60 Day Notice

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Federal Register / Vol. 87, No. 132 / Tuesday, July 12, 2022 / Notices

to those offered by other competitor
options exchanges.25 The Exchange is
offering the Intra-Day Volume Summary
in order to keep pace with changes in
the industry and evolving customer
needs, and believes the data product
will contribute to robust competition
among national securities exchanges. At
least eight other U.S. options exchanges
offer a market data product that is
substantially similar to the Exchange’s
offering. As a result, the Exchange
believes this proposed rule change
permits fair competition among national
securities exchanges.
Furthermore, the Exchange operates
in a highly competitive environment,
and its ability to price Intra-Day Volume
Summary is constrained by competition
among exchanges that offer similar data
products to their customers. As
discussed above, there are currently a
number of similar products available to
market participants and investors. At
least eight other U.S. options exchanges
offer a market data product that is
substantially similar to the Exchange’s
offering, which the Exchange must
consider in its pricing discipline in
order to compete effectively.26 For
example, proposing fees that are
excessively higher than established fees
for similar data products would simply
serve to reduce demand for the
Exchange’s data product, which as
discussed, market participants are under
no obligation to utilize or purchase. In
this competitive environment, potential
purchasers are free to choose which, if
any, similar product to purchase to
satisfy their need for market
information. As a result, the Exchange
believes this proposed rule change
permits fair competition among national
securities exchanges.
The Exchange does not believe the
proposed rule change would cause any
unnecessary or inappropriate burden on
intramarket competition. Particularly,
the proposed fees would apply
uniformly to any subscriber, in that the
Exchange would not differentiate
between subscribers that purchase the
Intra-Day Volume Summary and all
subscribers would receive the same
information in the data feed. The
Exchange believes the proposed fees are
set at a modest level that would allow
interested subscribers to purchase such
data based on their business needs.

C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 27 of the Act and
subparagraph (f)(2) of Rule 19b–4 28
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 29 of the Act to
determine whether the proposed rule
change 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–
NYSEArca–2022–37 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–NYSEArca–2022–37. 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/
27 15

U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
29 15 U.S.C. 78s(b)(2)(B).

25 Id.
26 See

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
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–NYSEArca–2022–37 and
should be submitted on or before
August 2, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–14755 Filed 7–11–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–815, OMB Control No.
3235–0769]

Proposed Collection; Comment
Request; Extension: Rule 139b
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 the
Securities and Exchange Commission
(the ‘‘Commission’’) has, in accordance
with the Paperwork Reduction Act of
1995 (Public Law 104–13, 44 U.S.C.
3501 et seq.) (‘‘PRA’’), is soliciting
comments on the collection of
information associated with the Rule
139b (17 CFR 230.139b) under the
Securities Act of 1933 (15 U.S.C. 77a et
seq.) (‘‘Securities Act’’) that was
adopted by the Commission on

28 17

supra note 11.

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CFR 200.30–3(a)(12).

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jspears on DSK121TN23PROD with NOTICES1

Federal Register / Vol. 87, No. 132 / Tuesday, July 12, 2022 / Notices
November 30, 2018.1 The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
As directed by the Fair Access to
Investment Research Act of 2017 (Pub.
L. 115–66, 131 Stat. 1196 (2017) (the
‘‘FAIR Act’’), the Commission adopted
rule 139b under the Securities Act to
extend the safe harbor under rule 139 to
a ‘‘covered investment fund research
report.’’ Specifically, rule 139b provides
a safe harbor to a broker-dealer who
publishes or distributes in the regular
course of its business research reports
concerning one or more ‘‘covered
investment fund(s)’’ while participating
in the distribution of a covered
investment fund’s securities.
In the Adopting Release, the
Commission adopted the provision that
rule 139b include a standardized
performance disclosure requirement.
The Commission believes that
standardized performance presentation
is an appropriate requirement because
investors tend to consider fund
performance a significant factor in
evaluating or comparing investment
companies, and the requirement
addresses potential investor confusion if
a communication were not easily
recognizable as research as opposed to
an advertising prospectus or
supplemental sales literature. Rule 139b
requires that research reports about
open-end funds that include
performance information must present it
in accordance with paragraphs (d), (e),
and (g) of rule 482. Rule 139b also
requires that research reports about
closed-end funds that include
performance information must present it
in accordance with instructions to item
4.1(g) of Form N–2. Performance
measures calculated by broker-dealers
are not required to be kept confidential
and there is no mandatory retention
period. The Commission anticipates that
compliance with these performance
measures for each fund discussed in a
research report, and for which the
performance measures apply, would
increase compliance costs for brokerdealers seeking to publish or distribute
a covered investment fund research
report.
It is difficult to provide estimates of
the burdens and costs for those brokerdealers that will include performance
information in a rule 139b research
report. As discussed in the Adopting
Release, this is difficult to estimate
because current data collected does not
1 See Release No. 33–10580 (Nov. 30, 2018) [83
FR 64180 (Dec. 13, 2018)] (‘‘Adopting Release’’).
Rule 139b became effective on January 14, 2019.

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reflect the affiliate exclusion, does not
include the entire universe of covered
investment funds, and it is uncertain
what percentage of communications
currently filed as rule 482 advertising
prospectuses (or rule 34b-1
supplemental sales materials) will
instead be published in reliance of rule
139b, as covered investment fund
research reports.2 For purposes of the
PRA, we estimate that 10% of the rule
482 and rule 34b–1 communications
currently filed by broker-dealers with
FINRA (approximately 48,341) could be
considered as rule 139b covered
investment fund research reports. We
estimate that broker-dealers will publish
annually 4,834 (10% of 48,341) covered
investment fund research reports.
Moreover, we assume for purposes of
the PRA that all estimated rule 139b
research reports will include fund
performance information. We further
estimate that 1,169 broker-dealers
would likely be respondents to the
collection of information with a
frequency of 4.1 responses per year.3
Additionally, we estimate that each
research report will require 3 hours of
ongoing internal burden hours by a
broker-dealers’ personnel to comply
with the rule 139b collection of
information requirements, which for
each broker-dealer is estimated to be
12.3 internal burden hours.4
Accordingly, we estimate that the
standardized performance presentation
requirements will result in an average
12.3 annual hour burden per brokerdealer.
In sum, we estimate that rule 139b’s
requirements will impose a total annual
internal hour burden of 14,379 hours on
broker-dealers.5 We do not think there
is an external cost burden associated
with this collection of information.
This information collection is subject
to the PRA and responses to this
collection of information requirement
would not be mandatory for brokerdealers seeking to rely upon rule 139b,
but would be necessary for those brokerdealers that would like to provide
performance information in their
2 See Adopting Release, supra note 1, n. 413 and
accompanying paragraph.
3 From information provided by FINRA, for the
period January 1, 2021 through December 31, 2021,
there were an aggregate of 48,341 filings that were
coded either as Rule 482 or Rule 34b1 filings.
Furthermore, for the period January 1, 2021 through
December 31, 2021, the Commission estimates that
there were 4,834 covered investment fund research
reports/1,169 broker-dealers = 4.1 annual responses
per broker-dealer.
4 4.1 annual responses per broker-dealer × 3
internal burden hours = 12.3 annual internal
burden hours per broker-dealer.
5 12.3 annual internal burden hours * 1,169
broker-dealers.

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covered investment fund research
reports. Responses to the information
collections 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.
Written comments are invited on: (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have 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. Consideration will be given
to comments and suggestions submitted
by September 12, 2022.
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, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
[email protected].
Dated: July 6, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–14745 Filed 7–11–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95203; File No. SR–
CboeEDGX–2022–030]

Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fee Schedule
July 6, 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 July 1,
2022, Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
1 15
2 17

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U.S.C. 78s(b)(1).
CFR 240.19b–4.

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