60 Day Notice

3235-0434 60 Day Notice.pdf

Rule 15-g2 (17 CFR 240.15g-2) Risk disclosure document relating to the Penny Stock Rules

60 Day Notice

OMB: 3235-0434

Document [pdf]
Download: pdf | pdf
50844

Federal Register / Vol. 85, No. 160 / Tuesday, August 18, 2020 / Notices

the 30-day operative delay so that the
proposed rule change may become
operative upon filing. The Exchange
believes that its proposal to memorialize
its current BCP in its rules will make
clear to floor market participants the
potential outcomes for the Trading Floor
in the event of a disruption. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest as it will provide the
Exchange’s member and member
organizations with greater transparency
regarding its BCP. Accordingly, the
Commission hereby waives the
operative delay and designates the
proposed rule change operative upon
filing.13
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–
Phlx–2020–38 on the subject line.

jbell on DSKJLSW7X2PROD with NOTICES

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–Phlx–2020–38. 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
13 For purposes of waiving the 30-day operative
delay, the Commission also has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).

VerDate Sep<11>2014

17:50 Aug 17, 2020

Jkt 250001

change that are filed with the
Commission, and all written
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 the Exchange. 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–Phlx–2020–38 and should
be submitted on or before September 8,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–17961 Filed 8–17–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; 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:
Rule 15g–2, SEC File No. 270–381, OMB
Control No. 3235–0434

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
provided for in Rule 15g–2 (17 CFR
240.15g–2) 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 15g–2 (The ‘‘Penny Stock
Disclosure Rule’’) requires broker14 17

PO 00000

CFR 200.30–3(a)(12).

Frm 00048

Fmt 4703

Sfmt 4703

dealers to provide their customers with
a risk disclosure document, as set forth
in Schedule 15G, prior to their first nonexempt transaction in a ‘‘penny stock.’’
As amended, the rule requires brokerdealers to obtain written
acknowledgement from the customer
that he or she has received the required
risk disclosure document. The amended
rule also requires broker-dealers to
maintain a copy of the customer’s
written acknowledgement for at least
three years following the date on which
the risk disclosure document was
provided to the customer, the first two
years in an accessible place. Rule 15g–
2 also requires a broker-dealer, upon
request of a customer, to furnish the
customer with a copy of certain
information set forth on the
Commission’s website.
The risk disclosure documents are for
the benefit of the customers, to assure
that they are aware of the risks of
trading in ‘‘penny stocks’’ before they
enter into a transaction. The risk
disclosure documents are maintained by
the broker-dealers and may be reviewed
during the course of an examination by
the Commission.
The Commission estimates that
approximately 182 broker-dealers are
engaged in penny stock transactions and
that each of these firms processes an
average of three new customers for
penny stocks per week. The
Commission further estimates that half
of the broker-dealers send the penny
stock disclosure documents by mail,
and the other half send them through
electronic means such as email. Because
the Commission estimates the copying
and mailing of the penny stock
disclosure document takes two minutes,
this means that there is an annual
burden of 28,392 minutes, or 473 hours,
for this third-party disclosure burden of
mailing documents. Additionally,
because the Commission estimates that
sending the penny stock disclosure
document electronically takes one
minute, the annual burden is 14,196
minutes, or 237 hours, for this thirdparty disclosure burden of emailing
documents.
Broker-dealers also incur a
recordkeeping burden of approximately
two minutes per response when filing
the completed penny stock disclosure
documents as required pursuant to the
Rule 15g–2(c), which means that the
respondents incur an aggregate
recordkeeping burden of 56,784
minutes, or 946 hours.
Furthermore, Rule 15g–2(d) requires a
broker-dealer, upon request of a
customer, to furnish the customer with
a copy of certain information set forth
on the Commission’s website, which

E:\FR\FM\18AUN1.SGM

18AUN1

jbell on DSKJLSW7X2PROD with NOTICES

Federal Register / Vol. 85, No. 160 / Tuesday, August 18, 2020 / Notices
takes a respondent no more than two
minutes per customer. Because the
Commission estimates that a quarter of
customers who are required to receive
the Rule 15g–2 disclosure document
will request that their broker-dealer
provide them with the additional
microcap and penny stock information
posted on the Commission’s website,
the Commission therefore estimates that
each broker-dealer respondent processes
approximately 39 requests for paper
copies of this information per year or an
aggregate total of 78 minutes per
respondent, which amounts to an
annual burden of 14,196 minutes, or 237
hours.
The Commission does not maintain
the risk disclosure document. Instead, it
must be retained by the broker-dealer
for at least three years following the date
on which the risk disclosure document
was provided to the customer, the first
two years in an accessible place. The
collection of information required by
the rule is mandatory. The risk
disclosure document is otherwise
governed by the internal policies of the
broker-dealer regarding confidentiality,
etc.
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
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: August 13, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–18002 Filed 8–17–20; 8:45 am]

17:50 Aug 17, 2020

[Release No. 34–89530; File No. SR–MIAX–
2020–26]

Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
August 12, 2020.

Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 31,
2020, Miami International Securities
Exchange LLC (‘‘MIAX Options’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. 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
The Exchange is filing a proposal to
amend the MIAX Options Fee Schedule
(the ‘‘Fee Schedule’’).
The text of the proposed rule change
is available on the Exchange’s website at
http://www.miaxoptions.com/rulefilings, at MIAX’s principal office, and
at the Commission’s Public Reference
Room.
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
Exchange 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
statements may be examined at the
places specified in Item IV below. The
Exchange 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Fee Schedule to extend the cap waiver
of 1,000 contracts per leg for complex
1 15
2 17

BILLING CODE 8011–01–P

VerDate Sep<11>2014

SECURITIES AND EXCHANGE
COMMISSION

Jkt 250001

PO 00000

U.S.C. 78a.
CFR 240.19b–4.

Frm 00049

Fmt 4703

Sfmt 4703

50845

PRIME (‘‘cPRIME’’) 3 Agency Order
rebates for all tiers under the Priority
Customer Rebate Program (‘‘PCRP’’) 4
until August 31, 2020. The Exchange
also proposes to amend the list of MIAX
Select Symbols 5 contained in the
PCRP 6 of the Exchange’s Fee Schedule
to delete the Select Symbol ‘‘JCP,’’
associated with J. C. Penney Company,
Inc. (‘‘J. C. Penney’’), from the Select
Symbols list.
Background
Exchange Rule 518(b)(7) defines a
cPRIME Order as a type of complex
order 7 that is submitted for
3 ‘‘cPRIME’’ is the process by which a Member
may electronically submit a ‘‘cPRIME Order’’ (as
defined in Rule 518(b)(7)) it represents as agent (a
‘‘cPRIME Agency Order’’) against principal or
solicited interest for execution (a ‘‘cPRIME
Auction’’), subject to the restrictions set forth in
Exchange Rule 515A, Interpretation and Policy .12.
See Exchange Rule 515A.
4 Under the PCRP, MIAX credits each Member the
per contract amount resulting from each Priority
Customer order transmitted by that Member which
is executed electronically on the Exchange in all
multiply-listed option classes (excluding, in simple
or complex as applicable, QCC and cQCC Orders,
mini-options, Priority Customer-to-Priority
Customer Orders, C2C and cC2C Orders, PRIME and
cPRIME AOC Responses, PRIME and cPRIME
Contra-side Orders, PRIME and cPRIME Orders for
which both the Agency and Contra-side Order are
Priority Customers, and executions related to
contracts that are routed to one or more exchanges
in connection with the Options Order Protection
and Locked/Crossed Market Plan referenced in
Exchange Rule 1400), provided the Member meets
certain percentage thresholds in a month as
described in the PCRP table. See Fee Schedule,
Section 1)a)iii. ‘‘Priority Customer’’ means a person
or entity that (i) is not a broker or dealer in
securities, and (ii) does not place more than 390
orders in listed options per day on average during
a calendar month for its own beneficial accounts(s).
A ‘‘Priority Customer Order’’ means an order for the
account of a Priority Customer. See Exchange Rule
100.
5 The term ‘‘MIAX Select Symbols’’ means
options overlying AAL, AAPL, AIG, AMAT, AMD,
AMZN, BA, BABA, BB, BIDU, BP, C, CAT, CLF,
CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD,
GM, GOOGL, GPRO, HAL, INTC, IWM, JCP, JNJ,
JPM, KMI, KO, MO, MRK, NFLX, NOK, ORCL, PBR,
PFE, PG, QCOM, QQQ, RIG, SPY, T, TSLA, USO,
VALE, WBA, WFC, WMB, X, XHB, XLE, XLF, XLP,
XOM and XOP.
6 See section 1)a)iii) of the Fee Schedule for a
complete description of the PCRP.
7 A ‘‘complex order’’ is any order involving the
concurrent purchase and/or sale of two or more
different options in the same underlying security
(the ‘‘legs’’ or ‘‘components’’ of the complex order),
for the same account, in a ratio that is equal to or
greater than one-to-three (.333) and less than or
equal to three-to-one (3.00) and for the purposes of
executing a particular investment strategy. A
complex order can also be a ‘‘stock-option’’ order,
which is an order to buy or sell a stated number
of units of an underlying security coupled with the
purchase or sale of options contract(s) on the
opposite side of the market, subject to certain
contingencies set forth in the proposed rules
governing complex orders. For a complete
definition of a ‘‘complex order,’’ see Exchange Rule
518(a)(5). See also Securities Exchange Act Release
No. 78620 (August 18, 2016), 81 FR 58770 (August
25, 2016) (SR–MIAX–2016–26).

E:\FR\FM\18AUN1.SGM

18AUN1


File Typeapplication/pdf
File Modified2020-08-18
File Created2020-08-18

© 2024 OMB.report | Privacy Policy