Federal Register / Vol. 86, No. 137 / Wednesday, July 21, 2021 / Notices 38521 

18This estimate is based on the following 

calculations: (4 hours × 100 intermediaries = 400 

hours); (400 hours × $425 = $170,000). 

19This estimate is based on the following 

calculations: (41 fund groups × 400 hours = 16,400 

hours) ($425 × 16,400 = 6,970,000). 

20 ICI, 2020 Investment Company Fact Book at Fig 

2.12 (2020) (https://www.ici.org/research/stats/ 

factbook). 

21The $64 per hour figure for a general clerk is 

derived from SIFMA’s Office Salaries in the 

Securities Industry 2013 modified to account for an 

1,800-hour work-year and inflation, and multiplied 

by 2.93 to account for bonuses, firm size, employee 

benefits, and overhead. 

22This estimate is based on the following 

calculations: (10 minutes × 840 fund groups = 8,400 

minutes); (8,400 minutes/60 = 140 hours); (140 

hours × $64 = $8,960). 

23This estimate is based on the following 

calculations: (10,080 hours + 16,400 hours + 140 

hours = 26,620 hours); ($4,284,000 + $6,970,000 + 

$8,960 = $11,262,960). 

24This estimate is based on the following 

calculations: (52 + 365 = 417); (417 × 840 fund 

groups = 350,280). 

25This estimate is based on the following 

calculations: (468 hours (board determination) + 

26,620 hours (information sharing agreements) = 

27,088 total hours); ($382,500 (board determination) 

+ $11,262,960 (information sharing agreements) = 

$11,645,460). 

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

2 17 CFR 240.19b–4. 

3Self-Regulatory Organizations; ICE Clear Europe 

Limited; Notice of Filing of Proposed Rule Change 

Relating to the Clearing Rules, Clearing Procedures, 

Finance Procedures, Delivery Procedures, CDS 

Procedures, Membership Procedures, Complaint 

Resolution Procedures and General Contract Terms, 

Exchange Act Release No. 34–92020 (May 26, 2021); 

86 FR 29612 (June 2, 2021) (SR–ICEEU–2021–010). 

estimates that each newly formed fund 

group will incur 400 hours of attorney 

time at a cost of $170,000 18 and that all 

newly formed fund groups will incur a 

total of 16,400 hours at a cost of 

$6,970,000 to enter into information 

sharing agreements with their 

intermediaries.19

Rule 22c–2(a)(3) requires funds to 

maintain records of all informationsharing agreements for 6 years in an 

easily accessible place. Commission 

staff understands that most shareholder 

information agreements are stored at the 

fund group level and estimates that 

there are currently approximately 840 

fund groups.20 Commission staff 

understands that information-sharing 

agreements are generally included as 

addendums to distribution agreements 

between funds and their intermediaries, 

and that these agreements would be 

stored as required by the rule as a matter 

of ordinary business practice. Therefore, 

Commission staff estimates that 

maintaining records of informationsharing agreements requires 10 minutes 

of time spent by a general clerk (at a rate 

of $64 per hour) 21 per fund, each year. 

Accordingly, Commission staff 

estimates that all funds will incur 140 

hours at a cost of $8,960 22 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)(2) and (3), it requires a total of 

26,620 hours at a cost of $11,262,960.23

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 350,280 

responses for all fund groups 

annually.24 In addition, as described 

above, the staff estimates that funds 

make 36 responses related to board 

determinations, 2,520 responses related 

to new intermediaries of existing fund 

groups, 4,100 responses related to new 

fund group information sharing 

agreements, and 840 responses related 

to recordkeeping, for a total of 7,496 

responses related to the other 

requirements of rule 22c–2. Therefore, 

the Commission staff estimates that the 

total number of responses is 357,776 

(350,280 + 7,496 = 357,776). 

The Commission staff estimates that 

the total hour burden for rule 22c–2 is 

27,088 hours at a cost of $11,645,460.25

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. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’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 of this 

publication. 

Please direct your written comments 

to David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Cynthia 

Roscoe, 100 F Street NE, Washington, 

DC 20549; or send an email to: PRA_

Mailbox@sec.gov. 

Dated: July 15, 2021. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15426 Filed 7–20–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92418; File No. SR–ICEEU– 

2021–010] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Partial 

Amendment No. 1 and Designation of 

Longer Period for Commission Action 

on Proposed Rule Change Relating to 

the Clearing Rules, Clearing 

Procedures, Finance Procedures, 

Delivery Procedures, CDS Procedures, 

Membership Procedures, Complaint 

Resolution Procedures, and General 

Contract Terms 

July 15, 2021. 

I. Introduction 

On May 13, 2021, ICE Clear Europe 

Limited (‘‘ICE Clear Europe’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend its Clearing Rules, Clearing 

Procedures, Finance Procedures, 

Delivery Procedures, CDS Procedures, 

Membership Procedures, Complaint 

Resolution Procedures, and General 

Contract Terms to make various updates 

and enhancements. The proposed rule 

change was published for comment in 

the Federal Register on June 2, 2021.3

To date, the Commission has not 

received comments on the proposed 

rule change. On June 16, 2021, ICE Clear 

Europe filed Partial Amendment No. 1 

to the proposed rule change. The 

Commission is publishing this notice to 

solicit comments on Partial Amendment 

No. 1 and to designate a longer period 

for action on the proposed rule change, 

as modified by Partial Amendment No. 

1. 

II. Notice of Partial Amendment No. 1 

and Solicitation of Comments 

On June 16, 2021, ICE Clear Europe 

filed Partial Amendment No. 1 to 

update Exhibit 5D, the Delivery 


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38522 Federal Register / Vol. 86, No. 137 / Wednesday, July 21, 2021 / Notices 

4 15 U.S.C. 78s(b)(2). 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C. 80a–10(f). 

2 17 CFR 270.10f–3. 

Procedures, to correct a formatting error 

that resulted in the omission of several 

proposed definitions to update 

references to ICE Clear Europe systems. 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as modified by Partial 

Amendment No. 1, 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– 

ICEEU–2021–010 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–ICEEU–2021–010. 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, as modified by Partial 

Amendment No. 1, that are filed with 

the Commission, and all written 

communications relating to the 

proposed rule change, as modified by 

Partial Amendment No. 1, 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 such 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Europe and on ICE 

Clear Europe’s website at https://

www.theice.com/clear-europe/ 

regulation. 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–ICEEU– 

2021–010 and should be submitted on 

or before August 11, 2021. 

III. Designation of Longer Period for 

Action on the Proposed Rule Change, as 

Modified by Partial Amendment No. 1 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day from the 

publication of notice of filing of this 

proposed rule change is July 17, 2021. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change, as 

modified by by Partial Amendment No. 

1. The Commission finds it is 

appropriate to designate a longer period 

within which to take action on the 

proposed rule change so that it has 

sufficient time to consider ICE Clear 

Europe’s proposed rule change, as 

modified by by Partial Amendment 

No. 1. 

Accordingly, pursuant to Section 

19(b)(2) 5 of the Act, and for the reasons 

discussed above, the Commission 

designates August 31, 2021, as the date 

by which the Commission should either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change, 

as modified by by Partial Amendment 

No. 1. (File No. SR–ICEEU–2021–010). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15443 Filed 7–20–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–237, OMB Control No. 

3235–0226] 

Proposed Collection; Comment 

Request 

Extension: 

Rule 10f–3 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520), the Securities 

and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collections of information 

discussed below. The Commission plans 

to submit these existing collections of 

information to the Office of 

Management and Budget (‘‘OMB’’) for 

extension and approval. 

Section 10(f) of the Investment 

Company Act of 1940 (15 U.S.C. 80a) 

(the ‘‘Act’’) prohibits a registered 

investment company (‘‘fund’’) from 

purchasing any security during an 

underwriting or selling syndicate if the 

fund has certain affiliated relationships 

with a principal underwriter for the 

security.1 Congress enacted this 

provision in 1940 to protect funds and 

their shareholders by preventing 

underwriters from ‘‘dumping’’ 

unmarketable securities on affiliated 

funds. 

Rule 10f–3 under the Act permits a 

fund to engage in a securities 

transaction that otherwise would violate 

Section 10(f) if, among other things: (i) 

The fund’s directors have approved 

procedures for purchases made in 

reliance on the rule, regularly review 

fund purchases to determine whether 

they comply with these procedures, and 

approve necessary changes to the 

procedures; and (ii) a written record of 

each transaction effected under the rule 

is maintained for six years, the first two 

of which in an easily accessible place.2

The written record must state: (i) From 

whom the securities were acquired; (ii) 

the identity of the underwriting 

syndicate’s members; (iii) the terms of 

the transactions; and (iv) the 

information or materials on which the 

fund’s board of directors has determined 

that the purchases were made in 

compliance with procedures established 

by the board. 

Rule 10f–3 also conditionally allows 

managed portions of fund portfolios to 

purchase securities offered in otherwise 

off-limits primary offerings. To qualify 

for this exemption, Rule 10f–3 requires 

that the subadviser that is advising the 

purchaser be contractually prohibited 

from providing investment advice to 

any other portion of the fund’s portfolio 

and consulting with any other of the 

fund’s advisers that is a principal 

underwriter or affiliated person of a 

principal underwriter concerning the 

fund’s securities transactions. 

These requirements provide a 

mechanism for fund boards to oversee 

compliance with the rule. The required 


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