35586 Federal Register / Vol. 87, No. 112 / Friday, June 10, 2022 / Notices 

1 15 U.S.C. 80a–17(a). 

2 15 U.S.C. 80a–2(a)(3)(E). 

3As defined in rule 17a–10(b)(2). 17 CFR 

270.17a–10(b)(2). 

4 17 CFR 270.17a–10(a)(2). 

5 44 U.S.C. 3501. 

6Transactions of Investment Companies With 

Portfolio and Subadviser Affiliates, Investment 

Company Act Release No. 25888 (Jan. 14, 2003) [68 

FR 3153, (Jan. 22, 2003)]. We assume that funds 

formed after 2003 that intended to rely on rule 17a– 

10 would have included the required provision as 

a standard element in their initial subadvisory 

contracts. 

7Based on data from form N–CEN filings, as of 

March 2022, there are 12,468 registered funds 

(open-end funds, closed-end funds, and exchangetraded funds), 4,870 funds of which have 

subadvisory relationships (approximately 39%). 

Based on Form N–1A and Form N–2 filings, there 

were 806 new registered funds in 2020. 806 new 

funds × 39% = 314 funds. 

8This estimate is based on the following 

calculation: 3 hours ÷ 4 rules = 0.75 hours. 

9These estimates are based on the following 

calculations: (0.75 hours × 314 portfolios = 236 

burden hours); ($455 per hour × 236 hours = 

$107,380 total cost). The Commission’s estimates 

concerning the wage rates for attorney time are 

based on salary information for the securities 

industry compiled by the Securities Industry and 

Financial Markets Association. The estimated wage 

figure is based on published rates for in-house 

attorneys, modified to account for a 1,800-hour 

work-year and inflation, and multiplied by 5.35 to 

account for bonuses, firm size, employee benefits, 

and overhead, yielding an effective hourly rate of 

$455. See Securities Industry and Financial Markets 

Association, Report on Management & Professional 

Earnings in the Securities Industry 2013. 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) (‘‘PRA’’) the 

Securities and Exchange Commission 

(the ‘‘Commission’’) is soliciting 

comments on the collections of 

information summarized below. The 

Commission plans to submit these 

existing collections of information to the 

Office of Management and Budget 

(‘‘OMB’’) for extension and approval. 

Section 17(a) of the Investment 

Company Act of 1940 (15 U.S.C. 80a–1 

et seq.) (the ‘‘Act’’), generally prohibits 

affiliated persons of a registered 

investment company (‘‘fund’’) from 

borrowing money or other property 

from, or selling or buying securities or 

other property to or from, the fund or 

any company that the fund controls.1

Section 2(a)(3) of the Act defines 

‘‘affiliated person’’ of a fund to include 

its investment advisers.2 Rule 17a–10 

(17 CFR 270.17a–10) permits (i) a 

subadviser 3 of a fund to enter into 

transactions with funds the subadviser 

does not advise but that are affiliated 

persons of a fund that it does advise 

(e.g., other funds in the fund complex), 

and (ii) a subadviser (and its affiliated 

persons) to enter into transactions and 

arrangements with funds the subadviser 

does advise, but only with respect to 

discrete portions of the subadvised fund 

for which the subadviser does not 

provide investment advice. 

To qualify for the exemptions in rule 

17a–10, the subadvisory relationship 

must be the sole reason why section 

17(a) prohibits the transaction. In 

addition, the advisory contracts of the 

subadviser entering into the transaction, 

and any subadviser that is advising the 

purchasing portion of the fund, must 

prohibit the subadvisers from consulting 

with each other concerning securities 

transactions of the fund, and limit their 

responsibility to providing advice with 

respect to discrete portions of the fund’s 

portfolio.4 This requirement regarding 

the prohibitions and limitations in 

advisory contracts of subadvisers 

relying on the rule constitutes a 

collection of information under the 

PRA.5

The staff assumes that all existing 

funds with subadvisory contracts 

amended those contracts to comply with 

the adoption of rule 17a–10 in 2003, 

which conditioned certain exemptions 

upon these contractual alterations, and 

therefore there is no continuing burden 

for those funds.6 However, the staff 

assumes that all newly formed 

subadvised funds, and funds that enter 

into new contracts with subadvisers, 

will incur the one-time burden by 

amending their contracts to add the 

terms required by the rule. 

Based on an analysis of fund filings, 

the staff estimates that approximately 

314 funds enter into new subadvisory 

agreements each year.7 Based on 

discussions with industry 

representatives, the staff estimates that 

it will require approximately 3 attorney 

hours to draft and execute additional 

clauses in new subadvisory contracts in 

order for funds and subadvisers to be 

able to rely on the exemptions in rule 

17a–10. Because these additional 

clauses are identical to the clauses that 

a fund would need to insert in their 

subadvisory contracts to rely on rules 

10f–3 (17 CFR 270.10f–3), 12d3–1 (17 

CFR 270.12d3–1), and 17e–1 (17 CFR 

270.17e–1), and because we believe that 

funds that use one such rule generally 

use all of these rules, we apportion this 

3 hour time burden equally among all 

four rules. Therefore, we estimate that 

the burden allocated to rule 17a–10 for 

this contract change would be 0.75 

hours.8 Assuming that all 314 funds that 

enter into new subadvisory contracts 

each year make the modification to their 

contract required by the rule, we 

estimate that the rule’s contract 

modification requirement will result in 

236 burden hours annually, with an 

associated cost of approximately 

$107,380.9

The estimate of average burden hours 

is made solely for the purposes of the 

PRA. The estimate is not derived from 

a comprehensive or even a 

representative survey or study of the 

costs of Commission rules. Complying 

with this collection of information 

requirement is necessary to obtain the 

benefit of relying on rule 17a–10. 

Responses will not be kept confidential. 

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 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’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 

by August 9, 2022. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: David Bottom, Acting Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: June 6, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12495 Filed 6–9–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–482, OMB Control No. 

3235–0540] 

Proposed Collection; Comment 

Request; Extension: Rule 17a–25 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 112 / Friday, June 10, 2022 / Notices 35587 

1A single EBS request has a unique number 

assigned to each request (e.g., ’’0900001’’). 

However, the number of broker-dealer responses 

generated from one EBS request can range from one 

to several thousand. EBS requests are sent directly 

to clearing firms, as the clearing firm is the 

repository for trading data for securities 

transactions information provided by the clearing 

firm and the correspondent firms. Clearing brokers 

respond for themselves and other firms they clear 

for. There were 446,113 responses during the 24- 

month period, for an average of 223,057 annual 

responses. 

2Few respondents submit manual EBS responses. 

The small percentage of respondents that submit 

manual responses do so by hand, via email, 

spreadsheet, disk, or other electronic media. Thus, 

the number of manual submissions (approximately 

122 per year) has minimal effect on the total annual 

burden hours. 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Fee Schedule, Section I.M. BOLD 

Mechanism Fees & Credits. 

5The Exchange notes that this proposed change 

would only impact the credit relating to BOLD 

Initiating Orders, and the ACE Program credits 

outlined in Section I.E. remain unchanged. 

6See Securities Exchange Act Release No. 80964 

(June 19, 2017), 82 FR 28726 (June 23, 2017) (SR– 

NYSEMKT–2017–37) (Notice of Filing and 

Immediate Effectiveness of Proposed Change to 

Modify the NYSE Amex Options Fee Schedule). 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et. seq.) (‘‘PRA’’), the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the existing collection of information 

provided for in Rule 17a–25 (17 CFR 

204.17a–25) under the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et. 

seq.). 

Paragraph (a)(1) of Rule 17a–25 

requires registered broker-dealers to 

electronically submit securities 

transaction information, including 

identifiers for prime brokerage 

arrangements, average price accounts, 

and depository institutions, in a 

standardized format when requested by 

the Commission staff. In addition, 

Paragraph (c) of Rule 17a–25 requires 

broker-dealers to submit, and keep 

current, contact person information for 

electronic blue sheets (‘‘EBS’’) requests. 

The Commission uses the information 

for enforcement inquiries or 

investigations and trading 

reconstructions, as well as for 

inspections and examinations. 

The Commission estimates that it 

sends approximately 13,558 electronic 

blue sheet requests per year to clearing 

broker-dealers that in turn submit an 

average 223,057 responses.1 It is 

estimated that each broker-dealer that 

responds electronically will take 8 

minutes, and each broker-dealer that 

responds manually will take 11⁄2 hours 

to prepare and submit the securities 

trading data requested by the 

Commission. The annual aggregate hour 

burden for electronic and manual 

response firms is estimated to be 29,924 

(223,057 × 8 ÷ 60 = 29,741 hours) + (122 

× 1.5 = 183 hours), respectively.2

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 shall have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the proposed collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information to be 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 by August 9, 2022. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: David Bottom, Director/Chief 

Information Office, Securities and 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: June 6, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12497 Filed 6–9–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95041; File No. SR– 

NYSEAMER–2022–22] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the NYSE 

American Options Fee Schedule 

June 3, 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 May 31, 

2022, NYSE American LLC (‘‘NYSE 

American’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory 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 the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’) regarding credits 

relating to the BOLD Mechanism. The 

Exchange proposes to implement the fee 

change effective June 1, 2022. 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 purpose of this filing is to modify 

credits associated with the BOLD 

Mechanism, a trading mechanism for 

automated order handling for eligible 

orders in designated classes pursuant to 

NYSE American Rule 994NY. 

Currently, BOLD Initiating Orders 

receive the better of a $0.12 per contract 

credit or a higher credit earned by 

qualifying for the American Customer 

Engagement (‘‘ACE’’) Program.4 As set 

forth in Section I.E. of the Fee Schedule, 

the ACE Program provides qualifying 

participants with per contract credits 

applicable to Electronic options 

transactions, including those executed 

via the BOLD Mechanism. 

The Exchange now proposes to 

modify Section I.M. of the Fee Schedule 

to provide that the credit available to 

BOLD Initiating Orders would be the 

better of $0.12 or, to the extent an ATP 

Holder would qualify for a higher credit 

via the ACE Program, $0.13.5

The Exchange notes that the fees and 

credits relating to the BOLD 

Mechanism, as originally established,6


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