Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 28281 

21 15 U.S.C. 78s(b)(3)(A). 

22 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 23 17 CFR 200.30–3(a)(12). 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

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 after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 21 and Rule 19b– 

4(f)(6) 22 thereunder. 

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

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– 

NYSEAMER–2018–26 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEAMER–2018–26. 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 the Exchange. 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–NYSEAMER–2018–26 and 

should be submitted on or before July 9, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12933 Filed 6–15–18; 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 FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Reports of Evidence of Material Violations: 

SEC File No. 270–514, OMB Control No. 

3235–0572 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act (PRA) 

of 1995, 44 U.S.C. 3501–3520, the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit the existing collection 

of information to the Office of 

Management and Budget for extension. 

On February 6, 2003, the Commission 

published final rules, effective August 5, 

2003, entitled ‘‘Standards of 

Professional Conduct for Attorneys 

Appearing and Practicing Before the 

Commission in the Representation of an 

Issuer’’ (17 CFR 205.1–205.7). The 

information collection embedded in the 

rules is necessary to implement the 

Standards of Professional Conduct for 

Attorneys prescribed by the rule and 

required by Section 307 of the SarbanesOxley Act of 2002 (15 U.S.C. 7245). The 

rules impose an ‘‘up-the-ladder’’ 

reporting requirement when attorneys 

appearing and practicing before the 

Commission become aware of evidence 

of a material violation by the issuer or 

any officer, director, employee, or agent 

of the issuer. An issuer may choose to 

establish a qualified legal compliance 

committee (‘‘QLCC’’) as an alternative 

procedure for reporting evidence of a 

material violation. In the rare cases in 

which a majority of a QLCC has 

concluded that an issuer did not act 

appropriately, the information may be 

communicated to the Commission. The 

collection of information is, therefore, 

an important component of the 

Commission’s program to discourage 

violations of the federal securities laws 

and promote ethical behavior of 

attorneys appearing and practicing 

before the Commission. 

The respondents to this collection of 

information are attorneys who appear 

and practice before the Commission 

and, in certain cases, the issuer, and/or 

officers, directors and committees of the 

issuer. We believe that, in providing 

quality representation to issuers, 

attorneys report evidence of violations 

to others within the issuer, including 

the Chief Legal Officer, the Chief 

Executive Officer, and, where necessary, 

the directors. In addition, officers and 

directors investigate evidence of 

violations and report within the issuer 

the results of the investigation and the 

remedial steps they have taken or 

sanctions they have imposed. Except as 

discussed below, we therefore believe 

that the reporting requirements imposed 

by the rule are ‘‘usual and customary’’ 

activities that do not add to the burden 

that would be imposed by the collection 

of information. 

Certain aspects of the collection of 

information, however, may impose a 

burden. For an issuer to establish a 


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28282 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 

1This figure is based on the estimated 7,625 

operating companies that filed annual reports on 

Form 10–K, Form 20–F, or Form 40–F during the 

2017 calendar year, and the estimated 3,087 

investment companies that filed periodic reports on 

Form N–SAR during that same time period. 2This estimate is based on issuer-filings made 

with the Commission between January 1, 2015 and 

March 18, 2018 that include a reference to the 

issuer’s QLCC. 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 83032 

(April 11, 2018), 83 FR 16909 (April 17, 2018) (SR– 

NYSEArca–2018–20). 

QLCC, the QLCC must adopt written 

procedures for the confidential receipt, 

retention, and consideration of any 

report of evidence of a material 

violation. We estimate for purposes of 

the PRA that there are approximately 

10,712 issuers that are subject to the 

rules.1 Of these, we estimate that 

approximately 319, which is 

approximately 3 percent, have 

established or will establish a QLCC.2

Establishing the written procedures 

required by the rule should not impose 

a significant burden. We assume that an 

issuer would incur a greater burden in 

the year that it first establishes the 

procedures than in subsequent years, in 

which the burden would be incurred in 

updating, reviewing, or modifying the 

procedures. For purposes of the PRA, 

we assume that an issuer would spend 

6 hours every three-year period on the 

procedures. This would result in an 

average burden of 2 hours per year. 

Thus, we estimate for purposes of the 

PRA that the total annual burden 

imposed by the collection of 

information would be 638 hours. 

Assuming half of the burden hours will 

be incurred by outside counsel at a rate 

of $500 per hour would result in a cost 

of $159,500. 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act, and is not 

derived from a comprehensive or even 

a representative survey or study. 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 OMB control 

number. 

Written comments are requested on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information has practical utility; (b) the 

accuracy of the Commission’s estimate 

of the burden[s] 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. 

The public may view the 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: Shagufta_

Ahmed@omb.eop.gov; and (ii) Pamela 

Dyson, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o Candace Kenner, 100 F 

Street NE, Washington, DC 20549 or 

send an email to PRA_Mailbox@sec.gov. 

Comments must be submitted to OMB 

within 30 days of this notice. 

Dated: June 13, 2018. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12983 Filed 6–15–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83418; File No. SR– 

NYSEArca–2018–41] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Equities Fees and Charges 

June 12, 2018. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on June 1, 

2018, NYSE Arca, Inc. (the ‘‘Exchange’’ 

or ‘‘NYSE Arca’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend the 

NYSE Arca Equities Fees and Charges 

(‘‘Fee Schedule’’) to (i) introduce a new 

pricing tier, Step Up Tier 2, and (ii) 

adopt an incremental credit for the Tape 

B Tier 2 pricing tier. The Exchange 

proposes to implement the fee changes 

effective June 1, 2018. 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Fee Schedule to: (i) Introduce a new 

pricing tier, Step Up Tier 2, and (ii) 

adopt an incremental credit for Tape B 

Tier 2. The Exchange proposes to 

implement the fee changes effective 

June 1, 2018. 

Step Up Tier 2 

The Exchange proposes a new pricing 

tier—Step Up Tier 2—for securities with 

a per share price of $1.00 or above. 

The Exchange currently has a Step Up 

Tier pursuant to which qualifying ETP 

Holders and Market Makers receive a 

credit of $0.0030 per share for orders 

that provide displayed liquidity to the 

Book in Tape A Securities, $0.0023 per 

share for orders that provide displayed 

liquidity to the Book in Tape B 

Securities, and $0.0031 per share for 

orders that provide displayed liquidity 

to the Book in Tape C Securities if such 

ETP Holders and Market Makers 

directly execute providing average daily 

volume (‘‘ADV’’) per month of 0.50% or 

more but less than 0.70% of the US 

CADV, and directly execute providing 

ADV that is an increase of no less than 

0.10% of US CADV for that month over 

the ETP Holder’s or Market Maker’s 

providing ADV in Q1 2018.4

As proposed, ETP Holders and Market 

Makers would qualify for the new Step 

Up Tier 2 if they directly execute 

providing ADV per month of 0.22% or 

more but less than 0.30% of the US 

CADV, and directly execute providing 

ADV that is an increase of no less than 


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