64380 Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 

29 Id. 

30 15 U.S.C. 78q–1(b)(3)(D). 

31 15 U.S.C. 78q–1(b)(3)(I). 

32 Id. 

33 Id. 

34 15 U.S.C. 78s(b)(3)(A). 

35 17 CFR 240.19b–4(f). 36 17 CFR 200.30–3(a)(12). 

on competition that is created by the 

proposed rule changes to the fees 

associated with CNS fails that are more 

than 30 days would be necessary and 

appropriate in furtherance of the 

purposes of the Act, as permitted by 

Section 17A(b)(3)(I) of the Act.29

NSCC believes that the proposed rule 

changes to promote efficient market 

behavior would be necessary in 

furtherance of the purposes of the Act 

because the Rules must provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

participants.30 As described above, 

NSCC believes that the proposed rule 

changes would result in fees that are 

equitably allocated (by imposing the 

fees on all Members with CNS fails 

more than 30 days) and would result in 

reasonable fees (by increasing fees to the 

extent they would serve as meaningful 

deterrents to Members having CNS fails 

that are more than 30 days). As such, 

NSCC believes the proposed rule 

changes to promote efficient market 

behavior would be necessary in 

furtherance of the purposes of the Act, 

as permitted by Section 17A(b)(3)(I) of 

the Act.31

NSCC believes any burden on 

competition that is created by the 

proposed rule changes to promote 

efficient market behavior would also be 

appropriate in furtherance of the 

purposes of the Act. NSCC believes that 

the proposed rule changes would 

encourage Members to address CNS fails 

that are more than 30 days. Reducing 

the number of CNS fails that are more 

than 30 days would, NSCC believes, 

promote the prompt and accurate 

clearance and settlement of securities 

transactions. As such, NSCC believes 

the proposed rule changes to promote 

efficient market behavior would be 

appropriate in furtherance of the 

purposes of the Act, as permitted by 

Section 17A(b)(3)(I) of the Act.32

NSCC does not believe the proposed 

rule changes to reduce the complexity of 

the Fee Structure (other than the 

proposed rule change to modify the 

trade recording fee for foreign security 

trades) and make technical and 

conforming changes, as discussed above 

in Items II(A)(1)(ii)(A) and (D), 

respectively, would impact 

competition.33 These changes would 

apply equally to all Members and would 

not affect Members’ rights and 

obligations. As such, NSCC believes 

these proposed rule changes would not 

have any impact on competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

Written comments relating to this 

proposed rule change have not been 

solicited or received. NSCC will notify 

the Commission of any written 

comments received by NSCC. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 34 and paragraph (f) of Rule 

19b–4 thereunder.35 At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

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– 

NSCC–2018–011 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–NSCC–2018–011. 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, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of NSCC and on DTCC’s website 

(http://dtcc.com/legal/sec-rulefilings.aspx). 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–NSCC– 

2018–011 and should be submitted on 

or before January 4, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.36

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27080 Filed 12–13–18; 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 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736. 

Extension: 

Rule 17Ad–4(b) & (c) 

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’’) is soliciting comments 

on the existing collection of information 

provided for in the following rule: 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 


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Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 64381 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 84547 

(Nov. 7, 2018), 83 FR 56890. 

4 15 U.S.C. 78s(b)(2). 

5 Id. 

6 17 CFR 200.30–3(a)(31). 

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 

(‘‘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 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 $283, of $424.5 per year per 

transfer agent (1.5 hours × $283 per hour 

= $424.5 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 

$4,245 ($424.5 × 10 = $4,245). 

This rule does not involve the 

collection of confidential information. 

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. 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) 

Charles Riddle, Acting Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Candace 

Kenner, 100 F Street NE, Washington, 

DC 20549, or by sending an email to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: December 10, 2018. 

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27090 Filed 12–13–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84772; File No. SR– 

NYSEArca–2018–77] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Designation of a 

Longer Period for Commission Action 

on Proposed Rule Change To Amend 

Rule 7.44–E, the Exchange’s Retail 

Liquidity Program 

December 10, 2018. 

On October 26, 2018, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to amend Exchange Rule 7.44– 

E, which sets forth the Exchange’s Retail 

Liquidity Program. The proposed rule 

change was published for comment in 

the Federal Register on November 14, 

2018.3 The Commission has received no 

comment letters on the proposed rule 

change. 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding, or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is December 29, 

2018. The Commission is extending this 

45-day time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider this proposed rule change. 

Accordingly, the Commission, pursuant 

to Section 19(b)(2) of the Act,5

designates February 12, 2019, as the 

date by which the Commission shall 

either approve or disapprove, or 

institute proceedings to determine 

whether to disapprove, the proposed 

rule change (File No. SR–NYSEArca– 

2018–77). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27082 Filed 12–13–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–641, OMB Control No. 

3235–0685] 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: U.S. Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736. 

Extension: 

Rules 3a68–2 and 3a68–4(c) 

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 (‘‘SEC’’) has 

submitted to the Office of Management 

and Budget (‘‘OMB’’) a request for 

approval of extension of the previously 


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