Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 66923 

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

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 200.30–3(a)(12). 

1See 44 U.S.C. 3501 et seq. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

DTC has not received or solicited any 

written comments relating to this 

proposal. If any written comments are 

received, they would be publicly filed 

as an Exhibit 2 to this filing, as required 

by Form 19b–4 and the General 

Instructions thereto. 

Persons submitting comments are 

cautioned that, according to Section IV 

(Solicitation of Comments) of the 

Exhibit 1A in the General Instructions to 

Form 19b–4, the Commission does not 

edit personal identifying information 

from comment submissions. 

Commenters should submit only 

information that they wish to make 

available publicly, including their 

name, email address, and any other 

identifying information. 

All prospective commenters should 

follow the Commission’s instructions on 

how to submit comments, available at 

www.sec.gov/regulatory-actions/how-tosubmit-comments. General questions 

regarding the rule filing process or 

logistical questions regarding this filing 

should be directed to the Main Office of 

the Commission’s Division of Trading 

and Markets at tradingandmarkets@

sec.gov or 202–551–5777. 

DTC reserves the right to not respond 

to any comments received. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: 

(i) significantly affect the protection of 

investors or the public interest; 

(ii) impose any significant burden on 

competition; and 

(iii) become operative for 30 days 

from the date on which it was filed, or 

such shorter time as the Commission 

may designate, it has become effective 

pursuant to section 19(b)(3)(A) of the 

Act 15 and Rule 19b–4(f)(6) 

thereunder.16

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

DTC–2023–009 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–DTC–2023–009. 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 (https://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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of DTC 

and on DTCC’s website (http://

dtcc.com/legal/sec-rule-filings.aspx). Do 

not include personal identifiable 

information in submissions; you should 

submit only information that you wish 

to make available publicly. We may 

redact in part or withhold entirely from 

publication submitted material that is 

obscene or subject to copyright 

protection. All submissions should refer 

to File Number SR–DTC–2023–009 and 

should be submitted on or before 

October 19, 2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21137 Filed 9–27–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. S7–05–22, OMB Control No. 

3235–XXXX] 

Submission for OMB Review; 

Comment Request: Rule 15c6–2 

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 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

provided for 17 CFR 240.15c6–2 (‘‘Rule 

15c6–2’’) under the Securities Exchange 

Act of 1934 (‘‘Exchange Act’’) (15 U.S.C. 

78a et seq.). The Commission has 

submitted this collection of information 

to the Office of Management and Budget 

(‘‘OMB’’) for approval. The title of the 

information collection is ‘‘Rule 15c6–2.’’ 

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. 

Rule 15c6–2 was adopted as part of 

the final rules to shorten the standard 

settlement cycle for securities 

transactions from two business days 

after the transaction date to one 

business day following the transaction 

date. The compliance date for adopted 

Rule 15c6–2 is May 28, 2024. Certain 

provisions of Rule 15c6–2 contain 

‘‘collection of information’’ 

requirements within the meaning of the 

PRA.1 The requirements for this 

collection of information is mandatory 

for any broker or dealer (‘‘brokerdealer’’) engaging in the allocation, 

confirmation, or affirmation process 

with another party or parties to achieve 

settlement of a securities transaction 

that is subject to the requirements of 

§ 240.15c6–1(a) to either enter into 

written agreements as specified in the 

rule or establish, maintain, and enforce 

written policies and procedures 

reasonably designed to address certain 

objectives related to completing 


ddrumheller on DSK120RN23PROD with NOTICES1
66924 Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 

2See 17 CFR 240.15c6–2; Exchange Act Release 

No. 96930 (Feb. 15, 2023) 88 FR 13872 (Mar. 6, 

2023) (‘‘Rule 15c6–2 Adopting Release’’); see also 

Exchange Act Release No. 94196 (Feb. 9, 2022), 87 

FR 10436 (Feb. 24, 2022) (‘‘Rule 15c6–2 Proposing 

Release’’). 

3This estimate is derived from FOCUS Report 

data as of December 31, 2021. 

4See DTCC, DTC Member Directories, https://

www.dtcc.com/client-center/dtc-directories (last 

updated July 1, 2023). 

5Specifically, statistics compiled by FINRA 

suggest that approximately 256 small firms and 12 

medium-sized firms in the ‘‘Trading and 

Execution’’ category perform ‘‘Institutional 

Brokerage.’’ FINRA, 2022 FINRA Industry Snapshot 

33, 34 (2022), https://www.finra.org/sites/default/ 

files/2022-03/2022-industry-snapshot.pdf. 

6This figure was calculated as follows: (Assistant 

General Counsel for 20 hours + Compliance 

Attorney for 120 hours + Senior Risk Management 

Specialist for 20 hours + Risk Management 

Specialist for 80 hours) = 240 hours × 411 

respondents = 98,640 hours. 

7This figure was calculated as follows: (Assistant 

General Counsel at $543/hour × 20 hours = $10,860) 

+ (Compliance Attorney at $426/hour × 120 hours 

= $51,120) + (Senior Risk Management Specialist at 

$417/hour × 20 hours = $8,340) + (Risk 

Management Specialist at $232/hour × 80 hours = 

$18,560) = $88,880 × 411 respondents = 

$36,529,680. 

8This figure was calculated as follows: (Assistant 

General Counsel for 48 hours + Compliance 

Attorney for 192 hours + Senior Risk Management 

Specialist for 48 hours + Risk Management 

Specialist for 192 hours) = 480 hours × 411 

respondents = 197,280 hours. 

allocations, confirmations, and 

affirmations as soon as technologically 

practicable and no later than the end of 

trade date.2

Specifically, for a broker-dealer that 

determines to establish, maintain, and 

enforce written policies and procedures 

pursuant to Rule 15c6–2(a), Rule 15c6– 

2(b) requires that such policies and 

procedures must be reasonably designed 

to (1) identify and describe any 

technology systems, operations, and 

processes that the broker-dealer uses to 

coordinate with other relevant parties, 

including investment advisers and 

custodians, to ensure completion of the 

allocation, confirmation, or affirmation 

process for the transaction; (2) set target 

time frames on trade date for completing 

the allocation, confirmation, and 

affirmation for the transaction; (3) 

describe the procedures that the brokerdealer will follow to ensure the prompt 

communication of trade information, 

investigate any discrepancies in trade 

information, and adjust trade 

information to help ensure that the 

allocation, confirmation, and 

affirmation can be completed by the 

target time frames on trade date; (4) 

describe how the broker-dealer plans to 

identify and address delays if another 

party, including an investment adviser 

or a custodian, is not promptly 

completing the allocation or affirmation 

for the transaction, or if the brokerdealer experiences delays in promptly 

completing the confirmation; and (5) 

measure, monitor, and document the 

rates of allocations, confirmations, and 

affirmations completed as soon as 

technologically practicable and no later 

than the end of the day on trade date. 

The purpose of the collection under 

Rule 15c6–2 is to ensure that parties to 

institutional transactions—that is, 

transactions where a broker-dealer or its 

customer must engage with agents of the 

customer, including the customer’s 

investment adviser or its securities 

custodian, to prepare a transaction for 

settlement—can ensure the completion 

of the allocation, confirmation, and 

affirmation process as soon as 

technologically practicable and no later 

than the end of the day on trade date. 

The respondents to the collection of 

information are broker-dealers that are 

parties to institutional trades. As of 

December 31, 2021, 3,508 broker-dealers 

were registered with the Commission.3

Of those, approximately 143 brokerdealers are participants of the 

Depository Trust Company (‘‘DTC’’),4 a 

clearing agency registered with the 

Commission that provides central 

securities depository services for 

transactions in U.S. equity securities. 

Participants in DTC can facilitate the 

settlement of securities transactions on 

behalf of their customers. For example, 

broker-dealers that participate in DTC 

are often referred to as ‘‘clearing 

brokers’’ within the securities industry. 

In addition to broker-dealers, DTC 

participants include bank custodians 

that may also hold securities on behalf 

of institutional customers. Among other 

things, DTC facilitates the settlement of 

securities transactions using the 

delivery-versus-payment (‘‘DVP’’) and 

receipt-versus-payment (‘‘RVP’’) 

methods, both of which are commonly 

used by buyers and sellers to settle an 

institutional transaction once the parties 

have completed the allocation, 

confirmation, and affirmation process. 

Because DTC is the only clearing agency 

that provides central securities 

depository services for U.S. equities, the 

Commission believes that the set of 

participants at DTC that are brokerdealers are a useful, if partial, estimate 

of broker-dealers that participate in the 

allocation, confirmation, and 

affirmation process and therefore of 

broker-dealers that would be subject to 

the requirements of Rule 15c6–2. 

In addition, other broker-dealers may 

participate in the allocation, 

confirmation, and affirmation process 

but, because they do not maintain status 

as a participant in DTC, rely on 

commercial relationships with DTC 

participants (i.e., clearing brokers) to 

facilitate final settlement of their 

institutional transactions. Using annual 

statistics compiled by the Financial 

Industry Regulatory Authority 

(‘‘FINRA’’), the Commission estimates 

that approximately 268 additional 

broker-dealers may serve institutional 

customers.5 Accordingly, the 

Commission estimates that 

approximately 411 broker-dealers would 

be subject to the requirements of Rule 

15c6–2. 

Rule 15c6–2 will impose both initial 

and ongoing burdens. The extent to 

which a respondent will incur a burden 

to comply with the collection of 

information under Rule 15c6–2 will 

depend on the extent to which the 

broker-dealer determines that its 

policies and procedures, as opposed to 

its written agreements, will be used to 

comply with the rule and how any 

existing policies and procedures for 

ensuring timely settlement would need 

to be modified to address same-day 

affirmation. As a general matter, most 

broker-dealers maintain policies and 

procedures to ensure the timely 

settlement of their transactions, and the 

securities industry considers achieving 

‘‘same-day affirmation’’ an industry best 

practice. Nonetheless, the Commission 

believes that respondent broker-dealers 

will need to evaluate existing policies 

and procedures, identify any gaps, and 

then update their policies and 

procedures to address any gaps 

identified. Accordingly, the 

Commission estimates that respondent 

broker-dealers would incur an aggregate 

one-time burden of approximately 240 

hours 6 to create policies and procedures 

required under the rule, and that the 

internal cost (or monetized value of the 

hour burden) of this one-time burden 

per broker-dealer would be $88,880.7

Rule 15c6–2 also imposes ongoing 

burdens on a respondent broker-dealer 

as follows: (i) ongoing monitoring and 

compliance activities with respect to the 

written policies and procedures 

required by the proposed rule; and (ii) 

ongoing documentation activities with 

respect to its obligations to measure, 

monitor, and document the rates of 

allocations, confirmations, and 

affirmations completed as soon as 

technologically practicable and no later 

than the end of the day on trade date. 

The Commission estimates that the 

ongoing activities required by Rule 

15c6–2 would impose an aggregate 

annual burden on a respondent brokerdealer of 480 hours,8 and an internal 

cost (or monetized value of the hour 


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Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 66925 

9This figure was calculated as follows: (Assistant 

General Counsel at $543/hour × 48 hours = $26,064) 

+ (Compliance Attorney at $426/hour × 192 hours 

= $81,792) + (Senior Risk Management Specialist at 

$417/hour × 48 hours = $20,016) + (Risk 

Management Specialist at $232/hour × 192 hours = 

$44,544) = $172,416 × 411 respondents = 

$70,862,976. 

10This figure was calculated as follows: 

$36,529,680 (industry one-time burden) + 

$70,862,976 (industry ongoing burden) = 

$107,392,656. 

11 17 CFR 240.17a–4(b)(7). The title of the 

information collection for 17 CFR 240.17a–4 is 

‘‘Records to be Preserved by Broker-Dealers’’ (OMB 

Control No. 3235–0279). 

12 17 CFR 240.17a–4(e)(7). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange notes that this proposed change 

modifies a Pillar rule (i.e., with a ‘‘P’’ modifier) that 

has not yet been implemented. The Exchange 

anticipates migrating to its Pillar trading platform 

beginning on October 23, 2023. As is the case with 

all Pillar rules, this proposed rule change (as well 

as the entire Rule 900.3NYP) will not be 

implemented until all other Pillar-related rule 

filings are approved or operative, as applicable, and 

the Exchange announces the migration of 

underlying symbols to Pillar by Trader Update. 

5See Securities Exchange Act Release No. 98279 

(September 1, 2023), 88 FR 62115 (September 8, 

2023) (SR–NYSEARCA–2023–57) (immediately 

effective rule change to modify Rule 6.62P–O(g)(1) 

to allow Complex QCC Orders in non-standard 

ratios). 

6See, e.g., Rule 900.3NYP(h)(6)(B) (regarding 

Stock/Complex Orders, which are a subset of 

Complex Orders (per Rule 900.3NYP(f)), that are 

only available for trading in Open Outcry and are 

not subject to the standard ratio requirement). 

7 In June 2022, Cboe Exchange, Inc. (‘‘Cboe’’) 

began supporting the electronic processing of 

certain stock-option orders in non-standard ratios, 

including Complex QCC Orders. See Cboe Exchange 

Continued 

burden) per broker-dealer of $172,416.9

The total industry internal cost is 

estimated to be approximately $107M.10

Rule 15c6–2 imposes a recordkeeping 

requirement on broker-dealers to 

maintain policies and procedures 

consistent with the rule. Where the 

Commission requests that a brokerdealer produce records retained 

pursuant to the requirements of Rule 

15c6–2, a broker-dealer can request 

confidential treatment of the 

information. If such confidential 

treatment request is made, the 

Commission anticipates that it will keep 

the information confidential subject to 

applicable law. 

Pursuant to Exchange Act Rule 17a– 

4(b)(7), a broker or dealer registered 

pursuant to section 15 of the Exchange 

Act must preserve for a period of not 

less than three years, the first two years 

in an easily accessible place, all written 

agreements (or copies thereof) entered 

into by such member, broker or dealer 

relating to its business as such, 

including agreements with respect to 

any account.11

Pursuant to 17 CFR 240.17a–4(e)(7), a 

broker or dealer registered pursuant to 

section 15 of the Exchange Act must 

maintain and preserve in an easily 

accessible place each compliance, 

supervisory, and procedures manual, 

including any updates, modifications, 

and revisions to the manual, describing 

the policies and practices of the 

member, broker or dealer with respect to 

compliance with applicable laws and 

rules, and supervision of the activities 

of each natural person associated with 

the member, broker or dealer until three 

years after the termination of the use of 

the manual.12

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 

October 30, 2023 to (i) 

>MBX.OMB.OIRA.SEC_desk_officer@

omb.eop.gov< 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: PRA_Mailbox@sec.gov. 

Dated: September 22, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21167 Filed 9–27–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98483; File No. SR– 

NYSEAMER–2023–44] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Modify Rule 900.3NYP 

September 22, 2023. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

September 18, 2023, NYSE American 

LLC (‘‘NYSE American’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. 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 modify 

Rule 900.3NYP(g)(1) regarding Complex 

Qualified Contingent Cross Orders. The 

proposed rule change is available on the 

Exchange’s website at www.nyse.com, 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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify 

Rule 900.3NYP(g)(1) regarding Complex 

Qualified Contingent Cross (‘‘QCC’’) 

Orders to allow Complex QCC Orders in 

non-standard ratios (as defined below) 

to be processed electronically.4 The 

Exchange notes that an identical rule 

change was recently adopted on its 

affiliated exchange, NYSE Arca, Inc. 

(‘‘NYSE Arca’’) and therefore this 

proposal raises no new or novel issues 

not previously considered by the 

Commission.5

Rule 900.3NYP(f) provides that a 

Complex Order is any order involving 

the simultaneous purchase and/or sale 

of two or more option series in the same 

underlying security (the ‘‘legs’’ or 

‘‘components’’ of the Complex Order), 

for the same account, in a ratio that is 

equal to or greater than one-to-three 

(.333) and less than or equal to three-toone (3.00) (referred to herein as the 

‘‘standard ratio’’ or ‘‘standard ratio 

requirement’’).The Exchange currently 

permits certain Complex Orders with 

ratios greater than three-to-one or less 

than one-to-three (‘‘non-standard 

ratios’’) for execution on the Exchange’s 

trading floor.6 This proposed change is 

competitive as at least one other options 

exchange permits Complex QCC Orders 

in non-standard ratios to be processed 

electronically.7 As such, the Exchange 


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