60 Day Notice

3235-0198 60 Day Notice.pdf

Rule 15c2-5 (17 CFR 240.15c2-5); Disclosure and Other Requirements When Extending or Arranging Credit in Certain Transactions

60 Day Notice

OMB: 3235-0198

Document [pdf]
Download: pdf | pdf
Federal Register / Vol. 85, No. 57 / Tuesday, March 24, 2020 / Notices
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–CboeEDGA–2020–008 and
should be submitted on or before April
14, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–06117 Filed 3–23–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–195; OMB Control No.
3235–0198]

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

lotter on DSKBCFDHB2PROD with NOTICES

Extension:
Rule 15c2–5.

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 Rule 15c2–5 (17 CFR
240.15c2–5) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) (‘‘Exchange Act’’). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 15c2–5 prohibits a broker-dealer
from arranging or extending certain
loans to persons in connection with the
offer or sale of securities unless, before
any element of the transaction is entered
into, the broker-dealer: (1) Delivers to
the person a written statement
containing the exact nature and extent
of the person’s obligations under the
loan arrangement; the risks and
disadvantages of the loan arrangement;
and all commissions, discounts, and
other remuneration received and to be
received in connection with the
transaction by the broker-dealer or
certain related persons (unless the
person receives certain materials from
the lender or broker-dealer which
contain the required information); and
30 17

CFR 200.30–3(a)(12).

VerDate Sep<11>2014

17:34 Mar 23, 2020

Jkt 250001

(2) obtains from the person information
on the person’s financial situation and
needs, reasonably determines that the
transaction is suitable for the person,
and retains on file and makes available
to the person on request a written
statement setting forth the brokerdealer’s basis for determining that the
transaction was suitable. The collection
of information required by Rule 15c2–5
is necessary to execute the
Commission’s mandate under the
Exchange Act to prevent fraudulent,
manipulative, and deceptive acts and
practices by broker-dealers.
The Commission estimates that there
are approximately 50 respondents that
require an aggregate total of 600 hours
to comply with Rule 15c2–5.1 Each of
these approximately 50 registered
broker-dealers makes an estimated six
annual responses, for an aggregate total
of 300 responses per year.2 Each
response takes approximately two hours
to complete. Thus, the total compliance
burden per year is 600 burden hours.3
The approximate internal compliance
cost per hour is $63.00 for clerical
labor,4 resulting in a total internal
compliance cost of $37,800.5 These
reflect internal labor costs; there are no
external labor, capital, or start-up costs.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. 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
1 50 respondents × 6 responses per year × 2 hours
per response = 600 hours per year.
2 50 respondents × 6 responses per year = 300
responses per year.
3 300 responses per year × 2 hours per response
= 600 hours per year.
4 Cost per hour for a clerk is from SIFMA’s Office
Salaries in the Securities Industry 2013, modified
by Commission staff to account for an 1800-hour
work-year, multiplied by 2.93 to account for
bonuses, firm size, employee benefits and overhead,
and adjusted by a factor of 1.0965 to account for
inflation.
5 600 hours per year × $63.00 per hour = $37,800
per year.

PO 00000

Frm 00114

Fmt 4703

Sfmt 4703

16719

under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
[email protected].
Dated: March 18, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–06109 Filed 3–23–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–455, OMB Control No.
3235–0514]

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:
Rule 8c–1.

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 Rule 8c–1 (17 CFR
240.8c–1), under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’)
(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.
Rule 8c–1 generally prohibits a
broker-dealer from using its customers’
securities as collateral to finance its own
trading, speculating, or underwriting
transactions. More specifically, Rule 8c–
1 states three main principles: (1) A
broker-dealer is prohibited from
commingling the securities of different
customers as collateral for a loan
without the consent of each customer;
(2) a broker-dealer cannot commingle
customers’ securities with its own
securities under the same pledge; and
(3) a broker-dealer can only pledge its
customers’ securities to the extent that
customers are in debt to the brokerdealer. Additionally, Rule 8c–1 requires
broker-dealers to make certain written
notifications to pledgees in connection

E:\FR\FM\24MRN1.SGM

24MRN1

lotter on DSKBCFDHB2PROD with NOTICES

16720

Federal Register / Vol. 85, No. 57 / Tuesday, March 24, 2020 / Notices

with such use of customer securities as
collateral.1
The information required by Rule 8c–
1 is necessary for the execution of the
Commission’s mandate under the
Exchange Act to prevent broker-dealers
from hypothecating or arranging for the
hypothecation of any securities carried
for the account of any customer under
certain circumstances. In addition, the
information required by Rule 8c–1
provides important investor protections.
There are approximately 46
respondents as of year-end 2019 (i.e.,
broker-dealers that conducted business
with the public, filed Part II of the
FOCUS Report, did not claim an
exemption from the Reserve Formula
computation, and reported that they had
a bank loan during at least one quarter
of the current year). Each respondent
makes an estimated 45 annual
responses, for an aggregate total of 2,070
responses per year.2 Each response takes
approximately 0.5 hours to complete.
Therefore, the total third-party
disclosure burden per year is 1,035
hours.3
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
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
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.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
[email protected].

Dated: March 18, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–06108 Filed 3–23–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88421; File No. SR–IEX–
2020–04]

Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
IEX Rule 11.280 Concerning the
Resumption of Trading Following a
Level 3 Market-Wide Circuit Breaker
Halt
March 18, 2020.

Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March
18, 2020, the Investors Exchange LLC
(‘‘IEX’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Pursuant to the provisions of Section
19(b)(1) under the Act,4 and Rule 19b–
4 thereunder,5 IEX is filing with the
Commission a proposed rule change to
amend IEX Rule 11.280 concerning the
resumption of trading following a Level
3 market-wide circuit breaker halt. IEX
has designated this rule change as ‘‘noncontroversial’’ under Section 19(b)(3)(A)
of the Act 6 and provided the
Commission with the notice required by
Rule 19b–4(f)(6) thereunder.7
The text of the proposed rule change
is available at the Exchange’s website at
www.iextrading.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
1 15

1 See

Exchange Act Release No. 2690 (November
15, 1940); Exchange Act Release No. 9428
(December 29, 1971).
2 46 respondents × 45 annual responses = 2,070
aggregate total of annual responses.
3 2,070 responses × 0.5 hours = 1,035 hours.

VerDate Sep<11>2014

17:34 Mar 23, 2020

Jkt 250001

U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(1).
5 17 CFR 240.19b–4.
6 15 U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4.
2 15

PO 00000

Frm 00115

Fmt 4703

Sfmt 4703

II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statement may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend IEX
Rule 11.280(b) 8 concerning the
resumption of trading following a Level
3 market-wide circuit breaker halt. The
Exchange is proposing this rule change
in conjunction with other national
securities exchanges and the Financial
Industry Regulatory Authority
(‘‘FINRA’’).
IEX Rule 11.280 provides a
methodology for determining when to
halt trading in all stocks due to
extraordinary market volatility (i.e.,
market-wide circuit breakers).9 The
market-wide circuit breaker mechanism
(‘‘MWCB’’) under IEX Rule 11.280 was
approved by the Commission to operate
on a pilot basis, the term of which was
to coincide with the pilot period for the
Plan to Address Extraordinary Market
Volatility Pursuant to Rule 608 of
Regulation NMS (the ‘‘LULD Plan’’),
including any extensions to the pilot
period for the LULD Plan.10 The
Commission recently approved an
amendment to the LULD Plan for it to
operate on a permanent, rather than
pilot, basis.11 In light of the proposal to
make the LULD Plan permanent, the
Exchange amended IEX Rule 11.280 to
untie the pilot’s effectiveness from that
of the LULD Plan and to extend the
pilot’s effectiveness to the close of
8 See

IEX Rule 11.280(b).
IEX Rule 11.280(a)–(d) and (f).
10 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012). An
amendment to the LULD Plan adding IEX as a
Participant was filed with the Commission on
August 11, 2016 and became effective upon filing
pursuant to Rule 608(b)(3)(iii) of the Act. See
Securities Exchange Act Release No. 78703 (August
26, 2016), 81 FR 60397 (September 1, 2016) (File
No. 4–631).
11 See Securities Exchange Act Release No. 85623
(April 11, 2019), 84 FR 16086 (April 17, 2019).
9 See

E:\FR\FM\24MRN1.SGM

24MRN1


File Typeapplication/pdf
File Modified2020-03-24
File Created2020-03-24

© 2024 OMB.report | Privacy Policy