Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change Relating to Wash Sale Transactions and FINRA Rule 5210 (Publication of Transactions and Quotations), 62784-62785 [2013-24569]
Download as PDF
62784
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
Exchange believes that the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) and other national securities
exchanges are also filing similar
proposals, and thus, that the proposal
will help to ensure consistent rules
across market centers.
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 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 if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6)(iii)
thereunder.12
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the pilot program to continue
uninterrupted, thereby avoiding
investor confusion that could result
from a temporary interruption in the
pilot program. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.13
At any time within 60 days of the
filing of the 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
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). As required under
Rule 19b-4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
13 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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investors, or otherwise in furtherance of
the purposes of the Act.
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 No. SR–
NSX–2013–19 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
No. SR–NSX–2013–19. 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
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, 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 principal
office 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 No. SR–NSX–2013–
19 and should be submitted on or before
November 12, 2013.
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24547 Filed 10–21–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70613; File No. SR–FINRA–
2013–036]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Designation
of a Longer Period for Commission
Action on a Proposed Rule Change
Relating to Wash Sale Transactions
and FINRA Rule 5210 (Publication of
Transactions and Quotations)
October 4, 2013.
I. Introduction
On August 15, 2013, Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to amend FINRA
Rule 5210. The proposed rule change
was published for comment in the
Federal Register on September 4, 2013.3
The Commission received five
comments on the proposal.4
Section 19(b)(2) of the Act 5 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 70276
(August 28, 2013), 78 FR 54502 (‘‘Notice’’).
4 See letter from Anonymous to Elizabeth M.
Murphy, Secretary, Commission, dated September
9, 2013; letter from William A. Jacobson, Clinical
Professor of Law, and Director, Cornell Securities
Law Clinic, and Jimin Lee, Cornell University Law
School, to Elizabeth M. Murphy, Secretary,
Commission, dated September 25, 2013; letter from
Stuart J. Kaswell, Executive Vice President,
Managing Director and General Counsel, Managed
Funds Association, to Elizabeth M. Murphy,
Secretary, Commission, dated September 25, 2013;
letter from Manisha Kimmel, Executive Director,
Financial Industry Forum, to Elizabeth M. Murphy,
Secretary, Commission, dated September 25, 2013;
and letter from Theodore R. Lazo, Managing
Director and Associate General Counsel, SIFMA, to
Elizabeth M. Murphy, Secretary, Commission, dated
October 4, 2013.
5 15 U.S.C. 78s(b)(2).
1 15
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Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day for this filing
is October 19, 2013.
The Commission is hereby extending
the 45-day period for Commission
action on the proposed rule change. The
Commission has determined that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change. In particular, the
extension of time will ensure that the
Commission has sufficient time to
consider and take action on FINRA’s
proposal in light of, among other things,
the comments received on the proposal.
Accordingly, pursuant to Section
19(b)(2)(A)(ii)(I) of the Act 6 and for the
reasons stated above, the Commission
designates December 3, 2013, as the date
by which the Commission should either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
File No. SR–FINRA–2013–036.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24569 Filed 10–21–13; 8:45 am]
BILLING CODE 8011–01–P
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes changes to
mitigate market maker risk by requiring
market makers to enter values in the
Exchange-provided risk parameters.
The text of the proposed rule change
is available on the Exchange’s Internet
Web site at https://www.ise.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
self-regulatory organization 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, Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[Release No. 34–70644; File No. SR–Topaz–
2013–06]
Self-Regulatory Organizations; Topaz
Exchange, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to Market Maker
Risk Parameters
sroberts on DSK5SPTVN1PROD with FRONT MATTER
October 9, 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
September 30, 2013, the Topaz
Exchange, LLC (d/b/a ISE Gemini) (the
‘‘Exchange’’ or ‘‘Topaz’’) 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
6 15
U.S.C. 78s(b)(2)(A)(ii)(I).
CFR 200.30–3(a)(31).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
7 17
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Pursuant to Topaz Rule 804, the
Exchange currently provides
functionality that will automatically
remove a market maker’s quotes in all
series of an options class when certain
parameter settings are triggered.
Specifically, there are four parameters
that can be set by market makers on a
class-by-class basis. These parameters
are available for market maker quotes in
single options series. Market makers
establish a time frame during which the
system calculates: (1) the number of
contracts executed by the market maker
in an options class; (2) the percentage of
the total size of the market maker’s
quotes in the class that has been
executed; (3) the absolute value of the
net between contracts bought and
contracts sold in an options class; and
(4) the absolute value of the net between
(a) calls purchased plus puts sold, and
(b) calls sold plus puts purchased. The
market maker establishes limits for each
of these four parameters, and when the
limits are exceeded within the
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Sfmt 4703
62785
prescribed time frame, the market
makers quotes are removed.3
The purpose of this functionality is to
allow market makers to provide
liquidity across potentially hundreds of
options series without being at risk of
executing the full cumulative size of all
such quotes before being given adequate
opportunity to adjust their quotes. For
example, if a market maker can enter
quotes with a size of 20 contracts in 150
series of an options class, its total
potential exposure is 3000 contracts in
the options class. To mitigate the risk of
executing all 3000 contracts without
evaluating its positions, the market
maker risk functionality will
automatically remove its quotes in all
series of the options class after it has
executed a specified number of
contracts (e.g., 100) in series of that
options class during a specified time
period (e.g., 5 seconds).
To assure that all quotations are firm
for their full size, the parameter
calculations occur after an execution
against a market maker’s quote takes
place. For example, if a market maker
has set a parameter of 100 contracts
during a 5 second interval for an options
class, and has executed a total of 95
contracts in the options class within the
previous 3 seconds, a quote in a series
of that class with a size of 20 contracts
continues to be firm for all 20 contracts.
In this example, an incoming order
could execute all 20 contracts of the
quote, and following the execution, the
total size parameter would add 20
contracts to the running total of 95.
Since the total size executed within the
5 second time frame exceeds the 100
contracts established by the market
maker for the options class, all of the
market maker’s quotes in the options
class would be removed. The market
maker would then enter new quotes in
the class.
Use of these risk management tools is
voluntary under the rules. Similarly,
from a technical perspective, market
makers currently do not need to enter
3 The Exchange is proposing certain nonsubstantive changes to the text of Rule 804 for
clarity. The changes shorten the first sentence in
Rule 804 by deleting ‘‘if the market maker trades,
in the aggregate across all series of an options class
during a specified time period’’ and to delete
‘‘(established by the market maker), within a time
frame specified by the market maker’’ as the text
might be confusing in its current form and is
redundant with other text within the Rule. To
assure clarity, the Exchange also proposes to specify
that the first parameter is a number of ‘‘total’’
contracts ‘‘in the class,’’ and to specify that the
fourth parameter is a net value based on puts and
calls purchased and sold ‘‘in the class.’’ Finally, the
Exchange proposes to use a uniform construction of
‘‘the specified . . .’’ for each of the four parameters.
The Exchange is not proposing to alter the
operation of the functionality, other than to make
use of the parameters mandatory.
E:\FR\FM\22OCN1.SGM
22OCN1
Agencies
[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62784-62785]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24569]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70613; File No. SR-FINRA-2013-036]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Designation of a Longer Period for
Commission Action on a Proposed Rule Change Relating to Wash Sale
Transactions and FINRA Rule 5210 (Publication of Transactions and
Quotations)
October 4, 2013.
I. Introduction
On August 15, 2013, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend FINRA Rule 5210. The proposed rule change
was published for comment in the Federal Register on September 4,
2013.\3\ The Commission received five comments on the proposal.\4\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 70276 (August 28,
2013), 78 FR 54502 (``Notice'').
\4\ See letter from Anonymous to Elizabeth M. Murphy, Secretary,
Commission, dated September 9, 2013; letter from William A.
Jacobson, Clinical Professor of Law, and Director, Cornell
Securities Law Clinic, and Jimin Lee, Cornell University Law School,
to Elizabeth M. Murphy, Secretary, Commission, dated September 25,
2013; letter from Stuart J. Kaswell, Executive Vice President,
Managing Director and General Counsel, Managed Funds Association, to
Elizabeth M. Murphy, Secretary, Commission, dated September 25,
2013; letter from Manisha Kimmel, Executive Director, Financial
Industry Forum, to Elizabeth M. Murphy, Secretary, Commission, dated
September 25, 2013; and letter from Theodore R. Lazo, Managing
Director and Associate General Counsel, SIFMA, to Elizabeth M.
Murphy, Secretary, Commission, dated October 4, 2013.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \5\ provides that within 45 days of the
publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or as to which the self-regulatory organization
consents,
[[Page 62785]]
the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
45th day for this filing is October 19, 2013.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The Commission is hereby extending the 45-day period for Commission
action on the proposed rule change. The Commission has determined that
it is appropriate to designate a longer period within which to take
action on the proposed rule change. In particular, the extension of
time will ensure that the Commission has sufficient time to consider
and take action on FINRA's proposal in light of, among other things,
the comments received on the proposal.
Accordingly, pursuant to Section 19(b)(2)(A)(ii)(I) of the Act \6\
and for the reasons stated above, the Commission designates December 3,
2013, as the date by which the Commission should either approve or
disapprove, or institute proceedings to determine whether to
disapprove, the proposed rule change File No. SR-FINRA-2013-036.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(2)(A)(ii)(I).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24569 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P