80 FR 62592 - Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change Amending Several Rules To Address Certain Order Handling Obligations on the Part of Its Floor Brokers
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 200 (October 16, 2015)
Federal Register Volume 80, Issue 200 (October 16, 2015)
| Page Range | 62592-62593 | |
| FR Document | 2015-26330 |
[Federal Register Volume 80, Number 200 (Friday, October 16, 2015)] [Notices] [Pages 62592-62593] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-26330] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76063A; File No. SR-NYSEARCA-2015-81] Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change Amending Several Rules To Address Certain Order Handling Obligations on the Part of Its Floor Brokers October 9, 2015. AGENCY: Securities and Exchange Commission. ACTION: Notice; correction. ----------------------------------------------------------------------- [[Page 62593]] SUMMARY: The Securities and Exchange Commission published a document in the Federal Register of October 9, 2015 concerning a Notice of Filing of Proposed Rule Change Amending Several Rules to Address Certain Order Handling Obligations on the Part of Its Floor Brokers. The document incorrectly indicated that the Commission had waived the operative delay for the proposed rule change. FOR FURTHER INFORMATION CONTACT: Marc F. McKayle, Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549, (202) 551-5633. Correction In the Federal Register of October 7, 2015, in FR Doc No: 2015- 25463, on page 60723, the sentences from the 24th line through the 42nd line of the third column referring to the operative delay should be deleted. Robert W. Errett, Deputy Secretary. [FR Doc. 2015-26330 Filed 10-15-15; 8:45 am] BILLING CODE 8011-01-P
![62592 Federal Register / Vol. 80, No. 200 / Friday, October 16, 2015 / Notices
help members control their quote and equitable principles of trade, to foster NOM Participant’s quotes and orders
order activity on NOM.4 Referred to as cooperation and coordination with that are received by the Exchange prior
a ‘‘Kill Switch,’’ the functionality will persons engaged in facilitating to the time the Kill Switch is processed
allow NOM Participants to remove transactions in securities, to remove by the System will automatically
quotes and cancel open orders, and will impediments to and perfect the execute at the price up to the NOM
prevent the submission of new quotes mechanism of a free and open market Participant’s size.’’ 15 In that respect, the
and orders until the Exchange re- and a national market system, and, in Exchange further represented that ‘‘[t]he
enables access to the NOM System for general, to protect investors and the Kill Switch message will be accepted by
the Participant.5 public interest and that the rules are not the System in the order of receipt in the
To use the Kill Switch, a Participant designed to permit unfair queue and will be processed in that
will send a message 6 to the NOM discrimination between customers, order so that interest that is already
System to: (i) Promptly remove quotes; issuers, brokers, or dealers. accepted into the System will be
and/or (ii) promptly cancel orders for According to the Exchange, the processed prior to the Kill Switch
certain specified Identifiers (e.g., a proposed rule change is designed to message.’’ 16 Based on these
particular Exchange account, port, or protect Participants in the event that the representations, the Commission
badge or mnemonic, or for a group of Participant encounters a situation, like a believes that the proposal is designed to
Identifiers).7 The Exchange’s proposal systems issue, for which they would promote just and equitable principles of
does not allow Participants to remove like to withdraw temporarily from the trade and perfect the mechanism of a
quotes or cancel orders by symbol. The market.11 The Exchange further notes free and open market.
NOM System will send an automated that the proposed Kill Switch is Accordingly, the Commission finds
message to the Participant when it has designed to increase systemic that the Exchange’s proposal is
processed a Kill Switch request. protections and, in so doing, should consistent with the Act, including
The NOM Participant will be unable encourage liquidity generally while Section 6(b)(5) thereof, in that it is
to enter any new quotes or orders using removing impediments to market designed to promote just and equitable
the affected Identifier(s) until the participation.12 To the extent that the principles of trade, foster cooperation
Participant makes a verbal request to the Exchange’s proposal provides member and coordination with persons engaged
Exchange and Exchange staff enables re- firms with greater control over their in facilitating transactions in securities,
entry. Once enabled for re-entry, the quotes and orders, and allows firms to remove impediments to and perfect the
Exchange will send a message to the remove quotes and cancel orders in an mechanism of a free and open market
Participant and, if it requests to receive appropriate manner, then the proposal and a national market system, and, in
such notifications, to the Participant’s may encourage firms to provide general, protect investors and the public
clearing firm as well. liquidity on NOM and thus contribute to interest.
fair and orderly markets in a manner
III. Discussion and Commission that protects the public interest, protects IV. Conclusion
Findings investors, and is not designed to permit It is therefore ordered, pursuant to
After careful review, the Commission unfair discrimination. Section 19(b)(2) of the Act,17 that the
finds that the proposed rule change is Further, the Commission agrees that it proposed rule change (SR–NASDAQ–
consistent with the requirements of the would be appropriate to notify a 2015–096) be, and hereby is, approved.
Act and the rules and regulations Participant’s clearing member, at the
For the Commission, by the Division of
thereunder applicable to a national clearing member’s request, once a
Trading and Markets, pursuant to delegated
securities exchange,8 and, in particular, Participant’s selected Identifiers are re- authority.18
the requirements of Section 6 of the enabled following the Participant’s use
Robert W. Errett,
Act.9 In particular, the Commission of the Kill Switch. Because the clearing
Deputy Secretary.
finds that the proposed rule change is member accepts financial responsibility
consistent with Section 6(b)(5) of the for clearing the Participant’s trades, [FR Doc. 2015–26327 Filed 10–15–15; 8:45 am]
Act,10 which requires, among other notifying the applicable clearing BILLING CODE 8011–01–P
things, that the rules of a national member of a Participant’s re-enabled
securities exchange be designed to Identifiers following use of the Kill
prevent fraudulent and manipulative Switch may be appropriate and help the SECURITIES AND EXCHANGE
acts and practices, to promote just and clearing member manage the risk COMMISSION
associated with the Participant’s trading
4 See id. activity. [Release No. 34–76063A; File No. SR–
5 Orders submitted by NOM Market Makers over The Commission notes that the NYSEARCA–2015–81]
Ouch to Trade Options (‘‘OTTO’’) interface will be Exchange represented in its proposal
treated as quotes for purposes of this rule. See Self-Regulatory Organizations; Notice
Notice, supra note 3, at 51850. that the Kill Switch will operate of Filing of Proposed Rule Change
6 NOM Participants will be able to utilize an consistently with a broker-dealer’s firm Amending Several Rules To Address
interface to send a message to the Exchange to quote obligations pursuant to Rule 602 Certain Order Handling Obligations on
initiate the Kill Switch, or they may contact the of Regulation NMS,13 and that the
Exchange directly. See Notice, supra note 3, at note the Part of Its Floor Brokers
3.
proposal does not diminish a market-
7 Permissible groups could be formed only within maker’s obligation to provide October 9, 2015.
a single broker-dealer. For example, a group could continuous two-sided quotes on a daily AGENCY: Securities and Exchange
srobinson on DSK5SPTVN1PROD with NOTICES
include, but would not be limited to, all market basis under NOM rules.14 Specifically, Commission.
maker accounts or all order entry ports. See Notice, the Exchange represents that ‘‘any
supra note 3, at 51850. ACTION: Notice; correction.
8 In approving this proposed rule change, the
interest that is executable against a
Commission has considered the proposed rule’s
11 See Notice, supra note 3, at 51851. 15 Id.
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f). 12 See id. 16 Id.
9 15 U.S.C. 78f. 13 See id. 17 15 U.S.C. 78s(b)(2).
10 15 U.S.C. 78f(b)(5). 14 See id. 18 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 18:54 Oct 15, 2015 Jkt 238001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\16OCN1.SGM 16OCN1](https://thefederalregister.org/doc/80_FR_62792/page/1.svg)
![Federal Register / Vol. 80, No. 200 / Friday, October 16, 2015 / Notices 62593
SUMMARY: The Securities and Exchange II. Self-Regulatory Organization’s The proposed Rule text provides for
Commission published a document in Statement of the Purpose of, and the replacement of ICC’s current once-
the Federal Register of October 9, 2015 Statutory Basis for, the Proposed Rule in-a-lifetime waiver for Missed
concerning a Notice of Filing of Change Submissions with a conditional once-a-
Proposed Rule Change Amending year waiver for Missed Submissions
Several Rules to Address Certain Order In its filing with the Commission, ICC caused by technical failures. Under
Handling Obligations on the Part of Its included statements concerning the revised Rule 702(e)(ii)(2), a CP would be
Floor Brokers. The document purpose of and basis for the proposed eligible for one waiver per year for
incorrectly indicated that the rule change and discussed any single name Missed Submissions, and
Commission had waived the operative comments it received on the proposed one waiver per year for index Missed
delay for the proposed rule change. rule change. The text of these statements Submissions. A CP may request such
may be examined at the places specified wavier(s) be applied against all Missed
FOR FURTHER INFORMATION CONTACT:
in Item IV below. ICC has prepared Submissions for a given instrument
Marc F. McKayle, Division of Trading
summaries, set forth in sections A, B, class on a given day. A CP would be
and Markets, Securities and Exchange
and C below, of the most significant required to provide documentation with
Commission, 100 F Street NE.,
aspects of these statements. a waiver request, explaining that the
Washington, DC 20549, (202) 551–5633.
A. Self-Regulatory Organization’s root-cause of the Missed Submission
Correction was a technology issue and including a
Statement of the Purpose of, and
In the Federal Register of October 7, Statutory Basis for, the Proposed Rule remediation plan to fix the cause of the
2015, in FR Doc No: 2015–25463, on Change Missed Submission. ICC would review
page 60723, the sentences from the 24th and evaluate the waiver request and
line through the 42nd line of the third As part of ICC’s end-of-day price accept unless it had legitimate concerns
column referring to the operative delay discovery process, ICC Clearing that the root-cause of the Missed
should be deleted. Participants (‘‘CPs’’) are required to Submission had not been adequately
submit end-of-day prices for specific identified, was not due to a technical
Robert W. Errett, instruments related to their open issue, and/or would not be corrected by
Deputy Secretary. interest at ICC, in accordance with Rule the provided remediation plan. ICC
[FR Doc. 2015–26330 Filed 10–15–15; 8:45 am] 404(b) and ICC Procedures. Failure of a would maintain its current ability to
BILLING CODE 8011–01–P CP to provide submissions required by provide waivers for Missed Submissions
ICC pursuant to Rule 404(b) and ICC deemed to be due to extraordinary
Procedures constitute a Missed circumstances outside of a CP’s control,
SECURITIES AND EXCHANGE Submission. In order to provide as set forth in Rule 702(e)(ii)(3). Pending
COMMISSION incentive against Missed Submissions, regulatory approval, ICC plans to
[Release No. 34–76122; File No. SR–ICC– ICC has adopted a summary assessment implement these changes on January 1,
2015–015] approach described in Rule 702(e) and 2016, and apply the once-a-year waiver
Schedule 702 of the Rules. to the 2016 calendar year, and each
Self-Regulatory Organizations; ICE Currently, under Rule 702(e)(ii)(2), a calendar year going forward. There are
Clear Credit LLC; Notice of Filing of CP may be eligible for a once-in-a- no changes to ICC policies and
Proposed Rule Change Related to the lifetime conditional waiver from such procedures as a result of the Rule
ICC Rule Enforcement Process for assessments, if one or more Missed changes.
Missed Submissions Submissions are the first instance(s) of Section 17A(b)(3)(F) of the Act 3
October 9, 2015.
a Missed Submission for the type of requires, among other things, that the
instrument (index or single name) and rules of a clearing agency be designed to
Pursuant to Section 19(b)(1) of the
the CP provides adequate explanation of protect investors and the public interest
Securities Exchange Act of 1934
the cause and plans for remedial and to comply with the provisions of
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
actions. the Act and the rules and regulations
notice is hereby given that on
September 30, 2015, ICE Clear Credit Given the increased automation of thereunder. ICC believes that the
LLC (‘‘ICC’’) filed with the Securities price submissions, ICC recognizes that proposed rule changes are consistent
and Exchange Commission there may be circumstances, due to with the requirements of the Act and the
(‘‘Commission’’) the proposed rule technological failures, which may result rules and regulations thereunder
change as described in Items I, II, and in Missed Submissions. Furthermore, applicable to ICC, in particular, to
III below, which Items have been due to the significant length of time Section 17(A)(b)(3)(F),4 because ICC
prepared primarily by ICC. The since the inception of the end-of-day believes that the proposed rule changes
Commission is publishing this notice to process, many CPs have utilized their will assure the prompt and accurate
solicit comments on the proposed rule once-in-a-lifetime waiver. As such, ICC clearance and settlement of securities
change from interested persons. believes it is reasonable to provide, transactions, derivatives agreements,
under limited circumstances, a contracts, and transactions, as the
I. Self-Regulatory Organization’s conditional once-a-year waiver for such proposed revisions enhance ICC’s price
Statement of the Terms of Substance of Missed Submissions caused by discovery process, by ensuring a fair
the Proposed Rule Change technical failures, as described below. and equitable assessment structure. As
Such Rule changes will not affect the such, the proposed changes are
srobinson on DSK5SPTVN1PROD with NOTICES
The purpose of the proposed changes
is to make revisions to the ICC Clearing integrity and effectiveness of the end-of- designed to promote the prompt and
Rules (the ‘‘Rules’’) related to the ICC day price discovery process. ICC accurate clearance and settlement of
rule enforcement process for Missed believes such Rule changes provide a securities transactions, derivatives
Submissions. valuable and practical balance between agreements, contracts, and transactions
the technicalities of the price discovery
1 15 U.S.C. 78s(b)(1). process and appropriate penalization for 3 15 U.S.C. 78q–1(b)(3)(F).
2 17 CFR 240.19b–4. Missed Submissions. 4 Id.
VerDate Sep<11>2014 18:54 Oct 15, 2015 Jkt 238001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\16OCN1.SGM 16OCN1](https://thefederalregister.org/doc/80_FR_62792/page/2.svg)
Document Created: 2015-12-14 15:23:13
Document Modified: 2015-12-14 15:23:13
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice; correction. | |
| Contact | Marc F. McKayle, Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549, (202) 551-5633. | |
| FR Citation | 80 FR 62592 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR