Notice2022-01617
Submission for OMB Review; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 27, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 18 (Thursday, January 27, 2022)</title>
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[Federal Register Volume 87, Number 18 (Thursday, January 27, 2022)]
[Notices]
[Pages 4298-4299]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01617]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-792; OMB Control No. 3235-0739]
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
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
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'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
previously approved collection of information provided for in the
following: 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)).
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. 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-
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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.
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: <a href="http://www.reginfo.gov">www.reginfo.gov</a>. 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
to (i) ><a href="/cdn-cgi/l/email-protection#c9848b91e786848be786809b88e79a8c8a96adacbaa296a6afafa0aaacbb89a6a4abe7aca6b9e7aea6bf"><span class="__cf_email__" data-cfemail="511c13097f1e1c137f1e1803107f0214120e3534223a0e3e373738323423113e3c337f343e217f363e27">[email protected]</span></a> < 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: <a href="/cdn-cgi/l/email-protection#7f2f2d3e20321e16131d10073f0c1a1c51181009"><span class="__cf_email__" data-cfemail="d48486958b99b5bdb8b6bbac94a7b1b7fab3bba2">[email protected]</span></a>. Comments must be
submitted to OMB within 30 days of this notice.
Dated: January 24, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-01617 Filed 1-26-22; 8:45 am]
BILLING CODE 8011-01-P
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