Notice2022-00587
Proposed Collection; Comment Request; Extension: Order Granting a Conditional Exemption Under the Securities Exchange Act of 1934 From the Confirmation Requirements of Exchange Act Rule 10b-10(a) for Certain Transactions in Money Market Funds
Primary source
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Published
January 13, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 9 (Thursday, January 13, 2022)</title>
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[Federal Register Volume 87, Number 9 (Thursday, January 13, 2022)]
[Notices]
[Pages 2198-2199]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00587]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-792; OMB Control No. 3235-0739]
Proposed Collection; Comment Request; Extension: Order Granting a
Conditional Exemption Under the Securities Exchange Act of 1934 From
the Confirmation Requirements of Exchange Act Rule 10b-10(a) for
Certain Transactions in Money Market Funds
Upon Written Request, Copies Available From: U.S. 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 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in the Order Granting a
Conditional Exemption under the Securities Exchange Act of 1934 from
the Confirmation Requirements of Exchange Act Rule 10b-10(a) for
Certain Transactions in Money Market Funds (17 CFR 240.10b-10(a)). The
Commission plans to submit this existing collection of information to
the Office of Management and Budget (``OMB'') for extension and
approval.
[[Page 2199]]
Rule 10b-10 under the Securities Exchange Act of 1934 (``Exchange
Act'') (15 U.S.C. 78a et seq.) generally requires broker-dealers to
provide customers with specified information relating to their
securities transactions at or before the completion of the
transactions. Exchange Act Rule 10b-10(b), however, provides an
exception from this requirement for certain transactions in money
market funds that attempt to maintain a stable net asset value when no
sales load or redemption fee is charged. The exception permits broker-
dealers to provide transaction information to money market fund
shareholders on a monthly, rather than immediate, basis, subject to the
conditions. Amendments to Rule 2a-7 (17 CFR 270.2a-7) of the Investment
Company Act of 1940 (``Investment Company Act'') (15 U.S.C. 80a-1 et
seq.) among other things, means, absent an exemption, broker-dealers
would not be able to continue to rely on the exception under Exchange
Act Rule 10b-10(b) for transactions in money market funds operating in
accordance with Investment Company Act Rule 2a-7(c)(1)(ii).\1\
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\1\ See generally Money Market Fund Reform; Amendments to Form
PF, Securities Act Release No. 9408, Investment Advisers Act Release
No. 3616, Investment Company Act Release No. 30551 (June 5, 2013),
78 FR 36834, 36934 (June 19, 2013); see also Exchange Act Rule 10b-
10(b)(1), 17 CFR 240.10b-10(b)(1) (limiting alternative monthly
reporting to money market funds that attempt to maintain a stable
NAV).
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In 2015, the Commission issued an Order Granting a Conditional
Exemption under the Securities Exchange Act of 1934 From The
Confirmation Requirements of Exchange Act Rule 10b-10(a) For Certain
Transactions In Money Market Funds (``Order'') \2\ which allows broker-
dealers, subject to certain conditions, to provide transaction
information to investors in any money market fund operating pursuant to
Investment Company Act Rule 2a-7(c)(1)(ii) on a monthly basis in lieu
of providing immediate confirmations as required under Exchange Act
Rule 10b-10(a) (``the Exemption''). Accordingly, to be eligible for the
Exemption, a broker-dealer must (1) provide an initial written
notification to the customer of its ability to request delivery of
immediate confirmations consistent with the written notification
requirements of Exchange Act Rule 10b-10(a), and (2) not receive any
such request to receive immediate confirms from the customer.
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\2\ See Order Granting a Conditional Exemption Under the
Securities Exchange Act of 1934 From the Confirmation Requirements
of Exchange Act Rule 10b-10(a) for Certain Transactions in Money
Market Funds, Exchange Act Release No. 34-76480 (Nov. 19, 2015), 80
FR 73849 (Nov. 25, 2015).
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As of December 31, 2020, the Commission estimates there are
approximately 154 broker-dealers that clear customer transactions or
carry customer funds and securities who would be responsible for
providing customer confirmations. The Commission estimates that the
cost of the ongoing notification requirements would be minimal,
approximately 5% of the initial burden which was previously estimated
to be 36 hours per broker-dealer, or approximately 1.8 hours per
broker-dealer per year, to provide ongoing notifications, or a total
burden of 277 hours annually for the 154 carrying broker-dealers.
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the Commission's estimate
of the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information to be
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 in
writing within 60 days of this publication.
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, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to:
<a href="/cdn-cgi/l/email-protection#d18183908e9cb0b8bdb3bea991a2b4b2ffb6bea7"><span class="__cf_email__" data-cfemail="5d0d0f1c02103c34313f32251d2e383e733a322b">[email protected]</span></a>.
Dated: January 10, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-00587 Filed 1-12-22; 8:45 am]
BILLING CODE 8011-01-P
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