9318 Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Notices 

1 44 U.S.C. 3501–3520. 

2The rule defines a Financial Intermediary as: (i) 

Any broker, dealer, bank, or other person that holds 

securities issued by the fund in nominee name; (ii) 

a unit investment trust or fund that invests in the 

fund in reliance on section 12(d)(i)(E) of the Act; 

and (iii) in the case of a participant directed 

employee benefit plan that owns the securities 

issued by the fund, a retirement plan’s 

administrator under section 316(A) of the Employee 

Retirement Security Act of 1974 (29 U.S.C. 

1002(16)(A) or any person that maintains the plans’ 

participant records. Financial Intermediary does not 

include any person that the fund treats as an 

individual investor with respect to the fund’s 

policies established for the purpose of eliminating 

or reducing any dilution of the value of the 

outstanding securities issued by the fund. Rule 22c– 

2(c)(1). 

the risks are manageable. Id., 

Attachment A. 

The Postal Service filed much of the 

supporting materials, including the 

Governors’ Decision and the specific 

Express Mail & Priority Mail Contract 5, 

under seal. In its Request, the Postal 

Service maintains that the contract and 

related financial information, including 

the customer’s name and the 

accompanying analyses that provide 

prices, terms, conditions, and financial 

projections should remain under seal. 

Id. at 2–3. 

II. Notice of Filings 

The Commission establishes Docket 

Nos. MC2009–18 and CP2009–25 for 

consideration of the Request pertaining 

to the proposed Express Mail & Priority 

Mail Contract 5 product and the related 

contract, respectively. In keeping with 

practice, these dockets are addressed on 

a consolidated basis for purposes of this 

order; however, future filings should be 

made in the specific docket in which 

issues being addressed pertain. 

Interested persons may submit 

comments on whether the Postal 

Service’s filings in the captioned 

dockets are consistent with the policies 

of 39 U.S.C. 3632, 3633, or 3642 and 39 

CFR part 3015 and 39 CFR 3020 subpart 

B. Comments are due no later than 

March 4, 2009. The public portions of 

these filings can be accessed via the 

Commission’s Web site (http:// 

www.prc.gov). 

The Commission appoints Paul L. 

Harrington to serve as Public 

Representative in these dockets. 

III. Ordering Paragraphs 

It is Ordered: 

1. The Commission establishes Docket 

Nos. MC2009–18 and CP2009–25 for 

consideration of the matters raised in 

each docket. 

2. Pursuant to 39 U.S.C. 505, Paul L. 

Harrington is appointed to serve as 

officer of the Commission (Public 

Representative) to represent the 

interests of the general public in these 

proceedings. 

3. Comments by interested persons in 

these proceedings are due no later than 

March 4, 2009. 

4. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Steven W. Williams, 

Secretary. 

[FR Doc. E9–4415 Filed 3–2–09; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 22c–2; SEC File No. 270–541; OMB 

Control No. 3235–0620. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) 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. 

Rule 22c–2 (17 CFR 270.22c–2 

‘‘Mutual Fund Redemption Fees’’) 

under the Investment Company Act of 

1940 (15 U.S.C. 80a) (the ‘‘Investment 

Company Act’’ or ‘‘Act’’) requires the 

board of directors (including a majority 

of independent directors) of most 

registered investment companies 

(‘‘funds’’) to either approve a 

redemption fee of up to two percent or 

determine that imposition of a 

redemption fee is not necessary or 

appropriate for the fund. Rule 22c–2 

also requires a fund to enter into written 

agreements with their financial 

intermediaries (such as broker-dealers 

and retirement plan administrators) 

under which the fund, upon request, 

can obtain certain shareholder identity 

and trading information from the 

intermediaries. The written agreement 

must also allow the fund to direct the 

intermediary to prohibit further 

purchases or exchanges by specific 

shareholders that the fund has 

identified as being engaged in 

transactions that violate the fund’s 

market timing policies. These 

requirements enable funds to obtain the 

information that they need to monitor 

the frequency of short-term trading in 

omnibus accounts and enforce their 

market timing policies. 

The rule includes three ‘‘collections 

of information’’ within the meaning of 

the Paperwork Reduction Act of 1995 

(‘‘PRA’’).1 First, the rule requires boards 

to either approve a redemption fee of up 

to two percent or determine that 

imposition of a redemption fee is not 

necessary or appropriate for the fund. 

Second, funds must enter into 

information sharing agreements with all 

of their ‘‘financial intermediaries’’ 2 and 

maintain a copy of the written 

information sharing agreement with 

each intermediary in an easily 

accessible place for six years. Third, 

pursuant to the information sharing 

agreements, funds must have systems 

that enable them to request frequent 

trading information upon demand from 

their intermediaries, and to enforce any 

restrictions on trading required by funds 

under the rule. 

The collections of information created 

by Rule 22c–2 are necessary for funds to 

effectively assess redemption fees, 

enforce their policies in frequent 

trading, and monitor short-term trading, 

including market timing, in omnibus 

accounts. These collections of 

information are mandatory for funds 

that redeem shares within seven days of 

purchase. The collections of information 

also are necessary to allow Commission 

staff to fulfill its examination and 

oversight responsibilities. 

Rule 22c–2(a)(1) requires the board of 

directors of all registered investment 

companies and series thereof (except for 

money market funds, ETFs, or funds 

that affirmatively permit short-term 

trading of its securities) to approve a 

redemption fee for the fund, or instead 

make a determination that a redemption 

fee is either not necessary or appropriate 

for the fund. Commission staff 

understands that the boards of all funds 

currently in operation have undertaken 

this process for the funds they currently 

oversee, and the rule does not require 

boards to review this determination 

periodically once it has been made. 

Accordingly, we expect that only boards 

of newly registered funds or newly 

created series thereof would undertake 

this determination. Commission staff 

estimates that approximately 300 funds 

or series thereof (excluding money 

market funds and ETFs) are newly 

formed each year and would need to 

make this determination. 

Commission staff estimates that it 

takes approximately 2 hours of the 

boards’ time, as a whole, to approve a 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Notices 9319 

3This calculation is based on the following 

estimates: (2 hours of board time + 3 hours of 

internal counsel time + 8 hours of compliance time 

= 13 hours). 

4This calculation is based on the following 

estimates: (13 hours × 300 funds = 3,900 hours). 

5 ICI, 2008 Investment Company Fact Book at Fig 

1.7 (2008) (http://www.ici.org/stats/latest/2008_

factbook.pdf). 

6This estimate is based on the following 

calculations: (4 hours × 5 new intermediaries = 20 

hours). 7 ICI, 2008 Investment Company Fact Book at Fig 

1.7 (2008) (http://www.ici.org/stats/latest/2008_

factbook.pdf). 8Commission staff understands that funds 

generally use a standard information sharing 

agreement, drafted by the fund or an outside entity, 

and then modifies that agreement to according the 

requirements of each intermediary. 9This estimate is based on the following 

calculations: (4 hours × 100 intermediaries = 400 

hours). 

10This estimate is based on the following 

calculations: (22 fund groups × 400 hours + 8,800 

hours). 

11This estimate is based on the following 

calculations: (10 minutes × 680 fund groups = 6,800 

minutes); (6,800 minutes / 60 = 113 hours). 

12This estimate is based on the following 

calculations: (13,600 hours + 8,800 hours + 113 

hours = 22,513 hours). 

13This estimate is based on the following 

calculations: (3,900 hours (board determination) + 

22,513 hours (information sharing agreements) = 

26,413 total hours). 

redemption fee or make the required 

determination. In addition, Commission 

staff estimates that it takes compliance 

personnel of the fund approximately 8 

hours to prepare trading, compliance, 

and other information regarding the 

fund’s operations to enable the board to 

make its determination, and takes 

internal counsel of the fund 

approximately 3 hours to review this 

information and present its 

recommendations to the board. 

Therefore, for each fund board that 

undertakes this determination process, 

Commission staff estimates it expends 

approximately 13 hours.3 As a result, 

Commission staff estimates that the total 

time spent for all funds on this process 

is 3900 hours.4

Rule 22c–2(a)(2) requires a fund to 

enter into information sharing 

agreements with each of its financial 

intermediaries. Commission staff 

understands that all currently registered 

funds have already entered into such 

agreements with their intermediaries. 

Funds enter into new relationships with 

intermediaries from time to time, 

however, which requires them to enter 

into new information sharing 

agreements. Commission staff 

understands that, in general, funds enter 

into information-sharing agreement 

when they initially establish a 

relationship with an intermediary, 

which is typically executed as an 

addendum to the distribution 

agreement. Commission staff estimates 

that there are approximately 7,254 openend fund series currently in operation 

(excluding money market funds and 

ETFs). However, the Commission staff 

understands that most shareholder 

information agreements are entered into 

by the fund group (a group of funds 

with a common investment adviser), 

and estimates that there are currently 

680 currently active fund groups.5

Commission staff estimates that, on 

average, each active fund group enters 

into relationships with approximately 5 

new intermediaries each year. 

Commission staff understands that 

funds generally use a standard 

information sharing agreement, drafted 

by the fund or an outside entity, and 

modifies that agreement according to 

the requirements of each intermediary. 

Commission staff estimates that 

negotiating the terms and entering into 

an information sharing agreement takes 

a total of approximately 4 hours of 

attorney time per intermediary 

(representing 2.5 hours of fund attorney 

time and 1.5 hours of intermediary 

attorney time). Accordingly, 

Commission staff estimates that each 

existing fund group expends 20 hours 

each year 6 to enter into new 

information sharing agreements, and all 

existing fund groups incur a total of 

13,600 hours. 

In addition, newly created funds 

advised by new entrants (effectively 

new fund groups) must enter into 

information sharing agreements with all 

of their financial intermediaries. 

Commission staff estimates that there 

are approximately 22 new funds or fund 

groups that form each year that will 

have to enter into information sharing 

agreements with each of their 

intermediaries.7 Commission staff 

estimates that funds and fund groups 

formed by new advisers typically have 

relationships with significantly fewer 

intermediaries than existing fund 

groups, and estimates that new fund 

groups will typically enter into 

approximately 100 information sharing 

agreements with their intermediaries 

when they begin operations.8 As 

discussed previously, Commission staff 

estimates that it takes approximately 4 

hours of attorney time per intermediary 

to enter into information sharing 

agreements. Therefore, Commission staff 

estimates that each newly formed fund 

group will incur 400 hours of attorney 

time,9 and all newly formed fund 

groups will incur a total of 8800 hours 

to enter into information sharing 

agreements with their intermediaries.10

Rule 22c–2(a)(3) requires funds to 

maintain records of all information 

sharing agreements for 6 years in an 

easily accessible place. Commission 

staff estimates that there are 

approximately 7,254 open-end fund 

series currently in operation (excluding 

money market funds and ETFs). 

However, the Commission staff 

anticipates that most shareholder 

information agreements will be stored at 

the fund group level and estimates that 

there are currently approximately 680 

fund groups. Commission staff estimates 

that maintaining records of information 

sharing agreements requires 

approximately 10 minutes of time spent 

by a general clerk per fund, each year. 

Accordingly, Commission staff 

estimates that all funds will incur 

approximately 113 hours 11 in 

complying with the recordkeeping 

requirement of rule 22c–2(a)(3). 

Therefore, Commission staff estimates 

that to comply with the information 

sharing agreement requirements of rule 

22c–2(a)(1) and (3) requires a total of 

22,513 hours.12

The Commission staff estimates that 

on average, each fund group requests 

shareholder information once a week, 

and gives instructions regarding the 

restriction of shareholder trades every 

day, for a total of 417 responses related 

to information sharing systems per fund 

group each year, and a total 283,560 

responses for all fund groups annually. 

In addition, the staff estimates that 

funds make 300 responses related to 

board determinations, 3,400 responses 

related to new intermediaries of existing 

fund groups, 2,200 responses related to 

new fund group information sharing 

agreements, and 680 responses related 

to recordkeeping, for a total of 6,580 

responses related to the other 

requirements of rule 22c–2. Therefore, 

the Commission staff estimates that the 

total number of responses is 290,140 

(283,560 + 6,580 = 290,140). 

Commission staff also estimates that 

there are 7,254 potential respondents 

making 290,140 responses each year. 

The Commission staff estimates that the 

total hour burden for rule 22c–2 is 

26,413 hours.13

Rule 22c–2 requires funds to enter 

into information sharing agreements 

with their intermediaries that enable 

funds to, upon request (i) be provided 

certain information regarding 

shareholders and their trades that are 

held through a financial intermediary or 

an indirect intermediary, and (ii) require 

the intermediary to execute instructions 

from the fund restricting or prohibiting 

further purchases or exchanges by 

shareholders that violate the fund’s 

frequent trading policies. As a result of 

this requirement, some funds and 

mstockstill on PROD1PC66 with NOTICES

9320 Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Notices 

14This estimate is based on the following 

calculations: (100,000 transaction requests × 

0.0025¢ = $250); ($250 × 52 weeks = $13,000). 

15This estimate is based on the following 

calculation: (680 fund groups × $43,000 = 

$29,240,000). 

16This estimate is based on the following 

estimate: ($100,000 × 22 new fund groups = 

$2,200,000). 

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

2 17 CFR 240.19b–4. 

intermediaries have had to develop and 

maintain information sharing, 

monitoring, and order execution 

systems (collectively ‘‘information 

sharing systems’’). 

In general, the staff estimates that the 

typical charges involved in operating 

and maintaining information sharing 

systems average 25 cents for every 100 

account transactions requested. The 

Commission staff estimates that, on 

average, each fund group requests 

information for 100,000 transactions 

each week, incurring costs of $250 

weekly, or $13,000 a year.14 In addition, 

the Commission staff estimates that 

funds pay access fees to use these 

information sharing systems (or 

comparable internal costs) of 

approximately $30,000 each year. The 

Commission staff therefore estimates 

that a fund group would typically incur 

approximately $43,000 in costs each 

year related to the operation and 

maintenance of information sharing 

systems required by rule 22c–2. The 

Commission staff has previously 

estimated that there are approximately 

680 fund groups currently active, and 

therefore estimates that all fund groups 

incur a total of $29,240,000 in ongoing 

costs each year related to maintaining 

and operating information sharing 

systems.15

Commission staff estimates that it 

requires approximately $100,000 to 

purchase or develop and implement 

such an information sharing system for 

the first time. Commission staff has 

previously estimated that approximately 

22 funds or fund groups are formed each 

year managed by new advisers, and 

therefore estimates that all these funds 

would incur total costs of approximately 

$2,200,000.16

Responses provided to the 

Commission will be accorded the same 

level of confidentiality accorded to 

other responses provided to the 

Commission in the context of its 

examination and oversight program. 

Responses provided in the context of 

the Commission’s examination and 

oversight program are generally kept 

confidential. Complying with the 

information collections of rule 22c–2 is 

mandatory for funds that redeem their 

shares within 7 days of purchase. 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. 

Please direct general comments 

regarding the above information to the 

following persons: (i) Desk Officer for 

the Securities and Exchange 

Commission, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503 

or send an e-mail to: Shagufta_Ahmed@

omb.eop.gov; and (ii) Charles Boucher, 

Director/CIO, Securities and Exchange 

Commission, C/O Shirley Martinson, 

6432 General Green Way, Alexandria, 

VA 22312; or send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: February 25, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4425 Filed 3–2–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

In the Matter of Cincinnati Microwave, 

Inc., Core Technologies Pennsylvania, 

Inc., First Central Financial Corp., 

Imark Technologies, Inc. (n/k/a Pharm 

Control Ltd.), Molten Metal 

Technology, Inc., MRS Technology, 

Inc., Sun Television & Appliances, Inc., 

and Telegroup, Inc.; File No. 500–1; 

Order of Suspension of Trading 

February 27, 2009. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Cincinnati 

Microwave, Inc. because it has not filed 

any periodic reports since the period 

ended September 29, 1996. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Core 

Technologies Pennsylvania, Inc. 

because it has not filed any periodic 

reports since the period ended 

September 30, 1998, except for a Form 

10–Q it filed for the period ended 

September 30, 2008. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of First Central 

Financial Corp. because it has not filed 

any periodic reports since the period 

ended June 30, 1997. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Imark 

Technologies, Inc. (n/k/a Pharm Control 

Ltd.) because it has not filed any 

periodic reports since the period ended 

March 31, 1998. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Molten 

Metal Technology, Inc. because it has 

not filed any periodic reports since the 

period ended September 30, 1997. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of MRS 

Technology, Inc. because it has not filed 

any periodic reports since the period 

ended September 30, 1998. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Sun 

Television & Appliances, Inc. because it 

has not filed any periodic reports since 

the period ended November 28, 1998. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Telegroup, 

Inc. because it has not filed any periodic 

reports since the period ended 

September 30, 1998. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above-listed 

companies. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the 

securities of the above-listed companies 

is suspended for the period from 9:30 

a.m. EST on February 27, 2009, through 

11:59 p.m. EDT on March 12, 2009. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–4594 Filed 2–27–09; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59448; File No. SR–CBOE– 

2009–011] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to the Simple 

Auction Liaison (SAL) 

February 25, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

mstockstill on PROD1PC66 with NOTICES