Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX PEARL Rule 524, Reporting of Matched Trades to Clearing Corporation, 32737-32739 [2017-14889]
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Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2017–062 and should be
submitted on or before August 7, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017–14890 Filed 7–14–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81123; File No. SR–
NASDAQ–2017–038]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change, as Modified by
Amendment No. 1, Relating to the First
Trust Municipal High Income ETF
July 11, 2017.
On May 16, 2017, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’ 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
relating to the First Trust Municipal
High Income ETF (‘‘Fund’’) of First
Trust Exchange-Traded Fund III, the
shares of which have been approved by
the Commission for listing and trading
under Nasdaq Rule 5735. The proposed
rule change was published for comment
in the Federal Register on June 2, 2017.3
On July 10, 2017, the Exchange filed
Amendment No. 1 to the proposed rule
change.4 The Commission has received
no comment letters on the proposed rule
change.
Section 19(b)(2) of the Act 5 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is July 17, 2017.
The Commission is extending this 45day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change. Accordingly, the
Commission, pursuant to Section
19(b)(2) of the Act,6 designates August
31, 2017, as the date by which the
Commission shall either approve or
disapprove or institute proceedings to
determine whether to disapprove the
proposed rule change (File Number SR–
NASDAQ–2017–038).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017–14893 Filed 7–14–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81119; File No. SR–
PEARL–2017–31]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend MIAX PEARL
Rule 524, Reporting of Matched Trades
to Clearing Corporation
July 11, 2017.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
20 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 80802
(May 26, 2017), 82 FR 25648 (June 2, 2017).
4 In Amendment No. 1, which amended and
replaced the proposed rule change in its entirety,
Nasdaq (a) deleted references to the ‘‘Liquidity
Rule,’’ and (b) made certain changes to the
percentages to the Fund’s investments in Municipal
Securities that are, at the time of investment, rated
investment grade and below investment grade.
Because Amendment No. 1 does not materially alter
the substance of the proposed rule change or raise
unique or novel regulatory issues, Amendment No.
1 is not subject to notice and comment. Amendment
No. 1 to the proposed rule change is available at:
https://www.sec.gov/comments/sr-nasdaq-2017038/nasdaq2017038-1841718-155073.pdf.
5 15 U.S.C. 78s(b)(2).
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Pursuant to the provisions of 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 28, 2017, MIAX PEARL, LLC
(‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a
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
PO 00000
6 Id.
7 17
CFR 200.30–3(a)(31).
U.S.C. 78s (b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00062
Fmt 4703
Sfmt 4703
32737
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 is filing a proposal to
amend Exchange Rule 524, Reporting of
Matched Trades to Clearing
Corporation.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’s principal
office, 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Exchange Rule 524, Reporting of
Matched Trades to Clearing
Corporation, to adopt Interpretations
and Policies .01, to state that post-trade
adjustments that do not affect the
contractual terms of a trade are to be
performed by the Exchange Member 3
via an Exchange approved electronic
interface. The Exchange will notify
Members of the approved electronic
interface via Regulatory Circular. The
Exchange notes that an identical filing
has been submitted by its affiliate,
MIAX Options. In order to ensure
consistent operation of both MIAX
PEARL and MIAX Options through
having consistent rules, the Exchange
proposes to amend MIAX PEARL Rule
524 as described below.
3 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associate with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
E:\FR\FM\17JYN1.SGM
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asabaliauskas on DSKBBXCHB2PROD with NOTICES
32738
Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices
Options Clearing Corporation (‘‘OCC’’)
to ensure compliance with applicable
Exchange rules and such Securities and
Exchange Commission Trading rules
related to options trading. Further, the
Exchange notes that Members may make
post-trade adjustments to trades
executed on the Exchange directly at the
OCC, as the OCC provides functionality
for Members to update certain noncritical trade information with respect to
the transaction, provided such changes
are not in contravention of any rule of
the Exchange on which a confirmed
trade was executed.6
The Exchange notes that other
exchanges offer similar functionality to
their members for post-trade
adjustments.7 However, these
Exchanges incentivize their members to
perform their own post-trade
adjustments by charging a fee when the
member elects to have the exchange
perform the adjustment on their behalf,
as opposed to mandating usage of an
interface to perform post-trade
adjustments such as the Exchange is
proposing.
The Exchange staffs a Help Desk 4 to
provide customer service and support to
its Members. One of the support
functions the Help Desk currently
provides is to make certain post-trade
adjustments to a Member’s matched
trades at the Member’s request and on
its behalf. The Exchange has also
developed functionality that it makes
available to all Members that enables
Members to electronically and
independently perform post-trade
adjustments that do not affect the
contractual terms of the transaction to
their side of the matched trade.
Examples of post-trade adjustments that
do not affect the contractual terms of a
trade include: Changing the position
indicator (e.g., from Open to Close or
Close to Open); adding or removing
Clearing Member Trade Agreement
(‘‘CMTA’’) information; changing the
clearing account type (e.g., Customer or
Firm); and modifying the optional data
field, which may be used by Members
for their own internal back-office
processing.
Despite the availability of
functionality for Members to perform
these straightforward post-trade
adjustments on their own, the Help
Desk still receives a significant number
of requests on a daily basis to manually
perform these adjustments. Processing
these requests is a time consuming
exercise for Exchange staff and is an
inefficient use of Exchange time and
resources given that Members have the
ability to perform these adjustments
themselves electronically via an
Exchange provided interface.
Accordingly, the Exchange proposes to
mandate that Members perform their
own post-trade adjustments which do
not affect the contractual terms of a
trade as discussed above, using the
functionality provided by the Exchange.
The Exchange notes that use of the
functionality provided by the Exchange
does not relieve Members of their
obligations to abide by the rules of the
Exchange.5 The Exchange also
represents that it has an adequate
surveillance program in place to review
post-trade adjustments made by its
Members. Additionally, the Exchange
has a Regulatory Services Agreement in
place with the Financial Industry
Regulatory Authority to monitor
adjustments done directly at the
2. Statutory Basis
MIAX PEARL believes that its
proposed rule change is consistent with
Section 6(b) of the Act 8 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 9 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
mechanisms 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 its
proposal would promote just and
equitable principles of trade and not
unfairly discriminate between Members
because the functionality to make posttrade adjustments is available to all
Members. Further, the Exchange
believes that its proposal would
promote a fair and orderly market and
protect investors and the public interest
because its proposal would result in a
more efficient use of Exchange
resources, which would benefit all
market participants.
4 The term ‘‘Help Desk’’ means the Exchange’s
control room consisting of Exchange staff
authorized to make certain trading determinations
on behalf of the Exchange. The Help Desk shall
report to and be supervised by a senior executive
officer of the Exchange. See Exchange Rule 100.
5 Specifically, the Exchange notes that Members
have an obligation to adhere to Exchange Rule 507,
Must Give Up Clearing Member.
6 See OCC Rules, Chapter IV, Rule 401, Reporting
of Confirmed Trades Effected on Exchanges.
7 See Securities Exchange Act Release Nos. 73585
(November 13, 2014), 79 FR 68927 (November 19,
2014) (SR–NYSEArca–2014–116); and 73542
(November 6, 2014), 79 FR 67496 (November 13,
2014) (SR–NYSEMKT–2014–87).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not designed to
address any competitive issues but
rather to make more efficient use of the
Exchange’s employee time and
resources, which may ultimately benefit
Members.
The Exchange does not believe that
the proposed rule change will impose
any burden on intra-market competition
as the Rules apply equally to all
Exchange Members.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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 after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 10 and Rule 19b–4(f)(6) 11
thereunder.
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. 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.
10 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.
11 17
E:\FR\FM\17JYN1.SGM
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Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices
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–
PEARL–2017–31 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.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
All submissions should refer to File
Number SR–PEARL–2017–31. 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
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
PEARL–2017–31, and should be
submitted on or before August 7, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Jill M. Peterson,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81118; File No. SR–CBOE–
2017–052]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Updating the CBOE Fees
Schedule Concerning LVCX Fees
July 11, 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 June 29,
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 Exchange proposes to amend its
Fees Schedule relating to Livevol Core
X (‘‘LVCX’’) fees.
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.
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.
[FR Doc. 2017–14889 Filed 7–14–17; 8:45 am]
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 relating to Livevol Core
X (‘‘LVCX’’) fees. By way of background,
LVCX is a front-end order entry and
management tool for listed stocks and
options that supports both simple and
complex orders. Particularly, LVCX is a
web-based application integrated into
the application programming interface
of the user’s proprietary system. The
application provides users with the
capability to send option orders to U.S.
options exchanges and stock orders to
U.S. stock exchanges (and other trading
centers). Additionally, LVCX allows
users to input parameters to control the
size, timing and other variables of their
trades. Use of the application is
completely optional and LVCX users
may sublicense LVCX to their
customers.
The Exchange proposes a new tiered
fee schedule for LVCX. Specifically, the
Exchange proposes to eliminate the
current flat fees of $100/month (per Login ID) and implement a new tiered fee
schedule for the LVCX application fees.
The Exchange believes the proposed
change will encourage greater
application of the LVCX platform by
reducing the prices as users purchase
more Log-In IDs. The proposed LVXC
tiered pricing is below.
Livevol Core X (LVCX)
Application Fees by Number of
Login IDs:
0–0 ..........................................
11–30 ......................................
31–100 ....................................
101–200 ..................................
201–500 ..................................
501–1,000 ...............................
>1,000 .....................................
1 15
CFR 200.30–3(a)(12).
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17:45 Jul 14, 2017
2 17
Jkt 241001
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00064
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3 15
4 15
Sfmt 4703
Fee per
login ID
per month
$100
75
50
40
30
20
15
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.3 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 4 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
BILLING CODE 8011–01–P
12 17
32739
E:\FR\FM\17JYN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
17JYN1
]]>Agencies
[Federal Register Volume 82, Number 135 (Monday, July 17, 2017)]
[Notices]
[Pages 32737-32739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14889]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81119; File No. SR-PEARL-2017-31]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX
PEARL Rule 524, Reporting of Matched Trades to Clearing Corporation
July 11, 2017.
Pursuant to the provisions of 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 28, 2017, MIAX PEARL, LLC (``MIAX PEARL''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s (b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend Exchange Rule 524,
Reporting of Matched Trades to Clearing Corporation.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.miaxoptions.com/rule-filings/pearl at MIAX
PEARL's principal office, 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Exchange Rule 524, Reporting of
Matched Trades to Clearing Corporation, to adopt Interpretations and
Policies .01, to state that post-trade adjustments that do not affect
the contractual terms of a trade are to be performed by the Exchange
Member \3\ via an Exchange approved electronic interface. The Exchange
will notify Members of the approved electronic interface via Regulatory
Circular. The Exchange notes that an identical filing has been
submitted by its affiliate, MIAX Options. In order to ensure consistent
operation of both MIAX PEARL and MIAX Options through having consistent
rules, the Exchange proposes to amend MIAX PEARL Rule 524 as described
below.
---------------------------------------------------------------------------
\3\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associate with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
---------------------------------------------------------------------------
[[Page 32738]]
The Exchange staffs a Help Desk \4\ to provide customer service and
support to its Members. One of the support functions the Help Desk
currently provides is to make certain post-trade adjustments to a
Member's matched trades at the Member's request and on its behalf. The
Exchange has also developed functionality that it makes available to
all Members that enables Members to electronically and independently
perform post-trade adjustments that do not affect the contractual terms
of the transaction to their side of the matched trade. Examples of
post-trade adjustments that do not affect the contractual terms of a
trade include: Changing the position indicator (e.g., from Open to
Close or Close to Open); adding or removing Clearing Member Trade
Agreement (``CMTA'') information; changing the clearing account type
(e.g., Customer or Firm); and modifying the optional data field, which
may be used by Members for their own internal back-office processing.
---------------------------------------------------------------------------
\4\ The term ``Help Desk'' means the Exchange's control room
consisting of Exchange staff authorized to make certain trading
determinations on behalf of the Exchange. The Help Desk shall report
to and be supervised by a senior executive officer of the Exchange.
See Exchange Rule 100.
---------------------------------------------------------------------------
Despite the availability of functionality for Members to perform
these straightforward post-trade adjustments on their own, the Help
Desk still receives a significant number of requests on a daily basis
to manually perform these adjustments. Processing these requests is a
time consuming exercise for Exchange staff and is an inefficient use of
Exchange time and resources given that Members have the ability to
perform these adjustments themselves electronically via an Exchange
provided interface. Accordingly, the Exchange proposes to mandate that
Members perform their own post-trade adjustments which do not affect
the contractual terms of a trade as discussed above, using the
functionality provided by the Exchange. The Exchange notes that use of
the functionality provided by the Exchange does not relieve Members of
their obligations to abide by the rules of the Exchange.\5\ The
Exchange also represents that it has an adequate surveillance program
in place to review post-trade adjustments made by its Members.
Additionally, the Exchange has a Regulatory Services Agreement in place
with the Financial Industry Regulatory Authority to monitor adjustments
done directly at the Options Clearing Corporation (``OCC'') to ensure
compliance with applicable Exchange rules and such Securities and
Exchange Commission Trading rules related to options trading. Further,
the Exchange notes that Members may make post-trade adjustments to
trades executed on the Exchange directly at the OCC, as the OCC
provides functionality for Members to update certain non-critical trade
information with respect to the transaction, provided such changes are
not in contravention of any rule of the Exchange on which a confirmed
trade was executed.\6\
---------------------------------------------------------------------------
\5\ Specifically, the Exchange notes that Members have an
obligation to adhere to Exchange Rule 507, Must Give Up Clearing
Member.
\6\ See OCC Rules, Chapter IV, Rule 401, Reporting of Confirmed
Trades Effected on Exchanges.
---------------------------------------------------------------------------
The Exchange notes that other exchanges offer similar functionality
to their members for post-trade adjustments.\7\ However, these
Exchanges incentivize their members to perform their own post-trade
adjustments by charging a fee when the member elects to have the
exchange perform the adjustment on their behalf, as opposed to
mandating usage of an interface to perform post-trade adjustments such
as the Exchange is proposing.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release Nos. 73585 (November 13,
2014), 79 FR 68927 (November 19, 2014) (SR-NYSEArca-2014-116); and
73542 (November 6, 2014), 79 FR 67496 (November 13, 2014) (SR-
NYSEMKT-2014-87).
---------------------------------------------------------------------------
2. Statutory Basis
MIAX PEARL believes that its proposed rule change is consistent
with Section 6(b) of the Act \8\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \9\ 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
mechanisms of a free and open market and a national market system and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that its proposal would promote just and
equitable principles of trade and not unfairly discriminate between
Members because the functionality to make post-trade adjustments is
available to all Members. Further, the Exchange believes that its
proposal would promote a fair and orderly market and protect investors
and the public interest because its proposal would result in a more
efficient use of Exchange resources, which would benefit all market
participants.
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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not designed to address any competitive issues but rather to make more
efficient use of the Exchange's employee time and resources, which may
ultimately benefit Members.
The Exchange does not believe that the proposed rule change will
impose any burden on intra-market competition as the Rules apply
equally to all Exchange Members.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) \11\
thereunder.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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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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. 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.
[[Page 32739]]
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-PEARL-2017-31 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-PEARL-2017-31. 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 submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-PEARL-2017-31, and should be
submitted on or before August 7, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017-14889 Filed 7-14-17; 8:45 am]
BILLING CODE 8011-01-P
