Corrected Order Extending a Temporary Exemption From Compliance With Rules 13n-1 to 13n-12 Under the Securities Exchange Act of 1934, 45336-45337 [2016-16541]
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45336
Federal Register / Vol. 81, No. 134 / Wednesday, July 13, 2016 / Notices
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. The proposal
extends existing pilots that apply to all
Exchange members, and enables the
Exchange to be competitive in respect of
other option exchanges that have similar
programs.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 15 and
subparagraph (f)(6) of Rule 19b–4
thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii),18 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange requested that the
Commission waive the 30-day operative
delay. The Exchange stated that the
proposed rule change does not involve
any substantive changes to the
Exchange’s Rules and only seeks to
extend the previously approved PRISM
pilot. The Exchange also stated that the
extension will ensure fair competition
among exchanges by allowing the
Exchange to continue with this pilot
similar to other options exchanges that
operate auctions. Finally, the Exchange
stated that the waiver is consistent with
the protection of investors and the
jstallworth on DSK7TPTVN1PROD with NOTICES
15 15
U.S.C. 78s(b)(3)(a).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
16 17
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public interest because it will permit the
PRISM pilot to continue without
interruption and will allow the
Exchange to gather more information in
connection with the pilot.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the PRISM pilot to continue
uninterrupted, thereby avoiding any
potential investor confusion that could
result from a temporary interruption in
the pilot. Therefore, the Commission
designates the proposed rule change to
be operative on July 18, 2016.19
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.
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:
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 the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BX–
2016–038 and should be submitted on
or before August 3, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Brent J. Fields,
Secretary.
[FR Doc. 2016–16491 Filed 7–12–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–78215A]
• 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–
BX–2016–038 on the subject line.
Corrected Order Extending a
Temporary Exemption From
Compliance With Rules 13n–1 to 13n–
12 Under the Securities Exchange Act
of 1934
June 30, 2016.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BX–2016–038. 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
19 For purposes only of waiving the operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
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I. Introduction
On March 18, 2016, under its
authority in section 36 of the Securities
Exchange Act of 1934 (‘‘Exchange Act’’),
the Securities and Exchange
Commission (‘‘Commission’’) granted a
temporary exemption from compliance
with Rules 13n–1 to 13n–12 (‘‘SDR
Rules’’) until June 30, 2016. The
Commission also granted an extension
of the exemptions from Exchange Act
sections 13(n)(5)(D)(i), 13(n)(5)(F),
13(n)(5)(G), 13(n)(5)(H), 13(n)(7)(A),
13(n)(7)(B), 13(n)(7)(C) and 29(b)
provided in the DFA Effective Date
Order 1 (‘‘SDR Relief’’), as described in
the Commission’s March 18, 2016 order,
20 17
CFR 200.30–3(a)(12).
Temporary Exemptions and Other
Temporary Relief, Together with Information on
Compliance Dates for New Provisions of the
Exchange Act Applicable to Security-Based Swaps,
Exchange Act Release No. 64678 (June 15, 2011), 76
FR 36287 (June 22, 2011) (the ‘‘DFA Effective Date
Order’’).
1 See
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13JYN1
Federal Register / Vol. 81, No. 134 / Wednesday, July 13, 2016 / Notices
such that the SDR Relief will expire on
the earlier of (1) the date the
Commission grants registration to an
SDR and (2) June 30, 2016.2 The
Commission granted the exemptions to
help facilitate the potential submission
of any SDR applications at the time.
Since March 18, 2016, two entities
have filed applications to register with
the Commission as SDRs.3 To allow the
Commission additional time to review
these applications prior to the
compliance date for the SDR Rules and
the expiration of the SDR Relief, the
Commission is extending the
exemptions granted in the March 18,
2016 order.
jstallworth on DSK7TPTVN1PROD with NOTICES
II. Discussion
The SDR Rules Release 4 states that
SDRs were required to be in compliance
with the SDR Rules by March 18, 2016.
The SDR Rules Release also notes that,
absent an exemption, any SDR must be
registered with the Commission and in
compliance with the federal securities
laws and the rules and regulations
thereunder (including the applicable
Dodd-Frank Act provisions and all of
the SDR Rules) by March 18, 2016.5
Since March 18, 2016, two entities
have filed applications to register with
the Commission as SDRs. ICE Trade
Vault, LLC (‘‘ICE Trade Vault’’) filed
with the Commission a Form SDR
seeking registration as an SDR on March
29, 2016 and amended that form on
April 18, 2016. The Commission’s
notice of ICE Trade Vault’s application
for registration as an SDR was published
in the Federal Register on April 28,
2016.6 DTCC Data Repository (U.S.) LLC
(‘‘DDR’’) filed with the Commission a
Form SDR seeking registration as an
SDR on April 6, 2016 and amended that
form on April 25, 2016. The
Commission’s notice of DDR’s
application for registration as an SDR
was published in the Federal Register
on July 7, 2016.7 Rule 13n–1(c) provides
that, within 90 days of the date of the
2 See Exchange Act Release No. 77400 (Mar. 18,
2016), 81 FR 15599 (Mar. 23, 2016) (‘‘SDR Section
36 Order’’).
3 See Exchange Act Release No. 77699 (Apr. 22,
2016), 81 FR 25475 (Apr. 28, 2016) (‘‘ICE Trade
Vault Notice’’) and Exchange Act Release No. 34–
78216 (June 30, 2016), 81 FR 44379 (July 7, 2016)
(‘‘DDR Notice’’).
4 See Exchange Act Release No. 74246 (Feb. 11,
2015), 80 FR 14438 (Mar. 19, 2015) (‘‘SDR Rules
Release’’).
5 See id., 80 FR at 14456. The SDR Rules Release
also notes that all exemptions that the Commission
provided in a previous release, including the
exemption to provisions in Exchange Act Section
13(n), will expire on the March 18, 2016
compliance date. See id. (discussing the DFA
Effective Date Order).
6 See ICE Trade Vault Notice.
7 See DDR Notice.
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publication of notice of the filing of an
application for registration (or within
such longer period as to which the
applicant consents), the Commission
will either grant the registration by
order or institute proceedings to
determine whether registration should
be granted or denied.
Subject to certain exceptions, section
36 of the Exchange Act 8 authorizes the
Commission, by rule, regulation, or
order, to exempt, either conditionally or
unconditionally, any person, security,
or transaction, or any class or classes of
persons, securities, or transactions, from
any provision or provisions of the
Exchange Act or any rule or regulation
thereunder, to the extent that such
exemption is necessary or appropriate
in the public interest, and is consistent
with the protection of investors. The
Commission finds that it is necessary
and appropriate in the public interest,
and consistent with the protection of
investors, to grant a temporary
exemption from compliance with the
SDR Rules and an extension of the SDR
Relief. The applications filed by ICE
Trade Vault and DDR are the first SDR
applications submitted to the
Commission and therefore present
issues of first impression for the
Commission’s consideration. Therefore,
to allow the Commission additional
time prior to the compliance date for the
SDR Rules and the expiration of the
SDR Relief to review the applications
and consider issues related to the first
applications for registration of SDRs, the
Commission hereby grants, pursuant to
Section 36 of the Exchange Act, a
temporary exemption from compliance
with the SDR Rules and an extension of
the SDR Relief until October 5, 2016,
which is 90 days from publication of
notice of DDR’s application for
registration as a SDR.
By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2016–16541 Filed 7–12–16; 8:45 am]
BILLING CODE 8011–01–P
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45337
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78245; File No. SR–Phlx–
2016–58]
Self-Regulatory Organizations;
NASDAQ PHLX LLC; Notice of Filing of
Proposed Rule Change To Adopt Limit
Order Protection
July 7, 2016.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 24,
2016, NASDAQ PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NASDAQ PSX Rule 3307, entitled
‘‘Processing of Orders’’ to adopt a Limit
Order Protection or ‘‘LOP’’ for members
accessing PSX.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.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 aspects 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 adopt a
new mechanism to protect against
1 15
8 15
U.S.C. 78mm.
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2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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]]>Agencies
[Federal Register Volume 81, Number 134 (Wednesday, July 13, 2016)]
[Notices]
[Pages 45336-45337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16541]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78215A]
Corrected Order Extending a Temporary Exemption From Compliance
With Rules 13n-1 to 13n-12 Under the Securities Exchange Act of 1934
June 30, 2016.
I. Introduction
On March 18, 2016, under its authority in section 36 of the
Securities Exchange Act of 1934 (``Exchange Act''), the Securities and
Exchange Commission (``Commission'') granted a temporary exemption from
compliance with Rules 13n-1 to 13n-12 (``SDR Rules'') until June 30,
2016. The Commission also granted an extension of the exemptions from
Exchange Act sections 13(n)(5)(D)(i), 13(n)(5)(F), 13(n)(5)(G),
13(n)(5)(H), 13(n)(7)(A), 13(n)(7)(B), 13(n)(7)(C) and 29(b) provided
in the DFA Effective Date Order \1\ (``SDR Relief''), as described in
the Commission's March 18, 2016 order,
[[Page 45337]]
such that the SDR Relief will expire on the earlier of (1) the date the
Commission grants registration to an SDR and (2) June 30, 2016.\2\ The
Commission granted the exemptions to help facilitate the potential
submission of any SDR applications at the time.
---------------------------------------------------------------------------
\1\ See Temporary Exemptions and Other Temporary Relief,
Together with Information on Compliance Dates for New Provisions of
the Exchange Act Applicable to Security-Based Swaps, Exchange Act
Release No. 64678 (June 15, 2011), 76 FR 36287 (June 22, 2011) (the
``DFA Effective Date Order'').
\2\ See Exchange Act Release No. 77400 (Mar. 18, 2016), 81 FR
15599 (Mar. 23, 2016) (``SDR Section 36 Order'').
---------------------------------------------------------------------------
Since March 18, 2016, two entities have filed applications to
register with the Commission as SDRs.\3\ To allow the Commission
additional time to review these applications prior to the compliance
date for the SDR Rules and the expiration of the SDR Relief, the
Commission is extending the exemptions granted in the March 18, 2016
order.
---------------------------------------------------------------------------
\3\ See Exchange Act Release No. 77699 (Apr. 22, 2016), 81 FR
25475 (Apr. 28, 2016) (``ICE Trade Vault Notice'') and Exchange Act
Release No. 34-78216 (June 30, 2016), 81 FR 44379 (July 7, 2016)
(``DDR Notice'').
---------------------------------------------------------------------------
II. Discussion
The SDR Rules Release \4\ states that SDRs were required to be in
compliance with the SDR Rules by March 18, 2016. The SDR Rules Release
also notes that, absent an exemption, any SDR must be registered with
the Commission and in compliance with the federal securities laws and
the rules and regulations thereunder (including the applicable Dodd-
Frank Act provisions and all of the SDR Rules) by March 18, 2016.\5\
---------------------------------------------------------------------------
\4\ See Exchange Act Release No. 74246 (Feb. 11, 2015), 80 FR
14438 (Mar. 19, 2015) (``SDR Rules Release'').
\5\ See id., 80 FR at 14456. The SDR Rules Release also notes
that all exemptions that the Commission provided in a previous
release, including the exemption to provisions in Exchange Act
Section 13(n), will expire on the March 18, 2016 compliance date.
See id. (discussing the DFA Effective Date Order).
---------------------------------------------------------------------------
Since March 18, 2016, two entities have filed applications to
register with the Commission as SDRs. ICE Trade Vault, LLC (``ICE Trade
Vault'') filed with the Commission a Form SDR seeking registration as
an SDR on March 29, 2016 and amended that form on April 18, 2016. The
Commission's notice of ICE Trade Vault's application for registration
as an SDR was published in the Federal Register on April 28, 2016.\6\
DTCC Data Repository (U.S.) LLC (``DDR'') filed with the Commission a
Form SDR seeking registration as an SDR on April 6, 2016 and amended
that form on April 25, 2016. The Commission's notice of DDR's
application for registration as an SDR was published in the Federal
Register on July 7, 2016.\7\ Rule 13n-1(c) provides that, within 90
days of the date of the publication of notice of the filing of an
application for registration (or within such longer period as to which
the applicant consents), the Commission will either grant the
registration by order or institute proceedings to determine whether
registration should be granted or denied.
---------------------------------------------------------------------------
\6\ See ICE Trade Vault Notice.
\7\ See DDR Notice.
---------------------------------------------------------------------------
Subject to certain exceptions, section 36 of the Exchange Act \8\
authorizes the Commission, by rule, regulation, or order, to exempt,
either conditionally or unconditionally, any person, security, or
transaction, or any class or classes of persons, securities, or
transactions, from any provision or provisions of the Exchange Act or
any rule or regulation thereunder, to the extent that such exemption is
necessary or appropriate in the public interest, and is consistent with
the protection of investors. The Commission finds that it is necessary
and appropriate in the public interest, and consistent with the
protection of investors, to grant a temporary exemption from compliance
with the SDR Rules and an extension of the SDR Relief. The applications
filed by ICE Trade Vault and DDR are the first SDR applications
submitted to the Commission and therefore present issues of first
impression for the Commission's consideration. Therefore, to allow the
Commission additional time prior to the compliance date for the SDR
Rules and the expiration of the SDR Relief to review the applications
and consider issues related to the first applications for registration
of SDRs, the Commission hereby grants, pursuant to Section 36 of the
Exchange Act, a temporary exemption from compliance with the SDR Rules
and an extension of the SDR Relief until October 5, 2016, which is 90
days from publication of notice of DDR's application for registration
as a SDR.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78mm.
By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2016-16541 Filed 7-12-16; 8:45 am]
BILLING CODE 8011-01-P
