Submission for OMB Review; Comment Request, 23779-23780 [2016-09360]
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Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Notices
of Unicast End User those customers of
a Transmittal User (and customers of
Users’ customers) that send all orders to
a Floor broker for representation on the
Exchange is reasonable because it would
encourage providing liquidity on the
Exchange, thereby contributing to the
Exchange’s competitiveness with other
markets. In addition, the Exchange
believes that expanding the definition of
Affiliates and adding the definitions of
Multicast End User, Rebroadcasting
User, Unicast End User, and Transmittal
User to the Fee Schedules would make
such definitions accessible and
transparent and provide market
participants with clarity as to the
availability and application of the
proposed fees.
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if, for
example, they deem fee levels at a
particular venue to be excessive or if
they determine that another venue’s
products and services are more
competitive than on the Exchange. In
such an environment, the Exchange
must continually review, and consider
adjusting, the services it offers as well
as any corresponding fees and credits to
remain competitive with other
exchanges. For the reasons described
above, the Exchange believes that the
proposed rule change reflects this
competitive environment.
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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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission shall: (a) By order
approve or disapprove such proposed
rule change, or (b) institute proceedings
to determine whether the proposed rule
change should be 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.
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Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
23779
Submission for OMB Review;
Comment Request
• 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–
NYSEARCA–2016–19 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–NYSEARCA–2016–19. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
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–
NYSEARCA–2016–19, and should be
submitted on or before May 13, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–09322 Filed 4–21–16; 8:45 am]
BILLING CODE 8011–01–P
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CFR 200.30–3(a)(12).
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Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension:
Rule 606 of Regulation NMS, SEC File No.
270–489, OMB Control No. 3235–0541.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 606 of Regulation NMS (‘‘Rule
606’’) (17 CFR 242.606) under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et. seq.).
Rule 606 (formerly known as Rule
11Ac1–6) requires broker-dealers to
prepare and disseminate quarterly order
routing reports. Much of the information
needed to generate these reports already
should be collected by broker-dealers in
connection with their periodic
evaluations of their order routing
practices. Broker-dealers must conduct
such evaluations to fulfill the duty of
best execution that they owe their
customers.
The collection of information
obligations of Rule 606 apply to brokerdealers that route non-directed customer
orders in covered securities. The
Commission estimates that out of the
currently 4,240 broker-dealers that are
subject to the collection of information
obligations of Rule 606, clearing brokers
bear a substantial portion of the burden
of complying with the reporting and
recordkeeping requirements of Rule 606
on behalf of small to mid-sized
introducing firms. There currently are
approximately 185 clearing brokers. In
addition, there are approximately 81
introducing brokers that receive funds
or securities from their customers.
Because at least some of these firms also
may have greater involvement in
determining where customer orders are
routed for execution, they have been
included, along with clearing brokers, in
estimating the total burden of Rule 606.
The Commission staff estimates that
each firm significantly involved in order
routing practices incurs an average
burden of 40 hours to prepare and
disseminate a quarterly report required
by Rule 606, or a burden of 160 hours
E:\FR\FM\22APN1.SGM
22APN1
23780
Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
per year. With an estimated 266 1
broker-dealers significantly involved in
order routing practices, the total
industry-wide burden per year to
comply with the quarterly reporting
requirement in Rule 606 is estimated to
be 42,560 hours (160 × 266).
Rule 606 also requires broker-dealers
to respond to individual customer
requests for information on orders
handled by the broker-dealer for that
customer. Clearing brokers generally
bear the burden of responding to these
requests. The Commission staff
estimates that an average clearing broker
incurs an annual burden of 400 hours
(2000 responses × 0.2 hours/response) to
prepare, disseminate, and retain
responses to customers required by Rule
606. With an estimated 185 clearing
brokers subject to Rule 606, the total
industry-wide burden per year to
comply with the customer response
requirement in Rule 606 is estimated to
be 74,000 hours (185 × 400).
The collection of information
obligations imposed by Rule 606 are
mandatory. The responses will be
available to the public and will not be
kept confidential.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following Web site,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Pamela
Dyson, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o Remi Pavlik-Simon,
100 F Street NE., Washington, DC 20549
or by sending an email to: PRA_
Mailbox@sec.gov. Comments must be
submitted to OMB within 30 days of
this notice.
Dated: April 19, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–09360 Filed 4–21–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77640; File No. SR–
NYSEMKT–2016–15]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing of Proposed
Rule Change Establishing Fees
Relating to End Users and Amending
the Definition of ‘‘Affiliate,’’ as Well as
Amending the NYSE MKT Equities
Price List and the NYSE Amex Options
Fee Schedule To Reflect the Changes
April 18, 2016.
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, on April 4,
2016, NYSE MKT LLC (the ‘‘Exchange’’
or ‘‘NYSE MKT’’) 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 the Substance
of the Proposed Rule Change
The Exchange proposes to establish
fees relating to end users and amend the
definition of ‘‘affiliate,’’ as well as to
amend the co-location section of the
NYSE MKT Equities Price List (‘‘Price
List’’) and the NYSE Amex Options Fee
Schedule (‘‘Fee Schedule’’) to reflect the
changes. The Exchange proposes that
the changes be effective the first of the
month following approval by the
Securities and Exchange Commission
(‘‘Commission’’). The proposed 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,
1 15
1 185
clearing brokers + 81 introducing brokers =
266.
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U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Frm 00107
Fmt 4703
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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
The Exchange proposes to establish
fees relating to certain end users and
amend the definition of ‘‘affiliate,’’ as
well as to amend the co-location 4
section of its Price List and Fee
Schedule to reflect the changes. The
Exchange proposes that the changes be
effective the first of the month following
approval by the Securities and Exchange
Commission.
Information flows over existing
network connections in two formats:
• Multicast format, which is a format
in which information is sent one-way
from the Exchange to multiple
recipients at once, like a radio
broadcast; and
• Unicast format, which is a format
that allows one-to-one communication,
similar to a phone line, in which
information is sent to and from the
Exchange.
Fees for Rebroadcasting Users Related to
Their Multicast End Users
As a general matter, market data is
broadcast to Users 5 in multicast format.
Users can rebroadcast data they receive
in multicast format to their customers 6
if they choose. The Exchange proposes
to add to its co-location Price List and
Fee Schedule definitions of a
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in 2010. See Securities Exchange
Act Release No. 62961 (September 21, 2010), 75 FR
59299 (September 27, 2010) (SR–NYSEAmex–2010–
80). The Exchange operates a data center in
Mahwah, New Jersey (the ‘‘data center’’) from
which it provides co-location services to Users.
5 For purposes of the Exchange’s co-location
services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
from the Exchange. See Securities Exchange Act
Release No. 76009 (September 29, 2015), 80 FR
60213 (October 5, 2015) (SR–NYSEMKT–2015–67).
As specified in the Price List and Fee Schedule, a
User that incurs co-location fees for a particular colocation service pursuant thereto would not be
subject to co-location fees for the same co-location
service charged by the Exchange’s affiliates New
York Stock Exchange LLC and NYSE Arca, Inc. See
Securities Exchange Act Release No. 70176 (August
13, 2013), 78 FR 50471 (August 19, 2013) (SR–
NYSEMKT–2013–67.
6 As used in the context of the proposed fees, the
term ‘‘customer’’ refers to any person who has a
contractual relationship with a User or the customer
of a User for the provision to that customer of
unicast or multicast services. A customer of a User
may include another User or a ‘‘Hosted Customer,’’
as that term is defined in the Price List and Fee
Schedule.
E:\FR\FM\22APN1.SGM
22APN1
Agencies
[Federal Register Volume 81, Number 78 (Friday, April 22, 2016)]
[Notices]
[Pages 23779-23780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09360]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.
Extension:
Rule 606 of Regulation NMS, SEC File No. 270-489, OMB Control
No. 3235-0541.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and
Exchange Commission (``Commission'') has submitted to the office of
Management and Budget (``OMB'') a request for approval of extension of
the previously approved collection of information provided for in Rule
606 of Regulation NMS (``Rule 606'') (17 CFR 242.606) under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et. seq.).
Rule 606 (formerly known as Rule 11Ac1-6) requires broker-dealers
to prepare and disseminate quarterly order routing reports. Much of the
information needed to generate these reports already should be
collected by broker-dealers in connection with their periodic
evaluations of their order routing practices. Broker-dealers must
conduct such evaluations to fulfill the duty of best execution that
they owe their customers.
The collection of information obligations of Rule 606 apply to
broker-dealers that route non-directed customer orders in covered
securities. The Commission estimates that out of the currently 4,240
broker-dealers that are subject to the collection of information
obligations of Rule 606, clearing brokers bear a substantial portion of
the burden of complying with the reporting and recordkeeping
requirements of Rule 606 on behalf of small to mid-sized introducing
firms. There currently are approximately 185 clearing brokers. In
addition, there are approximately 81 introducing brokers that receive
funds or securities from their customers. Because at least some of
these firms also may have greater involvement in determining where
customer orders are routed for execution, they have been included,
along with clearing brokers, in estimating the total burden of Rule
606.
The Commission staff estimates that each firm significantly
involved in order routing practices incurs an average burden of 40
hours to prepare and disseminate a quarterly report required by Rule
606, or a burden of 160 hours
[[Page 23780]]
per year. With an estimated 266 \1\ broker-dealers significantly
involved in order routing practices, the total industry-wide burden per
year to comply with the quarterly reporting requirement in Rule 606 is
estimated to be 42,560 hours (160 x 266).
---------------------------------------------------------------------------
\1\ 185 clearing brokers + 81 introducing brokers = 266.
---------------------------------------------------------------------------
Rule 606 also requires broker-dealers to respond to individual
customer requests for information on orders handled by the broker-
dealer for that customer. Clearing brokers generally bear the burden of
responding to these requests. The Commission staff estimates that an
average clearing broker incurs an annual burden of 400 hours (2000
responses x 0.2 hours/response) to prepare, disseminate, and retain
responses to customers required by Rule 606. With an estimated 185
clearing brokers subject to Rule 606, the total industry-wide burden
per year to comply with the customer response requirement in Rule 606
is estimated to be 74,000 hours (185 x 400).
The collection of information obligations imposed by Rule 606 are
mandatory. The responses will be available to the public and will not
be kept confidential.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
The public may view background documentation for this information
collection at the following Web site, www.reginfo.gov. Comments should
be directed to: (i) Desk Officer for the Securities and Exchange
Commission, Office of Information and Regulatory Affairs, Office of
Management and Budget, Room 10102, New Executive Office Building,
Washington, DC 20503, or by sending an email to:
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or by sending an
email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within
30 days of this notice.
Dated: April 19, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-09360 Filed 4-21-16; 8:45 am]
BILLING CODE 8011-01-P