80 FR 30503 - Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing of a Proposed Rule Change Regarding Audit Trail Retention Requirements
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 102 (May 28, 2015)
Federal Register Volume 80, Issue 102 (May 28, 2015)
| Page Range | 30503-30505 | |
| FR Document | 2015-12831 |
[Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)] [Notices] [Pages 30503-30505] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-12831] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75025; File No. SR-CFE-2015-004] Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing of a Proposed Rule Change Regarding Audit Trail Retention Requirements May 21, 2015. Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on May 8, 2015 CBOE Futures Exchange, LLC (``CFE'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change described in Items I, II, and III below, which Items have been prepared by CFE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. CFE also has filed this proposed rule change with the Commodity Futures Trading Commission (``CFTC''). CFE filed a written certification with the CFTC under Section 5c(c) of the Commodity Exchange Act (``CEA'') \2\ on May 8, 2015. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(7). \2\ 7 U.S.C. 7a-2(c). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Description of the Proposed Rule Change The Exchange proposes to amend its rules related to audit trail retention requirements. The scope of this filing is limited solely to the application of the rule amendments to security futures traded on CFE. The only security futures currently traded on CFE are traded under Chapter 16 of CFE's Rulebook which is applicable to Individual Stock Based and Exchange-Traded Fund Based Volatility Index security futures. The text of the proposed rule change is attached as Exhibit 4 to the filing but is not attached to the publication of this notice. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CFE 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. CFE 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 CFE rule amendments included as part of this rule change is to amend CFE's requirements regarding the maintenance of front-end audit trail information under CFE Rule 403 (Order Entry). The rule amendments included as part of this rule change are to apply to all products traded on CFE, including both non-security futures and security futures. CFE Rule 403(c) currently requires every CFE Trading Privilege Holder (``TPH'') to maintain front-end audit trail information for all electronic orders entered into CFE's trading system, including order modifications and cancellations. The amendments provide that only CFE clearing members \3\ and [[Page 30504]] TPHs that are futures commission merchants (``FCMs'') or introducing brokers (``IBs'') are required by Rule 403(c) to maintain front-end audit trail information for all electronic orders as well as quotes entered by that party into CFE's trading system, including all related modifications and cancellations. In addition, the amendments provide that each CFE clearing member must also maintain, or cause to be maintained, front-end audit trail information for all electronic orders and quotes entered into CFE's trading system by any TPH for which the clearing member is identified in the order or quote submission as the clearing member for the execution of the order or quote, including all related modifications and cancellations. Because the first amended sentence of Rule 403(c) requires each CFE clearing member to maintain audit trail information entered by that party and the second amended sentence of Rule 403(c) requires each CFE clearing member to maintain audit trail information where the clearing member has been identified as the clearing member for the execution, there is the potential for some limited overlap in the information CFE clearing members must maintain under these two provisions. In addition, the amendments make clear that each TPH is still obligated to comply with the provisions of CFTC Regulation 1.35 \4\ as applicable to that TPH notwithstanding any of the provisions of Rule 403(c). Among other things, CFTC Regulation 1.35 provides requirements relating to records that FCMs, IBs, and members of a designated contract market (``DCM'') must retain. Lastly, the amendments change the title of Rule 403 from ``Order Entry'' to ``Order Entry and Maintenance of Front-End Audit Trail Information'' to provide greater clarity as to the requirements covered by the Rule. --------------------------------------------------------------------------- \3\ CFE Rule 121 defines ``Clearing Member'' to mean a member of The Options Clearing Corporation (``OCC'') that is a CFE TPH and that is authorized under OCC Rules to clear trades in any or all CFE contracts. \4\ 17 CFR 1.35. --------------------------------------------------------------------------- Front-end audit trail information is a chronological record that provides documentary evidence of the transactions effected on CFE's trading system. The CFTC's DCM Core Principle 10 (Trade Information) \5\ and the CFTC's related regulations codified in CFTC Regulations 38.551-553 \6\ require that a DCM maintain an audit trail program in order to prevent and detect customer and market abuse. --------------------------------------------------------------------------- \5\ 17 CFR 38.550. \6\ 17 CFR 38.551-553. --------------------------------------------------------------------------- CFE is proposing these amendments for the following reasons. First, when CFE initially established its audit trail program and set forth CFE Rule 403, CFE provided that each TPH was required to maintain front-end audit trail information sufficient to allow CFE to conduct an annual audit trail exam of that TPH, a requirement that went above and beyond what the CFTC requires. The CFTC permits CFE to require clearing members to retain this information for purposes of audit trail exams and to conduct audit trail exams of clearing members in lieu of conducting them of a clearing member's TPH customers. Since Rule 403's inception, there is now an efficient format and mechanism for CFE clearing members to obtain CFE audit trail data for their TPH customers, whereas there was no such format and mechanism when CFE established its current requirements related to the maintenance of front-end audit trail information. Second, it is more efficient for CFE to collect audit trail data from its clearing members than all of its TPHs for audit trail reviews and doing so will enhance the effectiveness of CFE's regulatory program. CFE clearing members now have a standardized method for maintaining and submitting audit trail data of their TPHs, and CFE will be able to access all of the same audit trail information CFE currently can access under Rule 403's current language. Finally, other futures exchanges currently have similar requirements in place.\7\ --------------------------------------------------------------------------- \7\ See CME Rule 536.B.2 (``Clearing members guaranteeing a connection to Globex are responsible for maintaining or causing to be maintained the electronic audit trail for such systems.''); ICE Futures U.S. Rule 27.12A (``Each Clearing Member connecting to the ETS [ICE electronic trading system] by Direct Access is responsible for (1) maintaining or causing to be maintained . . . the audit trail for all orders submitted to the Exchange through its Direct Access connection and any Order Routing system. . . .''). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\8\ in general, and furthers the objectives of Sections 6(b)(5) \9\ and 6(b)(7) \10\ in particular in that it is designed: --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). \10\ 15 U.S.C. 78f(b)(7). ---------------------------------------------------------------------------To promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system, and in general, to protect investors and the public interest. The Exchange believes that the proposed rule change would strengthen and make more efficient and effective CFE's administration of its audit trail program which will contribute to preventing and detecting customer and market abuse. The change provides that only CFE clearing members and TPHs that are FCMs or IBs, rather than all TPHs, are required to maintain front-end audit trail information for all electronic orders as well as quotes entered into CFE's trading system, including all related modifications and cancellations. In addition, the change provides that CFE clearing members must also maintain, or cause to be maintained, this information for their TPH customers. This proposed rule change promotes efficiencies because CFE clearing members now have available an efficient format and mechanism to obtain CFE audit trail data for their TPH customers. In addition, it is more efficient for CFE to collect audit trail data from its clearing members than all of its TPHs for audit trail reviews and doing so will enhance the effectiveness of CFE's regulatory program. Finally, this proposed rule change is consistent with the requirements of other futures exchanges. In summary, CFE is requiring the same audit information to be maintained and is simply changing who is required to keep it. B. Self-Regulatory Organization's Statement on Burden on Competition CFE does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act, in that the rule change will enhance CFE's ability to carry out its responsibilities as a self-regulatory organization. The Exchange believes that the proposed rule change is equitable and not unfairly discriminatory because the amendments regarding the maintenance of front-end audit trail information apply equally to all parties that are subject to the applicable requirements. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change will become effective on or after May 22, 2015, on a date to be announced by the Exchange through the issuance of a circular. At any time within 60 days of [[Page 30505]] the date of effectiveness of the proposed rule change, the Commission, after consultation with the CFTC, may summarily abrogate the proposed rule change and require that the proposed rule change be refiled in accordance with the provisions of Section 19(b)(1) of the Act.\11\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(1). --------------------------------------------------------------------------- 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 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 Number SR-CFE-2015-004 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-CFE-2015-004. 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 offices 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 Number SR-CFE-2015-004, and should be submitted on or before June 18, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(73). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-12831 Filed 5-27-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Notices 30503
SUMMARY: The Commission is noticing a Postal Service’s Notice are consistent under Section 5c(c) of the Commodity
recent Postal Service filing concerning with the policies of 39 U.S.C. 3632, Exchange Act (‘‘CEA’’) 2 on May 8, 2015.
an amendment to Priority Mail Contract 3633, or 3642, 39 CFR 3015.5, and 39
I. Self-Regulatory Organization’s
105 negotiated service agreement. This CFR part 3020, subpart B. Comments are
Description of the Proposed Rule
notice informs the public of the filing, due no later than May 29, 2015. The
Change
invites public comment, and takes other public portions of these filings can be
administrative steps. accessed via the Commission’s Web site The Exchange proposes to amend its
DATES: Comments are due: May 29, (http://www.prc.gov). rules related to audit trail retention
2015. The Commission appoints James F. requirements. The scope of this filing is
Callow to represent the interests of the limited solely to the application of the
ADDRESSES: Submit comments general public (Public Representative) rule amendments to security futures
electronically via the Commission’s in this docket. traded on CFE. The only security futures
Filing Online system at http:// currently traded on CFE are traded
www.prc.gov. Those who cannot submit III. Ordering Paragraphs under Chapter 16 of CFE’s Rulebook
comments electronically should contact It is ordered: which is applicable to Individual Stock
the person identified in the FOR FURTHER 1. The Commission reopens Docket Based and Exchange-Traded Fund
INFORMATION CONTACT section by No. CP2015–25 for consideration of Based Volatility Index security futures.
telephone for advice on filing matters raised by the Postal Service’s The text of the proposed rule change is
alternatives. Notice. attached as Exhibit 4 to the filing but is
FOR FURTHER INFORMATION CONTACT: 2. Pursuant to 39 U.S.C. 505, the not attached to the publication of this
David A. Trissell, General Counsel, at Commission appoints James F. Callow notice.
202–789–6820. to serve as an officer of the Commission
(Public Representative) to represent the II. Self-Regulatory Organization’s
SUPPLEMENTARY INFORMATION: Statement of the Purpose of, and
interests of the general public in this
Table of Contents proceeding. Statutory Basis for, the Proposed Rule
3. Comments are due no later than Change
I. Introduction
II. Notice of Filings May 29, 2015. In its filing with the Commission, CFE
III. Ordering Paragraphs 4. The Secretary shall arrange for included statements concerning the
publication of this order in the Federal purpose of and basis for the proposed
I. Introduction Register. rule change and discussed any
On May 21, 2015, the Postal Service By the Commission. comments it received on the proposed
filed notice that it has agreed to an Ruth Ann Abrams, rule change. The text of these statements
Amendment to the existing Priority Mail Acting Secretary. may be examined at the places specified
Contract 105 negotiated service in Item IV below. CFE has prepared
[FR Doc. 2015–12906 Filed 5–27–15; 8:45 am]
agreement (Existing Agreement) summaries, set forth in Sections A, B,
BILLING CODE 7710–FW–P
approved in this docket.1 In support of and C below, of the most significant
its Notice, the Postal Service includes a aspects of such statements.
redacted copy of the Amendment. Id.
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
Attachment A.
COMMISSION Statement of the Purpose of, and
The Postal Service also filed the
Statutory Basis for, the Proposed Rule
unredacted Amendment under seal. The [Release No. 34–75025; File No. SR–CFE–
Change
Postal Service seeks to incorporate by 2015–004]
reference the Application for Non- 1. Purpose
Public Treatment originally filed in this Self-Regulatory Organizations; CBOE
Futures Exchange, LLC; Notice of The purpose of the proposed CFE rule
docket for the protection of information amendments included as part of this
it has filed under seal. Notice at 1. The Filing of a Proposed Rule Change
Regarding Audit Trail Retention rule change is to amend CFE’s
Postal Service states that the requirements regarding the maintenance
Amendment does not materially affect Requirements
of front-end audit trail information
cost coverage; therefore, it asserts that May 21, 2015. under CFE Rule 403 (Order Entry). The
the supporting financial documentation rule amendments included as part of
Pursuant to Section 19(b)(7) of the
and certification remain applicable. Id. this rule change are to apply to all
Securities Exchange Act of 1934
The Amendment replaces section I.B products traded on CFE, including both
(‘‘Act’’),1 notice is hereby given that on
of the Existing Agreement, which non-security futures and security
May 8, 2015 CBOE Futures Exchange,
concerns the minimum commitment futures.
LLC (‘‘CFE’’ or ‘‘Exchange’’) filed with
required for eligibility for certain prices. CFE Rule 403(c) currently requires
the Securities and Exchange
Id. Attachment A at 1. every CFE Trading Privilege Holder
Commission (‘‘SEC’’ or ‘‘Commission’’)
The Postal Service intends for the (‘‘TPH’’) to maintain front-end audit
the proposed rule change described in
Amendment to become effective one trail information for all electronic orders
Items I, II, and III below, which Items
business day after the date that the entered into CFE’s trading system,
have been prepared by CFE. The
Commission completes its review of the including order modifications and
Commission is publishing this notice to
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Notice. Notice at 1. cancellations. The amendments provide
solicit comments on the proposed rule
II. Notice of Filing change from interested persons. CFE that only CFE clearing members 3 and
The Commission invites comments on also has filed this proposed rule change
27 U.S.C. 7a–2(c).
whether the changes presented in the with the Commodity Futures Trading
3 CFE Rule 121 defines ‘‘Clearing Member’’ to
Commission (‘‘CFTC’’). CFE filed a
mean a member of The Options Clearing
1 Notice of United States Postal Service of written certification with the CFTC Corporation (‘‘OCC’’) that is a CFE TPH and that is
Amendment to Priority Mail Contract 105, with authorized under OCC Rules to clear trades in any
Portions Filed Under Seal, May 21, 2015 (Notice). 1 15 U.S.C. 78s(b)(7). or all CFE contracts.
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TPHs that are futures commission required to maintain front-end audit and make more efficient and effective
merchants (‘‘FCMs’’) or introducing trail information sufficient to allow CFE CFE’s administration of its audit trail
brokers (‘‘IBs’’) are required by Rule to conduct an annual audit trail exam of program which will contribute to
403(c) to maintain front-end audit trail that TPH, a requirement that went above preventing and detecting customer and
information for all electronic orders as and beyond what the CFTC requires. market abuse. The change provides that
well as quotes entered by that party into The CFTC permits CFE to require only CFE clearing members and TPHs
CFE’s trading system, including all clearing members to retain this that are FCMs or IBs, rather than all
related modifications and cancellations. information for purposes of audit trail TPHs, are required to maintain front-
In addition, the amendments provide exams and to conduct audit trail exams end audit trail information for all
that each CFE clearing member must of clearing members in lieu of electronic orders as well as quotes
also maintain, or cause to be conducting them of a clearing member’s entered into CFE’s trading system,
maintained, front-end audit trail TPH customers. Since Rule 403’s including all related modifications and
information for all electronic orders and inception, there is now an efficient cancellations. In addition, the change
quotes entered into CFE’s trading format and mechanism for CFE clearing provides that CFE clearing members
system by any TPH for which the members to obtain CFE audit trail data must also maintain, or cause to be
clearing member is identified in the for their TPH customers, whereas there maintained, this information for their
order or quote submission as the was no such format and mechanism TPH customers. This proposed rule
clearing member for the execution of the when CFE established its current change promotes efficiencies because
order or quote, including all related requirements related to the maintenance CFE clearing members now have
modifications and cancellations. of front-end audit trail information. available an efficient format and
Because the first amended sentence of Second, it is more efficient for CFE to mechanism to obtain CFE audit trail
Rule 403(c) requires each CFE clearing collect audit trail data from its clearing data for their TPH customers. In
member to maintain audit trail members than all of its TPHs for audit addition, it is more efficient for CFE to
information entered by that party and trail reviews and doing so will enhance collect audit trail data from its clearing
the second amended sentence of Rule the effectiveness of CFE’s regulatory members than all of its TPHs for audit
403(c) requires each CFE clearing program. CFE clearing members now trail reviews and doing so will enhance
member to maintain audit trail have a standardized method for the effectiveness of CFE’s regulatory
information where the clearing member maintaining and submitting audit trail program. Finally, this proposed rule
has been identified as the clearing data of their TPHs, and CFE will be able change is consistent with the
member for the execution, there is the to access all of the same audit trail requirements of other futures exchanges.
potential for some limited overlap in the information CFE currently can access In summary, CFE is requiring the same
information CFE clearing members must under Rule 403’s current language. audit information to be maintained and
maintain under these two provisions. In Finally, other futures exchanges is simply changing who is required to
addition, the amendments make clear currently have similar requirements in keep it.
that each TPH is still obligated to place.7
comply with the provisions of CFTC B. Self-Regulatory Organization’s
Regulation 1.35 4 as applicable to that 2. Statutory Basis Statement on Burden on Competition
TPH notwithstanding any of the The Exchange believes that the CFE does not believe that the
provisions of Rule 403(c). Among other proposed rule change is consistent with proposed rule change will impose any
things, CFTC Regulation 1.35 provides Section 6(b) of the Act,8 in general, and burden on competition not necessary or
requirements relating to records that furthers the objectives of Sections appropriate in furtherance of the
FCMs, IBs, and members of a designated 6(b)(5) 9 and 6(b)(7) 10 in particular in purposes of the Act, in that the rule
contract market (‘‘DCM’’) must retain. that it is designed: change will enhance CFE’s ability to
Lastly, the amendments change the title • To promote just and equitable carry out its responsibilities as a self-
of Rule 403 from ‘‘Order Entry’’ to principles of trade, regulatory organization. The Exchange
‘‘Order Entry and Maintenance of Front- • to foster cooperation and believes that the proposed rule change
End Audit Trail Information’’ to provide coordination with persons engaged in is equitable and not unfairly
greater clarity as to the requirements facilitating transactions in securities, discriminatory because the amendments
covered by the Rule. and regarding the maintenance of front-end
Front-end audit trail information is a • to remove impediments to and audit trail information apply equally to
chronological record that provides perfect the mechanism of a free and all parties that are subject to the
documentary evidence of the open market and a national market applicable requirements.
transactions effected on CFE’s trading system, and in general, to protect
C. Self-Regulatory Organization’s
system. The CFTC’s DCM Core Principle investors and the public interest.
Statement on Comments on the
10 (Trade Information) 5 and the CFTC’s The Exchange believes that the
Proposed Rule Change Received From
related regulations codified in CFTC proposed rule change would strengthen
Members, Participants, or Others
Regulations 38.551–553 6 require that a
DCM maintain an audit trail program in 7 See CME Rule 536.B.2 (‘‘Clearing members No written comments were solicited
order to prevent and detect customer guaranteeing a connection to Globex are responsible or received with respect to the proposed
for maintaining or causing to be maintained the rule change.
and market abuse. electronic audit trail for such systems.’’); ICE
asabaliauskas on DSK5VPTVN1PROD with NOTICES
CFE is proposing these amendments Futures U.S. Rule 27.12A (‘‘Each Clearing Member III. Date of Effectiveness of the
for the following reasons. First, when connecting to the ETS [ICE electronic trading
Proposed Rule Change and Timing for
CFE initially established its audit trail system] by Direct Access is responsible for (1)
maintaining or causing to be maintained . . . the Commission Action
program and set forth CFE Rule 403, audit trail for all orders submitted to the Exchange
CFE provided that each TPH was The proposed rule change will
through its Direct Access connection and any Order
Routing system. . . .’’). become effective on or after May 22,
4 17 CFR 1.35. 8 15 U.S.C. 78f(b). 2015, on a date to be announced by the
5 17 CFR 38.550. 9 15 U.S.C. 78f(b)(5). Exchange through the issuance of a
6 17 CFR 38.551–553. 10 15 U.S.C. 78f(b)(7). circular. At any time within 60 days of
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the date of effectiveness of the proposed should refer to File Number SR–CFE– II. Clearing Agency’s Statement of the
rule change, the Commission, after 2015–004, and should be submitted on Purpose of, and Statutory Basis for, the
consultation with the CFTC, may or before June 18, 2015. Proposed Rule Change
summarily abrogate the proposed rule For the Commission, by the Division of
change and require that the proposed Trading and Markets, pursuant to delegated In its filing with the Commission,
rule change be refiled in accordance authority.12 DTC included statements concerning
with the provisions of Section 19(b)(1) Robert W. Errett, the purpose of and basis for the
of the Act.11 Deputy Secretary. proposed rule change and discussed any
comments it received on the proposed
IV. Solicitation of Comments [FR Doc. 2015–12831 Filed 5–27–15; 8:45 am]
rule change. The text of these statements
Interested persons are invited to BILLING CODE 8011–01–P
may be examined at the places specified
submit written data, views, and in Item IV below. DTC has prepared
arguments concerning the foregoing, summaries, set forth in sections A, B,
including whether the proposed rule SECURITIES AND EXCHANGE
COMMISSION and C below, of the most significant
change is consistent with the Act.
aspects of such statements.
Comments may be submitted by any of
the following methods: [Release No. 34–75030; File No. SR–DTC– (A) Clearing Agency’s Statement of the
2015–006] Purpose of, and Statutory Basis for, the
Electronic Comments
Proposed Rule Change
• Use the Commission’s Internet Self-Regulatory Organizations; The
comment form (http://www.sec.gov/ Depository Trust Company; Notice of 1. Purpose
rules/sro.shtml); or Filing and Immediate Effectiveness of
• Send an email to rule-comments@ Proposed Rule Change To Clarify That Pursuant to DTC’s Rule 2 (Participants
sec.gov. Please include File Number SR– Participants Are Required To and Pledgees), a DTC Participant is
CFE–2015–004 on the subject line. Participate in Operational Testing by required to have ‘‘adequate physical
DTC, Including Testing of DTC’s facilities, books and records and
Paper Comments Business Continuity and Disaster procedures to fulfill its anticipated
• Send paper comments in triplicate Recovery Plans commitments to, and to meet the
to Secretary, Securities and Exchange operational requirements of, the
Commission, 100 F Street NE., May 21, 2015.
Corporation, other Participants and
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) 1 of the Pledgees with necessary promptness
All submissions should refer to File Securities Exchange Act of 1934 (‘‘Act’’) and accuracy and to conform to any
Number SR–CFE–2015–004. This file and Rule 19b–4 2 thereunder, notice is condition and requirement which the
number should be included on the hereby given that on May 12, 2015, The
Corporation reasonably deems necessary
subject line if email is used. To help the Depository Trust Company (‘‘DTC’’)
for its protection.’’ DTC is proposing to
Commission process and review your filed with the Securities and Exchange
update Rule 2, as marked on Exhibit 5
comments more efficiently, please use Commission (‘‘Commission’’) the
proposed rule change as described in hereto,6 in order to clarify that this
only one method. The Commission will
Items I, II and III below, which Items requirement may include engagement in
post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ have been prepared by DTC. DTC filed operational testing, including testing of
rules/sro.shtml). Copies of the the proposed rule change pursuant to DTC’s business continuity and disaster
submission, all subsequent Section 19(b)(3)(A) 3 of the Act and Rule recovery plans. The proposed change to
amendments, all written statements 19b–4(f)(1) 4 thereunder. The proposed Rule 2 reflects an existing policy with
with respect to the proposed rule rule change was effective upon filing respect to the meaning of an existing
change that are filed with the with the Commission. The Commission rule, and will provide transparency
Commission, and all written is publishing this notice to solicit regarding an existing requirement.
communications relating to the comments on the proposed rule change
2. Statutory Basis
proposed rule change between the from interested persons.
Commission and any person, other than I. Clearing Agency’s Statement of the The proposed rule change is
those that may be withheld from the Terms of Substance of the Proposed consistent with the Ac [sic], and the
public in accordance with the Rule Change rules and regulations thereunder, in
provisions of 5 U.S.C. 552, will be particular Section 17A(b)(3)(F) 7 because
available for Web site viewing and The proposed rule change consists of it will promote the prompt and accurate
printing in the Commission’s Public a change to Rule 2 of the Rules of DTC clearance and settlement of securities
Reference Room, 100 F Street NE., to clarify that Participants are required transactions in that it will provide
Washington, DC 20549, on official to participate in operational testing by clarity to DTC Participants regarding
business days between the hours of DTC, including testing of DTC’s
their membership requirements.
10:00 a.m. and 3:00 p.m. Copies of such business continuity and disaster
filing also will be available for recovery plans, as more fully described (B) Clearing Agency’s Statement on
inspection and copying at the principal below.5 Burden on Competition
offices of the Exchange. All comments
asabaliauskas on DSK5VPTVN1PROD with NOTICES
received will be posted without change; 12 17 CFR 200.30–3(a)(73). The proposed rule change will not
the Commission does not edit personal 1 15 U.S.C. 78s(b)(1). have any impact, or impose any burden,
identifying information from 2 17 CFR 240.19b–4. on competition.
3 15 U.S.C. 78s(b)(3)(A).
submissions. You should submit only
4 17 CFR 240.19b–4(f)(1).
information that you wish to make 5 Terms not otherwise defined herein have the
available publicly. All submissions meaning set forth in the DTC Rules, available at
6 The Commission notes that Exhibit 5 is attached
http://www.dtcc.com/legal/rules-and- to the filing, not to this Notice.
11 15 U.S.C. 78s(b)(1). procedures.aspx. 7 15 U.S.C. 78q–1(b)(3)(F).
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Document Created: 2018-02-21 10:33:16
Document Modified: 2018-02-21 10:33:16
| 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 30503 |
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