30 Day Notice

Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Notices
Further, as explained above, LCH SA
believes that the fee rates have been set
up at an appropriate level given the
costs and expenses to LCH SA in
offering the relevant clearing services.
C. Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. LCH SA will
notify the Commission of any written
comments received by LCH SA.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and paragraph (f) of Rule
19b–4 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (http://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
LCH SA–2019–010 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–LCH SA–2019–010. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (http://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written

VerDate Sep<11>2014

17:21 Nov 19, 2019

Jkt 250001

communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of LCH SA and on LCH SA’s
website at: https://www.lch.com/
resources/rules-and-regulations/
proposed-rule-changes-0. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–LCH SA–2019–010 and
should be submitted on or before
December 11, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–25105 Filed 11–19–19; 8:45 am]
BILLING CODE 8011–01–P

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:
Rule 6a–4, Form 1–N, SEC File No. 270–
496, OMB Control No. 3235–0554

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information provided for in Rule 6a–4
and Form 1–N (17 CFR 240.6a–4 and 17
CFR 249.10) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) (‘‘Exchange Act’’).
11 17

PO 00000

CFR 200.30–3(a)(12).

Frm 00090

Fmt 4703

Sfmt 4703

64127

Section 6 of the Exchange Act 1 sets
out a framework for the registration and
regulation of national securities
exchanges. Under the Commodity
Futures Modernization Act of 2000, a
futures market may trade security
futures products by registering as a
national securities exchange. Rule 6a–
4 2 sets forth these registration
procedures and directs futures markets
to submit a notice registration on Form
1–N.3 Form 1–N calls for information
regarding how the futures market
operates, its rules and procedures,
corporate governance, its criteria for
membership, its subsidiaries and
affiliates, and the security futures
products it intends to trade. Rule 6a–4
also requires entities that have
submitted an initial Form 1–N to file: (1)
Amendments to Form 1–N in the event
of material changes to the information
provided in the initial Form 1–N; (2)
periodic updates of certain information
provided in the initial Form 1–N; (3)
certain information that is provided to
the futures market’s members; and (4) a
monthly report summarizing the futures
market’s trading of security futures
products. The information required to
be filed with the Commission pursuant
to Rule 6a–4 is designed to enable the
Commission to carry out its statutorily
mandated oversight functions and to
ensure that registered and exempt
exchanges continue to be in compliance
with the Act.
The respondents to the collection of
information are futures markets.
The Commission estimates that the
total annual burden of compliance with
the requirements of Rule 6a–4 and Form
1–N is 171 hours per year and $1,216
per year, calculated as detailed below.
The Commission estimates that the total
annual burden for all respondents to
provide periodic amendments 4 to keep
the Form 1–N accurate and up to date
as required under Rule 6a–4(b)(1) would
be 60 hours (15 hours/respondent per
year × 4 respondents 5 to provide annual
amendments under Rule 6a–4(b)(3)
would be 60 hours (15 hours/
respondent/year × 4 respondents) and
$400 of miscellaneous clerical expenses.
The Commission estimates that the total
annual burden for all respondents to
provide three-year amendments 6 under
Rule 6a–4(b)(4) would be 27 hours (20
hours/respondent × 1.33 respondents
per year) and $176 ($44 per year × 4
1 15

U.S.C. 78f.
CFR 240.6a–4.
3 17 CFR 249.10.
4 17 CFR 240.6a–4(b)(1).
5 The Commission estimates that four exchanges
will file amendments with the Commission in order
to keep their Form 1–N current.
6 17 CFR 240.6a–4(b)(3) and (4).
2 17

E:\FR\FM\20NON1.SGM

20NON1

64128

Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Notices

respondents 7) in miscellaneous clerical
expenses. The Commission estimates
that the total annual burden for the
filing of the supplemental information 8
and the monthly reports required under
Rule 6a–4(c) would be 24 hours (6
hours/respondent per year × 4
respondents 9) and $240 of
miscellaneous clerical expenses.
Compliance with Rule 6a–4 is
mandatory. Information received in
response to Rule 6a–4 shall not be kept
confidential; the information collected
is public information.
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: November 14, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–25096 Filed 11–19–19; 8:45 am]
BILLING CODE 8011–01–P

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
New Collection:
Rule 139b; OMB Control No. New
Collection, SEC File No. 270–815

Notice is hereby given that the
Securities and Exchange Commission
(the ‘‘Commission’’) has, in accordance
7 The

Commission notes that while there are
currently five Security Futures Product Exchanges,
one of those exchanges, NQLX, is dormant.
8 17 CFR 240.6a–4(c)
9 See supra footnote 7.

VerDate Sep<11>2014

17:21 Nov 19, 2019

Jkt 250001

with the Paperwork Reduction Act of
1995 (Pub. L. 104–13, 44 U.S.C. 3501 et
seq.) (‘‘PRA’’), submitted a sponsored
information collection request (‘‘ICR’’)
to the Office of Management and Budget
(‘‘OMB’’) for review and clearance for
the collection of information associated
with the new Rule 139b (17 CFR
230.139b) under the Securities Act of
1933 (15 U.S.C. 77a et seq.) (‘‘Securities
Act’’) that was adopted by the
Commission on November 30, 2018.1
The title for this collection of
information is: ‘‘Rule 139b Disclosure of
Standardized Performance.’’
As directed by the Fair Access to
Investment Research Act of 2017 (Pub.
L. 115–66, 131 Stat. 1196 (2017) (the
‘‘FAIR Act’’), the Commission adopted
new rule 139b under the Securities Act
to extend the safe harbor under rule 139
to a ‘‘covered investment fund research
report.’’ Specifically, new rule 139b
provides a safe harbor to a broker-dealer
who publishes or distributes in the
regular course of its business research
reports concerning one or more
‘‘covered investment fund(s)’’ while
participating in the distribution of a
covered investment fund’s securities.
In the Proposing Release, we solicited
comment on whether rule 139b should
include a standardized performance
disclosure requirement.2 In response to
comments received, we have decided to
adopt such a requirement.3 We believe
that standardized performance
presentation is an appropriate
requirement because investors tend to
consider fund performance a significant
factor in evaluating or comparing
investment companies, and the
requirement addresses potential
investor confusion if a communication
were not easily recognizable as research
as opposed to an advertising prospectus
or supplemental sales literature. Rule
139b requires that research reports
about open-end funds that include
performance information must present it
in accordance with paragraphs (d), (e),
and (g) of rule 482. Rule 139b also
requires that research reports about
closed-end funds that include
performance information must present it
in accordance with instructions to item
4.1(g) of Form N–2. Performance
measures calculated by broker-dealers
are not required to be kept confidential
and there is no mandatory retention
1 See Release No. 33–10580 (Nov. 30, 2018) [83
FR 64180 (Dec. 13, 2018)] (‘‘Adopting Release’’).
New rule 139b will be effective on January 14, 2019.
2 See Covered Investment Fund Research Reports,
Securities Act Release No. 10498 (May 23, 2018) [83
FR 26788 (June 8, 2018)] (‘‘Proposing Release’’) at
26803–04.
3 See Adopting Release, supra note I, at Section
II.C.

PO 00000

Frm 00091

Fmt 4703

Sfmt 4703

period. We anticipate that compliance
with these performance measures for
each fund discussed in a research
report, and for which the performance
measures apply, would increase
compliance costs for broker-dealers
seeking to publish or distribute a
covered investment fund research
report.
It is difficult to provide estimates of
the burdens and costs for those brokerdealers that will include performance
information in a rule 139b research
report. As discussed above, this is
difficult to estimate because current
data collected does not reflect the
affiliate exclusion, does not include the
entire universe of covered investment
funds, and it is uncertain what
percentage of communications currently
filed as rule 482 advertising
prospectuses (or rule 34b–1
supplemental sales materials) will
instead be published in reliance of rule
139b, as covered investment fund
research reports.4 For purposes of the
PRA, we estimate that 10% of the rule
482 and rule 34b–1 communications
currently filed by broker-dealers with
FINRA (approximately 65,000) could be
considered as rule 139b covered
investment fund research reports. We
estimate that broker-dealers will publish
annually 6,500 (10% of 65,000) covered
investment fund research reports.
Moreover, we assume for purposes of
the PRA that all estimated rule 139b
research reports will include fund
performance information. We further
estimate that 1,417 broker-dealers
would likely be respondents to the
collection of information with a
frequency of 4.6 responses per year.5 We
further estimate that 50% of these
broker-dealers will have experience in
complying with standardized
performance requirements under rule
482. For the 50% of this subset of
broker-dealers that do not have
experience with complying with rule
482, we estimate that there will be a
one-time implementation cost for each
broker-dealer of 5 internal burden
hours. Additionally, we estimate that
each research report will require 3 hours
of ongoing internal burden hours by a
broker-dealers’ personnel to comply
with the rule 139b collection of
information requirements, which for
each broker-dealer is estimated to be
4 See Adopting Release, supra note 1, n. 413 and
accompanying paragraph.
5 See Adopting Release, supra note 1, n. 414 and
accompanying text. 6,500 covered investment fund
research reports/1,417 broker-dealers = 4.6 annual
responses per broker-dealer.

E:\FR\FM\20NON1.SGM

20NON1