30 Day Notice

Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Notices
19(b)(3)(A)(iii) of the Act 45 and
subparagraph (f)(6) of Rule 19b–4
thereunder.46
A proposed rule change filed under
Rule 19b–4(f)(6) 47 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),48 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay. The Exchange states
that waiver of the 30-day operative
delay would benefit investors by
enabling the Exchange to make latency
information for liquidity-seeking
Complex Orders available to Exchange
Participants in a more equalized and
timely manner, allow the Exchange to
compete with other exchanges that
currently offer substantially similar
reports for complex orders,49 and
provide the Exchange with an
opportunity to attract additional order
flow from Participants that find value in
the proposed report. The Commission
finds that waiving the 30-day operative
delay is consistent with the protection
of investors and the public interest. As
discussed above, the Exchange states
that the proposed reports could provide
Participants that subscribe to the reports
with increased visibility into missed
executions against orders resting on the
Exchange’s Complex Order Book,
thereby allowing Participants to
determine whether to invest in the
resources and technology needed to
mitigate missed executions. The
Exchange notes that all firms that
choose to subscribe to the proposed
reports, which are optional, will have
access to the same information on an
equal basis, including firms that lack the
resources to generate similar reports
regarding interactions with the
Exchange. In addition, the proposal
does not raise new or novel regulatory
issues because other options exchanges
currently offer substantially similar
reports for complex orders.50 For these
reasons, the Commission designates the
proposal operative upon filing.51
45 15

U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
47 17 CFR 240.19b–4(f)(6).
48 17 CFR 240.19b–4(f)(6)(iii).
49 See supra note 7.
50 See supra note 7.
51 For purposes only of accelerating the operative
date of this proposal, the Commission has

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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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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–
BOX–2022–18 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–BOX–2022–18. 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
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
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).

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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–BOX–2022–18, and should
be submitted on or before June 10, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.52
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–10804 Filed 5–19–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–188, OMB Control No.
3235–0212]

Submission for OMB Review;
Comment Request; Extension: Rule
12b–1
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
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 (the
‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
Rule 12b–1 under the Investment
Company Act of 1940 (17 CFR 270.12b–
1) permits a registered open-end
investment company (‘‘fund’’) to bear
expenses associated with the
distribution of its shares, provided that
the fund complies with certain
requirements, including, among other
things, that it adopt a written plan
(‘‘rule 12b–1 plan’’) and that it preserves
in writing any agreements relating to the
rule 12b–1 plan. The rule in part
requires that (i) the adoption or material
amendment of a rule 12b–1 plan be
approved by the fund’s directors,
including its independent directors,
and, in certain circumstances, its
shareholders; (ii) the board review
quarterly reports of amounts spent
under the rule 12b–1 plan; and (iii) the
board, including the independent
directors, consider continuation of the
rule 12b–1 plan and any related
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Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Notices

agreements at least annually. Rule 12b–
1 also requires funds relying on the rule
to preserve for six years, the first two
years in an easily accessible place,
copies of the rule 12b–1 plan and any
related agreements and reports, as well
as minutes of board meetings that
describe the factors considered and the
basis for adopting or continuing a rule
12b–1 plan.
Rule 12b–1 also prohibits funds from
paying for distribution of fund shares
with brokerage commissions on their
portfolio transactions. The rule requires
funds that use broker-dealers that sell
their shares to also execute their
portfolio securities transactions, to
implement policies and procedures
reasonably designed to prevent: (i) The
persons responsible for selecting brokerdealers to effect transactions in fund
portfolio securities from taking into
account broker-dealers’ promotional or
sales efforts when making those
decisions; and (ii) a fund, its adviser, or
its principal underwriter, from entering
into any agreement under which the
fund directs brokerage transactions or
revenue generated by those transactions
to a broker-dealer to pay for distribution
of the fund’s (or any other fund’s)
shares.
The board and shareholder approval
requirements of rule 12b–1 are designed
to ensure that fund shareholders and
directors receive adequate information
to evaluate and approve a rule 12b–1
plan and, thus, are necessary for
investor protection. The requirement of
quarterly reporting to the board is
designed to ensure that the rule 12b–1
plan continues to benefit the fund and
its shareholders. The recordkeeping
requirements of the rule are necessary to
enable Commission staff to oversee
compliance with the rule. The
requirement that funds or their advisers
implement, and fund boards approve,
policies and procedures in order to
prevent persons charged with allocating
fund brokerage from taking distribution
efforts into account is designed to
ensure that funds’ selection of brokers to
effect portfolio securities transactions is
not influenced by considerations about
the sale of fund shares.
Commission staff estimates that there
are approximately 6,358 funds (for
purposes of this estimate, registered
open-end investment companies or
series thereof) that have at least one
share class subject to a rule 12b–1 plan
and approximately 454 fund families
with common boards of directors that
have at least one fund with a 12b–1
plan. The Commission further estimates
that the annual hour burden for
complying with the rule is 425 hours for
each fund family with a portfolio that

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has a rule 12b–1 plan. We therefore
estimate that the total hourly burden per
year for all funds to comply with
current information collection
requirements under rule 12b–1 is
192,950 hours. Commission staff
estimates that approximately three
funds per year prepare a proxy in
connection with the adoption or
material amendment of a rule 12b–1
plan. The staff further estimates that the
cost of each fund’s proxy is $30,000.
Thus, the total annual cost burden of
rule 12b–1 to the fund industry is
$90,000.
Estimates of average burden hours
and costs are made solely for purposes
of the Paperwork Reduction Act and are
not derived from a comprehensive or
even representative survey or study of
the costs of Commission rules and
forms. The collections of information
required by rule 12b–1 are necessary to
obtain the benefits of the rule. Notices
to the Commission will not be kept
confidential. 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 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 by June 21, 2022 to (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission,
c/o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected].
Dated: May 16, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–10816 Filed 5–19–22; 8:45 am]

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94921; File No. SR–ICC–
2022–002]

Self-Regulatory Organizations; ICE
Clear Credit LLC; Order Approving
Proposed Rule Change Relating to the
ICC Risk Parameter Setting and
Review Policy
May 16, 2022.

I. Introduction
On March 22, 2022, ICE Clear Credit
LLC (‘‘ICC’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (the ‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend its Risk Parameter Setting and
Review Policy (the ‘‘RPSR Policy’’). The
proposed rule change was published for
comment in the Federal Register on
April 4, 2022.3 The Commission did not
receive comments regarding the
proposed rule change. For the reasons
discussed below, the Commission is
approving the proposed rule change.
II. Description of the Proposed Rule
Change
The RPSR Policy describes ICC’s
process of setting and reviewing the risk
management model core parameters and
the performance of sensitivity analyses
related to certain parameter settings.4
Overall, ICC represents the proposed
amendments would be clarifications
needed to address an independent
model validation and would not change
the methodology.5
The proposed rule change would
amend Section 1.7, which describes the
parameters associated with the
integrated spread response component
of ICC’s CDS risk model. The RPSR
Policy categorizes these parameters as
Univariate, Multivariate, and AntiProcyclicality Level Parameters. The
proposed rule change would make
amendments to Subsection 1.7.1, which
describes the Univariate Level
Parameters.
As part of these Univariate Level
Parameters, ICC derives the end-of-day

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U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Self-Regulatory Organizations; ICE Clear Credit
LLC; Notice of Filing of Proposed Rule Change
Relating to the ICC Risk Parameter Setting and
Review Policy; Exchange Act Release No. 34–94544
(March 29, 2022); 87 FR 19563 (April 4, 2022) (SR–
ICC–2022–002) (‘‘Notice’’).
4 The description is substantially excerpted from
the Notice, 87 FR at 19563. Capitalized terms not
defined herein have the meanings assigned to them
in the RPSR Policy or the ICC Rules, as applicable.
5 Notice, 87 FR at 19563.
2 17

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