30-Day Notice

87918

Federal Register / Vol. 89, No. 214 / Tuesday, November 5, 2024 / Notices

ddrumheller on DSK120RN23PROD with NOTICES1

opinion such suspension would be in
the public interest. No such action
would continue longer than two days or
as soon thereafter as a quorum of
Directors can be assembled, unless the
Board approves the continuation of such
suspension. According to the Exchange,
the Chair has not acted under NYSE
Rule 7.13 since the rule was adopted.4
Pursuant to the proposed rule change,
the CEO or the officer designee of the
CEO would continue to have the power
to suspend trading in any and all
securities trading on the Exchange
whenever in his or her opinion such
suspension would be in the public
interest. Further, the requirement that
no such action continue longer than two
days or as soon thereafter as a quorum
of Directors can be assembled, unless
the Board approves the continuation of
such suspension, would remain.
III. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.5 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b) of the Act,6 in general, and furthers
the objectives of Section 6(b)(5) of the
Act,7 which requires, among other
things, that the rules of a national
securities exchange be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
The Commission finds that the
proposed rule change is consistent with
the Act in that it removes references to
the Chair, who is currently not required
to act under NYSE Rule 7.13, while still
preserving the ability of the CEO or his
or her officer designee the authority to
act under the rule when it would be in
the public interest. As noted above, the
Chair has not acted under NYSE Rule
7.13 since the rule was adopted and
therefore, the proposed rule change
4 Id.

at 79665.
approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
5 In

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more accurately reflects Exchange
practice. Moreover, the Commission
notes that the Chair and the Board
would continue to have an oversight
role, since the requirement would
remain that no suspension of trading
continue longer than two days, or as
soon thereafter as a quorum of Directors
can be assembled, unless the Board
approves the continuation of such
suspension.
Based on the foregoing, the
Commission finds that the proposed
rule change is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–NYSE–2024–
58) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–25634 Filed 11–4–24; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–264, OMB Control No.
3235–0341]

Submission for OMB Review;
Comment Request; Extension: Rule
17Ad–4(b) & (c)
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 approval of
extension of the previously approved
collection of information provided for in
Rule 17Ad–4(b) & (c) under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) (‘‘Exchange Act’’).
Rule 17Ad–4(b) & (c) (17 CFR
240.17Ad–4) is used to document when
transfer agents are exempt, or no longer
exempt, from the minimum
performance standards and certain
recordkeeping provisions of the
Commission’s transfer agent rules.
Pursuant to Rule 17Ad–4(b), if the
Commission or the Office of the
Comptroller of the Currency (‘‘OCC’’) is
the appropriate regulatory agency
8 15
9 17

PO 00000

U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).

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(‘‘ARA’’) for an exempt transfer agent,
that transfer agent is required to prepare
and maintain in its possession a notice
certifying that it is exempt from certain
performance standards and
recordkeeping and record retention
provisions of the Commission’s transfer
agent rules. This notice need not be
filed with the Commission or OCC. If
the Board of Governors of the Federal
Reserve System (‘‘Fed’’) or the Federal
Deposit Insurance Corporation (‘‘FDIC’’)
is the transfer agent’s ARA, that transfer
agent must prepare a notice and file it
with the Fed or FDIC.
Rule 17Ad–4(c) sets forth the
conditions under which a registered
transfer agent loses its exempt status.
Once the conditions for exemption no
longer exist, the transfer agent, to keep
the appropriate ARA apprised of its
current status, must prepare, and file if
the ARA for the transfer agent is the Fed
or the FDIC, a notice of loss of exempt
status under paragraph (c). The transfer
agent then cannot claim exempt status
under Rule 17Ad–4(b) again until it
remains subject to the minimum
performance standards for non-exempt
transfer agents for six consecutive
months.
ARAs use the information contained
in the notices required by Rules 17Ad–
4(b) and 17Ad–4(c) to determine
whether a registered transfer agent
qualifies for the exemption, to
determine when a registered transfer
agent no longer qualifies for the
exemption, and to determine the extent
to which that transfer agent is subject to
regulation.
The Commission estimates that
approximately 10 registered transfer
agents each year prepare or file notices
in compliance with Rules 17Ad–4(b)
and 17Ad–4(c). The Commission
estimates that each such registered
transfer agent spends approximately 1.5
hours to prepare or file such notices for
an aggregate total annual burden of 15
hours (1.5 hours times 10 transfer
agents). The Commission staff estimates
that compliance staff work at registered
transfer agents results in an internal cost
of compliance, at an estimated hourly
wage of $319, of $478.50 per year per
transfer agent (1.5 hours × $319 per hour
= $478.50 per year). Therefore, the
aggregate annual internal cost of
compliance for the approximate 10
transfer agents annually preparing or
filing notices pursuant to Rules 17Ad–
4(b) and 17Ad–4(c) is approximately
$4,785 ($478.50 × 10 = $4,785). This
reflects an increase in the aggregate
annual internal cost of compliance of
$540 due to the increase in the hourly
wage of transfer agents from $283 to
$319.

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Federal Register / Vol. 89, No. 214 / Tuesday, November 5, 2024 / Notices
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:
www.reginfo.gov. 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 by December 5, 2024 to (i)
www.reginfo.gov/public/do/PRAMain or
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov, and (ii) Austin Gerig,
Director/Chief Data Officer, Securities
and Exchange Commission, c/o Tanya
Ruttenberg, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: October 31, 2024.
Vanessa A. Countryman,
Secretary.

Administration, and a new rule entitled
‘‘Margin Required Is Minimum’’ in
Options 6C, Margins.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/phlx/rules, at the principal
office of the Exchange, 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
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

[FR Doc. 2024–25670 Filed 11–4–24; 8:45 am]
BILLING CODE 8011–01–P

1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101482; File No. SR–Phlx–
2024–56]

Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Adopt New Rules at
Options 6 and 6C
October 30, 2024.

ddrumheller on DSK120RN23PROD with NOTICES1

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 October
18, 2024, Nasdaq PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) a proposed rule change
as described in Items I, II, and III below,
which Items have been prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt a
new rule titled ‘‘Letters of Guarantee’’ in
Options 6, Options Trade
1 15
2 17

U.S.C. 78s(b)(1).
CFR 240.19b–4.

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The Exchange proposes to adopt a
new rule titled ‘‘Letters of Guarantee’’ in
Options 6, Options Trade
Administration and a new rule entitled
‘‘Margin Required Is Minimum’’ in
Options 6C, Margins. Each proposed
change is described below.
Options 6
The Exchange proposes to adopt a
new rule titled, ‘‘Letters of Guarantee,’’
at Options 6, Section 4, which is
currently reserved. The adoption of
Options 6, Section 4 is not intended to
expand the current requirements
imposed on members and member
organizations, rather it is intended to
make clear the current requirement to
maintain a letter of guarantee. By way
of background, the letter of guarantee
provides that the Clearing Member 3
accepts financial responsibility for all
Exchange transactions made by the Phlx
member organization on whose behalf
the Clearing Member submits the letter
of guarantee. Clearing Members
guarantee all transactions on behalf of a
member and member organizations, and
therefore bear the risk associated with
those transactions.
3 The term ‘‘Clearing Member’’ means a member
organization which has been admitted to
membership in The Options Clearing Corporation
pursuant to the provisions of the rules of The
Options Clearing Corporation. See Options 1,
Section 1(b)(10).

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87919

Today, all Phlx members and member
organizations are required to have a
membership in, or access arrangement
with a participant of a clearing agency
registered with the Commission that
maintains facilities through which
compared trades may be settled.4
Further, today, Phlx Options 6D,
Section 1 makes clear that each member
organization referred to in paragraph
(iii) 5 shall at all times maintain positive
net liquid assets and, in its clearing
account(s), positive equity, provided
that said organization has filed with the
Exchange a letter of guarantee issued on
its behalf by a clearing member
organization of this Exchange which is
also a clearing member of The Options
Clearing Corporation.6 At this time, the
Exchange proposes to adopt a ‘‘Letters
of Guarantee’’ rule at Options 6, Section
4, which is substantively identical to
Nasdaq ISE, LLC (‘‘ISE’’) Options 6,
Section 4, to make clear that member
organizations have an obligation to
obtain a letter of guarantee.
Similar to ISE, the Exchange proposes
to specifically note at Options 6, Section
4(a) that no Phlx Market Maker shall
make any transactions on the Exchange
unless a letter of guarantee has been
issued for such member organization by
a Clearing Member and filed with the
Exchange, and unless such letter of
guarantee has not been revoked
pursuant to paragraph (c) of Options 6,
Section 4. This language is consistent
with Phlx General 3, Rule 1032 and
Phlx Options 6D, Section 1(a)(iv), and
the language is substantively identical
to ISE Options 6, Section 4(a). Further,
the Exchange proposes to state at
Options 6, Section 4(b) that a letter of
guarantee shall provide that the issuing
Clearing Member accepts financial
responsibilities for all Exchange
transactions made by the guaranteed
member organization. This language is
consistent with Phlx Options 6D,
Section 1(a)(iv), and the language is
substantively identical to ISE Options 6,
4 See Nasdaq General 3, Rule 1032. Phlx General
3 Rules are incorporated by reference to Nasdaq
General 3 Rules. See also Nasdaq’s membership
form (https://www.nasdaqtrader.com/content/
marketregulation/membership/
NASDAQSROMembershipApplicationFinal.pdf)
which states that all options participants must
provide an executed clearing letter of guarantee.
5 See Phlx Options 6D, Section 1(a)(iii) provides
that each member organization or foreign currency
options participant organization exempt from SEC
Rule 15c3–1 and whose principal business is as a
registered options trader on the Exchange, shall,
subject to subparagraph (iv) below, at all times
maintain a minimum of $25,000 in net liquid assets.
6 See Phlx Options 6D Section 1(a)(iv). This rule
is intended to make clear that member
organizations or other participants that are exempt
from SEC Rule 15c3–1 must also have a letter of
guarantee.

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