Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Effective Date of the Settlement Cycle Rule Changes, 37256-37257 [2017-16740]
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37256
Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81306; File No. SR–NSCC–
2017–014]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Establish the Effective
Date of the Settlement Cycle Rule
Changes
August 3, 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 July 31,
2017, National Securities Clearing
Corporation (‘‘NSCC’’) 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 clearing agency. NSCC filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(4) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
NSCC is filing this proposed rule
change to (i) establish September 5,
2017 as the effective date (‘‘Effective
Date’’) of the settlement cycle rule
changes (‘‘T2 Changes’’) submitted
pursuant to rule filing SR–NSCC–2016–
007 (‘‘Prior Rule Filing’’),5 (ii)
incorporate the T2 Changes into NSCC’s
Rules & Procedures (‘‘Rules’’) 6 as of the
Effective Date, and (iii) amend the
legend (‘‘Legend’’) on the cover page of
the Rules in order to include the
Effective Date and self-eliminating
language for the Legend, and remove the
Legend’s current reference to NSCC
making a subsequent rule filing with the
Commission as this proposal is that
subsequent rule filing.
sradovich on DSK3GMQ082PROD with NOTICES
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency included statements
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4).
5 See Securities Exchange Act Release No. 79356
(November 18, 2016), 81 FR 85299 (November 25,
2016) (SR–NSCC–2016–007).
6 Capitalized terms not defined herein are defined
in the Rules, available at https://www.dtcc.com/∼/
media/Files/Downloads/legal/rules/nscc_rules.pdf.
2 17
VerDate Sep<11>2014
17:00 Aug 08, 2017
Jkt 241001
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
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
On January 4, 2017, the Commission
issued an order approving the Prior Rule
Filing,7 which was filed by NSCC
pursuant to Section 19(b)(2) of the Act.8
The purpose of the Prior Rule Filing
was to amend the Rules to ensure that
the Rules are consistent with the
anticipated industry-wide move to a
shorter standard settlement cycle from
the third business day after the trade
date (‘‘T+3’’) to the second business day
after the trade date (‘‘T+2’’). Although
approved by the Commission, the Prior
Rule Filing stated that the T2 Changes
would not become effective and would
not be implemented until an effective
date is established by a subsequent
proposed rule change to be submitted by
NSCC under Rule 19b–4 of the Act.9
NSCC is filing this proposed rule
change to (i) establish the Effective Date
for the T2 Changes, which is also the
compliance date for the Commission’s
amendment to Rule 15c6–1(a) under the
Act,10 (ii) incorporate the T2 Changes
into the Rules as of the Effective Date,
and (iii) amend the Legend on the cover
page of the Rules in order to include the
Effective Date and self-eliminating
language for the Legend, and remove the
Legend’s current reference to NSCC
making a subsequent rule filing with the
Commission as this proposal is that
subsequent rule filing.
2. Statutory Basis
Section 17A(b)(3)(F) of the Act
requires, in part, that the Rules be
designed to promote the prompt and
accurate clearance and settlement of
securities transactions.11 The proposed
rule change would establish the
7 See Securities Exchange Act Release No. 79734
(January 4, 2017), 82 FR 3030 (January 10, 2017)
(SR–NSCC–2016–007).
8 15 U.S.C. 78s(b)(2).
9 17 CFR 240.19b–4.
10 The Commission adopted an amendment to the
Settlement Cycle Rule (Rule 15c6–1(a)) under the
Act to shorten the standard settlement cycle for
most broker-dealer transactions from T+3 to T+2.
See Amendment to Securities Transaction
Settlement Cycle, Exchange Act Release No. 80295
(March 22, 2017), 82 FR 15564 (March 29, 2017).
11 15 U.S.C. 78q–1(b)(3)(F).
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
Effective Date for the T2 Changes and
provide NSCC members (‘‘Members’’)
with an understanding of when the T2
Changes will begin to affect them.
Knowing when the T2 Changes will
begin to affect Members would enable
them to timely fulfill their obligations to
NSCC, which would in turn ensure that
securities transactions would be
promptly and accurately cleared and
settled within the industry standard
settlement cycle and, by extension,
facilitate the prompt and accurate
clearance and settlement of securities
transactions submitted to NSCC for
clearing and settlement. Therefore,
NSCC believes that the proposed rule
change would promote the prompt and
accurate clearance and settlement of
securities transactions, consistent with
Section 17A(b)(3)(F) of the Act cited
above.
(B) Clearing Agency’s Statement on
Burden on Competition
NSCC does not believe that the
proposed rule change to (i) establish the
Effective Date for the T2 Changes, (ii)
incorporate the T2 Changes into the
Rules as of the Effective Date, and (iii)
amend the Legend on the cover page of
the Rules in order to include the
Effective Date and self-eliminating
language for the Legend, and remove the
Legend’s current reference to NSCC
making a subsequent rule filing with the
Commission would have any impact, or
impose any burden, on competition
because the proposed rule change is
intended to provide additional clarity in
the Rules regarding when the T2
Changes would become effective for
Members. As such, the proposed rule
change would not impact a particular
category of Members nor would it
impact particular types of Members’
businesses.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
NSCC has not received or solicited
any written comments relating to this
proposal. NSCC will notify the
Commission of any written comments
received by NSCC.
III. Date of Effectiveness of the
Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and paragraph (f) of Rule
19b–4 thereunder.13 At any time within
60 days of the filing of the proposed rule
12 15
13 17
E:\FR\FM\09AUN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
09AUN1
Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–
NSCC–2017–014 on the subject line.
sradovich on DSK3GMQ082PROD with NOTICES
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–NSCC–2017–014. 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 20549–1090 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 NSCC and on DTCC’s Web site
(https://dtcc.com/legal/sec-rulefilings.aspx). 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.
VerDate Sep<11>2014
17:00 Aug 08, 2017
Jkt 241001
All submissions should refer to File
Number SR–NSCC–2017–014 and
should be submitted on or before
August 30, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–16740 Filed 8–8–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81310; File No. SR–NYSE–
2017–36]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change for
Trading UTP Securities on Pillar, the
Exchange’s New Trading Technology
Platform, Including Orders and
Modifiers, Order Ranking and Display,
and Order Execution and Routing
August 3, 2017
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on July 28,
2017, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) 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 selfregulatory organization. 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 rules for
trading UTP Securities on Pillar, the
Exchange’s new trading technology
platform, including rules governing
orders and modifiers, order ranking and
display, and order execution and
routing. The proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
14 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Fmt 4703
Sfmt 4703
37257
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
self-regulatory organization 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 those 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On January 29, 2015, the Exchange
announced the implementation of Pillar,
which is an integrated trading
technology platform designed to use a
single specification for connecting to the
equities and options markets operated
by the Exchange and its affiliates, NYSE
Arca, Inc. (‘‘NYSE Arca’’) and NYSE
MKT LLC (‘‘NYSE MKT’’).4 NYSE Arca
Equities, Inc. (‘‘NYSE Arca Equities
[sic]),5 which operates the cash equities
trading platform for NYSE Arca, was the
first trading system to migrate to Pillar.6
4 See Trader Update dated January 29, 2015,
available here: www.nyse.com/pillar.
5 NYSE Arca Equities is a wholly-owned
corporation of NYSE Arca and operates as a facility
of NYSE Arca. NYSE Arca has filed a proposed rule
change to merge NYSE Arca Equities with and into
NYSE Arca. See Securities Exchange Act Release
No. 80929 (June 14, 2017), 82 FR 28157 (June 20,
2017) (Notice) (‘‘NYSE Arca Merger Filing’’). As
part of the NYSE Arca Merger Filing, NYSE Arca
has proposed that the NYSE Arca Equities rules will
be integrated in the NYSE Arca rule book using the
same rule number, but with an additional suffix of
‘‘-E’’ added to a rule. For example, ‘‘NYSE Arca
Equities Rule 7 (Equities Trading)’’ will become
‘‘NYSE Arca Rule 7–E (Equities Trading),’’ and
‘‘NYSE Arca Equities Rule 7.31’’ will become
‘‘NYSE Arca Rule 7.31–E.’’ Accordingly, if the
NYSE Arca Merger Filing is approved, all references
in this proposed rule change to an NYSE Arca
Equities rule should be deemed to be a reference to
an NYSE Arca rule with the same number and
added ‘‘-E’’ suffix.
6 In connection with the NYSE Arca
implementation of Pillar, NYSE Arca filed four rule
proposals relating to Pillar. See Securities Exchange
Act Release Nos. 74951 (May 13, 2015), 80 FR
28721 (May 19, 2015) (Notice) and 75494 (July 20,
2015), 80 FR 44170 (July 24, 2015) (SR–NYSEArca–
2015–38) (Approval Order of NYSE Arca Pillar I
Filing, adopting rules for Trading Sessions, Order
Ranking and Display, and Order Execution);
Securities Exchange Act Release Nos. 75497 (July
21, 2015), 80 FR 45022 (July 28, 2015) (Notice) and
76267 (October 26, 2015), 80 FR 66951 (October 30,
2015) (SR–NYSEArca–2015–56) (Approval Order of
NYSE Arca Pillar II Filing, adopting rules for Orders
and Modifiers and the Retail Liquidity Program);
Continued
E:\FR\FM\09AUN1.SGM
09AUN1
]]>Agencies
[Federal Register Volume 82, Number 152 (Wednesday, August 9, 2017)]
[Notices]
[Pages 37256-37257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16740]
[[Page 37256]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81306; File No. SR-NSCC-2017-014]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Establish the Effective Date of the Settlement Cycle
Rule Changes
August 3, 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 July 31, 2017, National Securities Clearing Corporation (``NSCC'')
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 clearing agency. NSCC filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(4) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
NSCC is filing this proposed rule change to (i) establish September
5, 2017 as the effective date (``Effective Date'') of the settlement
cycle rule changes (``T2 Changes'') submitted pursuant to rule filing
SR-NSCC-2016-007 (``Prior Rule Filing''),\5\ (ii) incorporate the T2
Changes into NSCC's Rules & Procedures (``Rules'') \6\ as of the
Effective Date, and (iii) amend the legend (``Legend'') on the cover
page of the Rules in order to include the Effective Date and self-
eliminating language for the Legend, and remove the Legend's current
reference to NSCC making a subsequent rule filing with the Commission
as this proposal is that subsequent rule filing.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 79356 (November 18,
2016), 81 FR 85299 (November 25, 2016) (SR-NSCC-2016-007).
\6\ Capitalized terms not defined herein are defined in the
Rules, available at https://www.dtcc.com/~/media/Files/Downloads/
legal/rules/nscc_rules.pdf.
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, the clearing agency 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 clearing agency has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
1. Purpose
On January 4, 2017, the Commission issued an order approving the
Prior Rule Filing,\7\ which was filed by NSCC pursuant to Section
19(b)(2) of the Act.\8\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 79734 (January 4,
2017), 82 FR 3030 (January 10, 2017) (SR-NSCC-2016-007).
\8\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The purpose of the Prior Rule Filing was to amend the Rules to
ensure that the Rules are consistent with the anticipated industry-wide
move to a shorter standard settlement cycle from the third business day
after the trade date (``T+3'') to the second business day after the
trade date (``T+2''). Although approved by the Commission, the Prior
Rule Filing stated that the T2 Changes would not become effective and
would not be implemented until an effective date is established by a
subsequent proposed rule change to be submitted by NSCC under Rule 19b-
4 of the Act.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
NSCC is filing this proposed rule change to (i) establish the
Effective Date for the T2 Changes, which is also the compliance date
for the Commission's amendment to Rule 15c6-1(a) under the Act,\10\
(ii) incorporate the T2 Changes into the Rules as of the Effective
Date, and (iii) amend the Legend on the cover page of the Rules in
order to include the Effective Date and self-eliminating language for
the Legend, and remove the Legend's current reference to NSCC making a
subsequent rule filing with the Commission as this proposal is that
subsequent rule filing.
---------------------------------------------------------------------------
\10\ The Commission adopted an amendment to the Settlement Cycle
Rule (Rule 15c6-1(a)) under the Act to shorten the standard
settlement cycle for most broker-dealer transactions from T+3 to
T+2. See Amendment to Securities Transaction Settlement Cycle,
Exchange Act Release No. 80295 (March 22, 2017), 82 FR 15564 (March
29, 2017).
---------------------------------------------------------------------------
2. Statutory Basis
Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to promote the prompt and accurate clearance and settlement
of securities transactions.\11\ The proposed rule change would
establish the Effective Date for the T2 Changes and provide NSCC
members (``Members'') with an understanding of when the T2 Changes will
begin to affect them. Knowing when the T2 Changes will begin to affect
Members would enable them to timely fulfill their obligations to NSCC,
which would in turn ensure that securities transactions would be
promptly and accurately cleared and settled within the industry
standard settlement cycle and, by extension, facilitate the prompt and
accurate clearance and settlement of securities transactions submitted
to NSCC for clearing and settlement. Therefore, NSCC believes that the
proposed rule change would promote the prompt and accurate clearance
and settlement of securities transactions, consistent with Section
17A(b)(3)(F) of the Act cited above.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
NSCC does not believe that the proposed rule change to (i)
establish the Effective Date for the T2 Changes, (ii) incorporate the
T2 Changes into the Rules as of the Effective Date, and (iii) amend the
Legend on the cover page of the Rules in order to include the Effective
Date and self-eliminating language for the Legend, and remove the
Legend's current reference to NSCC making a subsequent rule filing with
the Commission would have any impact, or impose any burden, on
competition because the proposed rule change is intended to provide
additional clarity in the Rules regarding when the T2 Changes would
become effective for Members. As such, the proposed rule change would
not impact a particular category of Members nor would it impact
particular types of Members' businesses.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
NSCC has not received or solicited any written comments relating to
this proposal. NSCC will notify the Commission of any written comments
received by NSCC.
III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4
thereunder.\13\ At any time within 60 days of the filing of the
proposed rule
[[Page 37257]]
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.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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-NSCC-2017-014 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-NSCC-2017-014. 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 20549-1090 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 NSCC and on
DTCC's Web site (https://dtcc.com/legal/sec-rule-filings.aspx). 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-NSCC-2017-014 and
should be submitted on or before August 30, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Eduardo A. Aleman,
Assistant Secretary.
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. 2017-16740 Filed 8-8-17; 8:45 am]
BILLING CODE 8011-01-P
