53546 Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices 

1 15 U.S.C. 80a. 

2Section 4(3) of the Act (15 U.S. C. 80a–4(3)) 

defines ‘‘management company’’ as ‘‘any 

investment company other than a face amount 

certificate company or a unit investment trust.’’ 

3This estimate is based on statistics compiled by 

Commission staff as of April 30, 2017. The number 

of management investment company portfolios that 

make distributions for which compliance with rule 

19a–1 is required depends on a wide range of 

factors and can vary greatly across years. Therefore, 

the calculation of estimated burden hours is based 

on the total number of management investment 

company portfolios, each of which may be subject 

to rule 19a–1. 

Commission, Office of FOIA Services, 

100 F Street NE., Washington, DC 

20549–2736 

Extension: 

Rule 17f–2(d); SEC File No. 270–36, OMB 

Control No. 3235–0028 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

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

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rule 17f–2(d) (17 CFR 240.17f–2(d)), 

under the Securities Exchange Act of 

1934 (15 U.S.C. 78a et seq.). 

Rule 17f–2(d) requires that records 

created pursuant to the fingerprinting 

requirements of Section 17(f)(2) of the 

Act be maintained and preserved by 

every member of a national securities 

exchange, broker, dealer, registered 

transfer agent and registered clearing 

agency (‘‘covered entities’’ or 

‘‘respondents’’); permits, under certain 

circumstances, the records required to 

be maintained and preserved by a 

member of a national securities 

exchange, broker, or dealer to be 

maintained and preserved by a selfregulatory organization that is also the 

designated examining authority for that 

member, broker or dealer; and permits 

the required records to be preserved on 

microfilm. The general purpose of Rule 

17f–2 is to: (i) Identify security risk 

personnel; (ii) provide criminal record 

information so that employers can make 

fully informed employment decisions; 

and (iii) deter persons with criminal 

records from seeking employment or 

association with covered entities. The 

rule enables the Commission or other 

examining authority to ascertain 

whether all covered persons are being 

fingerprinted and whether proper 

procedures regarding fingerprinting are 

being followed. Retention of these 

records for a period of not less than 

three years after termination of a 

covered person’s employment or 

relationship with a covered entity 

ensures that law enforcement officials 

will have easy access to fingerprint 

cards on a timely basis. This in turn acts 

as an effective deterrent to employee 

misconduct. 

Approximately 4,200 respondents are 

subject to the recordkeeping 

requirements of the rule. Each 

respondent maintains approximately 68 

new records per year, each of which 

takes approximately 2 minutes per 

record to maintain, for an annual 

burden of approximately 2.2666667 

hours (68 records times 2 minutes). The 

total annual burden for all respondents 

is approximately 9,520 (4,200 

respondents times 2.2666667 hours). As 

noted above, all records maintained 

subject to the rule must be retained for 

a period of not less than three years after 

termination of a covered person’s 

employment or relationship with a 

covered entity. In addition, we estimate 

the total cost to respondents is 

approximately $42,000 in third party 

storage costs. 

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: November 9, 2017. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24752 Filed 11–15–17; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE., Washington, DC 

20549–2736 

Extension: 

Rule 19a–1; SEC File No. 270–240, OMB 

Control No. 3235–0216 

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 a 

request for extension of the previously 

approved collection of information 

discussed below. 

Section 19(a) (15 U.S.C. 80a–19(a)) of 

the Investment Company Act of 1940 

(the ‘‘Act’’) 1 makes it unlawful for any 

registered investment company to pay 

any dividend or similar distribution 

from any source other than the 

company’s net income, unless the 

payment is accompanied by a written 

statement to the company’s 

shareholders which adequately 

discloses the sources of the payment. 

Section 19(a) authorizes the 

Commission to prescribe the form of 

such statement by rule. 

Rule 19a–1 (17 CFR 270.19a–1) under 

the Act, entitled ‘‘Written Statement to 

Accompany Dividend Payments by 

Management Companies,’’ sets forth 

specific requirements for the 

information that must be included in 

statements made pursuant to section 

19(a) by or on behalf of management 

companies.2 The rule requires that the 

statement indicate what portions of 

distribution payments are made from 

net income, net profits from the sale of 

a security or other property (‘‘capital 

gains’’) and paid-in capital. When any 

part of the payment is made from capital 

gains, rule 19a–1 also requires that the 

statement disclose certain other 

information relating to the appreciation 

or depreciation of portfolio securities. If 

an estimated portion is subsequently 

determined to be significantly 

inaccurate, a correction must be made 

on a statement made pursuant to section 

19(a) or in the first report to 

shareholders following the discovery of 

the inaccuracy. 

The purpose of rule 19a–1 is to afford 

fund shareholders adequate disclosure 

of the sources from which distribution 

payments are made. The rule is 

intended to prevent shareholders from 

confusing income dividends with 

distributions made from capital sources. 

Absent rule 19a–1, shareholders might 

receive a false impression of fund gains. 

Based on a review of filings made 

with the Commission, the staff estimates 

that approximately 11,818 series of 

registered investment companies that 

are management companies may be 

subject to rule 19a–1 each year,3 and 


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Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices 53547 

4A few portfolios make monthly distributions 

from sources other than net income, so the rule 

requires them to send out a statement 12 times a 

year. Other portfolios never make such 

distributions. 

5This estimate is based on the following 

calculation: 11,818 management investment 

company portfolios × 2 statements per year × 1 hour 

per statement = 23,636 burden hours. 

6Hourly rates are derived from the Securities 

Industry and Financial Markets Association 

(‘‘SIFMA’’), Management and Professional Earnings 

in the Securities Industry 2013, modified to account 

for an 1800-hour work-year and inflation, and 

multiplied by 5.35 to account for bonuses, firm size, 

employee benefits, and overhead. 

7Hourly rates are derived from SIFMA’s Office 

Salaries in the Securities Industry 2013, modified 

to account for an 1800-hour work-year and 

multiplied by 2.93 to account for bonuses, firm size, 

employee benefits and overhead. 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer that has been admitted 

to membership in the Exchange.’’ See Exchange 

Rule 1.5(n). 

6The term ‘‘System’’ is defined as ‘‘the electronic 

communications and trading facility designated by 

the Board through which securities orders of Users 

are consolidated for ranking, execution and, when 

Continued 

that each portfolio on average mails two 

statements per year to meet the 

requirements of the rule.4 The staff 

further estimates that the time needed to 

make the determinations required by the 

rule and to prepare the statement 

required under the rule is 

approximately 1 hour per statement. 

The total annual burden for all 

portfolios therefore is estimated to be 

approximately 23,636 burden hours.5

The staff estimates that approximately 

one-third of the total annual burden 

(7,879 hours) would be incurred by a 

paralegal with an average hourly wage 

rate of approximately $205 per hour,6

and approximately two-thirds of the 

annual burden (15,757 hours) would be 

incurred by a compliance clerk with an 

average hourly wage rate of $66 per 

hour.7 The staff therefore estimates that 

the aggregate annual cost of complying 

with the paperwork requirements of the 

rule is approximately $2,655,157 ((7,879 

hours × $205 = $1,615,195) + (15,757 

hours × $66 = $1,039,962)). 

To comply with state law, many 

investment companies already must 

distinguish the different sources from 

which a shareholder distribution is paid 

and disclose that information to 

shareholders. Thus, many investment 

companies would be required to 

distinguish the sources of shareholder 

dividends whether or not the 

Commission required them to do so 

under rule 19a–1. 

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 of the 

costs of Commission rules. Compliance 

with the collection of information 

required by rule 19a–1 is mandatory for 

management companies that make 

statements to shareholders pursuant to 

section 19(a) of the Act. 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. 

The public may view the 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 send an email to: PRA_Mailbox@

sec.gov. Comments must be submitted to 

OMB within 30 days of this notice. 

Dated: November 9, 2017. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24749 Filed 11–15–17; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82052; File No. SRBatsBZX–2017–76] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Modify Its 

Fees for Physical Ports as They Apply 

to the Exchange’s Equity Options 

Platform 

November 9, 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 November 

2, 2017, Cboe BZX Exchange, Inc. 

(‘‘BZX’’ or the ‘‘Exchange’’) (formerly 

known as Bats BZX Exchange, Inc.) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Exchange has designated the 

proposed rule change as one 

establishing or changing a member due, 

fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. 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 

amend the fee schedule applicable to 

Members 5 and non-Members of the 

Exchange pursuant to BZX Rules 15.1(a) 

and (c) to modify its fees for physical 

ports as they apply to the Exchange’s 

equity options platform (‘‘BZX 

Options’’). 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.markets.cboe.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 

proposed rule change. The text of these 

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 

A physical port is utilized by a 

Member or non-Member to connect to 

the Exchange at the data centers where 

the Exchange’s servers are located. The 

Exchange currently maintains a 

presence in two third-party data centers: 

(i) The primary data center where the 

Exchange’s business is primarily 

conducted on a daily basis, and (ii) a 

secondary data center, which is 

predominantly maintained for business 

continuity purposes. The Exchange 

currently assesses the following 

physical connectivity fees for Members 

and non-Members on a monthly basis: 

$2,000 per physical port that connects 

to the System 6 via 1 gigabyte circuit; 


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