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]
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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 (https://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 (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
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 https://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]
-----------------------------------------------------------------------
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 https://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.
---------------------------------------------------------------------------
\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