Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices 53545 

7No changes are proposed to be made to Rule 

1059(b) or to the Commentary. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 12 17 CFR 200.30–3(a)(12). 

reference to Rule 1038, previously 

deleted from the rulebook.7

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,9

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

providing detailed procedures for 

cabinet trades without the participation 

of specialists. As noted above, 

specialists are no longer common on the 

trading floor. By adopting the proposed 

amendments to the cabinet rules 

detailed above, the Exchange will 

maintain the ability for market 

participants to close out positions in 

which the value of the contract is less 

than the value of the contract at the 

minimum increment. The proposed rule 

change will conform the description of 

procedures in Rule 1059 to actual 

current practice. The proposed rule 

change permits market participants to 

continue to execute cabinet trades on 

the Exchange, even without the 

participation of specialists. The changes 

to the priority in which cabinet rules are 

executed are necessary in view of the 

new procedures for execution of cabinet 

trades without the participation of a 

specialist. The proposed amendments 

promote just and equitable principles of 

trade by setting forth priority rules for 

trade executions, and by requiring use 

of Exchange designated cabinet 

transaction forms to record information 

and the submission of the forms to 

Nasdaq Market Operations staff for the 

clearance and reporting of the cabinet 

trades. 

The role of the specialist has changed 

on the Exchange, and specialists are no 

longer present in all options classes on 

the Exchange’s trading floor. The 

proposed rule change would maintain 

market participants’ ability to execute 

cabinet transactions on the Exchange’s 

trading floor, in an open manner and in 

compliance with new procedures 

specified in the revised rule. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change permits market 

participants to continue to execute 

cabinet trades on the Exchange, even 

without the participation of specialists. 

The proposed amendments will apply to 

all Floor Brokers equally and in the 

same way. Phlx notes that market 

participants may also execute cabinet 

transactions on other exchanges. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 10 and 

subparagraph (f)(6) of Rule 19b-4 

thereunder.11

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

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– 

Phlx–2017–87 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–Phlx–2017–87. 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 Web site (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 Web site 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–Phlx–2017–87 and should 

be submitted on or before December 7, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24779 Filed 11–15–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 


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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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