Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 4.3, Record of Written Complaints, 19097-19099 [2015-08110]
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Federal Register / Vol. 80, No. 68 / Thursday, April 9, 2015 / Notices
the proposed rule change, or institute
proceedings to determine whether to
disapprove the proposed rule change.6
On February 26, 2014, the Exchange
withdrew the proposal SR–NYSE–2014–
59.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Brent J. Fields,
Secretary.
[FR Doc. 2015–08107 Filed 4–8–15; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
In the Matter of China Education
International, Inc., Delta Entertainment
Group Inc., and Gulf United Energy,
Inc.; Order of Suspension of Trading
Rmajette on DSK2VPTVN1PROD with NOTICES
April 7, 2015.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of China
Education International, Inc. because it
has not filed any periodic reports since
the period ended September 30, 2012.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Delta
Entertainment Group Inc. because it has
not filed any periodic reports since the
period ended September 30, 2012.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Gulf United
Energy, Inc. because it has not filed any
periodic reports since the period ended
September 30, 2012.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies. Therefore, it is ordered,
pursuant to Section 12(k) of the
Securities Exchange Act of 1934, that
trading in the securities of the abovelisted companies is suspended for the
period from 9:30 a.m. EDT on April 7,
2015, through 11:59 p.m. EDT on April
20, 2015.
6 See Securities Exchange Act Release No. 74051,
80 FR 2983 (Jan. 21, 2015). The Commission
designated March 4, 2015, as the date by which it
should approve, disapprove, or institute
proceedings to determine whether to disapprove the
proposed rule change.
7 17 CFR 200.30–3(a)(12).
Jkt 235001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74645; File No. SR–BYX–
2015–20]
April 3, 2015.
[File No. 500–1]
15:13 Apr 08, 2015
[FR Doc. 2015–08259 Filed 4–7–15; 4:15 pm]
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 4.3,
Record of Written Complaints
BILLING CODE 8011–01–P
VerDate Sep<11>2014
By the Commission.
Jill M. Peterson,
Assistant Secretary.
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 March 26,
2015, BATS Y-Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) 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 Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit 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 to amend
Rule 4.3, Record of Written Complaints.
The text of the proposed rule change is
below. Proposed new language is in
italics; proposed deletions are in
brackets.
*
*
*
*
*
Rule 4.3. Record of Written Complaints
(a) Each Member shall keep and
preserve for a period of not less than
[five]four years a file of all written
complaints of customers and action
taken by the Member in respect thereof,
if any. Further, for the first two years of
the [five]four-year period, the Member
shall keep such file in a place readily
accessible to examination or spot
checks.
(b) (No change).
*
*
*
*
*
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
2 17
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19097
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 II.A., II.B., and II.C.
below, of the most significant aspects of
such statements.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange filed a proposal to
amend Rule 4.3, Record of Written
Complaints, to conform with the rules of
the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) for purposes
of an agreement between the Exchange
and FINRA, as well as to conform
Exchange Rule 4.3 with the rules of the
EDGX Exchange, Inc. (‘‘EDGX’’) and the
EDGA Exchange, Inc. (‘‘EDGA’’).5
Pursuant to Rule 17d–2 under the
Act,6 the Exchange and FINRA entered
into an agreement to allocate regulatory
responsibility for common rules (the
‘‘17d–2 Agreement’’). The 17d–2
Agreement covers common members of
the Exchange and FINRA and allocates
to FINRA regulatory responsibility, with
respect to common members, for the
following: (i) examination of common
members of the Exchange and FINRA
for compliance with federal securities
laws, rules and regulations and rules of
the Exchange that the Exchange has
certified as identical or substantially
similar to FINRA rules; (ii) investigation
of common members of the Exchange
and FINRA for violations of federal
securities laws, rules or regulations, or
Exchange rules that the Exchange has
certified as identical or substantially
identical to a FINRA rule; and (iii)
enforcement of compliance by common
5 See EDGA and EDGX Rules 4.3. See also
Securities Exchange Act Release Nos. 70715
(October 15, 2013), 78 FR 64041 (October 18, 2013)
(SR–EDGA–2013–31) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
to Amend EDGA Rule 4.3, Record of Written
Complains, to Conform with Financial Industry
Regulatory Authority, Inc. Rule 4513); and 70714
(October 15, 2013), 78 FR 64038 (October 18, 2013)
(SR–EDGX–2013–39) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
to Amend EDGX Rule 4.3, Record of Written
Complains, to Conform with Financial Industry
Regulatory Authority, Inc. Rule 4513).
6 17 CFR 240.17d–2.
E:\FR\FM\09APN1.SGM
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Federal Register / Vol. 80, No. 68 / Thursday, April 9, 2015 / Notices
members of the Exchange and FINRA
with the federal securities laws, rules
and regulations, and the rules of the
Exchange that the Exchange has
certified as identical or substantially
similar to FINRA rules.7
The 17d–2 Agreement included a
certification by the Exchange that states
that the requirements contained in
certain Exchange rules are identical to,
or substantially similar to, certain
FINRA rules that have been identified as
comparable. To conform to comparable
FINRA rules for purposes of the 17d–2
Agreement, the Exchange proposes to
amend Rule 4.3, Record of Written
Complaints, to align with FINRA Rule
4513.8
Exchange Rule 4.3 currently requires
that members of the Exchange
(‘‘Members’’) keep and preserve written
customer complaints 9 for a period of
not less than five years, the first two of
which must be in a readily accessible
place. To take into account FINRA’s
four-year routine examination cycle for
certain members, FINRA Rule 4513
requires that members preserve the
customer complaint records for a period
of at least four years. Under the 17d–2
Agreement, FINRA examines common
members of the Exchange and FINRA
for compliance with Exchange Rule 4.3.
However, because of the differing
retention periods between Exchange
Rule 4.3 and FINRA Rule 4513, the 17d–
2 Agreement specifically states that
FINRA has the regulatory
responsibilities for the first four years of
Exchange Rule 4.3’s five year record
retention requirement.
The Exchange, therefore, proposes to
decrease the record retention
requirements under Rule 4.3 from five
to four years. The Exchange believes
that amending the record retention
requirements for customer complaints to
align with FINRA Rule 4513 would help
to avoid confusion among Members that
are also members of FINRA, EDGA, or
EDGX. The Exchange further believes
that aligning the Exchange’s rules with
FINRA Rule 4513 would account for
FINRA’s four-year routine examination
Rmajette on DSK2VPTVN1PROD with NOTICES
7 See
Securities and Exchange Release No. 58375
(August 13, 2008), 75 FR 51295 (August 19, 2008)
(approving File No. 10–198).
8 See also Securities Exchange Act Release No.
63784 (January 27, 2011), 76 FR 5850 (February 2,
2011) (Order Approving Proposed Rule Change);
(File No. SR–FINRA–2010–052).
9 Exchange Rule 4.3(b) defines a ‘‘complaint’’ as
‘‘any written statement of a customer or any person
acting on behalf of a customer alleging a grievance
involving the activities of a Member or persons
under the control of the Member in connection with
(1) the solicitation or execution of any transaction
conducted or contemplated to be conducted
through the facilities of the Exchange or (2) the
disposition of securities or funds of that customer
which activities are related to such a transaction.’’
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15:13 Apr 08, 2015
Jkt 235001
cycle for certain members, which
FINRA conducts on the Exchange’s
behalf under the 17d–2 Agreement
ensuring consistent regulation of
Members that are also members of
FINRA.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 10 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 11 in particular, in that it is
designed to promote just and equitable
principles of trade, to remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, to protect investors and the
public interest, by eliminating
unnecessary confusion with respect to
the Exchange’s rules. The proposed rule
change should provide greater
harmonization between similar
Exchange, EDGA, EDGX and FINRA
rules, resulting in greater uniformity
and less burdensome and more efficient
regulatory compliance. The proposed
rule change should foster cooperation
and coordination with persons engaged
in facilitating transactions in securities
and should remove impediments to and
perfect the mechanism of a free and
open market and a national market
system consistent with the requirements
of Section 6(b)(5) of the Act.12
(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 not
necessary or appropriate in furtherance
of the purposes of the Act because the
proposed change would apply to all
Members equally.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were either
solicited or 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
10 See
15 U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 15 U.S.C. 78f(b)(5).
11 15
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become effective pursuant to Section
19(b)(3)(A)(ii) of the Act 13 and
subparagraph (f)(6) of Rule 19b–4
thereunder.14
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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
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 No. SR–
BYX–2015–20 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F
Street, NE., Washington, DC 20549–
1090.
All submissions should refer to File No.
SR–BYX–2015–20. 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
13 See
15 U.S.C. 78s(b)(3)(a)(ii).
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 filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
14 See
E:\FR\FM\09APN1.SGM
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Federal Register / Vol. 80, No. 68 / Thursday, April 9, 2015 / Notices
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 the
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–BYX–2015–20 and should be
submitted on or before April 30, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Brent J. Fields,
Secretary.
filed any periodic reports since the
period ended September 30, 2012.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of NewMarket
Technology, Inc. because it has not filed
any periodic reports since the period
ended June 30, 2011.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies. Therefore, it is ordered,
pursuant to Section 12(k) of the
Securities Exchange Act of 1934, that
trading in the securities of the abovelisted companies is suspended for the
period from 9:30 a.m. EDT on April 7,
2015, through 11:59 p.m. EDT on April
20, 2015.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–08110 Filed 4–8–15; 08:45 am]
BILLING CODE 8011–01–P
[FR Doc. 2015–08261 Filed 4–7–15; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74644; File No. SR–
NASDAQ–2015–031]
In the Matter of AuraSound, Inc., C2C
CrowdFunding, Inc., Convenience TV
Inc., Global Security Agency Inc., and
NewMarket Technology, Inc., Order of
Suspension of Trading
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Regarding Rule
4758
April 7, 2015.
Rmajette on DSK2VPTVN1PROD with NOTICES
[File No. 500–1]
April 3, 2015.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of AuraSound,
Inc. because it has not filed any periodic
reports since the period ended
December 31, 2011.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of C2C
CrowdFunding, Inc. because it has not
filed any periodic reports since the
period ended September 30, 2012.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of
Convenience TV Inc. because it has not
filed any periodic reports since the
period ended September 30, 2012.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Global
Security Agency Inc. because it has not
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March
30, 2015, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 4758 (Order Routing) to (a) explain
the treatment of a DOT or DOTI order
designated to participate in the closing
only; (b) explain the treatment of a LIST
order designated to participate in the
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
17 CFR 200.30–3(a)(12).
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15:13 Apr 08, 2015
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closing only; and (c) explain the
treatment of a LIST order in the afterhours market.4 The Exchange also
proposes to make technical changes to
further explain the language of the rule.
The text of the proposed rule change
is available at https://
nasdaq.cchwallstreet.com/, at the
Exchange’s principal office, 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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend subsection (a)(1)(A)
of Rule 4758 to: (a) Explain the
treatment of a DOT or DOTI order
designated to participate in the closing
only; (b) explain the treatment of a LIST
order designated to participate in the
closing only; and (c) explain the
treatment of a LIST order in the afterhours market. The Exchange also
proposes to make technical changes to
further explain the language of the rule.
NASDAQ offers its members optional
routing functionality that allows them to
use NASDAQ’s facilities to access
liquidity available on other trading
venues. The functionality includes a
range of defined routing algorithms—
known as strategies—that determine the
destinations and pattern of routing. The
particular pattern of routing to other
venues associated with a particular
strategy is referred to in Rule 4758 as
the ‘‘System routing table.’’ All routing
is designed to be conducted in a manner
consistent with the requirements of
Regulation NMS.
NASDAQ currently offers a set of
strategies designed to allow market
participants to route orders to the
primary market on which a security is
listed. NASDAQ is proposing minor
4 For a description of market sessions and hours
on the Exchange, see Rule 4120(b)(4). DOT, DOTI,
and LIST orders are defined below.
2 15
15 See
19099
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]]>Agencies
[Federal Register Volume 80, Number 68 (Thursday, April 9, 2015)]
[Notices]
[Pages 19097-19099]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-08110]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74645; File No. SR-BYX-2015-20]
Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 4.3, Record of Written Complaints
April 3, 2015.
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 March 26, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or
``BYX'') 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 Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 4.3, Record of Written
Complaints. The text of the proposed rule change is below. Proposed new
language is in italics; proposed deletions are in brackets.
* * * * *
Rule 4.3. Record of Written Complaints
(a) Each Member shall keep and preserve for a period of not less
than [five]four years a file of all written complaints of customers and
action taken by the Member in respect thereof, if any. Further, for the
first two years of the [five]four-year period, the Member shall keep
such file in a place readily accessible to examination or spot checks.
(b) (No change).
* * * * *
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 II.A., II.B., and II.C. below, of the most significant aspects
of such statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange filed a proposal to amend Rule 4.3, Record of Written
Complaints, to conform with the rules of the Financial Industry
Regulatory Authority, Inc. (``FINRA'') for purposes of an agreement
between the Exchange and FINRA, as well as to conform Exchange Rule 4.3
with the rules of the EDGX Exchange, Inc. (``EDGX'') and the EDGA
Exchange, Inc. (``EDGA'').\5\
---------------------------------------------------------------------------
\5\ See EDGA and EDGX Rules 4.3. See also Securities Exchange
Act Release Nos. 70715 (October 15, 2013), 78 FR 64041 (October 18,
2013) (SR-EDGA-2013-31) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change to Amend EDGA Rule 4.3, Record
of Written Complains, to Conform with Financial Industry Regulatory
Authority, Inc. Rule 4513); and 70714 (October 15, 2013), 78 FR
64038 (October 18, 2013) (SR-EDGX-2013-39) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change to Amend EDGX Rule
4.3, Record of Written Complains, to Conform with Financial Industry
Regulatory Authority, Inc. Rule 4513).
---------------------------------------------------------------------------
Pursuant to Rule 17d-2 under the Act,\6\ the Exchange and FINRA
entered into an agreement to allocate regulatory responsibility for
common rules (the ``17d-2 Agreement''). The 17d-2 Agreement covers
common members of the Exchange and FINRA and allocates to FINRA
regulatory responsibility, with respect to common members, for the
following: (i) examination of common members of the Exchange and FINRA
for compliance with federal securities laws, rules and regulations and
rules of the Exchange that the Exchange has certified as identical or
substantially similar to FINRA rules; (ii) investigation of common
members of the Exchange and FINRA for violations of federal securities
laws, rules or regulations, or Exchange rules that the Exchange has
certified as identical or substantially identical to a FINRA rule; and
(iii) enforcement of compliance by common
[[Page 19098]]
members of the Exchange and FINRA with the federal securities laws,
rules and regulations, and the rules of the Exchange that the Exchange
has certified as identical or substantially similar to FINRA rules.\7\
---------------------------------------------------------------------------
\6\ 17 CFR 240.17d-2.
\7\ See Securities and Exchange Release No. 58375 (August 13,
2008), 75 FR 51295 (August 19, 2008) (approving File No. 10-198).
---------------------------------------------------------------------------
The 17d-2 Agreement included a certification by the Exchange that
states that the requirements contained in certain Exchange rules are
identical to, or substantially similar to, certain FINRA rules that
have been identified as comparable. To conform to comparable FINRA
rules for purposes of the 17d-2 Agreement, the Exchange proposes to
amend Rule 4.3, Record of Written Complaints, to align with FINRA Rule
4513.\8\
---------------------------------------------------------------------------
\8\ See also Securities Exchange Act Release No. 63784 (January
27, 2011), 76 FR 5850 (February 2, 2011) (Order Approving Proposed
Rule Change); (File No. SR-FINRA-2010-052).
---------------------------------------------------------------------------
Exchange Rule 4.3 currently requires that members of the Exchange
(``Members'') keep and preserve written customer complaints \9\ for a
period of not less than five years, the first two of which must be in a
readily accessible place. To take into account FINRA's four-year
routine examination cycle for certain members, FINRA Rule 4513 requires
that members preserve the customer complaint records for a period of at
least four years. Under the 17d-2 Agreement, FINRA examines common
members of the Exchange and FINRA for compliance with Exchange Rule
4.3. However, because of the differing retention periods between
Exchange Rule 4.3 and FINRA Rule 4513, the 17d-2 Agreement specifically
states that FINRA has the regulatory responsibilities for the first
four years of Exchange Rule 4.3's five year record retention
requirement.
---------------------------------------------------------------------------
\9\ Exchange Rule 4.3(b) defines a ``complaint'' as ``any
written statement of a customer or any person acting on behalf of a
customer alleging a grievance involving the activities of a Member
or persons under the control of the Member in connection with (1)
the solicitation or execution of any transaction conducted or
contemplated to be conducted through the facilities of the Exchange
or (2) the disposition of securities or funds of that customer which
activities are related to such a transaction.''
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The Exchange, therefore, proposes to decrease the record retention
requirements under Rule 4.3 from five to four years. The Exchange
believes that amending the record retention requirements for customer
complaints to align with FINRA Rule 4513 would help to avoid confusion
among Members that are also members of FINRA, EDGA, or EDGX. The
Exchange further believes that aligning the Exchange's rules with FINRA
Rule 4513 would account for FINRA's four-year routine examination cycle
for certain members, which FINRA conducts on the Exchange's behalf
under the 17d-2 Agreement ensuring consistent regulation of Members
that are also members of FINRA.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \10\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \11\ in particular, in that it
is designed to promote just and equitable principles of trade, to
remove impediments to, and perfect the mechanism of, a free and open
market and a national market system, and, in general, to protect
investors and the public interest, by eliminating unnecessary confusion
with respect to the Exchange's rules. The proposed rule change should
provide greater harmonization between similar Exchange, EDGA, EDGX and
FINRA rules, resulting in greater uniformity and less burdensome and
more efficient regulatory compliance. The proposed rule change should
foster cooperation and coordination with persons engaged in
facilitating transactions in securities and should remove impediments
to and perfect the mechanism of a free and open market and a national
market system consistent with the requirements of Section 6(b)(5) of
the Act.\12\
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\10\ See 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ 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 not necessary or appropriate in
furtherance of the purposes of the Act because the proposed change
would apply to all Members equally.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
No written comments were either solicited or 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)(ii) of the Act \13\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\14\
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\13\ See 15 U.S.C. 78s(b)(3)(a)(ii).
\14\ See 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 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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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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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 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 No. SR-BYX-2015-20 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-BYX-2015-20. 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
[[Page 19099]]
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
the 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-BYX-2015-20 and should
be submitted on or before April 30, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ See 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-08110 Filed 4-8-15; 08:45 am]
BILLING CODE 8011-01-P
