Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change Concerning Enhanced and New Tools for Recovery Scenarios, 4526-4527 [2018-01816]
Download as PDF
<![CDATA[
sradovich on DSK3GMQ082PROD with NOTICES
4526
Federal Register / Vol. 83, No. 21 / Wednesday, January 31, 2018 / Notices
terms and conditions of the Orders
granted under section 9(c).
10. In addition, BNPP and each
Applicant and Covered Person will
comply in all material respects with the
material terms and conditions of the
Plea Agreement and with the materials
terms of the FRB Order, the DFS Order
any other orders issued by regulatory or
enforcement agencies addressing the
Conduct. Applicants further state that
BNPP and its affiliates have undertaken
certain remedial measures, as described
in greater detail in the application.
These include certain remedial
measures as required by the Plea
Agreement, the FRB Order, and the DFS
Order, including improvements to the
oversight, internal controls and
compliance program, compliance risk
management program, and internal
audit program for FX trading.
Applicants state that BNPP and its
affiliates have taken a number of steps
to enhance its internal controls, policies
and procedures relating to its FX
activities. Specifically, Applicants
represent BNPP has devised and
implemented new global detailed FXspecific policies and procedures and a
comprehensive program to change the
culture of the business with the aim that
each individual within the business
understands their responsibility for
proper conduct and compliance.
Applicants also represent that BNPP has
globally rolled out culture and conduct
workshops and training on BNPP’s
Foreign Exchange Local Markets
remediation program. Additionally,
Applicants represent that supervisors
have been given increased tools to
directly oversee their staff and identify
conduct issues more effectively,
permanent cross-bank chat rooms have
been prohibited, and reverse trades are
monitored through software designed to
detect transactions (proprietary and
customer) that were not exposed to the
risk of the market and did not result in
a change of beneficial ownership.
11. As a result of the foregoing, the
Applicants submit that granting the
exemption as requested in the
application is consistent with the public
interest and the protection of investors.
12. To provide further assurance that
the exemptive relief being requested
herein would be consistent with the
public interest and the protection of the
investors, the Applicants agree that they
will, as soon as reasonably practical,
distribute to the boards of directors or
trustees of the Funds (‘‘Board’’) written
materials describing the circumstances
that led to the Plea Agreement, as well
as any effects on the Funds and the
application. The written materials will
include an offer to discuss the materials
VerDate Sep<11>2014
17:36 Jan 30, 2018
Jkt 244001
at an in-person meeting with the Board,
including the directors who are not
‘‘interested persons’’ of the Funds as
defined in section 2(a)(19) of the Act
and their ‘‘independent legal counsel’’
as defined in rule 0–1(a)(6) under the
Act, if any. The Applicants undertake to
provide the Boards with all information
concerning the Plea Agreement and the
application as necessary for those Funds
to fulfill their disclosure and other
obligations under the U.S. federal
securities laws and will provide them a
copy of the Judgment as entered by the
District Court.
13. Applicants state that certain of the
Applicants and their affiliates have
previously received an order under
section 9(c) of the Act, as the result of
conduct that triggered section 9(a), as
described in greater detail in the
application.
Applicants’ Conditions
Applicants agree that any order
granted by the Commission pursuant to
the application will be subject to the
following conditions:
1. Any temporary exemption granted
pursuant to the application will be
without prejudice to, and will not limit
the Commission’s rights in any manner
with respect to, any Commission
investigation of, or administrative
proceedings involving or against,
Covered Persons, including, without
limitation, the consideration by the
Commission of a permanent exemption
from section 9(a) of the Act requested
pursuant to the application or the
revocation or removal of any temporary
exemptions granted under the Act in
connection with the application.
2. None of BNPP, the Applicants or
any of the other Covered Persons will
employ the former employee of an
affiliate of the Pleading Entity or any
other person who subsequently may be
identified by the Pleading Entity or any
U.S. or non-U.S. regulatory or
enforcement agencies as having been
responsible for the Conduct in any
capacity without first making a further
application to the Commission pursuant
to section 9(c).
3. BNPP and each Applicant and
Covered Person will adopt and
implement policies and procedures
reasonably designed to ensure that it
will comply with the terms and
conditions of the Orders within 60 days
of the date of the Permanent Order or,
with respect to condition four, such
later date or dates as may be
contemplated by the FRB Order, the
DFS Order or any other orders issued by
regulatory or enforcement agencies
addressing the Conduct.
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
4. BNPP and each Applicant and
Covered Person will comply in all
material respects with the material
terms and conditions of the Plea
Agreement and with the material terms
of the FRB Order, the DFS Order and
any other orders issued by regulatory or
enforcement agencies addressing the
Conduct.
5. Applicants will provide written
notification to the Chief Counsel of the
Commission’s Division of Investment
Management with a copy to the Chief
Counsel of the Commission’s Division of
Enforcement of a material violation of
the terms and conditions of any of the
Orders within 30 days of discovery of
the material violation.
Temporary Order
The Commission has considered the
matter and finds that Applicants have
made the necessary showing to justify
granting a temporary exemption.
Accordingly,
It is hereby ordered, pursuant to
section 9(c) of the Act, that the
Applicants and any other Covered
Persons are granted a temporary
exemption from the provisions of
section 9(a), effective as the date of the
Guilty Plea, solely with respect to the
Guilty Plea entered into pursuant to the
Plea Agreement, subject to the
representations and conditions in the
application, until the Commission takes
final action on their application for a
permanent order.
By the Commission.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2018–01905 Filed 1–30–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82585; File No. SR–OCC–
2017–020]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Designation of Longer Period for
Commission Action on Proposed Rule
Change Concerning Enhanced and
New Tools for Recovery Scenarios
January 25, 2018.
On December 18, 2017, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–OCC–2017–020
(‘‘Proposed Rule Change’’) pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
1 15
E:\FR\FM\31JAN1.SGM
U.S.C. 78s(b)(1).
31JAN1
Federal Register / Vol. 83, No. 21 / Wednesday, January 31, 2018 / Notices
Rule 19b–4 thereunder,2 concerning
enhanced and new tools for recovery
scenarios.3 The Proposed Rule Change
was published for comment in the
Federal Register on December 26,
2017.4 To date, the Commission has
received one comment letter to the
Proposed Rule Change.5
Section 19(b)(2) of the Act 6 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 February 9,
2018. The Commission is extending this
45-day time period.
In order to provide the Commission
with sufficient time to consider the
Proposed Rule Change, the Commission
finds that it is appropriate to designate
a longer period within which to take
action on the Proposed Rule Change.
2 17
CFR 240.19b–4.
December 8, 2017, OCC also filed this
proposal as an advance notice SR–OCC–2017–809
(‘‘Advance Notice’’) with the Commission pursuant
to Section 806(e)(1) of Title VIII of the Dodd-Frank
Wall Street Reform and Consumer Protection Act,
entitled the Payment, Clearing, and Settlement
Supervision Act of 2010 (12 U.S.C. 5465(e)(1)) and
Rule 19b–4(n)(1)(i) of the Act (17 CFR 240.19b–
4(n)(1)(i)). Notice of filing of the Advance Notice
was published for comment in the Federal Register
on January 23, 2018. Securities Exchange Act
Release No. 34–82513 (Jan. 17, 2018), 83 FR 3244
(Jan. 23, 2018) (SR–OCC–2017–809).
On January 22, 2018, the Commission sent OCC
a request for additional information, which tolls the
Commission’s 60-day review period for the
Advance Notice. See Memorandum from Office of
Clearance and Settlement, Division of Trading and
Markets, dated January 23, 2018, available at
https://www.sec.gov/comments/sr-occ-2017-809/
occ2017809.htm. The new review period will be 60
days from the date the Commission receives the
information requested. See Section 806(e)(1). The
proposal in the Proposed Rule Change and the
Advance Notice shall not take effect until all
regulatory actions required with respect to the
proposal are completed.
4 Securities Exchange Act Release No. 34–82531
(Dec. 19, 2017), 82 FR 61107 (Dec. 26, 2017) (SR–
OCC–2017–020).
5 See Letter from Jacqueline H. Mesa, Senior Vice
President of Global Policy, FIA, dated Jan. 16, 2018,
available at https://www.sec.gov/comments/sr-occ2017-020/occ2017020.htm. Since the proposal
contained in the Proposed Rule Change was also
filed as an Advance Notice, the Commission is
considering all public comments received on the
proposal regardless of whether the comments are
submitted to the Proposed Rule Change or the
Advance Notice.
6 15 U.S.C. 78s(b)(2).
sradovich on DSK3GMQ082PROD with NOTICES
3 On
VerDate Sep<11>2014
17:36 Jan 30, 2018
Jkt 244001
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,7
designates March 26, 2018 as the date
by which the Commission shall either
approve, disapprove, or institute
proceedings to determine whether to
disapprove proposed rule change SR–
OCC–2017–020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–01816 Filed 1–30–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82586; File No. SR–OCC–
2017–021]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Designation of Longer Period for
Commission Action on Proposed Rule
Change Concerning Updates to and
Formalization of OCC’s Recovery and
Orderly Wind-Down Plan
January 25, 2018.
On December 8, 2017, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–OCC–2017–021
(‘‘Proposed Rule Change’’) pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
Rule 19b–4 thereunder,2 concerning
updates to and formalization of OCC’s
recovery and orderly wind-down plan.3
7 Id.
8 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 On December 8, 2017, OCC also filed this
proposal as an advance notice SR–OCC–2017–810
(‘‘Advance Notice’’) with the Commission pursuant
to Section 806(e)(1) of Title VIII of the Dodd-Frank
Wall Street Reform and Consumer Protection Act,
entitled the Payment, Clearing, and Settlement
Supervision Act of 2010 (12 U.S.C. 5465(e)(1)) and
Rule 19b–4(n)(1)(i) of the Act (17 CFR 240.19b–
4(n)(1)(i)). Notice of filing of the Advance Notice
was published for comment in the Federal Register
on January 23, 2018. Securities Exchange Act
Release No. 34–82514 (Jan. 17, 2018), 83 FR 3224
(Jan. 23, 2018) (SR–OCC–2017–810).
On January 22, 2018, the Commission sent OCC
a request for additional information, which tolls the
Commission’s 60-day review period for the
Advance Notice. See Memorandum from Office of
Clearance and Settlement, Division of Trading and
Markets, dated January 23, 2018, available at
https://www.sec.gov/comments/sr-occ-2017-810/
occ2017810.htm. The new review period will be 60
days from the date the Commission receives the
information requested. See Section 806(e)(1). The
proposal in the Proposed Rule Change and the
Advance Notice shall not take effect until all
regulatory actions required with respect to the
proposal are completed.
1 15
PO 00000
Frm 00065
Fmt 4703
Sfmt 9990
4527
The Proposed Rule Change was
published for comment in the Federal
Register on December 26, 2017.4 To
date, the Commission has not received
any comment letters to 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 February 9,
2018. The Commission is extending this
45-day time period.
In order to provide the Commission
with sufficient time to consider the
Proposed Rule Change, the Commission
finds that it is appropriate to designate
a longer period within which to take
action on the Proposed Rule Change.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,6
designates March 26, 2018 as the date
by which the Commission shall either
approve, disapprove, or institute
proceedings to determine whether to
disapprove proposed rule change SR–
OCC–2017–021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–01817 Filed 1–30–18; 8:45 am]
BILLING CODE 8011–01–P
4 Securities Exchange Act Release No. 34–82532
(Dec. 19, 2017), 82 FR 61072 (Dec. 26, 2017) (SR–
OCC–2017–021).
5 15 U.S.C. 78s(b)(2).
6 Id.
7 17 CFR 200.30–3(a)(31).
E:\FR\FM\31JAN1.SGM
31JAN1
]]>Agencies
[Federal Register Volume 83, Number 21 (Wednesday, January 31, 2018)]
[Notices]
[Pages 4526-4527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01816]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82585; File No. SR-OCC-2017-020]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Designation of Longer Period for Commission Action on
Proposed Rule Change Concerning Enhanced and New Tools for Recovery
Scenarios
January 25, 2018.
On December 18, 2017, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'')
proposed rule change SR-OCC-2017-020 (``Proposed Rule Change'')
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and
[[Page 4527]]
Rule 19b-4 thereunder,\2\ concerning enhanced and new tools for
recovery scenarios.\3\ The Proposed Rule Change was published for
comment in the Federal Register on December 26, 2017.\4\ To date, the
Commission has received one comment letter to the Proposed Rule
Change.\5\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ On December 8, 2017, OCC also filed this proposal as an
advance notice SR-OCC-2017-809 (``Advance Notice'') with the
Commission pursuant to Section 806(e)(1) of Title VIII of the Dodd-
Frank Wall Street Reform and Consumer Protection Act, entitled the
Payment, Clearing, and Settlement Supervision Act of 2010 (12 U.S.C.
5465(e)(1)) and Rule 19b-4(n)(1)(i) of the Act (17 CFR 240.19b-
4(n)(1)(i)). Notice of filing of the Advance Notice was published
for comment in the Federal Register on January 23, 2018. Securities
Exchange Act Release No. 34-82513 (Jan. 17, 2018), 83 FR 3244 (Jan.
23, 2018) (SR-OCC-2017-809).
On January 22, 2018, the Commission sent OCC a request for
additional information, which tolls the Commission's 60-day review
period for the Advance Notice. See Memorandum from Office of
Clearance and Settlement, Division of Trading and Markets, dated
January 23, 2018, available at https://www.sec.gov/comments/sr-occ-2017-809/occ2017809.htm. The new review period will be 60 days from
the date the Commission receives the information requested. See
Section 806(e)(1). The proposal in the Proposed Rule Change and the
Advance Notice shall not take effect until all regulatory actions
required with respect to the proposal are completed.
\4\ Securities Exchange Act Release No. 34-82531 (Dec. 19,
2017), 82 FR 61107 (Dec. 26, 2017) (SR-OCC-2017-020).
\5\ See Letter from Jacqueline H. Mesa, Senior Vice President of
Global Policy, FIA, dated Jan. 16, 2018, available at https://www.sec.gov/comments/sr-occ-2017-020/occ2017020.htm. Since the
proposal contained in the Proposed Rule Change was also filed as an
Advance Notice, the Commission is considering all public comments
received on the proposal regardless of whether the comments are
submitted to the Proposed Rule Change or the Advance Notice.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \6\ 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 February 9, 2018. The Commission is extending this 45-day time
period.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
In order to provide the Commission with sufficient time to consider
the Proposed Rule Change, the Commission finds that it is appropriate
to designate a longer period within which to take action on the
Proposed Rule Change.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\7\ designates March 26, 2018 as the date by which the Commission
shall either approve, disapprove, or institute proceedings to determine
whether to disapprove proposed rule change SR-OCC-2017-020.
---------------------------------------------------------------------------
\7\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-01816 Filed 1-30-18; 8:45 am]
BILLING CODE 8011-01-P
