[Federal Register Volume 90, Number 39 (Friday, February 28, 2025)]
[Notices]
[Page 10963]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-03280]
[[Page 10963]]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-792; OMB Control No. 3235-0739]
Submission for OMB Review; 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: 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'') 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 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 (``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. 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, 2023, the Commission estimates there are
approximately 206 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 approximately 371 hours annually for the 206 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.
Written comments are invited on: (a) whether this collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of the burden
imposed by the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information 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.
The public may view and comment on this information collection
request at: https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202411-3235-005 or send an email comment to
[email protected] within 30 days of the day
after publication of this notice by March 31, 2025.
Dated: February 25, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-03280 Filed 2-27-25; 8:45 am]
BILLING CODE 8011-01-P