Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices 35305 

10Based on information in Commission filings, 

we estimate that 38 percent of funds are advised by 

subadvisers. 

11This estimate is based on the following 

calculation (3 hours ÷ 4 rules = .75 hours). 

12These estimates are based on the following 

calculations: (0.75 hours × 299 portfolios = 224 

burden hours). 

13This estimate is based on the following 

calculation: (1,464 hours + 976 hours + 944 hours 

+ 472 + 224 hours = 4,080 total burden hours). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

subadvisory agreements each year.10

Based on discussions with industry 

representatives, the staff estimates that 

it will require approximately 3 attorney 

hours to draft and execute additional 

clauses in new subadvisory contracts in 

order for funds and subadvisers to be 

able to rely on the exemptions in rule 

10f–3. Because these additional clauses 

are identical to the clauses that a fund 

would need to insert in their 

subadvisory contracts to rely on rules 

12d3–1, 17a–10, and 17e–1, and because 

we believe that funds that use one such 

rule generally use all of these rules, we 

apportion this 3 hour time burden 

equally to all four rules. Therefore, we 

estimate that the burden allocated to 

rule 10f–3 for this contract change 

would be 0.75 hours.11 Assuming that 

all 299 funds that enter into new 

subadvisory contracts each year make 

the modification to their contract 

required by the rule, we estimate that 

the rule’s contract modification 

requirement will result in 224 burden 

hours annually.12

The staff estimates, therefore, that rule 

10f–3 imposes an information collection 

burden of 4,080 hours.13

Written comments are invited on: (a) 

Whether the collections of information 

are 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 burdens of the collections of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burdens of the collections 

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 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. 

Dated: July 19, 2018. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15853 Filed 7–24–18; 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 

Extension: 

Interagency Statement on Sound Practices, 

SEC File No. 270–560, OMB Control No. 

3235–0622 

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’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

the Interagency Statement on Sound 

Practices Concerning Elevated Risk 

Complex Structured Finance Activities 

(‘‘Statement’’) under the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.) (‘‘Exchange Act’’) and the 

Investment Advisers Act of 1940 (15 

U.S.C. 80b et seq.) (‘‘Advisers Act’’). 

The Statement was issued by the 

Commission, together with the Office of 

the Comptroller of the Currency, the 

Board of Governors of the Federal 

Reserve System, the Federal Deposit 

Insurance Corporation, and the Office of 

Thrift Supervision (together, the 

‘‘Agencies’’), in May 2006. The 

Statement describes the types of internal 

controls and risk management 

procedures that the Agencies believe are 

particularly effective in assisting 

financial institutions to identify and 

address the reputational, legal, and 

other risks associated with elevated risk 

complex structured finance 

transactions. 

The primary purpose of the Statement 

is to ensure that these transactions 

receive enhanced scrutiny by the 

institution and to ensure that the 

institution does not participate in illegal 

or inappropriate transactions. 

The Commission estimates that 

approximately 5 registered brokerdealers or investment advisers will 

spend an average of approximately 25 

hours per year complying with the 

Statement. Thus, the total compliance 

burden is estimated to be approximately 

125 burden-hours per year. 

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: 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 by 

sending an email to: PRA_Mailbox@

sec.gov. Comments must be submitted to 

OMB within 30 days of this notice. 

Dated: July 19, 2018. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15856 Filed 7–24–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83672; File No. SR–CBOE– 

2018–052] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend the Credit 

Option Margin Pilot Program Through 

July 18, 2019 

July 19, 2018. 

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 July 18, 

2018, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act3 and Rule 19b–4(f)(6) 

thereunder.4 The Commission is 

publishing this notice to solicit 


daltland on DSKBBV9HB2PROD with NOTICES
35306 Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices 

5See Securities Exchange Act Release No. 63819 

(February 2, 2011), 76 FR 6838 (February 8, 2011) 

order approving (SR–CBOE–2010–106). To 

implement the Program, the Exchange amended 

Rule 12.3(l), Margin Requirements, to make Cboe 

Option’s margin requirements for Credit Options 

consistent with Financial Industry Regulatory 

Authority (‘‘FINRA’’) Rule 4240, Margin 

Requirements for Credit Default Swaps. Cboe 

Options Credit Options (i.e., Credit Default Options 

and Credit Default Basket Options) are analogous to 

credit default swaps. 

6See Securities Exchange Act Release No. 59955 

(May 22, 2009), 74 FR 25586 (May 28, 2009) (Notice 

of Filing and Order Granting Accelerated Approval 

of Proposed Rule Change; SR–FINRA–2009–012). 

7See Securities Exchange Act Release No. 66163 

(January 17, 2012), 77 FR 3318 (January 23, 2012) 

(SR–CBOE–2012–007). 8See Securities Exchange Act Release Nos. 68539 

(December 27, 2012), 78 FR 138 (January 2, 2013) 

(SR–CBOE–2012–125), 71124 (December 18, 2013), 

78 FR 77754 (December 24, 2013) (SR–CBOE–2013– 

123), 73837 (December 15, 2014), 79 FR 75850 

(December 19, 2014) (SR–CBOE–2014–091), 76824 

(January 5, 2016), 81 FR 1255 (January 11, 2016) 

(SR–CBOE–2015–118), 79621 (December 14, 2016) 

81 FR 95236 (December 27, 2016) (SR–CBOE–2016– 

089), and 81083 (July 6, 2017) 82 FR 32219 (July 

12, 2017) (SR–CBOE–2017–051). 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

11 Id. 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6). In addition, as required 

under Rule 19b–4(f)(6)(iii), the Exchange provided 

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 

Rule 12.3 by extending the Credit 

Option Margin Pilot Program through 

July 18, 2019. 

The text of the proposed rule change 

is available on the Exchange’s website 

(http://www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

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 

On February 2, 2011, the Commission 

approved the Exchange’s proposal to 

establish a Credit Option Margin Pilot 

Program (‘‘Program’’).5 The proposal 

became effective on a pilot basis to run 

on a parallel track with Financial 

Industry Regulatory Authority 

(‘‘FINRA’’) Rule 4240 that similarly 

operates on an interim pilot basis.6

On January 17, 2012, the Exchange 

filed a rule change to, among other 

things, decouple the Program with the 

FINRA program and to extend the 

expiration date of the Program to 

January 17, 2013.7 The Program, 

however, continues to be substantially 

similar to the provisions of the FINRA 

program. Subsequently, the Exchange 

filed rule changes to extend the program 

until January 17, 2014, January 16, 2015, 

January 15, 2016, January 17, 2017, and 

July 18, 2017, July 18, 2018 

respectively.8 The Exchange believes 

that extending the expiration date of the 

Program further will allow for further 

analysis of the Program and a 

determination of how the Program 

should be structured in the future. Thus, 

the Exchange is now currently 

proposing to extend the duration of the 

Program for an additional year until July 

18, 2019. 

Additionally, the Exchange believes 

that it is in the public interest to extend 

the expiration date of the Program 

because it will continue to allow the 

Exchange to list Credit Options for 

trading. As a result, the Exchange will 

remain competitive with the Over-theCounter Market with respect to swaps 

and security-based swaps. In the future, 

if the Exchange proposes an additional 

extension of the Credit Option Margin 

Pilot Program or proposes to make the 

Program permanent, then the Exchange 

will submit a filing proposing such 

amendments to the Program. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.9 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 10 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitation transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 11 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

that the proposed rule change will 

further the purposes of the Act because, 

consistent with the goals of the 

Commission at the initial adoption of 

the program, the margin requirements 

set forth by the proposed rule change 

will help to stabilize the financial 

markets. In addition, the proposed rule 

change is substantially similar to 

existing FINRA Rule 4240. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Specifically, 

the Exchange believes that, by extending 

the expiration of the Program, the 

proposed rule change will allow for 

further analysis of the Program and a 

determination of how the Program shall 

be structured in the future. In doing so, 

the proposed rule change will also serve 

to promote regulatory clarity and 

consistency, thereby reducing burdens 

on the marketplace and facilitating 

investor protection. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on 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: 

A. Significantly affect the protection 

of investors or the public interest; 

B. impose any significant burden on 

competition; and 

C. 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 12 and Rule 19b–4(f)(6) 13

thereunder. 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices 35307 

the Commission with written notice of its intent to 

file the proposed rule change, along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of the filing of the proposed rule change, or such 

shorter time as designated by the Commission. 

14For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 15 17 CFR 200.30–3(a)(12). 

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange states that waiver 

of the 30-day operative delay will allow 

it to maintain the status quo, thereby 

reducing market disruption. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest, as it will allow the 

Program to continue uninterrupted, 

thereby avoiding investor confusion that 

could result from a temporary 

interruption of the Program. For this 

reason, the Commission designates the 

proposed rule change to be operative 

upon filing.14

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 will institute proceedings 

to determine whether the proposed rule 

change 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– 

CBOE–2018–052 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2018–052. 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–CBOE–2018–052 and 

should be submitted on or before 

August 15, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15847 Filed 7–24–18; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 10477] 

Notice of Determinations: Culturally 

Significant Objects Imported for 

Exhibition Determinations: ‘‘Islam and 

the Classical Heritage’’ Exhibition 

SUMMARY: Notice is hereby given of the 

following determinations: I hereby 

determine that certain objects to be 

included in the exhibition ‘‘Islam and 

the Classical Heritage,’’ imported from 

abroad for temporary exhibition within 

the United States, are of cultural 

significance. The objects are imported 

pursuant to a loan agreement with the 

foreign owner or custodian. I also 

determine that the exhibition or display 

of the exhibit objects at the Fine Arts 

Museums of San Francisco, Legion of 

Honor, in San Francisco, California, 

from on or about August 25, 2018, until 

on or about January 27, 2019, and at 

possible additional exhibitions or 

venues yet to be determined, is in the 

national interest. I have ordered that 

Public Notice of these determinations be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: Julie 

Simpson, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6471; email: 

section2459@state.gov). The mailing 

address is U.S. Department of State, L/ 

PD, SA–5, Suite 5H03, Washington, DC 

20522–0505. 

SUPPLEMENTARY INFORMATION: The 

foregoing determinations were made 

pursuant to the authority vested in me 

by the Act of October 19, 1965 (79 Stat. 

985; 22 U.S.C. 2459), E.O. 12047 of 

March 27, 1978, the Foreign Affairs 

Reform and Restructuring Act of 1998 

(112 Stat. 2681, et seq.; 22 U.S.C. 6501 

note, et seq.), Delegation of Authority 

No. 234 of October 1, 1999, Delegation 

of Authority No. 236–3 of August 28, 

2000, and Delegation of Authority No. 

236–10 of July 6, 2018. 

Jennifer Z. Galt, 

Principal Deputy Assistant Secretary for 

Educational and Cultural Affairs, Department 

of State. 

[FR Doc. 2018–15833 Filed 7–24–18; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice: 10478] 

In the Matter of the Review of the 

Designation of al-Shabaab (and Other 

Aliases) as a Foreign Terrorist 

Organization Pursuant to Section 219 

of the Immigration and Nationality Act, 

as Amended 

Based upon a review of the 

Administrative Record assembled 

pursuant to Section 219(a)(4)(C) of the 

Immigration and Nationality Act, as 

amended (8 U.S.C. 1189(a)(4)(C)) 

(‘‘INA’’), and in consultation with the 

Attorney General and the Secretary of 

the Treasury, I conclude that the 

circumstances that were the basis for the 

designation of the aforementioned 

organization as a Foreign Terrorist 

Organization have not changed in such 

a manner as to warrant revocation of the 

designation and that the national 

security of the United States does not 

warrant a revocation of the designation. 

Therefore, I hereby determine that the 

designation of the aforementioned 

organization as a Foreign Terrorist 


daltland on DSKBBV9HB2PROD with NOTICES