47264 Federal Register / Vol. 82, No. 195 / Wednesday, October 11, 2017 / Notices 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

TIME AND DATE: Investor Advisory 

Committee will hold a meeting 9:30 a.m. 

on Thursday, October 12, 2017. 

PLACE: Multi-Purpose Room LL–006 at 

the Commission’s headquarters, 100 F 

Street NE., Washington, DC 20549. 

STATUS: This meeting will be open to the 

public. Seating will be on a first-come, 

first-served basis. Doors will open at 

9:00 a.m. Visitors will be subject to 

security checks. The meeting will be 

webcast on the Commission’s Web site 

at www.sec.gov. 

MATTERS TO BE CONSIDERED: On 

September 12, 2017, the Commission 

issued notice of the Committee meeting 

(Release No. 33–10412), indicating that 

the meeting is open to the public 

(except during that portion of the 

meeting reserved for an administrative 

work session during lunch), and 

inviting the public to submit written 

comments to the Committee. This 

Sunshine Act notice is being issued 

because a quorum of the Commission 

may attend the meeting. 

The agenda for the meeting includes: 

Remarks from Commissioners; a 

discussion regarding blockchain and 

other distributed ledger technology and 

implications for securities markets; an 

overview of law school clinic advocacy 

efforts on behalf of retail investors; a 

discussion regarding electronic delivery 

of information to retail investors (which 

may include a recommendation of the 

Investor as Purchaser Subcommittee); 

subcommittee reports; and a nonpublic 

administrative work session during 

lunch. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information and to ascertain 

what, if any, matters have been added, 

deleted or postponed; please contact 

Brent J. Fields from the Office of the 

Secretary at (202) 551–5400. 

Dated: October 5, 2017. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–21988 Filed 10–6–17; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: U.S. Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE., Washington, DC 

20549–2736 

Extension: 

Rule 15g–2, SEC File No. 270–381, OMB 

Control No. 3235–0434 

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’’) has submitted to the 

Office of Management and Budget 

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

previously approved collection of 

information provided for in Rule 15g–2 

(17 CFR 240.15g–2) under the Securities 

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

seq.) (‘‘Exchange Act’’). Rule 15g–2 (The 

‘‘Penny Stock Disclosure Rule’’) requires 

broker-dealers to provide their 

customers with a risk disclosure 

document, as set forth in Schedule 15G, 

prior to their first non-exempt 

transaction in a ‘‘penny stock.’’ As 

amended, the rule requires brokerdealers to obtain written 

acknowledgement from the customer 

that he or she has received the required 

risk disclosure document. The amended 

rule also requires broker-dealers to 

maintain a copy of the customer’s 

written acknowledgement for at least 

three years following the date on which 

the risk disclosure document was 

provided to the customer, the first two 

years in an accessible place. Rule 15g– 

2 also requires a broker-dealer, upon 

request of a customer, to furnish the 

customer with a copy of certain 

information set forth on the 

Commission’s Web site. 

The risk disclosure documents are for 

the benefit of the customers, to assure 

that they are aware of the risks of 

trading in ‘‘penny stocks’’ before they 

enter into a transaction. The risk 

disclosure documents are maintained by 

the broker-dealers and may be reviewed 

during the course of an examination by 

the Commission. 

There are approximately 198 brokerdealers that could potentially be subject 

to current Rule 15g–2. The Commission 

estimates that approximately 5% of 

registered broker-dealers are engaged in 

penny stock transactions, and thereby 

subject to the Rule (5% × approximately 

3,969 registered broker-dealers = 198 

broker-dealers). The Commission 

estimates that each one of these firms 

processes an average of three new 

customers for penny stocks per week. 

Thus, each respondent processes 

approximately 156 penny stock 

disclosure documents per year. If 

communications in tangible form alone 

are used to satisfy the requirements of 

Rule 15g–2, then the copying and 

mailing of the penny stock disclosure 

document takes no more than two 

minutes. Thus, the total associated 

burden is approximately 2 minutes per 

response, or an aggregate total of 312 

minutes per respondent. Since there are 

198 respondents, the current annual 

burden is 61,776 minutes (312 minutes 

per each of the 198 respondents) or 

1,030 hours for this third party 

disclosure burden. In addition, brokerdealers incur a recordkeeping burden of 

approximately two minutes per 

response when filing the completed 

penny stock disclosure documents as 

required pursuant to the Rule 

15(g)(2)(c), which requires a brokerdealer to preserve a copy of the written 

acknowledgement pursuant to Rule 

17a–4(b) of the Exchange Act. Since 

there are approximately 156 responses 

for each respondent, the respondents 

incur an aggregate recordkeeping 

burden of 61,776 minutes (198 

respondents × 156 responses for each × 

2 minutes per response) or 1,030 hours, 

under Rule 15g–2. Accordingly, the 

current aggregate annual hour burden 

associated with Rule 15g–2 (assuming 

that all respondents provide tangible 

copies of the required documents) is 

approximately 2,060 hours (1,030 third 

party disclosure hours + 1,030 

recordkeeping hours). 

The burden hours associated with 

Rule 15g–2 may be slightly reduced 

when the penny stock disclosure 

document required under the rule is 

provided through electronic means such 

as email from the broker-dealer (e.g., the 

broker-dealer respondent may take only 

one minute, instead of the two minutes 

estimated above, to provide the penny 

stock disclosure document by email to 

its customer). In this regard, if each of 

the customer respondents estimated 

above communicates with his or her 

broker-dealer electronically, the total 

ongoing respondent burden is 

approximately 1 minute per response, or 

an aggregate total of 156 minutes (156 

customers × 1 minutes per respondent). 

Assuming 198 respondents, the annual 

third party disclosure burden, if 

electronic communications were used 

by all customers, is 30,888 minutes (156 

minutes per each of the 198 

respondents) or 515 hours. If all 

respondents were to use electronic 

means, the recordkeeping burden would 

be 61,776 minutes or 1,030 hours (the 

same as above). Thus, if all brokerdealer respondents obtain and send the 

documents required under the rules 

electronically, the aggregate annual hour 

burden associated with Rule 15g–2 is 

1,545 (515 hours + 1,030 hours). 

In addition, if the penny stock 

customer requests a paper copy of the 

information on the Commission’s Web 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
Federal Register / Vol. 82, No. 195 / Wednesday, October 11, 2017 / Notices 47265 

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

2 17 CFR 240.19b–4. 

site regarding microcap securities, 

including penny stocks, from his or her 

broker-dealer, the printing and mailing 

of the document containing this 

information takes no more than two 

minutes per customer. Because many 

investors have access to the 

Commission’s Web site via computers 

located in their homes, or in easily 

accessible public places such as 

libraries, then, at most, a quarter of 

customers who are required to receive 

the Rule 15g–2 disclosure document 

request that their broker-dealer provide 

them with the additional microcap and 

penny stock information posted on the 

Commission’s Web site. Thus, each 

broker-dealer respondent processes 

approximately 39 requests for paper 

copies of this information per year or an 

aggregate total of 78 minutes per 

respondent (2 minutes per customer × 

39 requests per respondent). Since there 

are 198 respondents, the estimated 

annual burden is 15,444 minutes (78 

minutes per each of the 198 

respondents) or 257 hours. This is a 

third party disclosure type of burden. 

We have no way of knowing how 

many broker-dealers and customers will 

choose to communicate electronically. 

Assuming that 50 percent of 

respondents continue to provide 

documents and obtain signatures in 

tangible form and 50 percent choose to 

communicate electronically to satisfy 

the requirements of Rule 15g–2, the total 

aggregate burden hours would be 2,060 

((aggregate burden hours for sending 

disclosure documents and obtaining 

signed customer acknowledgments in 

tangible form × 0.50 of the respondents 

= 1,030 hours) + (aggregate burden 

hours for electronically signed and 

transmitted documents × 0.50 of the 

respondents = 773 hours) + (257 burden 

hours for those customers making 

requests for a copy of the information on 

the Commission’s Web site)). 

The Commission does not maintain 

the risk disclosure document. Instead, it 

must be retained by the broker-dealer 

for at least three years following the date 

on which the risk disclosure document 

was provided to the customer, the first 

two years in an accessible place. The 

collection of information required by 

the rule is mandatory. The risk 

disclosure document is otherwise 

governed by the internal policies of the 

broker-dealer regarding confidentiality, 

etc. 

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. 

The public may view background 

documentation for this information 

collection at the following Web site: 

www.reginfo.gov. Comments should be 

directed to: (i) Desk Officer for the 

Securities and Exchange Commission, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503, 

or by sending an email to: Shagufta_

Ahmed@omb.eop.gov; and (ii) Pamela 

Dyson, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o Remi Pavlik-Simon, 

100 F Street NE., Washington, DC 

20549, or by sending an email to: PRA_

Mailbox@sec.gov. Comments must be 

submitted to OMB within 30 days of 

this notice. 

Dated: October 4, 2017. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21910 Filed 10–10–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

TIME AND DATE: 2:00 p.m. on Wednesday, 

October 11, 2017. 

PLACE: Closed Commission Hearing 

Room. 

STATUS: This meeting will be closed to 

the public. 

MATTERS TO BE CONSIDERED: 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the closed meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (a)(5), (a)(7), 

(a)(9)(ii) and (a)(10), permit 

consideration of the scheduled matters 

at the closed meeting. 

Commissioner Stein, as duty officer, 

voted to consider the items listed for the 

closed meeting in closed session. 

The subject matters of the closed 

meeting will be: 

Institution and settlement of 

injunctive actions; 

Institution and settlement of 

administrative proceedings; and 

Other matters relating to enforcement 

proceedings. 

CONTACT PERSON FOR MORE INFORMATION: 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. For further 

information and to ascertain what, if 

any, matters have been added, deleted 

or postponed; please contact Brent J. 

Fields from the Office of the Secretary 

at (202) 551–5400. 

Dated: October 4, 2017. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–21987 Filed 10–6–17; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81815; File No. SRBatsBZX–2017–58] 

Self-Regulatory Organizations; Bats 

BZX Exchange, Inc.; Notice of Filing of 

a Proposed Rule Change To List and 

Trade Shares of the CBOE S&P 500®

Dividend Aristocrats® Target Income 

Index ETF Under the ETF Series 

Solutions Trust, Under Rule 

14.11(c)(3), Index Fund Shares 

October 4, 2017. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on 

September 19, 2017, Bats BZX 

Exchange, Inc. (the ‘‘Exchange’’ or 

‘‘BZX’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared by the Exchange. 

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 filed a proposal to list 

and trade shares of the CBOE S&P 500 ®

Dividend Aristocrats® Target Income 

Index ETF under the ETF Series 

Solutions Trust (the ‘‘Trust’’), under 

Rule 14.11(c)(3) (‘‘Index Fund Shares’’). 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.bats.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 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 


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