80 FR 39811 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Rule 4553 and Fees for Access to Alternative Trading System Volume Information Published on FINRA's Web Site
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 132 (July 10, 2015)
Federal Register Volume 80, Issue 132 (July 10, 2015)
| Page Range | 39811-39815 | |
| FR Document | 2015-16860 |
[Federal Register Volume 80, Number 132 (Friday, July 10, 2015)] [Notices] [Pages 39811-39815] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-16860] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75365; File No. SR-FINRA-2015-023] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Rule 4553 and Fees for Access to Alternative Trading System Volume Information Published on FINRA's Web Site July 6, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on June 29, 2015, Financial Industry Regulatory Authority, Inc. (``FINRA'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by FINRA. FINRA has designated the proposed rule change as ``establishing or changing a due, fee or other charge'' under Section 19(b)(3)(A)(ii) of the Act\3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon receipt of this filing by the Commission. 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. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change FINRA is proposing to remove Rule 4553 (Fees for ATS Data) from the FINRA rulebook. Below is the text of the proposed rule change. Proposed new language is in italics; proposed deletions are in brackets. * * * * * 4000. FINANCIAL AND OPERATIONAL RULES * * * * * 4500. BOOKS, RECORDS AND REPORTS * * * * * 4550. ATS Reporting * * * * * [4553. Fees for ATS Data] [(a) General] [Fees are charged for ATS Data as set forth in this Rule. Professionals and Vendors must pay the subscription fee to receive ATS Data in accordance with this Rule and execute appropriate agreements with FINRA.] [(b) Professionals] [(1) Professionals may subscribe for the most currently published ATS Data and up to five years of historical ATS Data in a downloadable, pipe delimited format for a twelve-month subscription fee of $12,000. Such fee is not refundable or transferable.] [(2) Payment of the Professional subscription fee described in this paragraph (b) provides the Professional with use of such ATS Data to generate Derived Data.] [(3) Professionals may distribute ATS Data or Derived Data to their employees, affiliates, or employees of affiliates but are prohibited from providing ATS Data or Derived Data to any third party.] [(c) Vendors] [(1) Vendors may subscribe for access to the most currently published ATS Data and up to five years of historical ATS Data in a downloadable, pipe delimited format for a twelve-month subscription fee of $18,000. Such fee is not refundable or transferable.] [(2) Payment of the Vendor subscription fee described in this paragraph (c) provides the Vendor with use of such ATS Data to generate Derived Data.] [(3) Vendors are prohibited from providing ATS Data to any third party unless a Professional subscription has been purchased [[Page 39812]] for each such third party in accordance with paragraph (b) above.] [(d) Non-Professionals] [(1) There shall be no charge paid by a Non-Professional for access to the most recently published four weeks of ATS Data; however, such ATS Data will not be available in a downloadable format.] [(2) A Non-Professional must agree to terms of use before accessing the ATS Data, including that he or she receives and uses the ATS Data solely for his or her personal, non-commercial use and will not otherwise distribute the ATS Data or Derived Data to other parties. The terms of use for Non-Professionals will be clearly posted on the FINRA.org Web site, and access to the non-fee liable ATS Data content will require a user to acknowledge the terms of use.] [(e) Definitions] [For purposes of this rule, the following terms have the meaning set forth:] [(1) ``ATS Data'' means Trading Information published by FINRA on its Web site.] [(2) ``Derived Data'' means data that is derived from ATS Data and that is not able to be (A) reverse engineered by a reasonably skilled user into ATS Data or (B) used as a surrogate for ATS Data.] [(3) ``Non-Professional'' means a natural person who uses the ATS Data solely for his or her personal, non-commercial use. A ``Non-Professional'' is not:] [(A) registered nor qualified in any capacity with the SEC, the Commodity Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association, nor an employee of the above and, with respect to any person identified in this subparagraph (A), uses ATS Data for other than personal, non-commercial use;] [(B) engaged as an ``investment adviser'' as that term is defined in Section 202(a)(11) of the Investment Advisers Act (whether or not registered or qualified under that Act), nor an employee of the above and, with respect to any person identified in this subparagraph (B), uses ATS Data for other than personal, non- commercial use;] [(C) employed by a bank, insurance company or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt, nor any other employee of a bank, insurance company or such other organization referenced above and, with respect to any person identified in this subparagraph (C), uses ATS Data for other than personal, non-commercial use; nor] [(D) engaged in, nor has the intention to engage in, any commercial redistribution of all or any portion of the ATS Data or Derived Data.] [(4) ``Professional'' means any non-natural person or any natural person that does not meet the definition of ``Non- Professional'' in subparagraph (3).] [(5) ``Trading Information'' has the same meaning as set forth in Rule 4552.] [(6) ``Vendor'' means a Professional who distributes ATS Data or Derived Data to any third party.] * * * * * II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA 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. FINRA 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 On January 17, 2014, the SEC approved a proposed rule change to (i) adopt Rule 4552 (Alternative Trading Systems--Trading Information for Securities Executed Within the Alternative Trading System) to require alternative trading systems (``ATSs'') \5\ to report to FINRA weekly volume information and number of trades regarding securities transactions within the ATS (``ATS Data'') and to publish the ATS Data on a delayed basis on FINRA's Web site; \6\ and (ii) amend FINRA Rules 6160, 6170, 6480, and 6720 to require each ATS to acquire and use a single, unique market participant identifier (``MPID'') when reporting information to FINRA (``MPID Requirement'').\7\ The implementation date for the reporting requirements under Rule 4552 was May 12, 2014, and FINRA began publishing the ATS Data for equity securities on its Web site on June 2, 2014.\8\ On May 29, 2014, the SEC approved Rule 4553, which established a fee schedule for access to the ATS Data.\9\ The proposed rule change deletes Rule 4553. --------------------------------------------------------------------------- \5\ Regulation ATS defines an ``alternative trading system'' as ``any organization, association, person, group of persons, or system: (1) That constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange within the meaning of [Exchange Act Rule 3b-16]; and (2) That does not: (i) Set rules governing the conduct of subscribers other than the conduct of such subscribers' trading on such organization, association, person, group of persons, or system; or (ii) Discipline subscribers other than by exclusion from trading.'' 17 CFR 242.300(a). Rule 4552 applies to any alternative trading system, as that term is defined in Regulation ATS, that has filed a Form ATS with the Commission. See Rule 4552(a). \6\ FINRA subsequently filed a proposed rule change to limit the reporting requirements in Rule 4552 to equity securities and exclude TRACE-Reportable Securities. See Securities Exchange Act Release No. 71911 (April 9, 2014), 79 FR 21316 (April 15, 2014) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2014-017). \7\ See Securities Exchange Act Release No. 71341 (January 17, 2014), 79 FR 4213 (January 24, 2014) (Order Approving File No. SR- FINRA-2013-042). The MPID Requirement was subsequently amended to permit the use of two MPIDs by a single ATS provided each MPID is used only to report to either the Trade Reporting and Compliance Engine (``TRACE'') or one or more of FINRA's equity reporting facilities. See Securities Exchange Act Release No. 71911 (April 9, 2014), 79 FR 21316 (April 15, 2014) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2014-017). \8\ The MPID Requirement was implemented on February 2, 2015. See Securities Exchange Act Release No. 73340 (October 10, 2014), 79 FR 62500 (October 17, 2014) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2014-042). \9\ See Securities Exchange Act Release No. 72280 (May 29, 2014), 79 FR 32351 (June 4, 2014) (Order Approving File No. SR- FINRA-2014-018) (``ATS Fee Approval Order''). --------------------------------------------------------------------------- Under Rule 4552, individual ATSs are required to submit weekly reports to FINRA regarding equity security volume information within the ATS, including share volume and number of trades for both NMS stocks and OTC equity securities.\10\ The first reports pursuant to Rule 4552 were due to FINRA by May 28, 2014, covering the week of May 12-16, 2014.\11\ After FINRA began receiving the self-reported data from ATSs, FINRA began publishing on its Web site, on a delayed basis, the reported information for each equity security for each ATS with appropriate disclosures that the published volume numbers are based on ATS-submitted reports and not on reports produced or validated by FINRA.\12\ FINRA currently makes available on its Web site the ATS Data through weekly reports listing aggregate volume and number of trades by security for each ATS within the designated time period. --------------------------------------------------------------------------- \10\ See Rule 4552(a), (d)(4). \11\ See Regulatory Notice 14-07 (February 2014). \12\ See Rule 4552(b). --------------------------------------------------------------------------- Rule 4553 establishes three categories of users of the ATS Data, each of which is entitled to different levels and use of data and is subject to a different fee structure: (i) Non-Professionals; (ii) Professionals; and (iii) Vendors.\13\ Under Rule 4553, the most recently published four weeks of ATS Data is accessible to Non- Professionals \14\ at no [[Page 39813]] cost on FINRA's Web site, and FINRA provides a basic web display listing all reporting ATSs and aggregate volume and number of trades for each symbol in which a trade was reported by the ATS during the designated time period.\15\ Non-Professionals may access, at no cost, the most recent four weeks of ATS Data in a viewable, but not downloadable, format. A Non-Professional must certify that he or she is a ``Non-Professional'' within the meaning of Rule 4553 and agree to certain terms of use of the ATS Data, including representations that he or she receives and uses the ATS Data solely for his or her personal, non-commercial use, and conditions regarding use of the data and prohibiting redistribution of the data. --------------------------------------------------------------------------- \13\ Any individual seeking access to the ATS Data on FINRA's Web site must confirm that he or she is either (i) a Non- Professional or (ii) a Professional (or an affiliate or employee thereof) that has a current Professional or Vendor subscription. \14\ A ``Non-Professional'' is generally a natural person who uses the ATS Data solely for his or her personal, non-commercial use and is not: (i) Registered or qualified in any capacity with the SEC, the Commodity Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association, nor an employee of the above; (ii) engaged as an ``investment adviser'' as that term is defined in Section 202(a)(11) of the Investment Advisers Act (whether or not registered or qualified under that Act), nor an employee of the above; (iii) employed by a bank, insurance company or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt, nor any other employee of a bank, insurance company or such other organization referenced above; or (iv) engaged in, or has the intention to engage in, any commercial redistribution of all or any portion of the ATS Data or Derived Data. See Rule 4552(e)(3); see also 15 U.S.C. 80b-2(a)(11). Rule 4553(e)(2) defines ``Derived Data'' as data that is derived from ATS Data and that is not able to be (A) reverse engineered by a reasonably skilled user into ATS Data or (B) used as a surrogate for ATS Data. Generally, non-commercial requests from regulators, academics, and ad hoc requests from media reporters are considered non-professional usage under this definition. \15\ See Rule 4553(d). FINRA also currently produces quarterly reports summarizing the ATS Data that are publicly available for no charge on FINRA's Web site. --------------------------------------------------------------------------- Under Rule 4553, Professionals are required to pay an annual, enterprise-wide subscription fee of $12,000 that is non-transferable and renewable annually to access the ATS Data.\16\ A Professional who has paid the subscription fee has access to the same ATS Data available to Non-Professionals. However, a Professional subscription allows a user access to the 27 most current weeks of published reports (Non- Professionals are limited to four weeks) as well as access to historical ATS Data in a downloadable format.\17\ The Professional subscription allows an unlimited number of users within the firm to access the ATS Data.\18\ Thus, regardless of the size of the entity in question, the subscription fee for the entity is $12,000 for a twelve- month subscription. Professionals are not permitted to redistribute ATS Data or Derived Data outside of the enterprise (e.g., to their customers); however, Professionals are permitted to distribute ATS Data and Derived Data within the enterprise (including the firm, any affiliates of the firm, and employees thereof). Professionals are required to agree to the terms of FINRA's ATS Data Subscriber Agreement, which establishes the terms and conditions of access to the ATS Data. --------------------------------------------------------------------------- \16\ See Rule 4553(b). A ``Professional'' is defined as ``any non-natural person or any natural person that does not meet the definition of `Non-Professional.' '' Rule 4553(e)(4). \17\ The downloadable reports provide the same data as the web- based reports but in pipe delimited format. \18\ If the Professional is a FINRA member, the member has access to the ATS Data so that all of the member's entitled users can access the ATS Data under the member's Central Registration Depository number. Professionals that are not FINRA members are provided with a single log-on that may be shared within the entity and its affiliates and employees, but may not be used outside of the entity, its affiliates, and their employees. --------------------------------------------------------------------------- Rule 4553 also includes a Vendor subscription fee of $18,000 per year.\19\ A Vendor subscription permits a Vendor to redistribute the ATS Data or Derived Data within and outside the enterprise; however, a Vendor may provide this data to a third party only if a yearly, non- transferable, enterprise-wide Professional subscription has been purchased for each such third party. Vendors must track specific users and their entitlements (and annual commitment term) and are subject to regular audits to ensure accurate and timely compliance with re- dissemination reporting and payment. Vendors are responsible for reporting entity usage as a result of their redistribution of the data. --------------------------------------------------------------------------- \19\ See Rule 4553(c). A ``Vendor'' is defined as ``a Professional who distributes ATS Data or Derived Data to any third party.'' Rule 4553(e)(6). --------------------------------------------------------------------------- FINRA established the fee rates for access to ATS Data by Professionals and Vendors to recover the costs associated with collecting, formatting, and disseminating the data.\20\ FINRA noted, when proposing the fee, that it did not have an exact estimate as to how many subscribers will ultimately pay to access ATS Data and stated that FINRA intended to reassess the fairness and reasonableness of the fee once it had experience with the actual usage and ultimate fees paid to access ATS Data.\21\ --------------------------------------------------------------------------- \20\ See ATS Fee Approval Order, supra note 9, 79 FR 32351, 32353. \21\ See Securities Exchange Act Release No. 71919 (April 9, 2014), 79 FR 21324, 21327 (April 15, 2014) (Notice of Filing File No. SR-FINRA-2014-018). --------------------------------------------------------------------------- After approximately one year of receiving and disseminating the ATS Data on FINRA's Web site, FINRA has reviewed the usage of the ATS Data and the costs incurred and is proposing to eliminate the fee for all potential users and disseminate the ATS Data on its Web site at no charge. FINRA has found that there are significantly fewer firms and data vendors accessing the ATS Data than anticipated, which limits the opportunities for broader dissemination and analysis of the data FINRA makes available. By making the ATS Data available at no cost, FINRA believes more data vendors and firms will access the ATS Data and provide useful statistics and analysis to the industry and to individual investors and the public. FINRA currently anticipates making publicly available on its Web site 27 weeks of online reports and up to five years of historical reports available in a downloadable format.\22\ --------------------------------------------------------------------------- \22\ There are no reports for time periods before the implementation of Rule 4552. --------------------------------------------------------------------------- As FINRA noted when it proposed collecting and disseminating the ATS Data, Rule 4552 was intended in part to increase transparency in the over-the-counter market. Although Rule 4552 has no doubt achieved this goal, particularly by providing individual investors with access to the ATS Data at no cost, FINRA believes that transparency may be even further enhanced by eliminating the fee for Professionals and Vendors so that individual investors and the public can benefit from more detailed and widely-available analysis of the ATS Data. Consequently, FINRA is proposing to eliminate the fee for Professionals and Vendors and make the ATS Data publicly available at no cost. FINRA has filed the proposed rule change for immediate effectiveness. The implementation date will be July 13, 2015. FINRA staff is currently working on changes to FINRA's Web site to enable all users to access the ATS Data and to remove functionality that currently limits access to the ATS Data to either Non-Professionals or those with paid subscriptions. FINRA anticipates that these changes will be made so that the ATS Data will be publicly available beginning July 13, 2015. Until that time, the ATS Data will continue to be available only to paid subscribers or, in more limited formats, to Non-Professionals consistent with Rule 4553.\23\ --------------------------------------------------------------------------- \23\ Because the subscriptions purchased pursuant to Rule 4553 are on an annual basis, some subscribers' annual subscriptions will lapse before July 13, 2015. Those subscribers that choose to renew their annual subscription for the amount required under Rule 4553 before July 13, 2015, will receive a pro rata refund as of July 13, 2015. Current subscribers that have an annual subscription that expires after July 13, 2015, will also receive a pro rata refund. Thus, for example, if a firm purchased an annual Professional subscription for $12,000 on August 13, 2014, the firm will receive a $1,000 refund for the period between July 13, 2015, and August 13, 2015. --------------------------------------------------------------------------- [[Page 39814]] 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,\24\ which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest and Section 15A(b)(5) of the Act,\25\ which requires, among other things, that FINRA rules provide for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system that FINRA operates or controls. --------------------------------------------------------------------------- \24\ 15 U.S.C. 78o-3(b)(6). \25\ 15 U.S.C. 78o-3(b)(5). --------------------------------------------------------------------------- FINRA believes that, by eliminating the fees imposed by Rule 4553 and making the ATS Data available to the public at no cost, more data vendors and firms will use the ATS Data to provide useful statistics and analysis to the industry, individual investors, and the public. This, in turn, will further improve transparency in the over-the- counter market by making the ATS Data, and analysis of the data, more widely available not only for Professionals and Vendors, but also for individual investors who can benefit from more detailed analysis of the ATS Data. B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. FINRA believes that eliminating the fee may, in fact, remove potential burdens by widening access to the ATS Data, particularly for smaller firms that may not have been able to pay the existing Professional or Vendor fees. Economic Impact Analysis As described above, FINRA is proposing to remove Rule 4553 to eliminate the fee for all potential users of ATS Data and disseminate the ATS Data on its Web site at no charge. Currently, FINRA makes this data available on its Web site and charges according to the three tiers described above. In the presence of this proposed rule change, the ATS Data will continue to be made available, and FINRA will seek no fees for its usage. FINRA anticipates that the demand for the ATS Data will increase in the absence of professional and vendor fees. FINRA believes that eliminating the fee for Professionals and Vendors to access ATS Data will extend the impact of transparency in the over-the-counter market and will not result in any burden on FINRA members or the public. Yet, investors may benefit from an externality if the wider availability of the ATS Data leads to an increased production of relevant analysis by professionals.\26\ Also, FINRA believes--based on member firms' and vendors' feedback--that there is a wide range of market participants that will start using the ATS Data and benefit from it when it is made available free of charge. --------------------------------------------------------------------------- \26\ For example, one study showed that brokers' order routing behavior, in search for best execution for their clients, changed after the increased transparency due to Rule 11Ac1-5, which requires market centers to publish standardized execution quality metrics. See Ekkehart Boehmer, Robert Jennings & Li Wei, Public Disclosure and Private Decisions: Equity Market Execution Quality and Order Routing, 20 (2) Rev. Fin. Stud. 315 (March 2007). --------------------------------------------------------------------------- FINRA would incur no additional costs as a result of the proposed rule change, as FINRA already aggregates and publishes the ATS Data on a weekly basis; however, FINRA will forego the revenue that partially covers the cost of maintaining the ATS Data, although both the cost and revenue have been non-material since the data dissemination started in June 2014. FINRA's experience in the past year suggests that the marginal costs to provide this information to the public is de minimis, with no material impact to its budget or members. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Although written comments were not solicited regarding the elimination of Rule 4553, FINRA has received one comment letter since the adoption of Rule 4553 that addresses the current fee structure for access to ATS Data.\27\ The Securities Industry and Financial Markets Association (``SIFMA'') submitted a written comment letter in response to Regulatory Notice 14-48 \28\ that, among other things, noted that SIFMA ``continues to oppose FINRA charging a fee to access the [ATS] data and the fact that only a limited scope of information is available for free on the FINRA Web site.'' \29\ A copy of Regulatory Notice 14- 48 is attached as Exhibit 2a.\30\ A copy of SIFMA's comment letter received in response to the Regulatory Notice is attached as Exhibit 2b.\31\ FINRA believes the elimination of Rule 4553 would address the concern raised by SIFMA in its comment letter. --------------------------------------------------------------------------- \27\ FINRA notes that, although written comments were not solicited regarding the current proposed rule change to eliminate Rule 4553, comments addressing the adoption of a fee for access to ATS Data were received in response to the rule filings proposing Rules 4552 and 4553, and these commenters generally opposed the fee. See ATS Fee Approval Order, supra note 9, 79 FR 32351, 32352; see also Securities Exchange Act Release No. 71341 (January 17, 2014), 79 FR 4213 (January 24, 2014) (Order Approving File No. SR-FINRA- 2013-042). \28\ In Regulatory Notice 14-48, FINRA requested comment on a proposal to expand the ATS transparency initiative to publish the remaining equity volume executed over the counter, including trading on non-ATS electronic trading systems and internalized trades. See Regulatory Notice 14-48 (November 2014). \29\ Letter from Theodore R. Lazo, Managing Director and Associate General Counsel, SIFMA to Marcia E. Asquith, Corporate Secretary, FINRA, dated February 20, 2015. \30\ The Commission notes that the Regulatory Circular is not attached to this notice, but is available on FINRA's Web site. \31\ The Commission notes that SIFMA's comment letter is not attached to this notice, but is available on FINRA's Web site, and on the Commission's Web site. --------------------------------------------------------------------------- III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \32\ and paragraph (f)(2) of Rule 19b-4 thereunder.\33\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. --------------------------------------------------------------------------- \32\ 15 U.S.C. 78s(b)(3)(A). \33\ 17 CFR 240.19b-4(f)(x). [sic] --------------------------------------------------------------------------- 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 rule-comments@sec.gov. Please include File Number SR-FINRA-2015-023 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange [[Page 39815]] Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-FINRA-2015-023. 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 FINRA. 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-FINRA-2015-023, and should be submitted on or before July 31, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\34\ Brent J. Fields, Secretary. --------------------------------------------------------------------------- \34\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2015-16860 Filed 7-9-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 132 / Friday, July 10, 2015 / Notices 39811
lack of current and accurate information It appears to the Securities and other charge’’ under Section
concerning the securities of Exchange Commission that there is a 19(b)(3)(A)(ii) of the Act3 and Rule 19b–
International Hi-Tech Industries Inc. lack of current and accurate information 4(f)(2) thereunder,4 which renders the
(CIK No. 921887) (‘‘IHITF’’ 1), a concerning the securities of Silverado proposal effective upon receipt of this
Canadian corporation with its principal Gold Mines Ltd. (CIK No. 731727) filing by the Commission. The
place of business in Vancouver, British (‘‘SLGLF’’), a defaulted British Commission is publishing this notice to
Columbia, Canada, with stock quoted on Columbia corporation with its principal solicit comments on the proposed rule
OTC Link (previously, ‘‘Pink Sheets’’) place of business in Surrey, British change from interested persons.
operated by OTC Markets Group Inc. Columbia, Canada, with stock quoted on
(‘‘OTC Link’’) because it has not filed I. Self-Regulatory Organization’s
OTC Link, because it has not filed any
any periodic reports since the period Statement of the Terms of the Substance
periodic reports since the period ended
ended December 31, 2005. On June 28, of the Proposed Rule Change
August 31, 2011. On September 13,
2013, the Division of Corporation 2013, Corporation Finance sent a FINRA is proposing to remove Rule
Finance (‘‘Corporation Finance’’) sent a delinquency letter to SLGLF requesting 4553 (Fees for ATS Data) from the
delinquency letter to IHITF requesting compliance with its periodic reporting FINRA rulebook.
compliance with its periodic reporting obligations at the address shown in its Below is the text of the proposed rule
obligations at the address shown in its then-most recent filing with the change. Proposed new language is in
then-most recent filing with the Commission which was delivered. italics; proposed deletions are in
Commission, but IHITF did not receive The Commission is of the opinion that brackets.
the delinquency letter due to its failure the public interest and the protection of * * * * *
to maintain a valid address on file with investors require a suspension of trading
the Commission as required by in the securities of the above-listed 4000. FINANCIAL AND OPERATIONAL
Commission rules (Rule 301 of companies. Therefore, it is ordered, RULES
Regulation S–T, 17 CFR 232.301 and pursuant to Section 12(k) of the * * * * *
Section 5.4 of the EDGAR Filer Manual). Securities Exchange Act of 1934, that 4500. BOOKS, RECORDS AND REPORTS
It appears to the Securities and trading in the securities of the above-
Exchange Commission that there is a * * * * *
listed companies is suspended for the
lack of current and accurate information period from 9:30 a.m. EDT on July 8, 4550. ATS Reporting
concerning the securities of Mark One 2015, through 11:59 p.m. EDT on July * * * * *
Global Industries, Inc. (CIK No. 21, 2015.
1000791) (‘‘MKGLF’’), a British [4553. Fees for ATS Data]
Columbia corporation with its principal By the Commission.
[(a) General]
place of business in Olathe, Kansas, Jill M. Peterson,
[Fees are charged for ATS Data as set forth
with stock quoted on OTC Link, because Assistant Secretary.
in this Rule. Professionals and Vendors must
it has not filed any periodic reports [FR Doc. 2015–17015 Filed 7–8–15; 11:15 am] pay the subscription fee to receive ATS Data
since the period ended December 31, BILLING CODE 8011–01–P in accordance with this Rule and execute
2009. On April 29, 2013, Corporation appropriate agreements with FINRA.]
Finance sent a delinquency letter to [(b) Professionals]
MKGLF requesting compliance with its SECURITIES AND EXCHANGE
periodic reporting obligations at the COMMISSION [(1) Professionals may subscribe for the
most currently published ATS Data and up
address shown in its then-most recent [Release No. 34–75365; File No. SR–FINRA– to five years of historical ATS Data in a
filing with the Commission, but MKGLF 2015–023] downloadable, pipe delimited format for a
did not receive the delinquency letter twelve-month subscription fee of $12,000.
due to its failure to maintain a valid Self-Regulatory Organizations; Such fee is not refundable or transferable.]
address on file with the Commission as Financial Industry Regulatory [(2) Payment of the Professional
required by Commission rules (Rule 301 Authority, Inc.; Notice of Filing and subscription fee described in this paragraph
of Regulation S–T, 17 CFR 232.301 and Immediate Effectiveness of a Proposed (b) provides the Professional with use of such
Section 5.4 of the EDGAR Filer Manual). Rule Change Relating to Rule 4553 and ATS Data to generate Derived Data.]
It appears to the Securities and [(3) Professionals may distribute ATS Data
Fees for Access to Alternative Trading or Derived Data to their employees, affiliates,
Exchange Commission that there is a System Volume Information Published or employees of affiliates but are prohibited
lack of current and accurate information on FINRA’s Web Site from providing ATS Data or Derived Data to
concerning the securities of Nortel any third party.]
Networks Corporation (CIK No. 72911) July 6, 2015.
(‘‘NRTLQ’’), a Canadian corporation Pursuant to Section 19(b)(1) of the [(c) Vendors]
with its principal place of business in Securities Exchange Act of 1934 [(1) Vendors may subscribe for access to
Mississauga, Ontario, Canada, with (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 the most currently published ATS Data and
stock quoted on OTC Link, because it notice is hereby given that on June 29, up to five years of historical ATS Data in a
has not filed any periodic reports since 2015, Financial Industry Regulatory downloadable, pipe delimited format for a
Authority, Inc. (‘‘FINRA’’) filed with the twelve-month subscription fee of $18,000.
the period ended June 30, 2012. On
Such fee is not refundable or transferable.]
October 17, 2014, Corporation Finance Securities and Exchange Commission
[(2) Payment of the Vendor subscription fee
sent a delinquency letter to NRTLQ (‘‘SEC’’ or ‘‘Commission’’) the proposed described in this paragraph (c) provides the
mstockstill on DSK4VPTVN1PROD with NOTICES
requesting compliance with its periodic rule change as described in Items I, II, Vendor with use of such ATS Data to
reporting obligations at the address and III below, which Items have been generate Derived Data.]
shown in its then-most recent filing prepared by FINRA. FINRA has [(3) Vendors are prohibited from providing
with the Commission which was designated the proposed rule change as ATS Data to any third party unless a
delivered. ‘‘establishing or changing a due, fee or Professional subscription has been purchased
1 The short form of each issuer’s name is also its 1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78s(b)(3)(A)(ii).
ticker symbol. 2 17 CFR 240.19b–4. 4 17 CFR 240.19b–4(f)(2).
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![39812 Federal Register / Vol. 80, No. 132 / Friday, July 10, 2015 / Notices
for each such third party in accordance with [(6) ‘‘Vendor’’ means a Professional who date for the reporting requirements
paragraph (b) above.] distributes ATS Data or Derived Data to any under Rule 4552 was May 12, 2014, and
third party.] FINRA began publishing the ATS Data
[(d) Non-Professionals]
* * * * * for equity securities on its Web site on
[(1) There shall be no charge paid by a
Non-Professional for access to the most II. Self-Regulatory Organization’s June 2, 2014.8 On May 29, 2014, the SEC
recently published four weeks of ATS Data; Statement of the Purpose of, and approved Rule 4553, which established
however, such ATS Data will not be available Statutory Basis for, the Proposed Rule a fee schedule for access to the ATS
in a downloadable format.] Change Data.9 The proposed rule change deletes
[(2) A Non-Professional must agree to terms Rule 4553.
of use before accessing the ATS Data, In its filing with the Commission, Under Rule 4552, individual ATSs are
including that he or she receives and uses the FINRA included statements concerning required to submit weekly reports to
ATS Data solely for his or her personal, non- the purpose of and basis for the FINRA regarding equity security volume
commercial use and will not otherwise proposed rule change and discussed any information within the ATS, including
distribute the ATS Data or Derived Data to comments it received on the proposed share volume and number of trades for
other parties. The terms of use for Non- rule change. The text of these statements
Professionals will be clearly posted on the
both NMS stocks and OTC equity
may be examined at the places specified securities.10 The first reports pursuant
FINRA.org Web site, and access to the non-
in Item IV below. FINRA has prepared to Rule 4552 were due to FINRA by May
fee liable ATS Data content will require a
user to acknowledge the terms of use.] summaries, set forth in sections A, B, 28, 2014, covering the week of May 12–
and C below, of the most significant 16, 2014.11 After FINRA began receiving
[(e) Definitions] aspects of such statements. the self-reported data from ATSs,
[For purposes of this rule, the following FINRA began publishing on its Web site,
terms have the meaning set forth:]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and on a delayed basis, the reported
[(1) ‘‘ATS Data’’ means Trading
Statutory Basis for, the Proposed Rule information for each equity security for
Information published by FINRA on its Web
site.] Change each ATS with appropriate disclosures
[(2) ‘‘Derived Data’’ means data that is that the published volume numbers are
1. Purpose based on ATS-submitted reports and not
derived from ATS Data and that is not able
to be (A) reverse engineered by a reasonably On January 17, 2014, the SEC on reports produced or validated by
skilled user into ATS Data or (B) used as a approved a proposed rule change to (i) FINRA.12 FINRA currently makes
surrogate for ATS Data.] adopt Rule 4552 (Alternative Trading available on its Web site the ATS Data
[(3) ‘‘Non-Professional’’ means a natural Systems—Trading Information for through weekly reports listing aggregate
person who uses the ATS Data solely for his Securities Executed Within the volume and number of trades by
or her personal, non-commercial use. A security for each ATS within the
Alternative Trading System) to require
‘‘Non-Professional’’ is not:]
[(A) registered nor qualified in any
alternative trading systems (‘‘ATSs’’) 5 to designated time period.
capacity with the SEC, the Commodity report to FINRA weekly volume Rule 4553 establishes three categories
Futures Trading Commission, any state information and number of trades of users of the ATS Data, each of which
securities agency, any securities exchange or regarding securities transactions within is entitled to different levels and use of
association, or any commodities or futures the ATS (‘‘ATS Data’’) and to publish data and is subject to a different fee
contract market or association, nor an the ATS Data on a delayed basis on structure: (i) Non-Professionals; (ii)
employee of the above and, with respect to FINRA’s Web site; 6 and (ii) amend Professionals; and (iii) Vendors.13
any person identified in this subparagraph FINRA Rules 6160, 6170, 6480, and Under Rule 4553, the most recently
(A), uses ATS Data for other than personal, 6720 to require each ATS to acquire and published four weeks of ATS Data is
non-commercial use;] accessible to Non-Professionals 14 at no
use a single, unique market participant
[(B) engaged as an ‘‘investment adviser’’ as
that term is defined in Section 202(a)(11) of
identifier (‘‘MPID’’) when reporting
the Investment Advisers Act (whether or not information to FINRA (‘‘MPID The MPID Requirement was subsequently amended
Requirement’’).7 The implementation to permit the use of two MPIDs by a single ATS
registered or qualified under that Act), nor an provided each MPID is used only to report to either
employee of the above and, with respect to the Trade Reporting and Compliance Engine
5 Regulation ATS defines an ‘‘alternative trading
any person identified in this subparagraph (‘‘TRACE’’) or one or more of FINRA’s equity
(B), uses ATS Data for other than personal, system’’ as ‘‘any organization, association, person, reporting facilities. See Securities Exchange Act
non-commercial use;] group of persons, or system: (1) That constitutes, Release No. 71911 (April 9, 2014), 79 FR 21316
maintains, or provides a market place or facilities (April 15, 2014) (Notice of Filing and Immediate
[(C) employed by a bank, insurance for bringing together purchasers and sellers of
company or other organization exempt from Effectiveness of File No. SR–FINRA–2014–017).
securities or for otherwise performing with respect 8 The MPID Requirement was implemented on
registration under federal or state securities to securities the functions commonly performed by February 2, 2015. See Securities Exchange Act
laws to perform functions that would require a stock exchange within the meaning of [Exchange Release No. 73340 (October 10, 2014), 79 FR 62500
registration or qualification if such functions Act Rule 3b–16]; and (2) That does not: (i) Set rules (October 17, 2014) (Notice of Filing and Immediate
were performed for an organization not so governing the conduct of subscribers other than the
Effectiveness of File No. SR–FINRA–2014–042).
exempt, nor any other employee of a bank, conduct of such subscribers’ trading on such 9 See Securities Exchange Act Release No. 72280
organization, association, person, group of persons,
insurance company or such other (May 29, 2014), 79 FR 32351 (June 4, 2014) (Order
or system; or (ii) Discipline subscribers other than
organization referenced above and, with by exclusion from trading.’’ 17 CFR 242.300(a). Rule Approving File No. SR–FINRA–2014–018) (‘‘ATS
respect to any person identified in this 4552 applies to any alternative trading system, as Fee Approval Order’’).
10 See Rule 4552(a), (d)(4).
subparagraph (C), uses ATS Data for other that term is defined in Regulation ATS, that has
11 See Regulatory Notice 14–07 (February 2014).
than personal, non-commercial use; nor] filed a Form ATS with the Commission. See Rule
4552(a). 12 See Rule 4552(b).
[(D) engaged in, nor has the intention to
6 FINRA subsequently filed a proposed rule 13 Any individual seeking access to the ATS Data
engage in, any commercial redistribution of
mstockstill on DSK4VPTVN1PROD with NOTICES
all or any portion of the ATS Data or Derived change to limit the reporting requirements in Rule on FINRA’s Web site must confirm that he or she
Data.] 4552 to equity securities and exclude TRACE- is either (i) a Non-Professional or (ii) a Professional
Reportable Securities. See Securities Exchange Act (or an affiliate or employee thereof) that has a
[(4) ‘‘Professional’’ means any non-natural Release No. 71911 (April 9, 2014), 79 FR 21316 current Professional or Vendor subscription.
person or any natural person that does not (April 15, 2014) (Notice of Filing and Immediate 14 A ‘‘Non-Professional’’ is generally a natural
meet the definition of ‘‘Non-Professional’’ in Effectiveness of File No. SR–FINRA–2014–017). person who uses the ATS Data solely for his or her
subparagraph (3).] 7 See Securities Exchange Act Release No. 71341 personal, non-commercial use and is not: (i)
[(5) ‘‘Trading Information’’ has the same (January 17, 2014), 79 FR 4213 (January 24, 2014) Registered or qualified in any capacity with the
meaning as set forth in Rule 4552.] (Order Approving File No. SR–FINRA–2013–042). SEC, the Commodity Futures Trading Commission,
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![39814 Federal Register / Vol. 80, No. 132 / Friday, July 10, 2015 / Notices
2. Statutory Basis FINRA believes that eliminating the that, among other things, noted that
FINRA believes that the proposed rule fee for Professionals and Vendors to SIFMA ‘‘continues to oppose FINRA
change is consistent with the provisions access ATS Data will extend the impact charging a fee to access the [ATS] data
of Section 15A(b)(6) of the Act,24 which of transparency in the over-the-counter and the fact that only a limited scope of
requires, among other things, that market and will not result in any burden information is available for free on the
FINRA rules must be designed to on FINRA members or the public. Yet, FINRA Web site.’’ 29 A copy of
prevent fraudulent and manipulative investors may benefit from an Regulatory Notice 14–48 is attached as
acts and practices, to promote just and externality if the wider availability of Exhibit 2a.30 A copy of SIFMA’s
equitable principles of trade, and, in the ATS Data leads to an increased comment letter received in response to
general, to protect investors and the production of relevant analysis by the Regulatory Notice is attached as
public interest and Section 15A(b)(5) of professionals.26 Also, FINRA believes— Exhibit 2b.31 FINRA believes the
the Act,25 which requires, among other based on member firms’ and vendors’ elimination of Rule 4553 would address
things, that FINRA rules provide for the feedback—that there is a wide range of the concern raised by SIFMA in its
equitable allocation of reasonable dues, market participants that will start using comment letter.
fees and other charges among members the ATS Data and benefit from it when
III. Date of Effectiveness of the
and issuers and other persons using any it is made available free of charge.
Proposed Rule Change and Timing for
facility or system that FINRA operates FINRA would incur no additional Commission Action
or controls. costs as a result of the proposed rule
FINRA believes that, by eliminating change, as FINRA already aggregates The foregoing rule change has become
the fees imposed by Rule 4553 and and publishes the ATS Data on a weekly effective pursuant to Section 19(b)(3)(A)
making the ATS Data available to the basis; however, FINRA will forego the of the Act 32 and paragraph (f)(2) of Rule
public at no cost, more data vendors and revenue that partially covers the cost of 19b–4 thereunder.33 At any time within
firms will use the ATS Data to provide maintaining the ATS Data, although 60 days of the filing of the proposed rule
useful statistics and analysis to the both the cost and revenue have been change, the Commission summarily may
industry, individual investors, and the non-material since the data temporarily suspend such rule change if
public. This, in turn, will further dissemination started in June 2014. it appears to the Commission that such
improve transparency in the over-the- FINRA’s experience in the past year action is necessary or appropriate in the
counter market by making the ATS Data, suggests that the marginal costs to public interest, for the protection of
and analysis of the data, more widely provide this information to the public is investors, or otherwise in furtherance of
available not only for Professionals and de minimis, with no material impact to the purposes of the Act. If the
Vendors, but also for individual its budget or members. Commission takes such action, the
investors who can benefit from more Commission shall institute proceedings
C. Self-Regulatory Organization’s to determine whether the proposed rule
detailed analysis of the ATS Data.
Statement on Comments on the should be approved or disapproved.
B. Self-Regulatory Organization’s Proposed Rule Change Received From
Statement on Burden on Competition Members, Participants, or Others IV. Solicitation of Comments
FINRA does not believe that the Although written comments were not Interested persons are invited to
proposed rule change will result in any solicited regarding the elimination of submit written data, views, and
burden on competition that is not Rule 4553, FINRA has received one arguments concerning the foregoing,
necessary or appropriate in furtherance comment letter since the adoption of including whether the proposed rule
of the purposes of the Act. FINRA Rule 4553 that addresses the current fee change is consistent with the Act.
believes that eliminating the fee may, in structure for access to ATS Data.27 The Comments may be submitted by any of
fact, remove potential burdens by Securities Industry and Financial the following methods:
widening access to the ATS Data, Markets Association (‘‘SIFMA’’) Electronic Comments
particularly for smaller firms that may submitted a written comment letter in
not have been able to pay the existing response to Regulatory Notice 14–48 28 • Use the Commission’s Internet
Professional or Vendor fees. comment form (http://www.sec.gov/
26 For example, one study showed that brokers’ rules/sro.shtml); or
Economic Impact Analysis • Send an email to rule-comments@
order routing behavior, in search for best execution
As described above, FINRA is for their clients, changed after the increased sec.gov. Please include File Number SR–
proposing to remove Rule 4553 to transparency due to Rule 11Ac1–5, which requires FINRA–2015–023 on the subject line.
market centers to publish standardized execution
eliminate the fee for all potential users quality metrics. See Ekkehart Boehmer, Robert
of ATS Data and disseminate the ATS Paper Comments
Jennings & Li Wei, Public Disclosure and Private
Data on its Web site at no charge. Decisions: Equity Market Execution Quality and • Send paper comments in triplicate
Currently, FINRA makes this data Order Routing, 20 (2) Rev. Fin. Stud. 315 (March to Secretary, Securities and Exchange
2007).
available on its Web site and charges 27 FINRA notes that, although written comments
according to the three tiers described internalized trades. See Regulatory Notice 14–48
were not solicited regarding the current proposed
(November 2014).
above. In the presence of this proposed rule change to eliminate Rule 4553, comments 29 Letter from Theodore R. Lazo, Managing
rule change, the ATS Data will continue addressing the adoption of a fee for access to ATS
Data were received in response to the rule filings Director and Associate General Counsel, SIFMA to
to be made available, and FINRA will proposing Rules 4552 and 4553, and these Marcia E. Asquith, Corporate Secretary, FINRA,
seek no fees for its usage. FINRA commenters generally opposed the fee. See ATS Fee dated February 20, 2015.
mstockstill on DSK4VPTVN1PROD with NOTICES
30 The Commission notes that the Regulatory
anticipates that the demand for the ATS Approval Order, supra note 9, 79 FR 32351, 32352;
see also Securities Exchange Act Release No. 71341 Circular is not attached to this notice, but is
Data will increase in the absence of available on FINRA’s Web site.
(January 17, 2014), 79 FR 4213 (January 24, 2014)
professional and vendor fees. (Order Approving File No. SR–FINRA–2013–042). 31 The Commission notes that SIFMA’s comment
28 In Regulatory Notice 14–48, FINRA requested letter is not attached to this notice, but is available
refund for the period between July 13, 2015, and comment on a proposal to expand the ATS on FINRA’s Web site, and on the Commission’s
August 13, 2015. transparency initiative to publish the remaining Web site.
24 15 U.S.C. 78o–3(b)(6). 32 15 U.S.C. 78s(b)(3)(A).
equity volume executed over the counter, including
25 15 U.S.C. 78o–3(b)(5). trading on non-ATS electronic trading systems and 33 17 CFR 240.19b–4(f)(x). [sic]
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![Federal Register / Vol. 80, No. 132 / Friday, July 10, 2015 / Notices 39815
Commission, 100 F Street NE., ‘‘Act’’),1 and Rule 19b–4 thereunder,2 reference (i.e., ‘‘Section 1B’’). No
Washington, DC 20549–1090. notice is hereby given that on June 24, substantive changes are being made by
All submissions should refer to File 2015, C2 Options Exchange, the proposed rule change.
Number SR–FINRA–2015–023. This file Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
2. Statutory Basis
number should be included on the filed with the Securities and Exchange
subject line if email is used. To help the Commission (the ‘‘Commission’’) the The Exchange believes the proposed
Commission process and review your proposed rule change as described in rule change is consistent with the
comments more efficiently, please use Items I, II, and III below, which Items Securities Exchange Act of 1934 (the
only one method. The Commission will have been prepared by the Exchange. ‘‘Act’’) and the rules and regulations
post all comments on the Commission’s The Commission is publishing this thereunder applicable to the Exchange
Internet Web site (http://www.sec.gov/ notice to solicit comments on the and, in particular, the requirements of
rules/sro.shtml). Copies of the proposed rule change from interested Section 6(b) of the Act.4 Specifically,
submission, all subsequent persons. the Exchange believes the proposed rule
amendments, all written statements change is consistent with the Section
I. Self-Regulatory Organization’s
with respect to the proposed rule 6(b)(5) 5 requirements that the rules of
Statement of the Terms of Substance of
change that are filed with the an exchange be designed to prevent
the Proposed Rule Change
Commission, and all written fraudulent and manipulative acts and
The Exchange proposes to correct an practices, to promote just and equitable
communications relating to the
inaccurate rule reference in its Fees principles of trade, to foster cooperation
proposed rule change between the Schedule. The text of the proposed rule
Commission and any person, other than and coordination with persons engaged
change is available on the Exchange’s in regulating, clearing, settling,
those that may be withheld from the Web site (http://www.c2exchange.com/
public in accordance with the processing information with respect to,
Legal/), at the Exchange’s Office of the and facilitating transactions in
provisions of 5 U.S.C. 552, will be Secretary, and at the Commission’s
available for Web site viewing and securities, to remove impediments to
Public Reference Room. and perfect the mechanism of a free and
printing in the Commission’s Public
Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s open market and a national market
Washington, DC 20549 on official Statement of the Purpose of, and system, and, in general, to protect
business days between the hours of Statutory Basis for, the Proposed Rule investors and the public interest.
10:00 a.m. and 3:00 p.m. Copies of such Change The Exchange believes correcting an
filing also will be available for inaccurate rule reference will help to
In its filing with the Commission, the avoid confusion, thereby removing
inspection and copying at the principal Exchange included statements
offices of FINRA. All comments impediments to and perfecting the
concerning the purpose of and basis for mechanism of a free and open market
received will be posted without change; the proposed rule change and discussed
the Commission does not edit personal and a national market system.
any comments it received on the Additionally, the Exchange notes that
identifying information from proposed rule change. The text of these
submissions. You should submit only no substantive changes are being made
statements may be examined at the by the proposed rule change.
information that you wish to places specified in Item IV below. The
makeavailable publicly. All submissions Exchange has prepared summaries, set B. Self-Regulatory Organization’s
should refer to File Number SR–FINRA– forth in sections A, B, and C below, of Statement on Burden on Competition
2015–023, and should be submitted on the most significant aspects of such C2 does not believe that the proposed
or before July 31, 2015. statements. rule change will impose any burden on
For the Commission, by the Division of A. Self-Regulatory Organization’s intramarket or intermarket competition
Trading and Markets, pursuant to delegated that is not necessary or appropriate in
Statement of the Purpose of, and the
authority.34 furtherance of the purposes of the Act.
Statutory Basis for, the Proposed Rule
Brent J. Fields, The proposed change to correct an
Change
Secretary. inaccurate rule reference and alleviate
[FR Doc. 2015–16860 Filed 7–9–15; 8:45 am] 1. Purpose confusion is not intended for
BILLING CODE 8011–01–P The Exchange proposes to make an competitive reasons and only applies to
administrative change to correct an C2. The Exchange also notes that no
incorrect rule reference in its Fees rights or obligations of Permit Holders
SECURITIES AND EXCHANGE Schedule. Specifically, the Exchange are affected by the change.
COMMISSION notes it recently streamlined part of its
C. Self-Regulatory Organization’s
Fees Schedule by consolidating certain
Statement on Comments on the
[Release No. 34–75367; File No. SR–C2– sections in order to make the Fees
Proposed Rule Change Received From
2015–017] Schedule easier to read.3 In doing so,
Members, Participants, or Others
the Exchange had to renumber Section
Self-Regulatory Organizations; C2 1C to current Section 1B. The Exchange The Exchange neither solicited nor
Options Exchange, Incorporated; notes however, that it inadvertently did received comments on the proposed
Notice of Filing and Immediate not make a corresponding change to the rule change.
Effectiveness of a Proposed Rule text in current Section 1B. Specifically, III. Date of Effectiveness of the
mstockstill on DSK4VPTVN1PROD with NOTICES
Change To Correct an Inaccurate Rule Section 1B still references Section 1C in
Reference Proposed Rule Change and Timing for
two places. The Exchange seeks to fix Commission Action
July 6, 2015. this error and insert the correct
The foregoing rule change has become
Pursuant to Section 19(b)(1) of the 1 15 effective pursuant to Section 19(b)(3)(A)
U.S.C. 78s(b)(1).
Securities Exchange Act of 1934 (the 2 17
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 74733 4 15 U.S.C. 78f(b).
34 17 CFR 200.30–3(a)(12). (April 15, 2015), 80 FR 76 [sic] (April 21, 2015). 5 15 U.S.C. 78f(b)(5).
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Document Created: 2018-02-23 09:15:20
Document Modified: 2018-02-23 09:15:20
| 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 39811 |
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