Notice2023-23978
Submission for OMB Review; Comment Request; Extension: Rule 19b-7 and Form 19b-7
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
October 31, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 209 (Tuesday, October 31, 2023)</title>
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[Federal Register Volume 88, Number 209 (Tuesday, October 31, 2023)]
[Notices]
[Page 74554]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-23978]
[[Page 74554]]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-495, OMB Control No. 3235-0553]
Submission for OMB Review; Comment Request; Extension: Rule 19b-7
and Form 19b-7
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 (``Commission'') has submitted to the Office of Management
and Budget (``OMB'') a request for extension of the previously approved
collection of information discussed below.
The Exchange Act provides a framework for self-regulation under
which various entities involved in the securities business, including
national securities exchanges and national securities associations
(collectively, self-regulatory organizations or ``SROs''), have primary
responsibility for regulating their members or participants. The role
of the Commission in this framework is primarily one of oversight; the
Exchange Act charges the Commission with supervising the SROs and
assuring that each complies with and advances the policies of the
Exchange Act.
The Exchange Act was amended by the Commodity Futures Modernization
Act of 2000 (``CFMA''). Prior to the CFMA, federal law did not allow
the trading of futures on individual stocks or on narrow-based stock
indexes (collectively, ``security futures products''). The CFMA removed
this restriction and provided that trading in security futures products
would be regulated jointly by the Commission and the Commodity Futures
Trading Commission (``CFTC'').
The Exchange Act requires all SROs to submit to the SEC any
proposals to amend, add, or delete any of their rules. Certain entities
(Security Futures Product Exchanges) would be notice-registered
national securities exchanges only because they trade security futures
products. Similarly, certain entities (Limited Purpose National
Securities Associations) would be limited-purpose national securities
associations only because their members trade security futures
products. The Exchange Act, as amended by the CFMA, established a
procedure for Security Futures Product Exchanges and Limited Purpose
National Securities Associations to provide notice of proposed rule
changes relating to certain matters.\1\ Rule 19b-7 and Form 19b-7
implemented this procedure. Effective April 28, 2008, the SEC amended
Rule 19b-7 and Form 19b-7 to require that Form 19b-7 be submitted
electronically.\2\
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\1\ These matters are higher margin levels, fraud or
manipulation, recordkeeping, reporting, listing standards, or
decimal pricing for security futures products; sales practices for
security futures products for persons who effect transactions in
security futures products; or rules effectuating the obligation of
Security Futures Product Exchanges and Limited Purpose National
Securities Associations to enforce the securities laws. See 15
U.S.C. 78s(b)(7)(A).
\2\ See Securities Exchange Act Release No. 57526 (March 19,
2008), 73 FR 16179 (March 27, 2008).
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The collection of information is designed to provide the Commission
with the information necessary to determine, as required by the
Exchange Act, whether the proposed rule change is consistent with the
Exchange Act and the rules thereunder. The information is used to
determine if the proposed rule change should remain in effect or be
abrogated.
The respondents to the collection of information are SROs.\3\ The
estimated total industry burden per year for rule changes, updating and
posting rule changes and updating the online rulebook is 68 burden
hours.\4\ The total estimated internal cost of compliance for a
respondent for legal and paralegal work related to filings is $11,110
per year and the total industry internal cost of compliance is $22,220
per year.\5\ In the proposed extension, there is no change to the
burden hour estimate per respondent. However, there is a decrease in
the total burden hours because the Commission now estimates that there
are two respondents instead of three respondents in 2020 (a decrease of
on respondent). Thus, the net change in estimated total aggregate
burden hours decreased from 102 to 68 (reduction of 34 burden hours).
Similarly, with respect to the internal dollar cost burden of
respondents, the total industry internal dollar costs have decreased
overall due to one less respondent. The total industry internal cost of
compliance decreased from $30, 300 to $22,220.
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\3\ There are currently two Security Futures Product Exchanges
and one Limited Purpose National Securities Association, the
National Futures Association. One of the Security Futures Product
Exchanges, however, is conditionally exempted from filing proposed
rule changes using Form 19b-7. Therefore, there are currently two
respondents to Form 19b-7.
\4\ This estimate is the sum of the total industry (2
respondents) burden hours for rule filings (50 hours), updating and
posting rule changes (2 hours) and updating rules (16 hours).
\5\ This estimate is based on 2 responses x $5,555 per response
equals $11,110 per respondent per year and 2 respondents x $11,110
equals $22,220 or the total industry cost per year.
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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 by November 30, 2023 to (i) <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</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#6d3d3f2c32200c04010f02152d1e080e430a021b"><span class="__cf_email__" data-cfemail="b2e2e0f3edffd3dbded0ddcaf2c1d7d19cd5ddc4">[email protected]</span></a>.
Dated: October 26, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-23978 Filed 10-30-23; 8:45 am]
BILLING CODE 8011-01-P
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