80 FR 60419 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Rule 2.13, Fidelity Bonds
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 193 (October 6, 2015)
Federal Register Volume 80, Issue 193 (October 6, 2015)
| Page Range | 60419-60421 | |
| FR Document | 2015-25327 |
[Federal Register Volume 80, Number 193 (Tuesday, October 6, 2015)] [Notices] [Pages 60419-60421] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-25327] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76054; File No. SR-BATS-2015-78] Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Rule 2.13, Fidelity Bonds September 30, 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 September 24, 2015, BATS Exchange, Inc. (the ``Exchange'' or ``BZX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ See 15 U.S.C. 78s(b)(1). \2\ See 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to delete Rule 2.13, Fidelity Bonds, in order to conform to the rules of EDGA Exchange, Inc. (``EDGA'') and EDGX Exchange, Inc. (``EDGX''). The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange 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 In early 2014, the Exchange and its affiliate, BATS Y-Exchange, Inc. (``BYX''), received approval to effect a merger (the ``Merger'') of the Exchange's parent company, BATS Global Markets, Inc., with Direct Edge Holdings LLC, the indirect parent of EDGX and EDGA (together with BZX, BYX and EDGX, the ``BGM Affiliated Exchanges'').\5\ In the context of the Merger, the BGM Affiliated Exchanges are working to align its [sic] rules, retaining only intended differences between the BGM Affiliated Exchanges. Thus, the proposal set forth below is intended to delete Rule 2.13, Fidelity Bonds, in order to conform to the rules of EDGA and EDGX in order to provide a consistent rule set across each of the BGM Affiliated Exchanges.\6\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 71375 (January 23, 2014), 79 FR 4771 (January 29, 2014) (SR-BATS-2013-059; SR-BYX-2013- 039). \6\ The Exchange notes that BYX intends to file a proposal to delete its identical Rule 2.13, Fidelity Bonds. --------------------------------------------------------------------------- In sum, Exchange Rule 2.13(a) states that each Member \7\ required to join the Securities Investor Protection Corporation (``SIPC'') who has employees and who is a member in good standing of another self- regulatory organization shall follow the applicable fidelity bond rule of the self-regulatory organization to which it is designated by the Commission for financial responsibility pursuant to Section 17 of the Act and SEC Rule 17d-1 thereunder (i.e., its Designated Examining Authority or ``DEA''). Subparagraph (b) to Rule 2.13 simply incorporates by reference NASD Rule 3020 (now FINRA Rule 4360) in to Exchange Rule 2.13. Subparagraph (c) of Rule 2.13 states that references to: (i) An ``Association member'' shall be construed as references to a ``Member''; and (ii) Article I, paragraph (q) of the By-Laws shall be construed as references to Exchange Rule 1.5(q). Lastly, subparagraph (d) to Rule 2.13 states that pursuant to Exchange Rule 1.6, any Member subject to paragraph (c) of NASD Rule 3020 (now FINRA Rule 4360), through the application of paragraph (b) of Rule 2.13, may apply to the Exchange for an exemption from such requirements. The exemption may be granted upon a showing of good cause, including a substantial change in [[Page 60420]] the circumstances or nature of the Member's business that results in a lower net capital requirement. The Exchange may issue an exemption subject to any condition or limitation upon a Member's bonding coverage that is deemed necessary to protect the public and serve the purposes of Rule 2.13. --------------------------------------------------------------------------- \7\ A Member is defined as ``any registered broker or dealer that has been admitted to membership in the Exchange.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- The Exchange does not, nor does it currently intend to, act in the capacity of a DEA. Therefore, Rule 2.13 is obsolete as it does not apply to any of the Exchange's Members.\8\ The Exchange believes that eliminating Rule 2.13 would avoid unnecessary confusion with respect to the Exchange's rules because it does not have a direct nexus to the trading on the Exchange or the relationship between the Exchange and its Members. Deleting Rule 2.13 would not ease any of the requirements on its Members that are required to join SIPC as the Financial Industry Regulatory Authority (``FINRA'') and the New York Stock Exchange, Inc. (``NYSE'') serve as a DEA for those Members and include rules with similar requirements as current Exchange Rule 2.13.\9\ In addition, the Exchange notes that EDGA and EDGX do not contain a similar rule. As a result, eliminating Rule 2.13 would also provide for a consistent rule set across each of the BGM Affiliated Exchanges. --------------------------------------------------------------------------- \8\ The Exchange will submit a rule filing to the Commission to adopt requirements similar or identical to current Rule 2.13 should it become a DEA for any of its Members in the future. \9\ See FINRA Rule 4360 and NYSE Rule 4360. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\10\ Specifically, the proposed change is consistent with Section 6(b)(5) of the Act,\11\ because it is 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. The proposed rule change is designed to provide a consistent rule set across each of the BGM Affiliated Exchanges. As mentioned above, the proposed rule changes, combined with the planned filing for BYX, would provide for a consistent set of rules across each of the BGM Affiliated Exchanges. Consistent rules, in turn, will simplify the regulatory requirements for Members of the Exchange that are also participants on EDGA, EDGX and/or BYX as well as result in greater uniformity, less burdensome and more efficient regulatory compliance and understanding of Exchange Rules. As such, the proposed rule change would foster cooperation and coordination with persons engaged in facilitating transactions in securities and would remove impediments to and perfect the mechanism of a free and open market and a national market system. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In addition, the proposed rule change would eliminate unnecessary confusion with respect to the Exchange's rules by removing a rule that has never had a direct nexus to the trading on the Exchange or the relationship between the Exchange and its Members. The Exchange believes that Rule 2.13 is obsolete as the Exchange does not, nor does it currently intend to, act in the capacity of a DEA. Deleting Rule 2.13 would not ease any of the requirements on its Members that are required to join SIPC as FINRA and the NYSE serve as a DEA for those Members and include rules containing similar requirements as current Exchange Rule 2.13.\12\ The Exchange believes that eliminating these rules will reduce any investor confusion regarding a rule the Exchange has never applied, nor intends to apply. Further, eliminating unnecessary and obsolete rules removes impediments to the perfection of the mechanisms for a free and open market system consistent with the requirements of Section 6(b)(5) of the Act.\13\ --------------------------------------------------------------------------- \12\ See FINRA Rule 4360 and NYSE Rule 4360. \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange 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. The Exchange notes that deleting Rule 2.13 will align Exchange rules with those of the BGM Affiliated Exchanges. The Exchange has never utilized this rule, nor does the Exchange intend to utilize it in the future. Therefore, the Exchange does not believe that eliminating Rule 2.13 will impose any burden on competition. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received from Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has designated this rule filing as non-controversial under Section 19(b)(3)(A) of the Act \14\ and paragraph (f)(6) of Rule 19b-4 thereunder.\15\ The proposed rule change effects a change that (A) does not significantly affect the protection of investors or the public interest; (B) does not impose any significant burden on competition; and (C) by its terms, does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest; provided that the self-regulatory organization has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission may summarily temporarily suspend such rule change if it appears to the Commission that such action is: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BATS-2015-78 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BATS-2015-78. This file number should be included on the [[Page 60421]] 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BATS-2015-78 and should be submitted on or before October 27, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ See 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-25327 Filed 10-5-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 193 / Tuesday, October 6, 2015 / Notices 60419
Comments may be submitted by any of SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
the following methods: COMMISSION Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Electronic Comments [Release No. 34–76054; File No. SR–BATS–
Change
2015–78]
• Use the Commission’s Internet 1. Purpose
comment form (http://www.sec.gov/ Self-Regulatory Organizations; BATS
In early 2014, the Exchange and its
rules/sro.shtml); or Exchange, Inc.; Notice of Filing and
affiliate, BATS Y-Exchange, Inc.
• Send an email to rule- Immediate Effectiveness of Proposed
(‘‘BYX’’), received approval to effect a
comments@sec.gov. Please include File Rule Change To Delete Rule 2.13,
merger (the ‘‘Merger’’) of the Exchange’s
Number SR–FINRA–2015–033 on the Fidelity Bonds
parent company, BATS Global Markets,
subject line. September 30, 2015. Inc., with Direct Edge Holdings LLC, the
Paper Comments Pursuant to Section 19(b)(1) of the indirect parent of EDGX and EDGA
Securities Exchange Act of 1934 (together with BZX, BYX and EDGX, the
• Send paper comments in triplicate (‘‘Act’’)1, and Rule 19b–4 thereunder,2 ‘‘BGM Affiliated Exchanges’’).5 In the
to Robert W. Errett, Deputy Secretary, notice is hereby given that on context of the Merger, the BGM
Securities and Exchange Commission, September 24, 2015, BATS Exchange, Affiliated Exchanges are working to
100 F Street NE., Washington, DC Inc. (the ‘‘Exchange’’ or ‘‘BZX’’) filed align its [sic] rules, retaining only
20549–1090. with the Securities and Exchange intended differences between the BGM
Commission (‘‘Commission’’) the Affiliated Exchanges. Thus, the proposal
All submissions should refer to File set forth below is intended to delete
proposed rule change as described in
Number SR–FINRA–2015–033. This file Rule 2.13, Fidelity Bonds, in order to
Items I and II below, which Items have
number should be included on the conform to the rules of EDGA and EDGX
been prepared by the Exchange. The
subject line if email is used. To help the in order to provide a consistent rule set
Exchange has designated this proposal
Commission process and review your across each of the BGM Affiliated
as a ‘‘non-controversial’’ proposed rule
comments more efficiently, please use Exchanges.6
change pursuant to Section 19(b)(3)(A)
only one method. The Commission will In sum, Exchange Rule 2.13(a) states
of the Act 3 and Rule 19b–4(f)(6)(iii)
post all comments on the Commission’s that each Member 7 required to join the
thereunder,4 which renders it effective
Internet Web site (http://www.sec.gov/ Securities Investor Protection
upon filing with the Commission. The
rules/sro.shtml). Copies of the Corporation (‘‘SIPC’’) who has
Commission is publishing this notice to
submission, all subsequent employees and who is a member in
solicit comments on the proposed rule
amendments, all written statements good standing of another self-regulatory
change from interested persons.
with respect to the proposed rule organization shall follow the applicable
change that are filed with the I. Self-Regulatory Organization’s fidelity bond rule of the self-regulatory
Commission, and all written Statement of the Terms of Substance of organization to which it is designated by
communications relating to the the Proposed Rule Change the Commission for financial
proposed rule change between the The Exchange is proposing to delete responsibility pursuant to Section 17 of
Commission and any person, other than Rule 2.13, Fidelity Bonds, in order to the Act and SEC Rule 17d-1 thereunder
those that may be withheld from the conform to the rules of EDGA Exchange, (i.e., its Designated Examining
public in accordance with the Inc. (‘‘EDGA’’) and EDGX Exchange, Inc. Authority or ‘‘DEA’’). Subparagraph (b)
provisions of 5 U.S.C. 552, will be (‘‘EDGX’’). to Rule 2.13 simply incorporates by
available for Web site viewing and The text of the proposed rule change reference NASD Rule 3020 (now FINRA
printing in the Commission’s Public is available at the Exchange’s Web site Rule 4360) in to Exchange Rule 2.13.
Reference Room, 100 F Street NE., at www.batstrading.com, at the Subparagraph (c) of Rule 2.13 states that
Washington, DC 20549, on official principal office of the Exchange, and at references to: (i) An ‘‘Association
business days between the hours of the Commission’s Public Reference member’’ shall be construed as
10:00 a.m. and 3:00 p.m. Copies of such Room. references to a ‘‘Member’’; and (ii)
filing also will be available for Article I, paragraph (q) of the By-Laws
inspection and copying at the principal II. Self-Regulatory Organization’s
shall be construed as references to
office of FINRA. All comments received Statement of the Purpose of, and
Exchange Rule 1.5(q). Lastly,
will be posted without change; the Statutory Basis for, the Proposed Rule
subparagraph (d) to Rule 2.13 states that
Commission does not edit personal Change
pursuant to Exchange Rule 1.6, any
identifying information from In its filing with the Commission, the Member subject to paragraph (c) of
submissions. You should submit only Exchange included statements NASD Rule 3020 (now FINRA Rule
information that you wish to make concerning the purpose of and basis for 4360), through the application of
available publicly. All submissions the proposed rule change and discussed paragraph (b) of Rule 2.13, may apply to
should refer to File Number SR–FINRA– any comments it received on the the Exchange for an exemption from
2015–033 and should be submitted on proposed rule change. The text of these such requirements. The exemption may
or before October 27, 2015. statements may be examined at the be granted upon a showing of good
For the Commission, by the Division of places specified in Item IV below. The cause, including a substantial change in
Trading and Markets, pursuant to delegated Exchange has prepared summaries, set
authority.19 forth in sections A., B., and C. below, of 5 See Securities Exchange Act Release No. 71375
tkelley on DSK3SPTVN1PROD with NOTICES
Robert W. Errett, the most significant aspects of such (January 23, 2014), 79 FR 4771 (January 29, 2014)
(SR–BATS–2013–059; SR–BYX–2013–039).
Deputy Secretary. statements. 6 The Exchange notes that BYX intends to file a
[FR Doc. 2015–25329 Filed 10–5–15; 8:45 am] proposal to delete its identical Rule 2.13, Fidelity
1 See 15 U.S.C. 78s(b)(1). Bonds.
BILLING CODE 8011–01–P 2 See 17 CFR 240.19b–4. 7 A Member is defined as ‘‘any registered broker
3 15 U.S.C. 78s(b)(3)(A).
or dealer that has been admitted to membership in
19 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(6)(iii). the Exchange.’’ See Exchange Rule 1.5(n).
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![Federal Register / Vol. 80, No. 193 / Tuesday, October 6, 2015 / Notices 60421
subject line if email is used. To help the September 22, 2015, Financial Industry A. Self-Regulatory Organization’s
Commission process and review your Regulatory Authority, Inc. (‘‘FINRA’’) Statement of the Purpose of, and
comments more efficiently, please use filed with the Securities and Exchange Statutory Basis for, the Proposed Rule
only one method. The Commission will Commission (‘‘SEC’’ or ‘‘Commission’’) Change
post all comments on the Commission’s the proposed rule change as described
Internet Web site (http://www.sec.gov/ 1. Purpose
in Items I, II, and III below, which Items
rules/sro.shtml). have been prepared by FINRA. FINRA Background
Copies of the submission, all has designated the proposed rule change With limited exceptions, FINRA trade
subsequent amendments, all written reporting rules require that members
as constituting a ‘‘non-controversial’’
statements with respect to the proposed report OTC transactions in equity
rule change under paragraph (f)(6) of
rule change that are filed with the securities by submitting a ‘‘tape’’ report
Commission, and all written Rule 19b–4 under the Act,3 which
renders the proposal effective upon (the transaction is reported for public
communications relating to the dissemination purposes) to FINRA.5 In
proposed rule change between the receipt of this filing by the Commission.
The Commission is publishing this some instances, members may be
Commission and any person, other than required (or may choose) to also submit
those that may be withheld from the notice to solicit comments on the
proposed rule change from interested one or more ‘‘non-tape’’ reports (the
public in accordance with the transaction is not reported for
provisions of 5 U.S.C. 552, will be persons.
publication) in connection with the
available for Web site viewing and
I. Self-Regulatory Organization’s transaction. For example, members
printing in the Commission’s Public
Statement of the Terms of the Substance executing OTC transactions as riskless
Reference Room, 100 F Street NE.,
of the Proposed Rule Change principal 6 or agent on behalf of other
Washington, DC 20549, on official
members are required to submit non-
business days between the hours of FINRA is proposing to amend FINRA tape report(s) to identify other FINRA
10:00 a.m. and 3:00 p.m. Copies of the rules governing the reporting of over- members that are parties to the trade.7
filing also will be available for the-counter (‘‘OTC’’) transactions in Non-tape reports can be (1) ‘‘non-tape,
inspection and copying at the principal
equity securities to the FINRA non-clearing’’ (the transaction is not
office of the Exchange. All comments
Facilities 4 to allow the submission of reported to the tape and is submitted to
received will be posted without change;
the Commission does not edit personal ‘‘clearing-only, non-regulatory reports,’’ FINRA solely for regulatory purposes) or
identifying information from as defined herein, relating to previously (2) ‘‘clearing-only’’ (the transaction is
submissions. You should submit only executed and reported transactions and not reported to the tape and is
information that you wish to make exempt such reports from certain submitted to FINRA for clearing (and
available publicly. reporting requirements under FINRA perhaps also regulatory) purposes).
All submissions should refer to File rules. FINRA notes that members can elect,
Number SR–BATS–2015–78 and should but are not required, to have the FINRA
The text of the proposed rule change
be submitted on or before October 27, Facility submit their trades to the
is available on FINRA’s Web site at National Securities Clearing Corporation
2015. http://www.finra.org, at the principal (‘‘NSCC’’) for clearance and settlement,
For the Commission, by the Division of office of FINRA and at the and in such instance, they would
Trading and Markets, pursuant to delegated Commission’s Public Reference Room.
authority.16 designate the submission for clearing.8
II. Self-Regulatory Organization’s Effective February 2, 2015, any
Robert W. Errett,
Statement of the Purpose of, and member operating an alternative trading
Deputy Secretary. system (‘‘ATS’’) must obtain for each
[FR Doc. 2015–25327 Filed 10–5–15; 8:45 am] Statutory Basis for, the Proposed Rule
such ATS a single, unique market
Change
BILLING CODE 8011–01–P participant identifier (‘‘MPID’’) that is
In its filing with the Commission, designated for exclusive use for
SECURITIES AND EXCHANGE FINRA included statements concerning
5 FINRA trade reporting rules require that for
COMMISSION the purpose of and basis for the
transactions between members, the ‘‘executing
proposed rule change and discussed any party’’ report the trade to FINRA. For transactions
[Release No. 34–76061; File No. SR–FINRA– comments it received on the proposed between a member and a non-member or customer,
2015–035] the member must report the trade. ‘‘Executing
rule change. The text of these statements
party’’ is defined under FINRA rules as the member
Self-Regulatory Organizations; may be examined at the places specified that receives an order for handling or execution or
Financial Industry Regulatory in Item IV below. FINRA has prepared is presented an order against its quote, does not
summaries, set forth in sections A, B, subsequently re-route the order, and executes the
Authority, Inc.; Notice of Filing and transaction. See Rules 6282(b), 6380A(b), 6380B(b)
Immediate Effectiveness of a Proposed and C below, of the most significant and 6622(b).
Rule Change Relating to the aspects of such statements. 6 For purposes of OTC trade reporting
Submission of ‘‘Clearing-Only, Non- requirements applicable to equity securities, a
Regulatory Reports’’ to the FINRA 3 17 CFR 240.19b–4(f)(6). ‘‘riskless principal’’ transaction is a transaction in
which a member, after having received an order to
Equity Trade Reporting Facilities 4 For purposes of this filing, the FINRA Facilities
buy (sell) a security, purchases (sells) the security
are the Alternative Display Facility (‘‘ADF’’) and the
as principal (the initial leg) and satisfies the original
September 30, 2015. Trade Reporting Facilities (‘‘TRF’’), to which order by selling (buying) as principal at the same
Pursuant to Section 19(b)(1) of the members report OTC transactions in NMS stocks, as price.
tkelley on DSK3SPTVN1PROD with NOTICES
Securities Exchange Act of 1934 defined in SEC Rule 600(b) of Regulation NMS; and 7 See Rules 6282(d)(4), 6380A(d)(4), 6380B(d)(4)
the OTC Reporting Facility (‘‘ORF’’), to which and 6622(d)(4).
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
members report transactions in ‘‘OTC Equity 8 As noted, FINRA rules do not mandate that
notice is hereby given that on Securities,’’ as defined in Rule 6420 (i.e., non-NMS members submit OTC transactions for clearing
stocks such as OTC Bulletin Board and OTC Market through a FINRA Facility, and for example,
16 See 17 CFR 200.30–3(a)(12). securities), as well as transactions in Restricted members may elect to clear via direct submission
1 15 U.S.C. 78s(b)(1). Equity Securities, as defined in Rule 6420, effected to the NSCC by a Qualified Special Representative
2 17 CFR 240.19b–4. pursuant to Securities Act Rule 144A. (‘‘QSR’’).
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Document Created: 2015-12-15 08:50:46
Document Modified: 2015-12-15 08:50:46
| 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 60419 |
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