30 Day Notice

Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices
Electronic Comments
• Use the Commission’s internet
comment form (http://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BOX–2020–02 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.

jbell on DSKJLSW7X2PROD with NOTICES

All submissions should refer to File
Number SR–BOX–2020–02. This file
number should be included on the
subject line if email is used. 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 (http://www.sec.gov/
rules/sro.shtml). 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, on business days
between the hours of 10:00 a.m. and
3:00 p.m., located at 100 F Street NE,
Washington, DC 20549. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BOX–2020–02 and should
be submitted on or before February 26,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–02191 Filed 2–4–20; 8:45 am]
BILLING CODE 8011–01–P

35 17

CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–470, OMB Control No.
3235–0529]

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:
Rule 17f–7.

Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3521) (‘‘Paperwork
Reduction Act’’), the Securities and
Exchange Commission (the
‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collections of
information discussed below.
Rule 17f–7 (17 CFR 270.17f–7)
permits a fund under certain conditions
to maintain its foreign assets with an
eligible securities depository, which has
to meet minimum standards for a
depository. The fund or its investment
adviser generally determines whether
the depository complies with those
requirements based on information
provided by the fund’s primary
custodian (a bank that acts as global
custodian). The depository custody
arrangement also must meet certain
conditions. The fund or its adviser must
receive from the primary custodian (or
its agent) an initial risk analysis of the
depository arrangements, and the fund’s
contract with its primary custodian
must state that the custodian will
monitor risks and promptly notify the
fund or its adviser of material changes
in risks. The primary custodian and
other custodians also are required to
agree to exercise at least reasonable care,
prudence, and diligence.
The collection of information
requirements in rule 17f–7 are intended
to provide workable standards that
protect funds from the risks of using
foreign securities depositories while
assigning appropriate responsibilities to
the fund’s primary custodian and
investment adviser based on their
capabilities. The requirement that the
foreign securities depository meet
specified minimum standards is
intended to ensure that the depository is
subject to basic safeguards deemed
appropriate for all depositories. The
requirement that the fund or its adviser
must receive from the primary
custodian (or its agent) an initial risk
analysis of the depository arrangements,

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and that the fund’s contract with its
primary custodian must state that the
custodian will monitor risks and
promptly notify the fund or its adviser
of material changes in risks, is intended
to provide essential information about
custody risks to the fund’s investment
adviser as necessary for it to approve the
continued use of the depository. The
requirement that the primary custodian
agree to exercise reasonable care is
intended to provide assurances that its
services and the information it provides
will meet an appropriate standard of
care.
The staff estimates that each of
approximately 960 investment advisers 1
will make an average of 8 responses
annually under the rule to address
depository compliance with minimum
requirements, any indemnification or
insurance arrangements, and reviews of
risk analyses or notifications. The staff
estimates each response will take 6
hours, requiring a total of approximately
48 hours for each adviser.2 Thus the
total annual burden associated with
these requirements of the rule is
approximately 46,080 hours.3 The staff
further estimates that during each year,
each of approximately 40 global
custodians will make an average of 4
responses to analyze custody risks and
provide notice of any material changes
to custody risk under the rule. The staff
estimates that each response will take
260 hours, requiring approximately
1,040 hours annually per global
custodian.4 Thus the total annual
burden associated with these
requirements is approximately 41,600
hours.5 The staff estimates that the total
annual hour burden associated with all
collection of information requirements
of the rule is therefore 87,680 hours.6
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 and forms.
Compliance with the collection of
information requirements of the rule is
necessary to obtain the benefit of relying
on the rule’s permission for funds to
maintain their assets in foreign
custodians. The information provided
1 In October 2019, Commission staff estimated
that 960 investment advisers managed or sponsored
open-end registered funds (including exchangetraded funds) and closed-end registered funds.
2 8 responses per adviser × 6 hours per response
= 48 hours per adviser.
3 960 advisers × 48 hours per adviser = 46,080
hours.
4 260 hours per response × 4 responses per global
custodian = 1,040 hours per global custodian.
5 40 global custodians × 1,040 hours per global
custodian = 41,600 hours.
6 46,080 hours + 41,600 hours = 87,680 hours.

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Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices

under rule 17f–7 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 unless it displays a
currently valid OMB control number.
The public may view the background
documentation for this information
collection at the following website,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to:
Lindsay.M.Abate@omb.eop.gov; and (ii)
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov. Comments must be
submitted to OMB within 30 days of
this notice.
Dated: January 31, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–02234 Filed 2–4–20; 8:45 am]

I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe EDGX’’) proposes
to amend certain Rules within Rules 4.5
through 4.16, which contains the
Exchange’s compliance rule
(‘‘Compliance Rule’’) regarding the
National Market System Plan Governing
the Consolidated Audit Trail (the ‘‘CAT
NMS Plan’’ or ‘‘Plan’’),3 to be consistent
with certain proposed amendments to
and exemptions from the CAT NMS
Plan as well as to facilitate the
retirement of certain existing regulatory
systems. The text of the proposed rule
change is provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (http://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change

BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88103; File No. SR–
CboeEDGX–2020–005]

Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
of a Proposed Rule Change Relating
To Amend Certain Rules Within Rules
4.5 Through 4.16, Which Contains the
Exchange’s Compliance Rule
(‘‘Compliance Rule’’) Regarding the
National Market System Plan
Governing the Consolidated Audit Trail
(the ‘‘CAT NMS Plan’’ or ‘‘Plan’’), To Be
Consistent With Certain Proposed
Amendments to and Exemptions From
the CAT NMS Plan as Well as To
Facilitate the Retirement of Certain
Existing Regulatory Systems
January 30, 2020.

jbell on DSKJLSW7X2PROD with NOTICES

prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.

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 January
22, 2020, Cboe EDGX Exchange, Inc.
(‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been

In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend the Consolidated
Audit Trail (‘‘CAT’’) Compliance Rule
in Rules 4.5 through 4.16 to be
consistent with certain proposed
amendments to and exemptions from
the CAT NMS Plan as well as to
facilitate the retirement of certain
existing regulatory systems. As
described more fully below, the
proposed rule change would make the
3 Unless

1 15
2 17

otherwise specified, capitalized terms
used in this rule filing are defined as set forth in
the Compliance Rule.

U.S.C. 78s(b)(1).
CFR 240.19b–4.

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following changes to the Compliance
Rule:
• Revise data reporting requirements
for the Firm Designated ID;
• Add additional data elements to the
CAT reporting requirements for Industry
Members to facilitate the retirement of
the Financial Industry Regulatory
Authority, Inc.’s (‘‘FINRA’’) Order Audit
Trail System (‘‘OATS’’);
• Add additional data elements
related to OTC Equity Securities that
FINRA currently receives from ATSs
that trade OTC Equity Securities for
regulatory oversight purposes to the
CAT reporting requirements for Industry
Members;
• Implement a phased approach for
Industry Member reporting to the CAT
(‘‘Phased Reporting’’);
• Revise the CAT reporting
requirements regarding cancelled trades
and SRO-Assigned Market Participant
Identifiers of clearing brokers, if
applicable, in connection with order
executions, as such information will be
available from FINRA’s trade reports
submitted to the CAT;
• To the extent that any Industry
Member’s order handling or execution
systems utilize time stamps in
increments finer than milliseconds,
revise the timestamp granularity
requirement to require such Industry
Member to record and report Industry
Member Data to the Central Repository
with time stamps in such finer
increment up to nanoseconds;
• Revise the reporting requirements
to address circumstances in which an
Industry Member uses an established
trading relationship for an individual
Customer (rather than an account) on
the order reported to the CAT; and
• Revise the CAT reporting
requirements so Industry Members
would not be required to report to the
Central Repository dates of birth, SSNs
or account numbers for individuals.
(1) Firm Designated ID
The Participants filed with the
Commission a proposed amendment to
the CAT NMS Plan to amend the
requirements for Firm Designated IDs in
two ways: (1) To prohibit the use of
account numbers as Firm Designated
IDs for trading accounts that are not
proprietary accounts; and (2) to require
that the Firm Designated ID for a trading
account be persistent over time for each
Industry Member so that a single
account may be tracked across time
within a single Industry Member.4 As a
4 See Letter to Vanessa Countryman, Secretary,
SEC, from Michael Simon, CAT NMS Plan
Operating Committee Chair re: Notice of Filing of
Amendment to the National Market System Plan

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