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]

Download as PDF 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). VerDate Sep<11>2014 18:34 Apr 17, 2020 Jkt 250001 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 30 17 PO 00000 CFR 200.30–3(a)(12). Frm 00085 Fmt 4703 Sfmt 4703 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 E:\FR\FM\20APN1.SGM 20APN1 Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Notices jbell on DSKJLSW7X2PROD with NOTICES 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). VerDate Sep<11>2014 18:34 Apr 17, 2020 Jkt 250001 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 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 21907 3 15 E:\FR\FM\20APN1.SGM U.S.C. 78q–1(b)(3)(F). 20APN1

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
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