Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 11.26 Regarding the Data Collection Requirements of the Regulation NMS Plan To Implement a Tick Size Pilot Program January 17, 2017, 8249-8252 [2017-01461]
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Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Notices
is publishing this notice of a proposed
revision to the previously approved
collection of information.
Description: The SEC previously
received OMB approval for a voluntary
information collection with respect to
the Joint Standards, pursuant to which
entities regulated by the SEC voluntarily
self-assess their diversity policies and
practices.1 This proposed revision to the
previously approved collection would
add a form entitled ‘‘Diversity
Assessment Report for Entities
Regulated by the SEC’’ (Diversity
Assessment Report) to assist with
collection of information regarding
regulated entities’ policies and practices
relating to diversity and inclusion. The
Diversity Assessment Report (1) asks for
general information about a respondent;
(2) includes a checklist and questions
relating to the standards set forth in the
Joint Standards; (3) seeks data related to
workforce diversity and supplier
diversity; and (4) provides an
opportunity for comments. The SEC
estimates that use of the Diversity
Assessment Report would reduce the
average response time for this collection
per respondent from 12 hours to 10
hours. A draft of this Diversity
Assessment Report can be viewed at
https://www.sec.gov/omwi/sec-entitydiversity-assessment-report-draft.pdf.
The SEC may use the information
submitted by the entities it regulates to
monitor progress and trends in the
financial services industry with regard
to diversity and inclusion in
employment and contracting activities
and to identify and highlight those
policies and practices that have been
successful. The SEC will continue to
reach out to the regulated entities and
other interested parties to discuss
diversity and inclusion in the financial
services industry and share leading
practices. The SEC may also publish
information disclosed by the entity,
such as any identified leading practices,
in any form that does not identify a
particular institution or disclose
confidential business information. The
SEC will not publish diversity and
inclusion information that identifies any
particular regulated entity unless the
regulated entity consents in writing to
such use.
Type of Review: Revision.
Frequency of Response: Annually.
Burden Estimates:
Revised Number of Respondents:
1,300.2
1 80
FR 33016 (June 10, 2015).
number has been modified to account for
the ever changing number of entities regulated by
the SEC. It still, however, represents about 5% of
regulated entities, as set forth in the original PRA
notice for the Joint Standards.
2 This
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Revised Annual Burden Per
Respondent for the Diversity
Assessment Report and Joint Standards:
10 hours.
Revised Total Annual Burden: 13,000
hours.
Obligation to Respond: Voluntary.
Request for Comments: The comments
submitted in response to this notice will
be summarized and included in the
request for OMB approval. All
comments will become a matter of
public record. Comments are invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the SEC,
including whether the information has
practical utility;
(b) The accuracy of the SEC’s estimate
of the information collection burden,
including the validity of the methods
and the assumptions used;
(c) Ways to enhance the quality,
utility, and clarity of the information
proposed to be collected;
(d) Ways to minimize the burden of
the collection on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Dated: January 18, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–01566 Filed 1–23–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79806; File No. SR–NSX–
2017–01]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change To Amend
Exchange Rule 11.26 Regarding the
Data Collection Requirements of the
Regulation NMS Plan To Implement a
Tick Size Pilot Program January 17,
2017
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on January 6,
2017, National Stock Exchange, Inc.
(‘‘NSX’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
a proposed rule change, as described in
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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8249
Items I, and II below, which Items have
been substantially prepared by the
Exchange. The Exchange has designated
this proposal as a non-controversial
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6)(iii) 4 thereunder, which
renders it effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend
NSX Rule 11.26(b) and Rule 11.26,
Interpretations and Policies .08 to
modify certain data collection
requirements of the Regulation NMS
Plan to Implement a Tick Size Pilot
Program (the ‘‘Plan’’). The proposed rule
change is the same as proposed rule
changes recently approved or published
by the Commission for Bats BZX
Exchange f/k/a BATS Exchange, Inc.
(‘‘BZX’’) to amend BZX Rule 11.27
which also sets forth amendments to the
requirements for the Web site data
publication requirements pursuant to
Appendices B and C of the Plan.5
The text of the proposed rule change
is available on the Exchange’s Web site
at www.nsx.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 the
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and statutory
basis for the proposed rule change and
discussed any comments it received on
the proposed rule change. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in Sections A, B, and C below,
of the most significant parts of such
statements.
A. Self -Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On August 25, 2014, NYSE Group,
Inc., on behalf of BZX, Bats BYX
Exchange, Inc., f/k/a BATS–Y Exchange,
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii).
5 See Securities Exchange Act Release No. 79533
(December 13, 2016), 81 FR 91990 (December 19,
2016) (SR–BatsBZX–2016–82).
4 17
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Inc., Bats EDGA Exchange, Inc., Bats
EDGX Exchange, Inc., Chicago Stock
Exchange, Inc., Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’),
NASDAQ OMX BX, Inc., NASDAQ
OMX PHLX LLC, the Nasdaq Stock
Market LLC, New York Stock Exchange
LLC (‘‘NYSE’’), NYSE MKT LLC, and
NYSE Arca, Inc. (collectively
‘‘Participants’’), filed with the
Commission, pursuant to Section 11A of
the Act 6 and Rule 608 of Regulation
NMS thereunder,7 the Plan to
Implement a Tick Size Pilot Program
(‘‘Pilot’’).8 The Participants filed the
Plan to comply with an order issued by
the Commission on June 24, 2014.9 The
Plan 10 was published for comment in
the Federal Register on November 7,
2014 and was thereafter approved by the
Commission, as modified, on May 6,
2015.11 On November 6, 2015, the
Commission granted the Participants an
exemption from implementing the Plan
until October 3, 2016.12 On March 3,
2016, the Commission published an
amendment to the Plan adding NSX as
a Participant.13 On September 13, 2016,
the Commission exempted the Plan
Participants from the requirement to
fully implement the Pilot on October 3,
2016, to permit the Plan Participants to
implement the pilot on a phased-in
basis, as described in the Plan
Participants’ exemptive request.14
The Plan is designed to allow the
Commission, market participants, and
the public to study and assess the
impact of increment conventions on the
liquidity and trading of the common
stocks of small-capitalization
companies. Each Participant is required
to comply, and to enforce compliance
by its member organizations, as
6 15
U.S.C. 78k–1.
CFR 242.608.
8 See Letter from Brendon J. Weiss, Vice
President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014.
9 See Securities Exchange Act Release No. 72460
(June 24, 2014), 79 FR 36840 (June 30, 2014).
10 Unless otherwise specified, capitalized terms
used in this rule filing are based on the defined
terms of the Plan.
11 See Securities Exchange Act Release No. 74892
(May 6, 2015), 80 FR 27513 (May 13, 2015) (File No.
4–657) (‘‘Approval Order’’).
12 See Securities Exchange Act Release No. 76382
(November 6, 2015), 80 FR 70284 (November 13,
2015) (File No. 4–657) (Order Granting Exemption
From Compliance With the National Market System
Plan To Implement a Tick Size Pilot Program).
13 See Securities Exchange Act Release No. 77277
(March 3, 2016), 81 FR 12162 (March 8, 2016).
14 See Letter from David S. Shillman, Associate
Director, Division of Trading and Markets,
Commission, to Eric Swanson, EVP, General
Counsel and Secretary, Bats Global Markets, Inc.,
dated September 13, 2016; see also Letter from Eric
Swanson, EVP, General Counsel and Secretary, Bats
Global Markets, Inc., to Brent J. Fields, Secretary,
Commission, dated September 9, 2016.
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applicable, with the provisions of the
Plan.
The Exchange adopted rule
amendments to implement the
requirements of the Plan, including
relating to the Plan’s data collection
requirements and requirements relating
to Web site data publication.15
Specifically, with respect to the Web
site data publication requirements
pursuant to Section VII and Appendices
B and C to the Plan, Exchange Rule
11.26(b)(2)(B) provides, among other
things, that the Exchange shall make the
data required by Items I and II of
Appendix B to the Plan, and collected
pursuant to paragraph (b)(2) of Rule
11.26, publicly available on the
Exchange’s Web site on a monthly basis
at no charge and shall not identify the
Trading Center that generated the data.
Exchange Rule 11.26(b)(3)(C), provides,
among other things, that the Exchange
shall make the data required by Item IV
of Appendix B to the Plan, and collected
pursuant to paragraph (b)(3)(A) of Rule
11.26, publicly available on the
Exchange Web site on a monthly basis
at no charge and shall not identify the
Trading Center [sic] that generated the
data. Exchange Rule 11.26(b)(5)
provides, among other things, that the
Exchange shall collect and transmit to
the Commission data described in Item
III of Appendix B of the Plan relating to
daily Market Maker registration
statistics, but does not currently include
a provision requiring the Exchange to
publish such data to its Web site. Rule
11.26, Interpretation and Policy .08
provides, among other things, that the
requirement that the Exchange or the
Designated Examining Authority
(‘‘DEA’’) make certain data publicly
available on the Exchange’s or the
DEA’s Web site pursuant to Appendix B
and C to the Plan shall commence at the
beginning of the Pilot Period.
The Exchange is proposing
amendments to Rule 11.26(b)(2)(B)
(regarding Appendix B.I and B.II data)
and Rule 11.26(b)(3)(C) (regarding
Appendix B.IV data) to provide that
data required to be made available on
the Exchange’s Web site be published
within 120 calendar days following
month end. The Exchange also proposes
to add a provision to Rule 11.26(b)(5) to
state that the Exchange shall make data
collected under Appendix B.III publicly
available on the Exchange’s Web site
within 120 calendar days following
15 See Securities Exchange Act Release No. 77483
(March 31, 2016), 81 FR 20040 (April 6, 2016) (File
No. SR–NSX–2016–01); see also Securities
Exchange Act Release No. 78960 (September 28,
2016), 81 FR 68476 (October 4, 2016) (File No. SR–
NSX–2016–12).
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month end at no charge.16 In addition,
the proposed amendments to Rule
11.26, Interpretations and Policies .08
would provide that, notwithstanding the
provisions of paragraphs (b)(2)(B),
(b)(3)(C), and (b)(5), the Exchange or the
DEA shall make data for the Pre-Pilot
period publicly available on the
Exchange’s or the DEA’s Web site
pursuant to Appendix B and C to the
Plan by February 28, 2017.17 The
purpose of delaying the publication of
the Web site data is to address
confidentiality concerns by providing
for the passage of additional time
between the market information
reflected in the data and the public
availability of such information.18
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 19 in general, and furthers the
objectives of Section 6(b)(5) of the Act 20
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Exchange believes that this
proposal is consistent with the Act
because it is designed to assist the
Participants in meeting their regulatory
obligations pursuant to the Plan and is
16 The Exchange notes that it does not currently
have any Market Makers and, therefore, does not
currently collect Market Maker registration
statistics.
17 With respect to data for the Pilot Period, the
requirement that the Exchange or the DEA make
data publicly available on the Exchange’s or the
DEA’s Web site pursuant to Appendix B and C to
the Plan shall continue to commence at the
beginning of the Pilot Period. Thus, the first Web
site publication date for Pilot Period data (covering
October 2016) would be published on the
Exchange’s or the DEA’s Web site by February 28,
2017, which is 120 days following the end of
October 2016.
18 On November 30, 2016, the Commission
granted each Participant a limited exemption from
the requirement to publish certain Pilot data on a
monthly basis. For each Participants that is the DEA
of a Market Maker, the Commission granted a
limited exemption to allow FINRA to aggregate and
publish certain data on the FINRA Web site, rather
than each Participant that is a DEA of a Market
Maker publishing such data on its respective Web
site. The exemptions were granted to the
Participants so long as each Participant submits
proposed rule changes to reflect the exemptions.
See Letter dated November 30, 2016 from David S.
Shillman, Associate Directors, Division of Trading
and Markets to Ms. Marcia E. Asquith, Senior Vice
President and Corporate Secretary, FINRA.
19 15 U.S.C. 78f(b).
20 15 U.S.C. 78f(b)(5).
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in furtherance of the objectives of the
Plan, as identified by the SEC. The
Exchange further believes that the
instant proposal is consistent with the
Act in that it is designed to address
confidentiality concerns by permitting
the Exchange to delay Web site
publication to provide for passage of
additional time between the market
information reflected in the data and the
public availability of such information.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange notes that the proposed rule
change implements the provisions of the
Plan, and is designed to assist the
Participants in meeting their regulatory
obligations pursuant to the Plan.
The proposal is intended to address
confidentiality concerns that may
adversely impact competition by
permitting the Exchange to delay Web
site publication to provide for passage of
additional time between the market
information reflected in the data and the
public availability of such information.
The proposal also does not alter the
information required to be submitted to
the Commission.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
ETP Holders, Participants or Others
The Exchange has neither solicited
nor received comments on the proposed
rule change.
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) 21 of the Exchange Act and
Rule 19b–4(f)(6) thereunder.22
U.S.C. 78(s)(b)(3)(A).
CFR 240.19b–4(f)(6). See Securities
Exchange Act Release No. 58092 (July 3, 2008), 73
FR 40144 (July 11, 2008) (‘‘Commission Guidance
and Amendment to the Rule Relating to
Organization and Program Management Concerning
Proposed Rule Changes by Self-Regulatory
Organizations’’) (the ‘‘Streamlining Release’’). As
set forth in the Streamlining Release, Rule 19b–
4(f)(6) permits a proposed rule change to become
immediately effective to the extent such proposal is
a proposed rule change to implement provisions of
A proposed rule change filed under
paragraph (f)(6) of Rule 19b–4 23
normally does not become operative
prior to 30 days after the date of the
filing. However, pursuant to Rule 19b–
4(f)(6)(iii),24 the Commission may
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange filed the proposed rule change
for immediate effectiveness and has
requested that the Commission waive
the requirement that the proposed rule
change not become operative for 30 days
after the date of the filing so that it may
become operative immediately.
The Exchange notes that the proposed
rule change implements the provisions
of the Plan, and is designed to assist the
Participants in meeting their regulatory
obligations pursuant to the Plan. The
proposal is intended to address
confidentiality concerns by permitting
the Exchange to delay Web site
publication to provide for passage of
additional time between the market
information reflected in the data and the
public availability of such information.
The proposal does not alter the
information required to be submitted to
the SEC.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the Exchange to
implement proposed changes that are
intended to address confidentiality
concerns. Therefore, the Commission
hereby waives the 30-day operative
delay and designates the proposed rule
change to be operative as of 6 January,
2017.25
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, otherwise in furtherance of
the purposes of the Act.26 If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
21 15
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an approved national market system plan or a
Commission rule. Id. at 40148.
23 17 CFR 240.19b–4(f)(6)(iii).
24 17 CFR 240.19b–4(f)(6)(iii).
25 For purposes of only waiving the operative
delay for this rule proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
26 15 U.S.C. 78s(b)(3)(C).
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8251
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–
NSX–2017–01 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 No.
SR–NSX–2017–01. This file number
should be included in the subject line
if email is used. To help the
Commission process and review
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
a.m. and 3 p.m. Copies of the filing will
also be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to file number SR–NSX–2017–01 and
should be submitted on or before
February 14, 2017.
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Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–01461 Filed 1–23–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79808; File No. SR–CBOE–
2017–004]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fees
Schedule
January 17, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January 3,
2017, Chicago Board Options Exchange,
Incorporated (the ‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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 text of the proposed rule change
is available on the Exchange’s Web site
(https://www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
sradovich on DSK3GMQ082PROD with NOTICES
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.
27 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Fees Schedule. The Exchange is adding
fees for functionality related to its
PULSe workstation. The fees herein will
be effective on January 3, 2017.
By way of background, the PULSe
workstation is a front-end order entry
system designed for use with respect to
orders that may be sent to the trading
systems of the Exchange. Exchange
Trading Permit Holders (‘‘TPHs’’) may
also make workstations available to
their customers, which may include
TPHs, non-broker dealer public
customers and non-TPH broker dealers.
Drop Copies
Financial Information eXchange
(‘‘FIX’’) language-based connectivity,
upon request, provides customers (both
TPH and non-TPH) of TPHs that are
brokers and PULSe users (‘‘PULSe
brokers’’) with the ability to receive
‘‘drop-copy’’ order fill messages from
their PULSe brokers. These fill messages
allow customers to update positions,
risk calculations and streamline backoffice functions.
The Exchange is proposing a monthly
fee to be assessed on TPHs who are
either receiving or sending drop copies
via a PULSe workstation. This fee will
allow for the recoupment of costs of
maintaining and supporting drop copy
functionality. Whether the drop copy
sender or receiver is assessed the fee is
dependent upon whether the customer
receiving the drop copies is a TPH or
non-TPH.
If a customer receiving drop copies is
a TPH, that TPH customer (the receiving
TPH) will be charged a fee of $1000 per
month, per PULSe broker from whom it
receives drop copies via PULSe. For
example, if TPH customer A receives
drop copies from each of PULSe broker
A, PULSe broker B, and PULSe broker
C (all of which are TPHs), TPH A (the
receiving TPH) will be charged a fee of
$3000 per month for receiving drop
copies via PULSe from PULSe brokers
A, B and C (the sending TPHs).
If a customer receiving drop copies is
a non-TPH, the PULSe broker (the
sending TPH) who sends drop copies
via PULSe to that customer will be
charged a fee of $500 per month. If that
PULSe broker sends drop copies via
PULSe to multiple non-TPH customers,
the PULSe broker will be charged the
fee for each customer. For example, if
PULSe broker A sends drop copies via
its PULSe workstation to each of non-
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TPH customer A, non-TPH customer B
and non-TPH customer C, PULSe broker
A (the sending TPH) will be charged a
fee of $1500 per month for drop copies
it sends via PULSe to non-TPH
customers A, B and C (the receiving
non-TPHs).
Non-PULSe-to-PULSe Routing
Upon request, the Exchange provides
customers, both TPH and non-TPH, of
PULSe brokers with the ability to
transmit orders electronically to PULSe
brokers’ PULSe workstations using
order management systems other than
PULSe (i.e., non-PULSe-to-PULSe).3
These customers utilize the existing
infrastructure of such systems to send
orders to their PULSe brokers
electronically.
The Exchange is proposing a monthly
fee payable by TPH customers who
request non-PULSe-to-PULSe
functionality. This fee will allow for the
recoupment of costs of maintaining and
supporting non-PULSe-to-PULSe
routing functionality. A TPH customer
sending orders electronically to PULSe
brokers through these non-PULSe
systems will be charged a fee of $500 a
month per PULSe broker to which the
customer sends orders. For example, if
TPH customer A transmits orders
electronically through a non-PULSe
order management terminal to PULSe
workstations of each of PULSe broker A,
PULSe broker B, and PULSe broker C,
TPH customer A (the sending TPH) will
be charged a fee of $1500 per month for
the ability to send orders electronically
to the PULSe workstations of PULSe
brokers A, B and C.4 The Exchange does
not assess any fee, to the PULSe broker
or otherwise, for a non-TPH customer
electing to use non-PULSe-to-PULSe
routing functionality.
FIX Integration Drop Copy Start-Up/
Cancellation Fees
The Exchange is proposing fees for
both the start-up and cancellation of the
FIX integration needed to send and
receive drop copies from PULSe
workstations. The Exchange is
proposing a one-time fee of $500 to
recoup the costs required to connect a
new drop copy customer to
workstations of its PULSe broker(s) and
add the drop copy functionality for that
customer. Additionally, the Exchange is
3 Non-PULSe-to-PULSe routing is an ‘‘add-on’’
feature to drop copy connectivity. If a TPH or nonTPH customer of a PULSe brokers elects to send
orders through its third-party order management
system to its broker’s PULSe workstations, it must
also elect to have the drop copy connectivity.
4 In Addition, the TPH customer would be
charged $3,000/month for receiving drop copies
from the three PULSe brokers, as discussed above.
E:\FR\FM\24JAN1.SGM
24JAN1
]]>Agencies
[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)]
[Notices]
[Pages 8249-8252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01461]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79806; File No. SR-NSX-2017-01]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend Exchange Rule 11.26 Regarding the Data Collection Requirements
of the Regulation NMS Plan To Implement a Tick Size Pilot Program
January 17, 2017
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 6, 2017, National Stock Exchange, Inc. (``NSX'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') a proposed rule change, as described in
Items I, and II below, which Items have been substantially prepared by
the Exchange. The Exchange has designated this proposal as a non-
controversial proposed rule change pursuant to Section 19(b)(3)(A) of
the Act \3\ and Rule 19b-4(f)(6)(iii) \4\ thereunder, which renders it
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to amend NSX Rule 11.26(b) and Rule 11.26,
Interpretations and Policies .08 to modify certain data collection
requirements of the Regulation NMS Plan to Implement a Tick Size Pilot
Program (the ``Plan''). The proposed rule change is the same as
proposed rule changes recently approved or published by the Commission
for Bats BZX Exchange f/k/a BATS Exchange, Inc. (``BZX'') to amend BZX
Rule 11.27 which also sets forth amendments to the requirements for the
Web site data publication requirements pursuant to Appendices B and C
of the Plan.\5\
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\5\ See Securities Exchange Act Release No. 79533 (December 13,
2016), 81 FR 91990 (December 19, 2016) (SR-BatsBZX-2016-82).
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The text of the proposed rule change is available on the Exchange's
Web site at www.nsx.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 the
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and statutory basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. The Exchange has prepared summaries, set
forth in Sections A, B, and C below, of the most significant parts of
such statements.
A. Self -Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On August 25, 2014, NYSE Group, Inc., on behalf of BZX, Bats BYX
Exchange, Inc., f/k/a BATS-Y Exchange,
[[Page 8250]]
Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc., Chicago Stock
Exchange, Inc., Financial Industry Regulatory Authority, Inc.
(``FINRA''), NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, the Nasdaq Stock
Market LLC, New York Stock Exchange LLC (``NYSE''), NYSE MKT LLC, and
NYSE Arca, Inc. (collectively ``Participants''), filed with the
Commission, pursuant to Section 11A of the Act \6\ and Rule 608 of
Regulation NMS thereunder,\7\ the Plan to Implement a Tick Size Pilot
Program (``Pilot'').\8\ The Participants filed the Plan to comply with
an order issued by the Commission on June 24, 2014.\9\ The Plan \10\
was published for comment in the Federal Register on November 7, 2014
and was thereafter approved by the Commission, as modified, on May 6,
2015.\11\ On November 6, 2015, the Commission granted the Participants
an exemption from implementing the Plan until October 3, 2016.\12\ On
March 3, 2016, the Commission published an amendment to the Plan adding
NSX as a Participant.\13\ On September 13, 2016, the Commission
exempted the Plan Participants from the requirement to fully implement
the Pilot on October 3, 2016, to permit the Plan Participants to
implement the pilot on a phased-in basis, as described in the Plan
Participants' exemptive request.\14\
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\6\ 15 U.S.C. 78k-1.
\7\ 17 CFR 242.608.
\8\ See Letter from Brendon J. Weiss, Vice President,
Intercontinental Exchange, Inc., to Secretary, Commission, dated
August 25, 2014.
\9\ See Securities Exchange Act Release No. 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014).
\10\ Unless otherwise specified, capitalized terms used in this
rule filing are based on the defined terms of the Plan.
\11\ See Securities Exchange Act Release No. 74892 (May 6,
2015), 80 FR 27513 (May 13, 2015) (File No. 4-657) (``Approval
Order'').
\12\ See Securities Exchange Act Release No. 76382 (November 6,
2015), 80 FR 70284 (November 13, 2015) (File No. 4-657) (Order
Granting Exemption From Compliance With the National Market System
Plan To Implement a Tick Size Pilot Program).
\13\ See Securities Exchange Act Release No. 77277 (March 3,
2016), 81 FR 12162 (March 8, 2016).
\14\ See Letter from David S. Shillman, Associate Director,
Division of Trading and Markets, Commission, to Eric Swanson, EVP,
General Counsel and Secretary, Bats Global Markets, Inc., dated
September 13, 2016; see also Letter from Eric Swanson, EVP, General
Counsel and Secretary, Bats Global Markets, Inc., to Brent J.
Fields, Secretary, Commission, dated September 9, 2016.
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The Plan is designed to allow the Commission, market participants,
and the public to study and assess the impact of increment conventions
on the liquidity and trading of the common stocks of small-
capitalization companies. Each Participant is required to comply, and
to enforce compliance by its member organizations, as applicable, with
the provisions of the Plan.
The Exchange adopted rule amendments to implement the requirements
of the Plan, including relating to the Plan's data collection
requirements and requirements relating to Web site data
publication.\15\ Specifically, with respect to the Web site data
publication requirements pursuant to Section VII and Appendices B and C
to the Plan, Exchange Rule 11.26(b)(2)(B) provides, among other things,
that the Exchange shall make the data required by Items I and II of
Appendix B to the Plan, and collected pursuant to paragraph (b)(2) of
Rule 11.26, publicly available on the Exchange's Web site on a monthly
basis at no charge and shall not identify the Trading Center that
generated the data. Exchange Rule 11.26(b)(3)(C), provides, among other
things, that the Exchange shall make the data required by Item IV of
Appendix B to the Plan, and collected pursuant to paragraph (b)(3)(A)
of Rule 11.26, publicly available on the Exchange Web site on a monthly
basis at no charge and shall not identify the Trading Center [sic] that
generated the data. Exchange Rule 11.26(b)(5) provides, among other
things, that the Exchange shall collect and transmit to the Commission
data described in Item III of Appendix B of the Plan relating to daily
Market Maker registration statistics, but does not currently include a
provision requiring the Exchange to publish such data to its Web site.
Rule 11.26, Interpretation and Policy .08 provides, among other things,
that the requirement that the Exchange or the Designated Examining
Authority (``DEA'') make certain data publicly available on the
Exchange's or the DEA's Web site pursuant to Appendix B and C to the
Plan shall commence at the beginning of the Pilot Period.
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\15\ See Securities Exchange Act Release No. 77483 (March 31,
2016), 81 FR 20040 (April 6, 2016) (File No. SR-NSX-2016-01); see
also Securities Exchange Act Release No. 78960 (September 28, 2016),
81 FR 68476 (October 4, 2016) (File No. SR-NSX-2016-12).
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The Exchange is proposing amendments to Rule 11.26(b)(2)(B)
(regarding Appendix B.I and B.II data) and Rule 11.26(b)(3)(C)
(regarding Appendix B.IV data) to provide that data required to be made
available on the Exchange's Web site be published within 120 calendar
days following month end. The Exchange also proposes to add a provision
to Rule 11.26(b)(5) to state that the Exchange shall make data
collected under Appendix B.III publicly available on the Exchange's Web
site within 120 calendar days following month end at no charge.\16\ In
addition, the proposed amendments to Rule 11.26, Interpretations and
Policies .08 would provide that, notwithstanding the provisions of
paragraphs (b)(2)(B), (b)(3)(C), and (b)(5), the Exchange or the DEA
shall make data for the Pre-Pilot period publicly available on the
Exchange's or the DEA's Web site pursuant to Appendix B and C to the
Plan by February 28, 2017.\17\ The purpose of delaying the publication
of the Web site data is to address confidentiality concerns by
providing for the passage of additional time between the market
information reflected in the data and the public availability of such
information.\18\
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\16\ The Exchange notes that it does not currently have any
Market Makers and, therefore, does not currently collect Market
Maker registration statistics.
\17\ With respect to data for the Pilot Period, the requirement
that the Exchange or the DEA make data publicly available on the
Exchange's or the DEA's Web site pursuant to Appendix B and C to the
Plan shall continue to commence at the beginning of the Pilot
Period. Thus, the first Web site publication date for Pilot Period
data (covering October 2016) would be published on the Exchange's or
the DEA's Web site by February 28, 2017, which is 120 days following
the end of October 2016.
\18\ On November 30, 2016, the Commission granted each
Participant a limited exemption from the requirement to publish
certain Pilot data on a monthly basis. For each Participants that is
the DEA of a Market Maker, the Commission granted a limited
exemption to allow FINRA to aggregate and publish certain data on
the FINRA Web site, rather than each Participant that is a DEA of a
Market Maker publishing such data on its respective Web site. The
exemptions were granted to the Participants so long as each
Participant submits proposed rule changes to reflect the exemptions.
See Letter dated November 30, 2016 from David S. Shillman, Associate
Directors, Division of Trading and Markets to Ms. Marcia E. Asquith,
Senior Vice President and Corporate Secretary, FINRA.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \19\ in general, and furthers the objectives of Section
6(b)(5) of the Act \20\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
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\19\ 15 U.S.C. 78f(b).
\20\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that this proposal is consistent with the Act
because it is designed to assist the Participants in meeting their
regulatory obligations pursuant to the Plan and is
[[Page 8251]]
in furtherance of the objectives of the Plan, as identified by the SEC.
The Exchange further believes that the instant proposal is consistent
with the Act in that it is designed to address confidentiality concerns
by permitting the Exchange to delay Web site publication to provide for
passage of additional time between the market information reflected in
the data and the public availability of such information.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
notes that the proposed rule change implements the provisions of the
Plan, and is designed to assist the Participants in meeting their
regulatory obligations pursuant to the Plan.
The proposal is intended to address confidentiality concerns that
may adversely impact competition by permitting the Exchange to delay
Web site publication to provide for passage of additional time between
the market information reflected in the data and the public
availability of such information. The proposal also does not alter the
information required to be submitted to the Commission.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From ETP Holders, Participants or Others
The Exchange has neither solicited nor received comments on the
proposed rule change.
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) \21\ of the Exchange Act and
Rule 19b-4(f)(6) thereunder.\22\
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\21\ 15 U.S.C. 78(s)(b)(3)(A).
\22\ 17 CFR 240.19b-4(f)(6). See Securities Exchange Act Release
No. 58092 (July 3, 2008), 73 FR 40144 (July 11, 2008) (``Commission
Guidance and Amendment to the Rule Relating to Organization and
Program Management Concerning Proposed Rule Changes by Self-
Regulatory Organizations'') (the ``Streamlining Release''). As set
forth in the Streamlining Release, Rule 19b-4(f)(6) permits a
proposed rule change to become immediately effective to the extent
such proposal is a proposed rule change to implement provisions of
an approved national market system plan or a Commission rule. Id. at
40148.
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A proposed rule change filed under paragraph (f)(6) of Rule 19b-4
\23\ normally does not become operative prior to 30 days after the date
of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\24\ the
Commission may designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
filed the proposed rule change for immediate effectiveness and has
requested that the Commission waive the requirement that the proposed
rule change not become operative for 30 days after the date of the
filing so that it may become operative immediately.
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\23\ 17 CFR 240.19b-4(f)(6)(iii).
\24\ 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange notes that the proposed rule change implements the
provisions of the Plan, and is designed to assist the Participants in
meeting their regulatory obligations pursuant to the Plan. The proposal
is intended to address confidentiality concerns by permitting the
Exchange to delay Web site publication to provide for passage of
additional time between the market information reflected in the data
and the public availability of such information. The proposal does not
alter the information required to be submitted to the SEC.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to implement proposed changes that
are intended to address confidentiality concerns. Therefore, the
Commission hereby waives the 30-day operative delay and designates the
proposed rule change to be operative as of 6 January, 2017.\25\
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\25\ For purposes of only waiving the operative delay for this
rule proposal, 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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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,
otherwise in furtherance of the purposes of the Act.\26\ If the
Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule should be approved
or disapproved.
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\26\ 15 U.S.C. 78s(b)(3)(C).
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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-NSX-2017-01 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 No. SR-NSX-2017-01. This file
number should be included in the subject line if email is used. To help
the Commission process and review 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 a.m. and 3
p.m. Copies of the filing will also be available for inspection and
copying at the principal office of the Exchange. All comments received
will be posted without change; the Commission does not edit personal
identifying information from submissions.
You should submit only information that you wish to make available
publicly. All submissions should refer to file number SR-NSX-2017-01
and should be submitted on or before February 14, 2017.
[[Page 8252]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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\27\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-01461 Filed 1-23-17; 8:45 am]
BILLING CODE 8011-01-P
