Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period Related to FINRA Rule 6121.02 (Market-Wide Circuit Breakers in NMS Stocks), 14981-14983 [2019-07243]
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<![CDATA[
Federal Register / Vol. 84, No. 71 / Friday, April 12, 2019 / Notices
CFR), informing the NRC that the
licensee has successfully performed the
required inspections, tests, and
analyses, and that the acceptance
criteria are met for:
VEGP Unit 3 ITAAC
2.2.01.04a.ii (96), 2.2.03.08c.iv.01
(183), 2.2.03.08c.iv.03 (185),
2.2.03.08c.v.01 (187), 2.2.03.08d
(200), 2.3.05.03b.i (346), and
3.3.00.12 (818).
VEGP Unit 4 ITAAC
2.2.01.04a.ii (96), 2.3.05.03a.i (343),
and 3.3.00.12 (818).
The ITAAC for VEGP Unit 3 are in
Appendix C of the VEGP Unit 3
combined license (ADAMS Accession
No. ML14100A106). The ITAAC for
VEGP Unit 4 are in Appendix C of VEGP
Unit 4 combined license (ADAMS
Accession No. ML14100A135).
jbell on DSK30RV082PROD with NOTICES
II. NRC Staff Determination of
Completion of ITAAC
The NRC staff has determined that the
specified inspections, tests, and
analyses have been successfully
completed, and that the specified
acceptance criteria are met. The
documentation of the NRC staff’s
determination is in the ITAAC Closure
Verification Evaluation Form (VEF) for
each ITAAC. The VEF is a form that
represents the NRC staff’s structured
process for reviewing ICNs. Each ICN
presents a narrative description of how
the ITAAC was completed. The NRC’s
ICN review process involves a
determination on whether, among other
things: (1) Each ICN provides sufficient
information, including a summary of the
methodology used to perform the
ITAAC, to demonstrate that the
inspections, tests, and analyses have
been successfully completed; (2) each
ICN provides sufficient information to
demonstrate that the acceptance criteria
of the ITAAC are met; and (3) any NRC
inspections for the ITAAC have been
completed and any ITAAC findings
associated with that ITAAC have been
closed.
The NRC staff’s determination of the
successful completion of these ITAAC is
based on information available at this
time and is subject to the licensee’s
ability to maintain the condition that
the acceptance criteria are met. If the
staff receives new information that
suggests the staff’s determination on any
of these ITAAC is incorrect, then the
staff will determine whether to reopen
that ITAAC (including withdrawing the
staff’s determination on that ITAAC).
The NRC staff’s determination will be
used to support a subsequent finding,
pursuant to 10 CFR 52.103(g), at the end
of construction that all acceptance
VerDate Sep<11>2014
18:18 Apr 11, 2019
Jkt 247001
criteria in the combined license are met.
The ITAAC closure process is not
finalized for these ITAAC until the NRC
makes an affirmative finding under 10
CFR 52.103(g). Any future updates to
the status of these ITAAC will be
reflected on the NRC’s website at https://
www.nrc.gov/reactors/new-reactors/
oversight/itaac.html.
This notice fulfills the staff’s
obligations under 10 CFR 52.99(e)(1) to
publish a notice in the Federal Register
of the NRC staff’s determination of the
successful completion of inspections,
tests and analyses.
Vogtle Electric Generating Plant Unit 3,
Docket No. 5200025
A complete list of the review status
for VEGP Unit 3 ITAAC, including the
submission date and ADAMS Accession
Numbers for each ICN received, each
VEF, and for the inspection reports
associated with these specific ITAAC,
can be found on the NRC’s website at
https://www.nrc.gov/reactors/newreactors/new-licensing-files/vog3icnsr.pdf.
Vogtle Electric Generating Plant Unit 4,
Docket No. 5200026
A complete list of the review status
for VEGP Unit 4 ITAAC, including the
submission date and ADAMS Accession
Numbers for each ICN received, each
VEF, and for the inspection reports
associated with these specific ITAAC,
can be found on the NRC’s website at
https://www.nrc.gov/reactors/newreactors/new-licensing-files/vog4icnsr.pdf.
Dated at Rockville, Maryland, this 9th day
of April, 2019.
For the Nuclear Regulatory Commission.
Jennifer L. Dixon-Herrity,
Chief, Licensing Branch 2, Division of
Licensing, Siting, and Environmental
Analysis, Office of New Reactors.
[FR Doc. 2019–07281 Filed 4–11–19; 8:45 am]
BILLING CODE 7590–01–P
PO 00000
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85547; File No. SR–FINRA–
2019–010]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Pilot
Period Related to FINRA Rule 6121.02
(Market-Wide Circuit Breakers in NMS
Stocks)
April 8, 2019.
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 April 5,
2019, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. 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
FINRA is proposing to extend the
pilot period related to FINRA Rule
6121.02 (Market-wide Circuit Breakers
in NMS Stocks) to the close of business
on October 18, 2019.
The text of the proposed rule change
is available on FINRA’s website at
https://www.finra.org, at the principal
office of FINRA 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,
FINRA 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. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 84, No. 71 / Friday, April 12, 2019 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Rule 6121.02 provides a methodology
for determining when to halt trading in
all NMS Stocks due to extraordinary
market volatility, i.e., market-wide
circuit breakers. The market-wide
circuit breaker mechanism under Rule
6121.02 was approved by the
Commission to operate on a pilot basis,
the term of which was to coincide with
the pilot period for the Plan to Address
Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS
(the ‘‘LULD Plan’’),4 including any
extensions to the pilot period for the
LULD Plan.5 The Commission
published an amendment to the LULD
Plan for it to operate on a permanent,
rather than pilot, basis.6
FINRA proposes to amend Rule
6121.02 to untie the pilot’s effectiveness
from that of the LULD Plan and to
extend the pilot’s effectiveness to the
close of business on October 18, 2019.
FINRA does not propose any additional
changes to Rule 6121.02.
Market-wide circuit breakers under
Rule 6121.02 provide an important,
automatic mechanism that is invoked to
promote stability and investor
confidence during a period of
significant stress when securities
markets experience extreme broad-based
declines. All U.S. equity exchanges have
rules similar to Rule 6121.02 relating to
market-wide circuit breakers, which are
designed to slow the effects of extreme
price movement through coordinated
trading halts across securities markets
when severe price declines reach levels
that may exhaust market liquidity.
Market-wide circuit breakers provide for
trading halts in all equities and options
markets during a severe market decline
as measured by a single-day decline in
the S&P 500 Index.
Rule 6121.02 generally provides that,
in the event of a Level 1, Level 2 or
Level 3 Market Decline,7 as determined
by a primary listing market and publicly
disseminated, FINRA shall halt trading
jbell on DSK30RV082PROD with NOTICES
4 See
Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012) (the
‘‘Limit Up-Limit Down Release’’).
5 See Securities Exchange Act Release Nos. 67090
(May 31, 2012), 77 FR 33531 (June 6, 2012) (Order
Approving File No. SR–FINRA–2011–054).
6 See Securities Exchange Act Release Nos. 84843
(December 18, 2018), 83 FR 66464 (December 26,
2018) (Amendment No. 18 Proposing Release).
7 For purposes of the Rule, a ‘‘Market Decline’’
means a decline in the value of the S&P 500® Index
between 9:30 a.m. and 4:00 p.m. on a trading day
as compared to the closing value of the S&P 500®
Index for the immediately preceding trading day.
VerDate Sep<11>2014
18:18 Apr 11, 2019
Jkt 247001
otherwise than on an exchange in all
NMS stocks and shall not permit the
resumption of trading for the time
periods specified by the primary listing
market. Rule 6121.02 also provides that,
if trading is halted in all NMS stocks for
a Level 1 or a Level 2 Market Decline,
FINRA will halt trading otherwise than
on an exchange in all NMS stocks until
trading has resumed on the primary
listing market; if, however, the primary
listing market does not reopen a security
within 15 minutes following the end of
the 15-minute halt period, FINRA may
permit the resumption of trading
otherwise than on an exchange in that
security if trading in the security has
commenced on at least one other
national securities exchange. If a Level
3 Market Decline occurs at any time
during the trading day, FINRA shall halt
trading otherwise than on an exchange
in all NMS stocks until the primary
listing market opens the next trading
day.
FINRA intends to file a separate
proposed rule change with the
Commission to operate Rule 6121.02 on
a permanent, rather than pilot, basis.
Extending the effectiveness of Rule
6121.02 to the close of business on
October 18, 2019 should provide the
Commission adequate time to consider
whether to approve FINRA’s separate
proposal to operate the market-wide
circuit breaker mechanism under Rule
6121.02 on a permanent basis.
FINRA has filed the proposed rule
change for immediate effectiveness and
has requested that the SEC waive the
requirement that the proposed rule
change not become operative for 30 days
after the date of the filing, so FINRA can
implement the proposed rule change
immediately.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,8 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to, and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. FINRA also believes that
the proposed rule change promotes just
and equitable principles of trade in that
it promotes transparency and uniformity
across markets concerning when and
how to halt trading in all stocks as a
result of extraordinary market volatility.
Extending the market-wide circuit
8 15
PO 00000
U.S.C. 78o–3(b)(6).
Frm 00072
Fmt 4703
Sfmt 4703
breaker pilot under Rule 6121.02 for an
additional six months would ensure the
continued, uninterrupted operation of a
consistent mechanism to halt trading
across the U.S. markets while the
Commission considers whether to
approve the pilot on a permanent basis.
The proposed rule change would thus
promote fair and orderly markets and
the protection of investors and the
public interest. Based on the foregoing,
FINRA believes the benefits to market
participants from the market-wide
circuit breaker mechanism under Rule
6121.02 should continue on a pilot basis
while the Commission considers
whether to permanently approve Rule
6121.02.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. FINRA does
not believe that the proposed rule
change implicates any competitive
issues because the proposal would
ensure the continued, uninterrupted
operation of a consistent mechanism to
halt trading across the U.S. markets
while the Commission considers
whether to permanently approve the
market-wide circuit breaker mechanism
under Rule 6121.02. Further, FINRA
understands that the other selfregulatory organizations will file
proposals to extend their rules regarding
the market-wide circuit breaker pilot
with the Commission so that the marketwide circuit breaker mechanism may
continue uninterrupted while the
Commission considers whether to
approve its operation on a permanent
basis.
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 from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
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Federal Register / Vol. 84, No. 71 / Friday, April 12, 2019 / Notices
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) thereunder.10
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii),12 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.
FINRA has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
upon filing. Extending the pilot for an
additional six months will allow the
uninterrupted operation of the existing
pilot to halt trading across the U.S.
markets while the Commission
considers whether to approve the pilot
on a permanent basis. The extension
simply maintains the status quo.
Therefore, the Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Commission hereby designates the
proposed rule change to be operative
upon filing.13
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.
Comments may be submitted by any of
the following methods:
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–FINRA–2019–010. 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 website (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 website 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 FINRA. All comments received
will be posted without change. Persons
submitting comments are cautioned that
we do not redact or edit personal
identifying information from comment
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–FINRA–
2019–010, and should be submitted on
or before May 3, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
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–
FINRA–2019–010 on the subject line.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–07243 Filed 4–11–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85541; File No. SR–
PEARL–2019–12]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX
PEARL Fee Schedule
April 8, 2019.
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 March 27,
2019, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the MIAX PEARL Fee Schedule
(the ‘‘Fee Schedule’’) to establish certain
non-transaction fees applicable to
participants and new members trading
options on and/or using services
provided by MIAX PEARL.
MIAX PEARL commenced operations
as a national securities exchange
registered under Section 6 of the Act 3
on February 6, 2017.4 The Exchange
adopted its transaction fees and certain
of its non-transaction fees in its filing
SR–PEARL–2017–10.5
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
on April 1, 2019.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’s principal
office, and at the Commission’s Public
Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78f.
4 See Securities Exchange Act Release No. 79543
(December 13, 2016), 81 FR 92901 (December 20,
2016) (File No. 10–227) (order approving
application of MIAX PEARL, LLC for registration as
a national securities exchange).
5 See Securities Exchange Act Release No. 80061
(February 17, 2017), 82 FR 11676 (February 24,
2017) (SR–PEARL–2017–10).
2 17
jbell on DSK30RV082PROD with NOTICES
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 Id.
12 17 CFR 240.19b–4(f)(6)(iii).
13 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
10 17
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18:18 Apr 11, 2019
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14 17
PO 00000
CFR 200.30–3(a)(12).
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E:\FR\FM\12APN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 71 (Friday, April 12, 2019)]
[Notices]
[Pages 14981-14983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07243]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85547; File No. SR-FINRA-2019-010]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Pilot Period Related to FINRA Rule
6121.02 (Market-Wide Circuit Breakers in NMS Stocks)
April 8, 2019.
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 April 5, 2019, Financial Industry Regulatory Authority, Inc.
(``FINRA'') 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 FINRA. FINRA has designated
the proposed rule change as constituting a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ which
renders the proposal effective upon receipt of this filing by the
Commission. 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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to extend the pilot period related to FINRA Rule
6121.02 (Market-wide Circuit Breakers in NMS Stocks) to the close of
business on October 18, 2019.
The text of the proposed rule change is available on FINRA's
website at https://www.finra.org, at the principal office of FINRA 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, FINRA 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. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
[[Page 14982]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Rule 6121.02 provides a methodology for determining when to halt
trading in all NMS Stocks due to extraordinary market volatility, i.e.,
market-wide circuit breakers. The market-wide circuit breaker mechanism
under Rule 6121.02 was approved by the Commission to operate on a pilot
basis, the term of which was to coincide with the pilot period for the
Plan to Address Extraordinary Market Volatility Pursuant to Rule 608 of
Regulation NMS (the ``LULD Plan''),\4\ including any extensions to the
pilot period for the LULD Plan.\5\ The Commission published an
amendment to the LULD Plan for it to operate on a permanent, rather
than pilot, basis.\6\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit Down
Release'').
\5\ See Securities Exchange Act Release Nos. 67090 (May 31,
2012), 77 FR 33531 (June 6, 2012) (Order Approving File No. SR-
FINRA-2011-054).
\6\ See Securities Exchange Act Release Nos. 84843 (December 18,
2018), 83 FR 66464 (December 26, 2018) (Amendment No. 18 Proposing
Release).
---------------------------------------------------------------------------
FINRA proposes to amend Rule 6121.02 to untie the pilot's
effectiveness from that of the LULD Plan and to extend the pilot's
effectiveness to the close of business on October 18, 2019. FINRA does
not propose any additional changes to Rule 6121.02.
Market-wide circuit breakers under Rule 6121.02 provide an
important, automatic mechanism that is invoked to promote stability and
investor confidence during a period of significant stress when
securities markets experience extreme broad-based declines. All U.S.
equity exchanges have rules similar to Rule 6121.02 relating to market-
wide circuit breakers, which are designed to slow the effects of
extreme price movement through coordinated trading halts across
securities markets when severe price declines reach levels that may
exhaust market liquidity. Market-wide circuit breakers provide for
trading halts in all equities and options markets during a severe
market decline as measured by a single-day decline in the S&P 500
Index.
Rule 6121.02 generally provides that, in the event of a Level 1,
Level 2 or Level 3 Market Decline,\7\ as determined by a primary
listing market and publicly disseminated, FINRA shall halt trading
otherwise than on an exchange in all NMS stocks and shall not permit
the resumption of trading for the time periods specified by the primary
listing market. Rule 6121.02 also provides that, if trading is halted
in all NMS stocks for a Level 1 or a Level 2 Market Decline, FINRA will
halt trading otherwise than on an exchange in all NMS stocks until
trading has resumed on the primary listing market; if, however, the
primary listing market does not reopen a security within 15 minutes
following the end of the 15-minute halt period, FINRA may permit the
resumption of trading otherwise than on an exchange in that security if
trading in the security has commenced on at least one other national
securities exchange. If a Level 3 Market Decline occurs at any time
during the trading day, FINRA shall halt trading otherwise than on an
exchange in all NMS stocks until the primary listing market opens the
next trading day.
---------------------------------------------------------------------------
\7\ For purposes of the Rule, a ``Market Decline'' means a
decline in the value of the S&P 500[supreg] Index between 9:30 a.m.
and 4:00 p.m. on a trading day as compared to the closing value of
the S&P 500[supreg] Index for the immediately preceding trading day.
---------------------------------------------------------------------------
FINRA intends to file a separate proposed rule change with the
Commission to operate Rule 6121.02 on a permanent, rather than pilot,
basis. Extending the effectiveness of Rule 6121.02 to the close of
business on October 18, 2019 should provide the Commission adequate
time to consider whether to approve FINRA's separate proposal to
operate the market-wide circuit breaker mechanism under Rule 6121.02 on
a permanent basis.
FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days after the
date of the filing, so FINRA can implement the proposed rule change
immediately.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\8\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to, and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. FINRA also
believes that the proposed rule change promotes just and equitable
principles of trade in that it promotes transparency and uniformity
across markets concerning when and how to halt trading in all stocks as
a result of extraordinary market volatility. Extending the market-wide
circuit breaker pilot under Rule 6121.02 for an additional six months
would ensure the continued, uninterrupted operation of a consistent
mechanism to halt trading across the U.S. markets while the Commission
considers whether to approve the pilot on a permanent basis. The
proposed rule change would thus promote fair and orderly markets and
the protection of investors and the public interest. Based on the
foregoing, FINRA believes the benefits to market participants from the
market-wide circuit breaker mechanism under Rule 6121.02 should
continue on a pilot basis while the Commission considers whether to
permanently approve Rule 6121.02.
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\8\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. FINRA does not believe that the
proposed rule change implicates any competitive issues because the
proposal would ensure the continued, uninterrupted operation of a
consistent mechanism to halt trading across the U.S. markets while the
Commission considers whether to permanently approve the market-wide
circuit breaker mechanism under Rule 6121.02. Further, FINRA
understands that the other self-regulatory organizations will file
proposals to extend their rules regarding the market-wide circuit
breaker pilot with the Commission so that the market-wide circuit
breaker mechanism may continue uninterrupted while the Commission
considers whether to approve its operation on a permanent basis.
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 from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section
[[Page 14983]]
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. FINRA has asked the
Commission to waive the 30-day operative delay so that the proposal may
become operative upon filing. Extending the pilot for an additional six
months will allow the uninterrupted operation of the existing pilot to
halt trading across the U.S. markets while the Commission considers
whether to approve the pilot on a permanent basis. The extension simply
maintains the status quo. Therefore, the Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest. The Commission hereby designates the
proposed rule change to be operative upon filing.\13\
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\11\ Id.
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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. 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 [email protected]. Please include
File Number SR-FINRA-2019-010 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-FINRA-2019-010. 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 website (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 website 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 FINRA. All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-FINRA-2019-010, and should be submitted
on or before May 3, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-07243 Filed 4-11-19; 8:45 am]
BILLING CODE 8011-01-P
