83 FR 58645 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 224 (November 20, 2018)

Page Range		58645-58646
FR Document		2018-25218
Federal Register, Volume 83 Issue 224 (Tuesday, November 20, 2018)
[Federal Register Volume 83, Number 224 (Tuesday, November 20, 2018)]
[Notices]
[Pages 58645-58646]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25218]


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SECURITIES AND EXCHANGE COMMISSION


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:
    Rules 15Fb1-1 through 15Fb6-2 and Forms SBSE, SBSE-A, SBSE-BD, 
SBSE-C and SBSE-W, SEC File No. 270-642, OMB Control No. 3235-0696.

    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'') is soliciting comments on the existing 
collection of information provided for in Rules 15Fb1-1 through 15Fb6-2 
and Forms SBSE, SBSE-A, SBSE-BD, SBSE-C and SBSE-W (17 CFR 240.15Fb1-1 
through 240.15Fb6-2, and 17 CFR 249.1600, 249.1600a, 249.1600b, 
249.1600c and 249.1601), under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.). The Commission plans to submit this existing 
collection of information to the Office of Management and Budget 
(``OMB'') for extension and approval.
    The Commission adopted Rules 15Fb1-1 through 15Fb6-2 and Forms 
SBSE, SBSE-A, SBSE-BD, SBSE-C and SBSE-W on August 5, 2015 to create a 
process to register SBS Entities. Forms SBSE, SBSE-A, and SBSE-BD and 
SBSE-C were designed to elicit certain information from applicants. The 
Commission uses the information disclosed by applicants through the SBS 
Entity registration rules and forms to: (1) Determine whether an 
applicant meets the standards for registration set forth in the 
provisions of the Exchange Act; and (2) develop an information resource 
regarding SBS Entities where members of the public may obtain relevant, 
up-to-date information about SBS Entities, and where the Commission may 
obtain information for examination and enforcement purposes. Without 
the information provided through these SBS Entity registration rules 
and forms, the Commission could not effectively determine whether the 
applicant meets the standards for registration or implement policy 
objectives of the Exchange Act.
    The information collected pursuant to Rule 15Fb3-2 and Form SBSE-W 
allows the Commission to determine whether it is appropriate to allow 
an SBS Entity to withdraw from registration and to facilitate that 
withdrawal. Without this information, the Commission would be unable to 
effectively determine whether it was appropriate to allow an SBS Entity 
to withdraw. In addition, it would be more difficult for the Commission 
to properly regulate SBS Entities if it were unable to quickly identify 
those that have withdrawn from the security-based swap business.
    In 2017 there were approximately 55 entities that may need to 
register as SBS Entities. The Commission estimates that these Entities 
likely would incur a total burden of 9,825 hours per year to comply 
with Rules 15Fb1-1 through 15Fb6-2 and Forms SBSE, SBSE-A, SBSE-BD, 
SBSE-C and SBSE-W.
    In addition, Rules 15Fb1-1 through 15Fb6-2 and Forms SBSE, SBSE-A, 
SBSE-BD, SBSE-C and SBSE-W may impose certain costs on non-resident 
persons that apply to be registered with the Commission as SBS 
Entities, including an initial and ongoing costs associated with 
obtaining an opinion of counsel indicating that it can, as a matter of 
law, provide the Commission with access to its books and records and 
submit to Commission examinations, and an ongoing cost associated with 
establishing and maintaining a relationship with a U.S. agent for 
service of process.
    The staff estimates, based on internet research,\1\ that it would 
cost each nonresident SBS Entity approximately $176 annually to appoint 
and maintain a relationship with a U.S. agent for service of process. 
Consequently, the total cost for all nonresident SBS Entities to 
appoint and maintain relationships with U.S. agents for service of 
process is approximately $3,872 per year.
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    \1\ See, e.g., http://www.incorp.com/registered-agent-resident-agent-services.aspx (as of September 21, 2018, $99 per state per 
year), https://ct.wolterskluwer.com/registered-agent-services?mm_campaign=Enter_Campaign_Code_Here&keyword=registered%20agent&utm_source=Google&utm_medium=CPC&utm_campaign=RegisteredAgent&jadid=69563123457&jap=1t3&jk=registered%20agent&jkId=gc:a8a8ae4cd4a6542cf014a97541e8d183e:t1_p:k_registered%20agent:pl_&jp=&js=1&jsid=35672&jt=1 (as of September 21, 2018, $279 per year), and https://www.ailcorp.com/services/registered-agent (as of September 21, 2018, 
$149 per year). The staff sought websites that provided pricing 
information and a comprehensive description of their registered 
agent services. We calculated our estimate by averaging the costs 
provided on these three websites--($99 + $279 + $149) / 3 = $176.
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    Non-resident SBS Entities also would incur outside legal costs 
associated with obtaining an opinion of counsel. The staff estimates 
that each of the estimated 22 non-resident persons that likely will 
apply to register as SBS Entities with the Commission would incur, on 
average, approximately $25,000 in outside legal costs to obtain the 
opinion of counsel necessary to register, and that the total annualized 
cost for all nonresident SBS Entities to obtain this opinion of counsel 
would be approximately $183,333. Nonresident SBS Entities would also 
need to obtain a revised opinion of counsel after any changes in the 
legal or regulatory framework that would impact the SBS Entity's 
ability to provide, or manner in which it provides, the Commission with 
prompt access to its books and records or that impacts the Commission's 
ability to inspect and examine the SBS Entity. We do not believe this 
would occur frequently, and therefore estimate that one non-resident 
entity may need to recertify annually. Thus, the total ongoing cost 
associated with obtaining a revised opinion of counsel regarding the 
new regulatory regime would be approximately $25,000 annually. 
Consequently, the total annualized cost burden associated with Rules 
15Fb1-1 through 15Fb6-2 and Forms SBSE, SBSE-A, SBSE-BD, SBSE-C and 
SBSE-W would be approximately $212,205 per year.
    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 
estimate of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be 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.

[[Page 58646]]

    Please direct your written comments to: Charles Riddle, Acting 
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].

     Dated: November 14, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25218 Filed 11-19-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 224 / Tuesday, November 20, 2018 / Notices 58645

Number SR–MIAX–2018–34, and enforcement purposes. Without the service of process. Consequently, the
should be submitted on or before information provided through these SBS total cost for all nonresident SBS
December 11, 2018. Entity registration rules and forms, the Entities to appoint and maintain
For the Commission, by the Division of Commission could not effectively relationships with U.S. agents for
Trading and Markets, pursuant to delegated determine whether the applicant meets service of process is approximately
authority.22 the standards for registration or $3,872 per year.
Eduardo A. Aleman, implement policy objectives of the Non-resident SBS Entities also would
Assistant Secretary. Exchange Act. incur outside legal costs associated with
[FR Doc. 2018–25249 Filed 11–19–18; 8:45 am]
The information collected pursuant to obtaining an opinion of counsel. The
Rule 15Fb3–2 and Form SBSE–W allows staff estimates that each of the estimated
BILLING CODE 8011–01–P
the Commission to determine whether it 22 non-resident persons that likely will
is appropriate to allow an SBS Entity to apply to register as SBS Entities with
SECURITIES AND EXCHANGE withdraw from registration and to the Commission would incur, on
COMMISSION facilitate that withdrawal. Without this average, approximately $25,000 in
information, the Commission would be outside legal costs to obtain the opinion
Proposed Collection; Comment unable to effectively determine whether of counsel necessary to register, and that
Request it was appropriate to allow an SBS the total annualized cost for all
Entity to withdraw. In addition, it nonresident SBS Entities to obtain this
Upon Written Request, Copies Available would be more difficult for the
From: Securities and Exchange opinion of counsel would be
Commission to properly regulate SBS approximately $183,333. Nonresident
Commission, Office of FOIA Entities if it were unable to quickly
Services, 100 F Street NE, SBS Entities would also need to obtain
identify those that have withdrawn from a revised opinion of counsel after any
Washington, DC 20549–2736. the security-based swap business.
Extension: changes in the legal or regulatory
In 2017 there were approximately 55 framework that would impact the SBS
Rules 15Fb1–1 through 15Fb6–2 and entities that may need to register as SBS
Forms SBSE, SBSE–A, SBSE–BD, Entity’s ability to provide, or manner in
Entities. The Commission estimates that
SBSE–C and SBSE–W, SEC File No. which it provides, the Commission with
these Entities likely would incur a total
270–642, OMB Control No. 3235– prompt access to its books and records
burden of 9,825 hours per year to
0696. or that impacts the Commission’s ability
comply with Rules 15Fb1–1 through
Notice is hereby given that pursuant to inspect and examine the SBS Entity.
15Fb6–2 and Forms SBSE, SBSE–A,
to the Paperwork Reduction Act of 1995 We do not believe this would occur
SBSE–BD, SBSE–C and SBSE–W.
(‘‘PRA’’) (44 U.S.C. 3501 et seq.) the In addition, Rules 15Fb1–1 through frequently, and therefore estimate that
Securities and Exchange Commission 15Fb6–2 and Forms SBSE, SBSE–A, one non-resident entity may need to
(‘‘Commission’’) is soliciting comments SBSE–BD, SBSE–C and SBSE–W may recertify annually. Thus, the total
on the existing collection of information impose certain costs on non-resident ongoing cost associated with obtaining a
provided for in Rules 15Fb1–1 through persons that apply to be registered with revised opinion of counsel regarding the
15Fb6–2 and Forms SBSE, SBSE–A, the Commission as SBS Entities, new regulatory regime would be
SBSE–BD, SBSE–C and SBSE–W (17 including an initial and ongoing costs approximately $25,000 annually.
CFR 240.15Fb1–1 through 240.15Fb6–2, associated with obtaining an opinion of Consequently, the total annualized cost
and 17 CFR 249.1600, 249.1600a, counsel indicating that it can, as a burden associated with Rules 15Fb1–1
249.1600b, 249.1600c and 249.1601), matter of law, provide the Commission through 15Fb6–2 and Forms SBSE,
under the Securities Exchange Act of with access to its books and records and SBSE–A, SBSE–BD, SBSE–C and SBSE–
1934 (15 U.S.C. 78a et seq.). The submit to Commission examinations, W would be approximately $212,205
Commission plans to submit this and an ongoing cost associated with per year.
existing collection of information to the establishing and maintaining a Written comments are invited on: (a)
Office of Management and Budget relationship with a U.S. agent for Whether the proposed collection of
(‘‘OMB’’) for extension and approval. service of process. information is necessary for the proper
The Commission adopted Rules The staff estimates, based on internet performance of the functions of the
15Fb1–1 through 15Fb6–2 and Forms research,1 that it would cost each Commission, including whether the
SBSE, SBSE–A, SBSE–BD, SBSE–C and nonresident SBS Entity approximately information shall have practical utility;
SBSE–W on August 5, 2015 to create a $176 annually to appoint and maintain (b) the accuracy of the Commission’s
process to register SBS Entities. Forms a relationship with a U.S. agent for estimate of the burden of the proposed
SBSE, SBSE–A, and SBSE–BD and collection of information; (c) ways to
SBSE–C were designed to elicit certain 1 See, e.g., http://www.incorp.com/registered- enhance the quality, utility, and clarity
information from applicants. The agent-resident-agent-services.aspx (as of September of the information to be collected; and
21, 2018, $99 per state per year), https://
Commission uses the information ct.wolterskluwer.com/registered-agent-services?
(d) ways to minimize the burden of the
disclosed by applicants through the SBS mm_campaign=Enter_Campaign_Code_ collection of information on
Entity registration rules and forms to: (1) Here&keyword=registered%20agent&utm_ respondents, including through the use
source=Google&utm_medium=CPC&utm_ of automated collection techniques or
Determine whether an applicant meets campaign=RegisteredAgent&jadid=69563123457&
the standards for registration set forth in jap=1t3&jk=registered%20 other forms of information technology.
the provisions of the Exchange Act; and agent&jkId=gc:a8a8ae4cd4a6542cf014 Consideration will be given to
(2) develop an information resource a97541e8d183e:t1_p:k_registered%20agent:pl_ comments and suggestions submitted in
&jp=&js=1&jsid=35672&jt=1 (as of September 21, writing within 60 days of this
regarding SBS Entities where members 2018, $279 per year), and https://www.ailcorp.com/
of the public may obtain relevant, up-to- services/registered-agent (as of September 21, 2018, publication.
date information about SBS Entities, $149 per year). The staff sought websites that An agency may not conduct or
and where the Commission may obtain provided pricing information and a comprehensive sponsor, and a person is not required to
description of their registered agent services. We
information for examination and calculated our estimate by averaging the costs
respond to, a collection of information
provided on these three websites—($99 + $279 + under the PRA unless it displays a
22 17 CFR 200.30–3(a)(12). $149) ÷ 3 = $176. currently valid OMB control number.

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58646 Federal Register / Vol. 83, No. 224 / Tuesday, November 20, 2018 / Notices

Please direct your written comments I. Self-Regulatory Organization’s total consolidated national volume in
to: Charles Riddle, Acting Director/Chief Statement of the Terms of Substance of SPY/QQQ/IWM options; (ii) amend the
Information Officer, Securities and the Proposed Rule Change ‘‘Definitions’’ section of the Fee
Exchange Commission, c/o Candace The Exchange is filing a proposal to Schedule to add the following
Kenner, 100 F Street NE, Washington, amend the MIAX PEARL Fee Schedule definition, ‘‘SPY/QQQ/IWM TCV’’ and
DC 20549, or send an email to: PRA_ (the ‘‘Fee Schedule’’). (iii) amend the explanatory paragraph
Mailbox@sec.gov. The text of the proposed rule change beneath the tables in Section (a) of the
is available on the Exchange’s website at Fee Schedule, as described below.
Dated: November 14, 2018.
http://www.miaxoptions.com/rule- The Exchange currently assesses
Eduardo A. Aleman, filings/pearl at MIAX PEARL’s principal transaction rebates and fees to all
Assistant Secretary. office, and at the Commission’s Public market participants which are based
[FR Doc. 2018–25218 Filed 11–19–18; 8:45 am] Reference Room. upon the total monthly volume
BILLING CODE 8011–01–P executed by the Member 4 on MIAX
II. Self-Regulatory Organization’s
Statement of the Purpose of, and PEARL in the relevant, respective origin
Statutory Basis for, the Proposed Rule type (not including Excluded
SECURITIES AND EXCHANGE Change Contracts) 5 expressed as a percentage of
COMMISSION TCV.6 In addition, the per contract
In its filing with the Commission, the
Exchange included statements transaction rebates and fees are applied
[Release No. 34–84592; File No. SR– retroactively to all eligible volume for
concerning the purpose of and basis for
PEARL–2018–23] that origin type once the respective
the proposed rule change and discussed
any comments it received on the threshold tier (‘‘Tier’’) has been reached
Self-Regulatory Organizations; MIAX by the Member. The Exchange
proposed rule change. The text of these
PEARL, LLC; Notice of Filing and aggregates the volume of Members and
statements may be examined at the
Immediate Effectiveness of a Proposed their Affiliates.7 Members that place
places specified in Item IV below. The
Rule Change To Amend the MIAX Exchange has prepared summaries, set resting liquidity, i.e., orders resting on
PEARL Fee Schedule forth in sections A, B, and C below, of the book of the MIAX PEARL System,8
November 14, 2018. the most significant aspects of such are paid the specified ‘‘maker’’ rebate
statements. (each a ‘‘Maker’’), and Members that
Pursuant to the provisions of Section execute against resting liquidity are
19(b)(1) of the Securities Exchange Act A. Self-Regulatory Organization’s
Statement of the Purpose of, and assessed the specified ‘‘taker’’ fee (each
of 1934 (‘‘Act’’),1 and Rule 19b–4 a ‘‘Taker’’). For opening transactions
thereunder,2 notice is hereby given that Statutory Basis for, the Proposed Rule
Change and ABBO uncrossing transactions, per
on October 31, 2018, MIAX PEARL, LLC contract transaction rebates and fees are
(‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed 1. Purpose waived for all market participants.
with the Securities and Exchange The Exchange proposes to amend the Finally, Members are generally assessed
Commission (‘‘Commission’’) a Add/Remove Tiered Rebates/Fees set lower transaction fees and generally
proposed rule change as described in forth in Section (a) of the Fee Schedule receive lower rebates for order
Items I, II, and III below, which Items that apply to MIAX PEARL Market executions in standard option classes in
have been prepared by the Exchange. Makers 3 to (i) add a new, alternative the Penny Pilot Program 9 (‘‘Penny
The Commission is publishing this Volume Criteria to Tier 2 based upon classes’’) than for order executions in
notice to solicit comments on the the total monthly volume executed by a standard option classes which are not in
proposed rule change from interested MIAX PEARL Market Maker in SPY, the Penny Pilot Program (‘‘Non-Penny
persons. QQQ, and IWM options (‘‘SPY/QQQ/ classes’’), where Members generally are
IWM options’’) volume on MIAX assessed higher transaction fees and
PEARL, expressed as a percentage of generally receive higher rebates.
1 15 U.S.C. 78s(b)(1). term Exchange System Disruption, which is defined volume for the threshold tiers in the Fee Schedule.
2 17 CFR 240.19b–4. in the Definitions section of the Fee Schedule, See the Definitions Section of the Fee Schedule.
3 ‘‘Market Maker’’ means a Member registered means an outage of a Matching Engine or collective 7 ‘‘Affiliate’’ means (i) an affiliate of a Member of

with the Exchange for the purpose of making Matching Engines for a period of two consecutive at least 75% common ownership between the firms
markets in options contracts traded on the hours or more, during trading hours. The term as reflected on each firm’s Form BD, Schedule A,
Exchange. See the Definitions Section of the Fee Matching Engine, which is also defined in the
or (ii) the Appointed Market Maker of an Appointed
Schedule and Exchange Rule 100. Definitions section of the Fee Schedule, is a part of
the MIAX PEARL electronic system that processes EEM (or, conversely, the Appointed EEM of an
4 ‘‘Member’’ means an individual or organization
options orders and trades on a symbol-by-symbol Appointed Market Maker). An ‘‘Appointed Market
that is registered with the Exchange pursuant to Maker’’ is a MIAX PEARL Market Maker (who does
basis. Some Matching Engines will process option
Chapter II of the Exchange Rules for purposes of not otherwise have a corporate affiliation based
classes with multiple root symbols, and other
trading on the Exchange as an ‘‘Electronic Exchange upon common ownership with an EEM) that has
Matching Engines may be dedicated to one single
Member’’ or ‘‘Market Maker.’’ Members are deemed been appointed by an EEM and an ‘‘Appointed
option root symbol (for example, options on SPY
‘‘members’’ under the Exchange Act. See the
may be processed by one single Matching Engine EEM’’ is an EEM (who does not otherwise have a
Definitions Section of the Fee Schedule and
that is dedicated only to SPY). A particular root corporate affiliation based upon common
Exchange Rule 100. symbol may only be assigned to a single designated
5 ‘‘Excluded Contracts’’ means any contracts
ownership with a MIAX PEARL Market Maker) that
Matching Engine. A particular root symbol may not has been appointed by a MIAX PEARL Market
routed to an away market for execution. See the be assigned to multiple Matching Engines. The Maker, pursuant to the process described in the Fee
Definitions Section of the Fee Schedule. Exchange believes that it is reasonable and
6 ‘‘TCV’’ means total consolidated volume
Schedule. See the Definitions Section of the Fee
appropriate to select two consecutive hours as the Schedule.
calculated as the total national volume in those amount of time necessary to constitute an Exchange 8 The term ‘‘System’’ means the automated
classes listed on MIAX PEARL for the month for System Disruption, as two hours equates to
which the fees apply, excluding consolidated approximately 1.4% of available trading time per trading system used by the Exchange for the trading
volume executed during the period time in which month. The Exchange notes that the term of securities. See Exchange Rule 100.
9 See Securities Exchange Act Release No. 79778
the Exchange experiences an ‘‘Exchange System ‘‘Exchange System Disruption’’ and its meaning
Disruption’’ (solely in the option classes of the have no applicability outside of the Fee Schedule, (January 12, 2017), 82 FR 6662 (January 19, 2017)
affected Matching Engine (as defined below)). The as it is used solely for purposes of calculating (SR–PEARL–2016–01).

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Document Created: 2018-11-20 07:59:35
Document Modified: 2018-11-20 07:59:35
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 58645