18470 Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 

78 17 CFR 200.30–3(a)(12). 

1The rule requires a contract with the FCM to 

contain two provisions requiring the FCM to 

comply with existing requirements under the CEA 

and rules adopted thereunder. Thus, to the extent 

these provisions could be considered collections of 

information, the hours required for compliance 

would be included in the collection of information 

burden hours submitted by the CFTC for its rules. 

2This estimate is based on the number of funds 

that reported on Form N–SAR from June 1, 2014– 

November 30, 2014, in response to items (b) 

through (i) of question 70, that they engaged in 

futures and commodity option transactions. 

3These estimates are based on the assumption 

that 10% of fund complexes and funds enter into 

new FCM contracts each year. This assumption 

encompasses fund complexes and funds that enter 

into FCM contracts for the first time, as well as fund 

complexes and fund that change the FCM with 

whom they maintain margin accounts for 

commodities transactions. 

4This estimate is based upon the following 

calculation: (29 fund complexes × 1 hour) + (97 

funds × 0.1 hours) = 39 hours. 

5The $380 per hour figure for an attorney is from 

SIFMA’s Management & Professional Earnings in 

the Securities Industry 2013, modified by 

Commission staff to account for an 1800-hour workyear and multiplied by 5.35 to account for bonuses, 

firm size, employee benefits and overhead. 

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 Web site 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 such filing 

also will be available for inspection and 

copying at the principal offices of the 

Exchange. All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR-Phlx2015–29, and should be submitted on or 

before April 27, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.78

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07751 Filed 4–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; 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: 

Rule 17f–6, SEC File No. 270–392, OMB 

Control No. 3235–0447. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520), 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 for extension 

and approval. 

Rule 17f–6 (17 CFR 270.17f–6) under 

the Investment Company Act of 1940 

(15 U.S.C. 80a) permits registered 

investment companies (‘‘funds’’) to 

maintain assets (i.e., margin) with 

futures commission merchants 

(‘‘FCMs’’) in connection with 

commodity transactions effected on 

both domestic and foreign exchanges. 

Prior to the rule’s adoption, funds 

generally were required to maintain 

these assets in special accounts with a 

custodian bank. 

The rule requires a written contract 

that contains certain provisions 

designed to ensure important safeguards 

and other benefits relating to the 

custody of fund assets by FCMs. To 

protect fund assets, the contract must 

require that FCMs comply with the 

segregation or secured amount 

requirements of the Commodity 

Exchange Act (‘‘CEA’’) and the rules 

under that statute. The contract also 

must contain a requirement that FCMs 

obtain an acknowledgment from any 

clearing organization that the fund’s 

assets are held on behalf of the FCM’s 

customers according to CEA provisions. 

Because rule 17f–6 does not impose 

any ongoing obligations on funds or 

FCMs, Commission staff estimates there 

are no costs related to existing contracts 

between funds and FCMs. This estimate 

does not include the time required by an 

FCM to comply with the rule’s contract 

requirements because, to the extent that 

complying with the contract provisions 

could be considered ‘‘collections of 

information,’’ the burden hours for 

compliance are already included in 

other PRA submissions.1

Thus, Commission staff estimates that 

any burden of the rule would be borne 

by funds and FCMs entering into new 

contracts pursuant to the rule. 

Commission staff estimates that 

approximately 291 fund complexes and 

965 funds currently effect commodities 

transactions and could deposit margin 

with FCMs in connection with those 

transactions pursuant to rule 17f–6.2

Staff further estimates that of this 

number, 29 fund complexes and 97 

funds enter into new contracts with 

FCMs each year.3

Based on conversations with fund 

representatives, Commission staff 

understands that fund complexes 

typically enter into contracts with FCMs 

on behalf of all funds in the fund 

complex that engage in commodities 

transactions. Funds covered by the 

contract are typically listed in an 

attachment, which may be amended to 

encompass new funds. Commission staff 

estimates that the burden for a fund 

complex to enter into a contract with an 

FCM that contains the contract 

requirements of rule 17f–6 is one hour, 

and further estimates that the burden to 

add a fund to an existing contract 

between a fund complex and an FCM is 

6 minutes. 

Accordingly, Commission staff 

estimates that funds and FCMs spend 39 

burden hours annually complying with 

the information collection requirements 

of rule 17f–6.4 At $380 per hour of 

professional (attorney) time, 

Commission staff estimates that the 

annual dollar cost for the 39 hours is 

$14,820.5 These estimates 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. 

Compliance with the collection of 

information requirements of the rule is 

necessary to obtain the benefit of relying 

on the rule. 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 control number. 

Written comments are invited on: (a) 

Whether the collection of information is 

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 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 in 

writing within 60 days after this 

publication. 


tkelley on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 18471 

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

2 17 CFR 240.19b–4. 

3When applied to a market maker, sometimes 

referred to as a ‘‘maker participant identifier.’’ 

4See Securities Exchange Act Release No. 73705 

(December 1, 2015), 79 FR 72221 (December 5, 

2014)(SR–NASDAQ–2014–118). 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4) and (5). 

7The Exchange believes that the New York Stock 

Exchange (‘‘NYSE’’) Trading License Fee is 

analogous to membership fees of NASDAQ as they 

both provide access to the trading facilities of their 

respective exchanges. In this regard, NYSE assesses 

an annual fee of $50,000 for the first license held 

by a member organization, and $15,000 for each 

additional license. See https://www.nyse.com/

publicdocs/nyse/markets/nyse/NYSE_Price_

List.pdf. By contrast, NASDAQ would assess the 

proposed monthly fee of $550 per MPID ($6,600 

annually), an annual membership fee of $3,000, and 

a monthly trading rights fee of $1,000 ($12,000 

annually). See NASDAQ Rule 7001(a). 

8 15 U.S.C. 78f(b)(8). 

Please direct your written comments 

to Pamela Dyson, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Remi 

Pavlik-Simon, 100 F Street NE., 

Washington, DC 20549; or send an email 

to: PRA_Mailbox@sec.gov. 

Dated: March 31, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07754 Filed 4–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74629; File No. SR– 

NASDAQ–2015–030] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ Rule 7001(c) 

April 1, 2015. 

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 March 26, 

2015, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II and III 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to modify 

NASDAQ Rule 7001(c) concerning 

market maker participant identifier 3

(‘‘MPID’’) fees. The Exchange proposes 

to implement the proposed rule change 

on April 1, 2015. 

The text of the proposed rule change 

is available at http://nasdaq.cchwall

street.com at NASDAQ’s principal 

office, 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, 

NASDAQ 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 

NASDAQ is proposing to increase the 

fee assessed under Rule 7001(c) for 

MPIDs. MPIDs are special alphabetical 

identifiers assigned to certain brokerdealers to identify the firms’ transaction 

and quoting activity. NASDAQ 

administers the assignment of MPIDs, 

which may be requested by a brokerdealer for use on NASDAQ systems, 

reporting to the Financial Industry 

Regulatory Authority (‘‘FINRA’’), or a 

combination of the two. NASDAQ 

member firms must subscribe to at least 

one MPID upon gaining NASDAQ 

membership, but may also request 

additional MPIDs. Member firms are not 

assessed a fee for an MPID used 

exclusively for reporting information to 

facilities of FINRA, such as the FINRA/ 

NASDAQ Trade Reporting Facility. 

In December 2014, NASDAQ 

modified how the fee under Rule 

7001(c) is assessed by reducing the fee, 

but applying the fee to all MPIDs 

subscribed.4 The rule had previously 

provided that the first MPID subscribed 

was available at no cost. In making the 

change, the Exchange more closely 

aligned the fee assessed with the benefit 

provided and the costs incurred in 

offering an MPID, which includes 

regulatory oversight associated with 

each MPID. The Exchange is now 

proposing to modestly increase the fee 

assessed for subscription to an MPID 

from $500 to $550 per month. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,5 in 

general, and with Sections 6(b)(4) and 

6(b)(5) of the Act,6 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 or 

system which NASDAQ operates or 

controls, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

NASDAQ believes that the proposed 

change is reasonable because it has 

reviewed the impact of the prior change 

to the fee and is now proposing to 

modestly increase the fee to ensure that 

NASDAQ is able to realize a reasonable 

profit in addition to covering costs. The 

Exchange believes that it is reasonable 

to adjust fees from time to time so that 

it can continue to make a profit on the 

products and services it offers. Ensuring 

that its products and services provide 

the Exchange with a profit allows it 

continue to offer and enhance such 

products and services, such as MPIDs. 

Moreover, the Exchange notes that its 

membership fees will continue to 

remain substantially lower than the 

analogous fees assessed by the New 

York Stock Exchange for membership.7

The Exchange believes that the 

proposed change is both an equitable 

allocation and is not designed to permit 

unfair discrimination between member 

firms because the fee is applied to all 

member firms equally based on the 

number of MPIDs subscribed. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended.8

NASDAQ does not believe that the 

proposed rule change places an 

unnecessary burden on competition 

because it is a modest fee increase that 

will allow NASDAQ to realize a 

reasonable profit in addition to covering 

costs. As noted above, NASDAQ’s 

membership fees remain substantially 

lower than the analogous fees of the 

NYSE, and membership fees are subject 

to competition from other exchanges. 

Accordingly, if the changes proposed 

herein are unattractive to market 

participants, it is likely that NASDAQ 

will experience a decline in 

membership and/or order flow as a 

result. 


tkelley on DSK4VPTVN1PROD with NOTICES