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Federal Register / Vol. 91, No. 207 / Wednesday, October 28, 2026 / Notices

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(2) filed a registration statement
pursuant to Section 12 of the Exchange
Act for a class of its equity securities.
The Commission adopted Form N–54A
(17 CFR 274.53) as the form for
notification of election to be regulated
as a business development company.
The purpose of Form N–54A is to
notify the Commission that the
investment company making the
notification elects to be subject to
Sections 55 through 65 of the
Investment Company Act, enabling the
Commission to administer those
provisions of the Investment Company
Act to such companies.
The Commission staff estimates that
on average approximately 25 business
development companies file these
notifications each year.1 Each of those
business development companies need
only make a single filing of Form N–
54A. The Commission staff further
estimates that such business
development companies will each
spend 0.5 hours at a cost of $470.5 per
hour preparing the form, resulting in a
total annual time burden of 12.5 hours.
Based on the estimated wage rate, the
total cost to the business development
company industry of the hour burden
for complying with Form N–54A would
be approximately $5,881.25.
The Commission staff estimates that
there is no additional cost burden
associated with the form other than the
cost of the burdens identified above.
The collection of information under
Form N–54A is mandatory. The
information provided by the form is not
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 and comment
on this information collection request
at: https://www.reginfo.gov/public/do/
PRAViewICR?ref_nbr=202608-3235-012
or email comment to
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov within 30 days of the day
after publication of this notice, by
November 30, 2026.
Dated: October 26, 2026.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026–22002 Filed 10–27–26; 8:45 am]
BILLING CODE 8011–01–P
1 This number is based on the average annual
number of Form N–54A filings with the
Commission from January 1, 2023 through
December 31, 2025.

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SECURITIES AND EXCHANGE
COMMISSION
[OMB Control No. 3235–0222]

Agency Information Collection
Activities; Submission for OMB
Review; Comment Request; Extension:
Rule 17f–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 a
request for extension of the previously
approved collection of information
discussed below.
Rule 17f–1 (17 CFR 270.17f–1) under
the Investment Company Act of 1940
(the ‘‘Act’’) (15 U.S.C. 80a) is entitled:
‘‘Custody of securities with members of
national securities exchanges.’’ Rule
17f–1 provides that any registered
management investment company
(‘‘fund’’) that wishes to place its assets
in the custody of a national securities
exchange member may do so only under
a written contract that must be ratified
initially and approved annually by a
majority of the fund’s board of directors.
The written contract also must contain
certain specified provisions. In addition,
the rule requires an independent public
accountant to examine the fund’s assets
in the custody of the exchange member
at least three times during the fund’s
fiscal year. The rule requires the written
contract and the certificate of each
examination to be transmitted to the
Commission. The purpose of the rule is
to ensure the safekeeping of fund assets.
Commission staff estimate that each
fund makes 1 response and spends an
average of 3.5 hours annually in
complying with the rule’s requirements.
Commission staff estimate that on an
annual basis it takes: (i) 0.5 hours for the
board of directors 1 to review and ratify
the custodial contracts; and (ii) 3 hours
for the fund’s controller to assist the
fund’s independent public auditors in
verifying the fund’s assets.
Approximately 4 funds rely on the rule
1 Estimates of the number of hours are based on
conversations with representatives of mutual funds
that comply with the rule. The actual number of
hours may vary significantly depending on
individual fund assets. The hour burden for rule
17f–1 does not include preparing the custody
contract because that would be part of customary
and usual business practice.

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annually, with a total of 4 responses.2
Thus, the total annual internal hour
burden for rule 17f–1 is approximately
14 hours.3
Funds that rely on rule 17f–1
generally use a lawyer to prepare the
custodial contract for the board’s review
and to transmit the contract to the
Commission. Commission staff estimate
the cost of a lawyer to perform these
tasks for a fund each year is $1,548.4
Funds also must have an independent
public accountant verify the fund’s
assets three times each year and prepare
the certificate of examination.
Commission staff estimates the annual
cost for an independent public
accountant to perform this service is
$11,550.5 Therefore, the total annual
cost burden for a fund that relies on rule
17f–1 would be approximately $13,098.6
As noted above, the staff estimates that
4 funds rely on rule 17f–1 each year, for
an estimated total annualized external
cost burden of $52,392.7
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act and is not
derived from a comprehensive or even
a representative survey or study of the
costs of Commission rules. Compliance
with the collections of information
required by rule 17f–1 is mandatory for
funds that place their assets in the
custody of a national securities
exchange member. 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
2 This estimate is based on a review of Form N–
17f–1 filings over the last three years. In 2023 there
were six unique filers, in 2024 there were three
unique filers, and in 2025 there were four unique
filers. (6 + 3 + 4)/3 = 4.33 funds, rounded down to
an estimated 4 funds. 4 funds × 1 response per filer
= 4 responses.
3 This estimate is based on the following
calculation: (4 respondents × 3.5 hours = 14 hours).
The annual burden for rule 17f–1 does not include
time spent preparing Form N–17f–1. The burden for
Form N–17f–1 is included in a separate collection
of information.
4 This estimate is based on the following
calculation: (2 hours of outside counsel time × $774
= $1,548). To calculate the occupational hourly
rates used in this release, the Commission uses
occupational mean hourly wage data from the
Occupational Employment and Wage Statistics
(‘‘OEWS’’) program of the Bureau of Labor Statistics
(‘‘BLS’’) for ‘‘Securities, Commodity Contracts, and
Other Financial Investments and Related
Activities’’ (‘‘NAICS 523’’).
5 Commission staff estimates that this would
require approximately 35 hours for an accountant
to complete at a cost of approximately $330 per
hour. 35 hours × $330 = $11,550. The occupational
wage rate was derived using wage data from the
OEWS program of BLS for NAICS 523.
6 This estimate is based on the following
calculation: $1,548 + $11,550 = $13,098.
7 This estimate is based on the following
calculation: 4 funds × $13,098 = $52,392.

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Federal Register / Vol. 91, No. 207 / Wednesday, October 28, 2026 / Notices
unless it displays a currently valid
control number.
The public may view and comment
on this information collection request
at: https://www.reginfo.gov/public/do/
PRAViewICR?ref_nbr=202608-3235-011
or email comment to
MBX.OMB.OIRA.SEC_desklowbar;
officercommat;omb.eop.gov within 30
days of the day after publication of this
notice, by November 30, 2026.
Dated: October 26, 2026.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026–22001 Filed 10–27–26; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–106726; File No. 4–930]

Order Under Section 36 of the
Securities Exchange Act of 1934
Granting Conditional Exemptive Relief
Regarding the Treatment of Customer
Margin Under Item 13 and Note F of
Exhibit A to Rule 15c3–3
October 23, 2026.

I. Introduction
A. Overview of the Exemptive Order
On September 18, 2026, Cboe Clear
U.S., LLC (‘‘CCUS’’), a clearing agency
now temporarily registered with the
Securities and Exchange Commission
(‘‘Commission’’) pursuant to Rule
17Ab2–1(c) 1 under the Securities
Exchange Act of 1934 2 (‘‘Exchange
Act’’) for a period of 18 months,3 filed
an application with the Commission
(‘‘Application’’) 4 to obtain an
exemption pursuant to section 36(a)(1) 5
of the Exchange Act, in accordance with
the procedures set forth in Exchange Act
1 17 CFR 240.17Ab2–1(c).

khammond on DSK9W7S144PROD with NOTICE

2 15. U.S.C. 78a et seq.
3 See Exchange Act Rel. No. 34–106723 (October
22, 2026) (‘‘CCUS Temporary Registration Order’’)
(granting CCUS’s request for temporary registration
with an exemption from certain requirements for a
period of 18 months). Pursuant to the CCUS
Temporary Registration Order, CCUS is registered
to provide central counterparty services for cashsettled binary security options, including security
options overlying key performance indicators
reported by certain issuers of stock. Id.
4 Letter from Dale Michaels, Head of Clearing,
CCUS, to Vanessa A. Countryman, Secretary,
Commission (Sept. 18, 2026): See also infra note 9.
5 15 U.S.C. 78mm. Section 36(a)(1) of the
Exchange Act gives the Commission the authority
to exempt any person, security or transaction or any
class or classes of persons, securities or
transactions, conditionally or unconditionally, from
any Exchange Act provision by rule, regulation or
order, to the extent that the exemption is necessary
or appropriate in the public interest and consistent
with the protection of investors.

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Rule 0–12.6 Specifically, CCUS
requested exemptive relief on behalf of
broker-dealers that are CCUS clearing
members (‘‘Clearing Members’’) from
the limitation in Item 13 and Note F of
Exhibit A to Rule 15c3–3 7 that confines
the Item 13 debit to the amount of
margin required and on deposit with the
Options Clearing Corporation (‘‘OCC’’)
for all option contracts written or
purchased in customer accounts. This
would afford Clearing Members the
same treatment for margin required and
on deposit at CCUS for purposes of the
reserve computation requirements
under Item 13 and Note F of Rule 15c3–
3a as is currently afforded to margin
required and on deposit with the OCC.8
On September 25, 2026, the
Commission published a notice of an
application for an exemption and
requested comment regarding the
Application and the proposed
conditions set forth therein.9 The Notice
was published in the Federal Register
on September 29, 2026.10 The
Commission received one comment on
the Notice of an Application.11 For the
reasons discussed below, this order
grants Clearing Members conditional
exemptive relief from the limitation in
Item 13 and Note F of 15c3–3a that
confines the Item 13 debit to margin
required and on deposit with the OCC
for all option contracts written or
purchased in customer accounts.
B. Overview of Rule 15c3–3 and Rule
15c3–3a
Rule 15c3–3, the broker-dealer
customer protection rule, requires,
among other things, broker-dealers that
hold customer cash and securities
(‘‘carrying broker-dealers’’) to compute
the net amount of cash owed to
customers under a formula in Rule
15c3–3a (‘‘customer reserve
computation’’).12 Generally, carrying
broker-dealers must perform this
customer reserve computation and make
6 17 CFR 240.0–12. Exchange Act Rule 0–12 sets
forth the procedures for filing applications for
orders for exemptive relief pursuant to section 36.
7 17 CFR 240.15c3–3a (‘‘Rule 15c3–3a’’).
8 See Application, at 1.
9 See Notice of an Application of Cboe Clear U.S.,
LLC for an Exemption Pursuant to Section 36 of the
Securities Exchange Act of 1934 Regarding the
Treatment of Customer Margin Under Item 13 and
Note F of Exhibit A to Rule 15c3–3, Exchange Act
Release No. 106493 (Sep. 25, 2026), 91 FR 61528
(Sep. 29, 2026) (‘‘Notice of an Application’’). The
Application is attached as an appendix to the
Notice of an Application and is available at: https://
www.sec.gov/files/rules/other/2026/34-106493.pdf.
10 Id.
11 See Letter from Shawn SN, dated October 13,
2026. The public comment file is available at
https://www.sec.gov/rules-regulations/publiccomments/4-930.
12 17 CFR 240.15c3–3.

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67881

any required deposit into special reserve
bank account daily or weekly. The rule
also requires a carrying broker-dealer to
perform a PAB reserve computation for
the proprietary securities and cash it
holds for other broker-dealers, known as
proprietary accounts of broker-dealers
(‘‘PAB accounts’’).13 Item 13 of the
customer reserve computation in Rule
15c3–3a includes as a debit in the
computation the amount of margin
required and on deposit with OCC for
all option contracts written or
purchased in customer accounts. Note F
to Item 13 states that Item 13 must
include the amount of margin required
and on deposit with the OCC to the
extent such margin is represented by
cash, proprietary qualified securities
and letters of credit collateralized by
customers’ securities.14 Under that
framework, the permitted debit is based
on the margin amount posted by the
broker-dealer to OCC that is calculated
by OCC across all of the broker-dealer’s
customers with listed options (i.e., on an
omnibus basis).
C. Request for Exemptive Relief From
CCUS
In its Application, CCUS requested,
pursuant to section 36(a)(1) of the
Exchange Act, and in accordance with
the procedures set forth in Rule 0–12,
that the Commission issue an order
exempting its Clearing Members from
the limitation in Item 13 and Note F of
Rule 15c3–3a that confines the Item 13
debit to the amount of margin required
and on deposit with OCC for option
contracts written or purchased in
customer accounts. CCUS also requested
that the exemptive relief apply with
respect to the PAB reserve
computation.15 In effect, CCUS is
seeking comparable treatment for its
Clearing Members under the customer
reserve computation with respect to the
margin that is required and on deposit
at CCUS as has been afforded brokerdealers that are clearing members of
OCC.
In support of its request, CCUS stated
that when the Commission adopted Item
13, and Note F thereto, OCC was the
only clearing agency registered with the
Commission to provide central
counterparty services for securities
options. CCUS stated that it does not
13 Broker-dealers use the formula in Rule 15c3–
3a for the purposes of computing the PAB reserve
requirement, except that references to ‘‘accounts,’’
‘‘customer accounts,’’ or ‘‘customers’’ will be
treated as references to PAB accounts. See Note 1
to Rule 15c3–3a. For the purposes of this order,
references to ‘‘accounts,’’ ‘‘customer,’’ or ‘‘customer
accounts’’ will also include ‘‘PAB’’ or ‘‘PAB
accounts.’’
14 See Note F to Rule 15c3–3a.
15 See Application, at 3–4.

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