Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Notices 76905 

24 17 CFR 200.30–3(a)(12). 

1Staff estimate is based on a three-year average 

of funds reporting reliance on rule 17e–1 covering 

calendar years 2022–2024. 

2 1,614 funds × 50 hours per fund = 80,700 hours. 

3The Commission’s estimates concerning the 

allocation of burden hours and the relevant wage 

rates are based on consultations with industry 

representatives and on salary information for the 

securities industry compiled by the Securities 

Industry and Financial Markets Association; the 

estimated wage figures are also based on published 

rates for senior accountants and in-house attorneys, 

modified to account for an 1800-hour work-year 

and multiplied by 5.35 to account for bonuses, firm 

size, employee benefits, and overhead, yielding 

effective hourly rates of $266 and $511, 

respectively; see Securities Industry and Financial 

Markets Association, Report on Management & 

Professional Earnings in the Securities Industry 

2013. 

4 48,420 hours × $266 per hour = $12,879,720. 

5 24,210 hours × $511 per hour = $12,371,310. 

6 8,070 hours × $4,770 per hour = $38,493,900; 

the estimate for the cost of board time as a whole 

is derived from estimates made by the staff 

regarding typical board size and compensation that 

is based on information received from fund 

representatives and publicly available sources. 

7 $12,879,720 + $12,371,310 + $38,493,900 = 

$63,744,930. 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–CboeBYX–2024–033. 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–CboeBYX–2024–033 and should be 

submitted on or before October 10, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–21286 Filed 9–18–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–224, OMB Control No. 

3235–0217] 

Proposed Collection; Comment 

Request; Extension: Rule 17e–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 et seq.) (‘‘Paperwork 

Reduction Act’’), 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 (‘‘OMB’’) for 

extension and approval. 

Rule 17e–1 (17 CFR 270.17e–1) under 

the Investment Company Act of 1940 

(15 U.S.C. 80a–1 et seq.) (the 

‘‘Investment Company Act’’) deems a 

remuneration as ‘‘not exceeding the 

usual and customary broker’s 

commission’’ for purposes of Section 

17(e)(2)(A) of the Investment Company 

Act (15 U.S.C. 80a–17(e)(2)(A)) if, 

among other things, a registered 

investment company’s (‘‘fund’s’’) board 

of directors, including a majority of the 

directors who are not interested persons 

of the fund, has adopted procedures 

reasonably designed to provide that the 

remuneration to an affiliated broker is 

reasonable and fair compared to that 

received by other brokers in connection 

with comparable transactions involving 

similar securities being purchased or 

sold on a securities exchange during a 

comparable period of time and the 

board makes and approves such changes 

as it deems necessary. In addition, each 

quarter, the board must determine that 

all transactions effected under the rule 

during the preceding quarter complied 

with the established procedures 

(‘‘review requirement’’). Rule 17e–1 also 

requires the fund to (i) maintain 

permanently in an easily accessible 

place a written copy of the procedures 

adopted by the board for complying 

with the requirements of the rule; and 

(ii) maintain for a period of six years, 

the first two in an easily accessible 

place, a written record of each 

transaction subject to the rule, setting 

forth the amount and source of the 

commission, fee, or other remuneration 

received; the identity of the broker; the 

terms of the transaction; and the 

materials used to determine that the 

transactions were effected in 

compliance with the procedures 

adopted by the board (‘‘recordkeeping 

requirement’’). The review and 

recordkeeping requirements of rule 17e– 

1 permit Commission staff to monitor 

the reasonableness and fairness of 

remuneration received by affiliated 

persons of the fund. Without the 

recordkeeping requirement, 

Commission inspectors would have 

difficulty ascertaining whether funds 

were complying with rule 17e–1. 

Based upon an analysis of fund filings 

on Form N–CEN, approximately 1,614 

funds report reliance on rule 17e–1.1

Based on staff experience and 

conversations with fund representatives, 

we estimate that the burden of 

compliance with rule 17e–1 is 

approximately 50 hours per fund per 

year. This time is spent, for example, 

reviewing the applicable transactions 

and maintaining records. Accordingly, 

we calculate the total estimated annual 

internal burden of complying with the 

review and recordkeeping requirements 

of rule 17e–1 to be approximately 

80,700 hours.2 We further estimate that, 

of these: 

• 60 percent (48,420 hours) are spent 

by senior accountants, at an estimated 

hourly wage of $266,3 for a total of 

approximately $12,879,720 per year; 4

• 30 percent (24,210 hours) are spent 

by in-house attorneys at an estimated 

hourly wage of $511, for a total of 

approximately $12,371,310 per year; 5

and 

• 10 percent (8,070) are spent by the 

funds’ board of directors at an hourly 

cost of $4,770, for a total of 

approximately $38,493,900 per year.6

Based on these estimated wage rates, 

the total cost to the industry of the hour 

burden for complying with the review 

and recordkeeping requirements of rule 

17e–1 is approximately $63,744,930.7

The Commission staff estimates that 

there is no cost burden associated with 

the information collection requirement 

of rule 17e–1 other than this cost. 

Estimates of average burden hours are 

made solely for the purposes of the 

Paperwork Reduction Act and are not 

derived from a comprehensive or even 


lotter on DSK11XQN23PROD with NOTICES1
76906 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4On August 1, 2024, the Exchange filed to amend 

the Fee Schedule (NYSEARCA–2024–63) and 

withdrew such filing on August 15, 2024 (SR– 

NYSEArca–2024–68), which latter filing the 

Exchange withdrew on August 30, 2024. 

5For purposes of this fee filing, ‘‘non-Customers’’ 

include: Lead Market Makers, NYSE Arca Market 

Makers, and Firm and Broker Dealers. The 

Exchange notes that this definition of ‘‘nonCustomers’’ does not include Professional 

Customers. 

6See proposed Fee Schedule, TRANSACTION 

FEE FOR ELECTRONIC EXECUTIONS—PER 

CONTRACT (increasing the non-Penny Take Fee for 

non-Customer from $1.10 to $1.20). The Exchange 

notes that Professional Customers are not impacted 

by this proposal and will continue to be assessed 

a non-Penny Take Fee of $1.10. See id. Also not 

impacted by this proposal are the per contract Take 

Fees for executions in Penny issues (the ‘‘Penny 

Take Fee’’), which Penny Take Fee will continue to 

be $0.50 for both non-Customers and Professional 

Customers and $0.49 for Customers. See id. 

7See, e.g., the Nasdaq Options Market LLC 

(‘‘NOM’’) Pricing Schedule at Options 7, Section 

2(1), available at: https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules/nasdaq-options-7 (assessing 

per contract Take Fees in non-Penny issues of $1.25 

for non-Customers and $0.85 for both Professionals 

and Customers); and Nasdaq BX, Pricing Schedule 

at Options 7, Section 2(1), available at: https://

listingcenter.nasdaq.com/rulebook/bx/rules/bxoptions-7 (assessing per contract Take Fees in nonPenny issues of $1.25 for non-Customers, including 

Professionals, and $0.85 [sic] for Customers). 

8The qualifying volume for Take Fee discounts 

applies to executions in all issues (Penny and nonPenny) of liquidity taking interest or a combination 

of liquidity taking and liquidity adding (i.e., posted) 

interest on behalf of Professional Customers and 

Non-Customer execution. See, e.g., Fee Schedule, 

Take Fee Discount Qualification for Non-Penny 

Issues (providing a ($0.02) per contract Take Fee 

discount to OTP Holders (including non-Customers 

and Professional Customers) that execute ‘‘[a]t least 

0.65% of TCADV from Professional Customer and 

Non-Customer Liquidity Removing interest in all 

issues, plus at least 0.15% of TCADV from posted 

interest in all issues and all account types’’; or ‘‘[a]t 

least 1.50% of TCADV from Professional Customer 

and Non-Customer Liquidity Removing interest in 

all issues’’). The TCADV (or Total Industry 

Customer equity and ETF option average daily 

volume) includes OCC calculated Customer volume 

of all types, including Complex Order Transactions 

and QCC transactions, in equity and ETF options. 

See Fee Schedule, Endnote 8. 

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

10 15 U.S.C. 78f(b)(4) and (5). 

a representative survey or study of the 

costs of Commission rules and forms. 

The collection of information under rule 

17e–1 is required to obtain the benefits 

of the rule. The information provided 

under rule 17e–1 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 OMB 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 November 18, 2024. 

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: Austin Gerig, Director/Chief Data 

Officer, Securities and Exchange 

Commission, c/o Oluwaseun Ajayi, 100 

F Street NE, Washington, DC 20549 or 

send an email to: PRA_Mailbox@

sec.gov. 

Dated: September 16, 2024. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–21427 Filed 9–18–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101019; File No. SR– 

NYSEARCA–2024–72] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Options Fee Schedule 

September 13, 2024. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that, on August 

30, 2024, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or the ‘‘Exchange’’) 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 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

NYSE Arca Options Fee Schedule (‘‘Fee 

Schedule’’) regarding certain transaction 

fees. The Exchange proposes to 

implement the fee change effective 

August 30, 2024.4 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to amend 

the Fee Schedule to modify certain 

transaction fees. The Exchange proposes 

to implement the fee change effective 

August 30, 2024. 

Currently, the Exchange assesses a fee 

for orders executed by taking liquidity 

from the disseminated market (‘‘Take 

Liquidity Fee,’’ or ‘‘Take Fee’’). For nonCustomers and Professional Customers, 

the Exchange currently charges a per 

contract Take Fee of $1.10 for 

executions in non-Penny issues (the 

‘‘non-Penny Take Fee’’).5 The Exchange 

proposes to increase the non-Penny 

Take Fee for non-Customers to $1.20 per 

contract,6 which is within the range of 

fees charged by competing option 

exchanges.7 The Exchange believes that, 

despite this proposed increase, its 

pricing structure will remain attractive 

because the Exchange will continue to 

offer discounts on non-Penny Take Fees 

to non-Customers that meet certain 

minimum monthly volume 

qualifications in average electronic 

executions per day.8

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,9 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,10 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 


lotter on DSK11XQN23PROD with NOTICES1