Federal Register / Vol. 87, No. 108 / Monday, June 6, 2022 / Notices 34333 

have to file an initial holdings report or a quarterly 

transaction report,; (iii) an Access Person of a 

principal underwriter of the fund does not have to 

file reports if the principal underwriter is not 

affiliated with the fund (unless the fund is a unit 

investment trust) or any investment adviser of the 

fund and the principal underwriter of the fund does 

not have any officer, director, or general partner 

who serves in one of those capacities for the fund 

or any investment adviser of the fund; (iv) an 

Access Person to an investment adviser need not 

make quarterly reports if the report would duplicate 

information provided under the reporting 

provisions of the Investment Adviser’s Act of 1940; 

(v) an Access Person need not make quarterly 

transaction reports if the information provided in 

the report would duplicate information received by 

the 17j–1 organization in the form of broker trade 

confirmations or account statements or information 

otherwise in the records of the 17j–1 organization; 

and (vi) an Access Person need not make quarterly 

transaction reports with respect to transactions 

effected pursuant to an Automatic Investment Plan. 

7 If information collected pursuant to the rule is 

reviewed by the Commission’s examination staff, it 

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. See section 31(c) of the 

Investment Company Act (15 U.S.C. 80a–30(c)). 

within 10 days of becoming an Access 

Person, a dated initial holdings report 

that sets forth certain information with 

respect to the Access Person’s securities 

and accounts; (ii) dated quarterly 

transaction reports within 30 days of the 

end of each calendar quarter providing 

certain information with respect to any 

securities transactions during the 

quarter and any account established by 

the Access Person in which any 

securities were held during the quarter; 

and (iii) dated annual holding reports 

providing information with respect to 

each Covered Security the Access 

Person beneficially owns and accounts 

in which securities are held for his or 

her benefit. In addition, rule 17j–1 

requires investment personnel of a fund 

or its investment adviser, before 

acquiring beneficial ownership in 

securities through an initial public 

offering (IPO) or in a private placement, 

to obtain approval from the fund or the 

fund’s investment adviser. 

The requirements that the 

management of a rule 17j–1 organization 

provide the fund’s board with new and 

amended codes of ethics and an annual 

issues and certification report are 

intended to enhance board oversight of 

personal investment policies applicable 

to the fund and the personal investment 

activities of Access Persons. The 

requirements that Access Persons 

provide initial holdings reports, 

quarterly transaction reports, and 

annual holdings reports and request 

approval for purchases of securities 

through IPOs and private placements 

are intended to help fund compliance 

personnel and the Commission’s 

examinations staff monitor potential 

conflicts of interest and detect 

potentially abusive activities. The 

requirement that each rule 17j–1 

organization maintain certain records is 

intended to assist the organization and 

the Commission’s examinations staff in 

determining if there have been 

violations of rule 17j–1. 

We estimate that annually there are 

approximately 85,927 respondents 

under rule 17j–1, of which 15,927 are 

rule 17j–1 organizations and 70,000 are 

Access Persons. In the aggregate, these 

respondents make approximately 

107,363 responses annually. We 

estimate that the total annual burden of 

complying with the information 

collection requirements in rule 17j–1 is 

approximately 376,628 hours. This hour 

burden represents time spent by Access 

Persons that must file initial and annual 

holdings reports and quarterly 

transaction reports, investment 

personnel that must obtain approval 

before acquiring beneficial ownership in 

any securities through an IPO or private 

placement, and the responsibilities of 

Rule 17j–1 organizations arising from 

information collection requirements 

under rule 17j–1. These include 

notifying Access Persons of their 

reporting obligations, preparing an 

annual rule 17j–1 report and 

certification for the board, documenting 

their approval or rejection of IPO and 

private placement requests, maintaining 

annual rule 17j–1 records, maintaining 

electronic reporting and recordkeeping 

systems, amending their codes of ethics 

as necessary, and, for new fund 

complexes, adopting a code of ethics. 

We estimate that there is an annual 

cost burden of approximately $5,000 per 

fund complex, for a total of $4,020,000, 

associated with complying with the 

information collection requirements in 

rule 17j–1. This represents the costs of 

purchasing and maintaining computers 

and software to assist funds in carrying 

out rule 17j–1 recordkeeping. 

These burden hour and cost estimates 

are based upon the Commission staff’s 

experience and discussions with the 

fund industry. The estimates of average 

burden hours and costs are made solely 

for the purposes of the Paperwork 

Reduction Act. These estimates are not 

derived from a comprehensive or even 

a representative survey or study of the 

costs of Commission rules. 

Compliance with the collection of 

information requirements of the rule is 

mandatory and is necessary to comply 

with the requirements of the rule in 

general. 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. Rule 17j–1 requires that 

records be maintained for at least five 

years in an easily accessible place.7

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice by July 6, 2022 to (i) 

MBX.OMB.OIRA.SEC_desk_officer@

omb.eop.gov and (ii) David Bottom, 

Director/Chief Information Officer, 

Securities and Exchange Commission, 

c/o John Pezzullo, 100 F Street NE, 

Washington, DC 20549, or by sending an 

email to: PRA_Mailbox@sec.gov. 

Dated: May 31, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12019 Filed 6–3–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95007; File No. 10–239] 

24X National Exchange LLC; Notice of 

Filing of Application for Registration 

as a National Securities Exchange 

Under Section 6 of the Securities 

Exchange Act of 1934 

May 31, 2022. 

On March 25, 2022, 24X National 

Exchange LLC (‘‘24X’’ or ‘‘Applicant’’) 

submitted to the Securities and 

Exchange Commission (‘‘Commission’’) 

a Form 1 application under the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’), seeking registration 

as a national securities exchange under 

Section 6 of the Exchange Act. The 

Applicant’s Form 1 application provides 

detailed information on how 24X 

proposes to satisfy the requirements of 

the Exchange Act. 

The Commission is publishing this 

notice to solicit comments on 24X’s 

Form 1 application. The Commission 

will take any comments it receives into 

consideration in making its 

determination about whether to grant 

24X’s request to be registered as a 

national securities exchange. The 

Commission will grant the registration if 

it finds that the requirements of the 

Exchange Act and the rules and 


lotter on DSK11XQN23PROD with NOTICES1
34334 Federal Register / Vol. 87, No. 108 / Monday, June 6, 2022 / Notices 

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

2See proposed 24X Rule 11.1 (describing the 

hours of trading and trading days for 24X). 

3For example, see proposed 24X Rule 11.16 

(describing what orders are eligible for execution 

outside of regular trading hours). 

4See proposed 24X Rule 11.16(q) (defining the 

unit of trading in stocks as one thousandth of a 

share). 5 17 CFR 200.30–3(a)(16) and (a)(71)(i). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

regulations thereunder with respect to 

24X are satisfied.1

24X’s Form 1 application states that 

24X would be wholly-owned by its 

parent company, 24X US Holdings LLC 

(‘‘US Holdings’’), which in turn is 

wholly-owned by 24X Bermuda 

Holdings LLC (‘‘Bermuda Holdings’’). 

The Form 1 application provides that 

24X would operate a fully automated 

electronic trading platform for the 

trading of listed equities and would not 

maintain a physical trading floor. It also 

provides that liquidity would be derived 

from quotes as well as orders to buy and 

orders to sell submitted to 24X 

electronically by Members from remote 

locations. 24X proposes to have one 

class of membership open to registered 

broker-dealers. One novel feature of 

24X’s proposed trading rules is that 24X 

intends to allow equities trading 24 

hours a day, 7 days per week, 365 days 

a year.2 24X has proposed specific rules 

to govern trading outside of regular 

trading hours.3 Another notable feature 

in 24X’s Form 1 application is that it 

contemplates allowing market 

participants to trade fractional shares.4

A more detailed description of the 

manner of operation of 24X’s proposed 

system can be found in Exhibit E to 

24X’s Form 1 application. The proposed 

rulebook for the proposed exchange can 

be found in Exhibit B to 24X’s Form 1 

application, and the governing 

documents for 24X, US Holdings and 

Bermuda Holdings can be found in 

Exhibit A and Exhibit C to 24X’s Form 

1 application. A listing of the officers 

and directors of 24X can be found in 

Exhibit J to 24X’s Form 1 application. A 

complete set of forms concerning 

membership and access can be found in 

Exhibit F to 24X’s Form 1 application. 

24X’s Form 1 application, including 

all of the Exhibits referenced above, is 

available online at www.sec.gov/rules/ 

other.shtml as well as in the 

Commission’s Public Reference Room. 

Interested persons are invited to submit 

written data, views, and arguments 

concerning 24X’s Form 1, including 

whether the application is consistent 

with the Exchange 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 10– 

239 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 10–239. 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/other.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to 24X’s Form 1 filed with 

the Commission, and all written 

communications relating to the 

application 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. 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 publicly 

available. All submissions should refer 

to File Number 10–239 and should be 

submitted on or before July 21, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12010 Filed 6–3–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95006; File No. SR–CBOE– 

2022–024] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Rules 

Regarding Complex Orders 

May 31, 2022. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on May 23, 

2022, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) 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 Exchange. The 

Exchange filed the proposed rule change 

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

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 

Cboe Exchange, Inc. (the ‘‘Exchange’’ 

or ‘‘Cboe Options’’) proposes to amend 

its Rules regarding complex orders. The 

text of the proposed rule change is 

provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegal

RegulatoryHome.aspx), at the 

Exchange’s Office of the Secretary, 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. 


lotter on DSK11XQN23PROD with NOTICES1