80 FR 34763 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Order Approving a Proposed Rule Change To Amend Exchange Rule 515
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 116 (June 17, 2015)
Federal Register Volume 80, Issue 116 (June 17, 2015)
| Page Range | 34763-34765 | |
| FR Document | 2015-14826 |
[Federal Register Volume 80, Number 116 (Wednesday, June 17, 2015)] [Notices] [Pages 34763-34765] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-14826] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75152; File No. SR-MIAX-2015-19) Self-Regulatory Organizations; Miami International Securities Exchange LLC; Order Approving a Proposed Rule Change To Amend Exchange Rule 515 June 11, 2015. I. Introduction On April 13, 2015, Miami International Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend Exchange Rule 515 regarding the functionality of Customer Cross Order and Qualified Contingent Cross Order types. The proposed rule change was published for comment in the Federal Register on April 30, 2015.\3\ The Commission did not receive any comments on the proposal. This order approves the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 74809 (April 24, 2015), 80 FR 24297 (SR-MIAX-2015-19) (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposal The Exchange proposes amendments to MIAX Rule 515(h) to provide that trading interest that is subject to an ongoing timer or auction will maintain priority over a new incoming Customer Cross Order or Qualified Contingent Cross Order. MIAX Rule 515(h)(1) provides that Customer Cross Orders \4\ are automatically executed upon entry provided that the execution (i) is at or between the best bid and offer on the Exchange; (ii) is not at the same price as a Priority Customer Order on the Exchange's Book; and (iii) will not trade at a price inferior to the national best bid or offer (``NBBO''). Customer Cross Orders are automatically canceled if they cannot be executed.\5\ Customer Cross Orders may only be entered in the minimum trading increments applicable to the options class under Rule 510.\6\ --------------------------------------------------------------------------- \4\ See MIAX Rules 515(h)(1) and 516(i). The Commission notes that the Customer Cross Order type is currently not available for use on the Exchange. See MIAX Options Regulatory Circular, RC-2015- 05. \5\ See Notice, supra note 3, at 24297. \6\ See MIAX Rule 515(h)(1). --------------------------------------------------------------------------- MIAX Rule 515(h)(2) provides that Qualified Contingent Cross Orders \7\ are automatically executed upon entry provided that the execution (i) is not at the same price as a Priority Customer Order on the Exchange's Book; and (ii) is at or between the NBBO. Qualified Contingent Cross Orders are automatically canceled if they cannot be executed.\8\ Qualified Contingent Cross Orders may only be entered in the minimum trading increments applicable to the options class under MIAX Rule 510.\9\ --------------------------------------------------------------------------- \7\ See MIAX Rules 515(h)(2) and 516(j). See also MIAX Rule 516, Interpretations and Policies .01. The Qualified Contingent Cross Order is currently not deployed; however, the Exchange represents that it intends to make the order type available pending Commission approval of the proposed rule change. See Notice, supra note 3, at 24297. \8\ See Notice, supra note 3, at 24297. \9\ See MIAX Rule 515(h)(2). --------------------------------------------------------------------------- Although neither the Customer Cross Order nor the Qualified Contingent Cross Order may be executed at a price inferior to the NBBO, the Exchange notes that there are situations at the Exchange during which trading interest may exist in the Exchange's System that could be executable at prices up to the NBBO but is not automatically executed because the Exchange is either attempting to obtain additional price improvement for the order or additional liquidity to trade against the order on the Exchange. The Exchange states that it employs a variety of timers and auctions to provide market participants with an opportunity to obtain additional price improvement for their order or to access additional liquidity to trade against the order on the Exchange. Specifically, during the liquidity refresh pause or managed interest process [[Page 34764]] pursuant to MIAX Rule 515(c),\10\ or a route timer pursuant to MIAX Rule 529,\11\ the Exchange has trading interest that exists that may be executable up to the NBBO but is displayed at a price one minimum price increment away. In addition, during the price improvement mechanisms such as the PRIME Auction or PRIME Solicitation Auction pursuant to MIAX Rule 515A,\12\ the Exchange has trading interest that exists that may be executable up to the NBBO but is not displayed.\13\ --------------------------------------------------------------------------- \10\ The ``liquidity refresh pause'' is a process during which the System will pause the market for a time period not to exceed one second to allow additional orders or quotes refreshing the liquidity at the MIAX best bid or offer (``MBBO'') to be received when at the time of receipt or reevaluation of the initiating order by the System: (A) either the initiating order is a limit order whose limit price crosses the NBBO or the initiating order is a market order, and the limit order or market order could only be partially executed; (B) a Market Maker quote was all or part of the MBBO when the MBBO is alone at the NBBO; and (C) and the Market Maker quote was exhausted. See MIAX Rule 515(c)(2). The ``managed interest process'' is a process for non-routable orders during which, if the limit price locks or crosses the current opposite side NBBO, the System will display the order one MPV away from the current opposite side NBBO, and book the order at a price that will lock the current opposite side NBBO. Should the NBBO price change to an inferior price level, the order's Book price will continuously re-price to lock the new NBBO and the managed order's displayed price will continuously re-price one MPV away from the new NBBO until (i) the order has traded to and including its limit price, (ii) the order has traded to and including its price protection limit at which any remaining contracts are cancelled, (iii) the order is fully executed or (iv) the order is cancelled. See MIAX Rule 515(c)(1)(ii). \11\ See MIAX Rule 529. The ``route timer'' is a process for those initiating Public Customer orders that are routable, but do not meet the additional criteria for Immediate Routing, during which the System will implement a route timer not to exceed one second, in order to allow Market Makers and other participants an opportunity to interact with the initiating order. \12\ The ``PRIME Auction'' is a process by which a Member may electronically submit for execution (``auction'') an order it represents as agent (``agency order'') against principal interest, and/or an agency order against solicited interest. See MIAX Rule 515A(a). The ``PRIME Solicitation Mechanism'' is a process by which a Member that represents agency orders of a size of 500 contracts or more may electronically execute against solicited orders provided it submits both the agency order and solicited orders for electronic execution into the PRIME Solicitation Mechanism pursuant to Rule 515A. See MIAX Rule 515A(b). \13\ See Notice, supra note 3, at 24298. --------------------------------------------------------------------------- According to the Exchange, the execution of a Customer Cross Order or Qualified Contingent Cross Order that arrives during a timer or auction at a potentially better price than the interest subject to the timer or auction has the potential to cause confusion and perceived disruption to market participants that are subject to the pre-existing timers or auctions that may see executions occurring at better prices than their trading interest. In addition, the Exchange believes that the timers and auctions provide a valuable service to market participants and that the use of these mechanisms, which provide market participants with opportunities to obtain additional price improvement for their orders or to access additional liquidity to trade against the orders, should be promoted on the Exchange. The Exchange proposes to modify its Rules in order to maintain the priority of trading interest subject to timers and auctions that are initiated prior to the arrival of these specified order types. The proposed changes also would codify existing functionality for Customer Cross Orders that is not currently detailed in the Exchange's Rules.\14\ --------------------------------------------------------------------------- \14\ See id. at 24297. --------------------------------------------------------------------------- Thus, the Exchange proposes to amend Rule 515 to provide that Customer Cross Orders and Qualified Contingent Cross Orders will be rejected if there is a timer or price improvement auction in progress when either of these orders is received. Specifically, the Exchange proposes to amend Rule 515(h)(1) to provide that if trading interest exists on the MIAX Book that is subject to the liquidity refresh pause or managed interest process pursuant to Rule 515(c), or a route timer pursuant to Rule 529, when the Exchange receives a Customer Cross Order, the System will reject the Customer Cross Order. The Exchange also proposes to amend Rule 515(h)(1) to provide that if trading interest exists that is subject to a PRIME Auction or PRIME Solicitation Auction pursuant to Rule 515A when the Exchange receives a Customer Cross Order, the System will reject the Customer Cross Order. In addition, the Exchange proposes to amend Rule 515(h)(2) to provide that if trading interest exists on the MIAX Book that is subject to the liquidity refresh pause or managed interest process pursuant to Rule 515(c), or a route timer pursuant to Rule 529, when the Exchange receives a Qualified Contingent Cross Order, the System will reject the Qualified Contingent Cross Order. The Exchange also proposes to amend Rule 515(h)(2) to provide that if trading interest exists that is subject to a PRIME Auction or PRIME Solicitation Auction pursuant to Rule 515A when the Exchange receives a Qualified Contingent Cross Order, the System will reject the Qualified Contingent Cross Order. The Exchange proposes no changes to the Customer Cross Order and the Qualified Contingent Cross Order order types, and represents that both order types will continue to be subject to the same requirements as before.\15\ --------------------------------------------------------------------------- \15\ See id. at 24298. --------------------------------------------------------------------------- III. Discussion and Commission's Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of Section 6 of the Act \16\ and the rules and regulations thereunder applicable to a national securities exchange.\17\ Specifically, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,\18\ which requires, among other things, that the Exchange's rules be designed to promote just and equitable principles of trade, 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. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f. \17\ Additionally, in approving the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \18\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission believes that it is reasonable for the Exchange's rules to provide that trading interest subject to ongoing timers and auctions will maintain priority over a new incoming Customer Cross Order or Qualified Contingent Cross Order. The proposed rule change provides that a Customer Cross Order or Qualified Contingent Cross Order will be rejected by the System if there is a timer or price improvement auction in progress. In that instance, market participants may choose to route their orders to other exchanges or resubmit their Customer Cross Order or Qualified Contingent Cross Order to the Exchange. The proposed rule change may eliminate potential confusion by market participants as to the functionality of the Customer Cross Order and Qualified Contingent Cross Order types. The proposed rule change also provides clarity regarding the functionality of Customer Cross Orders; the Commission notes that the proposed changes would codify existing functionality for Customer Cross Orders that is not currently detailed in the Exchange's Rules.\19\ Finally, the Commission emphasizes that the proposed rule change does not change any of the requirements for submitting a Customer Cross Order or Qualified Contingent Cross Order set forth in Rule 515.\20\ --------------------------------------------------------------------------- \19\ See Notice, supra note 3, at 24297. \20\ See id. at 24298. --------------------------------------------------------------------------- [[Page 34765]] IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\21\ that the proposed rule change (File No. SR-MIAX-2015-19) be, and hereby is, approved. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-14826 Filed 6-16-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices 34763
C. Self-Regulatory Organization’s available for Web site viewing and ongoing timer or auction will maintain
Statement on Comments on the printing in the Commission’s Public priority over a new incoming Customer
Proposed Rule Change Received From Reference Room, 100 F Street NE., Cross Order or Qualified Contingent
Members, Participants, or Others Washington, DC 20549 on official Cross Order. MIAX Rule 515(h)(1)
No written comments were either business days between the hours of provides that Customer Cross Orders 4
solicited or received. 10:00 a.m. and 3:00 p.m. Copies of such are automatically executed upon entry
filing also will be available for provided that the execution (i) is at or
III. Date of Effectiveness of the inspection and copying at the principal between the best bid and offer on the
Proposed Rule Change and Timing for offices of the Exchange. All comments Exchange; (ii) is not at the same price as
Commission Action received will be posted without change; a Priority Customer Order on the
The foregoing change has become the Commission does not edit personal Exchange’s Book; and (iii) will not trade
effective pursuant to Section 19(b)(3)(A) identifying information from at a price inferior to the national best
of the Act 17 and paragraph (f) of Rule submissions. You should submit only bid or offer (‘‘NBBO’’). Customer Cross
19b–4 18 thereunder. At any time within information that you wish to make Orders are automatically canceled if
60 days of the filing of the proposed rule available publicly. All submissions they cannot be executed.5 Customer
change, the Commission summarily may should refer to File Number SR–BX– Cross Orders may only be entered in the
temporarily suspend such rule change if 2015–033, and should be submitted on minimum trading increments applicable
it appears to the Commission that such or before July 8, 2015. to the options class under Rule 510.6
action is necessary or appropriate in the MIAX Rule 515(h)(2) provides that
For the Commission, by the Division of
public interest, for the protection of Trading and Markets, pursuant to delegated Qualified Contingent Cross Orders 7 are
investors, or otherwise in furtherance of authority.19 automatically executed upon entry
the purposes of the Act. Robert W. Errett, provided that the execution (i) is not at
the same price as a Priority Customer
IV. Solicitation of Comments Deputy Secretary.
Order on the Exchange’s Book; and (ii)
Interested persons are invited to [FR Doc. 2015–14819 Filed 6–16–15; 8:45 am]
is at or between the NBBO. Qualified
submit written data, views, and BILLING CODE 8011–01–P
Contingent Cross Orders are
arguments concerning the foregoing, automatically canceled if they cannot be
including whether the proposed rule executed.8 Qualified Contingent Cross
change is consistent with the Act. SECURITIES AND EXCHANGE
Orders may only be entered in the
Comments may be submitted by any of COMMISSION
minimum trading increments applicable
the following methods: [Release No. 34–75152; File No. SR–MIAX– to the options class under MIAX Rule
Electronic Comments 2015–19) 510.9
Although neither the Customer Cross
• Use the Commission’s Internet Self-Regulatory Organizations; Miami Order nor the Qualified Contingent
comment form (http://www.sec.gov/ International Securities Exchange LLC; Cross Order may be executed at a price
rules/sro.shtml); or Order Approving a Proposed Rule inferior to the NBBO, the Exchange
• Send an email to rule-comments@ Change To Amend Exchange Rule 515 notes that there are situations at the
sec.gov. Please include File Number SR– Exchange during which trading interest
BX–2015–033 on the subject line. June 11, 2015.
may exist in the Exchange’s System that
Paper Comments I. Introduction could be executable at prices up to the
NBBO but is not automatically executed
• Send paper comments in triplicate On April 13, 2015, Miami
International Securities Exchange LLC because the Exchange is either
to Secretary, Securities and Exchange
(‘‘MIAX’’ or ‘‘Exchange’’) filed with the attempting to obtain additional price
Commission, 100 F Street NE.,
Securities and Exchange Commission improvement for the order or additional
Washington, DC 20549–1090.
(‘‘Commission’’), pursuant to Section liquidity to trade against the order on
All submissions should refer to File the Exchange. The Exchange states that
Number SR–BX–2015–033. This file 19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4 it employs a variety of timers and
number should be included on the auctions to provide market participants
subject line if email is used. To help the thereunder,2 a proposed rule change to
amend Exchange Rule 515 regarding the with an opportunity to obtain additional
Commission process and review your price improvement for their order or to
comments more efficiently, please use functionality of Customer Cross Order
and Qualified Contingent Cross Order access additional liquidity to trade
only one method. The Commission will against the order on the Exchange.
post all comments on the Commission’s types. The proposed rule change was
published for comment in the Federal Specifically, during the liquidity refresh
Internet Web site (http://www.sec.gov/ pause or managed interest process
rules/sro.shtml). Copies of the Register on April 30, 2015.3 The
submission, all subsequent Commission did not receive any
4 See MIAX Rules 515(h)(1) and 516(i). The
amendments, all written statements comments on the proposal. This order Commission notes that the Customer Cross Order
with respect to the proposed rule approves the proposed rule change. type is currently not available for use on the
change that are filed with the Exchange. See MIAX Options Regulatory Circular,
II. Description of the Proposal RC–2015–05.
Commission, and all written 5 See Notice, supra note 3, at 24297.
The Exchange proposes amendments
asabaliauskas on DSK5VPTVN1PROD with NOTICES
communications relating to the 6 See MIAX Rule 515(h)(1).
proposed rule change between the to MIAX Rule 515(h) to provide that
7 See MIAX Rules 515(h)(2) and 516(j). See also
Commission and any person, other than trading interest that is subject to an MIAX Rule 516, Interpretations and Policies .01.
those that may be withheld from the The Qualified Contingent Cross Order is currently
19 17 CFR 200.30–3(a)(12). not deployed; however, the Exchange represents
public in accordance with the 1 15 U.S.C. 78s(b)(1). that it intends to make the order type available
provisions of 5 U.S.C. 552, will be 2 17 CFR 240.19b–4. pending Commission approval of the proposed rule
3 See Securities Exchange Act Release No. 74809 change. See Notice, supra note 3, at 24297.
17 15 U.S.C. 78s(b)(3)(A). 8 See Notice, supra note 3, at 24297.
(April 24, 2015), 80 FR 24297 (SR–MIAX–2015–19)
18 17 CFR 240.19b–4(f). (‘‘Notice’’). 9 See MIAX Rule 515(h)(2).
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![Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices 34765
IV. Conclusion any transaction in a security, or to contrary to the Act and inconsistent
It is therefore ordered, pursuant to report such transaction, ‘‘unless such with the public interest and the
Section 19(b)(2) of the Act,21 that the exchange (1) is registered as a national protection of investors.
proposed rule change (File No. SR– securities exchange . . . or (2) is
II. Background
MIAX–2015–19) be, and hereby is, exempted from such registration upon
approved. application by the exchange because, in A. Procedural History
the opinion of the Commission, by
For the Commission, by the Division of On July 7, 2014, AMSE filed with the
reason of the limited volume of
Trading and Markets, pursuant to delegated Commission an application seeking a
authority.22
transactions effected on such exchange,
limited volume exemption, under
it is not practicable and not necessary or
Robert W. Errett, Section 5 of the Act, from the
appropriate in the public interest or for
Deputy Secretary. requirement to register as a national
the protection of investors to require
[FR Doc. 2015–14826 Filed 6–16–15; 8:45 am] securities exchange under Section 6 of
such registration.’’ 2
BILLING CODE 8011–01–P AMSE has chosen the latter option, the Act.6 Notice of AMSE’s exemption
seeking from the Commission an application was published for comment
exemption from registration as a in the Federal Register on July 29,
SECURITIES AND EXCHANGE national securities exchange.3 After a 2014.7
COMMISSION careful review of the exemption On October 23, 2014, the Commission
[Release No. 34–75157; File No. 10–214] application, however, we have issued an order instituting proceedings
determined to deny it. to determine whether to grant or deny
Automated Matching Systems Although our review leads us to AMSE’s exemption application.8 In that
Exchange, LLC; Order Denying an identify a number of potential issues order, the Commission explained that it
Application for a Limited Volume that might warrant this result (including ‘‘is concerned that AMSE’s exemption
Exemption From Registration as a whether AMSE would even qualify as application does not meet a key
National Securities Exchange Under an exchange),4 we find that the threshold requirement for being granted
Section 5 of the Securities Exchange application is fatally flawed because an exemption from exchange
Act of 1934 AMSE is proposing to possess the broad registration—namely, that the applicant
regulatory powers and responsibilities actually be an ‘exchange’ as defined
June 11, 2015. under Section 3(a)(1) of the Exchange
that are reserved for self-regulatory
I. Introduction organizations (‘‘SROs’’), while Act and Rule 3b–16 thereunder.’’ 9 The
simultaneously seeking exemption from Commission specifically identified the
Automated Matching Systems
registration as an exchange.5 Under the fact that ‘‘it does not appear that any
Exchange, LLC (‘‘AMSE’’) believes that
Act, for an exchange to possess the AMSE system would operate as an
its proposed business model would
powers and responsibilities of an SRO, exchange by bringing together
qualify it as an exchange. As defined in
it must register as a national securities purchasers and sellers of securities.’’ 10
Section 3(a)(1) of the Securities
Exchange Act of 1934 (‘‘Exchange Act’’ exchange. An exchange that is exempt
6 In the interest of completeness, we note the
or ‘‘Act’’), an ‘‘exchange’’ is ‘‘any from such registration does not meet the
events that preceded AMSE’s filing of its July 7th
organization, association, or group of definition of an SRO under the Act. application. From December 2013 through March
persons, whether incorporated or Moreover, the Commission has never 2014, staff had numerous communications with
unincorporated, which constitutes, allowed an exempt exchange to possess AMSE about its (then-draft) application, including
maintains, or provides a market place or the broad range of regulatory powers multiple email exchanges and at least one phone
call; during these exchanges, the staff explained
facilities for bringing together and responsibilities of an SRO. We that it was concerned that AMSE’s proposed
purchasers and sellers of securities or believe that doing so here would be business model was not an ‘‘exchange.’’ In March
for otherwise performing with respect to 2014, AMSE formally submitted a Form 1
securities the functions commonly 2 15 U.S.C. 78e. application. On April 24, 2014, the staff returned
3 We note that, in a December 2014 public notice, AMSE’s application because, based on its review,
performed by a stock exchange as that the staff believed that AMSE had erred in
the Commission expressly stated that it understood
term is generally understood, and AMSE to be seeking an exemption under Section submitting an application for an exchange and
includes the market place and the 5—not registration—and that AMSE did not instead should have submitted an application for a
market facilities maintained by such respond otherwise. See Securities Exchange Act national securities association, a classification that
Release No. 73911 (December 22, 2014), 79 FR the staff believed better fit with AMSE’s proposed
exchange.’’ 1 Under Section 5 of the Act, business model. On May 6, 2014, the staff had a
78507, note 1 (December 30, 2014) (‘‘Amendment
it is unlawful for an exchange to effect Notice’’) (‘‘The Commission notes that AMSE’s phone call with AMSE in which the staff again
application only seeks a limited volume exemption explained its view that AMSE’s proposed business
21 15 U.S.C. 78s(b)(2). under Section 5 of the Exchange Act from model was not an exchange. On June 16, 2014,
22 17 CFR 200.30–3(a)(12). registration as a national securities exchange under AMSE brought suit against the Commission in the
1 15 U.S.C. 78c(a)(1). Rule 3b–16 under the Act Section 6 of the Exchange Act. AMSE’s application U.S. District Court for the District of South Dakota
does not seek to register as a national securities seeking certain injunctive and declaratory relief in
further provides that an organization, association,
exchange.’’). We therefore deem any claim to the connection with its application. See AMSE v. SEC,
or group of persons shall be considered to
contrary waived. Civ. 14–4095 (D.S.D.). On June 24, 2014, the
constitute, maintain, or provide ‘a market place or
4 See infra Section III.A. Commission staff and AMSE reached an agreement
facilities for bringing together purchasers and
pursuant to which AMSE would submit a new
sellers of securities or for otherwise performing 5 SROs are privately-funded entities, entrusted
Form 1 application that would include certain
with respect to securities the functions commonly with quasi-governmental authority, which generally
additional information needed to complete the
asabaliauskas on DSK5VPTVN1PROD with NOTICES
performed by a stock exchange,’ as those terms are adopt rules to govern their members and enforce
application and the staff would thereafter proceed
used in Section 3(a)(1) of the Act, (15 U.S.C. these rules as well as the federal securities laws. See
to process the revised application for Commission
78c(a)(1)), if such organization, association, or generally Free Enterprise Fund v. Public Co.
consideration.
group of persons: (1) Brings together the orders for Accounting Oversight Bd., 561 U.S. 477, 484 (2010) 7 See Securities Exchange Act Release No. 72661
securities of multiple buyers and sellers; and (2) (explaining that ‘‘private self-regulatory
Uses established, non-discretionary methods organizations in the securities industry—such as (July 23, 2014), 79 FR 44070.
8 See Securities Exchange Act Release No. 73419,
(whether by providing a trading facility or by the New York Stock Exchange—. . . investigate and
setting rules) under which such orders interact with discipline their own members subject to 79 FR 64421 (October 29, 2014) (‘‘Order Instituting
each other, and the buyers and sellers entering such Commission oversight’’). The quasi-governmental Proceedings’’).
9 Id. at 64422.
orders agree to the terms of a trade. 17 CFR 240.3b– authority afforded to SROs includes prosecutorial,
16(a). adjudicatory, and rulemaking authority. 10 Id.
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Document Created: 2015-12-15 14:22:42
Document Modified: 2015-12-15 14:22:42
| 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 34763 |
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