[Federal Register Volume 83, Number 242 (Tuesday, December 18, 2018)]
[Notices]
[Pages 64906-64907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27267]
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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:
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,
SEC File No. 270-792; OMB Control No. 3235-0739
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
existing collection of information provided for in the following: 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)).
Rule 10b-10 under the Securities Exchange Act of 1934 (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. 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 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 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
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
[[Page 64907]]
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 March 31, 2018, the Commission estimates there are
approximately 162 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 292 hours annually for the 162 carrying broker-dealers.
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 website: 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:
[email protected]; and (ii) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Candace Kenner, 100 F Street NE Washington, DC 20549, or by sending an
email to: [email protected]. Comments must be submitted to OMB within
30 days of this notice.
Dated: December 12, 2018.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018-27267 Filed 12-17-18; 8:45 am]
BILLING CODE 8011-01-P