
[Federal Register Volume 88, Number 209 (Tuesday, October 31, 2023)]
[Notices]
[Page 74554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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: 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 by November 30, 2023 to (i) www.reginfo.gov/public/do/PRAMain 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: 
[email protected].

    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


