Document ID: SEC-2019-1024-0002
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2022-01-13T05:00Z

[Federal Register Volume 87, Number 9 (Thursday, January 13, 2022)]
[Notices]
[Pages 2198-2199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00587]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-792; OMB Control No. 3235-0739]

Proposed Collection; Comment Request; Extension: Order Granting a 
Conditional Exemption Under the Securities Exchange Act of 1934 From 
the Confirmation Requirements of Exchange Act Rule 10b-10(a) for 
Certain Transactions in Money Market Funds

Upon Written Request, Copies Available From: U.S. Securities and 
Exchange Commission, Office of FOIA Services, 100 F Street NE, 
Washington, DC 20549-2736

    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'') is soliciting comments on the existing 
collection of information provided for in the Order Granting a 
Conditional Exemption under the Securities Exchange Act of 1934 from 
the Confirmation Requirements of Exchange Act Rule 10b-10(a) for 
Certain Transactions in Money Market Funds (17 CFR 240.10b-10(a)). The 
Commission plans to submit this existing collection of information to 
the Office of Management and Budget (``OMB'') for extension and 
approval.

[[Page 2199]]

    Rule 10b-10 under the Securities Exchange Act of 1934 (``Exchange 
Act'') (15 U.S.C. 78a et seq.) generally requires broker-dealers to 
provide customers with specified information relating to their 
securities transactions at or before the completion of the 
transactions. Exchange Act Rule 10b-10(b), however, provides an 
exception from this requirement for certain transactions in money 
market funds that attempt to maintain a stable net asset value when no 
sales load or redemption fee is charged. The exception permits broker-
dealers to provide transaction information to money market fund 
shareholders on a monthly, rather than immediate, basis, subject to the 
conditions. Amendments to Rule 2a-7 (17 CFR 270.2a-7) of the Investment 
Company Act of 1940 (``Investment Company Act'') (15 U.S.C. 80a-1 et 
seq.) among other things, means, absent an exemption, broker-dealers 
would not be able to continue to rely on the exception under Exchange 
Act Rule 10b-10(b) for transactions in money market funds operating in 
accordance with Investment Company Act Rule 2a-7(c)(1)(ii).\1\
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    \1\ See generally Money Market Fund Reform; Amendments to Form 
PF, Securities Act Release No. 9408, Investment Advisers Act Release 
No. 3616, Investment Company Act Release No. 30551 (June 5, 2013), 
78 FR 36834, 36934 (June 19, 2013); see also Exchange Act Rule 10b-
10(b)(1), 17 CFR 240.10b-10(b)(1) (limiting alternative monthly 
reporting to money market funds that attempt to maintain a stable 
NAV).
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    In 2015, the Commission issued an Order Granting a Conditional 
Exemption under the Securities Exchange Act of 1934 From The 
Confirmation Requirements of Exchange Act Rule 10b-10(a) For Certain 
Transactions In Money Market Funds (``Order'') \2\ which allows broker-
dealers, subject to certain conditions, to provide transaction 
information to investors in any money market fund operating pursuant to 
Investment Company Act Rule 2a-7(c)(1)(ii) on a monthly basis in lieu 
of providing immediate confirmations as required under Exchange Act 
Rule 10b-10(a) (``the Exemption''). Accordingly, to be eligible for the 
Exemption, a broker-dealer must (1) provide an initial written 
notification to the customer of its ability to request delivery of 
immediate confirmations consistent with the written notification 
requirements of Exchange Act Rule 10b-10(a), and (2) not receive any 
such request to receive immediate confirms from the customer.
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    \2\ See Order Granting a Conditional Exemption Under the 
Securities Exchange Act of 1934 From the Confirmation Requirements 
of Exchange Act Rule 10b-10(a) for Certain Transactions in Money 
Market Funds, Exchange Act Release No. 34-76480 (Nov. 19, 2015), 80 
FR 73849 (Nov. 25, 2015).
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    As of December 31, 2020, the Commission estimates there are 
approximately 154 broker-dealers that clear customer transactions or 
carry customer funds and securities who would be responsible for 
providing customer confirmations. The Commission estimates that the 
cost of the ongoing notification requirements would be minimal, 
approximately 5% of the initial burden which was previously estimated 
to be 36 hours per broker-dealer, or approximately 1.8 hours per 
broker-dealer per year, to provide ongoing notifications, or a total 
burden of 277 hours annually for the 154 carrying broker-dealers.
    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 shall 
have practical utility; (b) the accuracy of the Commission's estimate 
of the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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.
    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.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
[email protected].

    Dated: January 10, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-00587 Filed 1-12-22; 8:45 am]
BILLING CODE 8011-01-P