88206 Federal Register / Vol. 88, No. 243 / Wednesday, December 20, 2023 / Notices 

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

2 17 CFR 240.19b–4. 

3For purposes of the Pricing Schedule, ‘‘NDX’’ 

means A.M. or P.M. settled options on the full value 

of the Nasdaq 100® Index. See Options 7, Section 

1(c). 

TABLE 3—RULE 211(h)(2)–1 PRA ESTIMATES—Continued 

Internal initial 

burden hours 

Internal annual 

burden hours Wage rate 1 Internal time cost Annual external 

cost burden 

Provision, distribution, collection, 

and tracking of written notices 

and consents.

9 6 hours 4 ..................... $73 (rate for general clerk) ........... $438.

Total new annual burden per 

private fund.

16 hours ..................... $4,658 ......................... $3,178. 

Avg. number of private funds per 

adviser.

8 private funds ............ 8 private funds ............ 8 private funds. 

Number of advisers ........................ 12,234 advisers .......... 12,234 advisers .......... 9,176 advisers.5

Total new annual burden ........ 1,565,952 hours ......... $455,887,776 .............. $233,290,624. 

Notes: 

1The hourly wage rates in these estimates are based on (1) SIFMA’s Management & Professional Earnings in the Securities Industry 2013, modified by SEC staff 

to account for an 1,800-hour work-year and inflation, and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead; and (2) SIFMA’s Office Salaries in the Securities Industry 2013, modified by SEC staff to account for an 1,800-hour work-year and inflation, and multiplied by 2.93 to account for bonuses, firm size, employee benefits and overhead. 2This includes the internal initial burden estimate annualized over a three-year period, plus 5 hours of ongoing annual burden hours and assumes notices and consent forms will be issued once a quarter to investors; the estimates assume that most private fund advisers will rely on the disclosure-based or investor consent exceptions to the rules and thus distribute written notices and consent forms to investors (and collect, retain, and track consent forms); however, the estimates also take 

into account that certain fund agreements may not permit or otherwise contemplate the activity restricted by the rule (e.g., liquid funds may not contemplate an adviser clawback of performance compensation) and, accordingly, the estimates take into account that advisers to those funds will not prepare written notices (or, if applicable, prepare, collect, retain, and track consent forms) as contemplated by the rule. The estimate of 10 hours is based on the following calculation: ((15 initial 

hours/3 years) + 5 hours of additional ongoing burden hours) = 10 hours. 3This estimated burden is based on the estimated wage rate of $565/hour, for 5 hours, for outside legal services and $353/hour, for one hour, for outside accounting services, at the same frequency as the internal burden hours estimate; the Commission’s estimates of the relevant wage rates for external time costs, such as 

outside legal services, take into account staff experience, a variety of sources including general information websites, and adjustments for inflation. 4This includes the internal initial burden estimate annualized over a three-year period, plus 3 hours of ongoing annual burden hours; the estimate of 6 hours is 

based on the following calculation: ((9 initial hours/3 years) + 3 hours of additional ongoing burden hours) = 6 hours. 5We estimate that 75% of advisers will use outside legal services for these collections of information; this estimate takes into account that advisers may elect to 

use outside legal services (along with in-house counsel), based on factors such as adviser budget and the adviser’s standard practices for using outside legal services, as well as personnel availability and expertise. 

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 

within 30 days of publication of this 

notice by January 19, 2024 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: December 14, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27887 Filed 12–19–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99171; File No. SR–ISE– 

2023–36] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Fees for 

Options on the Nasdaq 100 Index in 

the Exchange’s Pricing Schedule at 

Options 7 

December 14, 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 December 

8, 2023, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 

fees for Nasdaq 100 Index options in the 

Exchange’s Pricing Schedule at Options 

7, Section 5A. While these amendments 

are effective upon filing, the Exchange 

has designated the proposed 

amendments to be operative on 

December 1, 2023. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/ise/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 purpose of the proposed rule 

change is to amend the fees for NDX 3


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 243 / Wednesday, December 20, 2023 / Notices 88207 

4 ‘‘Non-Priority Customers’’ include Market 

Makers, Non-Nasdaq ISE Market Makers (FarMMs), 

Firm Proprietary/Broker-Dealers, and Professional 

Customers. 

5A ‘‘Priority Customer’’ is a person or entity that 

is not a broker/dealer in securities, and does not 

place more than 390 orders in listed options per day 

on average during a calendar month for its own 

beneficial account(s), as defined in Nasdaq ISE 

Options 1, Section 1(a)(37). 

6 ‘‘Non-Select Symbols’’ are options overlying all 

symbols excluding Select Symbols. ‘‘Select 

Symbols’’ are options overlying all symbols listed 

on the Nasdaq ISE that are in the Penny Interval 

Program. 

7See generally Options 7, Section 4 (setting forth 

maker/taker fees for Non-Select Symbols, including 

NDX, pursuant to which Priority Customers are 

assessed no fees today). In addition, the Exchange 

does not offer the tiered Priority Customer complex 

order rebates in Section 4 for orders in NDX. See 

Options 7, Section 4, note 4. 

8 Id. 

9For example, Cboe Options (‘‘Cboe’’) currently 

assesses a $0.25 per contract customer transaction 

fee for MXEA and MXEF options, $0.35 per contract 

for OEX and XEO options, and $0.36 per contract 

(if premium <$1.00) or $0.45 per contract (if 

premium >= $1.00) for SPX and SPESG options. See 

Cboe Fees Schedule. 

10See proposed note 2 of Options 7, Section 5.A. 

11For example, Cboe currently assesses 

customers a $0.25 per contract exotic surcharge and 

a $0.21 per contract execution surcharge in SPX and 

SPESG options. See Cboe Fees Schedule. In 

addition, the Exchange’s affiliate, Nasdaq Phlx LLC 

(‘‘Phlx’’) current assesses customers a $0.25 per 

contract complex surcharge for executions in 

singly-listed U.S. dollar-settled foreign currency 

options. See Phlx Options 7, Section 5.D. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(4) and (5). 

14By way of example, in analyzing an obvious 

error, the Exchange would have additional data 

points available in establishing a theoretical price 

for a multiply listed option as compared to a 

proprietary product, which requires additional 

analysis and administrative time to comply with 

Exchange rules to resolve an obvious error. 

15See supra note 9. 

16QQQ is an exchange-traded fund based on the 

same Nasdaq 100 Index as NDX, NQX, and XND. 

17The Exchange has not amended NDX 

transaction fees since 2018, so the fees have 

remained at $0.75 per contract for Non-Customers 

and $0.00 for Priority Customers during this time. 

See Securities Exchange Act Release No. 83144 

(May 1, 2018), 83 FR 20107 (May 7, 2018) (SR–ISE– 

2018–38). 

18See supra note 9 and 11. 

in Options 7, Section 5A. The Exchange 

initially filed the proposed pricing 

changes on November 30, 2023 (SR– 

ISE–2023–34). On December 8, 2023, 

the Exchange withdrew that filing and 

submitted this filing. 

Today, the Exchange assesses a 

transaction fee of $0.75 per contract for 

all Non-Priority Customer 4 regular NDX 

orders. Priority Customers 5 currently 

receive free executions in regular NDX 

orders. In accordance with note 1 of 

Options 7, Section 5.A, the applicable 

complex order fees for Non-Select 

Symbols 6 in Options 7, Section 4 apply 

to all executions in complex NDX 

orders.7 As such, Priority Customers 

currently receive free executions in 

complex NDX orders.8

The Exchange now proposes to begin 

assessing all Priority Customer NDX 

executions (i.e., regular and complex) a 

$0.25 per contract transaction fee. In 

connection with this change, the 

Exchange also proposes to amend note 

1 of Options 7, Section 5.A to exclude 

Priority Customer complex NDX 

executions from the Section 4 complex 

fees, and to make clear that Priority 

Customer complex NDX executions will 

now be assessed a $0.25 per contract fee 

instead. As amended, note 1 will 

provide that for all executions in 

complex NDX orders for Non-Priority 

Customers, the applicable complex 

order fees for Non-Select Symbols in 

Section 4 will apply. Further, for all 

executions in complex NDX orders for 

Priority Customers, the fee will be $0.25 

per contract. The Exchange notes that 

the proposed $0.25 per contract fee 

amount is in line with customer 

transaction fees assessed on other index 

products.9 The Exchange also proposes 

to assess a surcharge of $0.25 per 

contract to all Priority Customer 

complex executions in NDX.10 As such, 

Priority Customer complex executions 

in NDX will be assessed a total of $0.50 

per contract (i.e., the base $0.25 per 

contract fee plus the $0.25 per contract 

surcharge). The Exchange notes that the 

proposed surcharge amount is within 

the range of surcharges assessed for 

customer transactions in other products 

at other options exchanges.11

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,12 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,13 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Exchange believes it is reasonable 

to begin assessing a $0.25 per contract 

transaction fee to all Priority Customer 

executions (i.e., regular and complex) in 

NDX and a $0.25 per contract surcharge 

to complex Priority Customer 

executions in NDX because the 

proposed pricing reflects the proprietary 

nature of this product. Similar to other 

proprietary products like options 

overlying the Nasdaq 100 Reduced 

Value Index (‘‘NQX’’) and the Nasdaq 

100 Micro Index (‘‘XND’’), the Exchange 

seeks to recoup the operational costs of 

listing proprietary products.14 Also, 

pricing by symbol is a common practice 

on many U.S. options exchanges as a 

means to incentivize order flow to be 

sent to an exchange for execution in 

particular products. Other options 

exchanges price by symbol.15 Further, 

the Exchange notes that market 

participants are offered different ways to 

gain exposure to the Nasdaq 100 Index, 

whether through the Exchange’s 

proprietary products like options 

overlying NDX, NQX, or XND, or 

separately through multi-listed options 

overlying Invesco QQQ Trust 

(‘‘QQQ’’).16 Offering such products 

provides market participants with a 

variety of choices in selecting the 

product they desire to utilize in order to 

gain exposure to the Nasdaq 100 Index. 

When exchanges are able to recoup 

costs associated with offering 

proprietary products, it incentivizes 

growth and competition for the 

innovation of additional products. 

The Exchange further believes that the 

proposed pricing described above is 

reasonable because the proposal is 

designed to update fees for the 

Exchange’s services to reflect their 

current value—rather than their value 

when the Exchange last updated NDX 

pricing five years ago 17—based on the 

Exchange’s ability to deliver value to its 

customers by offering proprietary 

products on its market like NDX. 

While the pricing for Priority 

Customer NDX orders is increasing 

under this proposal, the Exchange 

believes that the proposal is reasonable 

and would continue to incentivize 

market participants to transact in 

Priority Customer NDX orders because 

Priority Customers would continue to be 

charged at a lower rate for NDX than 

Non-Priority Customers. As a result, the 

Exchange believes that the proposed 

pricing is structured in a way that 

continues to encourage market 

participants, especially Priority 

Customers, to transact in NDX on ISE. 

An increase in Priority Customer order 

flow would benefit all market 

participants through quality of order 

interaction and increased trading 

opportunities. As noted above, the 

proposed fee and surcharge amounts are 

in line with customer fees and 

surcharges assessed on other index 

products at other options exchanges.18

The Exchange’s proposal to assess a 

$0.25 per contract transaction fee to all 

Priority Customer NDX orders and to 

assess a $0.25 per contract surcharge to 

complex Priority Customer NDX orders 

is equitable and not unfairly 

discriminatory it will apply uniformly 

to all similarly situated market 


ddrumheller on DSK120RN23PROD with NOTICES1
88208 Federal Register / Vol. 88, No. 243 / Wednesday, December 20, 2023 / Notices 

19As described above, regular Priority Customer 

NDX executions will be assessed $0.25 per contract 

under this proposal, and complex Priority Customer 

NDX executions will be assessed a total of $0.50 per 

contract under this proposal (i.e., base fee plus 

complex surcharge). Regular Non-Priority Customer 

NDX executions will continue to be assessed $0.75 

per contract. As it relates to complex Non-Priority 

Customer NDX executions, the Exchange notes that 

in certain instances, Non-Priority Customers may be 

assessed a lower complex fee in Section 4 than the 

$0.50 complex fee proposed for Priority Customers. 

Specifically, Non-Priority Customers could be 

assessed the $0.20 per contract complex Maker Fee 

for Non-Select Symbols (NDX is a Non-Select 

Symbol). However, the Non-Priority Customer 

complex Taker Fee for Non-Select Symbols still 

remains at a much higher level ($1.10) than the 

$0.50 complex fee proposed for Priority Customer 

NDX executions. See Options 7, Section 4. 

20For example, Priority Customers presently 

receive free executions in regular and complex 

orders, as discussed earlier in this filing. 

21See supra notes 9 and 11. 

22 15 U.S.C. 78s(b)(3)(A)(ii). 23 17 CFR 240.19b–4(f)(2). 24 17 CFR 200.30–3(a)(12). 

participants. The Exchange believes it is 

equitable and not unfairly 

discriminatory to continue charging 

Priority Customers NDX orders at a 

generally lower rate than Non-Priority 

Customers NDX orders 19 as the 

Exchange has historically provided 

more favorable pricing to Priority 

Customers in its Pricing Schedule.20

Priority Customer orders bring valuable 

liquidity to the market by providing 

more trading opportunities, which, in 

turn, attracts Market Makers. An 

increase in the activity of these market 

participants in turn facilitates tighter 

spreads, which may cause an additional 

corresponding increase in order flow to 

the benefit of all market participants. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. In terms of 

inter-market competition, the Exchange 

notes that it operates in a highly 

competitive market in which market 

participants can readily favor competing 

venues if they deem fee levels at a 

particular venue to be excessive, or 

rebate opportunities available at other 

venues to be more favorable. As noted 

above, market participants are offered 

an opportunity to transact in NDX, 

NQX, or XND, or separately execute 

options overlying QQQ. Offering these 

products provides market participants 

with a variety of choices in selecting the 

product they desire to use to gain 

exposure to the Nasdaq 100 Index. 

Furthermore, the proposed fee amounts 

are in line with customer transaction 

fees and surcharges assessed on other 

products at another options exchange.21

Further, the Exchange does not 

believe that its proposal to begin 

assessing a $0.25 per contract 

transaction fee for all Priority Customer 

NDX orders and $0.25 per contract 

surcharge for complex Priority Customer 

NDX orders will impose an undue 

burden on intra-market competition 

because Priority Customers will 

continue to be assessed more favorable 

pricing than Non-Priority Customers for 

NDX orders, which is in line with how 

the Exchange historically assessed fees 

for these market participants. As 

discussed above, Priority Customer 

order flow enhances liquidity on the 

Exchange for the benefit of all market 

participants. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 22 and Rule 

19b–4(f)(2) 23 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: (i) 

necessary or appropriate in the public 

interest; (ii) for the protection of 

investors; or (iii) 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

ISE–2023–36 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–ISE–2023–36. 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 the 

Exchange. 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–ISE–2023–36 and should be 

submitted on or before January 10, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27914 Filed 12–19–23; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Data Collection Available for Public 

Comments 

ACTION: 60-Day notice and request for 

comments. 

SUMMARY: The Small Business 

Administration (SBA) intends to request 

approval, from the Office of 

Management and Budget (OMB) for the 

collection of information described 

below. The Paperwork Reduction Act 

(PRA) requires federal agencies to 

publish a notice in the Federal Register 

concerning each proposed collection of 

information before submission to OMB, 


ddrumheller on DSK120RN23PROD with NOTICES1