Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Rule 2.4, Mandatory Participation in Testing of Backup Systems, 63849-63852 [2015-26677]
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Federal Register / Vol. 80, No. 203 / Wednesday, October 21, 2015 / Notices
63849
INFORMATION CONTACT
section by
telephone for advice on filing
alternatives.
By the Commission.
Ruth Ann Abrams,
Acting Secretary.
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2015–26686 Filed 10–20–15; 8:45 am]
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Julie S. Moore,
Secretary.
BILLING CODE 7710–FW–P
[FR Doc. 2015–26889 Filed 10–19–15; 4:15 pm]
SW., Washington, DC 20260–1000.
Telephone: (202) 268–4800.
BILLING CODE 7710–12–P
Table of Contents
POSTAL SERVICE
I. Introduction
II. Notice of Commission Action
III. Ordering Paragraphs
Temporary Emergency Committee of
the Board of Governors; Sunshine Act
Meeting
I. Introduction
Thursday, November
12, 2015, at 10:15 a.m.; and Friday,
November 13, at 8:30 a.m. and 10:00
a.m.
PLACE: Washington, DC, at U.S. Postal
Service Headquarters, 475 L’Enfant
Plaza SW., in the Benjamin Franklin
Room.
STATUS: Thursday, November 12, at
10:15 a.m.—Closed; Friday, November
13, at 8:30 a.m.—Open; and Friday
November 13, at 10:30 a.m.—Closed.
MATTERS TO BE CONSIDERED:
Thursday, November 12, 2015, at 10:15
a.m. (Closed)
1. Strategic Issues.
2. Pricing.
3. Financial Matters.
4. Compensation and Personnel Matters.
5. Governors’ Executive Session—
Discussion of prior agenda items
and Board governance.
Friday, November 13, at 8:30 a.m.
(Open)
1. Remarks of the Chairman of the
Temporary Emergency Committee
of the Board.
2. Remarks of the Postmaster General
and CEO.
3. Approval of Minutes of Previous
Meetings.
4. Committee Reports.
5. FY2015 10K and Financial
Statements.
6. FY2016 IFP and Financing
Resolution.
7. FY2017 Appropriations Request.
8. Quarterly Service Performance
Report.
9. Approval of Annual Report and
Comprehensive Statement.
10. Tentative Agenda for the January 7,
2016, teleconference.
11. Election of Chairman and Vice
Chairman of the Board of
Governors.
Friday, November 13, at 10:30 a.m.
(Closed—if needed)
1. Continuation of Thursday’s closed
session agenda.
CONTACT PERSON FOR MORE INFORMATION:
Julie S. Moore, Secretary of the Board,
U.S. Postal Service, 475 L’Enfant Plaza
DATES AND TIMES:
On October 14, 2015, the Postal
Service filed notice that it has entered
into an additional Global Expedited
Package Services 3 (GEPS 3) negotiated
service agreement (Agreement).1
To support its Notice, the Postal
Service filed a copy of the Agreement,
a copy of the Governors’ Decision
authorizing the product, a certification
of compliance with 39 U.S.C. 3633(a),
and an application for non-public
treatment of certain materials. It also
filed supporting financial workpapers.
II. Notice of Commission Action
The Commission establishes Docket
No. CP2016–7 for consideration of
matters raised by the Notice.
The Commission invites comments on
whether the Postal Service’s filing is
consistent with 39 U.S.C. 3632, 3633, or
3642, 39 CFR part 3015, and 39 CFR
part 3020, subpart B. Comments are due
no later than October 22, 2015. The
public portions of the filing can be
accessed via the Commission’s Web site
(https://www.prc.gov).
The Commission appoints Lyudmila
Y. Bzhilyanskaya to serve as Public
Representative in this docket.
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III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket
No. CP2016–7 for consideration of the
matters raised by the Postal Service’s
Notice.
2. Pursuant to 39 U.S.C. 505,
Lyudmila Y. Bzhilyanskaya is appointed
to serve as an officer of the Commission
to represent the interests of the general
public in this proceeding (Public
Representative).
3. Comments are due no later than
October 22, 2015.
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
1 Notice of United States Postal Service of Filing
a Functionally Equivalent Global Expedited
Package Services 3 Negotiated Service Agreement
and Application for Non-Public Treatment of
Materials Filed Under Seal, October 14, 2015
(Notice).
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RAILROAD RETIREMENT BOARD
Sunshine Act; Notice of Public Meeting
Notice is hereby given that the
Railroad Retirement Board will hold a
meeting on November 3, 2015, 10:00
a.m. at the Board’s meeting room on the
8th floor of its headquarters building,
844 North Rush Street, Chicago, Illinois
60611. The agenda for this meeting
follows:
Portion open to the public:
(1) Executive Committee Reports
(2) Use of Medical Specialists in the
Disability Application Process
The person to contact for more
information is Martha P. Rico, Secretary
to the Board, Phone No. 312–751–4920.
Dated: October 16, 2015.
Martha P. Rico,
Secretary to the Board.
[FR Doc. 2015–26901 Filed 10–19–15; 4:15 pm]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76162; File No. SR–BATS–
2015–86]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Adopt Rule 2.4,
Mandatory Participation in Testing of
Backup Systems
October 15, 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 October
2, 2015, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) 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
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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Federal Register / Vol. 80, No. 203 / Wednesday, October 21, 2015 / Notices
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 filed a proposal to
adopt business continuity and disaster
recovery plans (‘‘BC/DR plans’’) testing
requirements for certain Exchange
Members 5 in connection with
Regulation Systems Compliance and
Integrity (‘‘Regulation SCI’’), as further
described below.6
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.
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
As adopted by the Commission,
Regulation SCI applies to certain selfregulatory organizations (including the
Exchange), alternative trading systems
(‘‘ATSs’’), plan processors, and exempt
clearing agencies (collectively, ‘‘SCI
entities’’), and will require these SCI
entities to comply with requirements
with respect to the automated systems
central to the performance of their
regulated activities. Among the
requirements of Regulation SCI is Rule
1001(a)(2)(v), which requires the
Exchange and other SCI entities to
maintain ‘‘[b]usiness continuity and
disaster recovery plans that include
maintaining backup and recovery
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
6 See Securities Exchange Act Release No. 73639
(November 19, 2014), 79 FR 72252 (December 5,
2014) (‘‘SCI Adopting Release’’).
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capabilities sufficiently resilient and
geographically diverse and that are
reasonably designed to achieve next
business day resumption of trading and
two-hour resumption of critical SCI
systems following a wide-scale
disruption.’’ 7 The Exchange takes pride
in the reliability and availability of its
systems. Historically, Exchange systems
have been up and available more than
99.9% of the time; yet as a precaution,
the Exchange has put extensive time
and resources toward planning for
system failures and already maintains
robust BC/DR plans consistent with the
Rule. As set forth below, in connection
with Regulation SCI, the Exchange is
proposing to require certain Members to
participate in testing of the operation of
the Exchange’s BC/DR plans.
With respect to an SCI entity’s BC/DR
plans, including its backup systems,
paragraph (a) of Rule 1004 of Regulation
SCI requires each SCI entity to:
‘‘[e]stablish standards for the
designation of those members or
participants that the SCI entity
reasonably determines are, taken as a
whole, the minimum necessary for the
maintenance of fair and orderly markets
in the event of the activation of such
plans.’’ 8 Paragraph (b) of Rule 1004
further requires each SCI entity to
‘‘[d]esignate members or participants
pursuant to the standards established in
paragraph (a) of [Rule 1004] and require
participation by such designated
members or participants in scheduled
functional and performance testing of
the operation of such plans, in the
manner and frequency specified by the
SCI entity, provided that such frequency
shall not be less than once every 12
months.’’ 9 In order to comply with Rule
1004 of Regulation SCI, the Exchange
proposes to adopt Rule 2.4, governing
mandatory participation in testing of
Exchange backup systems, as described
below.
First, in paragraph (a) of Rule 2.4, the
Exchange proposes to include language
from paragraph (a) of Rule 1004 of
Regulation SCI to summarize the
Exchange’s obligation pursuant to such
rule. Specifically, the Exchange
proposes to state that ‘‘[p]ursuant to
Regulation SCI and with respect to the
Exchange’s business continuity and
disaster recovery plans, including its
backup systems, the Exchange is
required to establish standards for the
designation of Members that the
Exchange reasonably determines are,
taken as a whole, the minimum
necessary for the maintenance of fair
CFR 242.1001(a)(2)(v).
CFR 242.1004(a).
9 17 CFR 242.1004(b).
and orderly markets in the event of the
activation of such plans.’’ The Exchange
further proposes that paragraph (a)
indicate that the ‘‘Exchange has
established standards and will designate
Members according to those standards’’
as set forth in the proposed Rule. In
addition, the Exchange proposes to
make clear that all Members are
permitted to connect to the Exchange’s
backup systems as well as to participate
in testing of such systems. Proposed
paragraph (a) is consistent with the
Commission’s adoption of Regulation
SCI, which encouraged ‘‘SCI entities to
permit non-designated members or
participants to participate in the testing
of the SCI entity’s BC/DR plans if they
request to do so.’’ 10
Second, in paragraph (b) of Rule 2.4,
the Exchange proposes to specify the
criteria that will result in a Member
receiving a designation requiring it to
connect to the Exchange’s backup
systems and to participate in functional
and performance testing as announced
by the Exchange, which shall occur at
least once every 12 months.
Specifically, proposed paragraph (b)
would require all Members that account
for a meaningful percentage of the
Exchange’s volume and Members that
participate as Lead Market Makers
(‘‘LMMs’’) with respect to one or more
securities listed on the Exchange to
connect to the Exchange’s backup
systems and to participate in functional
and performance testing.
The Exchange notes that it encourages
all Members to connect to the
Exchange’s backup systems and to
participate in testing of such systems. In
fact, the Exchange provides logical ports
free of charge to all Members that
connect to Exchange backup systems in
order to help reduce the economic
burden of maintaining connectivity to
Exchange backup systems. However, in
adopting the requirements of Rule
2.4(b), including both the requirement
to maintain connectivity to Exchange
backup systems and to participate in
mandatory testing of such systems, the
Exchange intends to subject to the Rule
only those Members that the Exchange
believes are necessary to maintain fair
and orderly markets at the Exchange.
The Exchange believes that designating
Members to participate in mandatory
testing because they either account for
a meaningful percentage of the
Exchange’s overall volume or maintain
exclusive responsibilities with respect
to Exchange-listed securities is a
reasonable means to ensure the
maintenance of a fair and orderly
7 17
8 17
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10 See SCI Adopting Release, supra note 6 at
72350.
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Federal Register / Vol. 80, No. 203 / Wednesday, October 21, 2015 / Notices
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market on the Exchange. The Exchange
notes that it has not proposed initially
to extend the requirement to Members
that are registered as ‘‘Competitive
Liquidity Providers’’ or ‘‘CLPs’’, based
on the fact that such Members do not
have exclusive responsibilities with
respect to Exchange-listed securities but
instead are participating in a
competitive incentive program with
multiple market makers per product.
In addition to paragraphs (a) and (b)
described above, the Exchange also
proposes to adopt Interpretation and
Policy .01, which would provide
additional detail regarding the notice
that will be provided to Members that
have been designated pursuant to
subparagraph (b) of the Rule as well as
the Exchange’s method for measuring
the volume threshold. As proposed,
Interpretation and Policy .01 would
state that for purposes of identifying
Members that account for a meaningful
percentage of the Exchange’s overall
volume, the Exchange will measure
volume executed on the Exchange on a
quarterly basis. The percentage of
volume that the Exchange considers to
be meaningful for purposes of this
Interpretation and Policy .01 will be
determined by the Exchange and will be
published in a circular distributed to
Members. The Exchange will publish
the first circular consistent with this
proposal prior to the Regulation SCI
compliance date of November 3, 2015.
The proposed Interpretation and Policy
would also require the Exchange to
notify individual Members quarterly
that are subject to proposed paragraph
(b) based on the prior calendar quarter’s
volume. Finally, as proposed, if a
Member has not previously been subject
to the requirements of proposed
paragraph (b), then such Member would
have until the next calendar quarter
before such requirements are applicable.
The Exchange believes the proposed
notice requirements are necessary to
provide Members with proper advance
notice in the event they become subject
to proposed Rule 2.4(b). The proposed
timeframes would also provide
Members with adequate time to become
compliant with such Rule due to the
necessary infrastructure changes it may
take to connect to the Exchange’s
backup systems for a Member that is not
already connected.
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. The
proposal will ensure that the Members
necessary to ensure the maintenance of
a fair and orderly market are properly
designated consistent with Rule 1004 of
Regulation SCI. Specifically, the
proposal will adopt criteria with respect
to the designation of Members that are
required to participate in the testing of
the Exchange’s BC/DR plans, as well as
appropriate notification regarding such
designation. As set forth in the SCI
Adopting Release, ‘‘SROs have the
authority, and legal responsibility,
under Section 6 of the Exchange Act, to
adopt and enforce rules (including rules
to comply with Regulation SCI’s
requirements relating to BC/DR testing)
applicable to their members or
participants that are designed to, among
other things, foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, 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.’’ 13 The Exchange
believes that this proposal is consistent
with such authority and legal
responsibility.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 11 in general, and furthers the
objectives of Section 6(b)(5) of the Act 12
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
11 15
12 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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22:39 Oct 20, 2015
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, the proposal is not a
competitive proposal but rather is
necessary for the Exchange’s
compliance with Regulation SCI.
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.
The Exchange has designated this rule
filing as non-controversial under
13 See SCI Adopting Release, supra note 6 at
72350.
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63851
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.
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 proposal 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–
BATS–2015–86 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 No.
SR–BATS–2015–86. 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
14 15
15 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4.
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63852
Federal Register / Vol. 80, No. 203 / Wednesday, October 21, 2015 / Notices
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 will also 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–BATS–2015–86 and should be
submitted on or before November 12,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–26677 Filed 10–20–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76161; File No. SR–
NYSEArca–2015–88]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending
Representations Regarding the Names
and Principal Investments of Certain
WBI SMID Funds Currently Listed and
Traded on the Exchange Under NYSE
Arca Equities Rule 8.600
tkelley on DSK3SPTVN1PROD with NOTICES
October 15, 2015.
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
September 30, 2015, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. 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 change
representations regarding the names and
principal investments of each of the
following: WBI SMID Tactical Growth
Shares; WBI SMID Tactical Value
Shares; WBI SMID Tactical Yield
Shares; WBI SMID Tactical Select
Shares; WBI Large Cap Tactical Growth
Shares; WBI Large Cap Tactical Value
Shares; WBI Large Cap Tactical Yield
Shares; and WBI Large Cap Tactical
Select Share (each a ‘‘Fund’’ and,
collectively, the ‘‘Funds’’). Shares of the
Funds have been approved for listing
and trading on the Exchange under
NYSE Arca Equities Rule 8.600. The text
of the proposed rule change is available
on the Exchange’s Web site at
www.nyse.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
self-regulatory organization 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 those 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Commission has approved a
proposed rule change relating to listing
and trading on the Exchange of shares
(‘‘Shares’’) of the Funds under NYSE
Arca Equities Rule 8.600,4 which
4 See Securities Exchange Act Release No. 72895
(August 21, 2014), 79 FR 51210 (August 27, 2014)
(SR–NYSEArca–2014–67) (the ‘‘Prior Order’’). The
notice with respect to the Prior Order was
published in Securities Exchange Act Release No.
72526 (July 2, 2014), 79 FR 39035 (July 9, 2014)
(‘‘Prior Notice’’ and, together with the Prior Order,
the ‘‘Prior Release’’).
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governs the listing and trading of
Managed Fund Shares.5 The Funds’
Shares are currently listed and traded
on the Exchange under NYSE Arca
Equities Rule 8.600.
The Shares are offered by Absolute
Shares Trust (the ‘‘Trust’’), a statutory
trust organized under the laws of the
State of Delaware and registered with
the Commission as an open-end
management investment company.6 The
investment adviser to the Fund is
Millington Securities, Inc. (the
‘‘Adviser’’) and WBI Investments, Inc. is
each Fund’s sub-adviser (‘‘SubAdviser’’).
Common Fund Strategy and
Characteristics
The principal investment objective of
each Fund is to seek long-term capital
appreciation and the potential for
current income, while also seeking to
protect principal during unfavorable
market conditions. As described in the
Prior Release, the Sub-Adviser manages
each Fund’s portfolio based on a
proprietary selection process as
described in the Prior Release (the
‘‘Selection Process’’). The Selection
Process attempts to provide consistent,
attractive returns net of expenses with
potentially less volatility and risk to
capital than traditional approaches,
5 A Managed Fund Share is a security that
represents an interest in an investment company
registered under the Investment Company Act of
1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as
an open-end investment company or similar entity
that invests in a portfolio of securities selected by
its investment adviser consistent with its
investment objectives and policies. In contrast, an
open-end investment company that issues
Investment Company Units, listed and traded on
the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that
correspond generally to the price and yield
performance of a specific foreign or domestic stock
index, fixed income securities index or combination
thereof.
6 The Trust is registered under the 1940 Act. On
December 9, 2013, the Trust filed with the
Commission its registration statement on Form
N–1A under the Securities Act of 1933 (15 U.S.C.
77a) (‘‘Securities Act’’), and under the 1940 Act
relating to the Funds (File Nos. 333–192733 and
811–22917) (as amended, the ‘‘Registration
Statement’’). The Trust filed supplements to amend
the prospectus contained in the Registration
Statement on July 17, 2015 and filed post-effective
amendments to the Registration Statement on
August 21, 2015, which amendment will become
effective as of October 31, 2015, reflecting the
changes to the Funds described herein. For the
avoidance of doubt, the names and principal
investment strategies of the WBI Tactical Income
Shares and the WBI Tactical High Income Shares,
which also are series in the Trust approved in the
Prior Release, are not being changed. The
description of the operation of the Trust and the
Funds herein is based, in part, on the Registration
Statement. In addition, the Commission has issued
an order granting certain exemptive relief to the
Trust under the 1940 Act. See Investment Company
Act Release No. 30543 (May 29, 2013) (File No.
812–13886) (‘‘Exemptive Order’’).
E:\FR\FM\21OCN1.SGM
21OCN1
]]>Agencies
[Federal Register Volume 80, Number 203 (Wednesday, October 21, 2015)]
[Notices]
[Pages 63849-63852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26677]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76162; File No. SR-BATS-2015-86]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt
Rule 2.4, Mandatory Participation in Testing of Backup Systems
October 15, 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 October 2, 2015, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') 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
[[Page 63850]]
upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
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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 adopt business continuity and
disaster recovery plans (``BC/DR plans'') testing requirements for
certain Exchange Members \5\ in connection with Regulation Systems
Compliance and Integrity (``Regulation SCI''), as further described
below.\6\
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\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
\6\ See Securities Exchange Act Release No. 73639 (November 19,
2014), 79 FR 72252 (December 5, 2014) (``SCI Adopting Release'').
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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
As adopted by the Commission, Regulation SCI applies to certain
self-regulatory organizations (including the Exchange), alternative
trading systems (``ATSs''), plan processors, and exempt clearing
agencies (collectively, ``SCI entities''), and will require these SCI
entities to comply with requirements with respect to the automated
systems central to the performance of their regulated activities. Among
the requirements of Regulation SCI is Rule 1001(a)(2)(v), which
requires the Exchange and other SCI entities to maintain ``[b]usiness
continuity and disaster recovery plans that include maintaining backup
and recovery capabilities sufficiently resilient and geographically
diverse and that are reasonably designed to achieve next business day
resumption of trading and two-hour resumption of critical SCI systems
following a wide-scale disruption.'' \7\ The Exchange takes pride in
the reliability and availability of its systems. Historically, Exchange
systems have been up and available more than 99.9% of the time; yet as
a precaution, the Exchange has put extensive time and resources toward
planning for system failures and already maintains robust BC/DR plans
consistent with the Rule. As set forth below, in connection with
Regulation SCI, the Exchange is proposing to require certain Members to
participate in testing of the operation of the Exchange's BC/DR plans.
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\7\ 17 CFR 242.1001(a)(2)(v).
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With respect to an SCI entity's BC/DR plans, including its backup
systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI
entity to: ``[e]stablish standards for the designation of those members
or participants that the SCI entity reasonably determines are, taken as
a whole, the minimum necessary for the maintenance of fair and orderly
markets in the event of the activation of such plans.'' \8\ Paragraph
(b) of Rule 1004 further requires each SCI entity to ``[d]esignate
members or participants pursuant to the standards established in
paragraph (a) of [Rule 1004] and require participation by such
designated members or participants in scheduled functional and
performance testing of the operation of such plans, in the manner and
frequency specified by the SCI entity, provided that such frequency
shall not be less than once every 12 months.'' \9\ In order to comply
with Rule 1004 of Regulation SCI, the Exchange proposes to adopt Rule
2.4, governing mandatory participation in testing of Exchange backup
systems, as described below.
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\8\ 17 CFR 242.1004(a).
\9\ 17 CFR 242.1004(b).
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First, in paragraph (a) of Rule 2.4, the Exchange proposes to
include language from paragraph (a) of Rule 1004 of Regulation SCI to
summarize the Exchange's obligation pursuant to such rule.
Specifically, the Exchange proposes to state that ``[p]ursuant to
Regulation SCI and with respect to the Exchange's business continuity
and disaster recovery plans, including its backup systems, the Exchange
is required to establish standards for the designation of Members that
the Exchange reasonably determines are, taken as a whole, the minimum
necessary for the maintenance of fair and orderly markets in the event
of the activation of such plans.'' The Exchange further proposes that
paragraph (a) indicate that the ``Exchange has established standards
and will designate Members according to those standards'' as set forth
in the proposed Rule. In addition, the Exchange proposes to make clear
that all Members are permitted to connect to the Exchange's backup
systems as well as to participate in testing of such systems. Proposed
paragraph (a) is consistent with the Commission's adoption of
Regulation SCI, which encouraged ``SCI entities to permit non-
designated members or participants to participate in the testing of the
SCI entity's BC/DR plans if they request to do so.'' \10\
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\10\ See SCI Adopting Release, supra note 6 at 72350.
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Second, in paragraph (b) of Rule 2.4, the Exchange proposes to
specify the criteria that will result in a Member receiving a
designation requiring it to connect to the Exchange's backup systems
and to participate in functional and performance testing as announced
by the Exchange, which shall occur at least once every 12 months.
Specifically, proposed paragraph (b) would require all Members that
account for a meaningful percentage of the Exchange's volume and
Members that participate as Lead Market Makers (``LMMs'') with respect
to one or more securities listed on the Exchange to connect to the
Exchange's backup systems and to participate in functional and
performance testing.
The Exchange notes that it encourages all Members to connect to the
Exchange's backup systems and to participate in testing of such
systems. In fact, the Exchange provides logical ports free of charge to
all Members that connect to Exchange backup systems in order to help
reduce the economic burden of maintaining connectivity to Exchange
backup systems. However, in adopting the requirements of Rule 2.4(b),
including both the requirement to maintain connectivity to Exchange
backup systems and to participate in mandatory testing of such systems,
the Exchange intends to subject to the Rule only those Members that the
Exchange believes are necessary to maintain fair and orderly markets at
the Exchange. The Exchange believes that designating Members to
participate in mandatory testing because they either account for a
meaningful percentage of the Exchange's overall volume or maintain
exclusive responsibilities with respect to Exchange-listed securities
is a reasonable means to ensure the maintenance of a fair and orderly
[[Page 63851]]
market on the Exchange. The Exchange notes that it has not proposed
initially to extend the requirement to Members that are registered as
``Competitive Liquidity Providers'' or ``CLPs'', based on the fact that
such Members do not have exclusive responsibilities with respect to
Exchange-listed securities but instead are participating in a
competitive incentive program with multiple market makers per product.
In addition to paragraphs (a) and (b) described above, the Exchange
also proposes to adopt Interpretation and Policy .01, which would
provide additional detail regarding the notice that will be provided to
Members that have been designated pursuant to subparagraph (b) of the
Rule as well as the Exchange's method for measuring the volume
threshold. As proposed, Interpretation and Policy .01 would state that
for purposes of identifying Members that account for a meaningful
percentage of the Exchange's overall volume, the Exchange will measure
volume executed on the Exchange on a quarterly basis. The percentage of
volume that the Exchange considers to be meaningful for purposes of
this Interpretation and Policy .01 will be determined by the Exchange
and will be published in a circular distributed to Members. The
Exchange will publish the first circular consistent with this proposal
prior to the Regulation SCI compliance date of November 3, 2015. The
proposed Interpretation and Policy would also require the Exchange to
notify individual Members quarterly that are subject to proposed
paragraph (b) based on the prior calendar quarter's volume. Finally, as
proposed, if a Member has not previously been subject to the
requirements of proposed paragraph (b), then such Member would have
until the next calendar quarter before such requirements are
applicable. The Exchange believes the proposed notice requirements are
necessary to provide Members with proper advance notice in the event
they become subject to proposed Rule 2.4(b). The proposed timeframes
would also provide Members with adequate time to become compliant with
such Rule due to the necessary infrastructure changes it may take to
connect to the Exchange's backup systems for a Member that is not
already connected.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \11\ in general, and furthers the objectives of Section
6(b)(5) of the Act \12\ 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. The proposal will ensure that the Members necessary to ensure
the maintenance of a fair and orderly market are properly designated
consistent with Rule 1004 of Regulation SCI. Specifically, the proposal
will adopt criteria with respect to the designation of Members that are
required to participate in the testing of the Exchange's BC/DR plans,
as well as appropriate notification regarding such designation. As set
forth in the SCI Adopting Release, ``SROs have the authority, and legal
responsibility, under Section 6 of the Exchange Act, to adopt and
enforce rules (including rules to comply with Regulation SCI's
requirements relating to BC/DR testing) applicable to their members or
participants that are designed to, among other things, foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, 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.'' \13\ The Exchange believes that this proposal is consistent
with such authority and legal responsibility.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
\13\ See SCI Adopting Release, supra note 6 at 72350.
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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, the proposal
is not a competitive proposal but rather is necessary for the
Exchange's compliance with Regulation SCI.
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 proposal 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-BATS-2015-86 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 No. SR-BATS-2015-86. 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
[[Page 63852]]
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 will also 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-BATS-2015-86 and should
be submitted on or before November 12, 2015.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-26677 Filed 10-20-15; 8:45 am]
BILLING CODE 8011-01-P
