Self-Regulatory Organizations; BOX Exchange LLC; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 2, To Adopt Rules Governing the Trading of Equity Securities on the Exchange Through a Facility of the Exchange Known as the Boston Security Token Exchange LLC, 21906-21907 [2020-08212]
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21906
Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Notices
investors and listed companies.’’ 26 The
fact that this market is competitive has
also long been recognized by the courts.
In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit
stated as follows: ‘‘[n]o one disputes
that competition for order flow is
‘fierce.’ . . . As the SEC explained, ‘[i]n
the U.S. national market system, buyers
and sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
dealers’ . . ..’’.27 Accordingly, the
Exchange does not believe its proposed
fee changes impose any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
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 28 and paragraph (f) of Rule
19b–4 29 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 will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
jbell on DSKJLSW7X2PROD with NOTICES
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.
26 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
27 NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir.
2010) (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782–83
(December 9, 2008) (SR–NYSEArca–2006–21)).
28 15 U.S.C. 78s(b)(3)(A).
29 17 CFR 240.19b–4(f).
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Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–88634; File No. SR–BOX–
2019–19]
• 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–
CboeBZX–2020–033 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–CboeBZX–2020–033. 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 the Exchange. 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–CboeBZX–2020–033 and
should be submitted on or before May
11, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–08210 Filed 4–17–20; 8:45 am]
BILLING CODE 8011–01–P
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Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Designation
of Longer Period for Commission
Action on Proceedings To Determine
Whether To Approve or Disapprove a
Proposed Rule Change, as Modified by
Amendment No. 2, To Adopt Rules
Governing the Trading of Equity
Securities on the Exchange Through a
Facility of the Exchange Known as the
Boston Security Token Exchange LLC
April 14, 2020.
On September 27, 2019, BOX
Exchange LLC (the ‘‘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 to adopt rules governing the
listing and trading of equity securities
that would be NMS stocks on the
Exchange through a facility of the
Exchange known as the Boston Security
Token Exchange LLC. The proposed
rule change was published for comment
in the Federal Register on October 18,
2019.3
On November 29, 2019, pursuant to
Section 19(b)(2) of the Act,4 the
Commission designated a longer period
within which to approve the proposed
rule change, disapprove the proposed
rule change, or institute proceedings to
determine whether to approve or
disapprove the proposed rule change.5
On December 26, 2019, the Exchange
filed Amendment No. 1 to the proposed
rule change, which amended the
proposed rule change as originally
filed.6 On January 16, 2020, the
Commission published Amendment No.
1 for notice and comment and instituted
proceedings to determine whether to
approve or disapprove the proposed
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 87287
(October 11, 2019), 84 FR 56022 (October 18, 2019)
(‘‘Original Notice’’).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 87641
(November 29, 2019), 84 FR 66701 (December 5,
2019). The Commission designated January 16,
2020, as the date by which the Commission shall
approve or disapprove, or institute proceedings to
determine whether to approve or disapprove, the
proposed rule change.
6 When the Exchange filed Amendment No. 1 to
BOX–2019–19, it also submitted the text of the
partial amendment as a comment letter to the filing,
which the Commission made publicly available at
https://www.sec.gov/comments/sr-box-2019-19/
srbox201919-6613675-202939.pdf (‘‘Amendment
No. 1’’).
2 17
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Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Notices
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rule change, as modified by Amendment
No. 1.7 On February 19, 2020, the
Exchange filed Amendment No. 2 to the
proposed rule change, which replaced
and superseded the proposed rule
change as originally filed.8 The
Commission published the proposed
rule change, as modified by Amendment
No. 2, for comment in the Federal
Register on March 6, 2020.9
Section 19(b)(2) of the Act 10 provides
that, after initiating disapproval
proceedings, the Commission shall issue
an order approving or disapproving the
proposed rule change not later than 180
days after the date of publication of
notice of filing of the proposed rule
change. The Commission may extend
the period for issuing an order
approving or disapproving the proposed
rule change, however, by not more than
60 days if the Commission determines
that a longer period is appropriate and
publishes the reasons for such
determination. The proposed rule
change was published for notice and
comment in the Federal Register on
October 18, 2019.11 April 15, 2020 is
180 days from that date, and June 14,
2020 is 240 days from that date.
The Commission finds it appropriate
to designate a longer period within
which to issue an order approving or
disapproving 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,12 designates June 14,
2020 as the date by which the
Commission shall either approve or
disapprove the proposed rule change
(File No. SR–BOX–2019–19).
7 See Securities Exchange Act Release No. 88002
(January 16, 2020), 85 FR 4040 (January 23, 2020)
(‘‘Order Instituting Proceedings’’ or ‘‘OIP’’).
8 In filing Amendment No. 2, the Exchange
responded to questions raised in comment letters
and OIP. See Letter from Lisa Fall, President, BOX
Exchange LLC, to Vanessa Countryman, Secretary,
Commission, dated February 19, 2020, available at
https://www.sec.gov/comments/sr-box-2019-19/
srbox201919-6840937-208871.pdf.
9 See Securities Exchange Act Release No. 88300
(February 28, 2020), 85 FR 13242 (March 6, 2020).
Comments on the proposed rule change can be
found at: https://www.sec.gov/comments/sr-box2019-19/srbox201919.htm. The Exchange submitted
a response to comment letters and OIP, which the
Commission made publicly available at https://
www.sec.gov/comments/sr-box-2019-19/
srbox201919-7055631-215391.pdf.
10 15 U.S.C. 78s(b)(2).
11 See Original Notice, supra note 3.
12 15 U.S.C. 78s(b)(2).
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–08212 Filed 4–17–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88628; File No. SR–ICC–
2020–007]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Proposed
Rule Change Relating to the ICC
Clearing Rules
April 14, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 1 and
Rule 19b–4, 2 notice is hereby given that
on April 10, 2020, ICE Clear Credit LLC
(‘‘ICC’’) filed with the Securities and
Exchange Commission the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared primarily by ICC. 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
The principal purpose of the
proposed rule change is to revise the
ICC Clearing Rules (the ‘‘Rules’’) related
to ICC membership requirements.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, ICC
included statements concerning the
purpose of and basis for the proposed
rule change, security-based swap
submission, or advance notice and
discussed any comments it received on
the proposed rule change, securitybased swap submission, or advance
notice. The text of these statements may
be examined at the places specified in
Item IV below. ICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
ICC proposes amendments to Chapter
2 of the ICC Rules relating to
13 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
membership requirements. ICC believes
that such revisions will facilitate the
prompt and accurate clearance and
settlement of securities transactions and
derivative agreements, contracts, and
transactions for which it is responsible.
ICC proposes to make such changes
effective following Commission
approval of the proposed rule change.
The proposed revisions are described in
detail as follows.
ICC proposes to amend ICC Rule
201(b), which contains membership
requirements of ICC and includes fitness
criteria, financial standards, operational
standards, and registration
qualifications with applicable regulatory
authorities. ICC proposes to add new
subsection (xiv) to ICC Rule 201(b) to
require Clearing Participants (‘‘CPs’’) to
participate in default management
simulations, new technology testing and
other exercises, as notified by ICC from
time to time.
ICC proposes further updates to ICC
Rule 206, which contains certain notice
requirements for CPs. Currently, under
ICC Rule 206(a), a CP must immediately
notify ICC, orally and in writing, if it is
subject to an event described in ICC
Rule 206(a). Such events include
material adverse changes in financial
condition, restrictions or limitations on
certain business conducted by the CP,
and becoming insolvent, among others.
Amended ICC Rule 206(a) removes the
oral notification requirement and only
requires written notification to ICC. ICC
proposes to amend ICC Rule 206(c)
which requires CPs that are brokerdealers to notify ICC of any matter
required to be notified to FINRA under
FINRA Rule 3070, as well as any matter
required to be notified to the
Commission if a broker-dealer and to
the Commodity Futures Trading
Commission (‘‘CFTC’’) if a futures
commission merchant under applicable
Commission and CFTC regulations. ICC
proposes replacing ‘‘FINRA Rule 3070’’
with ‘‘FINRA Rule 4530(a)(1)(A),(C),(E)
and 4530(b) (or any similar rules),’’ as
FINRA Rule 3070 is no longer
applicable and has been superseded by
FINRA Rule 4530.
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act 3
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions, and to the extent
applicable, derivative agreements,
contracts and transactions, to assure the
safeguarding of securities and funds
which are in the custody or control of
1 15
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]]>Agencies
[Federal Register Volume 85, Number 76 (Monday, April 20, 2020)]
[Notices]
[Pages 21906-21907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08212]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88634; File No. SR-BOX-2019-19]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of
Designation of Longer Period for Commission Action on Proceedings To
Determine Whether To Approve or Disapprove a Proposed Rule Change, as
Modified by Amendment No. 2, To Adopt Rules Governing the Trading of
Equity Securities on the Exchange Through a Facility of the Exchange
Known as the Boston Security Token Exchange LLC
April 14, 2020.
On September 27, 2019, BOX Exchange LLC (the ``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 to adopt rules
governing the listing and trading of equity securities that would be
NMS stocks on the Exchange through a facility of the Exchange known as
the Boston Security Token Exchange LLC. The proposed rule change was
published for comment in the Federal Register on October 18, 2019.\3\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 87287 (October 11,
2019), 84 FR 56022 (October 18, 2019) (``Original Notice'').
---------------------------------------------------------------------------
On November 29, 2019, pursuant to Section 19(b)(2) of the Act,\4\
the Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to approve or disapprove the proposed
rule change.\5\ On December 26, 2019, the Exchange filed Amendment No.
1 to the proposed rule change, which amended the proposed rule change
as originally filed.\6\ On January 16, 2020, the Commission published
Amendment No. 1 for notice and comment and instituted proceedings to
determine whether to approve or disapprove the proposed
[[Page 21907]]
rule change, as modified by Amendment No. 1.\7\ On February 19, 2020,
the Exchange filed Amendment No. 2 to the proposed rule change, which
replaced and superseded the proposed rule change as originally
filed.\8\ The Commission published the proposed rule change, as
modified by Amendment No. 2, for comment in the Federal Register on
March 6, 2020.\9\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 87641 (November 29,
2019), 84 FR 66701 (December 5, 2019). The Commission designated
January 16, 2020, as the date by which the Commission shall approve
or disapprove, or institute proceedings to determine whether to
approve or disapprove, the proposed rule change.
\6\ When the Exchange filed Amendment No. 1 to BOX-2019-19, it
also submitted the text of the partial amendment as a comment letter
to the filing, which the Commission made publicly available at
https://www.sec.gov/comments/sr-box-2019-19/srbox201919-6613675-202939.pdf (``Amendment No. 1'').
\7\ See Securities Exchange Act Release No. 88002 (January 16,
2020), 85 FR 4040 (January 23, 2020) (``Order Instituting
Proceedings'' or ``OIP'').
\8\ In filing Amendment No. 2, the Exchange responded to
questions raised in comment letters and OIP. See Letter from Lisa
Fall, President, BOX Exchange LLC, to Vanessa Countryman, Secretary,
Commission, dated February 19, 2020, available at https://www.sec.gov/comments/sr-box-2019-19/srbox201919-6840937-208871.pdf.
\9\ See Securities Exchange Act Release No. 88300 (February 28,
2020), 85 FR 13242 (March 6, 2020). Comments on the proposed rule
change can be found at: https://www.sec.gov/comments/sr-box-2019-19/srbox201919.htm. The Exchange submitted a response to comment
letters and OIP, which the Commission made publicly available at
https://www.sec.gov/comments/sr-box-2019-19/srbox201919-7055631-215391.pdf.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \10\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of filing of the proposed rule
change. The Commission may extend the period for issuing an order
approving or disapproving the proposed rule change, however, by not
more than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on October 18, 2019.\11\ April 15, 2020 is 180 days
from that date, and June 14, 2020 is 240 days from that date.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
\11\ See Original Notice, supra note 3.
---------------------------------------------------------------------------
The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving 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,\12\ designates June 14, 2020 as the date by which the
Commission shall either approve or disapprove the proposed rule change
(File No. SR-BOX-2019-19).
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-08212 Filed 4-17-20; 8:45 am]
BILLING CODE 8011-01-P
