80 FR 61244 - Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of No Objection to Advance Notice Filing To Enhance NSCC's Margining Methodology as Applied to Family-Issued Securities of Certain NSCC Members
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 196 (October 9, 2015)
Federal Register Volume 80, Issue 196 (October 9, 2015)
| Page Range | 61244-61246 | |
| FR Document | 2015-25700 |
[Federal Register Volume 80, Number 196 (Friday, October 9, 2015)] [Notices] [Pages 61244-61246] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-25700] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76075; File No. SR-NSCC-2015-803] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of No Objection to Advance Notice Filing To Enhance NSCC's Margining Methodology as Applied to Family-Issued Securities of Certain NSCC Members October 5, 2015. National Securities Clearing Corporation (``NSCC'') filed on August 14, 2015 with the Securities and Exchange Commission (``Commission'') advance notice SR-NSCC-2015-803 (``Advance Notice'') pursuant to Section 806(e)(1) of the Payment, Clearing, and Settlement Supervision Act of 2010 (``Payment, Clearing and Settlement Supervision Act'') \1\ and Rule 19b-4(n)(1)(i) \2\ under the Securities Exchange Act of 1934 (``Exchange Act'') to change its margin charge with respect to a member's positions in securities that are issued by such member or its affiliate (i.e., ``family-issued securities'') by excluding positions in these securities, when the member is on NSCC's Watch List,\3\ from its volatility margining model. The Advance Notice was published for comment in the Federal Register on September 17, 2015.\4\ The Commission did not receive any comments on the Advance Notice. This publication serves as notice of no objection to the Advance Notice. --------------------------------------------------------------------------- \1\ 12 U.S.C. 5465(e)(1). The Financial Stability Oversight Council designated NSCC a systemically important financial market utility on July 18, 2012. See Financial Stability Oversight Council 2012 Annual Report, Appendix A, http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf. Therefore, NSCC is required to comply with the Payment, Clearing and Settlement Supervision Act and file advance notices with the Commission. See 12 U.S.C. 5465(e). \2\ 17 CFR 240.19b-4(n)(1)(i). \3\ As part of its ongoing monitoring of its membership, NSCC utilizes an internal credit risk rating matrix to rate its risk exposures to its members based on a scale from 1 (the strongest) to 7 (the weakest). Members that fall within the weakest three rating categories (i.e., 5, 6, and 7) are placed on NSCC's ``Watch List'' and, as provided under NSCC's Rules and Procedures (``Rules''), may be subject to enhanced surveillance or additional margin charges. See Section 4 of Rule 2B and Section I(B)(1) of Procedure XV of NSCC's Rules, available at http://dtcc.com/~/media/Files/Downloads/ legal/rules/nscc_rules.pdf. \4\ See Securities Exchange Act Release No. 75899 (September 11, 2015), 80 FR 55883 (September 17, 2015) (File No. SR-NSCC-2015-803). NSCC also filed a proposed rule change with the Commission pursuant to Section 19(b)(1) of the Exchange Act and Rule 19b-4 thereunder, seeking approval of changes to its Rules necessary to implement the Advance Notice. 15 U.S.C. 78s(b)(1) and 17 CFR 240.19b-4, respectively. This proposed rule change was published in the Federal Register on September 2, 2015. Securities Exchange Act Release No. 75768 (August 27, 2015), 80 FR 53219 (September 2, 2015) (SR-NSCC- 2015-003). --------------------------------------------------------------------------- I. Description of the Advance Notice As described by NSCC in the Advance Notice, NSCC has proposed to enhance its margin methodology as applied to the family-issued securities of its members that are on its Watch List \5\ by excluding these securities from the volatility component, or ``VaR'' charge, and then charging an amount calculated by multiplying the absolute value of the long net unsettled positions in that member's family-issued securities by a percentage that is no less than 40%. The haircut rate to be charged will be determined based on the member's rating on the credit risk rating matrix and the type of family-issued security submitted to NSCC. Fixed income securities that are family-issued securities will be charged a haircut rate of no less than 80% for firms that are rated 6 or 7 on the credit risk rating matrix, and no less than 40% for firms that are rated 5 on the credit risk rating matrix; and equity securities that are family-issued securities will be charged a haircut rate of 100% for firms that are rated 6 or 7 on the credit risk rating matrix, and no less than 50% for firms that are rated 5 on the credit risk rating matrix. NSCC will have the authority to adjust these haircut rates from time to time within these parameters as described in Procedure XV of NSCC's Rules without filing a proposed rule change with the Commission pursuant to Section 19(b)(1) of the Exchange Act,\6\ and the rules thereunder, or an advance notice with the Commission pursuant to Section 806(e)(1) of the Payment, Clearing and Settlement Supervision Act,\7\ and the rules thereunder. --------------------------------------------------------------------------- \5\ See Section 4 of Rule 2B and Section I(B)(1) of Procedure XV of NSCC's Rules, supra Note 3. \6\ 15 U.S.C. 78s(b)(1). \7\ 12 U.S.C. 5465(e)(1). --------------------------------------------------------------------------- As described by NSCC in the Advance Notice, NSCC, as a central counterparty (``CCP''), occupies an important role in the securities settlement system by interposing itself between counterparties to financial transactions and thereby reducing the risk faced by participants and contributing to global financial stability. The effectiveness of a CCP's risk controls and the adequacy of its financial resources are critical to achieving these risk-reducing goals. In that context, NSCC continuously reviews its margining methodology in order to ensure the reliability of its margining in achieving the desired coverage. In order to be most effective, NSCC must take into consideration the risk characteristics specific to certain securities when margining those securities. Among the various risks that NSCC considers when evaluating the effectiveness of its margining methodology are its counterparty risks and identification and mitigation of ``wrong-way'' risk, particularly specific wrong-way risk, defined as the risk that an exposure to a counterparty is highly likely to increase when the creditworthiness of that counterparty deteriorates.\8\ NSCC has identified an exposure to wrong-way risk when it acts as a CCP to a member with respect to positions in securities that are issued by that member or that member's affiliate. These positions are referred to as ``family-issued securities.'' In the event that a member with unsettled long positions in family-issued securities defaults, NSCC would close out those positions following a likely drop in the [[Page 61245]] credit-worthiness of the issuer, possibly resulting in a loss to NSCC. --------------------------------------------------------------------------- \8\ See Principles for financial market infrastructures, issued by the Committee on Payment and Settlement Systems and the Technical Committee of the International Organization of Securities Commissions 47 n.65 (April 2012), available at http://www.bis.org/publ/cpss101a.pdf. --------------------------------------------------------------------------- Therefore, the overall impact of NSCC's proposal, as described above, on risks presented by NSCC will be to reduce NSCC's exposure to this type of wrong-way risk by enhancing its margin methodology as applied to the family-issued securities of its members that are on its Watch List, and present a heightened credit risk to the clearing agency or have demonstrated higher risk related to their ability to meet settlement. NSCC believes a reduction in its exposures to wrong-way risk through a margining methodology that more effectively captures the risk characteristics of these positions will contribute to the goal of maintaining financial stability in the event of a member default and reduce systemic risk overall. Because NSCC members that are on its Watch List present a heightened credit risk to the clearing agency or have demonstrated higher risk related to their ability to meet settlement, NSCC believes that this charge will more effectively capture the risk characteristics of these positions and can help mitigate NSCC's exposure to wrong-way risk. NSCC stated in the Advance Notice that it will continue to evaluate its exposures to wrong-way risk, specifically wrong-way risk presented by family-issued securities, including by reviewing the impact of expanding the application of the proposed margining methodology to the family-issued securities of those members that are not on the Watch List. NSCC is proposing to apply the enhanced margining methodology to the family-issued securities of members that are on the Watch List at this time because, as stated above, these members present a heightened credit risk to the clearing agency or have demonstrated higher risk related to their ability to meet settlement. As such, there is a clear and more urgent need to address NSCC's exposure to wrong-way risk presented by these firms' family-issued securities. However, any future change to the margining methodology as applied to the family-issued securities of members that are not on the Watch List would be subject to a separate proposed rule change pursuant to Section 19(b)(1) of the Exchange Act,\9\ and the rules thereunder and an advance notice pursuant to Section 806(e)(1) of the Payment, Clearing and Settlement Supervision Act,\10\ and the rules thereunder. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(1). \10\ 12 U.S.C. 5465(e)(1). --------------------------------------------------------------------------- II. Discussion and Commission Findings Although the Payment, Clearing and Settlement Supervision Act does not specify a standard of review for an advance notice, the Commission believes that the stated purpose of the Payment, Clearing and Settlement Supervision Act is instructive.\11\ The stated purpose of the Payment, Clearing and Settlement Supervision Act is to mitigate systemic risk in the financial system and promote financial stability by, among other things, promoting uniform risk management standards for systemically important financial market utilities and strengthening the liquidity of systemically important financial market utilities.\12\ --------------------------------------------------------------------------- \11\ See 12 U.S.C. 5461(b). \12\ Id. --------------------------------------------------------------------------- Section 805(a)(2) of the Payment, Clearing and Settlement Supervision Act \13\ authorizes the Commission to prescribe risk management standards for the payment, clearing, and settlement activities of designated clearing entities and financial institutions engaged in designated activities for which it is the supervisory agency or the appropriate financial regulator. Section 805(b) of the Payment, Clearing and Settlement Supervision Act \14\ states that the objectives and principles for the risk management standards prescribed under Section 805(a) shall be to: --------------------------------------------------------------------------- \13\ 12 U.S.C. 5464(a)(2). \14\ 12 U.S.C. 5464(b). ---------------------------------------------------------------------------Promote robust risk management; promote safety and soundness; reduce systemic risks; and support the stability of the broader financial system. The Commission has adopted risk management standards under Section 805(a)(2) of the Payment, Clearing and Settlement Supervision Act (``Clearing Agency Standards'') and the Exchange Act.\15\ The Clearing Agency Standards became effective on January 2, 2013, and require registered clearing agencies to establish, implement, maintain, and enforce written policies and procedures that are reasonably designed to meet certain minimum requirements for their operations and risk management practices on an ongoing basis.\16\ As such, it is appropriate for the Commission to review advance notices against these Clearing Agency Standards, and the objectives and principles of these risk management standards as described in Section 805(b) of the Payment, Clearing and Settlement Supervision Act.\17\ --------------------------------------------------------------------------- \15\ 17 CFR 240.17Ad-22. \16\ The Clearing Agency Standards are substantially similar to the risk management standards established by the Board of Governors of the Federal Reserve System governing the operations of designated financial market utilities that are not clearing entities and financial institutions engaged in designated activities for which the Commission or the Commodity Futures Trading Commission is the Supervisory Agency. See Financial Market Utilities, 77 FR 45907 (August 2, 2012). \17\ 12 U.S.C. 5464(b). --------------------------------------------------------------------------- The Commission believes the proposal in the Advance Notice is consistent with the objectives and principles described in Section 805(b) of the Payment, Clearing and Settlement Supervision Act,\18\ and the Clearing Agency Standards, in particular, Rule 17Ad-22(b)(1) \19\ and Rule 17Ad-22(b)(2) \20\ under the Exchange Act, as described in detail below. --------------------------------------------------------------------------- \18\ Id. \19\ 17 CFR 240.17Ad-22(b)(1). \20\ 17 CFR 240.17Ad-22(b)(2). --------------------------------------------------------------------------- Consistency with Section 805(b) of the Act. The objectives and principles of Section 805(b) of the Payment, Clearing and Settlement Supervision Act are to promote robust risk management, promote safety and soundness, reduce systemic risks, and support the stability of the broader financial system.\21\ By enhancing the margin methodology applied to family-issued securities of members that are on NSCC's Watch List, the proposal will assist NSCC in collecting margin that more accurately reflects NSCC's exposure to a clearing member that clears family-issued securities and will assist NSCC in its continuous efforts to improve the reliability and effectiveness of its risk-based margining methodology by taking into account specific wrong-way risk. As such, the proposal will help NSCC, as a CCP, promote robust risk management, and thus contributing to the goal of maintaining financial stability in the event of a member default. --------------------------------------------------------------------------- \21\ 12 U.S.C. 5464(b). --------------------------------------------------------------------------- Consistency with Rule 17Ad-22(b)(1). Rule 17Ad-22(b)(1) \22\ under the Exchange Act requires a CCP, such as NSCC, to ``establish, implement, maintain and enforce written policies and procedures reasonably designed to . . . limit its exposures to potential losses from defaults by its participants under normal market conditions . . . .'' NSCC faces specific wrong-way risk in all circumstances where a member submits family-issued securities to NSCC for clearance, including under normal market conditions. By enhancing the margin methodology applied to family-issued securities of NSCC's members that are on its Watch List, the proposal will limit NSCC's exposure to potential losses from the [[Page 61246]] default of a member on NSCC's Watch List with family-issued securities under normal market conditions. As such, the Commission believes that the proposal is consistent with Rule 17Ad-22(b)(1). --------------------------------------------------------------------------- \22\ 17 CFR 240.17Ad-22(b)(1). --------------------------------------------------------------------------- Consistency with Rule 17Ad-22(b)(2). Rule 17Ad-22(b)(2) \23\ under the Exchange Act requires a CCP, such as NSCC, to ``establish, implement, maintain and enforce written policies and procedures reasonably designed to . . . [u]se margin requirements to limit its credit exposures to participants under normal market conditions and use risk-based models and parameters to set margin requirements . . . .'' By enhancing the margin methodology applied to family-issued securities of NSCC's members that are on its Watch List, the proposal will better account for and cover NSCC's credit exposure to less creditworthy members. In addition, by taking into account specific wrong-way risk arising from family-issued securities submitted to NSCC, the proposal is consistent with using risk based models and parameters to set margin requirements. As such, the Commission believes that the proposal is consistent with Rule 17Ad-22(b)(2). --------------------------------------------------------------------------- \23\ 17 CFR 240.17Ad-22(b)(2). --------------------------------------------------------------------------- III. Conclusion It is therefore noticed, pursuant to Section 806(e)(1)(I) of the Payment, Clearing and Settlement Supervision Act,\24\ that the Commission does not object to Advance Notice and that NSCC is authorized to implement the proposal. --------------------------------------------------------------------------- \24\ 12 U.S.C. 5465(e)(1)(I). By the Commission. Robert W. Errett, Deputy Secretary. [FR Doc. 2015-25700 Filed 10-8-15; 8:45 am] BILLING CODE 8011-01-P
![61244 Federal Register / Vol. 80, No. 196 / Friday, October 9, 2015 / Notices
SUMMARY: This announcement of the 4(n)(1)(i) 2 under the Securities family-issued securities will be charged
membership of the National Science Exchange Act of 1934 (‘‘Exchange Act’’) a haircut rate of 100% for firms that are
Foundation’s Office of Inspector General to change its margin charge with respect rated 6 or 7 on the credit risk rating
and National Science Board Office to a member’s positions in securities matrix, and no less than 50% for firms
Senior Executive Service Performance that are issued by such member or its that are rated 5 on the credit risk rating
Review Board is made in compliance affiliate (i.e., ‘‘family-issued securities’’) matrix. NSCC will have the authority to
with 5 U.S.C. 4314(c)(4). by excluding positions in these adjust these haircut rates from time to
ADDRESSES: Comments should be securities, when the member is on time within these parameters as
addressed to Division Director, Division NSCC’s Watch List,3 from its volatility described in Procedure XV of NSCC’s
of Human Resource Management, margining model. The Advance Notice Rules without filing a proposed rule
National Science Foundation, Room was published for comment in the change with the Commission pursuant
315, 4201 Wilson Boulevard, Arlington, Federal Register on September 17, to Section 19(b)(1) of the Exchange Act,6
VA 22230. 2015.4 The Commission did not receive and the rules thereunder, or an advance
FOR FURTHER INFORMATION CONTACT: Dr.
any comments on the Advance Notice. notice with the Commission pursuant to
Judith S. Sunley at the above address or This publication serves as notice of no Section 806(e)(1) of the Payment,
(703) 292–8180. objection to the Advance Notice. Clearing and Settlement Supervision
SUPPLEMENTARY INFORMATION: The I. Description of the Advance Notice Act,7 and the rules thereunder.
membership of the National Science As described by NSCC in the Advance As described by NSCC in the Advance
Board’s Senior Executive Service Notice, NSCC has proposed to enhance Notice, NSCC, as a central counterparty
Performance Review Board is as follows: its margin methodology as applied to (‘‘CCP’’), occupies an important role in
Ruth David, Chair, Audit and the family-issued securities of its the securities settlement system by
Oversight Committee, National Science members that are on its Watch List 5 by interposing itself between
Board excluding these securities from the counterparties to financial transactions
Joanne Tornow, Head, Office of volatility component, or ‘‘VaR’’ charge, and thereby reducing the risk faced by
Information and Resource Management, and then charging an amount calculated participants and contributing to global
and Chief Human Capital Officer by multiplying the absolute value of the financial stability. The effectiveness of a
Plus two members to be selected from long net unsettled positions in that CCP’s risk controls and the adequacy of
the IG community. member’s family-issued securities by a its financial resources are critical to
Dated: October 2, 2015. percentage that is no less than 40%. The achieving these risk-reducing goals. In
Judith S. Sunley, haircut rate to be charged will be that context, NSCC continuously
Division Director, Division of Human determined based on the member’s reviews its margining methodology in
Resource Management. rating on the credit risk rating matrix order to ensure the reliability of its
[FR Doc. 2015–25722 Filed 10–8–15; 8:45 am] and the type of family-issued security margining in achieving the desired
BILLING CODE 7555–01–M
submitted to NSCC. Fixed income coverage. In order to be most effective,
securities that are family-issued NSCC must take into consideration the
securities will be charged a haircut rate risk characteristics specific to certain
of no less than 80% for firms that are securities when margining those
SECURITIES AND EXCHANGE
rated 6 or 7 on the credit risk rating securities.
COMMISSION
matrix, and no less than 40% for firms
[Release No. 34–76075; File No. SR–NSCC– that are rated 5 on the credit risk rating Among the various risks that NSCC
2015–803] matrix; and equity securities that are considers when evaluating the
effectiveness of its margining
Self-Regulatory Organizations; and Settlement Supervision Act and file advance methodology are its counterparty risks
National Securities Clearing notices with the Commission. See 12 U.S.C. and identification and mitigation of
Corporation; Notice of No Objection to 5465(e). ‘‘wrong-way’’ risk, particularly specific
2 17 CFR 240.19b–4(n)(1)(i).
Advance Notice Filing To Enhance 3 As part of its ongoing monitoring of its
wrong-way risk, defined as the risk that
NSCC’s Margining Methodology as membership, NSCC utilizes an internal credit risk an exposure to a counterparty is highly
Applied to Family-Issued Securities of rating matrix to rate its risk exposures to its likely to increase when the
Certain NSCC Members members based on a scale from 1 (the strongest) to creditworthiness of that counterparty
7 (the weakest). Members that fall within the
deteriorates.8 NSCC has identified an
October 5, 2015. weakest three rating categories (i.e., 5, 6, and 7) are
placed on NSCC’s ‘‘Watch List’’ and, as provided exposure to wrong-way risk when it acts
National Securities Clearing
under NSCC’s Rules and Procedures (‘‘Rules’’), may as a CCP to a member with respect to
Corporation (‘‘NSCC’’) filed on August be subject to enhanced surveillance or additional positions in securities that are issued by
14, 2015 with the Securities and margin charges. See Section 4 of Rule 2B and
that member or that member’s affiliate.
Exchange Commission (‘‘Commission’’) Section I(B)(1) of Procedure XV of NSCC’s Rules,
available at http://dtcc.com/∼/media/Files/ These positions are referred to as
advance notice SR–NSCC–2015–803
(‘‘Advance Notice’’) pursuant to Section
Downloads/legal/rules/nscc_rules.pdf. ‘‘family-issued securities.’’ In the event
4 See Securities Exchange Act Release No. 75899
806(e)(1) of the Payment, Clearing, and that a member with unsettled long
(September 11, 2015), 80 FR 55883 (September 17,
Settlement Supervision Act of 2010 2015) (File No. SR–NSCC–2015–803). NSCC also positions in family-issued securities
(‘‘Payment, Clearing and Settlement filed a proposed rule change with the Commission defaults, NSCC would close out those
Supervision Act’’) 1 and Rule 19b–
pursuant to Section 19(b)(1) of the Exchange Act positions following a likely drop in the
and Rule 19b–4 thereunder, seeking approval of
changes to its Rules necessary to implement the
tkelley on DSK3SPTVN1PROD with NOTICES
6 15 U.S.C. 78s(b)(1).
1 12 U.S.C. 5465(e)(1). The Financial Stability Advance Notice. 15 U.S.C. 78s(b)(1) and 17 CFR
7 12 U.S.C. 5465(e)(1).
Oversight Council designated NSCC a systemically 240.19b–4, respectively. This proposed rule change
important financial market utility on July 18, 2012. was published in the Federal Register on 8 See Principles for financial market
See Financial Stability Oversight Council 2012 September 2, 2015. Securities Exchange Act Release infrastructures, issued by the Committee on
Annual Report, Appendix A, http:// No. 75768 (August 27, 2015), 80 FR 53219 Payment and Settlement Systems and the Technical
www.treasury.gov/initiatives/fsoc/Documents/ (September 2, 2015) (SR–NSCC–2015–003). Committee of the International Organization of
2012%20Annual%20Report.pdf. Therefore, NSCC 5 See Section 4 of Rule 2B and Section I(B)(1) of Securities Commissions 47 n.65 (April 2012),
is required to comply with the Payment, Clearing Procedure XV of NSCC’s Rules, supra Note 3. available at http://www.bis.org/publ/cpss101a.pdf.
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![61246 Federal Register / Vol. 80, No. 196 / Friday, October 9, 2015 / Notices
default of a member on NSCC’s Watch be open to the public, except for a Commission, 100 F Street NE.,
List with family-issued securities under period of approximately 60 minutes Washington, DC 20549–7010.
normal market conditions. As such, the when the Committee will meet in an SUPPLEMENTARY INFORMATION: In
Commission believes that the proposal administrative work session during accordance with Section 10(a) of the
is consistent with Rule 17Ad–22(b)(1). lunch. The public portions of the Federal Advisory Committee Act, 5
Consistency with Rule 17Ad–22(b)(2). meeting will be webcast on the U.S.C.–App. 1, and the regulations
Rule 17Ad–22(b)(2) 23 under the Commission’s Web site at www.sec.gov. thereunder, Stephen Luparello,
Exchange Act requires a CCP, such as Persons needing special Designated Federal Officer of the
NSCC, to ‘‘establish, implement, accommodations to take part because of Committee, has ordered publication of
maintain and enforce written policies a disability should notify the contact this notice.
and procedures reasonably designed to person listed below. The public is Dated: October 6, 2015.
. . . [u]se margin requirements to limit invited to submit written statements to
its credit exposures to participants Brent J. Fields,
the Committee. The meeting will focus
under normal market conditions and Committee Management Officer.
on Rule 610 of SEC Regulation NMS and
use risk-based models and parameters to [FR Doc. 2015–25759 Filed 10–8–15; 8:45 am]
the regulatory structure of trading
set margin requirements . . . .’’ By venues. BILLING CODE 8011–01–P
enhancing the margin methodology
applied to family-issued securities of DATES: The public meeting will be held
NSCC’s members that are on its Watch on Tuesday, October 27, 2015. Written SECURITIES AND EXCHANGE
List, the proposal will better account for statements should be received on or COMMISSION
and cover NSCC’s credit exposure to before October 22, 2015.
[Release No. 34–76078: File No. SR–FINRA–
less creditworthy members. In addition, ADDRESSES: The meeting will be held at 2015–020]
by taking into account specific wrong- the Commission’s headquarters, 100 F
way risk arising from family-issued Street NE., Washington, DC. Written Self-Regulatory Organizations;
securities submitted to NSCC, the statements may be submitted by any of Financial Industry Regulatory
proposal is consistent with using risk the following methods: Authority, Inc.; Order Approving a
based models and parameters to set Proposed Rule Change, as Amended
Electronic Statements by Amendment No. 1, To Expand
margin requirements. As such, the
Commission believes that the proposal • Use the Commission’s Internet FINRA’s Alternative Trading System
is consistent with Rule 17Ad–22(b)(2). submission form (http://www.sec.gov/ Transparency Initiative by Publishing
rules/other.shtml); or OTC Equity Volume Executed Outside
III. Conclusion
• Send an email message to rule- ATSs
It is therefore noticed, pursuant to comments@sec.gov. Please include File
Section 806(e)(1)(I) of the Payment, October 5, 2015.
Number 265–29 on the subject line; or
Clearing and Settlement Supervision I. Introduction
Act,24 that the Commission does not Paper Statements
On June 23, 2015, the Financial
object to Advance Notice and that NSCC • Send paper statements in triplicate Industry Regulatory Authority, Inc.
is authorized to implement the to Brent J. Fields, Federal Advisory
proposal. (‘‘FINRA’’) filed with the Securities and
Committee Management Officer, Exchange Commission (‘‘Commission’’),
By the Commission. Securities and Exchange Commission, pursuant to Section 19(b)(1) of the
Robert W. Errett, 100 F Street NE., Washington, DC Securities Exchange Act of 1934
Deputy Secretary. 20549–1090. (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
[FR Doc. 2015–25700 Filed 10–8–15; 8:45 am] All submissions should refer to File No. proposed rule change to amend Rule
BILLING CODE 8011–01–P 265–29. This file number should be 6110, Trading Otherwise than on an
included on the subject line if email is Exchange and 6610 regarding the OTC
used. To help us process and review Reporting Facility to expand FINRA’s
SECURITIES AND EXCHANGE your statement more efficiently, please alternative trading system (‘‘ATS’’)
COMMISSION use only one method. The Commission transparency initiative. The changes
[Release No. 34–76081; File No. 265–29]
will post all statements on the would provide for publication of the
Commission’s Internet Web site at SEC remaining equity volume executed over-
Equity Market Structure Advisory Web site at (http://www.sec.gov/ the-counter (‘‘OTC’’) by FINRA
Committee comments/265–29/265–29.shtml). members, including activity in non-ATS
Statements also will be available for electronic trading systems and
AGENCY: Securities and Exchange Web site viewing and printing in the internalized trades. The proposed rule
Commission. Commission’s Public Reference Room, change was published for comment in
ACTION: Notice of meeting. 100 F Street NE., Room 1580, the Federal Register on July 9, 2015.3
SUMMARY: The Securities and Exchange Washington, DC 20549, on official The Commission received two
Commission Equity Market Structure business days between the hours of comments on the proposal.4 FINRA
Advisory Committee is providing notice 10:00 a.m. and 3:00 p.m. All statements
that it will hold a public meeting on received will be posted without change; 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Tuesday, October 27, 2015, in Multi- we do not edit personal identifying
3 See Securities Exchange Act Release No. 75356
information from submissions. You
tkelley on DSK3SPTVN1PROD with NOTICES
Purpose Room LL–006 at the (July 2, 2015), 80 FR 39463 (‘‘Notice’’). The Notice
Commission’s headquarters, 100 F should submit only information that contains a detailed description of the proposal.
Street NE., Washington, DC The meeting you wish to make available publicly. 4 See letter from Kerry Baker Relf, Head of
FOR FURTHER INFORMATION CONTACT: Content Acquisition and Rights Management,
will begin at 9:30 a.m. (EDT) and will Thomson Reuters to Brent J. Fields, Secretary,
Arisa Tinaves Kettig, Special Counsel, at Commission, dated July 20, 2015, (‘‘Thomson
23 17 CFR 240.17Ad–22(b)(2). (202) 551–5676, Division of Trading and Reuters Letter’’) and letter from Theodore R. Lazo,
24 12 U.S.C. 5465(e)(1)(I). Markets, Securities and Exchange Managing Director and Associate General Counsel,
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Document Created: 2015-12-15 08:34:18
Document Modified: 2015-12-15 08:34:18
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