83 FR 64381 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 240 (December 14, 2018)

Page Range		64381-64382
FR Document		2018-27089
Federal Register, Volume 83 Issue 240 (Friday, December 14, 2018)
[Federal Register Volume 83, Number 240 (Friday, December 14, 2018)]
[Notices]
[Pages 64381-64382]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-27089]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-641, OMB Control No. 3235-0685]


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: U.S. Securities and 
Exchange Commission, Office of FOIA Services, 100 F Street NE, 
Washington, DC 20549-2736.

Extension:
    Rules 3a68-2 and 3a68-4(c)

    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 (``SEC'') has submitted to the Office of Management and 
Budget (``OMB'') a request for approval of extension of the previously

[[Page 64382]]

approved collection of information provided for the following rules: 
Rules 3a68-2 and 3a68-4(c) under the Securities Exchange Act of 1934 
(15 U.S.C. 78a et seq.).
    Rule 3a68-2 creates a process for interested persons to request a 
joint interpretation by the SEC and the Commodity Futures Trading 
Commission (``CFTC'') (together with the SEC, the ``Commissions'') 
regarding whether a particular instrument (or class of instruments) is 
a swap, a security-based swap, or both (i.e., a mixed swap). Under Rule 
3a68-2, a person provides to the Commissions a copy of all material 
information regarding the terms of, and a statement of the economic 
characteristics and purpose of, each relevant agreement, contract, or 
transaction (or class thereof), along with that person's determination 
as to whether each such agreement, contract, or transaction (or class 
thereof) should be characterized as a swap, security-based swap, or 
both (i.e., a mixed swap). The Commissions also may request the 
submitting person to provide additional information.
    The SEC expects 25 requests pursuant to Rule 3a68-2 per year. The 
SEC estimates the total paperwork burden associated with preparing and 
submitting each request would be 20 hours to retrieve, review, and 
submit the information associated with the submission. This 20 hour 
burden is divided between the SEC and the CFTC, with 10 hours per 
response regarding reporting to the SEC and 10 hours of response 
regarding third party disclosure to the CFTC.\1\ The SEC estimates this 
would result in an aggregate annual burden of 500 hours (25 requests x 
20 hours/request).
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    \1\ The burdens imposed by the CFTC are included in this 
collection of information.
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    The SEC estimates that the total costs resulting from a submission 
under Rule 3a68-2 would be approximately $12,000 for outside attorneys 
to retrieve, review, and submit the information associated with the 
submission. The SEC estimates this would result in aggregate costs each 
year of $300,000 (25 requests x 30 hours/request x $400).
    Rule 3a68-4(c) establishes a process for persons to request that 
the Commissions issue a joint order permitting such persons (and any 
other person or persons that subsequently lists, trades, or clears that 
class of mixed swap) to comply, as to parallel provisions only, with 
specified parallel provisions of either the Commodity Exchange Act 
(``CEA'') or the Securities Exchange Act of 1934 (``Exchange Act''), 
and related rules and regulations (collectively ``specified parallel 
provisions''), instead of being required to comply with parallel 
provisions of both the CEA and the Exchange Act.
    The SEC expects ten requests pursuant to Rule 3a68-4(c) per year. 
The SEC estimates that nine of these requests will have also been made 
in a request for a joint interpretation pursuant to Rule 3a68-2, and 
one will not have been. The SEC estimates the total burden for the one 
request for which the joint interpretation pursuant to 3a68-2 was not 
requested would be 30 hours, and the total burden associated with the 
other nine requests would be 20 hours per request because some of the 
information required to be submitted pursuant to Rule 3a68-4(c) would 
have already been submitted pursuant to Rule 3a68-2. The burden in both 
cases is evenly divided between the SEC and the CFTC.
    The SEC estimates that the total costs resulting from a submission 
under Rule 3a68-4(c) would be approximately $20,000 for the services of 
outside attorneys to retrieve, review, and submit the information 
associated with the submission of the one request for which a request 
for a joint interpretation pursuant to Rule 3a68-2 was not previously 
made (1 request x 50 hours/request x $400). For the nine requests for 
which a request for a joint interpretation pursuant to Rule 3a68-2 was 
previously made, the SEC estimates the total costs associated with 
preparing and submitting a party's request pursuant to Rule 3a68-4(c) 
would be $6,000 less per request because, as discussed above, some of 
the information required to be submitted pursuant to Rule 3a68-4(c) 
already would have been submitted pursuant to Rule 3a68-2. The SEC 
estimates this would result in an aggregate cost each year of $126,000 
for the services of outside attorneys (9 requests x 35 hours/request x 
$400).
    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: 
[email protected]; and (ii) Charles Riddle, Acting 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: [email protected]. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: December 10, 2018.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018-27089 Filed 12-13-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 64381

recordkeeping provisions of the This rule does not involve the Section 19(b)(2) of the Act 4 provides
Commission’s transfer agent rules. collection of confidential information. that within 45 days of the publication of
Pursuant to Rule 17Ad–4(b), if the An agency may not conduct or notice of the filing of a proposed rule
Commission or the Office of the sponsor, and a person is not required to change, or within such longer period up
Comptroller of the Currency (‘‘OCC’’) is respond to, a collection of information to 90 days as the Commission may
the appropriate regulatory agency under the PRA unless it displays a designate if it finds such longer period
(‘‘ARA’’) for an exempt transfer agent, currently valid OMB control number. to be appropriate and publishes its
that transfer agent is required to prepare The public may view background reasons for so finding, or as to which the
and maintain in its possession a notice documentation for this information self-regulatory organization consents,
certifying that it is exempt from certain collection at the following website: the Commission shall either approve the
performance standards and www.reginfo.gov. Comments should be proposed rule change, disapprove the
recordkeeping and record retention directed to: (i) Desk Officer for the proposed rule change, or institute
provisions of the Commission’s transfer Securities and Exchange Commission, proceedings to determine whether the
agent rules. This notice need not be Office of Information and Regulatory proposed rule change should be
filed with the Commission or OCC. If Affairs, Office of Management and disapproved. The 45th day after
the Board of Governors of the Federal Budget, Room 10102, New Executive publication of the notice for this
Reserve System (‘‘Fed’’) or the Federal Office Building, Washington, DC 20503, proposed rule change is December 29,
Deposit Insurance Corporation (‘‘FDIC’’) or by sending an email to: 2018. The Commission is extending this
is the transfer agent’s ARA, that transfer Lindsay.M.Abate@omb.eop.gov; and (ii) 45-day time period.
agent must prepare a notice and file it Charles Riddle, Acting Director/Chief The Commission finds it appropriate
with the Fed or FDIC. Information Officer, Securities and to designate a longer period within
Rule 17Ad–4(c) sets forth the which to take action on the proposed
Exchange Commission, c/o Candace
conditions under which a registered rule change so that it has sufficient time
Kenner, 100 F Street NE, Washington,
transfer agent loses its exempt status. to consider this proposed rule change.
DC 20549, or by sending an email to:
Once the conditions for exemption no Accordingly, the Commission, pursuant
PRA_Mailbox@sec.gov. Comments must
longer exist, the transfer agent, to keep to Section 19(b)(2) of the Act,5
be submitted to OMB within 30 days of
the ARA apprised of its current status, designates February 12, 2019, as the
must prepare, and file if the ARA for the this notice.
date by which the Commission shall
transfer agent is the Fed or the FDIC, a Dated: December 10, 2018. either approve or disapprove, or
notice of loss of exempt status under Eduardo A. Aleman, institute proceedings to determine
paragraph (c). The transfer agent then Deputy Secretary. whether to disapprove, the proposed
cannot claim exempt status under Rule [FR Doc. 2018–27090 Filed 12–13–18; 8:45 am] rule change (File No. SR–NYSEArca–
17Ad–4(b) again until it remains subject BILLING CODE 8011–01–P 2018–77).
to the minimum performance standards
for non-exempt transfer agents for six For the Commission, by the Division of
Trading and Markets, pursuant to delegated
consecutive months. SECURITIES AND EXCHANGE authority.6
ARAs use the information contained COMMISSION
in the notices required by Rules 17Ad– Eduardo A. Aleman,
4(b) and 17Ad–4(c) to determine Deputy Secretary.
[Release No. 34–84772; File No. SR–
whether a registered transfer agent NYSEArca–2018–77]
[FR Doc. 2018–27082 Filed 12–13–18; 8:45 am]
qualifies for the exemption, to BILLING CODE 8011–01–P
determine when a registered transfer Self-Regulatory Organizations; NYSE
agent no longer qualifies for the Arca, Inc.; Notice of Designation of a
exemption, and to determine the extent Longer Period for Commission Action SECURITIES AND EXCHANGE
to which that transfer agent is subject to on Proposed Rule Change To Amend COMMISSION
regulation. Rule 7.44–E, the Exchange’s Retail [SEC File No. 270–641, OMB Control No.
The Commission estimates that Liquidity Program 3235–0685]
approximately 10 registered transfer
agents each year prepare or file notices December 10, 2018. Submission for OMB Review;
in compliance with Rules 17Ad–4(b) On October 26, 2018, NYSE Arca, Inc. Comment Request
and 17Ad–4(c). The Commission (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed
estimates that each such registered Upon Written Request, Copies Available
with the Securities and Exchange From: U.S. Securities and Exchange
transfer agent spends approximately 1.5 Commission (‘‘Commission’’), pursuant
hours to prepare or file such notices for Commission, Office of FOIA Services,
to Section 19(b)(1) of the Securities 100 F Street NE, Washington, DC
an aggregate total annual burden of 15 Exchange Act of 1934 (‘‘Act’’) 1 and Rule
hours (1.5 hours times 10 transfer 20549–2736.
19b–4 thereunder,2 a proposed rule
agents). The Commission staff estimates change to amend Exchange Rule 7.44– Extension:
that compliance staff work at registered E, which sets forth the Exchange’s Retail Rules 3a68–2 and 3a68–4(c)
transfer agents results in an internal cost Liquidity Program. The proposed rule Notice is hereby given that pursuant
of compliance, at an estimated hourly change was published for comment in to the Paperwork Reduction Act of 1995
wage of $283, of $424.5 per year per the Federal Register on November 14, (44 U.S.C. 3501 et seq.), the Securities
transfer agent (1.5 hours × $283 per hour 2018.3 The Commission has received no and Exchange Commission (‘‘SEC’’) has
amozie on DSK3GDR082PROD with NOTICES1

= $424.5 per year). Therefore, the comment letters on the proposed rule submitted to the Office of Management
aggregate annual internal cost of change. and Budget (‘‘OMB’’) a request for
compliance for the approximate 10 approval of extension of the previously
transfer agents annually preparing or 1 15 U.S.C. 78s(b)(1).
filing notices pursuant to Rules 17Ad– 2 17 CFR 240.19b–4. 4 15 U.S.C. 78s(b)(2).
4(b) and 17Ad–4(c) is approximately 3 See Securities Exchange Act Release No. 84547 5 Id.

$4,245 ($424.5 × 10 = $4,245). (Nov. 7, 2018), 83 FR 56890. 6 17 CFR 200.30–3(a)(31).

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64382 Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices

approved collection of information (collectively ‘‘specified parallel Exchange Commission, c/o Candace
provided for the following rules: Rules provisions’’), instead of being required Kenner, 100 F Street NE, Washington,
3a68–2 and 3a68–4(c) under the to comply with parallel provisions of DC 20549, or by sending an email to:
Securities Exchange Act of 1934 (15 both the CEA and the Exchange Act. PRA_Mailbox@sec.gov. Comments must
U.S.C. 78a et seq.). The SEC expects ten requests be submitted to OMB within 30 days of
Rule 3a68–2 creates a process for pursuant to Rule 3a68–4(c) per year. this notice.
interested persons to request a joint The SEC estimates that nine of these Dated: December 10, 2018.
interpretation by the SEC and the requests will have also been made in a
Eduardo A. Aleman,
Commodity Futures Trading request for a joint interpretation
Commission (‘‘CFTC’’) (together with pursuant to Rule 3a68–2, and one will Deputy Secretary.
the SEC, the ‘‘Commissions’’) regarding not have been. The SEC estimates the [FR Doc. 2018–27089 Filed 12–13–18; 8:45 am]
whether a particular instrument (or total burden for the one request for BILLING CODE 8011–01–P
class of instruments) is a swap, a which the joint interpretation pursuant
security-based swap, or both (i.e., a to 3a68–2 was not requested would be
mixed swap). Under Rule 3a68–2, a 30 hours, and the total burden SECURITIES AND EXCHANGE
person provides to the Commissions a associated with the other nine requests COMMISSION
copy of all material information would be 20 hours per request because
[SEC File No. 270–401, OMB Control No.
regarding the terms of, and a statement some of the information required to be 3235–0459]
of the economic characteristics and submitted pursuant to Rule 3a68–4(c)
purpose of, each relevant agreement, would have already been submitted Proposed Collection; Comment
contract, or transaction (or class pursuant to Rule 3a68–2. The burden in Request
thereof), along with that person’s both cases is evenly divided between
determination as to whether each such the SEC and the CFTC. Upon Written Request, Copies Available
agreement, contract, or transaction (or The SEC estimates that the total costs From: Securities and Exchange
class thereof) should be characterized as resulting from a submission under Rule Commission, Office of FOIA Services,
a swap, security-based swap, or both 3a68–4(c) would be approximately 100 F Street NE, Washington, DC
(i.e., a mixed swap). The Commissions $20,000 for the services of outside 20549–2736
also may request the submitting person attorneys to retrieve, review, and submit Extension:
to provide additional information. the information associated with the Rule 3a–4.
The SEC expects 25 requests pursuant submission of the one request for which
to Rule 3a68–2 per year. The SEC a request for a joint interpretation Notice is hereby given that, pursuant
estimates the total paperwork burden pursuant to Rule 3a68–2 was not to the Paperwork Reduction Act of 1995
associated with preparing and previously made (1 request × 50 hours/ (44 U.S.C. 350l–3520), the Securities
submitting each request would be 20 request × $400). For the nine requests and Exchange Commission (the
hours to retrieve, review, and submit the for which a request for a joint ‘‘Commission’’) is soliciting comments
information associated with the interpretation pursuant to Rule 3a68–2 on the collection of information
submission. This 20 hour burden is was previously made, the SEC estimates summarized below. The Commission
divided between the SEC and the CFTC, the total costs associated with preparing plans to submit this existing collection
with 10 hours per response regarding and submitting a party’s request of information to the Office of
reporting to the SEC and 10 hours of pursuant to Rule 3a68–4(c) would be Management and Budget for extension
response regarding third party $6,000 less per request because, as and approval.
disclosure to the CFTC.1 The SEC discussed above, some of the Rule 3a–4 (17 CFR 270.3a–4) under
estimates this would result in an information required to be submitted the Investment Company Act of 1940
aggregate annual burden of 500 hours pursuant to Rule 3a68–4(c) already (15 U.S.C. 80a) (‘‘Investment Company
(25 requests × 20 hours/request). would have been submitted pursuant to Act’’ or ‘‘Act’’) provides a nonexclusive
The SEC estimates that the total costs Rule 3a68–2. The SEC estimates this safe harbor from the definition of
resulting from a submission under Rule would result in an aggregate cost each investment company under the Act for
3a68–2 would be approximately $12,000 year of $126,000 for the services of certain investment advisory programs.
for outside attorneys to retrieve, review, outside attorneys (9 requests × 35 hours/ These programs, which include ‘‘wrap
and submit the information associated request × $400). fee’’ programs, generally are designed to
with the submission. The SEC estimates An agency may not conduct or provide professional portfolio
this would result in aggregate costs each sponsor, and a person is not required to management services on a discretionary
year of $300,000 (25 requests × 30 respond to, a collection of information basis to clients who are investing less
hours/request × $400). under the PRA unless it displays a than the minimum investments for
Rule 3a68–4(c) establishes a process currently valid OMB control number. individual accounts usually required by
for persons to request that the The public may view background the investment adviser but more than
Commissions issue a joint order documentation for this information the minimum account size of most
permitting such persons (and any other collection at the following website: mutual funds. Under wrap fee and
person or persons that subsequently www.reginfo.gov. Comments should be similar programs, a client’s account is
lists, trades, or clears that class of mixed directed to: (i) Desk Officer for the typically managed on a discretionary
swap) to comply, as to parallel Securities and Exchange Commission, basis according to pre-selected
provisions only, with specified parallel Office of Information and Regulatory investment objectives. Clients with
amozie on DSK3GDR082PROD with NOTICES1

provisions of either the Commodity Affairs, Office of Management and similar investment objectives often
Exchange Act (‘‘CEA’’) or the Securities Budget, Room 10102, New Executive receive the same investment advice and
Exchange Act of 1934 (‘‘Exchange Act’’), Office Building, Washington, DC 20503, may hold the same or substantially
and related rules and regulations or by sending an email to: similar securities in their accounts.
Lindsay.M.Abate@omb.eop.gov; and (ii) Because of this similarity of
1 The burdens imposed by the CFTC are included Charles Riddle, Acting Director/Chief management, some of these investment
in this collection of information. Information Officer, Securities and advisory programs may meet the

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Document Created: 2018-12-14 03:50:08
Document Modified: 2018-12-14 03:50:08
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 64381