41370 Federal Register / Vol. 87, No. 132 / Tuesday, July 12, 2022 / Notices 

25 Id. 

26See supra note 11. 

27 15 U.S.C. 78s(b)(3)(A). 

28 17 CFR 240.19b–4(f)(2). 

29 15 U.S.C. 78s(b)(2)(B). 30 17 CFR 200.30–3(a)(12). 

to those offered by other competitor 

options exchanges.25 The Exchange is 

offering the Intra-Day Volume Summary 

in order to keep pace with changes in 

the industry and evolving customer 

needs, and believes the data product 

will contribute to robust competition 

among national securities exchanges. At 

least eight other U.S. options exchanges 

offer a market data product that is 

substantially similar to the Exchange’s 

offering. As a result, the Exchange 

believes this proposed rule change 

permits fair competition among national 

securities exchanges. 

Furthermore, the Exchange operates 

in a highly competitive environment, 

and its ability to price Intra-Day Volume 

Summary is constrained by competition 

among exchanges that offer similar data 

products to their customers. As 

discussed above, there are currently a 

number of similar products available to 

market participants and investors. At 

least eight other U.S. options exchanges 

offer a market data product that is 

substantially similar to the Exchange’s 

offering, which the Exchange must 

consider in its pricing discipline in 

order to compete effectively.26 For 

example, proposing fees that are 

excessively higher than established fees 

for similar data products would simply 

serve to reduce demand for the 

Exchange’s data product, which as 

discussed, market participants are under 

no obligation to utilize or purchase. In 

this competitive environment, potential 

purchasers are free to choose which, if 

any, similar product to purchase to 

satisfy their need for market 

information. As a result, the Exchange 

believes this proposed rule change 

permits fair competition among national 

securities exchanges. 

The Exchange does not believe the 

proposed rule change would cause any 

unnecessary or inappropriate burden on 

intramarket competition. Particularly, 

the proposed fees would apply 

uniformly to any subscriber, in that the 

Exchange would not differentiate 

between subscribers that purchase the 

Intra-Day Volume Summary and all 

subscribers would receive the same 

information in the data feed. The 

Exchange believes the proposed fees are 

set at a modest level that would allow 

interested subscribers to purchase such 

data based on their business needs. 

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 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 27 of the Act and 

subparagraph (f)(2) of Rule 19b–4 28

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such 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 shall institute proceedings 

under Section 19(b)(2)(B) 29 of the Act 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– 

NYSEArca–2022–37 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–NYSEArca–2022–37. 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–NYSEArca–2022–37 and 

should be submitted on or before 

August 2, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–14755 Filed 7–11–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–815, OMB Control No. 

3235–0769] 

Proposed Collection; Comment 

Request; Extension: Rule 139b 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that the 

Securities and Exchange Commission 

(the ‘‘Commission’’) has, in accordance 

with the Paperwork Reduction Act of 

1995 (Public Law 104–13, 44 U.S.C. 

3501 et seq.) (‘‘PRA’’), is soliciting 

comments on the collection of 

information associated with the Rule 

139b (17 CFR 230.139b) under the 

Securities Act of 1933 (15 U.S.C. 77a et 

seq.) (‘‘Securities Act’’) that was 

adopted by the Commission on 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 132 / Tuesday, July 12, 2022 / Notices 41371 

1See Release No. 33–10580 (Nov. 30, 2018) [83 

FR 64180 (Dec. 13, 2018)] (‘‘Adopting Release’’). 

Rule 139b became effective on January 14, 2019. 

2See Adopting Release, supra note 1, n. 413 and 

accompanying paragraph. 

3From information provided by FINRA, for the 

period January 1, 2021 through December 31, 2021, 

there were an aggregate of 48,341 filings that were 

coded either as Rule 482 or Rule 34b1 filings. 

Furthermore, for the period January 1, 2021 through 

December 31, 2021, the Commission estimates that 

there were 4,834 covered investment fund research 

reports/1,169 broker-dealers = 4.1 annual responses 

per broker-dealer. 

4 4.1 annual responses per broker-dealer × 3 

internal burden hours = 12.3 annual internal 

burden hours per broker-dealer. 

5 12.3 annual internal burden hours * 1,169 

broker-dealers. 

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

2 17 CFR 240.19b–4. 

November 30, 2018.1 The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget (‘‘OMB’’) for 

extension and approval. 

As directed by the Fair Access to 

Investment Research Act of 2017 (Pub. 

L. 115–66, 131 Stat. 1196 (2017) (the 

‘‘FAIR Act’’), the Commission adopted 

rule 139b under the Securities Act to 

extend the safe harbor under rule 139 to 

a ‘‘covered investment fund research 

report.’’ Specifically, rule 139b provides 

a safe harbor to a broker-dealer who 

publishes or distributes in the regular 

course of its business research reports 

concerning one or more ‘‘covered 

investment fund(s)’’ while participating 

in the distribution of a covered 

investment fund’s securities. 

In the Adopting Release, the 

Commission adopted the provision that 

rule 139b include a standardized 

performance disclosure requirement. 

The Commission believes that 

standardized performance presentation 

is an appropriate requirement because 

investors tend to consider fund 

performance a significant factor in 

evaluating or comparing investment 

companies, and the requirement 

addresses potential investor confusion if 

a communication were not easily 

recognizable as research as opposed to 

an advertising prospectus or 

supplemental sales literature. Rule 139b 

requires that research reports about 

open-end funds that include 

performance information must present it 

in accordance with paragraphs (d), (e), 

and (g) of rule 482. Rule 139b also 

requires that research reports about 

closed-end funds that include 

performance information must present it 

in accordance with instructions to item 

4.1(g) of Form N–2. Performance 

measures calculated by broker-dealers 

are not required to be kept confidential 

and there is no mandatory retention 

period. The Commission anticipates that 

compliance with these performance 

measures for each fund discussed in a 

research report, and for which the 

performance measures apply, would 

increase compliance costs for brokerdealers seeking to publish or distribute 

a covered investment fund research 

report. 

It is difficult to provide estimates of 

the burdens and costs for those brokerdealers that will include performance 

information in a rule 139b research 

report. As discussed in the Adopting 

Release, this is difficult to estimate 

because current data collected does not 

reflect the affiliate exclusion, does not 

include the entire universe of covered 

investment funds, and it is uncertain 

what percentage of communications 

currently filed as rule 482 advertising 

prospectuses (or rule 34b-1 

supplemental sales materials) will 

instead be published in reliance of rule 

139b, as covered investment fund 

research reports.2 For purposes of the 

PRA, we estimate that 10% of the rule 

482 and rule 34b–1 communications 

currently filed by broker-dealers with 

FINRA (approximately 48,341) could be 

considered as rule 139b covered 

investment fund research reports. We 

estimate that broker-dealers will publish 

annually 4,834 (10% of 48,341) covered 

investment fund research reports. 

Moreover, we assume for purposes of 

the PRA that all estimated rule 139b 

research reports will include fund 

performance information. We further 

estimate that 1,169 broker-dealers 

would likely be respondents to the 

collection of information with a 

frequency of 4.1 responses per year.3

Additionally, we estimate that each 

research report will require 3 hours of 

ongoing internal burden hours by a 

broker-dealers’ personnel to comply 

with the rule 139b collection of 

information requirements, which for 

each broker-dealer is estimated to be 

12.3 internal burden hours.4

Accordingly, we estimate that the 

standardized performance presentation 

requirements will result in an average 

12.3 annual hour burden per brokerdealer. 

In sum, we estimate that rule 139b’s 

requirements will impose a total annual 

internal hour burden of 14,379 hours on 

broker-dealers.5 We do not think there 

is an external cost burden associated 

with this collection of information. 

This information collection is subject 

to the PRA and responses to this 

collection of information requirement 

would not be mandatory for brokerdealers seeking to rely upon rule 139b, 

but would be necessary for those brokerdealers that would like to provide 

performance information in their 

covered investment fund research 

reports. Responses to the information 

collections 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 OMB 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 September 12, 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: July 6, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–14745 Filed 7–11–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95203; File No. SR– 

CboeEDGX–2022–030] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule 

July 6, 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 July 1, 

2022, Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 


jspears on DSK121TN23PROD with NOTICES1