Federal Register 60-Day Notice

13936

Federal Register / Vol. 90, No. 58 / Thursday, March 27, 2025 / Notices

Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments

[FR Doc. 2025–05205 Filed 3–26–25; 8:45 am]

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:
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
EMERALD–2025–08 on the subject line.
Paper Comments

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• 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–EMERALD–2025–08. 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 website (https://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 website 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–EMERALD–2025–08 and should be
submitted on or before April 17, 2025.

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BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[OMB Control No. 3235–0692]

Proposed Collection; Comment
Request; Extension: Regulation S–ID

Electronic Comments

VerDate Sep<11>2014

For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Deputy Secretary.

Jkt 265001

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
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Regulation S–ID (17 CFR 248),
including the information collection
requirements thereunder, is designed to
better protect investors from the risks of
identity theft. Under Regulation S–ID,
SEC-regulated entities are required to
develop and implement reasonable
policies and procedures to identify,
detect, and respond to relevant red flags
(the ‘‘Identity Theft Red Flags Rules’’)
and, in the case of entities that issue
credit or debit cards, to assess the
validity of, and communicate with
cardholders regarding, address changes.
Section 248.201 of Regulation S–ID
includes the following information
collection requirements for each SECregulated entity that qualifies as a
‘‘financial institution’’ or ‘‘creditor’’
under Regulation S–ID and that offers or
maintains covered accounts: (i) creation
and periodic updating of an identity
theft prevention program (‘‘Program’’)
that is approved by the board of
directors, an appropriate committee
thereof, or a designated senior
management employee; (ii) periodic
staff reporting to the board of directors
on compliance with the Identity Theft
Red Flags Rules and related guidelines;
and (iii) training of staff to implement
the Program. Section 248.202 of
Regulation S–ID includes the following
information collection requirements for
each SEC-regulated entity that is a credit
18 17

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CFR 200.30–3(a)(12) and (59).

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or debit card issuer: (i) establishment of
policies and procedures that assess the
validity of a change of address
notification if a request for an additional
or replacement card on the account
follows soon after the address change;
and (ii) notification of a cardholder,
before issuance of an additional or
replacement card, at the previous
address or through some other
previously agreed-upon form of
communication, or alternatively,
assessment of the validity of the address
change request through the entity’s
established policies and procedures.
SEC staff estimates of the hour
burdens associated with section 248.201
under Regulation S–ID include the onetime burden of complying with this
section for newly-formed SEC-regulated
entities, as well as the ongoing costs of
compliance for all SEC-regulated
entities. All newly-formed financial
institutions and creditors would be
required to conduct an initial
assessment of covered accounts, which
SEC staff estimates would entail a onetime burden of 2 hours. Staff estimates
that this burden would result in a cost
of $1,022 to each newly-formed
financial institution or creditor.1 To the
extent a financial institution or creditor
offers or maintains covered accounts,
SEC staff estimates that the financial
institution or creditor would also incur
a one-time burden of 25 hours to
develop and obtain board approval of a
Program, and a one-time burden of 4
hours to train the financial institution’s
or creditor’s staff, for a total of 29
additional burden hours. Staff estimates
that these burdens would result in
additional costs of $16,980 for each
financial institution or creditor that
offers or maintains covered accounts.2
SEC staff estimates that approximately
539 SEC-regulated financial institutions
and creditors are newly formed each
year.3 Each of these 539 entities will
1 This estimate is based on the following
calculation: 2 hours × $511 (hourly rate for internal
counsel) = $1,022; see infra note 2 (discussing the
methodology for estimating the hourly rate for
internal counsel).
2 SEC staff estimates that, of the 29 hours
incurred to develop and obtain board approval of
a Program and train the financial institution’s or
creditor’s staff, 10 hours will be spent by internal
counsel at an hourly rate of $511, 17 hours will be
spent by administrative assistants at an hourly rate
of $100, and 2 hours will be spent by the board of
directors as a whole at an hourly rate of $5,085;
thus, the estimated $16,980 in additional costs is
based on the following calculation: (10 hours ×
$511 = $5,110) + (17 hours × $100 = $1,700) + (2
hours × $5,085 = $10,170) = $16,980.
3 Based on a review of new registrations typically
filed with the SEC each year, SEC staff estimates
that approximately 1,228 investment advisers, 108
broker dealers, 24 investment companies, and 2
ESCs typically apply for registration with the SEC
or otherwise are newly formed each year, for a total

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need to conduct an initial assessment of
covered accounts, for a total of 1,078
hours at a total cost of $550,858.4 Of
these 539 entities, staff estimates that
approximately 90% (or 485) maintain
covered accounts.5 Accordingly, staff
estimates that the additional initial
burden for SEC-regulated entities that
are likely to qualify as financial
institutions or creditors and maintain
covered accounts is 14,065 hours at an
additional cost of $8,235,300.6 Thus, the
total initial estimated burden for all
newly-formed SEC-regulated entities is
15,143 hours at a total estimated cost of
$8,786,158.7
Each financial institution and creditor
would be required to conduct periodic
assessments to determine if the entity
offers or maintains covered accounts,
which SEC staff estimates would entail
an annual burden of 1 hour per entity.
Staff estimates that this burden would
result in an annual cost of $511 to each
financial institution or creditor.8 To the
extent a financial institution or creditor
offers or maintains covered accounts,
staff estimates that the financial
institution or creditor also would incur
an annual burden of 2.5 hours to
prepare and present an annual report to
the board, and an annual burden of 7
hours to periodically review and update
the Program (including review and
preservation of contracts with service
providers, as well as review and
preservation of any documentation
received from service providers). Staff
of 1,362 entities that could be financial institutions
or creditors; of these, staff estimates that all of the
investment companies, ESCs, and broker-dealers are
likely to qualify as financial institutions or
creditors, and 33% of investment advisers (or 405)
are likely to qualify; see Identity Theft Red Flags,
Investment Company Act Release No. 30456 (Apr.
10, 2013) (‘‘Adopting Release’’) at n.190 (discussing
the staff’s analysis supporting its estimate that 33%
of investment advisers are likely to qualify as
financial institutions or creditors); we therefore
estimate that a total of 539 total financial
institutions or creditors will bear the initial onetime burden of assessing covered accounts under
Regulation S–ID.
4 These estimates are based on the following
calculations: 539 entities × 2 hours = 1,078 hours;
539 entities × $1,022 = $550,858.
5 In the Proposing Release, the SEC requested
comment on the estimate that approximately 90%
of all financial institutions and creditors maintain
covered accounts; the SEC received no comments
on this estimate.
6 These estimates are based on the following
calculations: 485 financial institutions and creditors
that maintain covered accounts × 29 hours = 14,065
hours; 485 financial institutions and creditors that
maintain covered accounts × $16,980 = $8,235,300.
7 These estimates are based on the following
calculations: 1,078 hours + 14,065 hours = 15,143
hours; $550,858 + $8,235,300 = $8,786,158.
8 This estimate is based on the following
calculation: 1 hour × $511 (hourly rate for internal
counsel) = $511; see supra note 2 (discussing the
methodology for estimating the hourly rate for
internal counsel).

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estimates that these burdens would
result in additional annual costs of
$9,429 for each financial institution or
creditor that offers or maintains covered
accounts.9
SEC staff estimates that there are
10,055 SEC-regulated entities that are
either financial institutions or creditors,
and that all of these will be required to
periodically review their accounts to
determine if they offer or maintain
covered accounts, for a total of 10,055
hours for these entities at a total cost of
$5,138,105.10 Of these 10,055 entities,
staff estimates that approximately 90
percent, or 9,050, maintain covered
accounts, and thus will need the
additional burdens related to complying
with the rules.11 Accordingly, staff
estimates that the additional annual
burden for SEC-regulated entities that
qualify as financial institutions or
creditors and maintain covered accounts
is 85,975 hours at an additional cost of
$85,332,450.12 Thus, the total estimated
ongoing annual burden for all SECregulated entities is 96,030 hours at a
total estimated annual cost of
$90,470,555.13
9 Staff estimates that, of the 9.5 hours incurred to
prepare and present the annual report to the board
and periodically review and update the Program,
8.5 hours will be spent by internal counsel at an
hourly rate of $511, and 1 hour will be spent by
the board of directors as a whole at an hourly rate
of $5,085; thus, the estimated $9,429 in additional
annual costs is based on the following calculation:
(8.5 hours × $511 = $4,344) + (1 hour × $5,085 =
$5,085) = $9,429; see supra note 2 (discussing the
methodology for estimating the hourly rate for
internal counsel and the board of directors).
10 Based on a review of entities that the SEC
regulates, SEC staff estimates that, as of September
30, 2024, there are approximately 15,968
investment advisers, 3,380 broker-dealers, 1,359
active open-end investment companies, and 47
ESCs; of these, staff estimates that all of the brokerdealers, open-end investment companies and ESCs
are likely to qualify as financial institutions or
creditors; we also estimate that approximately 33%
of investment advisers, or 5,269 investment
advisers, are likely to qualify; see Adopting Release,
supra note Error! Bookmark not defined., at n.190
(discussing the staff’s analysis supporting its
estimate that 33% of investment advisers are likely
to qualify as financial institutions or creditors); we
therefore estimate that a total of 10,055 financial
institutions or creditors will bear the ongoing
burden of assessing covered accounts under
Regulation S–ID (the SEC staff estimates that the
other types of entities that are covered by the scope
of the SEC’s rules will not be financial institutions
or creditors and therefore will not be subject to the
rules’ requirements.)
11 See supra note 5 and accompanying text; if a
financial institution or creditor does not maintain
covered accounts, there would be no ongoing
annual burden for purposes of the PRA.
12 These estimates are based on the following
calculations: 9,050 financial institutions and
creditors that maintain covered accounts × 9.5
hours = 85,975 hours; 9,050 financial institutions
and creditors that maintain covered accounts ×
$9,429 = $85,332,450.
13 These estimates are based on the following
calculations: 10,055 hours + 85,975 hours = 96,030
hours; $5,138,105 + $85,332,450 = $90,470,555.

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13937

The collections of information
required by section 248.202 will apply
only to SEC-regulated entities that issue
credit or debit cards.14 SEC staff
understands that SEC-regulated entities
generally do not issue credit or debit
cards, but instead partner with other
entities, such as banks, that issue cards
on their behalf. These other entities,
which are not regulated by the SEC, are
already subject to substantially similar
change of address obligations pursuant
to the Agencies’ identity theft red flags
rules. Therefore, staff does not expect
that any SEC-regulated entities will be
subject to the information collection
requirements of section 248.202, and
accordingly, staff estimates that there is
no hour or cost burden for SECregulated entities related to section
248.202.
In total, SEC staff estimates that the
aggregate annual information collection
burden of Regulation S–ID is 111,173
hours (15,143 hours + 96,030 hours).
This estimate of burden hours is made
solely for the purposes of the Paperwork
Reduction Act and is not derived from
a quantitative, comprehensive, or even
representative survey or study of the
burdens associated with Commission
rules and forms. Compliance with
Regulation S–ID, including compliance
with the information collection
requirements thereunder, is mandatory
for each SEC-regulated entity that
qualifies as a ‘‘financial institution’’ or
‘‘creditor’’ under Regulation S–ID (as
discussed above, certain collections of
information under Regulation S–ID are
mandatory only for financial
institutions or creditors that offer or
maintain covered accounts). Responses
will not be kept confidential. 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.
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 OMB
Control Number.
Written comments are invited on: (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimate of the burden of 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
14 § 248.202(a).

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Federal Register / Vol. 90, No. 58 / Thursday, March 27, 2025 / Notices

through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
by May 27, 2025.
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 comment to
Austin Gerig, Director/Chief Data
Officer, Securities and Exchange
Commission, c/o Tanya Ruttenberg, 100
F Street NE, Washington, DC 20549 or
send an email to:
PaperworkReductionAct@sec.gov.
Dated: March 21, 2025.
Stephanie J. Fouse,
Assistant Secretary.
[FR Doc. 2025–05198 Filed 3–26–25; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–102714; File No. SR–
CboeBYX–2025–006]

Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Increase the
Monthly Fee for 10 Gb Physical Ports
March 21, 2025.

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 March 13,
2025, Cboe BYX Exchange, Inc.
(‘‘Exchange’’ or ‘‘BYX’’) 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
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.

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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to increase
the monthly fee for 10 Gb physical
ports. The text of the proposed rule
change is provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (http://markets.cboe.com/us/
equities/regulation/rule_filings/BYX/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
1 15
2 17

U.S.C. 78s(b)(1).
CFR 240.19b–4.

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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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
fee schedule relating to physical
connectivity fees.3
By way of background, 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
assesses the following physical
connectivity fees for Members and nonMembers on a monthly basis: $2,500 per
physical port for a 1 gigabit (‘‘Gb’’)
circuit and $7,500 per physical port for
a 10 Gb circuit. The Exchange proposes
to increase the monthly fee for 10 Gb
physical ports from $7,500 to $8,500 per
port. The Exchange notes the proposed
3 The Exchange initially filed the proposed fee
changes on July 3, 2023 (SR–CboeBYX–2023–010).
On September 1, 2023, the Exchange withdrew that
filing and submitted SR–CboeBYX–2023–013. On
September 29, 2023, the Securities and Exchange
Commission issued a Suspension of and Order
Instituting Proceedings to Determine whether to
Approve or Disapprove a Proposed Rule Change to
Amend its Fees Schedule Related to Physical Port
Fees (the ‘‘OIP’’) in anticipation of a possible U.S.
government shutdown. On September 29, 2023, the
Exchange filed the proposed fee change (SR–
CboeBYX–2023–014). On October 13, 2023, the
Exchange withdrew that filing and submitted SR–
CboeBYX–2023–015. On December 12, 2023,
Exchange filed the proposed fee change (SR–
CboeBYX–2023–018). On December 12, 2023, the
Exchange withdrew that filing and submitted SR–
CboeBYX–2023–019. On February 9, 2024, the
Exchange withdrew that filing and submitted SR–
CboeBYX–2024–006. On April 9, 2024, the
Exchange withdrew that filing and submitted SR–
Cboe–BYX–2024–012. On June 7, 2024, the
Exchange withdrew that filing and submitted SR–
CboeBYX–2024–021. On August 29, 2024, the
Exchange withdrew that filing and submitted SR–
CboeBYX–2024–032. On October 25, 2024, the
Exchange withdrew that filing and submitted SR–
CboeBYX–2024–039. On December 18, 2024, the
Exchange withdrew that filing and submitted SR–
CboeBYX–2024–049. On February 14, 2025, the
Exchange withdrew that filing and submitted SR–
CboeBYX–2025–003. On March 13, 2025, the
Exchange withdrew that filing and submitted this
filing..

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fee change better enables it to continue
to maintain and improve its market
technology and services and also notes
that the proposed fee amount, even as
amended, continues to be in line with,
or even lower than, amounts assessed by
other exchanges for similar
connections.4 The Exchange also notes
that a single 10 Gb physical port can be
used to access the Systems of the
following affiliate exchanges: the Cboe
BZX Exchange, Inc. (options and
equities), Cboe EDGX Exchange, Inc.
(options and equities platforms), Cboe
EDGA Exchange, Inc., and Cboe C2
Exchange, Inc., (‘‘Affiliate Exchanges’’).5
Notably, only one monthly fee currently
(and will continue) to apply per 10 Gb
physical port regardless of how many
affiliated exchanges are accessed
through that one port.6
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.7 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 8 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
4 See e.g., The Nasdaq Stock Market LLC
(‘‘Nasdaq’’), General 8, Connectivity to the
Exchange. Nasdaq and its affiliated exchanges
charge a monthly fee of $15,000 for each 10Gb Ultra
fiber connection to the respective exchange, which
is analogous to the Exchange’s 10Gb physical port.
See also New York Stock Exchange LLC, NYSE
American LLC, NYSE Arca, Inc., NYSE Chicago
Inc., NYSE National, Inc. Connectivity Fee
Schedule, which provides that 10 Gb LX LCN
Circuits (which are analogous to the Exchange’s 10
Gb physical port) are assessed $22,000 per month,
per port.
5 The Affiliate Exchanges are also submitting
contemporaneous identical rule filings.
6 The Exchange notes that conversely, other
exchange groups charge separate port fees for access
to separate, but affiliated, exchanges. See e.g.,
Securities and Exchange Release No. 99822 (March
21, 2024), 89 FR 21337 (March 27, 2024) (SR–
MIAX–2024–016).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).

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