Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Notices 11105 

16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 80a. 

2As amended in 2003, rule 17f–4 permits any 

registered investment company, including a unit 

investment trust or a face-amount certificate 

company, to use a security depository. See, Custody 

of Investment Company Assets With a Securities 

Depository, Investment Company Act Release No. 

25934 (Feb. 13, 2003) (68 FR 8438 (Feb. 20, 2003)). 

The term ‘‘fund’’ or ‘‘fund series’’ is used in this 

Notice to mean a registered investment company. 

3The Commission staff estimates that, as 

permitted by the rule, an estimated 4% of all active 

funds may deal directly with a securities depository 

instead of using an intermediary. The Commission 

estimates that, as permitted by the rule, an 

estimated 4% of all funds may deal directly with 

a securities depository. The number of custodians, 

including the number of sub-custodians is 

estimated from information collected from Form N– 

CENs filed with the Commission as of October 15, 

2021. In addition, the Commission staff estimates 

the number of possible securities depositories by 

adding the 12 Federal Reserve Banks and one active 

registered clearing agency. The Commission staff 

recognizes that not all of these entities may 

currently be acting as a securities depository for 

fund securities. 

Tuesday and Thursday expirations will 

impose any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act because SPX 

options (including SPXW options) are 

proprietary Exchange products. Other 

exchanges offer nonstandard expiration 

programs for index options and are 

welcome to similarly propose to list 

Tuesday and Thursday options on those 

indexes. To the extent that the addition 

of SPXW options that expire on 

Tuesdays and Thursdays available for 

trading on the Exchange makes the 

Exchange a more attractive marketplace 

to market participants at other 

exchanges, such market participants are 

free to elect to become market 

participants on the Exchange. 

The proposed rule change to clarify 

the trading session referred to in Rule 

4.13(e)(4) will not burden intramarket or 

intermarket competition because it is 

not intended to be a competitive rule 

change but instead is intended to add 

clarity to the Rules and conform the 

provision to the Rule that governs 

Exchange trading hours generally. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the Exchange consents, the Commission 

will: 

A. By order approve or disapprove 

such proposed rule change, or 

B. Institute proceedings to determine 

whether the proposed rule change 

should be 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– 

CBOE–2022–005 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–CBOE–2022–005. 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–CBOE–2022–005, and 

should be submitted on or before March 

21, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2022–04082 Filed 2–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–232, OMB Control No. 

3235–0225] 

Submission for OMB Review; 

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–4 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 350l–3520) (the ‘‘Paperwork 

Reduction Act’’), the Securities and 

Exchange Commission (the 

‘‘Commission’’) has submitted to the 

Office of Management and Budget a 

request for extension of the previously 

approved collection of information 

discussed below. 

Section 17(f) (15 U.S.C. 80a–17(f)) 

under the Investment Company Act of 

1940 (the ‘‘Act’’) 1 permits registered 

management investment companies and 

their custodians to deposit the securities 

they own in a system for the central 

handling of securities (‘‘securities 

depositories’’), subject to rules adopted 

by the Commission. 

Rule 17f–4 (17 CFR 270.17f–4) under 

the Act specifies the conditions for the 

use of securities depositories by funds 2

and their custodians. 

The Commission staff estimates that 

794 respondents (including an 

estimated 768 funds that may deal 

directly with a securities depository, an 

estimated 13 custodians, including 7 

sub-custodians and 13 possible 

securities depositories) 3 are subject to 


khammond on DSKJM1Z7X2PROD with NOTICES
11106 Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Notices 

4Based on responses to Items C.12 of Form N– 

CEN (17 CFR 274.101), approximately 96 percent of 

funds’ custodians maintain some or all fund 

securities in a securities depository pursuant to rule 

17f–4. 

5The Commission staff assumes that new funds 

relying on 17f–4 would choose to use a custodian 

instead of directly dealing with a securities 

depository because of the high costs associated with 

maintaining an account with a securities 

depository. Thus, new funds would not be subject 

to this condition. 

6The estimated 13 custodians would handle 

requests for reports from 9,984 fund clients 

(approximately 768 fund clients per custodian) and 

the depositories from the remaining 768 funds that 

choose to deal directly with a depository. It is our 

understanding based on staff conversations with 

industry representatives that custodians and 

depositories transmit these reports to clients in the 

normal course of their activities as a good business 

practice regardless of whether they are requested. 

Therefore, for purposes of this PRA estimate, the 

Commission staff assumes that custodians transmit 

the reports to all fund clients. 

7 (9,984 fund clients × 2 reports) = 19,968 

transmissions. The staff estimates that each 

transmission would take approximately 7 minutes 

for a total of approximately 2,330 hours (7 minutes 

× 19,968 transmissions). 

8 (768 fund clients who may deal directly with a 

securities depository × 2 reports) = 1,536 

transmissions. The staff estimates that each 

transmission would take approximately 7 minutes 

for a total of approximately 179 hours (7 minutes 

× 1,536 transmissions). 

9 2,230 hours for custodians and 179 hours for 

securities depositories. 

10The Commission staff assumes that new funds 

relying on 17f–4 would choose to use a custodian 

instead of directly dealing with a securities 

depository because of the high costs associated with 

maintaining an account with a securities 

depository. Thus new funds would not be subject 

to this condition. 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

the requirements in rule 17f–4. To the 

extent that Rule 17f–4(c)(4) provides 

that a sub-custodian can be qualified as 

a custodian for purposes of Rule 17f–4, 

sub-custodians are included as 

‘‘custodians’’ in the estimates of burden 

hours and costs. While the rule is 

elective, but most, if not all, funds use 

depository custody arrangements.4

Rule 17f–4 contains two general 

conditions. First, a fund’s custodian 

must be obligated, at a minimum, to 

exercise due care in accordance with 

reasonable commercial standards in 

discharging its duty as a securities 

intermediary to obtain and thereafter 

maintain financial assets. If the fund 

deals directly with a depository, the 

depository’s contract or written rules for 

its participants must provide that the 

depository will meet similar obligations. 

All funds that deal directly with 

securities depositories in reliance on 

rule 17f–4 should have either modified 

their contracts with the relevant 

securities depository, or negotiated a 

modification in the securities 

depository’s written rules when the rule 

was amended. Therefore, we estimate 

there is no ongoing burden associated 

with this collection of information.5

Second, the custodian must provide, 

promptly upon request by the fund, 

such reports as are available about the 

internal accounting controls and 

financial strength of the custodian. If a 

fund deals directly with a depository, 

the depository’s contract with or written 

rules for its participants must provide 

that the depository will provide similar 

financial reports. Custodians and 

depositories usually transmit financial 

reports to funds twice each year.6 The 

Commission staff estimates that 13 

custodians, including 7 sub-custodians, 

spend approximately 2,330 hours (by 

support staff) annually in transmitting 

such reports to funds.7 In addition, 

approximately 768 funds (i.e., three 

percent of all funds) deal directly with 

a securities depository and may request 

periodic reports from their depository. 

Commission staff estimates that 

depositories spend approximately 179 

hours (by support staff) annually 

transmitting reports to the 768 funds.8

The total annual burden estimate for 

compliance with rule 17f–4’s reporting 

requirement is therefore 2,509 hours.9

If a fund deals directly with a 

securities depository, rule 17f–4 

requires that the fund implement 

internal control systems reasonably 

designed to prevent an unauthorized 

officer’s instructions (by providing at 

least for the form, content, and means of 

giving, recording, and reviewing all 

officers’ instructions). All funds that 

seek to rely on rule 17f–4 should have 

already implemented these internal 

control systems when the rule was 

amended. Therefore, there is no ongoing 

burden associated with this collection of 

information requirement.10

Based on the foregoing, the 

Commission staff estimates that the total 

annual hour burden of the rule’s 

collection of information requirements 

is 2,509 hours. 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act. This estimate 

is not derived from a comprehensive or 

even representative survey or study of 

the costs of Commission rules. 

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. 

The public may view the background 

documentation for this information 

collection at the following website, 

www.reginfo.gov. Comments should be 

directed to: (i) Desk Officer for the 

Securities and Exchange Commission, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503, 

or by sending an email to: 

Lindsay.M.Abate@omb.eop.gov; and (ii) 

David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John R. 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. Written comments 

and recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice March 30, 2022 to 

www.reginfo.gov/public/do/PRAMain. 

Find this particular information 

collection by selecting ‘‘Currently under 

30-day Review—Open for Public 

Comments’’ or by using the search 

function. 

Dated: February 23, 2022. 

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2022–04171 Filed 2–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94297; File No. SR–NYSE– 

2022–09] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Rule 

1 To Replace References to Employees 

and Officers of Intercontinental 

Exchange Group, Inc. 

February 22, 2022. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on February 

14, 2022, New York Stock Exchange 

LLC (‘‘NYSE’’ 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 

Rule 1 (‘‘The Exchange’’) to replace 

references to employees and officers of 

Intercontinental Exchange Group, Inc., 

the Exchange’s indirect parent 


khammond on DSKJM1Z7X2PROD with NOTICES