITIES AND EXCHANGE
attributable net reduction of RWA.6
Further, Rule 6.57(c) sets forth a providing a mechanism to facilitate the COMMISSION
trading procedure that requires the reduction of SPX options positions and
entering firm to submit a list of the concomitant RWA.15 Specifically, the Submission for OMB Review;
individual SPX options series, their Exchange represented that such a Comment Request
size, and any net debit or credit bid mechanism would help market makers
to continue to provide critical liquidity Upon Written Request, Copies Available
price received, as well as contact From: Securities and Exchange
information for the order.7 Cboe will in the options market by reducing RWA
to comply with ‘‘bank capital Commission, Office of FOIA Services,
thereafter post a list of the individual 100 F Street NE, Washington, DC
components of the RWA Package, the regulations that . . . are negatively
impacting the ability of [market makers] 20549–2736
proposed net price for the RWA Package
(if available), the contact information, clearing through bank-affiliated clearing Extension:
firms to provide liquidity.’’ 16 In Electronic Data Collection System; SEC
and the time at which the two-hour
reducing RWA, bank-affiliated clearing File No. 270–621, OMB Control No.
request-for-quote period (‘‘RFQ Period’’) 3235–0672
concludes.8 firms will be able to clear more market
Rule 6.57(c) further specifies that the maker activity during periods of Notice is hereby given that, pursuant
response that represents the best bid or increased volume and volatility.17 In to the Paperwork Reduction Act of 1995
offer on a net debit or credit basis for the turn, market makers may be better able (44 U.S.C. 3501 et seq.), the Securities
RWA Package has priority.9 In the event to continue quoting during those and Exchange Commission
that equal bids or offers are received, the periods, lessening the risk of market (‘‘Commission’’) is soliciting comments
first RFQ response at the best bid or dislocations or excess volatility that on the collection of information
offer on a net debit or credit basis for the could occur if market makers needed to summarized below. The Commission
RWA Package has priority.10 If reduce their quoting activity during plans to submit an extension for this
executed, the representing party must such periods to the detriment of current collection of information to the
report the details of the execution to the investors. Office of Management and Budget for
Exchange.11 Further, with respect to trading, the approval.
The Commission invites comment on
III. Discussion and Commission Exchange’s rule is based on Rule 6.49A,
updates to its Electronic Data Collection
Findings which establishes a similar process for
System database (the Database), which
on-floor transfers, but improves upon
After careful review, the Commission will support information provided by
that rule by adding certifications to
finds that the proposed rule change is members of the public who would like
assure compliance and increases
consistent with the requirements of the to file an online tip, complaint or
transparency by electronically
Act,12 and the rules and regulations referral (TCR) to the Commission. The
disseminating the list of series in a
thereunder applicable to a national Database will be a web based e-filed
proposed RWA Package. All Cboe
securities exchange.13 In particular, the dynamic report based on technology
members will be given notice of and the
Commission finds that the proposed that pre-populates and establishes a
ability to participate in the RWA
rule change is consistent with Section series of questions based on the data
Package trading process.
6(b)(5) of the Act,14 which requires, that the individual enters. The
among other things, that the rules of a Finally, the Commission notes the individual will then complete specific
national securities exchange be narrow scope of proposed Rule 6.57. information on the subject(s) and nature
designed to remove impediments to and The proposed rule change would apply of the suspicious activity, using the data
perfect the mechanism of a free and only to SPX options, which are elements appropriate to the type of
open market and a national market particularly impacted by current bank- complaint or subject. The information
capital regulations, and any transaction collection is voluntary. The public
6 See id. at 42726–27. must result in a net reduction of RWA. interface to the Database will be
7 See id. at 42727. Furthermore, the proposed rule change available using the agency’s website,
8 See id. The Exchange believed that this two-
is only effective for a limited term, www.sec.gov. The Commission
hour period was sufficient to allow members to
review, price, and bid/offer for the RWA Package,
ending two years from the approval estimates that it takes a complainant, on
because the RWA Package will be available in an date. average, 30 minutes to submit a TCR
electronic format and the Exchange believed that through the Database. Based on the
firms had access to electronic systems that will aid IV. Conclusion
them in evaluating and pricing the SPX positions receipt of an average of approximately
contained in an RWA Package. See id. It is therefore ordered, pursuant to 16,000 annual TCRs for the past three
9 See id.
Section 19(b)(2) of the Act,18 that the fiscal years, the Commission estimates
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10 See id. at 42727.
proposed rule change (SR–CBOE–2018– that the annual reporting burden is
11 See id.
056) be, and hereby is, approved. 8,000 hours.
12 15 U.S.C. 78f.
Written comments are invited on: (a)
13 In approving this proposed rule change, the

Commission has considered the proposed rule’s
15 See Notice, supra note 3, at 42726, 42730. Whether this collection of information
impact on efficiency, competition, and capital 16 Id.at 42726. is necessary for the proper performance
formation. See 15 U.S.C. 78c(f). 17 See id.
14 15 U.S.C. 78f(b)(5). 18 15 U.S.C. 78s(b)(2). 19 17 CFR 200.30–3(a)(12).

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Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Notices 50723

of the functions of the agency, including publishing this notice to solicit 8000 and 9000 Series rules in all
whether the information will have comments on the proposed rule change respects.4
practical utility; (b) the accuracy of the from interested persons.
Definition of Exchange Regulation
agency’s estimate of the burden imposed
I. Self-Regulatory Organization’s The Exchange proposes to revise the
by the collection of information; (c)
Statement of the Terms of Substance of definition of [sic] BX Current Rule
ways to enhance the quality, utility, and
the Proposed Rule Change 9120(w) (‘‘Exchange’s Regulation
clarity of the information collected; and
(d) ways to minimize the burden of the The Exchange proposes to a proposal Department’’) to expressly include the
collection of information on [sic] to align its existing investigatory Exchange’s Enforcement Department.
respondents, including through the use and disciplinary processes and related The Exchange’s Enforcement
of automated collection techniques or rules with the investigatory and Department is specifically charged with
other forms of information technology. disciplinary processes and related rules pursuing disciplinary action against
Background documentation for this of Nasdaq PHLX LLC (‘‘Phlx’’). members, persons associated with a
information collection may be viewed at member, and persons subject to the
The text of the proposed rule change
the following website: www.reginfo.gov. Exchange’s jurisdiction, in addition to
is available on the Exchange’s website at
Comments should be directed to: (i) FINRA’s departments of Enforcement
http://nasdaqbx.cchwallstreet.com/, at
Desk Officer for the Securities and and Market Regulation.
the principal office of the Exchange, and Similarly, the Exchange proposes to
Exchange Commission, Office of at the Commission’s Public Reference
Information and Regulatory Affairs, add references to the ‘‘Exchange’s
Room. Regulation Department’’ in BX Current
Office of Management and Budget,
Room 10102, New Executive Office II. Self-Regulatory Organization’s Rule 9120(aa) (definition of the term
Building, Washington, DC 20503, or by Statement of the Purpose of, and ‘‘Party’’). The Exchange also proposes to
sending an email to: Shagufta_Ahmed@ Statutory Basis for, the Proposed Rule add a definition for the term ‘‘Party’’ as
Change used in the BX Rule 9400 series,5 and
omb.eop.gov; and (ii) Charles Riddle,
to add references to ‘‘FINRA’’ in BX
Acting Director/Chief Information In its filing with the Commission, the Current Rule 9120(aa)(4) to clarify that
Officer, Securities and Exchange Exchange included statements FINRA falls under the definition of
Commission, c/o Candace Kenner, 100 F concerning the purpose of and basis for ‘‘Party’’ as used in the BX Rule 9550
St. NE, Washington, DC 20549 or send the proposed rule change and discussed series. In addition, the Exchange is
an email to: PRA_Mailbox@sec.gov. any comments it received on the adding references to the Exchange’s
Comments must be submitted to OMB proposed rule change. The text of these Regulation Department throughout the
within 30 days of this notice. statements may be examined at the BX Rule 8000 and 9000 series.6 These
Dated: October 3, 2018. places specified in Item IV below. The amendments will conform the text of BX
Eduardo A. Aleman, Exchange has prepared summaries, set 8000 and 9000 rules to those of Phlx.7
Assistant Secretary. forth in sections A, B, and C below, of
[FR Doc. 2018–21831 Filed 10–5–18; 8:45 am]
the most significant aspects of such 4 The Exchange notes that the Financial Industry

statements. Regulatory Authority (‘‘FINRA’’) amended its rules
BILLING CODE 8011–01–P recently to reflect an internal reorganization of
A. Self-Regulatory Organization’s FINRA’s Enforcement Operations. See Securities
Statement of the Purpose of, and Exchange Act Release No. 83781 (August 6, 2018),
SECURITIES AND EXCHANGE 83 FR 39802 (August 10, 2018). In July 2017, FINRA
Statutory Basis for, the Proposed Rule announced its plan to consolidate its existing
COMMISSION Change enforcement functions into a unified Department of
[Release No. 34–84354; File No. SR–BX– Enforcement. FINRA’s recent rule change makes
1. Purpose technical and other non-substantive changes to
2018–042]
FINRA Rules 9000 Series Code of Procedure (the
BX proposes to amend certain of its ‘‘Code’’) to reflect the single Department of
Self-Regulatory Organizations; Nasdaq rules to align its existing investigatory Enforcement. The rule change removed references
BX, Inc.; Notice of Filing and and disciplinary processes and related to the Market Regulation department, its head and
Immediate Effectiveness of Proposed rules with the investigatory and employees from the Code where those references
reflect the previously separate Market Regulation
Rule Change To Align Existing disciplinary processes and related rules enforcement function. In light of FINRA’s
Investigatory and Disciplinary of Phlx. BX notes that Phlx amended its reorganization, the Exchange is likewise removing
Processes and Related Rules With the rules recently to adopt an investigatory references to the Market Regulation department, its
Investigatory and Disciplinary and disciplinary process identical in all head and employees from the Code, and re-lettering
the remainder of those sections where such re-
Processes and Related Rules of material respects to the investigatory lettering is necessary (i.e. Rule 9120). Phlx will also
Nasdaq PHLX LLC and disciplinary processes of Nasdaq, submit a similar rule filing to remove those
Inc. and BX.3 The amendment also references in due course.
October 3, 2018. 5 The Exchange notes that, like Phlx, it is likewise
vested the Phlx Regulation Department
Pursuant to Section 19(b)(1) of the with the same authority proposed
including the Department of Enforcement as a
Securities Exchange Act of 1934 potential party to a matter under the Rule 9400
herein. The Exchange therefore Series. The Exchange believes that including these
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 proposes the below changes to the 8000 departments in Rule 9400 Series is appropriate
notice is hereby given that on and 9000 Series of the BX Rules in order because they may be involved in the initiation of
September 21, 2018, Nasdaq BX, Inc. such a matter for BX currently. The Exchange is
to conform its rules to those of Phlx also adding FINRA to other parts of Rule 9400
(‘‘BX’’ or ‘‘Exchange’’) filed with the where it is appropriate to show that FINRA may be
Securities and Exchange Commission
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3 See Securities Exchange Act Release No. 82143 the entity that initiated an action under the rule.
(‘‘Commission’’) the proposed rule (November 22, 2017), 82 FR 56672 (November 29, 6 See BX Current Rules 9120, 9212, 9213, 9215,

change as described in Items I and II 2017) (Notice of Filing and Immediate Effectiveness 9216, 9251, 9253, 9264, 9269, 9270, 9311, 9400,
below, which Items have been prepared of Proposed Rule Change To Adopt Investigatory 9810, 9820, 9830, and 9840.
and Disciplinary Processes Substantially Similar to 7 The Exchange is also amending Current BX Rule
by the Exchange. The Commission is Nasdaq BX, Inc. and The Nasdaq Stock Market LLC 9120(aa)(2), to align that rule text with FINRA’s
for Phlx, which, among other things, similarly recent rule change. The term ‘‘Party’’ when used in
1 15 U.S.C. 78s(b)(1). enabled Phlx to retain discretion to perform these the Rule 9520 Series, now means FINRA’s
2 17 CFR 240.19b–4. functions). Continued

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Document Created: 2018-10-06 00:58:31
Document Modified: 2018-10-06 00:58:31

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 50722