30 Day Notice

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices
FCMs, Commission staff estimates there
are no costs related to existing contracts
between funds and FCMs. This estimate
does not include the time required by an
FCM to comply with the rule’s contract
requirements because, to the extent that
complying with the contract provisions

could be considered ‘‘collections of
information,’’ the burden hours for
compliance are already included in
other PRA submissions.1 Commission
staff estimates that approximately 1,302
series of 155 funds report that futures
commission merchants and commodity

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clearing organizations provide custodial
services to the fund.2
Commission staff, however, estimates
that any burden of the rule would be
borne by funds and FCMs entering into
new contracts pursuant to the rule as set
forth in Table 1 below:

TABLE 1—BURDEN OF INFORMATION COLLECTION FOR COMPLYING WITH RULE 17f–6

New contracts with FCMs annually
........................................................

Totals ......................................

Estimated responses

Estimated hours burden

Estimated cost burdens

130 series .....................................
15 funds 1 ......................................

130 series × 0.1 hours = 13 hours
15 funds × 1 hour = 15 hours ......
13 hours + 15 hours = 28 hours 3

13 hours × $425 (attorney) 4 =
$5,525
15 hours × $425 (attorney) 4 =
$6,375
$5,525 + $6,375 = $11,900

28 hours annually .........................

$11,900 annually

130 series and 15 funds annually 2.

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1 These estimates are based on the assumption that 10% of series and funds that currently effect commodities transactions enter into new
FCM contracts each year. This assumption encompasses series and fund that enter into FCM contracts for the first time, as well as fund complexes and fund that change the FCM with whom they maintain margin accounts for commodities transactions.
2 Commission staff estimates that approximately155 funds, representing 1,302 separate fund series, currently effect commodities transactions
and could deposit margin with FCMs in connection with those transactions pursuant to rule 17f–6. Staff further estimates that of this number, 15
funds and 130 series enter into new contracts with FCMs each year.
3 Based on conversations with fund representatives, Commission staff understands that funds typically enter into contracts with FCMs on behalf of series that engage in commodities transactions. Series covered by the contract are typically listed in an attachment, which may be
amended to encompass new series. Commission staff estimates that the burden for a fund to enter into a contract with an FCM that contains the
contract requirements of rule 17f–6 is one hour, and further estimates that the burden to add a series to an existing contract between a fund and
an FCM is 6 minutes.
4 The $425 per hour figure for an attorney is from SIFMA’s Management & Professional Earnings in the Securities Industry 2013, updated for
2021 modified by Commission staff to account for an 1,800-hour work-year and multiplied by 5.35 to account for bonuses, firm size, employee
benefits and overhead.

These estimates are made solely for
the purposes of the Paperwork
Reduction Act, and are not derived from
a comprehensive or even a
representative survey or study of the
costs of Commission rules and forms.
Compliance with the collection of
information requirements of the rule is
necessary to obtain the benefit of relying
on the rule. An agency may not conduct
or sponsor, and a person is not required
to respond to, a collection of
information unless it displays a
currently valid control number.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the Commission,
including whether the information has
practical utility; (b) the accuracy of the
Commission’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.
1 The rule requires a contract with the FCM to
contain two provisions requiring the FCM to
comply with existing requirements under the CEA
and rules adopted thereunder. Thus, to the extent
these provisions could be considered collections of

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18:43 Oct 20, 2021

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Consideration will be given to
comments and suggestions submitted in
writing within 60 days after this
publication.
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: October 15, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–22899 Filed 10–20–21; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–348, OMB Control No.
3235–0394]

Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
information, the hours required for compliance
would be included in the collection of information
burden hours submitted by the CFTC for its rules.
2 This estimate is based on the number of funds
that reported on Form N–CEN from July 31, 2020–

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100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 15g–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’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 15g–5—Disclosure of
Compensation of Associated Persons in
Connection with Penny Stock
Transactions—(17 CFR 240.15g–5)
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.).
Rule 15g–5 requires brokers and
dealers to disclose to customers the
amount of compensation to be received
by their sales agents in connection with
penny stock transactions. The purpose
of the rule is to increase the level of
disclosure to investors concerning
penny stocks generally and specific
penny stock transactions.
July 31, 2021, in response to sub-items C.12.6. and
D.14.6. Money market funds are excluded from this
estimate because they are not eligible securities.

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Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices

The Commission estimates that
approximately 178 broker-dealers will
spend an average of approximately 87
hours annually to comply with the rule.
Thus, the total time burden is
approximately 15,486 burden-hours per
year.
Rule 15g–5 contains record retention
requirements. Compliance with the rule
is mandatory.
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. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected].
Dated: October 15, 2021
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–22900 Filed 10–20–21; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93355; File No. SR–FINRA–
2021–026]

Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Pilot
Program Related to FINRA Rule 11892
(Clearly Erroneous Transactions in
Exchange-Listed Securities)

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October 15, 2021.

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 October
5, 2021, the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
1 15
2 17

U.S.C. 78s(b)(1).
CFR 240.19b–4.

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17:35 Oct 20, 2021

have been prepared by FINRA. FINRA
has designated the proposed rule change
as constituting a ‘‘non-controversial’’
rule change under paragraph (f)(6) of
Rule 19b–4 under the Act,3 which
renders the proposal effective upon
receipt of this filing by the Commission.
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
FINRA is proposing to extend the
current pilot program related to FINRA
Rule 11892 (Clearly Erroneous
Transactions in Exchange-Listed
Securities) (‘‘Clearly Erroneous
Transaction Pilot’’ or ‘‘Pilot’’) until
April 20, 2022.
The text of the proposed rule change
is available on FINRA’s website at
http://www.finra.org, at the principal
office of FINRA 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,
FINRA 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. FINRA 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
FINRA is proposing a rule change to
extend the current pilot program related
to FINRA Rule 11892 governing clearly
erroneous transactions in exchangelisted securities until the close of
business on April 20, 2022. Extending
the Pilot would provide FINRA and the
national securities exchanges additional
time to consider a permanent proposal
for clearly erroneous transaction
reviews.
On September 10, 2010, the
Commission approved, on a pilot basis,
changes to FINRA Rule 11892 that,
among other things: (i) Provided for
uniform treatment of clearly
erroneous transaction reviews in multistock events involving twenty or more
3 17

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CFR 240.19b–4(f)(6).

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securities; and (ii) reduced the ability of
FINRA to deviate from the objective
standards set forth in the rule.4 In 2013,
FINRA adopted a provision designed to
address the operation of the Plan to
Address Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS
(‘‘Plan’’).5 Finally, in 2014, FINRA
adopted two additional provisions
addressing (i) erroneous transactions
that occur over one or more trading days
that were based on the same
fundamentally incorrect or grossly
misinterpreted information resulting in
a severe valuation error; and (ii) a
disruption or malfunction in the
operation of the facilities of a selfregulatory organization or responsible
single plan processor in connection
with the transmittal or receipt of a
trading halt.6
On April 9, 2019, FINRA filed a
proposed rule change to untie the
effectiveness of the Clearly Erroneous
Transaction Pilot from the effectiveness
of the Plan, and to extend the Pilot’s
effectiveness to the close of business on
October 18, 2019.7 On October 10, 2019,
FINRA filed a proposed rule change to
extend the Pilot’s effectiveness until
April 20, 2020.8 On March 18, 2020,
FINRA filed a proposed rule change to
extend the pilot’s effectiveness until
October 20, 2020.9 On October 16, 2020,
FINRA filed a proposed rule change to
extend the Pilot’s effectiveness until
April 20, 2021.10 On March 15, 2021,
FINRA filed a proposed rule change to
extend the Pilot’s effectiveness until
October 20, 2021.11 FINRA now is
proposing to further extend the Pilot
until April 20, 2022, so that market
4 See Securities Exchange Act Release No. 62885
(September 10, 2010), 75 FR 56641 (September 16,
2010) (Order Approving File No. SR–FINRA–2010–
032).
5 See Securities Exchange Act Release No. 68808
(February 1, 2013), 78 FR 9083 (February 7, 2013)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2013–012).
6 See Securities Exchange Act Release No. 72434
(June 19, 2014), 79 FR 36110 (June 25, 2014) (Order
Approving File No. SR–FINRA–2014–021).
7 See Securities Exchange Act Release No. 85612
(April 11, 2019), 84 FR 16107 (April 17, 2019)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2019–011).
8 See Securities Exchange Act Release No. 87344
(October 18, 2019), 84 FR 57076 (October 24, 2019)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2019–025).
9 See Securities Exchange Act Release No. 88495
(March 27, 2020), 85 FR 18608 (April 2, 2020)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2020–008).
10 See Securities Exchange Act Release No. 90219
(October 19, 2020), 85 FR 67574 (October 23, 2020)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2020–036).
11 See Securities Exchange Act Release No. 91373
(March 19, 2021), 86 FR 16003 (March 25, 2021)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2021–004).

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