Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.15, Clearly Erroneous Executions, 60216-60219 [2015-25180]
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Federal Register / Vol. 80, No. 192 / Monday, October 5, 2015 / Notices
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
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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Electronic Comments:
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number
SR–NYSEMKT–2015–67 on the subject
line.
Paper Comments:
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEMKT–2015–67. 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
file the proposed rule change, along with a brief
description and 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. The Exchange
has satisfied this requirement.
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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 Number SR–
NYSEMKT–2015–67 andshould be
submitted on or before October 26,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–25175 Filed 10–2–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76018; File No. SR–EDGX–
2015–42]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 11.15,
Clearly Erroneous Executions
September 29, 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
September 21, 2015, EDGX Exchange,
Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) 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 filed a proposal to
amend Rule 11.15, Clearly Erroneous
Executions, in order to conform to the
rules of BATS Exchange, Inc. (‘‘BZX’’)
and BATS Y-Exchange, Inc. (‘‘BYX’’).3
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
principal office of the Exchange, and at
21 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See BYX and BZX Rule 11.17.
1 15
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the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In early 2014, the Exchange and its
affiliate, EDGA Exchange, Inc.
(‘‘EDGA’’) received approval to effect a
merger (the ‘‘Merger’’) of the Exchange’s
parent company, Direct Edge Holdings
LLC, with BATS Global Markets, Inc.,
the parent of BZX and the BATS YExchange, Inc. (‘‘BYX’’, together with
BZX, EDGA and EDGX, the ‘‘BGM
Affiliated Exchanges’’).4 In the context
of the Merger, the BGM Affiliated
Exchanges are working to align their
rules, retaining only intended
differences between the BGM Affiliated
Exchanges. Thus, the Exchange
proposes to restructure and amend Rule
11.15, Clearly Erroneous Executions, in
order to conform to the corresponding
rules of BYX and BZX and provide a
consistent rule set across each of the
BGM Affiliated Exchanges.5
Background
On September 10, 2010, the
Commission approved, on a pilot basis,
changes to Exchange Rule 11.15 to
provide for uniform treatment: (1) Of
clearly erroneous 6 execution reviews in
multi-stock events involving twenty or
4 See Securities Exchange Act Release No. 71449
(January 30, 2014), 79 FR 6961 (February 5, 2014)
(SR–EDGX–2013–43; SR–EDGA–2013–34).
5 The Exchange notes that EDGA intends to file
an identical proposal with the Commission to
restructure and amend its Rule 11.15, Clearly
Erroneous Executions, to conform to BYX and BZX
Rules 11.17.
6 The terms of a transaction executed on the
Exchange are ‘‘clearly erroneous’’ when there is an
obvious error in any term, such as price, number
of shares or other unit of trading, or identification
of the security. A transaction made in clearly
erroneous error and cancelled by both parties or
determined by the Exchange to be clearly erroneous
will be removed from the Consolidated Tape. See
Exchange Rule 11.15(a).
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more securities; and (2) in the event
transactions occur that result in the
issuance of an individual stock trading
pause by the primary listing market and
subsequent transactions that occur
before the trading pause is in effect on
the Exchange.7 The Exchange also
adopted additional changes to Rule
11.15 that reduced the ability of the
Exchange to deviate from the objective
standards set forth in Rule 11.15,8 and
in 2013, adopted a provision designed
to address the operation of the Plan to
Address Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS
under the Act (the ‘‘Limit Up-Limit
Down Plan’’ or the ‘‘Plan’’).9 In 2014,
the Exchange adopted two additional
provisions providing that: (i) A series of
transactions in a particular security on
one or more trading days may be viewed
as one event if all such transactions
were effected based on the same
fundamentally incorrect or grossly
misinterpreted issuance information
resulting in a severe valuation error for
all such transactions (the ‘‘Multi-Day
Event’’); and (ii) in the event of any
disruption or malfunction in the
operation of the electronic
communications and trading facilities of
an Exchange, another SRO, or
responsible single plan processor in
connection with the transmittal or
receipt of a trading halt, an Officer,
acting on his or her own motion, shall
nullify any transaction that occurs after
a trading halt has been declared by the
primary listing market for a security and
before such trading halt has officially
ended according to the primary listing
market.10
The Exchange proposes the below
changes to conform Rule 11.15 to BYX
and BZX Rules 11.17. None of these
changes are designed to amend the
Exchange’s current review process for
clearly erroneous executions. Rather,
they are proposed in order to implement
identical rules with regard to clearly
erroneous executions across each of the
BGM Affiliated Exchanges.11 The
7 Securities Exchange Act Release No. 62886
(Sept. 10, 2010), 75 FR 56613 (Sept. 16, 2010) (SR–
EDGX–2010–03).
8 Id.
9 See Securities Exchange Act Release No. 68814
(Feb. 1, 2013), 78 FR 9086 (Feb. 7, 2013) (SR–
EDGX–2013–06); see also Exchange Rule 11.15(i).
10 See Securities Exchange Act Release No. 72434
(June 19, 2014), 79 FR 36110 (June 25, 2014) (SR–
EDGX–2014–12).
11 The Exchange notes that BYX and BZX are to
file rule changes with the Commission to propose
a series of changes to their Rules 11.17, Clearly
Erroneous Executions, to conform with other
provisions of EDGA and EDGX Rule 11.15 to ensure
each of the BGM Affiliated Exchange have identical
rule text with regard to the review and handling of
clearly erroneous executions.
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proposed changes to Rule 11.15 are as
follows:
• Amend the last sentence of the
introductory paragraph to include the
word ‘‘replaced’’.
• Replace references to ‘‘Officer’’ with
‘‘Official’’ in paragraphs (b), (b)(1),
(c)(3), (d), (e)(1), (e)(2), (e)(2)(D), and
(e)(2)(F).
• Replace the term ‘‘Regular Market
Session’’ with ‘‘Regular Trading Hours’’
in paragraphs (c)(1), (e)(1), and (g).
• Amend paragraph (b)(1) to: (i)
Clarify that requests for review must be
received by the Exchange within thirty
(30) minutes of the execution time; (ii)
replace the word ‘‘Section’’ with
‘‘paragraph’’ and encase ‘‘30’’ in
parentheses as well as insert the word
‘‘thirty’’ immediately before ‘‘(30)’’ in
the second sentence; (iii) specify in the
fourth sentence that if requested, each
party shall provide any supporting
written information as may be
reasonably requested by the Official to
aid resolution of the matter and remove
the phrase ‘‘any supporting written
information.’’
• Amend paragraph (b)(2) to encase
both ‘‘30’’ and ‘‘60’’ in parentheses as
well as insert the word ‘‘thirty’’
immediately before ‘‘(30)’’ and the word
‘‘sixty’’ immediately before ‘‘(60)’’.
• Amend paragraph (c)(1) to: (i)
Delete the word ‘‘the’’ before the word
‘‘Regular’’ and add the word ‘‘during’’
before the phrase ‘‘the Pre-Opening and
. . . ’’ in the first sentence; (ii) remove
the ‘‘s’’ from the word ‘‘occur’’ within
the parenthetical in the third sentence;
and (iii) insert the word ‘‘paragraph’’
before ‘‘(c)(2)’’ in the fourth sentence.
• Amend the first sentence of
paragraph (c)(3) to: (i) Remove the ‘‘s’’
from the word ‘‘system’’; (ii) replace
‘‘IPO’’ with the term ‘‘initial public
offering’’; and (iii) remove ‘‘’s’’ from the
word ‘‘tape’’.
• Amend paragraph (d) to: (i) Replace
the term ‘‘at its’’ with ‘‘in his or her’’;
(ii) replace the word ‘‘subsection’’ with
‘‘paragraph’’; and (ii) encase both ‘‘30’’
and ‘‘60’’ in parentheses as well as
insert the word ‘‘thirty’’ immediately
before ‘‘(30)’’.
• Reformat and renumber paragraph
(d)(1)(A) as (d)(1) and (d)(1)(B) as (d)(2).
• Amend renumbered and
reformatted paragraph (d)(1) to: (i) Not
capitalize the word ‘‘Paragraph’’; (ii)
replace the word ‘‘Section’’ with
‘‘Rule’’; and (iii) delete ‘‘, or’’.
• Amend renumbered and
reformatted paragraph (d)(2) to: (i) Not
capitalize the word ‘‘Paragraph’’; (ii)
replace the words ‘‘the Section’’ with
‘‘this Rule’’; and (iii) replace ‘‘11.15’’
with the word ‘‘paragraph’’ before the
reference to (c)(3).
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• Amend paragraph (e)(1) to encase
‘‘30’’ in parentheses as well as insert the
word ‘‘thirty’’ immediately before ‘‘(30)’’
in the third sentence.
• Amend paragraph (e)(2)(B) to
rephrase the term ‘‘ten (10) Member
representatives’’ with ‘‘ten (10)
representatives of Members’’.
• Renumber paragraph (e)(3) as
(e)(2)(C) and amend the paragraph to: (i)
Specify that a request for review on
appeal must be made, not only via
email, but also in writing or other
electronic means specified from time to
time by the Exchange in a circular
distributed to Members; and (ii) replace
‘‘3:00 ET’’ with ‘‘3:00 p.m. Eastern
Time’’ in the third sentence.
• Renumber paragraph (e)(4) as
(e)(2)(D).
• Renumber paragraph (e)(5) as
(e)(2)(E) and: (i) Replace reference to
‘‘Rule 11.15(e)(1)’’ with ‘‘paragraph
(e)(1) above’’; and (ii) add a sentence
stating that in instances where the
Exchange, on behalf of a Member,
requests a determination by another
market center that a transaction is
clearly erroneous, the Exchange will
pass any resulting charges through to
the relevant Member.
• Renumber paragraph (e)(6) as
(e)(2)(F).
• Within paragraph (f), amend: (i) The
first sentence to replace the word ‘‘the’’
with ‘‘an’’ before the ‘‘Officer’’ and
delete the word ‘‘such’’ before ‘‘other
senior level employee designee’’; (ii) the
second sentence to remove the ‘‘s’’ from
the ‘‘paragraphs’’ before reference to
paragraph (c)(1)–(3); (iii) the third
sentence to delete the word ‘‘such’’
before ‘‘other senior level employee
designee’’; (iv) amend the fourth
sentence to delete the term ‘‘such other
’’ before ‘‘senior level employee
designee’’, replace the term ‘‘Regular
Session Trading’’ with ‘‘Regular Trading
Hours’’, and add the word ‘‘trading’’
before ‘‘day’’; and (v) amend the last
sentence to clarify that notice shall be
provided by the Exchange, replace the
word ‘‘Member’’ with ‘‘party’’, remove
the ‘‘s’’ from the ‘‘paragraphs’’ and
delete reference to paragraph (e)(3) and
(4) as those paragraph are now included
in (e)(2).
• Amend paragraph (g) to: (i) Retitle
it as ‘‘Officer Acting On Own Motion’’;
(ii) delete the term ‘‘such other ’’ before
‘‘senior level employee designee’’ and
replace the term ‘‘its’’ with ‘‘his or her’’
in the first sentence; (iii) delete the
word ‘‘such’’ before ‘‘other senior level
employee designee’’ in the fourth
sentence; and (iv) remove the ‘‘s’’ from
the ‘‘paragraphs’’ and delete reference to
paragraph (e)(3) and (4) as those
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paragraphs are now included in (e)(2) in
the last sentence.
• Within paragraph (h), amend: (i)
The first sentence to replace the term
‘‘initial public offering’’ with ‘‘IPO’’; (ii)
the third and fourth sentences to delete
the word ‘‘such’’ before ‘‘other senior
level employee designee’’; (iii) the sixth
sentence to delete the word ‘‘such’’
before ‘‘other senior level employee
designee’’, replace the term ‘‘Regular
Session Trading’’ with ‘‘Regular Trading
Hours’’, and add the word ‘‘trading’’
before ‘‘day’’; and (v) amend the last
sentence to replace the term
‘‘subsection’’ with ‘‘paragraph’’ and
delete reference to paragraphs (e)(3) and
(4) as those paragraphs are now
included in (e)(2).
Amend the last sentence in
paragraphs (j) and (k) to delete reference
to paragraphs (e)(3) and (4) as those
paragraphs are now included in (e)(2).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the
Act.12 Specifically, the proposed change
is consistent with Section 6(b)(5) of the
Act,13 because 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. None of these changes
are designed to amend the Exchange’s
current review process for clearly
erroneous executions. Rather, as
mentioned above, the proposed rule
changes, combined with the planned
filing for the BYX, BZX, and EDGA,
would allow the BGM Affiliated
Exchanges to provide a consistent set of
rules as it relates to clearly erroneous
executions. Consistent rules, in turn,
will simplify the regulatory
requirements for Members of the
Exchange that are also participants on
EDGA, BYZ and/or BZX. The proposed
rule change would provide greater
harmonization between rules of similar
purpose on the BGM Affiliated
Exchanges, resulting in greater
uniformity and less burdensome and
more efficient regulatory compliance
and understanding of Exchange Rules.
As such, the proposed rule change
would foster cooperation and
coordination with persons engaged in
facilitating transactions in securities and
12 15
13 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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18:34 Oct 02, 2015
would remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. Similarly, the Exchange also
believes that, by harmonizing the rules
across each BGM Affiliated Exchange,
the proposal will enhance the
Exchange’s ability to fairly and
efficiently regulate its Members,
meaning that the proposed rule change
is equitable and will promote fairness in
the market place. Finally, the Exchange
believes that the non-substantive
changes discussed above will contribute
to the protection of investors and the
public interest by helping to avoid
confusion with respect to Exchange
Rules.
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. To the
contrary, allowing the Exchange to
implement substantively identical rules
across each of the BGM Affiliated
Exchanges regarding clearly erroneous
executions does not present any
competitive issues, but rather is
designed to provide greater
harmonization among Exchange, BZX,
BYX, and EDGA rules of similar
purpose. The proposed rule change
should, therefore, result in less
burdensome and more efficient
regulatory compliance as well as a better
understanding of Exchange Rules for
common members of the BGM Affiliated
Exchanges.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this rule
filing as non-controversial under
Section 19(b)(3)(A) of the Act 14 and
paragraph (f)(6) of Rule 19b–4
thereunder.15 The proposed rule change
effects a change that (A) does not
significantly affect the protection of
investors or the public interest; (B) does
not impose any significant burden on
competition; and (C) by its terms, does
not become operative for 30 days after
the date of the filing, or such shorter
14 15
15 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b-4.
Frm 00105
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time as the Commission may designate
if consistent with the protection of
investors and the public interest;
provided that the self-regulatory
organization has given the Commission
written notice of its intent to file the
proposed rule change, along with a brief
description and 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.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily
temporarily suspend such rule change if
it appears to the Commission that such
action is: (1) Necessary or appropriate in
the public interest; (2) for the protection
of investors; or (3) 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 Number SR–
EDGX–2015–42 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
Number SR–EDGX–2015–42. 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
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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 Number SR–EDGX–
2015–42, and should be submitted on or
before October 26, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–25180 Filed 10–2–15; 8:45 am]
BILLING CODE 8011–01–P
enforcement issues affecting their
members.
The
hearing is open to the public; however,
advance notice of participation is
requested. Anyone wishing to testify at
´ ´
the hearing must contact Jose Mendez
by October 9, 2015, in writing, by fax,
or email in order to be placed on the
agenda. For further information, please
´ ´
contact Jose Mendez, Case Management
Specialist, Office of the National
Ombudsman, 409 3rd Street SW., Suite
7125, Washington, DC 20416, by fax
(202) 481–5719, by email at
ombudsman-events@sba.gov, or by
phone (202) 205–6178. Additionally, if
you need accommodations because of a
disability, translation services, or
require additional information, please
´ ´
contact Jose Mendez as well at least 1
week in advance.
For more information on the Office of
the National Ombudsman, see our Web
site at www.sba.gov/ombudsman.
Sincerely,
FOR FURTHER INFORMATION CONTACT:
SMALL BUSINESS ADMINISTRATION
Regulatory Fairness Hearing; Regions
VI and IX—Arizona and New Mexico
Dated: September 29, 2015.
Miguel J. L’Heureux,
SBA Committee Management Officer.
[FR Doc. 2015–25243 Filed 10–2–15; 8:45 am]
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SMALL BUSINESS ADMINISTRATION
National Small Business Development
Center Advisory Board
The SBA, Office of the
National Ombudsman is issuing this
notice to announce the date and time of
a Regulatory Fairness Hearing for
Regions VI and IX. This hearing is open
to the public and will be conducted via
teleconference.
DATES: The hearing will be held on
Wednesday, October 14, 2015, from 8:30
a.m. to 5:00 p.m. (MST), providing there
is not a Federal government shut-down
or SBA furlough.
ADDRESSES: The hearing will be
conducted via teleconference only. You
can join the hearing by dialing the tollfree conference number (888) 858–2144
followed by the access code 2235366#.
SUPPLEMENTARY INFORMATION: Pursuant
to the Small Business Regulatory
Enforcement Fairness Act (Pub. L. 104–
121), Sec. 222, SBA announces the
hearing for Small Business Owners,
Business Leaders, Business
Organizations, Trade Associations,
Chambers of Commerce and related
organizations serving small business
concerns to report experiences regarding
unfair or excessive Federal regulatory
CFR 200.30–3(a)(12).
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18:34 Oct 02, 2015
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Miguel L’ Heureux,
White House Liaison.
[FR Doc. 2015–24856 Filed 10–2–15; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
U.S. Small Business
Administration (SBA).
ACTION: Notice of open Hearing of
Regions VI and IX Small Business
Owners and Business Leaders.
16 17
The purpose of these meetings is to
discuss following issues pertaining to
the SBDC Advisory Board:
SBA Update Annual
Meetings Board
Assignments
Member Roundtable
FOR FURTHER INFORMATION CONTACT: The
meeting is open to the public however
advance notice of attendance is
requested. Anyone wishing to be a
listening participant must contact
Monika Nixon by fax or email. Her
contact information is Monika Nixon,
Program Specialist, 409 Third Street
SW., Washington, DC 20416, Phone,
202–205–7310, Fax 202–481–5624,
email, monika.nixon@sba.gov.
Additionally, if you need
accommodations because of a disability
or require additional information, please
contact Monika Nixon at the
information above.
BILLING CODE 8025–01–P
AGENCY:
SUMMARY:
60219
U.S. Small Business
Administration (SBA).
ACTION: Notice of open Federal Advisory
Committee meetings.
AGENCY:
The SBA is issuing this notice
to announce the location, date, time and
agenda for the 1st quarter meetings of
the National Small Business
Development Center (SBDC) Advisory
Board.
DATES: The meetings for the 1st quarter
will be held on the following dates:
Tuesday, October 20, 2015 at 1:00 p.m.
EST
Tuesday, November 17, 2015 at 1:00
p.m. EST
Tuesday, December 15, 2015 at 1:00
p.m. EST
ADDRESSES: These meetings will be held
via conference call.
SUPPLEMENTARY INFORMATION: Pursuant
to section 10(a) of the Federal Advisory
Committee Act (5 U.S.C. Appendix 2),
SBA announces the meetings of the
National SBDC Advisory Board. This
Board provides advice and counsel to
the SBA Administrator and Associate
Administrator for Small Business
Development Centers.
SUMMARY:
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
Notice of Final Federal Agency Actions
on Proposed Highway in Alaska
Federal Highway
Administration (FHWA), DOT.
ACTION: Notice of Limitation on Claims
for Judicial Review of Actions by the
FHWA and other Federal agencies.
AGENCY:
The FHWA is issuing this
notice to announce actions taken by
FHWA and other Federal agencies that
are final within the meaning of 23
U.S.C. 139(l)(1). The actions relate to a
proposed highway reconstruction
project: Knik-Goose Bay Road
Reconstruction: MP 0.3 to 6.8, Centaur
Avenue to Vine Road, in the MatanuskaSusitna Borough, Alaska. Those actions
grant licenses, permits, and approvals
for the project.
DATES: By this notice, the FHWA is
advising the public of final agency
actions subject to 23 U.S.C. 139(l)(1). A
claim seeking judicial review of the
Federal agency actions on the listed
highway project will be barred unless
the claim is filed on or before March 3,
2016. If the Federal law that authorizes
judicial review of a claim provides a
time period of less than 150 days for
filing such claim, then that shorter time
period still applies.
FOR FURTHER INFORMATION CONTACT: Mr.
John Lohrey, Statewide Programs Team
SUMMARY:
E:\FR\FM\05OCN1.SGM
05OCN1
]]>Agencies
[Federal Register Volume 80, Number 192 (Monday, October 5, 2015)]
[Notices]
[Pages 60216-60219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-25180]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76018; File No. SR-EDGX-2015-42]
Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 11.15, Clearly Erroneous Executions
September 29, 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 September 21, 2015, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend Rule 11.15, Clearly
Erroneous Executions, in order to conform to the rules of BATS
Exchange, Inc. (``BZX'') and BATS Y-Exchange, Inc. (``BYX'').\3\
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\3\ See BYX and BZX Rule 11.17.
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The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In early 2014, the Exchange and its affiliate, EDGA Exchange, Inc.
(``EDGA'') received approval to effect a merger (the ``Merger'') of the
Exchange's parent company, Direct Edge Holdings LLC, with BATS Global
Markets, Inc., the parent of BZX and the BATS Y-Exchange, Inc.
(``BYX'', together with BZX, EDGA and EDGX, the ``BGM Affiliated
Exchanges'').\4\ In the context of the Merger, the BGM Affiliated
Exchanges are working to align their rules, retaining only intended
differences between the BGM Affiliated Exchanges. Thus, the Exchange
proposes to restructure and amend Rule 11.15, Clearly Erroneous
Executions, in order to conform to the corresponding rules of BYX and
BZX and provide a consistent rule set across each of the BGM Affiliated
Exchanges.\5\
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\4\ See Securities Exchange Act Release No. 71449 (January 30,
2014), 79 FR 6961 (February 5, 2014) (SR-EDGX-2013-43; SR-EDGA-2013-
34).
\5\ The Exchange notes that EDGA intends to file an identical
proposal with the Commission to restructure and amend its Rule
11.15, Clearly Erroneous Executions, to conform to BYX and BZX Rules
11.17.
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Background
On September 10, 2010, the Commission approved, on a pilot basis,
changes to Exchange Rule 11.15 to provide for uniform treatment: (1) Of
clearly erroneous \6\ execution reviews in multi-stock events involving
twenty or
[[Page 60217]]
more securities; and (2) in the event transactions occur that result in
the issuance of an individual stock trading pause by the primary
listing market and subsequent transactions that occur before the
trading pause is in effect on the Exchange.\7\ The Exchange also
adopted additional changes to Rule 11.15 that reduced the ability of
the Exchange to deviate from the objective standards set forth in Rule
11.15,\8\ and in 2013, adopted a provision designed to address the
operation of the Plan to Address Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS under the Act (the ``Limit Up-
Limit Down Plan'' or the ``Plan'').\9\ In 2014, the Exchange adopted
two additional provisions providing that: (i) A series of transactions
in a particular security on one or more trading days may be viewed as
one event if all such transactions were effected based on the same
fundamentally incorrect or grossly misinterpreted issuance information
resulting in a severe valuation error for all such transactions (the
``Multi-Day Event''); and (ii) in the event of any disruption or
malfunction in the operation of the electronic communications and
trading facilities of an Exchange, another SRO, or responsible single
plan processor in connection with the transmittal or receipt of a
trading halt, an Officer, acting on his or her own motion, shall
nullify any transaction that occurs after a trading halt has been
declared by the primary listing market for a security and before such
trading halt has officially ended according to the primary listing
market.\10\
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\6\ The terms of a transaction executed on the Exchange are
``clearly erroneous'' when there is an obvious error in any term,
such as price, number of shares or other unit of trading, or
identification of the security. A transaction made in clearly
erroneous error and cancelled by both parties or determined by the
Exchange to be clearly erroneous will be removed from the
Consolidated Tape. See Exchange Rule 11.15(a).
\7\ Securities Exchange Act Release No. 62886 (Sept. 10, 2010),
75 FR 56613 (Sept. 16, 2010) (SR-EDGX-2010-03).
\8\ Id.
\9\ See Securities Exchange Act Release No. 68814 (Feb. 1,
2013), 78 FR 9086 (Feb. 7, 2013) (SR-EDGX-2013-06); see also
Exchange Rule 11.15(i).
\10\ See Securities Exchange Act Release No. 72434 (June 19,
2014), 79 FR 36110 (June 25, 2014) (SR-EDGX-2014-12).
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The Exchange proposes the below changes to conform Rule 11.15 to
BYX and BZX Rules 11.17. None of these changes are designed to amend
the Exchange's current review process for clearly erroneous executions.
Rather, they are proposed in order to implement identical rules with
regard to clearly erroneous executions across each of the BGM
Affiliated Exchanges.\11\ The proposed changes to Rule 11.15 are as
follows:
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\11\ The Exchange notes that BYX and BZX are to file rule
changes with the Commission to propose a series of changes to their
Rules 11.17, Clearly Erroneous Executions, to conform with other
provisions of EDGA and EDGX Rule 11.15 to ensure each of the BGM
Affiliated Exchange have identical rule text with regard to the
review and handling of clearly erroneous executions.
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Amend the last sentence of the introductory paragraph to
include the word ``replaced''.
Replace references to ``Officer'' with ``Official'' in
paragraphs (b), (b)(1), (c)(3), (d), (e)(1), (e)(2), (e)(2)(D), and
(e)(2)(F).
Replace the term ``Regular Market Session'' with ``Regular
Trading Hours'' in paragraphs (c)(1), (e)(1), and (g).
Amend paragraph (b)(1) to: (i) Clarify that requests for
review must be received by the Exchange within thirty (30) minutes of
the execution time; (ii) replace the word ``Section'' with
``paragraph'' and encase ``30'' in parentheses as well as insert the
word ``thirty'' immediately before ``(30)'' in the second sentence;
(iii) specify in the fourth sentence that if requested, each party
shall provide any supporting written information as may be reasonably
requested by the Official to aid resolution of the matter and remove
the phrase ``any supporting written information.''
Amend paragraph (b)(2) to encase both ``30'' and ``60'' in
parentheses as well as insert the word ``thirty'' immediately before
``(30)'' and the word ``sixty'' immediately before ``(60)''.
Amend paragraph (c)(1) to: (i) Delete the word ``the''
before the word ``Regular'' and add the word ``during'' before the
phrase ``the Pre-Opening and . . . '' in the first sentence; (ii)
remove the ``s'' from the word ``occur'' within the parenthetical in
the third sentence; and (iii) insert the word ``paragraph'' before
``(c)(2)'' in the fourth sentence.
Amend the first sentence of paragraph (c)(3) to: (i)
Remove the ``s'' from the word ``system''; (ii) replace ``IPO'' with
the term ``initial public offering''; and (iii) remove ``'s'' from the
word ``tape''.
Amend paragraph (d) to: (i) Replace the term ``at its''
with ``in his or her''; (ii) replace the word ``subsection'' with
``paragraph''; and (ii) encase both ``30'' and ``60'' in parentheses as
well as insert the word ``thirty'' immediately before ``(30)''.
Reformat and renumber paragraph (d)(1)(A) as (d)(1) and
(d)(1)(B) as (d)(2).
Amend renumbered and reformatted paragraph (d)(1) to: (i)
Not capitalize the word ``Paragraph''; (ii) replace the word
``Section'' with ``Rule''; and (iii) delete ``, or''.
Amend renumbered and reformatted paragraph (d)(2) to: (i)
Not capitalize the word ``Paragraph''; (ii) replace the words ``the
Section'' with ``this Rule''; and (iii) replace ``11.15'' with the word
``paragraph'' before the reference to (c)(3).
Amend paragraph (e)(1) to encase ``30'' in parentheses as
well as insert the word ``thirty'' immediately before ``(30)'' in the
third sentence.
Amend paragraph (e)(2)(B) to rephrase the term ``ten (10)
Member representatives'' with ``ten (10) representatives of Members''.
Renumber paragraph (e)(3) as (e)(2)(C) and amend the
paragraph to: (i) Specify that a request for review on appeal must be
made, not only via email, but also in writing or other electronic means
specified from time to time by the Exchange in a circular distributed
to Members; and (ii) replace ``3:00 ET'' with ``3:00 p.m. Eastern
Time'' in the third sentence.
Renumber paragraph (e)(4) as (e)(2)(D).
Renumber paragraph (e)(5) as (e)(2)(E) and: (i) Replace
reference to ``Rule 11.15(e)(1)'' with ``paragraph (e)(1) above''; and
(ii) add a sentence stating that in instances where the Exchange, on
behalf of a Member, requests a determination by another market center
that a transaction is clearly erroneous, the Exchange will pass any
resulting charges through to the relevant Member.
Renumber paragraph (e)(6) as (e)(2)(F).
Within paragraph (f), amend: (i) The first sentence to
replace the word ``the'' with ``an'' before the ``Officer'' and delete
the word ``such'' before ``other senior level employee designee''; (ii)
the second sentence to remove the ``s'' from the ``paragraphs'' before
reference to paragraph (c)(1)-(3); (iii) the third sentence to delete
the word ``such'' before ``other senior level employee designee''; (iv)
amend the fourth sentence to delete the term ``such other '' before
``senior level employee designee'', replace the term ``Regular Session
Trading'' with ``Regular Trading Hours'', and add the word ``trading''
before ``day''; and (v) amend the last sentence to clarify that notice
shall be provided by the Exchange, replace the word ``Member'' with
``party'', remove the ``s'' from the ``paragraphs'' and delete
reference to paragraph (e)(3) and (4) as those paragraph are now
included in (e)(2).
Amend paragraph (g) to: (i) Retitle it as ``Officer Acting
On Own Motion''; (ii) delete the term ``such other '' before ``senior
level employee designee'' and replace the term ``its'' with ``his or
her'' in the first sentence; (iii) delete the word ``such'' before
``other senior level employee designee'' in the fourth sentence; and
(iv) remove the ``s'' from the ``paragraphs'' and delete reference to
paragraph (e)(3) and (4) as those
[[Page 60218]]
paragraphs are now included in (e)(2) in the last sentence.
Within paragraph (h), amend: (i) The first sentence to
replace the term ``initial public offering'' with ``IPO''; (ii) the
third and fourth sentences to delete the word ``such'' before ``other
senior level employee designee''; (iii) the sixth sentence to delete
the word ``such'' before ``other senior level employee designee'',
replace the term ``Regular Session Trading'' with ``Regular Trading
Hours'', and add the word ``trading'' before ``day''; and (v) amend the
last sentence to replace the term ``subsection'' with ``paragraph'' and
delete reference to paragraphs (e)(3) and (4) as those paragraphs are
now included in (e)(2).
Amend the last sentence in paragraphs (j) and (k) to delete
reference to paragraphs (e)(3) and (4) as those paragraphs are now
included in (e)(2).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the requirements of Section 6(b) of the Act.\12\
Specifically, the proposed change is consistent with Section 6(b)(5) of
the Act,\13\ because 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. None of these
changes are designed to amend the Exchange's current review process for
clearly erroneous executions. Rather, as mentioned above, the proposed
rule changes, combined with the planned filing for the BYX, BZX, and
EDGA, would allow the BGM Affiliated Exchanges to provide a consistent
set of rules as it relates to clearly erroneous executions. Consistent
rules, in turn, will simplify the regulatory requirements for Members
of the Exchange that are also participants on EDGA, BYZ and/or BZX. The
proposed rule change would provide greater harmonization between rules
of similar purpose on the BGM Affiliated Exchanges, resulting in
greater uniformity and less burdensome and more efficient regulatory
compliance and understanding of Exchange Rules. As such, the proposed
rule change would foster cooperation and coordination with persons
engaged in facilitating transactions in securities and would remove
impediments to and perfect the mechanism of a free and open market and
a national market system. Similarly, the Exchange also believes that,
by harmonizing the rules across each BGM Affiliated Exchange, the
proposal will enhance the Exchange's ability to fairly and efficiently
regulate its Members, meaning that the proposed rule change is
equitable and will promote fairness in the market place. Finally, the
Exchange believes that the non-substantive changes discussed above will
contribute to the protection of investors and the public interest by
helping to avoid confusion with respect to Exchange Rules.
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\12\ 15 U.S.C. 78f(b).
\13\ 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. To the contrary, allowing the
Exchange to implement substantively identical rules across each of the
BGM Affiliated Exchanges regarding clearly erroneous executions does
not present any competitive issues, but rather is designed to provide
greater harmonization among Exchange, BZX, BYX, and EDGA rules of
similar purpose. The proposed rule change should, therefore, result in
less burdensome and more efficient regulatory compliance as well as a
better understanding of Exchange Rules for common members of the BGM
Affiliated Exchanges.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this rule filing as non-controversial
under Section 19(b)(3)(A) of the Act \14\ and paragraph (f)(6) of Rule
19b-4 thereunder.\15\ The proposed rule change effects a change that
(A) does not significantly affect the protection of investors or the
public interest; (B) does not impose any significant burden on
competition; and (C) by its terms, does not become operative for 30
days after the date of the filing, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest; provided that the self-regulatory organization
has given the Commission written notice of its intent to file the
proposed rule change, along with a brief description and 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.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4.
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily temporarily suspend such rule
change if it appears to the Commission that such action is: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) 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 Number SR-EDGX-2015-42 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 Number SR-EDGX-2015-42. 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
[[Page 60219]]
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 Number SR-EDGX-2015-42, and should be submitted on or before
October 26, 2015.
For the Commission, by the Division of Trading and Markets, pursuant
to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-25180 Filed 10-2-15; 8:45 am]
BILLING CODE 8011-01-P
