94838 Federal Register / Vol. 89, No. 230 / Friday, November 29, 2024 / Notices 

73 17 CFR 200.30–3(a)(12), (59). 

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. 

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

MIAX–2024–43 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–MIAX–2024–43. 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–MIAX–2024–43 and should be 

submitted on or before December 20, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.73

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–27989 Filed 11–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

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

3235–0217] 

Submission for OMB Review; 

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’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for extension of the 

previously approved collection of 

information described below. 

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 


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Federal Register / Vol. 89, No. 230 / Friday, November 29, 2024 / Notices 94839 

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. 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See proposed Rule 5–3–O, Commentary .010. 

On January 11, 2024, GBTC and BITB began trading 

on the Exchange after the Commission approved 

rule changes to list and trade shares of ‘‘BitcoinBased Commodity-Based Trust Shares’’ pursuant to 

Rule 8.201–E(c)(1) (Commodity-Based Trust 

Shares), including GBTC and BITB. See Securities 

Exchange Act Release No. 99306 (January 10, 2024) 

(Order Granting Accelerated Approval of Proposed 

Rule Changes, as Modified by Amendments 

Thereto, to List and Trade Bitcoin-Based 

Commodity-Based Trust Shares and Trust Units), 89 

FR 3008 (January 17, 2024) (SR–NYSEARCA–2023– 

44; SR–NYSEARCA–2021–90). 

On July 13, 2024, after receiving approval of the 

Commission, BTC began trading on the Exchange. 

See Securities Exchange Act Release No. 100610 

(July 26, 2024) (Order Granting Approval of 

Proposed Rule Changes, as Modified by 

Amendment No. 1, to List and Trade Share of BTC 

pursuant to NYSE Arca Rule 8.201–E (CommodityBased Trust Shares)), 89 FR 62821 (August 1, 2024) 

(SR–NYSEARCA–2023–45). 

5See Securities Exchange Act Release No. 101386 

(October 18, 2024), 89 FR 84960 (October 24, 2024) 

(SR–NYSEAMER–2024–49) (Order approving the 

listing and trading of options on the Bitcoin Funds) 

(the ‘‘American Bitcoin Options Approval Order’’). 

See also NYSE American Rule 915, Commentary 

.10(a). 

6To be eligible for options trading, ETFs and 

ETPs must satisfy the initial listing criteria set forth 

in Rule 5.3–O(g)(1) through (2). 

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 the average burden hours 

are made solely for the purposes of the 

Paperwork Reduction Act and are not 

derived from a comprehensive or even 

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. 

The 30-day public comment period 

for this information collection request 

opens on December 2, 2024 and ends on 

December 30, 2024. View the full 

information request and submit 

comments at https://www.reginfo.gov/ 

public/do/PRAViewICR?ref_

nbr=202409-3235-009 or email 

comments to MBX.OMB.OIRA.SEC_

desk_officer@omb.eop.gov. 

Dated: November 22, 2024. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–27980 Filed 11–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101713; File No. SR– 

NYSEARCA–2024–101] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To List and Trade Option 

Contracts on the Grayscale Fund, the 

Grayscale Bitcoin Mini Trust BTC, and 

the Bitwise Bitcoin ETF 

November 22, 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 

November 20, 2024, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘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 list and 

trade option contracts on the Grayscale 

Fund, (BTC), the Grayscale Bitcoin Mini 

Trust BTC, and the Bitwise Bitcoin ETF. 

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 Exchange proposes to amend 

Rule 5.3–O (Criteria for Underlying 

Securities), Rule 5.4–O (Withdrawal of 

Approval of Underlying Securities), 

Rule 5.32–O (Terms of FLEX Options), 

and Rule 6.8–O (Position Limits),) to 

allow the Exchange to list and trade 

options on the following exchangetraded products: the Grayscale Bitcoin 

Trust (BTC) (the ‘‘Grayscale Fund’’ or 

‘‘GBTC’’), the Grayscale Bitcoin Mini 

Trust BTC (the ‘‘Grayscale Mini Fund’’ 

or ‘‘BTC’’), and the Bitwise Bitcoin ETF 

(the ‘‘Bitwise Fund’’ or ‘‘BITB’’ and, 

collectively, the ‘‘Bitcoin Funds’’ or 

‘‘Funds’’).4 This proposal would align 

the Exchange’s rules with that of its 

affiliated exchange, NYSE American 

LLC.5 As such this proposal does not 

raise any new or novel issues not 

previously considered by the 

Commission. 

As discussed herein, the Exchange 

believes options on the Bitcoin Funds 

would permit hedging, and allow for 

more liquidity, better price efficiency, 

and less volatility with respect to the 

underlying Funds. Further, permitting 

the listing of such options would 

enhance the transparency and efficiency 

of markets in these and correlated 

products. 

Rule 5.3–O provides that, subject to 

certain other criteria set forth in the 

Rule,6 securities deemed appropriate for 


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