Federal Register / Vol. 88, No. 199 / Tuesday, October 17, 2023 / Notices 71615 

1Based on a review of fund filings for the threeyear period from January 1, 2020 to December 31, 

2022, Commission staff calculates there are 2,186 

funds (registered open- and closed-end funds, and 

business development companies) that must 

comply with the collections of information under 

rule 17g–1, and which collectively submit an 

estimated 2,543 filings on Form 17G annually. 

Information Officer, Securities and 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: October 11, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–22818 Filed 10–16–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–208, OMB Control No. 

3235–0213] 

Proposed Collection; Comment 

Request; Extension: Rule 17g–1 

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. 3501–3520), the Securities 

and Exchange Commission (the 

‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 17g–1 (17 CFR 270.17g–1) under 

the Investment Company Act of 1940 

(the ‘‘Act’’) (15 U.S.C. 80a–17(g)) 

governs the fidelity bonding of officers 

and employees of registered 

management investment companies 

(‘‘funds’’) and their advisers. Rule 17g– 

1 requires, in part, the following: 

Independent Directors’ Approval 

The form and amount of the fidelity 

bond must be approved by a majority of 

the fund’s independent directors at least 

once annually, and the amount of any 

premium paid by the fund for any ‘‘joint 

insured bond,’’ covering multiple funds 

or certain affiliates, must be approved 

by a majority of the fund’s independent 

directors. 

Terms and Provisions of the Bond 

The amount of the bond may not be 

less than the minimum amounts of 

coverage set forth in a schedule based 

on the fund’s gross assets. The bond 

must provide that it shall not be 

cancelled, terminated, or modified 

except upon 60-days written notice to 

the affected party and to the 

Commission. In the case of a joint 

insured bond, 60-days written notice 

must also be given to each fund covered 

by the bond. A joint insured bond must 

provide that the fidelity insurance 

company will provide all funds covered 

by the bond with a copy of the 

agreement, a copy of any claim on the 

bond, and notification of the terms of 

the settlement of any claim prior to 

execution of that settlement. Finally, a 

fund that is insured by a joint bond 

must enter into an agreement with all 

other parties insured by the joint bond 

regarding recovery under the bond. 

Filings With the Commission 

Upon the execution of a fidelity bond 

or any amendment thereto, a fund must 

file with the Commission within 10 

days: (i) a copy of the executed bond or 

any amendment to the bond, (ii) the 

independent directors’ resolution 

approving the bond, and (iii) a 

statement as to the period for which 

premiums have been paid on the bond. 

In the case of a joint insured bond, a 

fund must also file: (i) a statement 

showing the amount the fund would 

have been required to maintain under 

the rule if it were insured under a single 

insured bond; and (ii) the agreement 

between the fund and all other insured 

parties regarding recovery under the 

bond. A fund must also notify the 

Commission in writing within five days 

of any claim or settlement on a claim 

under the fidelity bond. 

Notices to Directors 

A fund must notify by registered mail 

each member of its board of directors of: 

(i) any cancellation, termination, or 

modification of the fidelity bond at least 

45 days prior to the effective date; and 

(ii) the filing or settlement of any claim 

under the fidelity bond when 

notification is filed with the 

Commission. 

Rule 17g–1’s independent directors’ 

annual review requirements, fidelity 

bond content requirements, joint bond 

agreement requirement, and the 

required notices to directors are 

designed to ensure the safety of fund 

assets against losses due to the conduct 

of persons who may obtain access to 

those assets. These requirements also 

seek to facilitate oversight of a fund’s 

fidelity bond. The rule’s required filings 

with the Commission are designed to 

assist the Commission in monitoring 

funds’ compliance with the fidelity 

bond requirements. 

Based on conversations with 

representatives in the fund industry, the 

Commission staff estimates that for each 

of the estimated 2,543 active funds 

(respondents),1 the average annual 

paperwork burden associated with rule 

17g–1’s requirements is two hours, one 

hour each for a compliance attorney and 

the board of directors as a whole. The 

time spent by a compliance attorney 

includes time spent filing reports with 

the Commission for fidelity losses (if 

any) as well as paperwork associated 

with any notices to directors, and 

managing any updates to the bond and 

the joint agreement (if one exists). The 

time spent by the board of directors as 

a whole includes any time spent 

initially establishing the bond, as well 

as time spent on annual updates and 

approvals. The Commission staff 

therefore estimates the total ongoing 

paperwork burden hours per year for all 

funds required by rule 17g–1 to be 5,086 

hours (2,543 funds × 2 hours = 5,086 

hours). Commission staff continues to 

estimate that the filing and reporting 

requirements of rule 17g–1 do not entail 

any external cost burdens. 

These estimates of average burden 

hours are made solely for the purposes 

of the Paperwork Reduction Act. These 

estimates are not derived from a 

comprehensive or even a representative 

survey or study of Commission rules. 

The collection of information required 

by rule 17g–1 is mandatory and 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. 

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 

estimate of the burden of the collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information 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 

by December 18, 2023. 

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. 

Please direct your written comments 

to: David Bottom, Acting Director/Chief 

Information Officer, Securities and 


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71616 Federal Register / Vol. 88, No. 199 / Tuesday, October 17, 2023 / Notices 

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

2 17 CFR 240.19b–4. 

3The term ‘‘NOM Market Maker’’ or (‘‘M’’) is a 

Participant that has registered as a Market Maker on 

NOM pursuant to Options 2, Section 1, and must 

also remain in good standing pursuant to Options 

2, Section 9. In order to receive NOM Market Maker 

pricing in all securities, the Participant must be 

registered as a NOM Market Maker in at least one 

security. See Options 7, Section 1(a). 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: October 11, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–22815 Filed 10–16–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98721; File No. SR– 

NASDAQ–2023–040] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Options 7, Section 2 

October 11, 2023. 

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 

September 29, 2023, The Nasdaq Stock 

Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the 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 amend The 

Nasdaq Options Market LLC (‘‘NOM’’) 

Pricing Schedule at Options 7, Section 

2. 

While the changes proposed herein 

are effective upon filing, the Exchange 

has designated the amendments become 

operative on October 2, 2023. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/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 

1. Purpose 

The Exchange proposes to amend 

NOM’s Pricing Schedule at Options 7, 

Section 2, Nasdaq Options Market— 

Fees and Rebates. Today, NOM Options 

7, Section 2(1) provides for various fees 

and rebates applicable to NOM 

Participants. 

Today, NOM Market Maker 3 Rebates 

to Add Liquidity in Penny Symbols are 

paid per the highest tier achieved 

among the below tiers. 

MONTHLY VOLUME

Tier 1 ...................... Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols of up to 0.10% of total industry customer equity and ETF option average daily volume (‘‘ADV’’) contracts per day in a month. 

Tier 2 ...................... Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 0.10% of total industry 

customer equity and ETF option ADV contracts per day in a month. 

Tier 3 ...................... Participant: (a) adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 0.20% of total industry customer equity and ETF option ADV contracts per day in a month; or (b)(1) adds NOM Market Maker liquidity in 

Penny Symbols and/or Non-Penny Symbols above 0.15% of total industry customer equity and ETF option ADV contracts per day in a month, (2) transacts in all securities through one or more of its Nasdaq Market Center MPIDs that 

represent (i) 0.50% or more of Consolidated Volume (‘‘CV’’) which adds liquidity in the same month on The Nasdaq 

Stock Market or (ii) 50 million shares or more ADV which adds liquidity in the same month on The Nasdaq Stock Market, and (3) executes 1.5 million shares or more ADV in the same month utilizing the M–ELO order type on The Nasdaq 

Stock Market. 

Tier 4 ...................... Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols of above 0.60% of total industry customer equity and ETF option ADV contracts per day in a month. 

Tier 5 ...................... Participant adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols of above 0.40% of total industry customer equity and ETF option ADV contracts per day in a month and transacts in all securities through one or 

more of its Nasdaq Market Center MPIDs that represent 0.40% or more of Consolidated Volume (‘‘CV’’) which adds liquidity in the same month on The Nasdaq Stock Market. 

Tier 6 ...................... Participant: (a)(1) adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols above 0.95% of total 

industry customer equity and ETF option ADV contracts per day in a month, (2) executes Total Volume of 250,000 or 

more contracts per day in a month, of which 30,000 or more contracts per day in a month must be removing liquidity, 

and (3) adds Firm, Broker-Dealer and Non-NOM Market Maker liquidity in Non-Penny Symbols of 10,000 or more contracts per day in a month; or (b)(1) adds NOM Market Maker liquidity in Penny Symbols and/or Non-Penny Symbols 

above 1.50% of total industry customer equity and ETF option ADV contracts per day in a month, and (2) executes 

Total Volume of 250,000 or more contracts per day in a month, of which 15,000 or more contracts per day in a month 

must be removing liquidity. 

‘‘Total Volume’’ is defined as 

Customer, Professional, Firm, BrokerDealer, Non-NOM Market Maker and 

NOM Market Maker volume in Penny 

Symbols and/or Non-Penny Symbols 

which either adds or removes liquidity 

on NOM. 

Proposal 

At this time, the Exchange proposes to 

amend Tiers 5 and 6 of the NOM Market 


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