Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Constituting a Stated Interpretation With Respect to the Meaning, Administration, and Enforcement of Rule 28, 71868-71870 [2015-29228]

Download as PDF 71868 Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,10 the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. As noted above, the NYSE BQT data feed represents aggregated and consolidated information of six existing market data feeds. Although NYSE MKT, the NYSE and NYSE Arca are the exclusive distributors of the six BBO and Trades feeds from which certain data elements are taken to create the NYSE BQT data feed, the NYSE may not be the exclusive distributor of the aggregated and consolidated information that comprises the NYSE BQT data feed. Any other market data recipient of the six BBO and Trades feeds would be able, if they chose, to create a data feed with the same information as the NYSE BQT data feed and distribute it to their clients on a level-playing field with respect to latency and cost as compared to the NYSE’s product.11 mstockstill on DSK4VPTVN1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 12 and Rule 19b–4(f)(6) thereunder.13 Because the proposed rule change does not: (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(6)(iii) thereunder. A proposed rule change filed under Rule 19b–4(f)(6) 14 normally does not become operative prior to 30 days after the date of the filing. However, Rule 10 78 U.S.C. 78f(b)(8). NYSE BQT Approval Order, supra note 4. 12 15 U.S.C. 78s(b)(3)(A)(iii). 13 17 CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6). 11 See VerDate Sep<11>2014 18:14 Nov 16, 2015 Jkt 238001 19b–4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative upon filing. The Exchange notes that the NYSE BQT data feed has been the subject of prior rule filings and believes that waiver of the 30-day operative delay will provide more transparency and consistency with respect to the description of the NYSE BQT data feed. Based on the foregoing, the Commission believes that the waiver of the operative delay is appropriate and is consistent with the protection of investors and the public interest.15 The Commission hereby grants the waiver and designates the proposal operative upon filing. At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) 16 of the Act 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: 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–2015–92 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–NYSEMKT–2015–92. This file number should be included on the subject line if email is used. To help the 15 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 16 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 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 Section, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be available for inspection and copying at the NYSE’s principal office and on its Internet Web site at www.nyse.com. 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–2015–92 and should be submitted on or before December 8, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–29212 Filed 11–16–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76422; File No. SR–NYSE– 2015–45] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Constituting a Stated Interpretation With Respect to the Meaning, Administration, and Enforcement of Rule 28 November 10, 2015. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that October 28, 17 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 E:\FR\FM\17NON1.SGM 17NON1 Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices 2015, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘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 constitute a stated interpretation with respect to the meaning, administration, and enforcement of Rule 28. 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. mstockstill on DSK4VPTVN1PROD with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes a rule change that constitutes a stated interpretation with respect to the meaning, administration, and enforcement of Rule 28 (‘‘Rule 28’’). The Exchange is not proposing any changes to the text of the current version of Rule 28. Approved in 2003,4 Rule 28 describes and provides the basis for the Exchange’s practice of conducting fingerprint-based criminal record checks. The Rule permits the Exchange to obtain fingerprints of prospective and current employees, temporary personnel, independent contractors and service providers of the Exchange and its principal subsidiaries; submit those fingerprints to the Attorney General of 4 See Securities Exchange Act Release No. 4811 (July 1, 2003), 68 FR 41033 (July 9, 2003) (SR– NYSE–2003–18). VerDate Sep<11>2014 18:14 Nov 16, 2015 Jkt 238001 the United States or his or her designee (‘‘Attorney General’’) for identification and processing; and receive criminal history record information from the Attorney General for evaluation and use, in accordance with applicable law, in enhancing the security of the facilities, systems, data, and/or records of the Exchange and its principal subsidiaries. The Exchange utilizes a Live-Scan 5 electronic system to capture and transmit fingerprints directly to the Federal Bureau of Investigation (‘‘FBI’’), which maintains on behalf of the Attorney General a database of fingerprint-based criminal history records. The capture and transmittal function, and corresponding receipt of criminal history information from the FBI, is handled directly by Exchange personnel. The Exchange intends to engage an FBI-approved ‘‘Channel Partner’’ 6 to maintain and operate, on behalf of the Exchange, a Live-Scan and/ or other electronic system(s) for the submission of fingerprints to the FBI; to receive and maintain criminal history record information from the FBI; and to disseminate such information, through secure systems, to a limited set of approved reviewing officials within the Exchange and its affiliates. The Exchange believes Rule 28 allows for the retention of a Channel Partner for these purposes.7 The foregoing interpretation is consistent with the Exchange’s authority under Section 17(f)(2) of the Act, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 5 Live-Scan refers to the process of capturing fingerprints directly into a digitized format as opposed to traditional ink and paper methods. LiveScan technology captures and transfers images to a central location and/or interface for identification processing. The Exchange has used Live-Scan technology for fingerprinting since Rule 28 was approved in 2003. 6 FBI-approved Channel Partners receive the fingerprint submission and relevant data, collect the associated fee(s), electronically forward the fingerprint submission with the necessary information to the FBI Criminal Justice Information Services Division (‘‘CJIS’’) for a national Criminal History Summary check, and receive the electronic summary check result for dissemination to the authorized employer entity. See Securities Exchange Act Release No. 71066 (December 12, 2013), 78 FR 76667 (December 18, 2013) (SR–ISE– 2013–66). 7 Rule 28 allows the Exchange to obtain fingerprints from service providers, including employees of affiliates of the Exchange. See Chicago Board Options Exchange, Incorporated (‘‘CBOE’’) Rule 15.10; Securities Exchange Act Release No. 69496 (May 2, 2013), 78 FR 26671, 26671 (May 7, 2013) (SR–CBOE–2013–044) (CBOE conducts fingerprint-based criminal record checks of directors, officers and employees as well as, without limitation, ‘‘temporary personnel, independent contractors, consultants, vendors and service providers . . . who have or are anticipated to have access to facilities and records.’’). PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 71869 2010 (‘‘Dodd-Frank Act’’),8 which requires, inter alia, that employees of exchanges be fingerprinted and that exchanges ‘‘shall submit such fingerprints, or cause the same to be submitted, to the Attorney General of the United States for identification and appropriate processing.’’ The Exchange further notes that the proposed interpretation is consistent with the rules and procedures at other selfregulatory organizations (‘‘SROs’’).9 The Exchange accordingly believes that under Rule 28 and applicable statutes, the Exchange has the authority to engage an FBI-approved Channel Partner for some or all of the fingerprinting processes described in the Rule. The Exchange believes that this proposed interpretation would ensure the Exchange’s continued compliance with its Rules and applicable state and federal law.10 2. Statutory Basis The Exchange believes that the proposed rule change 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, because it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and protect investors and the public interest. The Exchange believes that the proposed stated interpretation would enable the Exchange to continue to identify and exclude persons with felony or misdemeanor conviction 8 See 15 U.S.C. 17(f)(2) [sic]; Dodd-Frank Act Sect. 929S. 9 See International Securities Exchange (‘‘ISE’’) Rule 1408; Chicago Board Options Exchange (‘‘CBOE’’) Rule 15.10. See generally Securities Exchange Act Release No. 71066 (December 12, 2013), 78 FR 76667, 76668 n. 12 (December 18, 2013) (SR–ISE–2013–66) (noting that ‘‘[a]n FBIapproved Channel Partner simply helps expedite the delivery of Criminal History Summary information on behalf of the FBI’’, and that the ‘‘process for making a request through an FBIapproved Channel Partner is consistent with FBI submission procedures’’). 10 Access to the FBI’s fingerprint-based database of criminal records is permitted only when authorized by law. Section 17(f)(2) of the Act explicitly directs the Attorney General to provide SROs designated by the Commission (e.g., the Exchange) with access to such criminal history record information. Further, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Section 17(f)(2) specifically requires, inter alia, that employees of national securities exchanges be fingerprinted. New York’s General Business Law also requires SROs to fingerprint employees ‘‘as a condition of employment,’’ as well as certain non-employee service providers. N.Y. Gen. Bus. Law § 359-e (McKinney). 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(5). E:\FR\FM\17NON1.SGM 17NON1 71870 Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices records that may pose a threat to the safety of Exchange personnel or the security of facilities and records, thereby enhancing business continuity, workplace safety and the security of the Exchange’s operations and helping to protect investors and the public interest. Continuing to run fingerprint-based background checks is imperative for the Exchange and its affiliates, as this process helps to identify persons with criminal history records who may pose a threat to the safety of Exchange personnel and/or the security of Exchange facilities and records. This identification and screening process thus enhances business continuity, workplace safety, and the security of the Exchange’s operations. The use of an FBI-approved Channel Partner in some or all phases of this process is consistent with Rule 28 and applicable state and federal law, and in furtherance of the important objectives described herein. Additionally, the use of a Channel Partner is consistent with the fingerprinting method currently employed by other SROs.13 For all these reasons, the proposal is also designed to protect investors as well as the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change would enhance the security of the Exchange’s facilities and records without adding any burden on market participants and allow the Exchange continued compliance with its fingerprinting rules and with Section 17(f)(2) of the Act as amended by the Dodd-Frank Act.14 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. mstockstill on DSK4VPTVN1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 15 and Rule 19b–4(f)(1) 16 thereunder. The proposed rule change effects a change that constitutes a stated 13 See note 9, supra. Section 929S of the Dodd-Frank Act. 15 15 U.S.C. 78s(b)(3)(A). 16 17 CFR 240.19b–4(f)(6). 14 See VerDate Sep<11>2014 18:14 Nov 16, 2015 Jkt 238001 policy, practice or interpretation with respect to the meaning, administration, or enforcement of an existing rule. 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 will 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: 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– NYSE–2015–45 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–NYSE–2015–45. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between 10 a.m. and 3 p.m. Copies of the filing will also be available for inspection and copying at the NYSE’s principal office and on its PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 Internet Web site at www.nyse.com. 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–NYSE–2015–45 and should be submitted on or before December 8, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–29228 Filed 11–16–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold a Closed Meeting on Thursday, November 19, 2015 at 4 p.m. Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or her designee, has certified that, in her opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the scheduled matter at the Closed Meeting. Commissioner Stein, as duty officer, voted to consider the items listed for the Closed Meeting in closed session. The subject matter of the Closed Meeting will be: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; and Other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact the Office of the Secretary at (202) 551–5400. 17 17 E:\FR\FM\17NON1.SGM CFR 200.30–3(a)(12). 17NON1

Agencies

[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)]
[Notices]
[Pages 71868-71870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29228]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76422; File No. SR-NYSE-2015-45]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Constituting a Stated Interpretation With Respect to the Meaning, 
Administration, and Enforcement of Rule 28

November 10, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that October 28,

[[Page 71869]]

2015, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') filed 
with the Securities and Exchange Commission (the ``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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to constitute a stated interpretation with 
respect to the meaning, administration, and enforcement of Rule 28. 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 Exchange proposes a rule change that constitutes a stated 
interpretation with respect to the meaning, administration, and 
enforcement of Rule 28 (``Rule 28''). The Exchange is not proposing any 
changes to the text of the current version of Rule 28.
    Approved in 2003,\4\ Rule 28 describes and provides the basis for 
the Exchange's practice of conducting fingerprint-based criminal record 
checks. The Rule permits the Exchange to obtain fingerprints of 
prospective and current employees, temporary personnel, independent 
contractors and service providers of the Exchange and its principal 
subsidiaries; submit those fingerprints to the Attorney General of the 
United States or his or her designee (``Attorney General'') for 
identification and processing; and receive criminal history record 
information from the Attorney General for evaluation and use, in 
accordance with applicable law, in enhancing the security of the 
facilities, systems, data, and/or records of the Exchange and its 
principal subsidiaries.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 4811 (July 1, 2003), 
68 FR 41033 (July 9, 2003) (SR-NYSE-2003-18).
---------------------------------------------------------------------------

    The Exchange utilizes a Live-Scan \5\ electronic system to capture 
and transmit fingerprints directly to the Federal Bureau of 
Investigation (``FBI''), which maintains on behalf of the Attorney 
General a database of fingerprint-based criminal history records. The 
capture and transmittal function, and corresponding receipt of criminal 
history information from the FBI, is handled directly by Exchange 
personnel. The Exchange intends to engage an FBI-approved ``Channel 
Partner'' \6\ to maintain and operate, on behalf of the Exchange, a 
Live-Scan and/or other electronic system(s) for the submission of 
fingerprints to the FBI; to receive and maintain criminal history 
record information from the FBI; and to disseminate such information, 
through secure systems, to a limited set of approved reviewing 
officials within the Exchange and its affiliates. The Exchange believes 
Rule 28 allows for the retention of a Channel Partner for these 
purposes.\7\
---------------------------------------------------------------------------

    \5\ Live-Scan refers to the process of capturing fingerprints 
directly into a digitized format as opposed to traditional ink and 
paper methods. Live-Scan technology captures and transfers images to 
a central location and/or interface for identification processing. 
The Exchange has used Live-Scan technology for fingerprinting since 
Rule 28 was approved in 2003.
    \6\ FBI-approved Channel Partners receive the fingerprint 
submission and relevant data, collect the associated fee(s), 
electronically forward the fingerprint submission with the necessary 
information to the FBI Criminal Justice Information Services 
Division (``CJIS'') for a national Criminal History Summary check, 
and receive the electronic summary check result for dissemination to 
the authorized employer entity. See Securities Exchange Act Release 
No. 71066 (December 12, 2013), 78 FR 76667 (December 18, 2013) (SR-
ISE-2013-66).
    \7\ Rule 28 allows the Exchange to obtain fingerprints from 
service providers, including employees of affiliates of the 
Exchange. See Chicago Board Options Exchange, Incorporated 
(``CBOE'') Rule 15.10; Securities Exchange Act Release No. 69496 
(May 2, 2013), 78 FR 26671, 26671 (May 7, 2013) (SR-CBOE-2013-044) 
(CBOE conducts fingerprint-based criminal record checks of 
directors, officers and employees as well as, without limitation, 
``temporary personnel, independent contractors, consultants, vendors 
and service providers . . . who have or are anticipated to have 
access to facilities and records.'').
---------------------------------------------------------------------------

    The foregoing interpretation is consistent with the Exchange's 
authority under Section 17(f)(2) of the Act, as amended by the Dodd-
Frank Wall Street Reform and Consumer Protection Act of 2010 (``Dodd-
Frank Act''),\8\ which requires, inter alia, that employees of 
exchanges be fingerprinted and that exchanges ``shall submit such 
fingerprints, or cause the same to be submitted, to the Attorney 
General of the United States for identification and appropriate 
processing.'' The Exchange further notes that the proposed 
interpretation is consistent with the rules and procedures at other 
self-regulatory organizations (``SROs'').\9\
---------------------------------------------------------------------------

    \8\ See 15 U.S.C. 17(f)(2) [sic]; Dodd-Frank Act Sect. 929S.
    \9\ See International Securities Exchange (``ISE'') Rule 1408; 
Chicago Board Options Exchange (``CBOE'') Rule 15.10. See generally 
Securities Exchange Act Release No. 71066 (December 12, 2013), 78 FR 
76667, 76668 n. 12 (December 18, 2013) (SR-ISE-2013-66) (noting that 
``[a]n FBI-approved Channel Partner simply helps expedite the 
delivery of Criminal History Summary information on behalf of the 
FBI'', and that the ``process for making a request through an FBI-
approved Channel Partner is consistent with FBI submission 
procedures'').
---------------------------------------------------------------------------

    The Exchange accordingly believes that under Rule 28 and applicable 
statutes, the Exchange has the authority to engage an FBI-approved 
Channel Partner for some or all of the fingerprinting processes 
described in the Rule. The Exchange believes that this proposed 
interpretation would ensure the Exchange's continued compliance with 
its Rules and applicable state and federal law.\10\
---------------------------------------------------------------------------

    \10\ Access to the FBI's fingerprint-based database of criminal 
records is permitted only when authorized by law. Section 17(f)(2) 
of the Act explicitly directs the Attorney General to provide SROs 
designated by the Commission (e.g., the Exchange) with access to 
such criminal history record information. Further, as amended by the 
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, 
Section 17(f)(2) specifically requires, inter alia, that employees 
of national securities exchanges be fingerprinted. New York's 
General Business Law also requires SROs to fingerprint employees 
``as a condition of employment,'' as well as certain non-employee 
service providers. N.Y. Gen. Bus. Law Sec.  359-e (McKinney).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change 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, because it 
is designed to prevent fraudulent and manipulative acts and practices, 
promote just and equitable principles of trade, remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system, and protect investors and the public interest. The 
Exchange believes that the proposed stated interpretation would enable 
the Exchange to continue to identify and exclude persons with felony or 
misdemeanor conviction

[[Page 71870]]

records that may pose a threat to the safety of Exchange personnel or 
the security of facilities and records, thereby enhancing business 
continuity, workplace safety and the security of the Exchange's 
operations and helping to protect investors and the public interest.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Continuing to run fingerprint-based background checks is imperative 
for the Exchange and its affiliates, as this process helps to identify 
persons with criminal history records who may pose a threat to the 
safety of Exchange personnel and/or the security of Exchange facilities 
and records. This identification and screening process thus enhances 
business continuity, workplace safety, and the security of the 
Exchange's operations. The use of an FBI-approved Channel Partner in 
some or all phases of this process is consistent with Rule 28 and 
applicable state and federal law, and in furtherance of the important 
objectives described herein. Additionally, the use of a Channel Partner 
is consistent with the fingerprinting method currently employed by 
other SROs.\13\ For all these reasons, the proposal is also designed to 
protect investors as well as the public interest.
---------------------------------------------------------------------------

    \13\ See note 9, supra.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change 
would enhance the security of the Exchange's facilities and records 
without adding any burden on market participants and allow the Exchange 
continued compliance with its fingerprinting rules and with Section 
17(f)(2) of the Act as amended by the Dodd-Frank Act.\14\
---------------------------------------------------------------------------

    \14\ See Section 929S of the Dodd-Frank Act.
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \15\ and Rule 19b-4(f)(1) \16\ thereunder. The 
proposed rule change effects a change that constitutes a stated policy, 
practice or interpretation with respect to the meaning, administration, 
or enforcement of an existing rule.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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 will 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:

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-NYSE-2015-45 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-NYSE-2015-45. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between 10 a.m. and 3 
p.m. Copies of the filing will also be available for inspection and 
copying at the NYSE's principal office and on its Internet Web site at 
www.nyse.com. 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-
NYSE-2015-45 and should be submitted on or before December 8, 2015.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-29228 Filed 11-16-15; 8:45 am]
 BILLING CODE 8011-01-P
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