Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Granting Approval of a Proposed Rule Change To Shorten the Standard Settlement Cycle From Three Business Days After the Trade Date to Two Business Days After the Trade Date, 26147-26148 [2017-11609]
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Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Notices
begun investigating different methods
for gathering all of the data elements
requested by the Commission.2 There,
the Postal Service noted that its
investigation into the Commission’s
directive would have two distinct
phases. Id. The Postal Service described
the first phase as exploring whether the
requisite data could be practically
gathered and, if so, whether those data
would be reliable and accurate. Id. It
stated that the second phase was to
determine whether it would be possible
to use the obtained data to construct a
single-equation city carrier letter route
cost model for street time. Id. The Postal
Service stated that it had only recently
started to record the required data and
that, therefore, it had just begun the first
phase. Id.
In Docket No. ACR2015, the Postal
Service reported that it had initiated an
investigation into updating its city
carrier Special Purpose Route (SPR) cost
model for street time.3 The Postal
Service uses the SPR study data
approved in Docket No. R97–1 in
conjunction with current data from its
In-Office Cost System (IOCS) to form
SPRs street time cost pools and to
develop attributable costs.4 In its
response to Order No. 2792, the Postal
Service stated that it also was
investigating the feasibility of using
operational data to estimate variability
equations for its parcel and collection
route cost models.5
III. Public Inquiry
The Commission establishes PI2017–
1 to obtain an update on the Postal
Service’s progress in investigating the
data required for, and the viability of, a
single equation city carrier letter route
cost model as well as in reviewing the
SPR cost model for street time.
Chairman’s Information Request No. 1
is issued contemporaneously with this
Notice and Order. It seeks an update to
the Postal Service’s Response to Order
No. 2792 and further clarification on
designated IOCS-estimated city carrier
costs and City Carrier Cost System
volumes.
Comments on these topics are due no
later than August 29, 2017. Comments
are to be submitted via the
Commission’s online filing system at
https://www.prc.gov, unless a waiver is
obtained. Information on how to obtain
a waiver may be found by contacting the
Commission’s dockets office at 202–
789–6846.
IV. Public Representative
mstockstill on DSK30JT082PROD with NOTICES
No. RM2015–7, Response of the United
States Postal Service to Commission Order No.
2792, February 16, 2016, at 14 (Postal Service
Response to Order No. 2792).
3 See Docket No. ACR2015, Library Reference
USPS–FY15–9, file ‘‘USPS–FY15–9_Roadmap.pdf,’’
December 29, 2015, at 122; Docket No. R97–1,
Opinion and Recommended Decision, Volume 1,
May 11, 1998, at 188 (Opinion and Recommended
Decision).
4 See Opinion and Recommended Decision at
188.
5 The Commission’s Order No. 2792 describes this
as the cost model used to assign the costs of Sunday
delivery hours and parcel routes. See Order No.
2792 at 66. The Postal Service describes this as the
Parcel and Collection Route Models which are
limited to non-Sunday city carrier SPR costs. Postal
Service Response to Order No. 2792 at 16.
V. Ordering Paragraphs
It is ordered:
1. The Commission hereby establishes
Docket No. PI2017–1 to review the
Postal Service’s progress towards the
Commission directives in Order No.
2792 and to inquire about the current
data and methodology used to estimate
city carrier costs and City Carrier Cost
System volumes.
2. Comments are due no later than
August 29, 2017.
3. Pursuant to 39 U.S.C. 505, the
Commission appoints Katalin K.
Clendenin to serve as an officer of the
Commission (Public Representative) to
represent the interests of the general
public in this docket.
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2017–11586 Filed 6–5–17; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL SERVICE
Product Change—Priority Mail
Negotiated Service Agreement
Postal ServiceTM.
ACTION: Notice.
VerDate Sep<11>2014
20:52 Jun 05, 2017
Jkt 241001
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: June 6, 2017.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
SUMMARY:
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
3642 and 3632(b)(3), on May 31, 2017,
it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Contract 323 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2017–138,
CP2017–196.
Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2017–11581 Filed 6–5–17; 8:45 am]
BILLING CODE 7710–12–P
Pursuant to 39 U.S.C. 505, Katalin K.
Clendenin, is designated as an officer of
the Commission (Public Representative)
to represent the interests of the general
public in this proceeding.
AGENCY:
2 Docket
26147
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80825; File No. SR–CHX–
2017–06]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Order
Granting Approval of a Proposed Rule
Change To Shorten the Standard
Settlement Cycle From Three Business
Days After the Trade Date to Two
Business Days After the Trade Date
May 31, 2017.
I. Introduction
On April 6, 2017, 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 conform its rules to an
amendment adopted by the Commission
to Rule 15c6–1(a) under the Act 3 to
shorten the standard settlement cycle
for most broker-dealer transactions from
three business days after the trade date
(‘‘T+3’’) to two business days after the
trade date (‘‘T+2’’).4 The Commission
adopted the amendment to Rule 15c6–
1(a) under the Act to shorten the
standard settlement cycle to T+2 on
March 22, 2017 and set a compliance
date of September 5, 2017.5 The
Exchange’s proposed rule change was
published for comment in the Federal
Register on April 21, 2017.6 The
Commission did not receive any
comment letters on the proposed rule
change. This order approves the
proposed rule change.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b-4.
3 17 CFR 240.15c6–1.
4 See Securities Exchange Act Release No. 80295
(March 22, 2017), 82 FR 15564 (March 29, 2017)
(‘‘SEC Adopting Release’’).
5 See id.
6 See Securities Exchange Act Release No. 80467
(April 17, 2017), 82 FR 18800.
2 17
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06JNN1
26148
Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Notices
mstockstill on DSK30JT082PROD with NOTICES
II. Description of the Proposal
The Exchange proposes to amend
Article 1, Rule 2(e) and Article 9, Rule
7 to conform to the Commission’s
amendment to Rule 15c6–1(a) under the
Act 7 which shortens the standard
settlement cycle from T+3 to T+2 for
most broker-dealer transactions.
Current Article 1, Rule 2(e)(1) relating
to order settlement terms defines
‘‘Regular Way Settlement’’ as ‘‘a
transaction for delivery on the third full
business day following the day of the
contract.’’ The Exchange proposes to
shorten the ‘‘third full business day’’
time period to ‘‘second full business
day.’’
Current Article 1, Rule 2(e)(2)(C)
defines ‘‘Seller’s Option’’ as ‘‘a
transaction for delivery within the time
specified in the option, which time shall
not be less than four (4) full business
days nor more than 60 days following
the day of the contract; except that the
Exchange may provide otherwise in
specific issues of stocks or classes of
stocks.’’ The Exchange proposes to
shorten the ‘‘four (4) full business days’’
time period to ‘‘three (3) full business
days.’’
Current Article 9, Rule 7(a) governing
ex-dividend transactions provides in
part that transactions in stocks shall be
ex-dividend or ex-rights two full
business days immediately preceding
the date of record fixed by the
corporation for the determination of
stockholders entitled to receive such
dividends or rights, except when such
record date occurs upon a holiday or
half-holiday, transactions in the stock
shall be ex-dividend or ex-rights three
full business days immediately
preceding the record date. The
Exchange proposes amendments to
shorten the ‘‘two full business days’’
time period to a ‘‘business day’’ under
Rule 7(a) and the ‘‘three full business
days’’ time period to ‘‘two full business
days’’ under Rule 7(a)(1).
The Exchange proposes similar
changes to current Article 9, Rule 7(b)
pertaining to ex-warrants that provides,
in pertinent part, that transactions in
securities which have subscription
warrants attached (except those made
for ‘‘cash’’) shall be ex-warrants on the
second full business day preceding the
date of expiration of the warrants,
except when the day of expiration
occurs on a holiday or Sunday, the
transactions shall be ex-warrants on the
third full business day preceding the
day of expiration. The Exchange
proposes to shorten the ‘‘second full
business day’’ time period to a
7 See
id; see also supra note 4.
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‘‘business day’’ under Rule 7(b) and the
‘‘third full business day’’ time period to
‘‘second full business day’’ under Rule
7(b)(1).
III. Discussion and Commission’s
Findings
After careful review of the proposed
rule change, the Commission finds that
the proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange.8 Specifically, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,9 which requires that
the rules of a national securities
exchange be designed, among other
things, 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
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and to
protect investors and the public interest.
The Commission notes that the
proposed rule change would amend
Exchange rules to conform to the
amendment that the Commission has
adopted to Rule 15c6–1(a) under the
Act 10 and support a move to a T+2
standard settlement cycle. In the SEC
Adopting Release, the Commission
stated its belief that shortening the
standard settlement cycle from T+3 to
T+2 will result in a reduction of credit,
market, and liquidity risk,11 and as a
result, a reduction in systemic risk for
U.S. market participants.12 The
compliance date for the amendment to
Rule 15c6–1(a) under the Act is
September 5, 2017.13 The Exchange has
represented that the operative date of
the proposed rule change would
8 In approving this proposed rule change the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
9 15 U.S.C. 78f(b)(5).
10 See SEC Adopting Release, supra note 4.
11 Credit risk refers to the risk that the credit
quality of one party to a transaction will deteriorate
to the extent that it is unable to fulfill its obligations
to its counterparty on settlement date. Market risk
refers to the risk that the value of securities bought
and sold will change between trade execution and
settlement such that the completion of the trade
would result in a financial loss. Liquidity risk
describes the risk that an entity will be unable to
meet financial obligations on time due to an
inability to deliver funds or securities in the form
required though it may possess sufficient financial
resources in other forms. See id., 82 FR at 15564
n. 3.
12 See id., 82 FR at 15564.
13 See id.
PO 00000
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Fmt 4703
Sfmt 4703
correspond to the compliance date of
the amendment to Rule 15c6–1(a) under
the Act.
For the reasons noted above, the
Commission finds that the proposal is
consistent with the requirements of the
Act and would foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities,
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and
protect investors and the public interest.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,14 that the
proposed rule change, (SR–CHX–2017–
06), be and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–11609 Filed 6–5–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80822; File No. SR–
BatsBZX–2017–38] Self-Regulatory
Organizations; Bats BZX Exchange,
Inc.; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Related to Fees for Use on
Bats BZX Exchange, Inc.
May 31, 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 May 23,
2017, Bats BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Bats’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
one establishing or changing a member
due, fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. The
Commission is publishing this notice to
14 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
15 17
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]]>Agencies
[Federal Register Volume 82, Number 107 (Tuesday, June 6, 2017)]
[Notices]
[Pages 26147-26148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11609]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80825; File No. SR-CHX-2017-06]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Order Granting Approval of a Proposed Rule Change To Shorten the
Standard Settlement Cycle From Three Business Days After the Trade Date
to Two Business Days After the Trade Date
May 31, 2017.
I. Introduction
On April 6, 2017, 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 conform its rules to an amendment adopted by
the Commission to Rule 15c6-1(a) under the Act \3\ to shorten the
standard settlement cycle for most broker-dealer transactions from
three business days after the trade date (``T+3'') to two business days
after the trade date (``T+2'').\4\ The Commission adopted the amendment
to Rule 15c6-1(a) under the Act to shorten the standard settlement
cycle to T+2 on March 22, 2017 and set a compliance date of September
5, 2017.\5\ The Exchange's proposed rule change was published for
comment in the Federal Register on April 21, 2017.\6\ The Commission
did not receive any comment letters on the proposed rule change. This
order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.15c6-1.
\4\ See Securities Exchange Act Release No. 80295 (March 22,
2017), 82 FR 15564 (March 29, 2017) (``SEC Adopting Release'').
\5\ See id.
\6\ See Securities Exchange Act Release No. 80467 (April 17,
2017), 82 FR 18800.
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[[Page 26148]]
II. Description of the Proposal
The Exchange proposes to amend Article 1, Rule 2(e) and Article 9,
Rule 7 to conform to the Commission's amendment to Rule 15c6-1(a) under
the Act \7\ which shortens the standard settlement cycle from T+3 to
T+2 for most broker-dealer transactions.
---------------------------------------------------------------------------
\7\ See id; see also supra note 4.
---------------------------------------------------------------------------
Current Article 1, Rule 2(e)(1) relating to order settlement terms
defines ``Regular Way Settlement'' as ``a transaction for delivery on
the third full business day following the day of the contract.'' The
Exchange proposes to shorten the ``third full business day'' time
period to ``second full business day.''
Current Article 1, Rule 2(e)(2)(C) defines ``Seller's Option'' as
``a transaction for delivery within the time specified in the option,
which time shall not be less than four (4) full business days nor more
than 60 days following the day of the contract; except that the
Exchange may provide otherwise in specific issues of stocks or classes
of stocks.'' The Exchange proposes to shorten the ``four (4) full
business days'' time period to ``three (3) full business days.''
Current Article 9, Rule 7(a) governing ex-dividend transactions
provides in part that transactions in stocks shall be ex-dividend or
ex-rights two full business days immediately preceding the date of
record fixed by the corporation for the determination of stockholders
entitled to receive such dividends or rights, except when such record
date occurs upon a holiday or half-holiday, transactions in the stock
shall be ex-dividend or ex-rights three full business days immediately
preceding the record date. The Exchange proposes amendments to shorten
the ``two full business days'' time period to a ``business day'' under
Rule 7(a) and the ``three full business days'' time period to ``two
full business days'' under Rule 7(a)(1).
The Exchange proposes similar changes to current Article 9, Rule
7(b) pertaining to ex-warrants that provides, in pertinent part, that
transactions in securities which have subscription warrants attached
(except those made for ``cash'') shall be ex-warrants on the second
full business day preceding the date of expiration of the warrants,
except when the day of expiration occurs on a holiday or Sunday, the
transactions shall be ex-warrants on the third full business day
preceding the day of expiration. The Exchange proposes to shorten the
``second full business day'' time period to a ``business day'' under
Rule 7(b) and the ``third full business day'' time period to ``second
full business day'' under Rule 7(b)(1).
III. Discussion and Commission's Findings
After careful review of the proposed rule change, the Commission
finds that the proposal is consistent with the requirements of the Act
and the rules and regulations thereunder that are applicable to a
national securities exchange.\8\ Specifically, the Commission finds
that the proposed rule change is consistent with Section 6(b)(5) of the
Act,\9\ which requires that the rules of a national securities exchange
be designed, among other things, 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
regulating, clearing, settling, processing information with respect to,
and facilitating transactions in securities, to remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and to protect investors and the public interest.
---------------------------------------------------------------------------
\8\ In approving this proposed rule change the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission notes that the proposed rule change would amend
Exchange rules to conform to the amendment that the Commission has
adopted to Rule 15c6-1(a) under the Act \10\ and support a move to a
T+2 standard settlement cycle. In the SEC Adopting Release, the
Commission stated its belief that shortening the standard settlement
cycle from T+3 to T+2 will result in a reduction of credit, market, and
liquidity risk,\11\ and as a result, a reduction in systemic risk for
U.S. market participants.\12\ The compliance date for the amendment to
Rule 15c6-1(a) under the Act is September 5, 2017.\13\ The Exchange has
represented that the operative date of the proposed rule change would
correspond to the compliance date of the amendment to Rule 15c6-1(a)
under the Act.
---------------------------------------------------------------------------
\10\ See SEC Adopting Release, supra note 4.
\11\ Credit risk refers to the risk that the credit quality of
one party to a transaction will deteriorate to the extent that it is
unable to fulfill its obligations to its counterparty on settlement
date. Market risk refers to the risk that the value of securities
bought and sold will change between trade execution and settlement
such that the completion of the trade would result in a financial
loss. Liquidity risk describes the risk that an entity will be
unable to meet financial obligations on time due to an inability to
deliver funds or securities in the form required though it may
possess sufficient financial resources in other forms. See id., 82
FR at 15564 n. 3.
\12\ See id., 82 FR at 15564.
\13\ See id.
---------------------------------------------------------------------------
For the reasons noted above, the Commission finds that the proposal
is consistent with the requirements of the Act and would foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and protect investors and the public interest.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\14\ that the proposed rule change, (SR-CHX-2017-06), be and hereby
is, approved.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-11609 Filed 6-5-17; 8:45 am]
BILLING CODE 8011-01-P
