Order Granting a Temporary Exemption Pursuant to Section 36(a)(1) of the Securities Exchange Act of 1934 From the Filing Deadline Specified in Rule 613(a)(1) of the Exchange Act, 75669-75670 [2013-29620]

Download as PDF Federal Register / Vol. 78, No. 239 / Thursday, December 12, 2013 / Notices 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 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.41 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–29609 Filed 12–11–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–71018] Paper Comments December 6, 2013. • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. maindgalligan on DSK5TPTVN1PROD with NOTICES • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR–Phlx–2013–115 on the subject line. Rule 613(a)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 requires the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) and the eighteen registered national securities exchanges (collectively, the ‘‘SROs’’) to ‘‘jointly file on or before 270 days from the date of publication of the Adopting Release [for Rule 613 of the Exchange Act 2] in the Federal Register a national market system plan to govern the creation, implementation, and maintenance of a consolidated audit trail and central repository as required by [the rule].’’ The Adopting Release for Rule 613 was published in the Federal Register on August 1, 2012,3 thus requiring the national market system plan (‘‘NMS plan’’) to be filed on or before April 28, 2013.4 On March 7, 2013, the Securities and Exchange Commission (‘‘Commission’’) granted a request from the SROs for a temporary exemption from this deadline until December 6, 2013.5 On November 8, 2013, the SROs filed an application, pursuant to Rule 0–12 under the Exchange Act,6 to request the Commission to grant a temporary exemption under Section 36 of the Exchange Act,7 from the deadline specified in Rule 613(a)(1) of the Exchange Act 8 for submitting the NMS All submissions should refer to File Number SR–Phlx–2013–115. 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 (http://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 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–Phlx– 2013–115, and should be submitted on or before January 2, 2014. 41 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:45 Dec 11, 2013 Jkt 232001 Order Granting a Temporary Exemption Pursuant to Section 36(a)(1) of the Securities Exchange Act of 1934 From the Filing Deadline Specified in Rule 613(a)(1) of the Exchange Act 1 17 CFR 242.613(a)(1). CFR 242.613. 3 Securities Exchange Act Release No. 67457 (July 18, 2012), 77 FR 45722 (August 1, 2012) (‘‘Adopting Release’’). 4 April 28, 2013, was a Sunday. Therefore, in accordance with Rule 160(a) of the Commission Rules of Practice, the deadline for filing the NMS plan was Monday, April 29, 2013. 5 See Securities Exchange Act Release No. 69060, 78 FR 15771 (March 12, 2013); and letter from Robert L.D. Colby, Executive Vice President and Chief Legal Officer, FINRA, to Elizabeth M. Murphy, Secretary, Commission, dated February 7, 2013 (‘‘February 7, 2013 Letter’’). 6 17 CFR 240.0–12. 7 15 U.S.C. 78mm. 8 17 CFR 242.613(a)(1). 2 17 PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 75669 plan to the Commission until September 30, 2014.9 In their Current Request Letter, the SROs explain that on February 26, 2013, they published a Request for Proposal (‘‘RFP’’) to solicit bids from which they will select an entity to serve as the consolidated audit trail (‘‘CAT’’) plan processor to build, operate, administer, and maintain the CAT.10 Thirty-one firms, including four distinct SRO groups, initially indicated that they planned to submit bids on the RFP.11 The SROs further state in the Current Request Letter that following the publication of the RFP, potential bidders and members of the public, including broker-dealer members of the SROs, expressed interest in the process by which the SROs will review and evaluate bids, narrow down the list of bids, use those bids in formulating the CAT NMS Plan, and, ultimately, select the CAT plan processor. The SROs state in the Current Request Letter that they solicited views from potential bidders regarding whether they preferred to know the process the SROs will follow to review, evaluate, and select a bidder in advance of submitting their bids and whether that process could influence either a decision regarding whether to submit a bid or the contents of a bid. The SROs represent that many potential bidders indicated that knowing the process by which the SROs will choose the plan processor is important to finalizing their bids. According to the SROs, the potential bidders also generally expressed the view that providing bidders with four weeks between approval of a selection process and the submission deadline for the bids would be an appropriate timeframe to allow bidders to make any changes to their bids in light of the approved evaluation and selection process. Based on this 9 See Letter from Robert L.D. Colby, Executive Vice President and Chief Legal Officer, FINRA, to Elizabeth M. Murphy, Secretary, Commission, dated November 7, 2013 (the ‘‘Current Request Letter’’). 10 In the February 7, 2013 Letter, the SROs stated that an RFP process was necessary prior to filing an NMS plan pursuant to Rule 613 (‘‘CAT NMS Plan’’). The SROs explained their belief that such a process would ensure that potential alternative solutions for creating the consolidated audit trail could be presented to the SROs for their consideration, and would provide the SROs with information necessary to prepare a detailed cost/benefit analysis as required by Rule 613. See February 7, 2013 Letter, supra note 5. 11 According to the SROs, since that time, seven firms have formally notified the SROs of their intent to withdraw as primary bidders. See Current Request Letter, supra note 9. Of the seven firms that formally notified the SROs of their intent to withdraw as primary bidders, two are SRO groups. See http://catnmsplan.com/web/groups/catnms/@ catnms/documents/appsupportdocs/p217583.pdf (last visited November 19, 2013). E:\FR\FM\12DEN1.SGM 12DEN1 maindgalligan on DSK5TPTVN1PROD with NOTICES 75670 Federal Register / Vol. 78, No. 239 / Thursday, December 12, 2013 / Notices feedback, the SROs filed with the Commission an NMS plan to govern the SROs’ process for the selection of a CAT plan processor, and for mitigating conflicts of interest that might arise in the process (the ‘‘Selection NMS Plan’’).12 In the Current Request Letter, the SROs state that a temporary exemption is necessary and appropriate regardless of whether the Commission approves the Selection NMS Plan. Specifically, the SROs note that if the Selection NMS Plan is approved, they believe it will take ‘‘approximately seven months from the receipt of the bids to review and evaluate the bids, perform the in-depth and thorough analysis . . . required by Rule 613, and draft the CAT NMS plan for submission to the SEC.’’ 13 The SROs further state that ‘‘[b]ecause the content of the bids is critical to the analysis needed to draft the CAT NMS Plan, the SROs estimate that seven months following the receipt of bids is necessary to ensure that they can fully address the considerations enumerated in Rule 613, including a discussion of the costs and benefits of not only the proposed solution(s) but also of the alternative solutions considered but not proposed as the solution in the CAT NMS Plan, so that the Commission and the public have sufficiently detailed information to carefully consider all aspects of the CAT NMS Plan ultimately submitted by the SROs.’’ 14 If the Selection NMS Plan is not approved, the SROs explain that they will need the temporary exemption to allow bidders additional time to finalize their bids, and allow the SROs additional time to develop an alternative process for evaluating the bids, developing the CAT NMS Plan, and selecting the CAT plan processor.15 Section 36 of the Exchange Act 16 authorizes the Commission, by rule, regulation, or order, to exempt, either conditionally or unconditionally, any person, security, or transaction, or any class or classes of persons, securities, or transactions, from any provision or provisions of the Exchange Act or any rule or regulation thereunder, to the extent that such exemption is necessary or appropriate in the public interest, and is consistent with the protection of investors. The Commission finds that it is appropriate in the public interest, and is 12 The Commission published the Selection NMS Plan for notice and comment. See Securities Exchange Act Release No. 70892 (November 15, 2013), 78 FR 66910 (November 21, 2013). 13 See Current Request Letter, supra note 9. 14 Id. 15 Id. 16 15 U.S.C. 78mm. VerDate Mar<15>2010 16:45 Dec 11, 2013 Jkt 232001 consistent with the protection of investors, to grant the SROs a temporary exemption from the deadline for filing the CAT NMS Plan contained in Rule 613(a)(1) until September 30, 2014. The Commission believes that granting the exemption is appropriate in light of the need for the SROs to establish a deadline for finalizing and submitting bids in response to the RFP; to evaluate the bids submitted and select the CAT Plan Processor under the Selection NMS Plan, if the Selection NMS Plan is approved by the Commission, or an alternative process if the Selection NMS Plan is not approved by the Commission; and to draft the CAT NMS Plan. Accordingly, it is hereby ordered, pursuant to Section 36 of the Exchange Act,17 that the SROs are temporarily exempted from the deadline for submitting the NMS plan to govern the creation, implementation, and maintenance of a consolidated audit trail and central repository contained in Rule 613(a)(1) 18 until September 30, 2014. By the Commission. Elizabeth M. Murphy, Secretary. [FR Doc. 2013–29620 Filed 12–11–13; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: Advanced Qualification Program (AQP) Federal Aviation Administration (FAA), DOT. ACTION: Notice and request for comments. AGENCY: 17 15 18 17 PO 00000 U.S.C. 78mm. CFR 242.613(a)(1). Frm 00128 Fmt 4703 Sfmt 4703 OMB Control Number: 2120–0701. Title: Advanced Qualification Program (AQP). Form Numbers: There are no FAA forms associated with this collection. Type of Review: Renewal of an information collection. Background: Under Special Federal Aviation Regulation No. 58, Advanced Qualification Program (AQP), the FAA provides certificated air carriers, as well as training centers they employ, with a regulatory alternative for training, checking, qualifying, and certifying aircrew personnel subject to the requirements of 14 CFR parts 121 and 135. The main goal of the AQP is to improve flight crew performance by providing alternative means of complying with certain rules that may inhibit innovative use of modern technology for flight crewmember training. AQP is continuously validated through the collection and analysis of trainee performance. Data collection and analysis processes ensure that the certificate holder provides performance information on its crewmembers, flight instructors, and evaluators that will enable the certificate holder and the FAA to determine whether the form and content of training and evaluation activities are satisfactorily accomplishing the overall objectives of the curriculum. Respondents: 18 respondents with approved Advanced Qualification Programs. Frequency: Data is collected monthly. Estimated Average Burden per Response: 2 hours. Estimated Total Annual Burden: 432 hours. Send comments to the FAA at the following address: Ms. Kathy DePaepe, Room 126B, Federal Aviation Administration, AES–200, 6500 S. MacArthur Blvd., Oklahoma City, OK 73169. Public Comments Invited: You are asked to comment on any aspect of this information collection, including (a) Whether the proposed collection of information is necessary for FAA’s performance; (b) the accuracy of the estimated burden; (c) ways for FAA to enhance the quality, utility and clarity of the information collection; and (d) ways that the burden could be minimized without reducing the quality of the collected information. The agency will summarize and/or include your comments in the request for OMB’s clearance of this information collection. ADDRESSES: In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. The Advanced Qualification Program uses data driven quality control processes for validating and maintaining the effectiveness of air carrier training program curriculum content. DATES: Written comments should be submitted by February 10, 2014. FOR FURTHER INFORMATION CONTACT: Kathy DePaepe at (405) 954–9362, or by email at: Kathy.DePaepe@faa.gov. SUMMARY: SUPPLEMENTARY INFORMATION: E:\FR\FM\12DEN1.SGM 12DEN1

Agencies

[Federal Register Volume 78, Number 239 (Thursday, December 12, 2013)]
[Notices]
[Pages 75669-75670]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-29620]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71018]


Order Granting a Temporary Exemption Pursuant to Section 36(a)(1) 
of the Securities Exchange Act of 1934 From the Filing Deadline 
Specified in Rule 613(a)(1) of the Exchange Act

December 6, 2013.
    Rule 613(a)(1) of the Securities Exchange Act of 1934 (``Exchange 
Act'') \1\ requires the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') and the eighteen registered national securities exchanges 
(collectively, the ``SROs'') to ``jointly file on or before 270 days 
from the date of publication of the Adopting Release [for Rule 613 of 
the Exchange Act \2\] in the Federal Register a national market system 
plan to govern the creation, implementation, and maintenance of a 
consolidated audit trail and central repository as required by [the 
rule].'' The Adopting Release for Rule 613 was published in the Federal 
Register on August 1, 2012,\3\ thus requiring the national market 
system plan (``NMS plan'') to be filed on or before April 28, 2013.\4\ 
On March 7, 2013, the Securities and Exchange Commission 
(``Commission'') granted a request from the SROs for a temporary 
exemption from this deadline until December 6, 2013.\5\ On November 8, 
2013, the SROs filed an application, pursuant to Rule 0-12 under the 
Exchange Act,\6\ to request the Commission to grant a temporary 
exemption under Section 36 of the Exchange Act,\7\ from the deadline 
specified in Rule 613(a)(1) of the Exchange Act \8\ for submitting the 
NMS plan to the Commission until September 30, 2014.\9\
---------------------------------------------------------------------------

    \1\ 17 CFR 242.613(a)(1).
    \2\ 17 CFR 242.613.
    \3\ Securities Exchange Act Release No. 67457 (July 18, 2012), 
77 FR 45722 (August 1, 2012) (``Adopting Release'').
    \4\ April 28, 2013, was a Sunday. Therefore, in accordance with 
Rule 160(a) of the Commission Rules of Practice, the deadline for 
filing the NMS plan was Monday, April 29, 2013.
    \5\ See Securities Exchange Act Release No. 69060, 78 FR 15771 
(March 12, 2013); and letter from Robert L.D. Colby, Executive Vice 
President and Chief Legal Officer, FINRA, to Elizabeth M. Murphy, 
Secretary, Commission, dated February 7, 2013 (``February 7, 2013 
Letter'').
    \6\ 17 CFR 240.0-12.
    \7\ 15 U.S.C. 78mm.
    \8\ 17 CFR 242.613(a)(1).
    \9\ See Letter from Robert L.D. Colby, Executive Vice President 
and Chief Legal Officer, FINRA, to Elizabeth M. Murphy, Secretary, 
Commission, dated November 7, 2013 (the ``Current Request Letter'').
---------------------------------------------------------------------------

    In their Current Request Letter, the SROs explain that on February 
26, 2013, they published a Request for Proposal (``RFP'') to solicit 
bids from which they will select an entity to serve as the consolidated 
audit trail (``CAT'') plan processor to build, operate, administer, and 
maintain the CAT.\10\ Thirty-one firms, including four distinct SRO 
groups, initially indicated that they planned to submit bids on the 
RFP.\11\ The SROs further state in the Current Request Letter that 
following the publication of the RFP, potential bidders and members of 
the public, including broker-dealer members of the SROs, expressed 
interest in the process by which the SROs will review and evaluate 
bids, narrow down the list of bids, use those bids in formulating the 
CAT NMS Plan, and, ultimately, select the CAT plan processor.
---------------------------------------------------------------------------

    \10\ In the February 7, 2013 Letter, the SROs stated that an RFP 
process was necessary prior to filing an NMS plan pursuant to Rule 
613 (``CAT NMS Plan''). The SROs explained their belief that such a 
process would ensure that potential alternative solutions for 
creating the consolidated audit trail could be presented to the SROs 
for their consideration, and would provide the SROs with information 
necessary to prepare a detailed cost/benefit analysis as required by 
Rule 613. See February 7, 2013 Letter, supra note 5.
    \11\ According to the SROs, since that time, seven firms have 
formally notified the SROs of their intent to withdraw as primary 
bidders. See Current Request Letter, supra note 9. Of the seven 
firms that formally notified the SROs of their intent to withdraw as 
primary bidders, two are SRO groups. See http://catnmsplan.com/web/groups/catnms/@catnms/documents/appsupportdocs/p217583.pdf (last 
visited November 19, 2013).
---------------------------------------------------------------------------

    The SROs state in the Current Request Letter that they solicited 
views from potential bidders regarding whether they preferred to know 
the process the SROs will follow to review, evaluate, and select a 
bidder in advance of submitting their bids and whether that process 
could influence either a decision regarding whether to submit a bid or 
the contents of a bid. The SROs represent that many potential bidders 
indicated that knowing the process by which the SROs will choose the 
plan processor is important to finalizing their bids. According to the 
SROs, the potential bidders also generally expressed the view that 
providing bidders with four weeks between approval of a selection 
process and the submission deadline for the bids would be an 
appropriate timeframe to allow bidders to make any changes to their 
bids in light of the approved evaluation and selection process. Based 
on this

[[Page 75670]]

feedback, the SROs filed with the Commission an NMS plan to govern the 
SROs' process for the selection of a CAT plan processor, and for 
mitigating conflicts of interest that might arise in the process (the 
``Selection NMS Plan'').\12\
---------------------------------------------------------------------------

    \12\ The Commission published the Selection NMS Plan for notice 
and comment. See Securities Exchange Act Release No. 70892 (November 
15, 2013), 78 FR 66910 (November 21, 2013).
---------------------------------------------------------------------------

    In the Current Request Letter, the SROs state that a temporary 
exemption is necessary and appropriate regardless of whether the 
Commission approves the Selection NMS Plan. Specifically, the SROs note 
that if the Selection NMS Plan is approved, they believe it will take 
``approximately seven months from the receipt of the bids to review and 
evaluate the bids, perform the in-depth and thorough analysis . . . 
required by Rule 613, and draft the CAT NMS plan for submission to the 
SEC.'' \13\ The SROs further state that ``[b]ecause the content of the 
bids is critical to the analysis needed to draft the CAT NMS Plan, the 
SROs estimate that seven months following the receipt of bids is 
necessary to ensure that they can fully address the considerations 
enumerated in Rule 613, including a discussion of the costs and 
benefits of not only the proposed solution(s) but also of the 
alternative solutions considered but not proposed as the solution in 
the CAT NMS Plan, so that the Commission and the public have 
sufficiently detailed information to carefully consider all aspects of 
the CAT NMS Plan ultimately submitted by the SROs.'' \14\ If the 
Selection NMS Plan is not approved, the SROs explain that they will 
need the temporary exemption to allow bidders additional time to 
finalize their bids, and allow the SROs additional time to develop an 
alternative process for evaluating the bids, developing the CAT NMS 
Plan, and selecting the CAT plan processor.\15\
---------------------------------------------------------------------------

    \13\ See Current Request Letter, supra note 9.
    \14\ Id.
    \15\ Id.
---------------------------------------------------------------------------

    Section 36 of the Exchange Act \16\ authorizes the Commission, by 
rule, regulation, or order, to exempt, either conditionally or 
unconditionally, any person, security, or transaction, or any class or 
classes of persons, securities, or transactions, from any provision or 
provisions of the Exchange Act or any rule or regulation thereunder, to 
the extent that such exemption is necessary or appropriate in the 
public interest, and is consistent with the protection of investors.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78mm.
---------------------------------------------------------------------------

    The Commission finds that it is appropriate in the public interest, 
and is consistent with the protection of investors, to grant the SROs a 
temporary exemption from the deadline for filing the CAT NMS Plan 
contained in Rule 613(a)(1) until September 30, 2014. The Commission 
believes that granting the exemption is appropriate in light of the 
need for the SROs to establish a deadline for finalizing and submitting 
bids in response to the RFP; to evaluate the bids submitted and select 
the CAT Plan Processor under the Selection NMS Plan, if the Selection 
NMS Plan is approved by the Commission, or an alternative process if 
the Selection NMS Plan is not approved by the Commission; and to draft 
the CAT NMS Plan.
    Accordingly, it is hereby ordered, pursuant to Section 36 of the 
Exchange Act,\17\ that the SROs are temporarily exempted from the 
deadline for submitting the NMS plan to govern the creation, 
implementation, and maintenance of a consolidated audit trail and 
central repository contained in Rule 613(a)(1) \18\ until September 30, 
2014.
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    \17\ 15 U.S.C. 78mm.
    \18\ 17 CFR 242.613(a)(1).

    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-29620 Filed 12-11-13; 8:45 am]
BILLING CODE 8011-01-P