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 


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Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Notices 11107 

4See Securities Exchange Act Release No. 70210 

(August 15, 2013), 78 FR 51758 (August 21, 2013) 

(SR–NYSE–2013–42, SR–NYSEMKT–2013–50, and 

SR–NYSEArca–2013–62) (order granting approval 

of proposed rule change relating to a corporate 

transaction in which NYSE Euronext will become 

a wholly-owned subsidiary of 

IntercontinentalExchange Group, Inc.). See also 

Securities Exchange Act Release No. 72158 (May 

13, 2014), 79 FR 28784 (May 19, 2014) (SR–NYSE– 

2014–23) (notice of filing and immediate 

effectiveness of proposed rule change relating to 

name changes of its ultimate parent, 

IntercontinentalExchange Group, Inc., and its 

indirect parents, IntercontinentalExchange, Inc. and 

NYSE Euronext Holdings LLC). 

5See Exhibit 5K to SR–NYSE–2013–42 (June 14, 

2013), at 276–278, available at https://

www.nyse.com/publicdocs/nyse/markets/nyse/rulefilings/filings/2013/NYSE-2013-42.pdf. 

6Rule 1. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 9 15 U.S.C. 78f(b)(8). 

company, with references to employees 

and officers of the Exchange. 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 1 (‘‘The Exchange’’) to replace 

references to employees and officers of 

Intercontinental Exchange Group, Inc. 

(‘‘ICE’’), the Exchange’s indirect parent 

company, with references to employees 

and officers of the Exchange. 

Prior to 2013, NYSE Euronext was the 

ultimate parent company of the 

Exchange. At that time, Rule 1 referred 

to NYSE Euronext. In 2013, ICE (then 

called IntercontinentalExchange Group, 

Inc.) acquired NYSE Euronext and its 

subsidiaries, including the Exchange.4

In connection with the acquisition, 

references to NYSE Euronext in Rule 1 

were replaced wholesale with references 

to ICE.5

As a result of the changes, Rule 1 

provides that, if the person named in a 

rule is not available, the chief executive 

officer (‘‘CEO’’) or chief regulatory 

officer (‘‘CRO’’) of the Exchange may 

designate one or more qualified 

employees of ICE to act in their place. 

Rule 1 goes on to state that, for purposes 

of a designation by the CEO, a qualified 

employee includes, among other things, 

any officer of ICE deemed by the CEO 

to possess the requisite knowledge and 

job qualifications.6

In practice, designations under Rule 1 

are limited to Exchange employees and 

officers. To more accurately reflect 

actual practice, the Exchange proposes 

to replace the references to employees 

and officers of ICE in Rule 1 with 

references to employees and officers of 

the Exchange, as follows: 

• In the first sentence of the third 

paragraph, ‘‘Intercontinental Exchange 

Group, Inc. (‘ICE’)’’ would be replaced 

with ‘‘the Exchange’’; and 

• in clause (1) of the second sentence 

of the third paragraph, ‘‘Exchange’’ 

would be added before ‘‘officer,’’ and 

‘‘of ICE’’ would be deleted. 

The proposed changes would not 

result in any practical changes regarding 

which individuals would be eligible to 

perform the functions specified in Rule 

1 and would not require the Exchange 

to change which individuals may 

currently performing these functions. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,7 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,8 in particular, because it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. 

The Exchange believes that the 

proposed rule change would promote 

clarity and transparency in its rules. The 

Exchange believes that the change 

would not be inconsistent with the 

public interest and the protection of 

investors because investors will not be 

harmed and in fact would benefit from 

the increased clarity and transparency 

that the change would introduce, 

thereby reducing potential confusion. 

The Exchange believes that the 

proposed rule change would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, protect investors and the public 

interest, because it would remove any 

potential confusion among market 

participants that may result if the 

Exchange retained references to ICE 

employees and ICE officers in Rule 1, 

adding clarity and transparency to 

Exchange rules. Moreover, the proposed 

change to the first prong of the 

definition of ‘‘qualified employee’’ for 

purposes of designation by the CEO 

would make it consistent with the first 

prong of the definition of ‘‘qualified 

employee’’ for purposes of designation 

by the CRO, reducing any potential 

confusion among market participants. 

In practice, Exchange employees and 

officers, and not ICE employees and 

officers, are designated pursuant to Rule 

1. The proposed changes would ensure 

that remained true, as under the changes 

only Exchange officers or Exchange 

employees could be qualified employees 

delegated authority by the CEO 

pursuant to Rule 1. For that reason, the 

Exchange believes that the proposed 

change would remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system and, in general, protect investors 

and the public interest. 

For these reasons, the Exchange 

believes that the proposal is consistent 

with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,9 the Exchange believes that the 

proposed rule change will not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed change is not designed to 

address any competitive issue but rather 

serve to promote clarity and 

consistency, thereby reducing burdens 

on the marketplace and facilitating 

investor protection. The proposed 

changes would be administrative and 

would apply only to the Exchange, and 

therefore would not impose any 

unnecessary competitive burden on 

third parties. 

For the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 


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11108 Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

12 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not (i) significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and; (iii) 

become operative for 30 days from the 

date on which it was filed, or such 

shorter time as the Commission may 

designate, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 10 and Rule 19b–4(f)(6) 11

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 necessary or appropriate in the 

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 will institute proceedings 

to determine whether the proposed rule 

change 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSE–2022–09 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–NYSE–2022–09. 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–NYSE–2022–09 and should 

be submitted on or before March 21, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2022–04083 Filed 2–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94293; File No. SR–Phlx– 

2022–07] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Strategy Caps 

for Reversal and Conversion and Jelly 

Roll Strategies 

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 

9, 2022, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Phlx’s Pricing Schedule at Options 7, 

Section 4, ‘‘Multiply Listed Options 

Fees (Includes options overlying 

equities, ETFs, ETNs and indexes which 

are Multiply Listed) (Excludes SPY).’’ 

The Exchange originally filed the 

proposed pricing changes on February 

1, 2022 (SR–PHLX–2022–06). On 

February 9, 2022, the Exchange 

withdrew that filing and submitted this 

filing. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/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 

Phlx proposes to amend its pricing 

within Options 7, Section 4, ‘‘Multiply 

Listed Options Fees (Includes options 

overlying equities, ETFs, ETNs and 

indexes which are Multiply Listed) 

(Excludes SPY).’’ Specifically, Phlx 

proposes to amend the daily strategy 


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