60 Day Notice

72024

Federal Register / Vol. 86, No. 241 / Monday, December 20, 2021 / Notices

Agreement 42 contain certain provisions
designed to help maintain the
independence of the regulatory
functions of BOX Exchange. The
Commission believes that the potential
for conflicts of interest or unfair
competition is mitigated by these
provisions.
With respect to the ownership of BOX
Exchange, the Commission notes that no
BOX Exchange Member will own in
excess of 40% of the Exchange’s
Economic Units (20% if an Exchange
Facility Participant) and 20% of the
Exchange’s Voting Units. The board
composition of the Exchange will not
change. And although BOX Holdings is
not independently responsible for
regulation of BOX Options, its activities
with respect to the operation of BOX
Options must be consistent with, and
not interfere with, the self-regulatory
obligations of BOX Exchange. Pursuant
to the transaction, with respect to the
ownership of BOX Holdings, the voting
power of IB, a BOX Options Participant,
would remain at 20.00%. Further, while
MXUS2’s voting power in BOX
Holdings would increase, MXUS2’s
power to appoint directors would
remain unchanged.43 The Commission
accordingly believes that the proposed
transfers are in compliance with
requirements in the BOX Exchange LLC
Agreement and the BOX Holdings LLC
Agreement and provisions designed to
help maintain BOX Exchange’s
regulatory function.
IV. Conclusion

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It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,44 that the
proposed rule change (SR–BOX–2021–
19), as modified by Amendment No. 1,
be, and hereby is, approved.
each to submit to the jurisdiction of the US federal
courts and the Commission).
42 See, e.g., Article 4.12(b) of the BOX Holdings
LLC Agreement (requiring BOX Holdings and its
Members to cooperate with BOX Exchange and the
Commission and to comply with federal securities
laws); Article 11.1 of the BOX Holdings LLC
Agreement (requiring the books and records of BOX
Holdings and its Members to be subject to
inspection and copying by the Exchange and the
Commission at all times); and Article 18.6(b) of the
BOX Holdings LLC Agreement (deeming BOX
Holdings, its Members and officers, directors,
employees and agents of each to submit to the
jurisdiction of the US federal courts, the
Commission, and BOX Exchange).
43 MXUS2 (through MXUS1) is a wholly-owned
subsidiary of the Bourse de Montreal (‘‘Bourse’’)
and the Bourse is a wholly-owned subsidiary of
TMX Group Limited. Each of MXUS1, Bourse, and
TMX Group Limited is a party to the BOX Exchange
LLC Agreement and BOX Holdings LLC Agreement
and has all the rights and responsibilities of the
Members of BOX Exchange and BOX Holdings. See
Amendment No 1, supra note 7.
44 Id.
45 17 CFR 200.30–3(a)(12).

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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.45
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–27427 Filed 12–17–21; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–232, OMB Control No.
3235–0225]

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 17f–4

Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 350l-3520) (the ‘‘Paperwork
Reduction Act’’), the Securities and
Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Section 17(f) (15 U.S.C. 80a–17(f))
under the Investment Company Act of
1940 (the ‘‘Act’’) 1 permits registered
management investment companies and
their custodians to deposit the securities
they own in a system for the central
handling of securities (‘‘securities
depositories’’), subject to rules adopted
by the Commission.
Rule 17f–4 (17 CFR 270.17f–4) under
the Act specifies the conditions for the
use of securities depositories by funds 2
and their custodians.
The Commission staff estimates that
794 respondents (including an
estimated 768 funds that may deal
directly with a securities depository, an
estimated 13 custodians, including 7
sub-custodians and 13 possible
securities depositories) 3 are subject to
1 15

U.S.C. 80a.
amended in 2003, rule 17f–4 permits any
registered investment company, including a unit
investment trust or a face-amount certificate
company, to use a security depository. See Custody
of Investment Company Assets With a Securities
Depository, Investment Company Act Release No.
25934 (Feb. 13, 2003) (68 FR 8438 (Feb. 20, 2003)).
The terms ‘‘fund’’ or ‘‘fund series’’ are used in this
Notice to mean a registered investment company.
3 The Commission estimates that, as permitted by
the rule, an estimated 4% of all funds may deal
directly with a securities depository. The
Commission estimates that, as permitted by the
2 As

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the requirements in rule 17f–4. To the
extent that Rule 17f–4(c)(4) provides
that a sub-custodian can be qualified as
a custodian for purposes of Rule 17f–4,
sub-custodians are included as
‘‘custodians’’ in the estimates of burden
hours and costs. While the rule is
elective, most, if not all, funds use
depository custody arrangements.4
Rule 17f–4 contains two general
conditions. First, a fund’s custodian
must be obligated, at a minimum, to
exercise due care in accordance with
reasonable commercial standards in
discharging its duty as a securities
intermediary to obtain and thereafter
maintain financial assets. If the fund
deals directly with a depository, the
depository’s contract or written rules for
its participants must provide that the
depository will meet similar obligations.
All funds that deal directly with
securities depositories in reliance on
rule 17f–4 should have either modified
their contracts with the relevant
securities depository, or negotiated a
modification in the securities
depository’s written rules when the rule
was amended. Therefore, we estimate
there is no ongoing burden associated
with this collection of information.5
Second, the custodian must provide,
promptly upon request by the fund,
such reports as are available about the
internal accounting controls and
financial strength of the custodian. If a
fund deals directly with a depository,
the depository’s contract with or written
rules for its participants must provide
that the depository will provide similar
financial reports. Custodians and
depositories usually transmit financial
reports to funds twice each year.6 The
rule, an estimated 4% of all funds may deal directly
with a securities depository. The number of
custodians, including the number of sub-custodians
is estimated from information collected from Form
N–CENs filed with the Commission as of October
15, 2021. In addition, the Commission staff
estimates the number of possible securities
depositories by adding the 12 Federal Reserve
Banks and one active registered clearing agency.
The Commission staff recognizes that not all of
these entities may currently be acting as a securities
depository for fund securities.
4 Based on responses to Item C.12 of Form N–CEN
(17 CFR 274.101), approximately 96 percent of
funds’ custodians maintain some or all fund
securities in a securities depository pursuant to rule
17f–4.
5 The Commission staff assumes that new funds
relying on 17f–4 would choose to use a custodian
instead of directly dealing with a securities
depository because of the high costs associated with
maintaining an account with a securities
depository. Thus, new funds would not be subject
to this condition.
6 The estimated 13 custodians would handle
requests for reports from 9,984 fund clients
(approximately 768 fund clients per custodian) and
the depositories from the remaining 768 funds that
choose to deal directly with a depository. It is our
understanding based on staff conversations with

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Federal Register / Vol. 86, No. 241 / Monday, December 20, 2021 / Notices
Commission staff estimates that 13
custodians, including 7 sub-custodians,
spend approximately 2,330 hours (by
support staff) annually in transmitting
such reports to funds.7 In addition,
approximately 768 funds (i.e., four
percent of all funds) deal directly with
a securities depository and may request
periodic reports from their depository.
Commission staff estimates that
depositories spend approximately 179
hours (by support staff) annually
transmitting reports to the 768 funds.8
The total annual burden estimate for
compliance with rule 17f–4’s reporting
requirement is therefore 2,509 hours.9
If a fund deals directly with a
securities depository, rule 17f–4
requires that the fund implement
internal control systems reasonably
designed to prevent an unauthorized
officer’s instructions (by providing at
least for the form, content, and means of
giving, recording, and reviewing all
officers’ instructions). All funds that
seek to rely on rule 17f–4 should have
already implemented these internal
control systems when the rule was
amended. Therefore, there is no ongoing
burden associated with this collection of
information requirement.10
Based on the foregoing, the
Commission staff estimates that the total
annual hour burden of the rule’s
collection of information requirements
is 2,509 hours.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act. This estimate
is not derived from a comprehensive or
even representative survey or study of
the costs of Commission rules.
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 will
have practical utility; (b) the accuracy of
the Commission’s estimate of the
burden of the collections of information;
(c) ways to enhance the quality, utility,
and clarity of the information collected;
and (d) ways to minimize the burdens
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.
Please direct your written comments
to David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O John R.
Pezzullo, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
[email protected].
Dated: December 15, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–27500 Filed 12–17–21; 8:45 am]
BILLING CODE 8011–01–P

SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2021–0048]

Rate for Assessment on Direct
Payment of Fees to Representatives in
2022
AGENCY:

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industry representatives that custodians and
depositories transmit these reports to clients in the
normal course of their activities as a good business
practice regardless of whether they are requested.
Therefore, for purposes of this PRA estimate, the
Commission staff assumes that custodians transmit
the reports to all fund clients.
7 (9.984 fund clients × 2 reports) = 19,968
transmissions. The staff estimates that each
transmission would take approximately 7 minutes
for a total of approximately 2,330 hours (7 minutes
× 19,968 transmissions).
8 (768 fund clients who may deal directly with a
securities depository × 2 reports) = 1,536
transmissions. The staff estimates that each
transmission would take approximately 7 minutes
for a total of approximately 179 hours (7 minutes
× 1,536 transmissions).
9 2,330 hours for custodians and 179 hours for
securities depositories.
10 The Commission staff assumes that new funds
relying on 17f–4 would choose to use a custodian
instead of directly dealing with a securities
depository because of the high costs associated with
maintaining an account with a securities
depository. Thus new funds would not be subject
to this condition.

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Michelle King,
Deputy Commissioner for Budget, Finance,
and Management.
[FR Doc. 2021–27474 Filed 12–17–21; 8:45 am]
BILLING CODE 4191–02–P

SURFACE TRANSPORTATION BOARD
Notice.

[Docket No. AB 1073 (Sub-No. 1X)]

We are announcing the
assessment percentage rate under the
Social Security Act (Act) is 6.3 percent
for 2022.
FOR FURTHER INFORMATION CONTACT:
Jeffrey C. Blair, Associate General
Counsel for Program Law, Office of the
General Counsel, Social Security
Administration, 6401 Security
Boulevard, Baltimore, MD 21235–6401.
Phone: (410) 965–3157, email Jeff.Blair@
ssa.gov.
SUPPLEMENTARY INFORMATION: A
claimant may appoint a qualified
individual as a representative to act on
his or her behalf in matters before the
Social Security Administration (SSA). If
the claimant is entitled to past-due
benefits and was represented either by
an attorney or by a non-attorney
representative who has met certain
SUMMARY:

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prerequisites, the Act provides that we
withhold up to 25 percent of the pastdue benefits and use that money to pay
the representative’s approved fee
directly to the representative.
When we pay the representative’s
approved fee directly to the
representative, we must collect from
that fee payment an assessment to
recover the costs we incur in
determining and paying representatives’
fees. The Act provides that the
assessment we collect will be the lesser
of two amounts: A specified dollar limit;
or the amount determined by
multiplying the fee we are paying by the
assessment percentage rate.1
The Act initially set the dollar limit
at $75 in 2004 and provides that the
limit will be adjusted annually based on
changes in the cost-of-living.2 Currently,
the maximum dollar limit for the
assessment is $104, as we announced in
the Federal Register on October 22,
2021 (86 FR 58715, 58716).
The Act requires us each year to set
the assessment percentage rate at the
lesser of 6.3 percent or the percentage
rate necessary to achieve full recovery of
the costs we incur to determine and pay
representatives’ fees.3
Based on the best available data, we
have determined that the current rate of
6.3 percent will continue for 2022. We
will continue to review our costs for
these services on a yearly basis.

Social Security Administration

(SSA).
ACTION:

72025

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Alabama & Florida Railway Co., Inc.—
Abandonment Exemption—in Geneva,
Coffee, and Covington Counties, Ala.
Alabama & Florida Railway Co., Inc.
(A&F), has filed a verified notice of
exemption under 49 CFR part 1152
subpart F—Exemption Abandonments
to abandon approximately 42.9 miles of
rail line between milepost 581.3 at
Andalusia, Ala., and milepost 624.2 at
Geneva, Ala. (the Line). The Line
traverses U.S. Postal Service Zip Codes
36340, 36420, 36421, 36453, 36467, and
36477.
A&F certified that: (1) No local traffic
has moved over the Line for at least two
1 42

U.S.C. 406(d), 406(e), and 1383(d)(2).
U.S.C. 406(d)(2)(A) and 1383(d)(2)(C)(ii)(I).
3 42 U.S.C. 406(d)(2)(B)(ii) and
1383(d)(2)(C)(ii)(II).
2 42

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