13002 Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 

1These 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). 

2See Securities Exchange Act Release No. 57526 

(March 19, 2008), 73 FR 16179 (March 27, 2008). 

3The average cost per response is $4,465.50 

(13.25 hours multiplied by a weighted average 

hourly rate of $337.02). The resultant total related 

cost of compliance for these respondents is $53,586 

per year (12 responses × $4,465.50 per response). 

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, selfregulatory 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 provides 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 national 

securities exchanges only because they 

trade security futures products. 

Similarly, certain entities (Limited 

Purpose National Securities 

Associations) would be 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

The collection of information is 

designed to provide the Commission 

with the information necessary to 

determine, as required by the Act, 

whether the proposed rule change is 

consistent with the Act and the rules 

thereunder. The information is used to 

determine if the proposed rule change 

should remain in affect or abrogated. 

The respondents to the collection of 

information are SROs. Five respondents 

file an average total of 12 responses per 

year. Each response takes approximately 

13.25 hours to complete, which 

corresponds to an estimated annual 

response burden of 159 (12 responses × 

13.25 hours) hours. The average cost per 

response is $4,465.50 (13.25 hours 

multiplied by a weighted average hourly 

rate of $337.02).3

Compliance with Rule 19b–7 is 

mandatory. Information received in 

response to Rule 19b–7 shall not be kept 

confidential; the information collected 

is public information. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimates of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information to be collected; and 

(d) ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. 

Please direct your written comments 

to: Thomas Bayer, Chief Information 

Officer, Securities and Exchange 

Commission, C/O Remi Pavlik-Simon, 

6432 General Green Way, Alexandria, 

Virginia 22312 or send an e-mail to: 

PRA_Mailbox@sec.gov. 

Dated: March 1, 2011. 

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5282 Filed 3–8–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 206(3)–3T; SEC File No. 270–571; 

OMB Control No. 3235–0630. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 350 et seq.), the Securities 

and Exchange Commission (the 

‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for extension and 

approval of the collections of 

information discussed below. 

Temporary rule 206(3)–3T (17 CFR 

275.206(3)–3T) under the Investment 

Advisers Act of 1940 (15 U.S.C. 80b–1 

et seq.) is entitled: ‘‘Temporary rule for 

principal trades with certain advisory 

clients.’’ The temporary rule provides 

investment advisers who are registered 

with the Commission as broker-dealers 

an alternative means to meet the 

requirements of section 206(3) of the 

Advisers Act (15 U.S.C. 80b–6(3)) when 

they act in a principal capacity in 

transactions with certain of their 

advisory clients. 

Temporary rule 206(3)–3T permits 

investment advisers also registered as 

broker-dealers to satisfy the Advisers 

Act’s principal trading restrictions by: 

(i) Providing written, prospective 

disclosure regarding the conflicts arising 

from principal trades; (ii) obtaining 

written, revocable consent from the 

client prospectively authorizing the 

adviser to enter into principal 

transactions; (iii) making oral or written 

disclosure and obtaining the client’s 

consent before each principal 

transaction; (iv) sending to the client 

confirmation statements disclosing the 

capacity in which the adviser has acted; 

and (v) delivering to the client an 

annual report itemizing the principal 

transactions. 

The Commission staff estimates that 

approximately 380 investment advisers 

make use of rule 206(3)–3T, including 

an estimated 24 advisers (on an annual 

basis) also registered as broker-dealers 

who do not offer non-discretionary 

services, but whom the Commission 

staff estimates will choose to do so and 

rely on rule 206(3)–3T. The Commission 

staff estimates that these advisers spend, 

in the aggregate, approximately 378,992 

hours annually in complying with the 

requirements of the rule, including both 

initial and annual burdens. The 

aggregate hour burden, expressed on a 

per-eligible-adviser basis, is therefore 

approximately 997 hours per eligible 

adviser (378,992 hours divided by the 

estimated 380 advisers that will rely on 

rule 206(3)–3T). 


Emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 13003 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5For a more detailed description of the PULSe 

workstation and its other functionalities, see, e.g., 

Securities Exchange Act Release Nos. 62286 (June 

11, 2010), 75 FR 34799 (June 18, 2010) (SR–CBOE– 

2010–051) and 63721 (January 14, 2011), 76 FR 

3929 (January 21, 2011) (SR–CBOE–2011–001). 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4). 

The information collected pursuant to 

the rule is not required to be filed with 

the Commission, but rather takes the 

form of disclosures to, and responses 

from, clients. Accordingly, these filings 

are not kept confidential. To the extent 

advisers include any of the information 

required by the rule in a filing, such as 

Form ADV, the information 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 control number. 

The public may view the background 

documentation for this information 

collection at the following Web site, 

http://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 

e-mail to: 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Thomas Bayer, Chief Information 

Officer, Securities and Exchange 

Commission, c/o Remi Pavlik-Simon, 

6432 General Green Way, Alexandria, 

VA 22312 or send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: March 1, 2011. 

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5283 Filed 3–8–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64007; File No. SR–CBOE– 

2011–021] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to PULSe Fees 

March 2, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 1, 

2011, the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’ or the 

‘‘Exchange’’) 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 prepared 

by CBOE. The Exchange has designated 

this proposal as one establishing or 

changing a due, fee, or other charge 

imposed by CBOE under Section 

19(b)(3)(A)(ii) of the Act 3 and Rule 19b– 

4(f)(2) thereunder.4 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 is proposing to amend 

its Fees Schedule to reduce an awaymarket routing fee and extend a fee 

waiver related to the PULSe 

workstation. The Exchange is also 

proposing to make a non-substantive 

formatting change to its Fee Schedule. 

The text of the proposed rule change is 

available on the Exchange’s Web site 

http://www.cboe.org/legal), at the 

Exchange’s Office of the Secretary and 

at the Commission. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CBOE 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. CBOE 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 reduce an away-market 

routing fee and extend a fee waiver 

related to the PULSe workstation. The 

Exchange is also proposing to make a 

non-substantive formatting change to its 

Fee Schedule. 

By way of background, the PULSe 

workstation is a front-end order entry 

system designed for use with respect to 

orders that may be sent to the trading 

systems of CBOE and CBOE Stock 

Exchange, LLC (‘‘CBSX’’). In addition, 

the PULSe workstation provides a user 

with the capability to send options 

orders to other U.S. options exchanges 

and stock orders to other U.S. stock 

exchanges through a PULSe Routing 

Intermediary (‘‘away-market routing’’).5

The first purpose of this proposed 

rule change is to reduce the PULSe 

away market routing fee. Currently the 

fee is set at $0.10 per executed contract 

or share equivalent. The Exchange is 

proposing to reduce the fee to $0.05 per 

executed contract or share equivalent 

effective March 1, 2011. 

The second purpose of this proposed 

rule change is to extend the waiver of 

the PULSe Routing Intermediary fee. 

Currently the Exchange has waived the 

Routing Intermediary fee through March 

31, 2011. The Exchange is proposing to 

extend this waiver through June 30, 

2011. Thus this fee will be assessed 

beginning July 1, 2011. 

Finally, the third purpose of this 

proposed rule change is to make a nonsubstantive formatting change to its Fee 

Schedule. In particular, the Fees 

Schedule currently contains references 

to fees for Professional and Voluntary 

Professional transactions in S&P 500 

Index options series that trade on the 

Hybrid Trading System. Specifically, 

the fee schedule references ‘‘SPX 

Options Trading on Hybrid.’’ The 

Exchange is proposing to change these 

references to the trading symbol for 

such options, which is simply ‘‘SPXW.’’ 

This change is non-substantive and 

should simplify the Fees Schedule in a 

manner consistent with other existing 

references to option trading symbols. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,6

in general, and furthers the objectives of 

Section 6(b)(4) of the Act,7 in particular, 

in that it is designed to provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among Trading 

Permit Holders in that the same fees and 

fee waivers are applicable to all Trading 

Permit Holders that use the PULSe 

Workstation. In addition, the change of 

the references from SPX Options 

Trading on Hybrid to the trading symbol 

SPXW should simplify the Fees 

Schedule in a manner consistent with 

other existing references to option 

trading symbols. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 


Emcdonald on DSK2BSOYB1PROD with NOTICES