80 FR 14424 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 53 (March 19, 2015)

Page Range		14424-14425
FR Document		2015-06315

Federal Register, Volume 80 Issue 53 (Thursday, March 19, 2015)

[Federal Register Volume 80, Number 53 (Thursday, March 19, 2015)]
[Notices]
[Pages 14424-14425]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-06315]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-2736.

Extension: Rule 11a1-1(T).
    SEC File No. 270-428, OMB Control No. 3235-0478.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in Rule 
11a1-1(T) (17 CFR 240.11a1-1(T)), under the Securities Exchange Act of 
1934 (15 U.S.C. 78a et seq.) (``Exchange Act'').
    On January 27, 1976, the Commission adopted Rule 11a1-1(T), to 
exempt certain transactions of exchange members for their own accounts 
that would otherwise be prohibited under Section 11(a) of the Exchange 
Act. The rule provides that a member's proprietary order may be 
executed on the exchange of which the trader is a member, if, among 
other things: (1) The member discloses that a bid or offer for its 
account is for its account to any member with whom such bid or offer is 
placed or to whom it is communicated; (2) any such member through whom 
that bid or offer is communicated discloses to others participating in 
effecting the order that it is for the account of a member; and (3) 
immediately before executing the order, a member (other than a 
specialist in such security) presenting any order for the account of a 
member on the exchange clearly announces or otherwise indicates to the 
specialist and to other members then present that he is presenting an 
order for the account of a member.
    Without these requirements, it would not be possible for the 
Commission to monitor its mandate under the Exchange Act to promote 
fair and orderly markets and ensure that exchange members have, as the 
principal purpose of their exchange memberships, the conduct of a 
public securities business.
    There are approximately 663 respondents that require an aggregate 
total of 19 hours to comply with this rule. Each of these approximately 
663 respondents makes an estimated 20 annual responses, for an 
aggregate of 13,260 responses per year. Each response takes 
approximately 5 seconds to complete. Thus, the total compliance burden 
per year is 19 hours (13,260 x 5 seconds/60 seconds per minute/60 
minutes per hour = 19 hours). The approximate cost per hour is $323, 
resulting in a total cost of compliance for the annual burden of $6,137 
(19 hours @$323).
    Compliance with Rule 11a-1(T) is necessary for exchange members to 
make transactions for their own accounts under a specific exemption 
from the general prohibition of such transactions under Section 11(a) 
of the Exchange Act. Compliance with Rule 11a-1(T) does not involve the 
collection of confidential information. Rule 11a-1(T) does not have a 
record retention requirement per se. However, responses made pursuant 
to Rule 11a-1(T) may be subject to the recordkeeping requirements of 
Rules 17a-3 and 17a-4.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    The public may view background documentation for this information 
collection at the following Web site: www.reginfo.gov. Comments should 
be directed to (i) Desk Officer for the

[[Page 14425]]

Securities and Exchange Commission, Office of Information and 
Regulatory Affairs, Office of Management and Budget, Room 10102, New 
Executive Office Building, Washington, DC 20503 or by sending an email 
to: [email protected]; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email 
to: [email protected]. Comments must be submitted to OMB within 30 
days of this notice.

    Dated: March 13, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-06315 Filed 3-18-15; 8:45 am]
BILLING CODE 8011-01-P

14424 Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices

proposal, members have unfettered purposes for which members may not proprietary order may be executed on
discretion to set the Allowable Order want or need order protection to apply. the exchange of which the trader is a
Rate and Allowable Contract Execution The proposed rule change also member, if, among other things: (1) The
Rate for the RPM. While MIAX codifies existing functionality in the member discloses that a bid or offer for
neglected to affirmatively establish ARM with respect to the procedures for its account is for its account to any
minimum and maximum permissible resuming quoting and the non- member with whom such bid or offer is
settings for the RPM in its rule, the participation of eQuotes. The placed or to whom it is communicated;
Commission expects MIAX periodically Commission notes that the clarification (2) any such member through whom
to assess whether the RPM functionality of ARM procedures in Rule 612 could that bid or offer is communicated
is operating in a manner that is eliminate potential confusion for discloses to others participating in
consistent with the promotion of fair members regarding the need to effecting the order that it is for the
and orderly markets. In addition, the affirmatively notify MIAX that the account of a member; and (3)
Commission expects that members will member wishes to re-start quoting immediately before executing the order,
consider their best execution obligations following an ARM event as well as a member (other than a specialist in
when establishing the minimum and internal inconsistency in the rule about such security) presenting any order for
maximum parameters for the RPM.18 the inapplicability of ARM to eQuotes. the account of a member on the
For example, an abnormally low IV. Conclusion exchange clearly announces or
Allowable Order Rate set over an otherwise indicates to the specialist and
abnormally long specified time period It is therefore ordered, pursuant to to other members then present that he
should be carefully scrutinized, section 19(b)(2) of the Act,22 that the is presenting an order for the account of
particularly if a member’s order flow to proposed rule change (SR–MIAX–2015– a member.
MIAX contains agency orders. To the 03), as modified by Amendment No. 1, Without these requirements, it would
extent that the RPM is set to overly- be, and hereby is, approved. not be possible for the Commission to
sensitive parameters, a member should For the Commission, by the Division of monitor its mandate under the Exchange
consider the effect of its chosen settings Trading and Markets, pursuant to delegated Act to promote fair and orderly markets
on its ability to receive a timely authority.23 and ensure that exchange members
execution on marketable agency orders Brent J. Fields, have, as the principal purpose of their
that it sends to MIAX in various market Secretary. exchange memberships, the conduct of
conditions.19 The Commission cautions [FR Doc. 2015–06262 Filed 3–18–15; 8:45 am] a public securities business.
that brokers considering their best BILLING CODE 8011–01–P
There are approximately 663
execution obligations should be aware respondents that require an aggregate
total of 19 hours to comply with this
that the agency orders they represent
SECURITIES AND EXCHANGE rule. Each of these approximately 663
may be rejected on account of the RPM.
COMMISSION respondents makes an estimated 20
In addition, under the proposal, once annual responses, for an aggregate of
the RPM is engaged, PRIME Orders, Submission for OMB Review; 13,260 responses per year. Each
PRIME Solicitation Orders, GTC Orders, Comment Request response takes approximately 5 seconds
AOC Orders, and OPG Orders will not to complete. Thus, the total compliance
participate in the RPM.20 The Upon Written Request, Copies Available burden per year is 19 hours (13,260 × 5
Commission notes that these are unique From: Securities and Exchange seconds/60 seconds per minute/60
order types.21 The Commission believes Commission, Office of FOIA Services, minutes per hour = 19 hours). The
that these exceptions appear to be 100 F Street NE., Washington, DC approximate cost per hour is $323,
reasonably designed to not interfere 20549–2736. resulting in a total cost of compliance
with the operation of the PRIME and Extension: Rule 11a1–1(T). for the annual burden of $6,137 (19
PRIME Solicitation auctions and also to SEC File No. 270–428, OMB Control No. hours @$323).
restrict application of the RPM to 3235–0478. Compliance with Rule 11a–1(T) is
specific types of orders, whose terms Notice is hereby given that pursuant necessary for exchange members to
limit their application to specialized to the Paperwork Reduction Act of 1995 make transactions for their own
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the accounts under a specific exemption
(June 9, 2005), 70 FR 37496, 37537–8 (June 29, Securities and Exchange Commission from the general prohibition of such
2005). (‘‘Commission’’) has submitted to the transactions under Section 11(a) of the
18 The Commission reminds broker-dealers that
Office of Management and Budget Exchange Act. Compliance with Rule
they must examine their procedures for seeking to
obtain best execution in light of market and (‘‘OMB’’) a request for approval of 11a–1(T) does not involve the collection
technology changes and modify those practices if extension of the previously approved of confidential information. Rule 11a–
necessary to enable their customers to obtain the collection of information provided for in 1(T) does not have a record retention
best reasonably available prices. See Order Rule 11a1–1(T) (17 CFR 240.11a1–1(T)), requirement per se. However, responses
Handling Rules Release, supra note 17, at 48323.
19 For example, a marketable agency order that under the Securities Exchange Act of made pursuant to Rule 11a–1(T) may be
would have otherwise executed on MIAX might be 1934 (15 U.S.C. 78a et seq.) (‘‘Exchange subject to the recordkeeping
prevented from reaching MIAX on account of other Act’’). requirements of Rules 17a–3 and 17a–4.
interest from the member that causes it to exceed On January 27, 1976, the Commission An agency may not conduct or
its Allowable Order Rate and, thus, triggers the sponsor, and a person is not required to
RPM, resulting in the System blocking new orders
adopted Rule 11a1–1(T), to exempt
certain transactions of exchange respond to, a collection of information
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from the member.
20 See supra note 7. members for their own accounts that under the PRA unless it displays a
21 For example, the Exchange argues that PRIME would otherwise be prohibited under currently valid OMB control number.
Orders submitted pursuant to MIAX Rule 515A Section 11(a) of the Exchange Act. The The public may view background
have been guaranteed an execution at the time of documentation for this information
acceptance into the System and, therefore, should
rule provides that a member’s
not be cancelled when the RPM is engaged, because
collection at the following Web site:
the execution has effectively already occurred. See 22 15 U.S.C. 78s(b)(2). www.reginfo.gov. Comments should be
Notice, supra note 4, at 4609. 23 17 CFR 200.30–3(a)(12). directed to (i) Desk Officer for the

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Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices 14425

Securities and Exchange Commission, the proposed rule change.4 This order indexes under which a CSSA is not
Office of Information and Regulatory approves the proposed rule change. required.10 Accordingly, the proposed
Affairs, Office of Management and rule change would provide a limited
II. Description of the Proposal
Budget, Room 10102, New Executive exception to the requirement regarding
Office Building, Washington, DC 20503 The Exchange allows for the listing CSSAs under the Exchange’s listing
or by sending an email to: Shagufta_ and trading of options on ETFs that standards only in circumstances where
Ahmed@omb.eop.gov; and (ii) Pamela satisfy certain listing standards.5 These the underlying ETF was listed on an
Dyson, Director/Chief Information rules require, in part, that (i) any non- equities exchange pursuant to generic
Officer, Securities and Exchange U.S. component securities of an index listing standards for international or
Commission, c/o Remi Pavlik-Simon, or portfolio of securities on which the global indexes that do not require such
100 F Street NE., Washington, DC ETFs are based that are not subject to exchange to enter into a CSSA with a
20549, or send an email to: PRA_ CSSAs do not in the aggregate represent foreign market.11 The requirement for
Mailbox@sec.gov. Comments must be more than 50% of the weight of the the Exchange to enter into a CSSA with
submitted to OMB within 30 days of index or portfolio; 6 (ii) component a foreign market would continue to
this notice. securities of an index or portfolio of apply with respect to products that do
securities on which the ETFs are based
Dated: March 13, 2015. not fit under the proposed exception.12
for which the primary market is in any
Brent J. Fields, In addition, options on ETFs that may
one country that is not subject to a
be listed and traded without a CSSA
Secretary. CSSA do not represent 20% or more of
under this proposal would be subject to,
[FR Doc. 2015–06315 Filed 3–18–15; 8:45 am] the weight of the index; 7 and (iii)
component securities of an index or in all other respects, the Exchange’s
BILLING CODE 8011–01–P existing listing and trading rules that
portfolio of securities on which the
ETFs are based for which the primary apply to options on ETFs and would be
market is in any two countries that are captured under the Exchange’s
SECURITIES AND EXCHANGE surveillance program for options on
COMMISSION not subject to CSSAs do not represent
33% or more of the weight of the index.8 ETFs.13
The generic listing standards on equities Finally, the Exchange proposes
[Release No. 34–74509; File No. SR–MIAX–
2015–04] exchanges for the listing of portfolio several technical and non-substantive
depositary receipts and index fund changes to the formatting of Rule 402(i),
Self-Regulatory Organizations; Miami shares based on international or global including relocating current Rule
International Securities Exchange LLC; indexes do not, however, contain a 402(i)(5)(ii)(E) to proposed Rule
Order Approving a Proposed Rule parallel requirement regarding CSSAs.9 402(i)(E)(1)(iii) and the re-numbering of
Change To Amend MIAX Rule 402 The Exchange proposes to amend its current Rule 402(i)(5)(ii) to proposed
listing standards to enable the Exchange Rule 402(i)(E)(2)(ii). In addition, the
March 13, 2015. to list and trade options on certain ETFs Exchange proposes making corrections
without a CSSA provided that such to inaccurate citations located in Rule
I. Introduction ETFs that underlie options are listed on 403(g)(1) and (2), so that Rule 403(g)(1)
On January 16, 2015, Miami an equities exchange pursuant to the properly cites to Rule 402(i)(E)(1)(i)
International Securities Exchange LLC generic listing standards for portfolio regarding closed-end ETFs and Rule
(‘‘MIAX’’ or ‘‘Exchange’’) filed with the depositary receipts and index fund 403(g)(2) properly cites to Rule
Securities and Exchange Commission shares based on international or global 402(i)(E)(1)(ii) regarding open-end ETFs.
(‘‘Commission’’), pursuant to section
19(b)(1) of the Securities Exchange Act
4 See Letter to Brent J. Fields, Secretary, III. Discussion and Commission’s
Commission, from Elizabeth King, Secretary and Findings
of 1934 (‘‘Act’’) 1 and Rule 19b–4 General Counsel, New York Stock Exchange, dated
thereunder,2 a proposed rule change to February 6, 2015 (‘‘NYSE Letter’’) (stating that After careful review, the Commission
amend its listing standards under ‘‘NYSE Group agrees with . . . and is supportive of
MIAX’s efforts to make options available as a risk finds that the proposed rule change is
Exchange Rule 402 to eliminate a management tool for those ETFs listed on an consistent with the requirements of
requirement that the Exchange obtain a equities exchange pursuant to generic listing section 6 of the Act 14 and the rules and
comprehensive surveillance sharing standards without the requirement for a CSSA’’).
regulations thereunder applicable to a
5 See MIAX Rule 402(i).
agreement (‘‘CSSA’’) before listing and national securities exchange.15
6 See MIAX Rule 402(i)(5)(ii)(A) (renumbered as
trading options that overlie certain Specifically, the Commission finds that
402(i)(E)(2)(ii)(A) as part of the proposed rule
exchange-traded fund shares (‘‘ETFs’’), change). the proposed rule change is consistent
provided such ETFs are listed pursuant 7 See MIAX Rule 402(i)(5)(ii)(B) (renumbered as

to generic listing standards on an 402(i)(E)(2)(ii)(B) as part of the proposed rule 10 See Proposed MIAX Rule 402(i)(E)(2)(i). See
equities exchange for portfolio change).
8 See MIAX Rule 402(i)(5)(ii)(C) (renumbered as
also NYSE MKT Rule 1000, Commentary .03(a)(B);
depositary receipts and index fund 402(i)(E)(2)(ii)(C) as part of the proposed rule
NYSE MKT Rule 1000A, Commentary .02(a)(B);
shares based on international or global NYSE Arca Equities Rule 5.2(j)(3), Commentary
change).
.01(a)(B); NYSE Arca Equities Rule 8.100,
indexes under which a CSSA with a 9 See, e.g., NYSE MKT Rule 1000, Commentary
Commentary .01(a)(B); NASDAQ Rule
foreign market is not required. The .03(a)(B); NYSE MKT Rule 1000A, Commentary 5705(a)(3)(A)(ii); NASDAQ Rule 5705(b)(3)(A)(ii);
proposed rule change was published for .02(a)(B); NYSE Arca Equities Rule 5.2(j)(3), BATS Rule 14.11(b)(3)(A)(ii); and BATS Rule
Commentary .01(a)(B); NYSE Arca Equities Rule 14.11(c)(3)(A)(ii).
comment in the Federal Register on 8.100, Commentary .01(a)(B); NASDAQ Rule
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11 Id.
January 30, 2015.3 The Commission 5705(a)(3)(A)(ii); NASDAQ Rule 5705(b)(3)(A)(ii); 12 See Proposed MIAX Rules 402(i)(E)(2)(ii)(A)–
received one comment letter supporting BATS Rule 14.11(b)(3)(A)(ii); and BATS Rule
(C).
14.11(c)(3)(A)(ii). See also Securities Exchange Act
13 See Notice, supra note 3.
Release Nos. 54739 (November 9, 2006), 71 FR
1 15 U.S.C. 78s(b)(1). 14 15 U.S.C. 78f.
66993 (November 17, 2006) (SR-Amex-2006–78);
2 17 CFR 240.19b–4. 15 Additionally, in approving the proposed rule
55621 (April 12, 2007), 72 FR 19571 (April 18,
3 See Securities Exchange Act Release No. 74131 2007) (SR–NYSEArca-2006–86); and 55269 change, the Commission has considered the
(January 26, 2015), 80 FR 5161 (SR–MIAX–2015– (February 9, 2007), 72 FR 7490 (February 15, 2007) proposed rule’s impact on efficiency, competition,
04) (‘‘Notice’’). (SR–NASDAQ–2006–050). and capital formation. See 15 U.S.C. 78c(f).

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Document Created: 2018-02-21 09:42:07
Document Modified: 2018-02-21 09:42:07

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 14424