83_FR_64621 83 FR 64381 - Submission for OMB Review; Comment Request

83 FR 64381 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

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

Page Range64381-64382
FR Document2018-27089

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).
---------------------------------------------------------------------------

    \1\ The burdens imposed by the CFTC are included in this 
collection of information.
---------------------------------------------------------------------------

    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
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                                              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
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 64381 

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