Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Notices 28735 

1However, the staff further estimates that the 

number of respondents decreases by at least that 

many firms per year as a result of mergers and other 

business factors. 

1HealthShares, Inc., et al., Investment Company 

Act Release Nos. 27553 (November 16, 2006) 

(notice) and 27594 (December 7, 2006) (order), as 

amended by HealthShares, Inc., et al., Investment 

Company Act Release Nos. 27916 (July 27, 2007) 

(notice) and 27930 (August 20, 2007) (order). 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rules 17h–1T and 17h–2T, SEC File No. 

270–359, OMB Control No. 3235–0410. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

requests for extension of the previously 

approved collections of information 

discussed below. The Code of Federal 

Regulation citations to this collection of 

information are the following rules: 17 

CFR 240.17h–1T and 17 CFR 240.17h– 

2T under the Securities Exchange Act of 

1934 (15 U.S.C. 78a et seq.) (the ‘‘Act’’). 

Rule 17h–1T requires a broker-dealer 

to maintain and preserve records and 

other information concerning certain 

entities that are associated with the 

broker-dealer. This requirement extends 

to the financial and securities activities 

of the holding company, affiliates and 

subsidiaries of the broker-dealer that are 

reasonably likely to have a material 

impact on the financial or operational 

condition of the broker-dealer. Rule 

17h–2T requires a broker-dealer to file 

with the Commission quarterly reports 

and a cumulative year-end report 

concerning the information required to 

be maintained and preserved under 

Rule 17h–1T. 

The collection of information required 

by Rules 17h–1T and 17h–2T is 

necessary to enable the Commission to 

monitor the activities of a broker-dealer 

affiliate whose business activities is 

reasonably likely to have a material 

impact on the financial and operational 

condition of the broker-dealer. Without 

this information, the Commission would 

be unable to assess the potentially 

damaging impact of the affiliate’s 

activities on the broker-dealer. 

There are currently 148 respondents 

that must comply with Rules 17h–1T 

and 17h–2T. Each of these 148 

respondents require approximately 10 

hours per year, or 2.5 hours per quarter, 

to maintain the records required under 

Rule 17h–1T, for an aggregate annual 

burden of 1,480 hours (148 respondents 

× 10 hours). In addition, each of these 

148 respondents must make five annual 

responses under Rule 17h–2T. These 

five responses require approximately 14 

hours per respondent per year, or 3.5 

hours per quarter, for an aggregate 

annual burden of 2,072 hours (148 

respondents × 14 hours). In addition, 

there are approximately five new 

respondents per year 1 that must draft an 

organizational chart required under 

Rule 17h–1T and establish a system for 

complying with the Rules. The staff 

estimates that drafting the required 

organizational chart requires one hour 

and establishing a system for complying 

with the Rules requires three hours, 

thus requiring an aggregate of 20 hours 

(5 new respondents × 4 hours). Thus, 

the total compliance burden per year is 

approximately 3,572 burden hours 

(1,480 + 2,072 + 20). 

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. 

Comments should be directed to 

Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Shirley 

Martinson, 6432 General Green Way, 

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

Dated: June 10, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–14176 Filed 6–16–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

28766; File No. 812–13499] 

X Exchange-Traded Funds, Inc., et al.; 

Notice of Application 

June 11, 2009. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice of application to amend 

a prior order under section 6(c) of the 

Investment Company Act of 1940 

(‘‘Act’’) granting an exemption from 

sections 2(a)(32), 5(a)(1), 22(d), and 

24(d) of the Act and rule 22c–1 under 

the Act, and under sections 6(c) and 

17(b) of the Act for an exemption from 

sections 17(a)(1) and 17(a)(2) of the Act. 

SUMMARY OF APPLICATION: Applicants 

request an order to amend a prior order 

that permits: (a) Series of open-end 

management investment companies to 

issue shares (‘‘Shares’’) redeemable only 

in large aggregations (‘‘Creation Units’’); 

(b) secondary market transactions in the 

Shares to occur at negotiated prices; (c) 

dealers to sell Shares to purchasers in 

the secondary market unaccompanied 

by a prospectus when prospectus 

delivery is not required by the 

Securities Act of 1933 (‘‘Securities 

Act’’); and (d) certain affiliated persons 

of the series to deposit securities into, 

and receive securities from, the series in 

connection with the purchase and 

redemption of Creation Units (‘‘Prior 

Order’’).1 Applicants seek to amend the 

Prior Order in order to provide that (a) 

a series will invest at least 80%, rather 

than 90%, of its total assets in the 

component securities (‘‘Component 

Securities’’) of its underlying index 

(‘‘Underlying Index’’); (b) the 

Underlying Index may be reconstituted 

and rebalanced no more frequently than 

on a monthly, rather than on a quarterly, 

basis (‘‘Monthly Reconstitution’’); and 

(c) the Indicative Optimized Portfolio 

Value (as defined below) may be 

calculated and disseminated by a 

national securities exchange 

(‘‘Exchange’’) or by a major market data 

vendor. Applicants also seek to amend 

the Prior Order to delete the relief 

granted in the Prior Order from section 

24(d) of the Act and revise the 

applications on which the Prior Order 

was issued (‘‘Prior Applications’’) 

accordingly and to amend the terms and 

conditions of the Prior Applications 

with respect to certain disclosure 

requirements. 

APPLICANTS: X Exchange-Traded Funds, 

Inc. (‘‘X Funds’’); XShares Advisors LLC 

(formerly, X–Shares Advisors, LLC) (the 

‘‘Advisor’’); XShares Group, Inc. 

(formerly, Ferghana-Wellspring LLC); 

and TDX Independence Funds, Inc. 

(formerly, TDAX Funds, Inc.) (‘‘TDX 

Funds’’). 

FILING DATES: The application was filed 

on November 9, 2007, and amended on 


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