80 FR 11244 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Eliminate Rule 13.4, “Assigning of Registered Securities in the Name of a Member or Member Organization”

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 40 (March 2, 2015)

Page Range		11244-11246
FR Document		2015-04183
Federal Register, Volume 80 Issue 40 (Monday, March 2, 2015)
[Federal Register Volume 80, Number 40 (Monday, March 2, 2015)]
[Notices]
[Pages 11244-11246]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-04183]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74360; File No. SR-BYX-2015-11]


Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To 
Eliminate Rule 13.4, ``Assigning of Registered Securities in the Name 
of a Member or Member Organization''

February 24, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on February 12, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule

[[Page 11245]]

change as described in Items I and II below, which Items have been 
prepared by the Exchange. The Exchange has designated this proposal as 
a ``non-controversial'' proposed rule change pursuant to Section 
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which 
renders it effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to eliminate Rule 13.4, ``Assigning 
of Registered Securities in the Name of a Member or Member 
Organization.''
    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, 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 parts of such 
statements.

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to eliminate Rule 13.4, ``Assigning of 
Registered Securities in the Name of a Member or Member Organization,'' 
which permits the Exchange to establish a signature guarantee program. 
In sum, a signature guarantee program allows an investor who seeks to 
transfer or sell securities held in physical certificate form to have 
their signature on the certificate ``guaranteed.'' Rule 13.4 permits 
Members to guarantee their signatures by authorizing one or more of 
their employees to assign registered securities in the Member's name 
and to guarantee assignments of registered securities on behalf of the 
Member where the security had been signed by one of the partners of the 
Member or by one of the authorized officers of the Member by executing 
and filing with the Exchange a separate Power of Attorney, also known 
as a traditional signature card program. Transfer agents often insist 
that a signature be guaranteed before they accept the transaction 
because it limits their liability and losses if a signature turns out 
to be forged.
    Rule 17Ad-15 under the Act permits transfer agents to reject 
signature guarantees from eligible guarantor institutions that are not 
part of a signature guarantee program.\5\ The rule encouraged a 
movement away from the traditional signature card programs administered 
by the exchanges towards signature guarantee programs that use a 
medallion imprint or stamp which evidences their participation in the 
program and is an acceptable signature guarantee (``Medallion Signature 
Guarantee Program'').\6\ The Commission has also noted that:
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    \5\ See 17 CFR 240.17Ad-15; Securities Exchange Act Release No. 
30146 (January 10, 1992), 57 FR 1082 (February 24, 1992) (adopting 
Rule 17Ad-15).
    \6\ See, e.g., Securities Exchange Act Release No. 33669 
(February 23, 1994), 59 FR 10189 (March 3, 1994) (SR-MSTC-93-13) 
(``[t]his newly adopted Rule 17Ad-15 rule rendered [Midwest 
Securities Trust Company's (``MSTC'')] Signature Distribution 
Program and Signature Guarantee Program obsolete. Therefore, to 
avoid costs that produce no benefits, MSTC eliminated its Signature 
Distribution and Signature Guarantee Programs and deleted MSTC Rule 
5, Sections 1 and 2 which govern these programs'').

[a]n investor can obtain a signature guarantee from a financial 
institution--such as a commercial bank, savings bank, credit union, 
or broker dealer--that participates in one of the Medallion 
signature guarantee programs. . . . If a financial institution is 
not a member of a recognized Medallion Signature Guarantee Program, 
it would not be able to provide signature guarantees. Also, if [an 
investor is] not a customer of a participating financial 
institution, it is likely the financial institution will not 
guarantee [the investor's] signature. Therefore, the best source of 
a Medallion Guarantee would be a bank, savings and loan association, 
brokerage firm, or credit union with which [the investor does] 
business.\7\
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    \7\ See ``Signature Guarantees: Preventing the Unauthorized 
Transfer of Securities,'' http://www.sec.gov/answers/sigguar.htm.

    In response to Rule 17Ad-15, certain exchanges have decommissioned 
or amended their rules to no longer provide for traditional signature 
card program.\8\ While the Exchange adopted Rule 13.4 as part of its 
Form 1 exchange application,\9\ it has never offered, and does not now 
intend to offer, a signature guarantee service. The move towards 
Medallion Signature Guarantee Programs has also rendered traditional 
card programs as provided for under Exchange Rule 13.4 obsolete. 
Therefore, the Exchange proposes to eliminate Rule 13.4.
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    \8\ See Securities Exchange Act Release No. 34188 (June 9, 
1994), 59 FR 30820 (June 15, 1994) (SR-MSTC-93-13) (order approving 
the elimination of MSTC's signature guarantee program stating that 
Rule 17Ad-15 rendered it obsolete); Securities Exchange Act Release 
No. 32590 (July 7, 1993), 58 FR 37978 (July 14, 1993) (order 
approving SR-PHLX-92-39 eliminating the PHLX's signature guarantee 
program in light of Rule 17Ad-15) (noting that ``[b]y eliminating 
its signature guarantee program, PHLX will streamline the signature 
guarantee process. In place of the cumbersome signature card system, 
PHLX will require participation in a Rule 17Ad-15 Signature 
Guarantee Program''). In 2006, the Philadelphia Stock Exchange, Inc. 
(currently Nasdaq OMX PHLX LLC) (``PHLX'') eliminated Rules 327-340 
regarding signature guarantees in their entirety from its rulebook, 
noting that they are ``being deleted as obsolete because they refer 
to the delivery and settlement of securities, which is not done by 
the Exchange, but by registered clearing agencies.'' Securities 
Exchange Act Release No. 54329 (August 17, 2006), 71 FR 504538 
(August 25, 2006) (SR-PHLX-2006-43); Securities Exchange Act Release 
No. 54538 (September 28, 2006), 71 FR 59184 (October 6, 2006 (order 
approving SR-PHLX-2006-43).
    \9\ See Securities Exchange Act Release Nos. 58375 (August 18, 
2008), 73 FR 49498 (August 21, 2008) (File No. 10-182) (In the 
Matter of the Application of the BATS Exchange, Inc. for 
Registration as a National Securities Exchange, Findings, Opinion, 
and Order of the Commission); 62716 (August 13, 2010), 75 FR 51295 
(August 19, 2010) (File No. 10-198) (In the Matter of the 
Application of the BATS Y-Exchange, Inc. for Registration as a 
National Securities Exchange, Findings, Opinion, and Order of the 
Commission).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \10\ and furthers the objectives of 
Section 6(b)(5) of the Act,\11\ in that it is designed to promote just 
and equitable principles of trade, remove impediments to, and perfect 
the mechanism of, a free and open market and a national market system, 
and, in general, protect investors and the public interest by 
eliminating unnecessary confusion with respect to the Exchange's rules. 
Rule 17Ad-15 encouraged a movement away from the traditional signature 
card programs administered by the exchanges towards certain Medallion 
Signature Guarantee Programs. In response, certain exchanges have 
decommissioned or amended their rules to no longer provide for a 
traditional signature card program.\12\ The Exchange has never

[[Page 11246]]

offered, and does not now intend to offer, a signature guarantee 
service. Also, the move towards Medallion Signature Guarantee Programs 
has rendered traditional card programs as provided for under Exchange 
Rule 13.4 obsolete. Therefore, the Exchange believes eliminating Rule 
13.4 would clarify the Exchange's rules by eliminating rules that 
account for services the Exchange does not provide. The Exchange also 
believes the elimination of unnecessary and obsolete rules removes 
impediments to the perfection of the mechanisms for a free and open 
market system consistent with the requirements of Section 6(b)(5) of 
the Act.\13\
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ See Securities Exchange Act Release No. 34188 (June 9, 
1994), 59 FR 30820 (June 15, 1994) (SR-MSTC-93-13) (order approving 
the elimination of MSTC's signature guarantee program stating that 
Rule 17Ad-15 rendered it obsolete); Securities Exchange Act Release 
No. 32590 (July 7, 1993), 58 FR 37978 (July 14, 1993) (SR-PHLX-92-
39) (order approving SR-PHLX-92-39 eliminating the PHLX's signature 
guarantee program in light of Rule 17Ad-15).
    \13\ 15 U.S.C. 78f(b)(5).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition. 
Rule 17Ad-15 encouraged a movement away from the traditional signature 
card programs administered by the exchanges towards certain Medallion 
Signature Guarantee Programs. In response, certain exchanges have 
decommissioned or amended their rules to no longer provide for a 
traditional signature card program.\14\ An investor may still obtain a 
signature guarantee from a financial institution that participates in 
one of the Medallion Signature Guarantee Programs. The Exchange has 
never offered, and does not intend to offer, a signature guarantee 
service. Also, the move towards Medallion Signature Guarantee Programs 
has rendered traditional card programs as provided for under Exchange 
Rule 13.4 obsolete. Therefore, the Exchange believes eliminating Rule 
13.4 would not impose any burden on competition.
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    \14\ See Securities Exchange Act Release No. 34188 (June 9, 
1994), 59 FR 30820 (June 15, 1994) (SR-MSTC-93-13) (order approving 
the elimination of MSTC's signature guarantee program stating that 
Rule 17Ad-15 rendered it obsolete); Securities Exchange Act Release 
No. 32590 (July 7, 1993), 58 FR 37978 (July 14, 1993) (SR-PHLX-92-
39) (order approving SR-PHLX-92-39 eliminating the PHLX's signature 
guarantee program in light of Rule 17Ad-15).
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(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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 19(b)(3)(A) of the Act \15\ and paragraph 
of Rule 19b-4(f)(6) thereunder.\16\
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f)(6).
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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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed 
rules 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-BYX-2015-11 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-BYX-2015-11. 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 Web site (http://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 Web site 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; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-BYX-2015-11 and should be 
submitted on or before March 23, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-04183 Filed 2-27-15; 8:45 am]
BILLING CODE 8011-01-P
11244 Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices

rule change. The text of these statements as applicable, be cost-effective in post all comments on the Commission’s
may be examined at the places specified meeting the requirements of participants Internet Web site (http://www.sec.gov/
in Item IV below. DTC has prepared while maintaining safe and secure rules/sro.shtml). Copies of the
summaries, set forth in sections A, B, operations. submission, all subsequent
and C below, of the most significant amendments, all written statements
(B) Clearing Agency’s Statement on with respect to the proposed rule
aspects of such statements.
Burden on Competition change that are filed with the
(A) Clearing Agency’s Statement of the DTC does not believe that the Commission, and all written
Purpose of, and Statutory Basis for, the proposed rule change would have any communications relating to the
Proposed Rule Change impact, or impose any burden, on proposed rule change between the
1. Purpose competition. Commission and any person, other than
The purpose of the proposed rule those that may be withheld from the
(C) Clearing Agency’s Statement on
change is to discontinue PRS. public in accordance with the
Comments on the Proposed Rule
PRS was implemented in 2003 and provisions of 5 U.S.C. 552, will be
Change Received From Members,
enables DTC Participants available for Web site viewing and
Participants, or Others
(‘‘Participants’’) and DTC-authorized printing in the Commission’s Public
third parties (Participants and such Written comments relating to the Reference Room, 100 F Street NE.,
DTC-authorized third parties, proposed rule change have not yet been Washington, DC 20549, on official
collectively referred to as ‘‘Users’’) 4 to solicited or received. DTC will notify business days between the hours of
access prospectuses and official the Commission of any written 10:00 a.m. and 3:00 p.m. Copies of the
statements relating to new issues of comments received by DTC. filing also will be available for
corporate and municipal securities III. Date of Effectiveness of the inspection and copying at the principal
(‘‘Documents’’) available in electronic Proposed Rule Change and Timing for office of DTC and on DTCC’s Web site
format from a DTC-maintained Web (http://dtcc.com/legal/sec-rule-
Commission Action
site.5 Due to the fact that PRS currently filings.aspx). All comments received
Within 45 days of the date of will be posted without change; the
has few Users and many of the publication of this notice in the Federal
Documents made available via PRS are Commission does not edit personal
Register or within such longer period identifying information from
available to the public via electronic up to 90 days (i) as the Commission may
sources outside of DTC, it is no longer submissions. You should submit only
designate if it finds such longer period information that you wish to make
necessary or cost-effective for DTC or to be appropriate and publishes its available publicly. All submissions
the industry to have DTC continue to reasons for so finding or (ii) as to which should refer to File Number SR–DTC–
maintain PRS. Therefore, DTC proposes the self-regulatory organization 2015–01 and should be submitted on or
to discontinue PRS and delete the consents, the Commission will: before March 23, 2015.
Terms of Use from the Rules. (A) By order approve or disapprove For the Commission, by the Division of
Effective Date such proposed rule change, or Trading and Markets, pursuant to delegated
(B) institute proceedings to determine authority.8
The effective date of the proposed
whether the proposed rule change Jill M. Peterson,
rule change would be announced via a
should be disapproved. Assistant Secretary.
DTC Important Notice.
2. Statutory Basis IV. Solicitation of Comments [FR Doc. 2015–04184 Filed 2–27–15; 8:45 am]
BILLING CODE 8011–01–P
The proposed rule change would Interested persons are invited to
discontinue an underutilized service submit written data, views and
and eliminate the associated costs to arguments concerning the foregoing,
SECURITIES AND EXCHANGE
DTC of maintaining it. Therefore, by including whether the proposed rule
COMMISSION
precluding the need for DTC to allocate change is consistent with the Act.
resources in this regard, the proposed Comments may be submitted by any of [Release No. 34–74360; File No. SR–BYX–
the following methods: 2015–11]
rule change is consistent with the
provisions of: (i) Section 17A(b)(3)(F) 6 Electronic Comments Self-Regulatory Organizations; BATS
of the Act which requires that the rules Y-Exchange, Inc.; Notice of Filing and
• Use the Commission’s Internet
of the clearing agency be designed, inter Immediate Effectiveness of a Proposed
comment form (http://www.sec.gov/
alia, to promote the prompt and Rule Change To Eliminate Rule 13.4,
rules/sro.shtml); or
accurate clearance and settlement of • Send an email to rule-comments@ ‘‘Assigning of Registered Securities in
securities transactions, and (ii) Rule sec.gov. Please include File Number SR– the Name of a Member or Member
17Ad–22(d)(6) 7 promulgated under the DTC–2015–01 on the subject line. Organization’’
Act which requires, inter alia, that a
clearing agency establish, implement, Paper Comments February 24, 2015.
maintain and enforce written policies Pursuant to Section 19(b)(1) of the
• Send paper comments in triplicate Securities Exchange Act of 1934 (the
and procedures reasonably designed to, to Brent J. Fields, Secretary, Securities ‘‘Act’’),1 and Rule 19b–4 thereunder,2
and Exchange Commission, 100 F Street
asabaliauskas on DSK5VPTVN1PROD with NOTICES

4 Third-party Users of PRS include syndicate notice is hereby given that on February
NE., Washington, DC 20549–1090. 12, 2015, BATS Y-Exchange, Inc. (the
members, correspondent banks, paying agents,
transfer agents, and certain legal counsel and All submissions should refer to File ‘‘Exchange’’ or ‘‘BYX’’) filed with the
financial advisors. Individual investors do not have Number SR–DTC–2015–01. This file Securities and Exchange Commission
access to PRS. number should be included on the
5 Securities Exchange Act Release No. 47410 (‘‘Commission’’) the proposed rule
(February 26, 2003); 68 FR 10558 (March 5, 2003)
subject line if email is used. To help the
(SR–DTC–2002–13). Commission process and review your 8 17 CFR 200.30–3(a)(12).
6 15 U.S.C. 78q–1(b)(3)(F). comments more efficiently, please use 1 15 U.S.C. 78s(b)(1).
7 17 CFR 240.17Ad–22(d)(6). only one method. The Commission will 2 17 CFR 240.19b–4.

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Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices 11245

change as described in Items I and II had been signed by one of the partners Rule 13.4 as part of its Form 1 exchange
below, which Items have been prepared of the Member or by one of the application,9 it has never offered, and
by the Exchange. The Exchange has authorized officers of the Member by does not now intend to offer, a signature
designated this proposal as a ‘‘non- executing and filing with the Exchange guarantee service. The move towards
controversial’’ proposed rule change a separate Power of Attorney, also Medallion Signature Guarantee
pursuant to Section 19(b)(3)(A) of the known as a traditional signature card Programs has also rendered traditional
Act 3 and Rule 19b–4(f)(6) thereunder,4 program. Transfer agents often insist card programs as provided for under
which renders it effective upon filing that a signature be guaranteed before Exchange Rule 13.4 obsolete. Therefore,
with the Commission. The Commission they accept the transaction because it the Exchange proposes to eliminate Rule
is publishing this notice to solicit limits their liability and losses if a 13.4.
comments on the proposed rule change signature turns out to be forged.
from interested persons. Rule 17Ad–15 under the Act permits 2. Statutory Basis
transfer agents to reject signature The Exchange believes that the
I. Self-Regulatory Organization’s
guarantees from eligible guarantor proposed rule change is consistent with
Statement of the Terms of Substance of
the Proposed Rule Change institutions that are not part of a Section 6(b) of the Act 10 and furthers
signature guarantee program.5 The rule the objectives of Section 6(b)(5) of the
The Exchange filed a proposal to encouraged a movement away from the Act,11 in that it is designed to promote
eliminate Rule 13.4, ‘‘Assigning of traditional signature card programs just and equitable principles of trade,
Registered Securities in the Name of a administered by the exchanges towards remove impediments to, and perfect the
Member or Member Organization.’’ signature guarantee programs that use a mechanism of, a free and open market
The text of the proposed rule change medallion imprint or stamp which and a national market system, and, in
is available at the Exchange’s Web site evidences their participation in the general, protect investors and the public
at www.batstrading.com, at the program and is an acceptable signature interest by eliminating unnecessary
principal office of the Exchange, and at guarantee (‘‘Medallion Signature confusion with respect to the
the Commission’s Public Reference Guarantee Program’’).6 The Commission Exchange’s rules. Rule 17Ad–15
Room. has also noted that: encouraged a movement away from the
II. Self-Regulatory Organization’s [a]n investor can obtain a signature guarantee traditional signature card programs
Statement of the Purpose of, and from a financial institution—such as a administered by the exchanges towards
Statutory Basis for, the Proposed Rule commercial bank, savings bank, credit union, certain Medallion Signature Guarantee
Change or broker dealer—that participates in one of Programs. In response, certain
the Medallion signature guarantee exchanges have decommissioned or
In its filing with the Commission, the programs. . . . If a financial institution is
Exchange included statements amended their rules to no longer
not a member of a recognized Medallion provide for a traditional signature card
concerning the purpose of and basis for Signature Guarantee Program, it would not be
the proposed rule change and discussed able to provide signature guarantees. Also, if
program.12 The Exchange has never
any comments it received on the [an investor is] not a customer of a
participating financial institution, it is likely guarantee program in light of Rule 17Ad–15)
proposed rule change. The text of these (noting that ‘‘[b]y eliminating its signature
statements may be examined at the the financial institution will not guarantee guarantee program, PHLX will streamline the
places specified in Item IV below. The [the investor’s] signature. Therefore, the best signature guarantee process. In place of the
source of a Medallion Guarantee would be a cumbersome signature card system, PHLX will
Exchange has prepared summaries, set
bank, savings and loan association, brokerage require participation in a Rule 17Ad–15 Signature
forth in Sections A, B, and C below, of firm, or credit union with which [the investor Guarantee Program’’). In 2006, the Philadelphia
the most significant parts of such does] business.7 Stock Exchange, Inc. (currently Nasdaq OMX PHLX
statements. LLC) (‘‘PHLX’’) eliminated Rules 327–340 regarding
In response to Rule 17Ad–15, certain signature guarantees in their entirety from its
(A) Self-Regulatory Organization’s exchanges have decommissioned or rulebook, noting that they are ‘‘being deleted as
Statement of the Purpose of, and amended their rules to no longer obsolete because they refer to the delivery and
Statutory Basis for, the Proposed Rule settlement of securities, which is not done by the
provide for traditional signature card Exchange, but by registered clearing agencies.’’
Change program.8 While the Exchange adopted Securities Exchange Act Release No. 54329 (August
1. Purpose 17, 2006), 71 FR 504538 (August 25, 2006) (SR–
5 See 17 CFR 240.17Ad–15; Securities Exchange PHLX–2006–43); Securities Exchange Act Release
The Exchange proposes to eliminate Act Release No. 30146 (January 10, 1992), 57 FR No. 54538 (September 28, 2006), 71 FR 59184
Rule 13.4, ‘‘Assigning of Registered 1082 (February 24, 1992) (adopting Rule 17Ad–15). (October 6, 2006 (order approving SR–PHLX–2006–
6 See, e.g., Securities Exchange Act Release No. 43).
Securities in the Name of a Member or 9 See Securities Exchange Act Release Nos. 58375
33669 (February 23, 1994), 59 FR 10189 (March 3,
Member Organization,’’ which permits 1994) (SR–MSTC–93–13) (‘‘[t]his newly adopted (August 18, 2008), 73 FR 49498 (August 21, 2008)
the Exchange to establish a signature Rule 17Ad–15 rule rendered [Midwest Securities (File No. 10–182) (In the Matter of the Application
guarantee program. In sum, a signature Trust Company’s (‘‘MSTC’’)] Signature Distribution of the BATS Exchange, Inc. for Registration as a
guarantee program allows an investor Program and Signature Guarantee Program obsolete. National Securities Exchange, Findings, Opinion,
Therefore, to avoid costs that produce no benefits, and Order of the Commission); 62716 (August 13,
who seeks to transfer or sell securities MSTC eliminated its Signature Distribution and 2010), 75 FR 51295 (August 19, 2010) (File No. 10–
held in physical certificate form to have Signature Guarantee Programs and deleted MSTC 198) (In the Matter of the Application of the BATS
their signature on the certificate Rule 5, Sections 1 and 2 which govern these Y-Exchange, Inc. for Registration as a National
‘‘guaranteed.’’ Rule 13.4 permits programs’’). Securities Exchange, Findings, Opinion, and Order
7 See ‘‘Signature Guarantees: Preventing the of the Commission).
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Members to guarantee their signatures 10 15 U.S.C. 78f(b).
Unauthorized Transfer of Securities,’’ http://
by authorizing one or more of their www.sec.gov/answers/sigguar.htm. 11 15 U.S.C. 78f(b)(5).
employees to assign registered securities 8 See Securities Exchange Act Release No. 34188 12 See Securities Exchange Act Release No. 34188

in the Member’s name and to guarantee (June 9, 1994), 59 FR 30820 (June 15, 1994) (SR– (June 9, 1994), 59 FR 30820 (June 15, 1994) (SR–
assignments of registered securities on MSTC–93–13) (order approving the elimination of MSTC–93–13) (order approving the elimination of
MSTC’s signature guarantee program stating that MSTC’s signature guarantee program stating that
behalf of the Member where the security Rule 17Ad–15 rendered it obsolete); Securities Rule 17Ad–15 rendered it obsolete); Securities
Exchange Act Release No. 32590 (July 7, 1993), 58 Exchange Act Release No. 32590 (July 7, 1993), 58
3 15 U.S.C. 78s(b)(3)(A). FR 37978 (July 14, 1993) (order approving SR– FR 37978 (July 14, 1993) (SR–PHLX–92–39) (order
4 17 CFR 240.19b–4(f)(6). PHLX–92–39 eliminating the PHLX’s signature Continued

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11246 Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices

offered, and does not now intend to III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be
offer, a signature guarantee service. Proposed Rule Change and Timing for available for Web site viewing and
Also, the move towards Medallion Commission Action printing in the Commission’s Public
Signature Guarantee Programs has Because the foregoing proposed rule Reference Room, 100 F Street NE.,
rendered traditional card programs as change does not: (i) Significantly affect Washington, DC 20549, on official
provided for under Exchange Rule 13.4 the protection of investors or the public business days between the hours of
obsolete. Therefore, the Exchange interest; (ii) impose any significant 10:00 a.m. and 3:00 p.m. Copies of the
believes eliminating Rule 13.4 would burden on competition; and (iii) become filing also will be available for
clarify the Exchange’s rules by operative for 30 days from the date on inspection and copying at the principal
eliminating rules that account for which it was filed, or such shorter time office of the Exchange. All comments
services the Exchange does not provide. as the Commission may designate, it has received will be posted without change;
The Exchange also believes the become effective pursuant to Section the Commission does not edit personal
elimination of unnecessary and obsolete 19(b)(3)(A) of the Act 15 and paragraph identifying information from
rules removes impediments to the of Rule 19b–4(f)(6) thereunder.16 submissions. You should submit only
perfection of the mechanisms for a free At any time within 60 days of the information that you wish to make
and open market system consistent with filing of the proposed rule change, the available publicly. All submissions
Commission summarily may should refer to File No. SR–BYX–2015–
the requirements of Section 6(b)(5) of
temporarily suspend such rule change if 11 and should be submitted on or before
the Act.13
it appears to the Commission that such March 23, 2015.
(B) Self-Regulatory Organization’s action is necessary or appropriate in the For the Commission, by the Division of
Statement on Burden on Competition public interest, for the protection of Trading and Markets, pursuant to delegated
investors, or otherwise in furtherance of authority.17
The proposed rule change does not the purposes of the Act. Jill M. Peterson,
impose any burden on competition. Assistant Secretary.
Rule 17Ad–15 encouraged a movement IV. Solicitation of Comments
[FR Doc. 2015–04183 Filed 2–27–15; 8:45 am]
away from the traditional signature card Interested persons are invited to BILLING CODE 8011–01–P
programs administered by the submit written data, views and
exchanges towards certain Medallion arguments concerning the foregoing,
Signature Guarantee Programs. In including whether the proposed rules SECURITIES AND EXCHANGE
response, certain exchanges have change is consistent with the Act. COMMISSION
decommissioned or amended their rules Comments may be submitted by any of
to no longer provide for a traditional the following methods: [Release No. 34–74362; File No. SR–ICEEU–
2015–005]
signature card program.14 An investor Electronic Comments
may still obtain a signature guarantee Self-Regulatory Organizations; ICE
from a financial institution that • Use the Commission’s Internet
Clear Europe Limited; Notice of Filing
participates in one of the Medallion comment form (http://www.sec.gov/
of a Proposed Rule Change Relating to
Signature Guarantee Programs. The rules/sro.shtml); or
• Send an email to rule-comments@ CDS Procedures for CDX North
Exchange has never offered, and does America Index CDS Contracts
sec.gov. Please include File No. SR–
not intend to offer, a signature guarantee
BYX–2015–11 on the subject line. February 24, 2015.
service. Also, the move towards
Medallion Signature Guarantee Paper Comments Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Programs has rendered traditional card • Send paper comments in triplicate (‘‘Act’’) 1 and Rule 19b–4 thereunder 2
programs as provided for under to Brent J. Fields, Secretary, Securities
Exchange Rule 13.4 obsolete. Therefore, notice is hereby given that on February
and Exchange Commission, 100 F Street 12, 2015, ICE Clear Europe Limited
the Exchange believes eliminating Rule NE., Washington, DC 20549–1090. (‘‘ICE Clear Europe’’) filed with the
13.4 would not impose any burden on All submissions should refer to File No. Securities and Exchange Commission
competition. SR–BYX–2015–11. This file number (‘‘Commission’’) the proposed rule
(C) Self-Regulatory Organization’s should be included on the subject line change as described in Items I, II, and
Statement on Comments on the if email is used. To help the III below, which Items have been
Proposed Rule Change Received From Commission process and review your prepared primarily by ICE Clear Europe.
Members, Participants or Others comments more efficiently, please use The Commission is publishing this
only one method. The Commission will notice to solicit comments on the
The Exchange has neither solicited post all comments on the Commission’s proposed rule change from interested
nor received written comments on the Internet Web site (http://www.sec.gov/ persons.
proposed rule change. rules/sro.shtml). Copies of the
submission, all subsequent I. Self-Regulatory Organization’s
amendments, all written statements Statement of the Terms of Substance of
approving SR–PHLX–92–39 eliminating the PHLX’s
signature guarantee program in light of Rule 17Ad– with respect to the proposed rule the Proposed Rule Change
15). change that are filed with the The principal purpose of the
13 15 U.S.C. 78f(b)(5).
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Commission, and all written proposed rule change is to amend the
14 See Securities Exchange Act Release No. 34188

(June 9, 1994), 59 FR 30820 (June 15, 1994) (SR–
communications relating to the ICE Clear Europe CDS Procedures (the
MSTC–93–13) (order approving the elimination of proposed rule change between the ‘‘CDS Procedures’’) to incorporate
MSTC’s signature guarantee program stating that Commission and any person, other than contract terms for the CDX North
Rule 17Ad–15 rendered it obsolete); Securities those that may be withheld from the America index CDS contracts (the
Exchange Act Release No. 32590 (July 7, 1993), 58
FR 37978 (July 14, 1993) (SR–PHLX–92–39) (order
public in accordance with the
17 17 CFR 200.30–3(a)(12).
approving SR–PHLX–92–39 eliminating the PHLX’s
15 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
signature guarantee program in light of Rule 17Ad–
15). 16 17 CFR 240.19b–4(f)(6). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 16:55 Feb 27, 2015 Jkt 235001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\02MRN1.SGM 02MRN1
Document Created: 2015-12-18 12:07:10
Document Modified: 2015-12-18 12:07:10
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 11244