30 Day Notice

3235-0540.pdf

Rule 17a-25, Electronic Submission of Securities Trading Data by Exchange Members, Brokers, and Dealers.

30 Day Notice

OMB: 3235-0540

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Federal Register / Vol. 87, No. 157 / Tuesday, August 16, 2022 / Notices
analysis, and conditions, please refer to
Applicants’ first amended and restated
application, dated July 20, 2022, which
may be obtained via the Commission’s
website by searching for the file number
at the top of this document, or for an
Applicant using the Company name
search field, on the SEC’s EDGAR
system. The SEC’s EDGAR system may
be searched at, http://www.sec.gov/
edgar/searchedgar/legacy/
companysearch.html. You may also call
the SEC’s Public Reference Room at
(202) 551–8090.
For the Commission, by the Division of
Investment Management, under delegated
authority.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–17524 Filed 8–15–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–482, OMB Control No.
3235–0540]

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Submission for OMB Review;
Comment Request; Extension: Rule
17a–25
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.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the existing collection of
information provided for in Rule 17a–25
(17 CFR 204.17a–25) under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Paragraph (a)(1) of Rule 17a–25
requires registered broker-dealers to
electronically submit securities
transaction information, including
identifiers for prime brokerage
arrangements, average price accounts,
and depository institutions, in a
standardized format when requested by
the Commission staff. In addition,
Paragraph (c) of Rule 17a–25 requires
broker-dealers to submit, and keep
current, contact person information for
electronic blue sheets (‘‘EBS’’) requests.
The Commission uses the information
for enforcement inquiries or
investigations and trading
reconstructions, as well as for
inspections and examinations.

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The Commission estimates that it
sends approximately 13,558 electronic
blue sheet requests per year to clearing
broker-dealers that in turn submit an
average 223,057 responses.1 It is
estimated that each broker-dealer that
responds electronically will take 8
minutes, and each broker-dealer that
responds manually will take 11⁄2 hours
to prepare and submit the securities
trading data requested by the
Commission. The annual aggregate hour
burden for electronic and manual
response firms is estimated to be 29,924
(223,057 × 8 ÷ 60 = 29,741 hours) + (122
× 1.5 = 183 hours), respectively.2
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 by
September 15, 2022 to (i)
[email protected]
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: August 10, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–17527 Filed 8–15–22; 8:45 am]
BILLING CODE 8011–01–P

1 A single EBS request has a unique number
assigned to each request (e.g., ’’0900001’’).
However, the number of broker-dealer responses
generated from one EBS request can range from one
to several thousand. EBS requests are sent directly
to clearing firms, as the clearing firm is the
repository for trading data for securities
transactions information provided by the clearing
firm and the correspondent firms. Clearing brokers
respond for themselves and other firms they clear
for. There were 446,113 responses during the 24month period, for an average of 223,057 annual
responses.
2 Few respondents submit manual EBS responses.
The small percentage of respondents that submit
manual responses do so by hand, via email,
spreadsheet, disk, or other electronic media. Thus,
the number of manual submissions (approximately
122 per year) has minimal effect on the total annual
burden hours.

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SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–507, OMB Control No.
3235–0563]

Submission for OMB Review;
Comment Request; Extension: Rule
17a–10
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.) (‘‘PRA’’) the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
Section 17(a) of the Investment
Company Act of 1940 (15 U.S.C. 80a–1
et seq.) (the ‘‘Act’’), generally prohibits
affiliated persons of a registered
investment company (‘‘fund’’) from
borrowing money or other property
from, or selling or buying securities or
other property to or from, the fund or
any company that the fund controls.1
Section 2(a)(3) of the Act defines
‘‘affiliated person’’ of a fund to include
its investment advisers.2 Rule 17a–10
(17 CFR 270.17a–10) permits (i) a
subadviser 3 of a fund to enter into
transactions with funds the subadviser
does not advise but that are affiliated
persons of a fund that it does advise
(e.g., other funds in the fund complex),
and (ii) a subadviser (and its affiliated
persons) to enter into transactions and
arrangements with funds the subadviser
does advise, but only with respect to
discrete portions of the subadvised fund
for which the subadviser does not
provide investment advice.
To qualify for the exemptions in rule
17a–10, the subadvisory relationship
must be the sole reason why section
17(a) prohibits the transaction. In
addition, the advisory contracts of the
subadviser entering into the transaction,
and any subadviser that is advising the
purchasing portion of the fund, must
prohibit the subadvisers from consulting
with each other concerning securities
transactions of the fund, and limit their
responsibility to providing advice with
respect to discrete portions of the fund’s
portfolio.4 This requirement regarding
1 15

U.S.C. 80a–17(a).
U.S.C. 80a–2(a)(3)(E).
3 As defined in rule 17a–10(b)(2). 17 CFR
270.17a–10(b)(2).
4 17 CFR 270.17a–10(a)(2).
2 15

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Federal Register / Vol. 87, No. 157 / Tuesday, August 16, 2022 / Notices

the prohibitions and limitations in
advisory contracts of subadvisors
relying on the rule constitutes a
collection of information under the
PRA.5
The staff assumes that all existing
funds with subadvisory contracts
amended those contracts to comply with
the adoption of rule 17a–10 in 2003,
which conditioned certain exemptions
upon these contractual alterations, and
therefore there is no continuing burden
for those funds.6 However, the staff
assumes that all newly formed
subadvised funds, and funds that enter
into new contracts with subadvisers,
will incur the one-time burden by
amending their contracts to add the
terms required by the rule.
Based on an analysis of fund filings,
the staff estimates that approximately
314 funds enter into new subadvisory
agreements each year.7 Based on
discussions with industry
representatives, the staff estimates that
it will require approximately 3 attorney
hours to draft and execute additional
clauses in new subadvisory contracts in
order for funds and subadvisers to be
able to rely on the exemptions in rule
17a–10. Because these additional
clauses are identical to the clauses that
a fund would need to insert in their
subadvisory contracts to rely on rules
10f–3 (17 CFR 270.10f–3), 12d3–1 (17
CFR 270.12d3–1), and 17e–1 (17 CFR
270.17e–1), and because we believe that
funds that use one such rule generally
use all of these rules, we apportion this
3 hour time burden equally among all
four rules. Therefore, we estimate that
the burden allocated to rule 17a–10 for
this contract change would be 0.75
hours.8 Assuming that all 314 funds that
enter into new subadvisory contracts
each year make the modification to their
contract required by the rule, we
estimate that the rule’s contract
modification requirement will result in
166 burden hours annually, with an
U.S.C. 3501.
of Investment Companies With
Portfolio and Subadviser Affiliates, Investment
Company Act Release No. 25888 (Jan. 14, 2003) [68
FR 3153, (Jan. 22, 2003)]. We assume that funds
formed after 2003 that intended to rely on rule 17a–
10 would have included the required provision as
a standard element in their initial subadvisory
contracts.
7 Based on data from form N–CEN filings, as of
March 2022, there are 12,468 registered funds
(open-end funds, closed-end funds, and exchangetraded funds), 4,870 funds of which have
subadvisory relationships (approximately 39%).
Based on Form N–1A and Form N–2 filings, there
were 806 new registered funds in 2020. 806 new
funds × 39% = 314 funds.
8 This estimate is based on the following
calculation: 3 hours ÷ 4 rules = 0.75 hours.

associated cost of approximately
$107,380.9
The estimate of average burden hours
is made solely for the purposes of the
PRA. The estimate is not derived from
a comprehensive or even a
representative survey or study of the
costs of Commission rules. Complying
with this collection of information
requirement is necessary to obtain the
benefit of relying on rule 17a–10.
Responses 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 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 September 15, 2022 to (i)
[email protected]
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: August 10, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–17528 Filed 8–15–22; 8:45 am]
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9 These estimates are based on the following
calculations: (0.75 hours × 314 portfolios = 236
burden hours); ($455 per hour × 236 hours =
$107,380 total cost). The Commission’s estimates
concerning the wage rates for attorney time are
based on salary information for the securities
industry compiled by the Securities Industry and
Financial Markets Association. The estimated wage
figure is based on published rates for in-house
attorneys, modified to account for a 1,800-hour
work-year and inflation, and multiplied by 5.35 to
account for bonuses, firm size, employee benefits,
and overhead, yielding an effective hourly rate of
$415. See Securities Industry and Financial Markets
Association, Report on Management & Professional
Earnings in the Securities Industry 2013.

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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95463; File No. SR–IEX–
2022–05]

Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Add a New
Order Type That Pegs to the ContraSide Primary Quote, With the Option of
Using a Passive Offset Amount
August 10, 2022.

Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b-4 thereunder,2
notice is hereby given that on August 8,
2022, 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, 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 the Substance
of the Proposed Rule Change
Pursuant to the provisions of Section
19(b)(1) under the Act,3 and Rule 19b–
4 thereunder,4 IEX is filing with the
Commission a proposed rule change to
add a new order type (a ‘‘Market Peg’’
order) that pegs to the contra-side
primary quote, with the option of using
a passive offset amount.5 The Exchange
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.
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
1 15

U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(1).
4 17 CFR 240.19b–4.
5 The contra-side primary quote is the national
best offer for a buy order or the national best bid
for a sell order, as set forth in Rule 600(b) of
Regulation NMS under the Act, determined as set
forth in IEX Rule 11.410(b). See IEX Rule 1.160(u).
6 15 U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4.
2 17

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