Submission for OMB Review; Comment Request, 28715-28716 [2017-13144]
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Federal Register / Vol. 82, No. 120 / Friday, June 23, 2017 / Notices
2, and facilitating more efficient
regulatory compliance by its members.24
Additionally, the modernization of
Rule 1049 promotes just and equitable
principles of trade, removes
impediments to and perfects the
mechanism of a free and open market
and a national market system, and
protects investors and the public
interest, because it is designed to alert
members to requirements with respect
to options communications and to bring
clarity to its members and the public
regarding the Exchange’s options
communications rule. The Exchange
therefore believes that the proposed rule
change will help ensure that investors
are protected from potentially false or
misleading communications with the
public distributed by Exchange
members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the amendments to Rule 1049 proposed
herein will impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act inasmuch as the
amendments conform Rule 1049 more
closely to the Common Rules regarding
options communications to customers
under the 17d–2 Agreement.
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
asabaliauskas on DSKBBXCHB2PROD with NOTICES
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)(iii) of the Act 25 and
subparagraph (f)(6) of Rule 19b–4
thereunder.26
24 CBOE Rule 9.21 and FINRA Rules 2360(b)(18)
and 2354 are designated as Common Rules under
the 17d–2 Agreement.
25 15 U.S.C. 78s(b)(3)(A)(iii).
26 17 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.
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19:21 Jun 22, 2017
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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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–
Phlx–2017–39 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Phlx–2017–39. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of 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
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28715
submissions. You should submit only
information that you wish to make
available publicly.
All submissions should refer to File
Number SR–Phlx–2017–39 and should
be submitted on or before July 14, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–13103 Filed 6–22–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension:
Rule 701. SEC File No. 270–306, OMB
Control No. 3235–0522.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget this
request for extension of the previously
approved collection of information
discussed below.
Rule 701(17 CFR 230.701) under the
Securities Act of 1933 (‘‘Securities Act’’)
(15 U.S.C. 77a et seq.) provides an
exemption for certain issuers from the
registration requirements of the
Securities Act for limited offerings and
sales of securities issued under
compensatory benefit plans or contracts.
The purpose of Rule 701 is to ensure
that a basic level of information is
available to employees and others when
substantial amounts of securities are
issued in compensatory arrangements.
Information provided under Rule 701 is
mandatory. We estimate that
approximately 300 companies annually
rely on the Rule 701 exemption and that
it takes 2 hours to prepare each
response. We estimate that 25% of the
2 hours per response (0.5 hours) is
prepared by the company for a total
annual reporting burden of 150 hours
(0.5 hours per response × 300
responses).
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
27 17
E:\FR\FM\23JNN1.SGM
CFR 200.30–3(a)(12).
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Federal Register / Vol. 82, No. 120 / Friday, June 23, 2017 / Notices
The public may view the background
documentation for this information
collection at the following Web site,
www.reginfo.gov . Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Pamela
Dyson, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o Remi Pavlik-Simon,
100 F Street NE., Washington, DC 20549
or send an email to: PRA_Mailbox@
sec.gov. Comments must be submitted to
OMB within 30 days of this notice.
Dated: June 19, 2017.
Eduardo A. Aleman,
Assistant Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80965; File No. SR–MRX–
2017–07]
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Chapter 19
June 19, 2017.
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 6,
2017, Nasdaq MRX, LLC (‘‘MRX’’ 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.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Chapter 19 to notify members of a
systems issue related to allocations
made pursuant to Supplementary
Material .02(a)–(b) to Rule 1901.
The text of the proposed rule change
is available on the Exchange’s Web site
at www.ise.com, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
19:21 Jun 22, 2017
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
[FR Doc. 2017–13144 Filed 6–22–17; 8:45 am]
1 15
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Jkt 241001
The purpose of the proposed rule
change is to amend Chapter 19 to notify
members of a systems issue related to
allocations made pursuant to
Supplementary Material .02(a)–(b) to
Rule 1901 (‘‘Flash auction’’). Pursuant
to Supplementary Material .02 to Rule
1901, when the automatic execution of
an incoming order would result in an
impermissible Trade Through,3 such
order is exposed at the current national
best bid or offer (‘‘NBBO’’) to all
members, and members are given an
opportunity to enter responses up to the
size of the order being exposed.
Supplementary Material .02(a)–(b) to
Rule 1901 provides that interest
executed in the Flash auction is
allocated in price priority, and, at the
same price, Priority Customer orders
will be executed first in time priority
and then all other interest (orders,
quotes, and responses) will be allocated
pro-rata based on size. Currently,
however, the system is erroneously
providing the Primary Market Maker
(‘‘PMM’’) an enhanced allocation after
Priority Customer Orders on the book,
and ahead of Responses, Professional
Orders, and other market maker quotes.
Specifically, the PMM is being
erroneously given participation rights in
a Flash auction pursuant to
Supplementary Material .01(b)–(c) to
Rule 713, which results in the PMM
receiving a potentially larger share of
the order to be executed. That is, if the
PMM is quoting at the best price and the
conditions in Supplementary Material
.01(b)–(c) to Rule 713 are satisfied, the
PMM is given participation rights equal
3 ‘‘Trade-Through’’ means a transaction in an
option series at a price that is lower than a
Protected Bid or higher than a Protected Offer. See
Rule 1900(q).
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Sfmt 4703
to the greater of (i) the proportion of the
total size at the best price represented
by the size of its quote, or (ii) sixty
percent (60%) of the contracts to be
allocated if there is only one (1) other
Professional Order or market maker
quotation at the best price, forty percent
(40%) if there are two (2) other
Professional Orders and/or market
maker quotes at the best price, and
thirty percent (30%) if there are more
than two (2) other Professional Orders
and/or market maker quotes at the best
price. Alternatively, orders for five (5)
contracts or fewer will be executed first
by the PMM, if he is present at that
price.
This enhanced allocation was
intended for the PMM when orders are
allocated in the regular market, and not
for the allocation of an order exposed
pursuant to Supplementary Material .02
to Rule 1901 (i.e., the Flash auction).
The Exchange has notified members and
the Commission of this systems issue
pursuant to Regulation SCI. The
purpose of the proposed rule change is
to provide additional notification to
members by noting in Chapter 19 of the
Exchange’s rulebook the discrepancy
between the allocation described in the
rule and the allocation currently being
given by the Exchange’s trading system.
The Exchange is currently migrating its
trading system to the Nasdaq INET
architecture, and the allocation issue
will be resolved as symbols start trading
on INET in Q3 2017. In the interim, the
Exchange proposes to add language to
Chapter 19 to notify members that until
such time as symbols are migrated to
INET, Flash auction allocations
pursuant to Supplementary Material
.02(a)–(b) to Rule 1901 will not be
provided as described in that rule.
Instead, PMM quotes will be given a
Flash auction allocation pursuant to
Supplementary Material .01(b)–(c) to
Rule 713 after Priority Customer Orders
on the book, and ahead of Responses,
Professional Orders, and other market
maker quotes, until such time as
symbols are migrated to the INET
trading system. The Exchange believes
that this language will reduce member
confusion regarding how allocations
will be processed prior to the resolution
of this systems issue.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.4
4 15
E:\FR\FM\23JNN1.SGM
U.S.C. 78f(b).
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Agencies
[Federal Register Volume 82, Number 120 (Friday, June 23, 2017)]
[Notices]
[Pages 28715-28716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13144]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.
Extension:
Rule 701. SEC File No. 270-306, OMB Control No. 3235-0522.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget this request for extension of the previously approved
collection of information discussed below.
Rule 701(17 CFR 230.701) under the Securities Act of 1933
(``Securities Act'') (15 U.S.C. 77a et seq.) provides an exemption for
certain issuers from the registration requirements of the Securities
Act for limited offerings and sales of securities issued under
compensatory benefit plans or contracts. The purpose of Rule 701 is to
ensure that a basic level of information is available to employees and
others when substantial amounts of securities are issued in
compensatory arrangements. Information provided under Rule 701 is
mandatory. We estimate that approximately 300 companies annually rely
on the Rule 701 exemption and that it takes 2 hours to prepare each
response. We estimate that 25% of the 2 hours per response (0.5 hours)
is prepared by the company for a total annual reporting burden of 150
hours (0.5 hours per response x 300 responses).
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid control number.
[[Page 28716]]
The public may view the background documentation for this
information collection at the following Web site, www.reginfo.gov .
Comments should be directed to: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503, or by sending an email to:
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or send an email
to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30
days of this notice.
Dated: June 19, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-13144 Filed 6-22-17; 8:45 am]
BILLING CODE 8011-01-P