80 FR 29136 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees To Introduce a New “Retail” Designation for Priority Customer Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 97 (May 20, 2015)
Federal Register Volume 80, Issue 97 (May 20, 2015)
| Page Range | 29136-29138 | |
| FR Document | 2015-12150 |
[Federal Register Volume 80, Number 97 (Wednesday, May 20, 2015)] [Notices] [Pages 29136-29138] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-12150] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74971; File No. SR-ISE Gemini-2015-09] Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees To Introduce a New ``Retail'' Designation for Priority Customer Orders May 14, 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 April 29, 2015, ISE Gemini, LLC (the ``Exchange'' or the ``ISE Gemini'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change, as described in Items I, II, and III below, which items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change ISE Gemini proposes to amend the Schedule of Fees to introduce a new ``Retail'' designation for Priority Customer orders. The text of the proposed rule change is available on the Exchange's Web site (http://www.ise.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 self-regulatory organization 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 self-regulatory organization 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 Exchange proposes to amend the Schedule of Fees to introduce a new ``Retail'' designation for Priority Customer orders. 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 Rule 100(a)(37A). This market participant type is one of six currently recognized for purposes of determining applicable fees and rebates, along with: Market Maker,\3\ Non-ISE Gemini Market Maker,\4\ Firm Proprietary,\5\ Broker-Dealer,\6\ and Professional Customer.\7\ The Priority Customer designation was adopted by the Exchange to provide competitive pricing and market structure advantages to retail investors, and to level the playing field between retail investors and market professionals. As such, Priority Customer orders executed on the Exchange are generally afforded more favorable fees and rebates than other market participants, including Professional Customers. The Exchange now believes that it is appropriate to introduce a further distinction between market participants that fall within the definition of Priority Customer. --------------------------------------------------------------------------- \3\ The term ``Market Makers'' refers to ``Competitive Market Makers'' and ``Primary Market Makers'' collectively. See Rule 100(a)(25). \4\ A ``Non-ISE Gemini Market Maker'' is a market maker as defined in Section 3(a)(38) of the Securities Exchange Act of 1934, as amended, registered in the same options class on another options exchange. See Schedule of Fees, Preface. \5\ A ``Firm Proprietary'' order is an order submitted by a member for its own proprietary account. See Schedule of Fees, Preface. \6\ A ``Broker-Dealer'' order is an order submitted by a member for a broker-dealer account that is not its own proprietary account. See Schedule of Fees, Preface. \7\ A ``Professional Customer'' is a person or entity that is not a broker/dealer and is not a Priority Customer. See Schedule of Fees, Preface. --------------------------------------------------------------------------- In particular, the Exchange proposes to introduce a new ``Retail'' designation for Priority Customer orders for the purpose of determining applicable fees and rebates. As proposed, a Retail order is a Priority Customer order that originates from a natural person, provided that no change is made to the terms of the order with respect to price or side of market and the order does not originate from a trading algorithm or any other computerized methodology. The proposed definition of a Retail order is designed to mirror a similar concept introduced by the New York Stock Exchange (``NYSE''), NYSE Amex (``Amex''), and other equities exchanges to promote price improvement for orders submitted by retail investors.\8\ The proposed rule change, however, is intended to provide benefits to retail options investors in the form of more favorable pricing rather than market structure changes.\9\ While the Exchange is not amending fees and rebates applicable to Priority Customer orders that are designated Retail at this time, the Exchange intends to introduce special fees and rebates for Retail orders at a later date, such that Retail orders will potentially be entitled to the most favorable fees and rebates available on the Exchange. Until such time, Retail orders will be charged the same fees and provided the same rebates as other Priority Customer orders. --------------------------------------------------------------------------- \8\ See Securities Exchange Act Release No. 67347 (July 3, 2012), 77 FR 40673 (July 10, 2012) (SR-NYSE-2011-55; SR-NYSEAmex- 2011-84) (Approval Order). See also NYSE and Amex Rule 107C(a)(3). NYSE and Amex define a ``Retail Order'' as an agency order or a riskless principal order that meets the criteria of FINRA Rule 5320.03 that originates from a natural person and is submitted to the Exchange by a Retail Member Organization, provided that no change is made to the terms of the order with respect to price or side of market and the order does not originate from a trading algorithm or any other computerized methodology. \9\ In addition, the Exchange notes that unlike the related equities programs, all members will be eligible to mark orders as Retail provided that the orders meet the requirements discussed above. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\10\ In particular, the proposal is consistent with Section 6(b)(5) of the Act,\11\ because is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Specifically, the proposed rule change will allow the Exchange to potentially offer more favorable fees and rebates to Retail orders that originate from natural [[Page 29137]] persons. Currently, the Exchange distinguishes between orders executed for two categories of Public Customer: \12\ Priority and Professional Customers. Priority Customers are distinguished from Professional Customers by the requirement that they not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). Because of this limitation, Priority Customer orders are generally afforded more favorable fees and rebates than market professionals, including Professional Customers. The Exchange now believes that it is appropriate to distinguish further between orders that originate from a natural person (i.e., Retail orders) and other Priority Customer orders. --------------------------------------------------------------------------- \12\ A ``Public Customer'' is a person or entity that is not a broker or dealer in securities. See Rule 100(a)(38). --------------------------------------------------------------------------- The equities markets already provide benefits to order flow that originates from a natural person and not a trading algorithm or any other computerized methodology. The Exchange believes that the proposed definition of a Retail order is appropriate as it is substantially similar to the definition already used in the equities context, and is therefore already familiar to market participants. The Exchange notes, however, that unlike equities exchanges such as NYSE and Amex, it is not proposing any market structure changes at this time to accompany the introduction of a Retail designation for Priority Customer orders. All Priority Customer orders will continue to benefit from the current market structure benefits that they receive on the Exchange. In addition, Priority Customer orders other than Retail orders will continue to benefit from pricing that is generally more favorable than pricing adopted for Professional Customer and non-Customer orders. By adopting a definition of Retail order, the Exchange hopes to be able to offer potentially more favorable fees and rebates to retail investors. The Exchange believes that this will advance the goals identified when the Exchange first introduced the Priority Customer designation, by providing genuine retail investors with the best prices available on the Exchange. In this regard, the Exchange notes that the fees and rebates for Retail orders will initially be the same as fees and rebates for other Priority Customer orders; however, the Exchange will introduce additional pricing advantages for Retail orders at a later date pursuant to a proposed rule change filed with the Commission. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\13\ the Exchange does not believe that the proposed rule change will impose any burden on intermarket or intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the Exchange believes the proposed Retail designation is an innovative change that evidences strong competition between options markets. In particular, the proposed rule change is designed to allow the Exchange to potentially offer the most favorable fees and rebates available to Retail orders that originate from natural persons. The Exchange operates in a highly competitive market in which market participants can readily direct their order flow to competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and rebates to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed changes reflect this competitive environment. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange believes that the foregoing proposed rule change may take effect upon filing with the Commission pursuant to Section19(b)(3)(A) \14\ of the Act and Rule 19b-4(f)(6) thereunder \15\ 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 after its filing date, or such shorter time as the Commission may designate. The Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing the proposed rule change. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments 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. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an Email to [email protected]. Please include File Number SR-ISE Gemini-2015-09 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-ISE Gemini-2015-09. 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 such filing also will be available for inspection and copying at the principal office of ISE Gemini. All comments received will be posted without change; [[Page 29138]] 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 Number SR-ISE Gemini-2015-09 and should be submitted by June 10, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-12150 Filed 5-19-15; 8:45 am] BILLING CODE 8011-01-P
![29136 Federal Register / Vol. 80, No. 97 / Wednesday, May 20, 2015 / Notices
available publicly. All submissions on the proposed rule change. The text provided that no change is made to the
should refer to File Number SR–CBOE– of these statements may be examined at terms of the order with respect to price
2015–012 and should be submitted on the places specified in Item IV below. or side of market and the order does not
or before June 10, 2015. The self-regulatory organization has originate from a trading algorithm or
For the Commission, by the Division of prepared summaries, set forth in any other computerized methodology.
Trading and Markets, pursuant to delegated sections A, B and C below, of the most The proposed definition of a Retail
authority.19 significant aspects of such statements. order is designed to mirror a similar
Robert W. Errett, concept introduced by the New York
A. Self-Regulatory Organization’s Stock Exchange (‘‘NYSE’’), NYSE Amex
Deputy Secretary. Statement of the Purpose of, and
[FR Doc. 2015–12143 Filed 5–19–15; 8:45 am] (‘‘Amex’’), and other equities exchanges
Statutory Basis for, the Proposed Rule to promote price improvement for
BILLING CODE 8011–01–P Change orders submitted by retail investors.8
1. Purpose The proposed rule change, however, is
SECURITIES AND EXCHANGE The Exchange proposes to amend the intended to provide benefits to retail
COMMISSION Schedule of Fees to introduce a new options investors in the form of more
‘‘Retail’’ designation for Priority favorable pricing rather than market
[Release No. 34–74971; File No. SR–ISE structure changes.9 While the Exchange
Gemini–2015–09] Customer orders. A ‘‘Priority Customer’’
is a person or entity that is not a broker/ is not amending fees and rebates
Self-Regulatory Organizations; ISE dealer in securities, and does not place applicable to Priority Customer orders
Gemini, LLC; Notice of Filing and more than 390 orders in listed options that are designated Retail at this time,
Immediate Effectiveness of Proposed per day on average during a calendar the Exchange intends to introduce
Rule Change To Amend the Schedule month for its own beneficial account(s), special fees and rebates for Retail orders
of Fees To Introduce a New ‘‘Retail’’ as defined in Rule 100(a)(37A). This at a later date, such that Retail orders
Designation for Priority Customer market participant type is one of six will potentially be entitled to the most
Orders currently recognized for purposes of favorable fees and rebates available on
determining applicable fees and rebates, the Exchange. Until such time, Retail
May 14, 2015. orders will be charged the same fees and
along with: Market Maker,3 Non-ISE
Pursuant to Section 19(b)(1) of the provided the same rebates as other
Gemini Market Maker,4 Firm
Securities Exchange Act of 1934 (the Priority Customer orders.
Proprietary,5 Broker-Dealer,6 and
‘‘Act’’),1 and Rule 19b–4 thereunder,2
Professional Customer.7 The Priority 2. Statutory Basis
notice is hereby given that on April 29,
Customer designation was adopted by The Exchange believes that the
2015, ISE Gemini, LLC (the ‘‘Exchange’’
the Exchange to provide competitive proposed rule change is consistent with
or the ‘‘ISE Gemini’’) filed with the
pricing and market structure advantages the requirements of the Act and the
Securities and Exchange Commission
to retail investors, and to level the rules and regulations thereunder that
(the ‘‘Commission’’) the proposed rule
playing field between retail investors are applicable to a national securities
change, as described in Items I, II, and
and market professionals. As such, exchange, and, in particular, with the
III below, which items have been
Priority Customer orders executed on requirements of Section 6(b) of the
prepared by the self-regulatory
the Exchange are generally afforded Act.10 In particular, the proposal is
organization. The Commission is
more favorable fees and rebates than consistent with Section 6(b)(5) of the
publishing this notice to solicit
other market participants, including Act,11 because is designed to promote
comments on the proposed rule change
Professional Customers. The Exchange just and equitable principles of trade,
from interested persons.
now believes that it is appropriate to remove impediments to and perfect the
I. Self-Regulatory Organization’s introduce a further distinction between mechanisms of a free and open market
Statement of the Terms of Substance of market participants that fall within the and a national market system and, in
the Proposed Rule Change definition of Priority Customer. general, to protect investors and the
ISE Gemini proposes to amend the In particular, the Exchange proposes
public interest.
Schedule of Fees to introduce a new to introduce a new ‘‘Retail’’ designation Specifically, the proposed rule change
‘‘Retail’’ designation for Priority for Priority Customer orders for the will allow the Exchange to potentially
Customer orders. The text of the purpose of determining applicable fees offer more favorable fees and rebates to
proposed rule change is available on the and rebates. As proposed, a Retail order Retail orders that originate from natural
Exchange’s Web site (http:// is a Priority Customer order that
www.ise.com), at the principal office of originates from a natural person, 8 See Securities Exchange Act Release No. 67347
the Exchange, and at the Commission’s (July 3, 2012), 77 FR 40673 (July 10, 2012) (SR–
3 The term ‘‘Market Makers’’ refers to NYSE–2011–55; SR–NYSEAmex–2011–84)
Public Reference Room. ‘‘Competitive Market Makers’’ and ‘‘Primary Market (Approval Order). See also NYSE and Amex Rule
II. Self-Regulatory Organization’s Makers’’ collectively. See Rule 100(a)(25). 107C(a)(3).
4 A ‘‘Non-ISE Gemini Market Maker’’ is a market NYSE and Amex define a ‘‘Retail Order’’ as an
Statement of the Purpose of, and maker as defined in Section 3(a)(38) of the agency order or a riskless principal order that meets
Statutory Basis for, the Proposed Rule Securities Exchange Act of 1934, as amended, the criteria of FINRA Rule 5320.03 that originates
Change registered in the same options class on another from a natural person and is submitted to the
options exchange. See Schedule of Fees, Preface. Exchange by a Retail Member Organization,
In its filing with the Commission, the 5 A ‘‘Firm Proprietary’’ order is an order provided that no change is made to the terms of the
mstockstill on DSK4VPTVN1PROD with NOTICES
self-regulatory organization included submitted by a member for its own proprietary order with respect to price or side of market and
statements concerning the purpose of, account. See Schedule of Fees, Preface. the order does not originate from a trading
6 A ‘‘Broker-Dealer’’ order is an order submitted algorithm or any other computerized methodology.
and basis for, the proposed rule change 9 In addition, the Exchange notes that unlike the
by a member for a broker-dealer account that is not
and discussed any comments it received its own proprietary account. See Schedule of Fees, related equities programs, all members will be
Preface. eligible to mark orders as Retail provided that the
19 17 CFR 200.30–3(a)(12). 7 A ‘‘Professional Customer’’ is a person or entity orders meet the requirements discussed above.
1 15 U.S.C. 78s(b)(1). 10 15 U.S.C. 78f(b).
that is not a broker/dealer and is not a Priority
2 17 CFR 240.19b–4. Customer. See Schedule of Fees, Preface. 11 15 U.S.C. 78f(b)(5).
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![29138 Federal Register / Vol. 80, No. 97 / Wednesday, May 20, 2015 / Notices
the Commission does not edit personal II. Clearing Agency’s Statement of the Member’s CNS long position is first
identifying information from Purpose of, and Statutory Basis for, the applied to the Member’s current CNS
submissions. You should submit only Proposed Rule Change position that is not represented by the
information that you wish to make In its filing with the Commission, Buy-In Position, and then that activity
available publicly. All submissions NSCC included statements concerning may be applied to reduce the Member’s
should refer to File Number SR–ISE the purpose of and basis for the Buy-In Position. If a Member’s Buy-In
Gemini–2015–09 and should be proposed rule change and discussed any Position is reduced as a result of settling
submitted by June 10, 2015. comments it received on the proposed trades or miscellaneous activity, its Buy-
For the Commission, by the Division of rule change. The text of these statements In Position is adjusted to reflect the new
Trading and Markets, pursuant to delegated may be examined at the places specified amount. If, at any time during the Buy-
authority.16 in Item IV below. NSCC has prepared In Period, settling trades or
Robert W. Errett, summaries, set forth in sections A, B, miscellaneous activity reduce the
Deputy Secretary. and C below, of the most significant Member’s long position such that the
[FR Doc. 2015–12150 Filed 5–19–15; 8:45 am] aspects of such statements. Member becomes either short or flat in
that position, or causes the Member’s
BILLING CODE 8011–01–P
(A) Clearing Agency’s Statement of the CNS long position to be reduced to less
Purpose of, and Statutory Basis for, the than its outstanding Buy-In Position in
Proposed Rule Change that security, NSCC will consider that
SECURITIES AND EXCHANGE
COMMISSION 1. Purpose Member’s Buy-In Position with respect
to that security complete and satisfied.
[Release No. 34–74965; File No. SR–NSCC– One of NSCC’s core services as a NSCC will update the Buy-In Notice to
2015–002] central counterparty is trade clearance reflect the reduced Buy-In Position if
and settlement through CNS, where only a portion of the Buy-In Position is
Self-Regulatory Organizations; compared and recorded transactions in satisfied, or the Buy-In Notice will be
National Securities Clearing eligible securities for a particular cancelled if the entire Buy-In Position is
Corporation; Notice of Filing and settlement date are netted by issue into satisfied by the settling trades or
Immediate Effectiveness of Proposed one net long (buy) or net short (sell) miscellaneous activity.
Rule Change To Clarify NSCC’s Rules position. As a continuous net system, This process by which a Buy-In
& Procedures Relating to the Process those positions are further netted with Notice would be updated to reflect
by Which NSCC Members Submit Buy- positions of the same issue that remain settling trades or miscellaneous activity
Ins Within NSCC’s Continuous Net open after their originally scheduled is not currently described in NSCC’s
Settlement System settlement date, so that trades or Rules. As such, NSCC is proposing to
miscellaneous activity scheduled to update Rule 11, Section 7 of its Rules in
May 14, 2015.
settle on any day are netted with fail order to describe the effect of settling
Pursuant to Section 19(b)(1) 1 of the
positions to result in a single deliver or trades or miscellaneous activity on a
Securities Exchange Act of 1934 (‘‘Act’’)
receive obligation for each Member for Member’s Buy-In Position. Pursuant to
and Rule 19b–4 2 thereunder, notice is each issue in which it has activity.
hereby given that on May 4, 2015, this proposed rule change, NSCC’s
Currently, under NSCC’s Rules, a Rules will make clear that any portion
National Securities Clearing Corporation Member with a long position at the end
(‘‘NSCC’’) filed with the Securities and of a Member’s Buy-In Position would be
of the day may submit to NSCC a Notice considered complete and satisfied if, at
Exchange Commission (‘‘Commission’’) of Intention to Buy-In (‘‘Buy-In Notice’’)
the proposed rule change as described any time during the Buy-in Period that
specifying a quantity of securities (not Member’s CNS long position is reduced
in Items I, II and III below, which Items exceeding such long position) (‘‘Buy-In
have been prepared by NSCC. NSCC to less than the outstanding Buy-In
Position’’) that it intends to purchase to Position, or its Buy-In Position is
filed the proposed rule change pursuant satisfy the fail that resulted in that long
to Section 19(b)(3)(A) 3 of the Act and reduced such that the Member is either
position, or ‘‘buy-in’’.5 Typically, the flat or short in that security. If the entire
Rule 19b–4(f)(1) 4 thereunder. The day the Buy-In Notice is submitted is
proposed rule change was effective Buy-In Position is considered complete
referred to as N, and N+1 and N+2 refer and satisfied, it will be removed from
upon filing with the Commission. The to the succeeding days (N through N+2
Commission is publishing this notice to the system. The proposed rule change
is referred to as the ‘‘Buy-In Period’’).6 would also make a technical correction
solicit comments on the proposed rule The Buy-In Position is given high
change from interested persons. to Procedure X, as marked on Exhibit 5
priority for allocation from the CNS hereto.
I. Clearing Agency’s Statement of the night cycle on N+1 through completion
Terms of Substance of the Proposed of the CNS day cycle on N+2. 2. Statutory Basis
Rule Change The CNS position of a long Member The proposed rule change is
that submits a Buy-In Notice can change consistent with the Act and the rules
The proposed rule change consists of during the Buy-In Period as a result of
amendments to NSCC’s Rules & and regulations thereunder, in
settling trades or miscellaneous particular Section 17A(b)(3)(F) 8 because
Procedures (‘‘Rules’’) in order to clarify activity.7 Settling trades or
those Rules relating to the process by it will promote the prompt and accurate
miscellaneous activity that reduce a clearance and settlement of securities
which NSCC Members submit buy-ins
within NSCC’s Continuous Net transactions in that it will provide
5 Members are not permitted to submit a Buy-In
mstockstill on DSK4VPTVN1PROD with NOTICES
Settlement (‘‘CNS’’) system, as more clarity to NSCC’s Members regarding the
Notice with respect to securities that are subject to
fully described below. a voluntary corporate reorganization. process by which a Buy-In Notice would
6 NSCC’s Rules provide that Members may also be updated to reflect settling trades or
16 17 CFR 200.30–3(a)(12).
submit Buy-in Retransmittal Notices on N+1. This miscellaneous activity. Additionally,
proposed rule clarification would apply to these the proposed rule change constitutes a
1 15 U.S.C. 78s(b)(1). Buy-in Retransmittal Notices as well.
2 17 CFR 240.19b–4. 7 Miscellaneous activity processed by CNS that stated policy, practice, or interpretation
3 15 U.S.C. 78s(b)(3)(A).
updates the net position of a security could include,
4 17 CFR 240.19b–4(f)(1). for example, corporate actions and stock dividends. 8 15 U.S.C. 78q–1(b)(3)(F).
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Document Created: 2018-02-21 10:29:27
Document Modified: 2018-02-21 10:29:27
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 29136 |
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