Proposed Collection; Comment Request, 26294-26295 [2016-10110]
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26294
Federal Register / Vol. 81, No. 84 / Monday, May 2, 2016 / Notices
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Exchange Act.
The Exchange believes that the
proposed rule change will facilitate the
listing and trading of an additional type
of actively-managed exchange-traded
product that will enhance competition
among market participants, to the
benefit of investors and the marketplace.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
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
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will: (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.
Comments may be submitted by any
of the following methods:
srobinson on DSK5SPTVN1PROD with NOTICES
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–
NASDAQ–2016–056 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–NASDAQ–2016–056. 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
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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 the
filing also will be available for
inspection and copying at the principal
office of Nasdaq. 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–
NASDAQ–2016–056 and should be
submitted on or before May 23, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.41
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–10154 Filed 4–29–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; 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 302 SEC File No. 270–453,
OMB Control No. 3235–0510
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 302 (17 CFR
242.302) of Regulation ATS (17 CFR
242.300 et seq.) under the Securities and
Exchange Act of 1934 (‘‘Act’’) (15 U.S.C.
78a et seq.). The Commission plans to
submit this existing collection of
information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
41 17
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CFR 200.30–3(a)(12).
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Regulation ATS sets forth a regulatory
regime for ‘‘alternative trading systems’’
(‘‘ATSs’’), which are entities that carry
out exchange functions but which are
not required to register as national
securities exchanges under the Act. In
lieu of exchange registration, an ATS
can instead opt to register with the
Commission as a broker-dealer and, as
a condition to not having to register as
an exchange, must instead comply with
Regulation ATS. Rule 302 of Regulation
ATS (17 CFR 242.302) describes the
recordkeeping requirements for ATSs.
Under Rule 302, ATSs are required to
make a record of subscribers to the ATS,
daily summaries of trading in the ATS,
and time-sequenced records of order
information in the ATS.
The information required to be
collected under Rule 302 should
increase the abilities of the Commission,
state securities regulatory authorities,
and the self-regulatory organizations to
ensure that ATSs are in compliance
with Regulation ATS as well as other
applicable rules and regulations. If the
information is not collected or collected
less frequently, the regulators would be
limited in their ability to comply with
their statutory obligations, provide for
the protection of investors, and promote
the maintenance of fair and orderly
markets.
Respondents consist of ATSs that
choose to register as broker-dealers and
comply with the requirements of
Regulation ATS. There are currently 84
respondents. These respondents will
spend approximately 3,780 hours per
year (84 respondents at 45 burden
hours/respondent) to comply with the
recordkeeping requirements of Rule 302.
At an average cost per burden hour of
$65, the resultant total related internal
cost of compliance for these
respondents is $245,700 per year (3,780
burden hours multiplied by $65/hour).
Written comments are invited on (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
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Federal Register / Vol. 81, No. 84 / Monday, May 2, 2016 / Notices
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid OMB
control number.
Please direct your written comments
to: Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: April 26, 2016.
Robert E. Errett,
Deputy Secretary.
[FR Doc. 2016–10110 Filed 4–29–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77711; File No. SR–CHX–
2016–01]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Order
Approving a Proposed Rule Change To
Adopt and Amend Rules To Permit the
Exchange To Initiate CHX SNAP Cycles
April 26, 2016.
I. Introduction
On February 26, 2016, the Chicago
Stock Exchange, Inc. (‘‘CHX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend the functionality of the
Exchange’s Sub-second Non-displayed
Auction Process (‘‘SNAP’’) to permit the
Exchange to initiate the SNAP when
certain criteria are met. The proposed
rule change was published for comment
in the Federal Register on March 15,
2016.3 The Commission did not receive
any comment letters regarding the
proposed rule change. This order
approves the proposed rule change.
srobinson on DSK5SPTVN1PROD with NOTICES
II. Overview of the Proposal
The SNAP is designed to facilitate the
bulk trading of a security within the
Exchange’s matching system (‘‘Matching
System’’). The SNAP is a fully-hidden,
on-demand auction for a security that,
under the Exchange’s current rules, may
be initiated only by the Exchange’s
Participants 4 and may occur only
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 77331
(March 9, 2016), 81 FR 13857 (‘‘Notice’’).
4 Article 1, Rule 1 of CHX’s Rules defines the term
‘‘Participant.’’
2 17
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during the Exchange’s regular trading
session. During the stages of a SNAP
(‘‘CHX SNAP Cycle’’), the Exchange
temporarily suspends automated trading
on the Exchange for the security subject
to the SNAP. At the conclusion of a
CHX SNAP Cycle, the Exchange
transitions back to automated trading for
the subject security. The SNAP Cycle
has the following five stages, which are
set forth in CHX Article 18, Rule 1: 5 (1)
Initiating the SNAP; (2) SNAP Order
Acceptance Period; (3) Pricing and
Satisfaction Period; (4) Order Matching
Period; and (5) Transition to Open
Trading State.6
Under the Exchange’s current rules,
only a Participant may initiate the
SNAP Cycle by submitting a valid limit
order marked Start SNAP.7 To initiate a
SNAP Cycle, a Start SNAP order must
meet certain size,8 price,9 and timing
requirements.10 Orders marked with a
SNAP Auction Only modifier (SNAP
AOO—Day, SNAP AOO—One and
5 See generally Securities Exchange Act Release
No. 76087 (October 6, 2015), 80 FR 61540 (SR–
CHX–2015–03) (‘‘Approval Order’’) (order
approving the adoption of the SNAP rules on the
Exchange). The approved rule changes governing
the SNAP are not yet operative and will become
operative upon two weeks’ notice by the Exchange
to its Participants. See Notice, supra note 3, 81 FR
at 13857, n.3.
6 Open Trading State means the period of time
during the regular trading session when orders are
eligible for automatic execution on the Exchange.
See CHX Article 1, Rule 1(qq).
7 See CHX Article 1, Rule 2(h)(1) and CHX Article
18, Rule 1(b)(1).
8 To initiate a SNAP Cycle, a Start SNAP order
must be for (a) at least 2,500 shares and have a
minimum aggregate notional value of $250,000 or
(b) at least 20,000 shares with no minimum
aggregate notional value requirement; provided,
however, that certain issues specified in the rule
may have special minimum size requirements. See
CHX Article 1, Rule 2(h)(1)(A)(i).
9 To initiate a SNAP Cycle, the limit price of a
buy (sell) Start SNAP Order must be priced at or
through the National Best Offer (National Best Bid)
at the time the order was received by the Matching
System. If the National Best Bid and Offer
(‘‘NBBO’’) is crossed or a two-sided NBBO does not
exist at the time the limit order marked Start SNAP
is received by the Matching System, the limit order
marked Start SNAP would not initiate a SNAP
Cycle. A limit order marked Start SNAP and Sell
Short, as defined under CHX Article 1, Rule
2(b)(3)(E), for a covered security subject to short
sale price test restriction, may not initiate a SNAP
Cycle and would be cancelled. See CHX Article 1,
Rule 2(h)(1)(A)(ii).
10 A Start SNAP order will initiate a SNAP Cycle
only if it is received during the Exchange’s regular
trading session; provided, however, that it will not
initiate a SNAP Cycle if it is received (a) within five
minutes of the first two-sided quote in the subject
security having been received by the Exchange from
the primary market disseminated after either the
beginning of the Exchange’s regular trading session
or a trading halt or pause that required the
Exchange to suspend trading in the subject security;
(b) within five minutes of the end of the regular
trading session; (c) during a SNAP Cycle or (d)
within one minute after the completion of the
previous SNAP Cycle. See CHX Article 1, Rule
2(h)(1)(A)(iii).
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26295
Done, SNAP AOO- Pegged) that are
received during Open Trading State are
queued in the SNAP Auction Only
Order (‘‘AOO’’) Queue and are eligible
for execution only during a SNAP
Cycle.11
In the instant proposed rule change,
the Exchange proposes to permit the
Exchange to initiate a SNAP Cycle,
under certain circumstances, in the
absence of a Start SNAP order. The
Exchange would conduct pro forma
SNAP reviews of the contents of the
CHX book, SNAP AOO Queue, and
Protected Quotations of external
markets for each SNAP-eligible security,
consecutively and continuously in a
preset order,12 and would initiate a
SNAP Cycle for a security if a review
projects that the aggregate number of
executions would satisfy certain
minimum size and notional value
requirements, as applicable. In
conducting the pro forma SNAP review,
the Exchange would take a market
snapshot of the Protected Quotations of
external markets in the subject security
and calculate a pro forma SNAP Price
to determine: (1) Whether the projected
execution size (‘‘PES’’) at the pro forma
SNAP Price is equal to or greater than
the corresponding minimum PES; and
(2) whether the PES within the
Matching System at the pro forma SNAP
Price would be equal to or greater than
80% of the corresponding minimum
PES. The minimum PES for an
Exchange-initiated SNAP is either: (1)
2,500 Shares with a minimum aggregate
notional value of $250,000 based on the
midpoint of the NBBO ascertained from
the market snapshot; or (2) 20,000
shares with no minimum aggregate
notional value requirement; provided,
however, that the PES for Berkshire
Hathaway, Inc. (BRK–A) would be a flat
100 shares.
There would be restrictions on when
the Exchange may initiate a SNAP
Cycle. Proposed Rule 1A(c) prohibits
the Exchange from initiating a SNAP
Cycle:
(1) Within five minutes of the first
two-sided quote in the subject security
having been received by the Exchange
from the primary market disseminated
after either the beginning of the regular
trading session or a trading halt, pause
or suspension that required the
Exchange to suspend trading in the
subject security;
(2) within five minutes of the end of
the regular trading session;
11 See CHX Article 20, Rule 8(b)(2)(A) and CHX
Article 18, Rule 1(b)(2)(A)(i).
12 The Exchange represents that it will not modify
this procedure absent an approved filing pursuant
to Rule 19b–4 under the Act. See Notice, supra note
3, 81 FR at 13858, n.21.
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Agencies
[Federal Register Volume 81, Number 84 (Monday, May 2, 2016)]
[Notices]
[Pages 26294-26295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10110]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; 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 302 SEC File No. 270-453, OMB Control No. 3235-0510
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and
Exchange Commission (``Commission'') is soliciting comments on the
existing collection of information provided for in Rule 302 (17 CFR
242.302) of Regulation ATS (17 CFR 242.300 et seq.) under the
Securities and Exchange Act of 1934 (``Act'') (15 U.S.C. 78a et seq.).
The Commission plans to submit this existing collection of information
to the Office of Management and Budget (``OMB'') for extension and
approval.
Regulation ATS sets forth a regulatory regime for ``alternative
trading systems'' (``ATSs''), which are entities that carry out
exchange functions but which are not required to register as national
securities exchanges under the Act. In lieu of exchange registration,
an ATS can instead opt to register with the Commission as a broker-
dealer and, as a condition to not having to register as an exchange,
must instead comply with Regulation ATS. Rule 302 of Regulation ATS (17
CFR 242.302) describes the recordkeeping requirements for ATSs. Under
Rule 302, ATSs are required to make a record of subscribers to the ATS,
daily summaries of trading in the ATS, and time-sequenced records of
order information in the ATS.
The information required to be collected under Rule 302 should
increase the abilities of the Commission, state securities regulatory
authorities, and the self-regulatory organizations to ensure that ATSs
are in compliance with Regulation ATS as well as other applicable rules
and regulations. If the information is not collected or collected less
frequently, the regulators would be limited in their ability to comply
with their statutory obligations, provide for the protection of
investors, and promote the maintenance of fair and orderly markets.
Respondents consist of ATSs that choose to register as broker-
dealers and comply with the requirements of Regulation ATS. There are
currently 84 respondents. These respondents will spend approximately
3,780 hours per year (84 respondents at 45 burden hours/respondent) to
comply with the recordkeeping requirements of Rule 302. At an average
cost per burden hour of $65, the resultant total related internal cost
of compliance for these respondents is $245,700 per year (3,780 burden
hours multiplied by $65/hour).
Written comments are invited on (a) whether the proposed collection
of information is necessary for the proper performance of the functions
of the Commission, including whether the information shall have
practical utility; (b) the accuracy of the Commission's estimates of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information collected;
and (d) ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication.
[[Page 26295]]
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number.
Please direct your written comments to: Pamela Dyson, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email
to: PRA_Mailbox@sec.gov.
Dated: April 26, 2016.
Robert E. Errett,
Deputy Secretary.
[FR Doc. 2016-10110 Filed 4-29-16; 8:45 am]
BILLING CODE 8011-01-P