Federal Register 30-Day Notice

10960

Federal Register / Vol. 90, No. 39 / Friday, February 28, 2025 / Notices

For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025–03233 Filed 2–27–25; 8:45 am]
BILLING CODE 8011–01–P

markets.cboe.com/us/equities/
regulation/rule_filings/edga/ and on the
Commission’s website at https://
www.sec.gov/rules-regulations/selfregulatory-organization-rulemaking/
national-securities-exchanges?file_
number=SR-CboeEDGA-2025-003.

For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025–03235 Filed 2–27–25; 8:45 am]
BILLING CODE 8011–01–P

II. Solicitation of Comments
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–102479; File No. SR–
CboeEDGA–2025–003]

Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend the
Market Data Section of Its Fee
Schedule To Adopt a New Fee Waiver
for Uncontrolled External Distributors
February 24, 2025.

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 February
13, 2025, Cboe EDGA Exchange, Inc.
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Item I below,
which Item has been substantially
prepared by the Exchange. The
Exchange has designated this proposal
for immediate effectiveness pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f) thereunder.4
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
The Exchange proposes to amend the
Market Data section of its Fee Schedule
to adopt a new fee waiver for
Uncontrolled External Distributors.
The proposed rule change, including
the Exchange’s statement of the purpose
of, and statutory basis for, the proposed
rule change, is available on the
Exchange’s website at http://

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6 17

CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f). 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 will institute proceedings to determine
whether the proposed rule change should be
approved or disapproved.

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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.5
Comments may be submitted
electronically by using the
Commission’s internet comment form
(https://www.sec.gov/rules-regulations/
self-regulatory-organizationrulemaking/national-securitiesexchanges?file_number=SR-CboeEDGA2025-003) or by sending an email to
[email protected]. Please include
file number SR–CboeEDGA–2025–003
on the subject line. Alternatively, paper
comments may be sent to Secretary,
Securities and Exchange Commission,
100 F Street NE, Washington, DC
20549–1090. All submissions should
refer to file number SR–CboeEDGA–
2025–003. 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 (https://www.sec.gov/rulesregulations/self-regulatory-organizationrulemaking/national-securitiesexchanges?file_number=SR-CboeEDGA2025-003). Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–CboeEDGA–2025–003 and should
be submitted on or before March 21,
2025.
5 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 a.m. and 3 p.m.
Copies of the filing also will be available for
inspection and copying at the principal office of the
Exchange.

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Fmt 4703

Sfmt 4703

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

Submission for OMB Review;
Comment Request; Extension: Rule
17f–4
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. 3501–3520) (the ‘‘Paperwork
Reduction Act’’), the Securities and
Exchange Commission (the
‘‘Commission’’) has submitted to the
Office of Management and Budget a
request for extension of the previously
approved collection of information
discussed below.
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
639 respondents (including an
estimated 611 active funds that may
deal directly with a securities
depository, an estimated 15 custodians
and sub-custodians (comprising 7
custodians and 8 sub-custodians), and
13 possible securities depositories) 3 are
6 17

CFR 200.30–3(a)(12).
U.S.C. 80a.
2 As 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 term ‘‘fund’’ or ‘‘fund series’’ is used in this
Notice to mean a registered investment company.
3 The estimates regarding the number of funds
that deal directly with a securities depository, and
the number of custodians and sub-custodians, are
derived from Form N–CEN filings received through
September 30, 2024. In addition, the Commission
1 15

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Federal Register / Vol. 90, No. 39 / Friday, February 28, 2025 / Notices

khammond on DSK9W7S144PROD with NOTICES

subject to 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
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 these
entities may currently be acting as a securities
depository for fund securities.
4 Based on the Commission staff’s historical
experience, most, if not all funds use depository
custody arrangements. For purposes of estimating
the burden of the rule, we assume a fund’s
custodian or sub-custodian will deal with a
securities depository in those cases where a fund
does not deal directly with a securities depository
itself.
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 Based on Form N–CEN data received as of
September 30, 2024, the Commission staff estimates
that there are 13,498 funds, 611 of which deal
directly with a securities depository. Accordingly,
the estimated 15 custodians would handle requests
for reports from 12,887 funds (approximately 859
fund clients per custodian) and the depositories
from the remaining 611 funds that choose to deal
directly with a depository. It is our understanding

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Commission staff estimates that 15
custodians spend approximately 3,005
hours (by support staff) annually in
transmitting such reports to funds.7 In
addition, approximately 611 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 611 funds.8
The total annual burden estimate for
compliance with rule 17f–4’s reporting
requirement is therefore 3,148 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 3,148 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 OMB
Control Number.

10961

Written comments are invited on: (a)
whether this collection of information is
necessary for the proper performance of
the functions of the agency, including
whether the information will have
practical utility; (b) the accuracy of the
agency’s estimate of the burden imposed
by 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.
The public may view and comment
on this information collection request
at: https://www.reginfo.gov/public/do/
PRAViewICR?ref_nbr=202412-3235-009
or send an email comment to
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov within 30 days of the day
after publication of this notice by March
31, 2025.
Dated: February 24, 2025.
Sherry Haywood,
Assistant Secretary.
[FR Doc. 2025–03226 Filed 2–27–25; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–102480; File No. SR–
CboeEDGX–2025–009]

Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend the
Market Data Section of Its Fee
Schedule To Adopt a New Fee Waiver
for Uncontrolled External Distributors
February 24, 2025.

based on staff conversations with 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 (12,887 fund clients × 2 reports/year) = 25,754
transmissions per year. The staff estimates that each
transmission would take approximately 7 minutes
for a total of approximately 3,005 hours (7 minutes
× 25,754 transmissions/60 minutes/hour).
8 (611 funds who may deal directly with a
securities depository × 2 reports/year) = 1,222
transmissions per year. The staff estimates that each
transmission would take approximately 7 minutes
for a total of approximately 143 hours (7 minutes
× 1,222 transmissions/60 minutes/hour).
9 3,005 hours for custodians and 143 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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Sfmt 4703

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 February
13, 2025, Cboe EDGX Exchange, Inc.
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Item I below,
which Item has been substantially
prepared by the Exchange. The
Exchange has designated this proposal
for immediate effectiveness pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f) thereunder.4
1 15

U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f). 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
2 17

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Continued

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