Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Notices 42959 

1Based upon an average of 4 responses per year 

and an average of 20 hours spent preparing each 

response. 

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

2 17 CFR 240.19b–4. 

3The independence policy of the board of 

directors of the Exchange’s affiliate NYSE is 

substantially the same as the Independence Policy. 

NYSE has submitted substantially the same 

proposed rule change to its independence policy as 

described herein. See SR–NYSE–2018–38. 

4 15 U.S.C. 78f. 

5The proposed text would include the definition 

of ‘‘ICE.’’ Accordingly, the Exchange proposes to 

delete the definition of ICE in ‘‘Independence 

Requirements,’’ category 1. 

There are currently three registered 

OTC derivatives dealers. The staff 

expects that three additional firms will 

register as OTC derivatives dealers 

within the next three years. The staff 

estimates that the average amount of 

time necessary to prepare and file the 

quarterly reports required by the rule is 

eighty hours per OTC derivatives 

dealer 1 and that the average amount of 

time to prepare and file the annual audit 

report is 100 hours per OTC derivatives 

dealer per year, for a total reporting 

burden of 180 hours per OTC 

derivatives dealer annually. Thus the 

staff estimates that the total industrywide reporting burden to comply with 

the requirements of Rule 17a–12 is 

1,080 hours per year (180 × 6). The 

Commission estimates that the average 

annual reporting cost per broker-dealer 

for an independent public accountant to 

examine the financial statements is 

approximately $46,300 per brokerdealer. Thus, the total industry-wide 

annual reporting cost is approximately 

$277,800 ($46,300 × 6). 

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 proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information to be 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 in 

writing within 60 days of this 

publication. 

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. 

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: August 21, 2018. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–18358 Filed 8–23–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83890; File No. SR– 

NYSEAMER–2018–42] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the 

Independence Policy of the Board of 

Directors of the Exchange 

August 20, 2018. 

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 August 

15, 2018, NYSE American LLC (the 

‘‘Exchange’’ or ‘‘NYSE American’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III, below, which Items 

have been prepared by the selfregulatory 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 amend the 

Independence Policy of the Board of 

Directors of the Exchange 

(‘‘Independence Policy’’) by (a) 

streamlining references to 

Intercontinental Exchange, Inc. (‘‘ICE’’) 

subsidiaries that are national securities 

exchanges, (b) removing obsolete 

references, and (c) adding references to 

national securities exchange affiliates of 

the Exchange. 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 

Independence Policy by (a) streamlining 

references to ICE subsidiaries that are 

national securities exchanges, (b) 

removing obsolete references, and (c) 

adding references to national securities 

exchange affiliates of the Exchange. 

Definition of ‘‘Exchange’’ 

The Independence Policy includes 

references to the Exchange and its 

national securities exchange affiliates 

New York Stock Exchange LLC 

(‘‘NYSE’’) and NYSE Arca, Inc. (‘‘NYSE 

Arca’’).3 It does not include references 

to the Exchange’s newest national 

securities exchange affiliates, NYSE 

National, Inc. (‘‘NYSE National’’) and 

Chicago Stock Exchange, Inc. (‘‘CHX’’). 

The Exchange proposes to replace lists 

of individual national securities 

exchange affiliates in the Independence 

Policy with the term ‘‘Exchange,’’ 

defined as any national securities 

exchange registered under Section 6 of 

the Exchange Act 4 and controlled, 

directly or indirectly, by ICE. The 

definition would encompass the 

Exchange, NYSE, NYSE Arca, NYSE 

National, and CHX (collectively, the 

‘‘SRO Affiliates’’). 

Specifically, the Exchange proposes to 

add a second paragraph under 

‘‘Purpose’’ with the definition of 

‘‘Exchange.’’ 5 In addition, the Exchange 

proposes to make the following changes 

in the section under ‘‘Independence 

Qualifications’’: 

• Replace ‘‘New York Stock Exchange 

LLC, NYSE Arca, Inc. and NYSE 

American LLC’’ with ‘‘an Exchange’’ in 

category 1(b) and (c); 

• Replace ‘‘New York Stock Exchange 

LLC, on NYSE Arca, Inc. or on NYSE 

American LLC’’ with ‘‘an Exchange’’ in 

category 1(d) and category 4; 

• Replace ‘‘New York Stock Exchange 

LLC, and NYSE Arca, Inc. and NYSE 

American LLC exercise’’ with ‘‘each 

Exchange exercises’’ in the final 

paragraph of category 1; 

• Replace ‘‘New York Stock Exchange 

LLC, NYSE Arca, Inc., NYSE Arca 


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42960 Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Notices 

6See Securities Exchange Act Release No. 82082 

(November 15, 2017), 82 FR 55471 (November 21, 

2017) (SR–NYSEAMER–2017–29). NYSE Group, 

Inc. (‘‘NYSE Group’’) owns all of the equity interest 

in the Exchange. In turn, NYSE Group is a whollyowned subsidiary of NYSE Holdings LLC, which is 

wholly owned by Intercontinental Exchange 

Holdings, Inc., which is wholly owned by ICE. ICE 

is a public company listed on the NYSE. 

7See Securities Exchange Act Release No. 58549 

(September 15, 2008), 73 FR 54444 (September 19, 

2008) (SR–NYSE–2008–80) (notice of filing and 

immediate effectiveness of proposed rule change 

and Amendment No. 1 thereto conforming certain 

NYSE rules to changes to NYSE incorporated rules 

recently filed by the Financial Industry Regulatory 

Authority, Inc.). 

8See Securities Exchange Act Release No. 81419 

(August 17, 2017), 82 FR 40044 (August 23, 2017) 

(SR–NYSEArca-2017–40). 

9The reference to NYSE Arca Equities, Inc. in 

category 2 would be deleted and replaced with 

‘‘each Exchange,’’ as proposed above. 

10See Securities Exchange Act Release No. 83347 

(May 30, 2018), 83 FR 26131 (June 5, 2018) (SR– 

NYSEAMER–2018–17). 

11See Securities Exchange Act Release No. 79901 

(January 30, 2017), 82 FR 9251 (February 3, 2017) 

(SR–NYSE–2016–90; SR–NYSEArca–2016–167; SR– 

NYSEMKT–2016–122). 

12See Securities Exchange Act Release No. 83635 

(July 13, 2018), 83 FR 34182 (July 17, 2017) (SR– 

CHX–2018–004). 

13See 83 FR 26131, supra note 10. 

14 15 U.S.C. 78f(b). 

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

16 15 U.S.C. 78f(b)(5). 17 15 U.S.C. 78c(a)(1). 

Equities, Inc. and NYSE American LLC’’ 

with ‘‘each Exchange’’ in category 2; 

and 

• Replace ‘‘New York Stock Exchange 

LLC, NYSE Arca, Inc. or NYSE 

American LLC’’ with ‘‘an Exchange’’ 

under ‘‘Listed Companies.’’ 

The proposed changes would make 

the requirements under ‘‘Independence 

Qualifications’’ and ‘‘Listed Companies’’ 

apply to all of the Affiliate SROs, and 

not just those specifically listed in the 

Independence Policy. In addition, it 

would make the Independence Policy 

consistent with the governing 

documents of ICE and the intermediate 

holding companies between the 

Exchange and ICE, which use the term 

‘‘Exchange.’’ 6

Removal of Obsolete References 

The NYSE no longer has allied 

members.7 Accordingly, the Exchange 

proposes to delete the text ‘‘paragraph 

(c) of Rule 2 of the New York Stock 

Exchange LLC and’’ from category 1(b) 

of ‘‘Independence Qualifications.’’ 

NYSE Arca Equities, Inc. merged with 

NYSE Arca, Inc., and therefore no 

longer exists.8 Accordingly, under 

‘‘Independence Qualifications,’’ the text 

‘‘Rule 1.1(c) of NYSE Arca Equities, 

Inc.’’ in category 1(b) and references to 

NYSE Arca Equities, Inc. in category 5 

would be deleted.9

The proposed removal of obsolete 

references would be consistent with 

changes made to the independence 

policy of the board of directors of ICE.10

References to SRO Affiliates 

NYSE National became an Affiliate 

SRO in 2017. Accordingly, the Exchange 

proposes to add ‘‘Person Associated 

with an ETP Holder’’ (as defined in Rule 

1.5 of NYSE National, Inc.);’’ in category 

1(b), and add NYSE National to category 

5 under ‘‘Independence Qualifications.’’ 

The changes would be consistent with 

changes made to the independence 

policy of the board of directors of ICE.11

CHX became an Affiliate SRO in 

2018.12 The Exchange proposes to add 

a reference to CHX to category 5 under 

‘‘Independence Qualifications.’’ As CHX 

does not have terms equivalent to 

‘‘allied members’’ or ‘‘approved 

persons,’’ the Exchange does not 

propose to add references to CHX to the 

clause following ‘‘(collectively, 

‘Members’)’’ in category (1)(b). The 

changes would be consistent with 

changes made to the independence 

policy of the board of directors of ICE.13

The Exchange proposes to update the 

link included in footnote 2 and make 

conforming changes to delete and 

replace connectors. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Exchange Act 14 in 

general, and with Section 6(b)(1) 15 in 

particular, in that it enables the 

Exchange to be so organized as to have 

the capacity to be able to carry out the 

purposes of the Exchange Act and to 

comply, and to enforce compliance by 

its exchange members and persons 

associated with its exchange members, 

with the provisions of the Exchange Act, 

the rules and regulations thereunder, 

and the rules of the Exchange. The 

Exchange also believes that the 

proposed rule change is consistent with 

Section 6(b)(5) of the Exchange Act,16 in 

that it is 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 

facilitating 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. 

The Exchange believes that the 

proposed replacement of lists of 

individual SRO Affiliates in the 

Independence Policy with the term 

‘‘Exchange’’ would contribute to the 

orderly operation of the Exchange, 

because use of the term would make the 

requirements under ‘‘Independence 

Qualifications’’ and ‘‘Listed Companies’’ 

apply to all of the Affiliate SROs, and 

not just those specifically listed in the 

Independence Policy. The Exchange Act 

definition of ‘‘exchange’’ states that 

‘‘exchange’’ ‘‘includes the market place 

and the market facilities maintained by 

such exchange.’’ 17 Accordingly, all 

market places and market facilities 

maintained by an Exchange would fall 

within the definition of Exchange and 

therefore would fall within the scope of 

the Independence Policy. In addition, 

the Exchange notes that the proposed 

change would make the Independence 

Policy consistent with the governing 

documents of ICE and the intermediate 

holding companies between the 

Exchange and ICE, which use the term 

‘‘Exchange.’’ Making the terminology 

used in the governing documents and 

the Independence Policy more 

consistent would add clarity and 

transparency to the Exchange Rules. 

For the same reason, the Exchange 

believes that the proposed replacement 

of lists of individual SRO Affiliates in 

the Independence Policy with the term 

‘‘Exchange’’ would remove 

impediments to and perfect the 

mechanism of a free and open market. 

The changes would simplify and 

streamline the Exchange’s rules while 

making them more consistent, thereby 

ensuring that persons subject to the 

Exchange’s jurisdiction, regulators, and 

the investing public can more easily 

navigate and understand the 

Independence Policy and the Exchange 

Rules. 

The Exchange believes that the 

proposed change would remove 

impediments to, and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, protect investors and the public 

interest by (a) removing obsolete 

references to NYSE allied members and 

NYSE Arca Equities, Inc., and (b) 

incorporating NYSE National and CHX 

into the text of the Independence Policy. 

The Exchange believes that such 

changes would add clarity and 

transparency to the Exchange Rules by 

removing any confusion that may result 

if the Independence Policy retained 

obsolete references or did not 

encompass all of the Affiliate SROs. For 

the same reason, the Exchange believes 

that the proposed amendments to the 

Independence Policy would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system by 

removing confusion that may result if 

the Independence Policy retained 


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Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Notices 42961 

18 15 U.S.C. 78s(b)(3)(A)(iii). 

19 17 CFR 240.19b–4(f)(6). 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6)(iii). 

22 15 U.S.C. 78s(b)(2)(B). 23 17 CFR 200.30–3(a)(12). 

obsolete references or did not include 

all of the Affiliate SROs. 

The Exchange notes that the proposed 

change would be consistent with 

changes made to the independence 

policy of the board of directors of ICE, 

and believes that making the 

Independence Policy more consistent 

with the ICE policy would add clarity 

and transparency to the Exchange Rules, 

allowing persons subject to the 

Exchange’s jurisdiction, regulators, and 

investors to more easily navigate and 

understand the Exchange Rules, 

contributing to the orderly operation of 

the Exchange. The Exchange further 

believes that the proposed changes 

would not be inconsistent with the 

public interest and the protection of 

investors because investors will not be 

harmed and in fact would benefit from 

increased clarity, thereby reducing 

potential confusion. 

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 Exchange Act. 

The proposed rule change is not 

intended to address competitive issues 

but rather is concerned solely with 

updating the Independence Policy to (a) 

streamline references to ICE subsidiaries 

that are national securities exchanges, 

(b) remove obsolete references, and (c) 

add references to NYSE National and 

CHX. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 18 and Rule 

19b–4(f)(6) thereunder.19 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

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

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 20 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),21 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 22 of the Act 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– 

NYSEAMER–2018–42 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–NYSEAMER–2018–42. 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–2018–42 and 

should be submitted on or before 

September 14, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–18293 Filed 8–23–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request Copies Available 

From: U.S. Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension for Generic ICR: 

Generic Clearance for the Collection of 

Qualitative Feedback on Agency Service 

Delivery, SEC File No. 270–789, OMB 

Control No. 3235–0731 

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 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. 

The information collection activity 

will garner qualitative customer and 

stakeholder feedback in an efficient, 

timely manner, in accordance with the 


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