Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change To Adopt the Clearing Agency Framework for Certain Requirements on Governance and Conflicts of Interest, 84213-84214 [2024-24203]

Download as PDF Federal Register / Vol. 89, No. 203 / Monday, October 21, 2024 / Notices 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 such filing also will be available for inspection and copying at the principal office of FICC and on DTCC’s website at (https://dtcc.com/legal/sec-rulefilings.aspx). Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to File Number SR–FICC–2024–009 and should be submitted on or before November 12, 2024. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2024–24205 Filed 10–18–24; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–101345; File No. SR–DTC– 2024–009] Self-Regulatory Organizations; Depository Trust Company; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change To Adopt the Clearing Agency Framework for Certain Requirements on Governance and Conflicts of Interest lotter on DSK11XQN23PROD with NOTICES1 October 15, 2024. On August 15, 2024, the Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change SR–DTC–2024–009 (‘‘Proposed Rule Change’’) pursuant to Section 19(b) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 2 thereunder to adopt a new framework entitled the ‘‘Clearing Agency Framework for Certain Requirements on Governance and Conflicts of Interest’’ (‘‘Framework’’) of DTC and its affiliates, the Fixed Income Clearing Corporation (‘‘FICC’’) and National Securities 14 17 CFR 200.30–3(a)(31). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 16:27 Oct 18, 2024 Jkt 265001 Clearing Corporation (‘‘NSCC,’’ and together with FICC and DTC, the ‘‘Clearing Agencies’’).3 The Proposed Rule Change was published for public comment in the Federal Register on September 3, 2024.4 The Commission has received no comments regarding the Proposed Rule Change. Section 19(b)(2)(i) of the Exchange Act 5 provides that, within 45 days of the publication of notice of the filing of a proposed rule change, 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 unless the Commission extends the period within which it must act as provided in Section 19(b)(2)(ii) of the Exchange Act.6 Section 19(b)(2)(ii) of the Exchange Act allows the Commission to designate a longer period for review (up to 90 days from the publication of notice of the filing of a proposed rule change) if the Commission finds such longer period to be appropriate and publishes its reasons for so finding, or as to which the self-regulatory organization consents.7 The 45th day after publication of the Notice of Filing is October 18, 2024. 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 act on the Proposed Rule Change and therefore is extending this 45-day time period. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Exchange Act,8 designates December 2, 2024, as the date by which the Commission shall either approve, disapprove, or institute proceedings to determine whether to disapprove proposed rule change SR–DTC–2024– 009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2024–24207 Filed 10–18–24; 8:45 am] BILLING CODE 8011–01–P Notice of Filing infra note 4, at 71 FR 597. Exchange Act Release No. 100842 (August 27, 2024), 71 FR 597 (September 3, 2024) (File No. SR–DTC–2024–009) (‘‘Notice of Filing’’). 5 15 U.S.C. 78s(b)(2)(i). 6 15 U.S.C. 78s(b)(2)(ii). 7 Id. 8 Id. 9 17 CFR 200.30–3(a)(12). 84213 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–101337; File No. SR– NSCC–2024–006] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change To Adopt the Clearing Agency Framework for Certain Requirements on Governance and Conflicts of Interest October 15, 2024. On August 15, 2024, National Securities Clearing Corporation (‘‘NSCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change SR–NSCC– 2024–006 (‘‘Proposed Rule Change’’) pursuant to Section 19(b) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 2 thereunder to adopt a new framework entitled the ‘‘Clearing Agency Framework for Certain Requirements on Governance and Conflicts of Interest’’ (‘‘Framework’’) of NSCC and its affiliates, the Depository Trust Company (‘‘DTC’’) and Fixed Income Clearing Corporation (‘‘FICC,’’ and together with NSCC and DTC, the ‘‘Clearing Agencies’’).3 The Proposed Rule Change was published for public comment in the Federal Register on September 3, 2024.4 The Commission has received no comments regarding the Proposed Rule Change. Section 19(b)(2)(i) of the Exchange Act 5 provides that, within 45 days of the publication of notice of the filing of a proposed rule change, 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 unless the Commission extends the period within which it must act as provided in Section 19(b)(2)(ii) of the Exchange Act.6 Section 19(b)(2)(ii) of the Exchange Act allows the Commission to designate a longer period for review (up to 90 days from the publication of notice of the filing of a proposed rule change) if the Commission finds such longer period to be appropriate and publishes its reasons for so finding, or as to which 3 See 4 Securities PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Notice of Filing infra note 4, at 71 FR 646. 4 Securities Exchange Act Release No. 100841 (August 27, 2024), 71 FR 646 (September 3, 2024) (File No. SR–NSCC–2024–006) (‘‘Notice of Filing’’). 5 15 U.S.C. 78s(b)(2)(i). 6 15 U.S.C. 78 s(b)(2)(ii). 2 17 E:\FR\FM\21OCN1.SGM 21OCN1 84214 Federal Register / Vol. 89, No. 203 / Monday, October 21, 2024 / Notices the self-regulatory organization consents.7 The 45th day after publication of the Notice of Filing is October 18, 2024. 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 act on the Proposed Rule Change and therefore is extending this 45-day time period. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Exchange Act,8 designates December 2, 2024, as the date by which the Commission shall either approve, disapprove, or institute proceedings to determine whether to disapprove proposed rule change SR–NSCC–2024– 006. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2024–24203 Filed 10–18–24; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–101349; File No. SR–ISE– 2024–48] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange’s Pricing Schedule at Options 7, Section 3 October 15, 2024. lotter on DSK11XQN23PROD with NOTICES1 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 October 1, 2024, Nasdaq ISE, LLC (‘‘ISE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the 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 proposes to amend the Exchange’s Pricing Schedule at Options 7, Section 3. 7 Id. 8 Id. 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 16:27 Oct 18, 2024 Jkt 265001 The text of the proposed rule change is available on the Exchange’s website at https://listingcenter.nasdaq.com/ rulebook/ise/rules, at the principal office of the Exchange, 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, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend the Exchange’s Pricing Schedule in Options 7, Section 3. Today, as set forth in Options 7, Section 3, the Exchange assesses all market participants (except Priority Customers) 3 a uniform regular order maker fee of $0.70 per contract for NonSelect Symbol 4 executions that add liquidity on the Exchange. Priority Customers are assessed a $1.00 per contract regular order maker rebate in Non-Select Symbols.5 Additionally, the Exchange also currently offers Members an additional rebate of $0.14 per contract if they execute more than 0.10% of Regular Order Non-Select Symbol Priority Customer volume (excluding Crossing Orders 6 and 3 A ‘‘Priority Customer’’ is a person or entity that is not a broker/dealer in securities, and does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s), as defined in Nasdaq ISE Options 1, Section 1(a)(37). 4 ‘‘Non-Select Symbols’’ are options overlying all symbols excluding Select Symbols. ‘‘Select Symbols’’ are options overlying all symbols listed on the Exchange that are in the Penny Interval Program. 5 In addition, for Priority Customer orders adding liquidity in Non-Select Symbols, there is no fee or rebate provided when trading against Priority Customer complex orders that leg into the regular order book. See Options 7, Section 3, note 18. 6 A ‘‘Crossing Order’’ is an order executed in the Exchange’s Facilitation Mechanism, Solicited Order Mechanism, Price Improvement Mechanism (PIM) or submitted as a Qualified Contingent Cross order. For purposes of this Pricing Schedule, orders executed in the Block Order Mechanism are also considered Crossing Orders. PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 Responses to Crossing Orders) 7 calculated as a percentage of Customer Total Consolidated Volume 8 per day in a given month (‘‘Note 15 Incentive’’).9 The Note 15 Incentive is designed to encourage Members to transact in greater regular Non-Select Symbol Priority Customer volume on the Exchange to receive rebates up to $1.14 per contract (i.e., the $1.00 base maker rebate plus the additional $0.14 Note 15 Incentive). The Exchange now proposes to amend the Note 15 Incentive by increasing the additional $0.14 rebate to $0.18 per contract. The additional rebate qualifications are not changing under this proposal. Accordingly, Members would be eligible to receive higher rebates of up to $1.18 per contract (i.e., the base $1.00 maker rebate plus the proposed additional $0.18 Note 15 Incentive) under this proposal when sending the same amount of regular Non-Select Symbol Priority Customer volume as they do today. Ultimately, the Exchange believes that the proposed changes will attract more Priority Customer Non-Select Symbol order flow to ISE because Members may be incentivized to send such order flow to ISE to receive the increased rebate. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,10 in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,11 in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange’s proposed changes to its Pricing Schedule are reasonable in several respects. As a threshold matter, the Exchange is subject to significant competitive forces in the market for options securities transaction services that constrain its pricing determinations in that market. The fact that this market is competitive has long been recognized by the courts. In NetCoalition v. Securities and Exchange Commission, the D.C. Circuit stated as follows: ‘‘[n]o 7 ‘‘Responses to Crossing Order’’ is any contraside interest submitted after the commencement of an auction in the Exchange’s Facilitation Mechanism, Solicited Order Mechanism, Block Order Mechanism or PIM. 8 ‘‘Customer Total Consolidated Volume’’ means the total national volume cleared at The Options Clearing Corporation in the Customer range in equity and ETF options in that month. 9 See Options 7, Section 3, note 15. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4) and (5). E:\FR\FM\21OCN1.SGM 21OCN1

Agencies

[Federal Register Volume 89, Number 203 (Monday, October 21, 2024)]
[Notices]
[Pages 84213-84214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24203]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101337; File No. SR-NSCC-2024-006]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Designation of Longer Period for Commission 
Action on Proposed Rule Change To Adopt the Clearing Agency Framework 
for Certain Requirements on Governance and Conflicts of Interest

October 15, 2024.
    On August 15, 2024, National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change SR-NSCC-2024-006 (``Proposed 
Rule Change'') pursuant to Section 19(b) of the Securities Exchange Act 
of 1934 (``Exchange Act'') \1\ and Rule 19b-4 \2\ thereunder to adopt a 
new framework entitled the ``Clearing Agency Framework for Certain 
Requirements on Governance and Conflicts of Interest'' (``Framework'') 
of NSCC and its affiliates, the Depository Trust Company (``DTC'') and 
Fixed Income Clearing Corporation (``FICC,'' and together with NSCC and 
DTC, the ``Clearing Agencies'').\3\ The Proposed Rule Change was 
published for public comment in the Federal Register on September 3, 
2024.\4\ The Commission has received no comments regarding the Proposed 
Rule Change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Notice of Filing infra note 4, at 71 FR 646.
    \4\ Securities Exchange Act Release No. 100841 (August 27, 
2024), 71 FR 646 (September 3, 2024) (File No. SR-NSCC-2024-006) 
(``Notice of Filing'').
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    Section 19(b)(2)(i) of the Exchange Act \5\ provides that, within 
45 days of the publication of notice of the filing of a proposed rule 
change, 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 unless 
the Commission extends the period within which it must act as provided 
in Section 19(b)(2)(ii) of the Exchange Act.\6\ Section 19(b)(2)(ii) of 
the Exchange Act allows the Commission to designate a longer period for 
review (up to 90 days from the publication of notice of the filing of a 
proposed rule change) if the Commission finds such longer period to be 
appropriate and publishes its reasons for so finding, or as to which

[[Page 84214]]

the self-regulatory organization consents.\7\
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    \5\ 15 U.S.C. 78s(b)(2)(i).
    \6\ 15 U.S.C. 78 s(b)(2)(ii).
    \7\ Id.
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    The 45th day after publication of the Notice of Filing is October 
18, 2024. 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 act on the Proposed Rule 
Change and therefore is extending this 45-day time period.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Exchange Act,\8\ designates December 2, 2024, as the date by which the 
Commission shall either approve, disapprove, or institute proceedings 
to determine whether to disapprove proposed rule change SR-NSCC-2024-
006.
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    \8\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-24203 Filed 10-18-24; 8:45 am]
BILLING CODE 8011-01-P
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