Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Provide for the Payment of Exchange Fees Through an Integrated Billing Process, 5236-5238 [2013-01376]
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Federal Register / Vol. 78, No. 16 / Thursday, January 24, 2013 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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
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 such
filing also will be available for
inspection and copying at the NYSE’s
principal office and on its Internet Web
site at www.nyse.com. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–NYSE–
2013–02, and should be submitted on or
before February 14, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.56
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–01375 Filed 1–23–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68684; File No. SR–NSX–
2013–01]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change to Provide
for the Payment of Exchange Fees
Through an Integrated Billing Process
Paper Comments
erowe on DSK2VPTVN1PROD with
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSE–2013–02 on the
subject line.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
10, 2013, National Stock Exchange, Inc.
(‘‘NSX®’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change, as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comment on the proposed rule
change from interested persons.
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2013–02. 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 (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
VerDate Mar<15>2010
15:12 Jan 23, 2013
Jkt 229001
January 17, 2013.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange is proposing to: (1)
define the term ‘‘Clearing Member’’
56 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
under Exchange Rule 1.5; and (2) adopt
Exchange Rule 16.4 to allow Equity
Trading Permit (‘‘ETP’’) 3 Holders to pay
their Exchange and vendor invoices for
Exchange-related services through the
Exchange’s integrated billing system
(‘‘IBS’’).
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nsx.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
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 parts 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 is proposing to: (1)
define the term ‘‘Clearing Member’’
under Exchange Rule 1.5; and (2) adopt
Exchange Rule 16.4 to allow ETP
Holders to pay their Exchange and
vendor invoices for Exchange-related
services through the Exchange’s IBS.
Definition of Clearing Member
The Exchange is proposing to: (1)
define the term ‘‘Clearing Member’’
under Exchange Rule 1.5 as ‘‘[a]n ETP
Holder that is a member of a Qualified
Clearing Agency defined in Section Q
below.’’ Section Q of Exchange Rule 1.5
defines ‘‘Qualified Clearing Agency’’ as
‘‘a clearing agency registered with the
Commission pursuant to Section 17A of
the Act that is deemed qualified by the
Exchange.’’ In adding a definition of
Clearing Member to Exchange Rule 1.5,
the Exchange does not propose to add
a new category of Exchange member or
alter current ETP Holder obligations.
The Exchange simply proposes this
definition to describe ETP Holders that
may also be members of a Qualified
Clearing Agency as a means to add
clarity to the integrated billing solution
3 Exchange Rule 1.5 defines the term ‘‘ETP’’ as an
Equity Trading Permit issued by the Exchange for
effecting approved securities transactions on the
Exchange’s Trading Facilities.
E:\FR\FM\24JAN1.SGM
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Federal Register / Vol. 78, No. 16 / Thursday, January 24, 2013 / Notices
under proposed Exchange Rule 16.4,
described below.
Integrated Billing Solution
The Exchange also proposes to adopt
Exchange Rule 16.4 to allow ETP
Holders to pay their Exchange and
vendor invoices for Exchange-related
services through the Exchange’s IBS,
unless payment by check of [sic] bank
transfer is agreed to between the
Exchange and ETP Holder.4 In lieu of
payment by check or bank transfer, ETP
Holders will now be required to
designate an ETP Holder that is also
Clearing Member (as defined above) to
pay their Exchange invoices via IBS.
The ETP Holder will continue to receive
monthly statements which outline their
monthly fees and charges. The Clearing
Member will pay to the Exchange on a
timely basis any amount that the ETP
holder does not dispute. The Exchange
will obtain these payments from the
Clearing Member’s account at the
Qualified Clearing Agency. The
Qualified Clearing Agency will not be
liable in connection with its forwarding
to the Exchange each month a payment
representing the total amount that the
Exchange advises the Qualified Clearing
Agency is owed to the Exchange.
Payment of invoices via the
Exchange’s IBS will increase efficiency
and reduce financial risk by allowing
the Exchange to draft against the
Clearing Member’s account the amount
due rather than invoicing each ETP
Holder separately and awaiting payment
via check or bank transfer. In addition,
the Exchange notes the Chicago Board
Options Exchange, Inc. (‘‘CBOE’’) 5 has
implemented a similar process for the
payment of invoices by its members.
The only difference between CBOE’s
requirements and those proposed by the
NSX, is that the CBOE rule appears to
required [sic] payment via IBS as
mandatory for all its members, while the
NSX’s proposed rule would allow
alternative payment methods if agreed
to with the Exchange.
erowe on DSK2VPTVN1PROD with
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section 6
4 The Exchange represents that, in the Exchange’s
written agreement with each vendor for which the
Exchange will collect payments via IBS, the
Exchange will require the vendor to include a
provision in the vendor’s written agreement with
each member from which payments via IBS will be
collected in which the member authorizes NSX to
assess and collect from the member through NSX’s
billing procedures and automated systems, on
behalf of the vendor, the fees assessed by the
vendor to the member for the vendor’s service. The
Exchange does not currently collect payments from
ETP Holders for vendor invoices, but may do so in
the future.
5 CBOE Rule 3.23.
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15:12 Jan 23, 2013
Jkt 229001
of the Act,6 and the rules and
regulations thereunder and, in
particular, the requirements of Section
6(b) of the Act.7 Specifically, the
Exchange believes the proposed rule
change furthers the objective of Section
6(b)(5) of the Act 8 because allowing
ETP Holders to pay their Exchange and
vendor invoices via IBS is designed to
foster cooperation and coordination
with persons engaged in regulating,
clearing, settling, and processing
information with respect to transactions
in securities, and to remove
impediments to and perfects [sic] the
mechanism of a free and open market
and a national market system. Payment
of invoices via the Exchange’s IBS
would increase efficiency and reduce
financial risk by allowing the Exchange
to draft against the Clearing Member’s
account the amount due, rather than the
ETP Holder paying their invoices via
check or bank transfer each month.
Lastly, the Exchange notes that the
proposed rule change is not unfairlydiscriminatory because payment of
invoices via IBS is voluntary and each
ETP Holder is able to continue to remit
payment of their invoices by check or
bank transfer.
The Exchange believes the proposed
definition of ‘‘Clearing Member’’ under
Exchange Rule 1.5 is consistent with
Section 6 of the Act,9 and the rules and
regulations thereunder and, in
particular, the requirements of Section
6(b) of the Act.10 Specifically, the
Exchange believes the proposed
definition furthers the objective of
Section 6(b)(5) of the Act 11 because the
proposed definition of ‘‘Clearing
Member’’ is designed to describe ETP
Holders who may also be members of a
Qualified Clearing Agency, thereby
adding clarity to the IBS under
proposed Exchange Rule 16.4.
Therefore, the Exchange believes the
proposed definition of ‘‘Clearing
Member’’ fosters cooperation and
coordination with persons engaged in
regulating, clearing, settling, and
processing information with respect to
transactions in securities, and removes
impediments to and perfect [sic] the
mechanism of a free and open market
and a national market system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
6 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(5).
11 15 U.S.C. 78f(b)(5).
7 15
PO 00000
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5237
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change will provide ETP
Holders the choice of paying their
invoices through IBS rather than via
check or bank transfer, which is
designed to increase efficiency and
reduce financial risk. The proposed
definition of ‘‘Clearing Member’’ under
Exchange Rule 1.5 is designed to add
clarity to the integrated billing solution
under proposed Exchange Rule 16.4 and
does not propose to add a new category
of Exchange members or alter current
ETP Holder obligations. Therefore, the
Exchange believes the proposed rule
change does not impose a burden on
competition because ETP Holders are
free to choose the payment method they
wish.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments on the proposed
rule change were neither solicited nor
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) 12 of the
Act and Rule 19b–4(f)(6) 13 thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) of the Act 14 normally
does not become operative prior to 30
days after the date of the filing.
However, pursuant to Rule 19b–
4(f)(6)(iii) of the Act,15 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
ETP Holders may use the IBS system for
invoicing and payment processing
immediately. The Commission believes
12 15
U.S.C. 78s(b)(3)(A).
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 the filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
13 17
E:\FR\FM\24JAN1.SGM
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Federal Register / Vol. 78, No. 16 / Thursday, January 24, 2013 / Notices
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest as it
will facilitate a more efficient method
for ETP Holders to pay invoices to the
Exchange and for the Exchange to
collect undisputed payments owed by
ETP Holders to the Exchange and to
vendors.16 Therefore, the Commission
hereby waives the 30-day operative
delay and designates the proposed rule
change to be operative upon filing with
the Commission.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or 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
change 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NSX–2013–01 on the
subject line.
erowe on DSK2VPTVN1PROD with
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NSX–2013–01. 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
16 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Mar<15>2010
15:12 Jan 23, 2013
Jkt 229001
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 on official business
days between the hours of 10:00 a.m.
and 3:00 p.m. Copies of such filing also
will be available for inspection and
copying at the principal offices of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–NSX–
2013–01, and should be submitted on or
before February 14, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–01376 Filed 1–23–13; 8:45 am]
BILLING CODE 8011–01–P
TRADE REPRESENTATIVE
Request for Comments on an
International Services Agreement
Office of the United States
Trade Representative.
ACTION: Request for comments and
notice of public hearing.
AGENCY:
On January 15, 2013, the
United States Trade Representative
notified Congress of the
Administration’s intention to enter into
negotiations for an International
Services Agreement (ISA) with an initial
group of 20 trading partners. The Office
of the United States Trade
Representative (USTR) is seeking public
comments regarding U.S. interests and
priorities with regard to this initiative.
Comments may be provided in writing
and orally at a public hearing.
DATES: Persons wishing to testify orally
at the hearing must provide written
notification of their intention, as well as
their testimony, by February 26, 2013.
The hearing will be held in Washington,
DC, on March 12, 2013. Written
comments are due by noon, February
26, 2013.
SUMMARY:
17 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00075
Fmt 4703
Sfmt 4703
Submissions via on-line:
https://www.regulations.gov. For
alternatives to on-line submissions
please contact Yvonne Jamison at (202)
395–3475.
ADDRESSES:
For
questions concerning requirements for
written comments, please contact
Yvonne Jamison at (202) 395–3475. All
other questions regarding this notice
should be directed to Amanda Horan at
(202) 395–4510.
FOR FURTHER INFORMATION CONTACT:
The
following twenty trading partners have
expressed their intention to participate
in negotiations with the United States to
establish an ISA: Australia, Canada,
Chile, Chinese Taipei, Colombia, Costa
Rica, European Union on behalf of its
member states, Hong Kong China,
Iceland, Israel, Japan, Korea, Mexico,
New Zealand, Norway, Pakistan,
Panama, Peru, Switzerland, and Turkey.
This group, which may expand as the
negotiations proceed, includes a range
of developed and developing
economies, representing nearly twothirds of global trade in services.
The agreement envisioned will place
a high priority on enabling U.S. service
suppliers to compete on the basis of
quality and competence rather than
nationality. The scope would be
comprehensive, permitting the coverage
of all services. To remain relevant into
the future, the agreement would be
flexible enough to address new issues
arising in the global marketplace and
changes in the way services are traded.
The Chair of the interagency Trade
Policy Staff Committee (TPSC) invites
interested persons to provide written
comments and/or oral testimony at a
public hearing that will assist USTR in
assessing U.S. objectives for the
proposed agreement. The TPSC Chair
invites comments on all relevant
matters, and, in particular, on the
following:
(a) Economic costs and benefits to
U.S. service suppliers and consumers of
eliminating barriers to services traded
either on a cross-border basis or through
a foreign commercial presence; (b)
existing barriers to trade in services that
should be addressed; (c) areas where
existing international rules governing
services trade, such as those found in
the General Agreement on Trade in
Services and U.S. free trade agreements,
could be strengthened or enhanced; (d)
relevant issues related to the supply of
services through various modes of
supply and technologies.
SUPPLEMENTARY INFORMATION:
E:\FR\FM\24JAN1.SGM
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]]>Agencies
[Federal Register Volume 78, Number 16 (Thursday, January 24, 2013)]
[Notices]
[Pages 5236-5238]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01376]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68684; File No. SR-NSX-2013-01]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Provide for the Payment of Exchange Fees Through an Integrated Billing
Process
January 17, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 10, 2013, National Stock Exchange, Inc.
(``NSX[supreg]'' or the ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change, as
described in Items I and II below, which Items have been prepared by
the Exchange. The Commission is publishing this notice to solicit
comment on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange is proposing to: (1) define the term ``Clearing
Member'' under Exchange Rule 1.5; and (2) adopt Exchange Rule 16.4 to
allow Equity Trading Permit (``ETP'') \3\ Holders to pay their Exchange
and vendor invoices for Exchange-related services through the
Exchange's integrated billing system (``IBS'').
---------------------------------------------------------------------------
\3\ Exchange Rule 1.5 defines the term ``ETP'' as an Equity
Trading Permit issued by the Exchange for effecting approved
securities transactions on the Exchange's Trading Facilities.
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nsx.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
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 parts 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 is proposing to: (1) define the term ``Clearing
Member'' under Exchange Rule 1.5; and (2) adopt Exchange Rule 16.4 to
allow ETP Holders to pay their Exchange and vendor invoices for
Exchange-related services through the Exchange's IBS.
Definition of Clearing Member
The Exchange is proposing to: (1) define the term ``Clearing
Member'' under Exchange Rule 1.5 as ``[a]n ETP Holder that is a member
of a Qualified Clearing Agency defined in Section Q below.'' Section Q
of Exchange Rule 1.5 defines ``Qualified Clearing Agency'' as ``a
clearing agency registered with the Commission pursuant to Section 17A
of the Act that is deemed qualified by the Exchange.'' In adding a
definition of Clearing Member to Exchange Rule 1.5, the Exchange does
not propose to add a new category of Exchange member or alter current
ETP Holder obligations. The Exchange simply proposes this definition to
describe ETP Holders that may also be members of a Qualified Clearing
Agency as a means to add clarity to the integrated billing solution
[[Page 5237]]
under proposed Exchange Rule 16.4, described below.
Integrated Billing Solution
The Exchange also proposes to adopt Exchange Rule 16.4 to allow ETP
Holders to pay their Exchange and vendor invoices for Exchange-related
services through the Exchange's IBS, unless payment by check of [sic]
bank transfer is agreed to between the Exchange and ETP Holder.\4\ In
lieu of payment by check or bank transfer, ETP Holders will now be
required to designate an ETP Holder that is also Clearing Member (as
defined above) to pay their Exchange invoices via IBS. The ETP Holder
will continue to receive monthly statements which outline their monthly
fees and charges. The Clearing Member will pay to the Exchange on a
timely basis any amount that the ETP holder does not dispute. The
Exchange will obtain these payments from the Clearing Member's account
at the Qualified Clearing Agency. The Qualified Clearing Agency will
not be liable in connection with its forwarding to the Exchange each
month a payment representing the total amount that the Exchange advises
the Qualified Clearing Agency is owed to the Exchange.
---------------------------------------------------------------------------
\4\ The Exchange represents that, in the Exchange's written
agreement with each vendor for which the Exchange will collect
payments via IBS, the Exchange will require the vendor to include a
provision in the vendor's written agreement with each member from
which payments via IBS will be collected in which the member
authorizes NSX to assess and collect from the member through NSX's
billing procedures and automated systems, on behalf of the vendor,
the fees assessed by the vendor to the member for the vendor's
service. The Exchange does not currently collect payments from ETP
Holders for vendor invoices, but may do so in the future.
---------------------------------------------------------------------------
Payment of invoices via the Exchange's IBS will increase efficiency
and reduce financial risk by allowing the Exchange to draft against the
Clearing Member's account the amount due rather than invoicing each ETP
Holder separately and awaiting payment via check or bank transfer. In
addition, the Exchange notes the Chicago Board Options Exchange, Inc.
(``CBOE'') \5\ has implemented a similar process for the payment of
invoices by its members. The only difference between CBOE's
requirements and those proposed by the NSX, is that the CBOE rule
appears to required [sic] payment via IBS as mandatory for all its
members, while the NSX's proposed rule would allow alternative payment
methods if agreed to with the Exchange.
---------------------------------------------------------------------------
\5\ CBOE Rule 3.23.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6 of the Act,\6\ and the rules and regulations thereunder and,
in particular, the requirements of Section 6(b) of the Act.\7\
Specifically, the Exchange believes the proposed rule change furthers
the objective of Section 6(b)(5) of the Act \8\ because allowing ETP
Holders to pay their Exchange and vendor invoices via IBS is designed
to foster cooperation and coordination with persons engaged in
regulating, clearing, settling, and processing information with respect
to transactions in securities, and to remove impediments to and
perfects [sic] the mechanism of a free and open market and a national
market system. Payment of invoices via the Exchange's IBS would
increase efficiency and reduce financial risk by allowing the Exchange
to draft against the Clearing Member's account the amount due, rather
than the ETP Holder paying their invoices via check or bank transfer
each month. Lastly, the Exchange notes that the proposed rule change is
not unfairly-discriminatory because payment of invoices via IBS is
voluntary and each ETP Holder is able to continue to remit payment of
their invoices by check or bank transfer.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(5).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes the proposed definition of ``Clearing
Member'' under Exchange Rule 1.5 is consistent with Section 6 of the
Act,\9\ and the rules and regulations thereunder and, in particular,
the requirements of Section 6(b) of the Act.\10\ Specifically, the
Exchange believes the proposed definition furthers the objective of
Section 6(b)(5) of the Act \11\ because the proposed definition of
``Clearing Member'' is designed to describe ETP Holders who may also be
members of a Qualified Clearing Agency, thereby adding clarity to the
IBS under proposed Exchange Rule 16.4. Therefore, the Exchange believes
the proposed definition of ``Clearing Member'' fosters cooperation and
coordination with persons engaged in regulating, clearing, settling,
and processing information with respect to transactions in securities,
and removes impediments to and perfect [sic] the mechanism of a free
and open market and a national market system.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(5).
\11\ 15 U.S.C. 78f(b)(5).
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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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change
will provide ETP Holders the choice of paying their invoices through
IBS rather than via check or bank transfer, which is designed to
increase efficiency and reduce financial risk. The proposed definition
of ``Clearing Member'' under Exchange Rule 1.5 is designed to add
clarity to the integrated billing solution under proposed Exchange Rule
16.4 and does not propose to add a new category of Exchange members or
alter current ETP Holder obligations. Therefore, the Exchange believes
the proposed rule change does not impose a burden on competition
because ETP Holders are free to choose the payment method they wish.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments on the proposed rule change were neither solicited
nor 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) \12\ of the Act and
Rule 19b-4(f)(6) \13\ thereunder.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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 the filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) of the Act \14\
normally does not become operative prior to 30 days after the date of
the filing. However, pursuant to Rule 19b-4(f)(6)(iii) of the Act,\15\
the Commission may designate a shorter time if such action is
consistent with the protection of investors and the public interest.
The Exchange has asked the Commission to waive the 30-day operative
delay so that ETP Holders may use the IBS system for invoicing and
payment processing immediately. The Commission believes
[[Page 5238]]
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest as it will facilitate a
more efficient method for ETP Holders to pay invoices to the Exchange
and for the Exchange to collect undisputed payments owed by ETP Holders
to the Exchange and to vendors.\16\ Therefore, the Commission hereby
waives the 30-day operative delay and designates the proposed rule
change to be operative upon filing with the Commission.
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
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 change 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NSX-2013-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NSX-2013-01. 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 (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 Web site viewing and
printing in the Commission's Public Reference Room on official business
days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for inspection and copying at the
principal offices of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NSX-2013-01, and should be submitted on or before
February 14, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01376 Filed 1-23-13; 8:45 am]
BILLING CODE 8011-01-P
