Federal Register / Vol. 75, No. 187 / Tuesday, September 28, 2010 / Notices 59751 

1Based on information in Commission filings, we 

estimate that 42.5 percent of funds are advised by 

subadvisers. 

2This estimate is based on the following 

calculation (3 hours ÷ 4 rules = .75 hours). 

3These estimates are based on the following 

calculations: (0.75 hours × 252 portfolios = 189 

burden hours); ($316 per hour × 189 hours = 

$59,724 total cost). The Commission staff’s 

estimates concerning the wage rates for attorney 

time are based on salary information for the 

securities industry compiled by the Securities 

Industry Association. The $316 per hour figure for 

an attorney is from the SIFMA Report on 

Management & Professional Earnings in the 

Securities Industry 2009, modified to account for an 

1800-hour work-year and multiplied by 5.35 to 

account for bonuses, firm size, employee benefits 

and overhead. 

4This estimate is based on the following 

calculations: (40 hours accounting staff × $119 per 

hour = $4760) (15 hours by an attorney × $316 per 

hour = $4740); (4 hours by directors × $4000 = 

$16,000) ($4760 + $4740 + $16,000 = $25,500 total 

cost). The Commission staff’s estimates concerning 

the wage rate for professional time are based on 

salary information for the securities industry 

compiled by the Securities Industry Association, 

except for the estimate of $4000 per hour for a 

board of directors. The $316 per hour estimate for 

an attorney and the $119 per hour estimate for 

accountant time is from the SIFMA Report on 

Management & Professional Earnings in the 

Securities Industry 2009, modified to account for an 

1800-hour work-year and multiplied by 5.35 to 

account for bonuses, firm size, employee benefits 

and overhead. 

5This estimate is based on the following 

calculation: (1161 funds × 59 hours = 68,499). 

6This estimate is based on the following 

calculation: ($25,500 × 1161 funds = $29,605,500). 

7This estimate is based on the following 

calculation: (189 hours + 68,499 hours = 68,688 

total hours). 

8This estimate is based on the following 

calculation: ($59,724 + $29,605,500 = $29,665,224). 

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 at 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Jeff Heslop, Acting Director/CIO, 

Securities and Exchange Commission, 

C/O Remi Pavlik-Simon, 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. 

September 20, 2010. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24186 Filed 9–27–10; 8:45 am] 

BILLING CODE 8010–01–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 17e–1; SEC File No. 270–224; OMB 

Control No. 3235–0217. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

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

and Exchange Commission (the 

‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for extension of the 

previously approved collection of 

information described below. 

Rule 17e–1 (17 CFR 270.17e–1) under 

the Investment Company Act of 1940 

(15 U.S.C. 80a) (the ‘‘Act’’) is entitled 

‘‘Brokerage Transactions on a Securities 

Exchange.’’ The rule governs the 

remuneration that a broker affiliated 

with a registered investment company 

(‘‘fund’’) may receive in connection with 

securities transactions by the fund. The 

rule requires a fund’s board of directors 

to establish, and review as necessary, 

procedures reasonably designed to 

provide that the remuneration to an 

affiliated broker is a fair amount 

compared to that received by other 

brokers in connection with transactions 

in similar securities during a 

comparable period of time. Each 

quarter, the board must determine that 

all transactions with affiliated brokers 

during the preceding quarter complied 

with the procedures established under 

the rule. Rule 17e–1 also requires the 

fund to (i) maintain permanently a 

written copy of the procedures adopted 

by the board for complying with the 

requirements of the rule; and (ii) 

maintain for a period of six years a 

written record of each transaction 

subject to the rule, setting forth: the 

amount and source of the commission, 

fee or other remuneration received; the 

identity of the broker; the terms of the 

transaction; and the materials used to 

determine that the transactions were 

effected in compliance with the 

procedures adopted by the board. The 

Commission’s examination staff uses 

these records to evaluate transactions 

between funds and their affiliated 

brokers for compliance with the rule. 

Based on an analysis of fund filings, 

the staff estimates that approximately 

252 fund portfolios enter into 

subadvisory agreements each year.1

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 

17e–1. Because these additional clauses 

are identical to the clauses that a fund 

would need to insert in their 

subadvisory contracts to rely on rules 

12d3–1, 10f–3, 17a–10, 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 to all four rules. Therefore, we 

estimate that the burden allocated to 

rule 17e–1 for this contract change 

would be 0.75 hours.2 Assuming that all 

252 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 189 burden 

hours annually, with an associated cost 

of approximately $59,724.3

Based on an analysis of fund filings, 

the staff estimates that approximately 

1935 funds use at least one affiliated 

broker. Based on conversations with 

fund representatives, the staff estimates 

that rule 17e–1’s exemption would free 

approximately 40 percent of 

transactions that occur under rule 

17e–1 from the rule’s recordkeeping and 

review requirements. This would leave 

approximately 1161 funds (1935 funds x 

.6 = 1161) still subject to the rule’s 

recordkeeping and review requirements. 

The staff estimates that each of these 

funds spends approximately 59 hours 

per year (40 hours by accounting staff, 

15 hours by an attorney, and 4 director 

hours) at a cost of approximately 

$25,500 per year to comply with rule 

17e–1’s requirements that (i) the fund 

retain records of transactions entered 

into pursuant to the rule, and (ii) the 

fund’s directors review those 

transactions quarterly.4 We estimate, 

therefore, that the total yearly hourly 

burden for all funds relying on this 

exemption is 68,499 hours,5 with yearly 

costs of approximately $29,605,500.6

Therefore, the estimated annual 

aggregate burden hour associated with 

rule 17e–1 is 68,688,7 and the estimated 

annual aggregate cost associated with it 

is $29,665,224.8

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act, and is not 

derived from a comprehensive or even 

a representative survey or study. 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. These collection of information 

requirements are mandatory. Responses 

will not be kept confidential. 


srobinson on DSKHWCL6B1PROD with NOTICES
59752 Federal Register / Vol. 75, No. 187 / Tuesday, September 28, 2010 / Notices 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3Each participant executed the proposed 

amendment. The Participants are: BATS Exchange, 

Inc.; Chicago Board Options Exchange, Inc.; 

Chicago Stock Exchange, Inc.; Financial Industry 

Regulatory Authority, Inc.; International Securities 

Exchange, LLC; NASDAQ OMX BX, Inc.; NASDAQ 

OMX PHLX, Inc.; The NASDAQ Stock Market LLC; 

National Stock Exchange, Inc.; New York Stock 

Exchange LLC; NYSE Amex LLC; and NYSE Arca, 

Inc. 

4See Securities Exchange Act Release No. 10787 

(May 10, 1974), 39 FR 17799 (declaring the CTA 

Plan effective). The CTA Plan, pursuant to which 

markets collect and disseminate last sale price 

information for non-NASDAQ listed securities, is a 

‘‘transaction reporting plan’’ under Rule 601 under 

the Act, 17 CFR 242.601, and a ‘‘national market 

system plan’’ under Rule 608 under the Act, 17 CFR 

242.608. 

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 email to Shagufta Ahmed at 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Jeff Heslop, Acting Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Remi 

Pavlik-Simon, 6432 General Green Way, 

Alexandria, VA, 22312; or send an email to: PRA_Mailbox@sec.gov. 

Comments must be submitted to OMB 

within 30 days of this notice. 

Dated: September 20, 2010. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24187 Filed 9–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62966; File No. SR–CTA– 

2010–02] 

Consolidated Tape Association; Notice 

of Filing and Immediate Effectiveness 

of the Fifteenth Charges Amendment 

to the Second Restatement of the 

Consolidated Tape Association Plan 

September 21, 2010. 

Pursuant to Section 11A of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 608 thereunder,2

notice is hereby given that on 

September 21, 2010, the Consolidated 

Tape Association (‘‘CTA’’) Plan and 

participants (‘‘Participants’’) 3 filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a proposal 

to amend the Second Restatement of the 

CTA Plan (the ‘‘CTA Plan’’).4 The 

proposal represents the fifteenth charges 

amendment to the CTA Plan (‘‘Fifteenth 

Charges Amendment’’), and reflects 

changes unanimously adopted by the 

Participants. The Fifteenth Charges 

Amendment seeks to reduce the 

maximum amount that any entity is 

required to pay for any calendar 

month’s charge for broadcast, cable or 

satellite television distribution of a 

Network A ticker. Pursuant to Rule 

608(b)(3) under Regulation NMS, the 

Participants designate the amendment 

as establishing or changing a fee or other 

charge collected on their behalf in 

connection with access to, or use of, the 

facilities contemplated by the Plans. As 

a result, the amendment becomes 

effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments from interested persons on 

the proposed amendment. 

I. Rule 608(a) 

A. Description and Purpose of the 

Amendment 

The CTA Plan currently imposes a 

monthly charge of $2.00 for every 1000 

households reached on broadcast, cable 

and satellite television distribution of a 

Network A ticker (the ‘‘Broadcast 

Charge’’). A minimum monthly vendor 

payment of $2,000 applies. CTA permits 

prorating for those who broadcast the 

data for less than the entire business 

day, based upon the number of minutes 

that the vendor displays the real-time 

ticker, divided by the number of 

minutes the primary market is open for 

trading (currently 390 minutes). 

In 2007, the Participants introduced a 

cap (the ‘‘Television Ticker Maximum’’) 

on the Broadcast Charge each calendar 

month. For months falling in calendar 

year 2007, the ‘‘Television Ticker 

Maximum’’ was $150,000. 

For each subsequent calendar year, 

the monthly Television Ticker 

Maximum increases by the ‘‘Annual 

Increase Amount.’’ The ‘‘Annual 

Increase Amount’’ is an amount equal to 

the percentage increase in the annual 

composite share volume for the 

preceding calendar year, subject to a 

maximum annual increase of five 

percent. For 2008, the ‘‘Annual Increase 

Amount’’ raised the ‘‘Television Ticker 

Maximum’’ to $157,500. For 2008, the 

‘‘Annual Increase Amount’’ raised the 

‘‘Television Ticker Maximum’’ to 

$164,000. The ‘‘Annual Increase 

Amount’’ is the same adjustment factor 

that the Network A rate schedule has 

long applied to the monthly brokerdealer enterprise fee. 

In light of the Network A Participants’ 

experience with the Network A ticker, 

the Participants have determined to 

reduce the Television Ticker Maximum. 

In the amendment, the Participants 

propose to re-set the Television Ticker 

Maximum to $125,000 for calendar 

months falling in 2010. For calendar 

months falling in subsequent calendar 

years, the Participants would impose 

the Annual Increase Amount to the 

Television Ticker Maximum. For 

example, for calendar months falling in 

2011, the Participants would increase 

2010’s $125,000 monthly Television 

Ticker Maximum by the Annual 

Increase Amount. 

The text of the proposed amendment 

is available on the CTA’s Web site 

(http://www.nysedata.com/cta), at the 

principal office of the CTA, and at the 

Commission’s Public Reference Room. 

B. Additional Information Required by 

Rule 608(a) 

1. Governing or Constituent Documents 

Not applicable. 

2. Implementation of the Amendment 

The reduction in the monthly 

Television Ticker Maximum currently 

affects only one vendor. The 

Participants have notified that vendor. 

The Participants propose to implement 

the change retroactively so that it 

applies to all calendar months of 2010. 

3. Development and Implementation 

Phases 

See Item I(B)(2) above. 

4. Analysis of Impact on Competition 

The amendment will impose no 

burden on competition. 

5. Written Understanding or Agreements 

Relating to Interpretation of, or 

Participation in, Plan 

The Participants have no written 

understandings or agreements relating 

to interpretation of the CTA Plan as a 

result of the amendment. 

6. Approval by Sponsors in Accordance 

With Plan 

Under Section IV(b) of the CTA Plan, 

each CTA Plan Participant must execute 

a written amendment to the CTA Plan 

before the amendment can become 

effective. The amendment is so 

executed. 

7. Description of Operation of Facility 

Contemplated by the Proposed 

Amendment 

Not applicable. 

8. Terms and Conditions of Access 

Not applicable. 

9. Method of Determination and 

Imposition, and Amount of, Fees and 

Charges 

The Participants believe that the 

proposed reduction in the cap on 


srobinson on DSKHWCL6B1PROD with NOTICES