80 FR 63855 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Adopt Rule 2.4, Mandatory Participation in Testing of Backup Systems

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 203 (October 21, 2015)

Page Range		63855-63857
FR Document		2015-26678

Federal Register, Volume 80 Issue 203 (Wednesday, October 21, 2015)

[Federal Register Volume 80, Number 203 (Wednesday, October 21, 2015)]
[Notices]
[Pages 63855-63857]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-26678]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76163; File No. SR-BYX-2015-44]

Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Adopt
Rule 2.4, Mandatory Participation in Testing of Backup Systems

October 15, 2015.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 2, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or
``BYX'') 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange filed a proposal to adopt business continuity and
disaster recovery plans (``BC/DR plans'') testing requirements for
certain Exchange Members \5\ in connection with Regulation Systems
Compliance and Integrity (``Regulation SCI''), as further described
below.\6\
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\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
\6\ See Securities Exchange Act Release No. 73639 (November 19,
2014), 79 FR 72252 (December 5, 2014) (``SCI Adopting Release'').
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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 parts of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
As adopted by the Commission, Regulation SCI applies to certain
self-regulatory organizations (including the Exchange), alternative
trading systems (``ATSs''), plan processors, and exempt clearing
agencies (collectively, ``SCI entities''), and will require these SCI
entities to comply with requirements with respect to the automated
systems central to the performance of their regulated activities. Among
the requirements of Regulation SCI is Rule 1001(a)(2)(v), which
requires the Exchange and other SCI entities to maintain ``[b]usiness
continuity and disaster recovery plans that include maintaining backup
and recovery capabilities sufficiently resilient and geographically
diverse and that are reasonably designed to achieve next business day
resumption of trading and two-hour resumption of critical SCI systems
following a wide-scale disruption.'' \7\ The Exchange takes pride in
the reliability and availability of its systems. Historically, Exchange
systems have been up and available more than 99.9% of the time; yet as
a precaution, the Exchange has put extensive time and resources toward
planning for system failures and already maintains robust BC/DR plans
consistent with the Rule. As set forth below, in connection with
Regulation SCI, the Exchange is proposing to require certain Members to
participate in testing of the operation of the Exchange's BC/DR plans.
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\7\ 17 CFR 242.1001(a)(2)(v).
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With respect to an SCI entity's BC/DR plans, including its backup
systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI
entity to: ``[e]stablish standards for the designation of those members
or participants that the SCI entity reasonably determines are, taken as
a whole, the minimum necessary for the maintenance of fair and orderly
markets in the event of the activation of such plans.'' \8\ Paragraph
(b) of Rule 1004 further requires each SCI entity to ``[d]esignate
members or participants pursuant to the standards established in
paragraph (a) of [Rule 1004] and require participation by such
designated members or participants in scheduled functional and
performance testing of the operation of such plans, in the manner and
frequency specified by the SCI entity, provided that such frequency
shall not be less than once every 12 months.'' \9\ In order to comply
with Rule 1004 of Regulation SCI, the Exchange proposes to adopt Rule
2.4, governing mandatory participation in testing of Exchange backup
systems, as described below. The Exchange proposes to delete current
Rule 2.4 in its entirety because such rule was applicable to a waive-in
process offered by the Exchange when it commenced operations and is now
obsolete.
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\8\ 17 CFR 242.1004(a).
\9\ 17 CFR 242.1004(b).
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First, in paragraph (a) of Rule 2.4, the Exchange proposes to
include language from paragraph (a) of Rule 1004 of Regulation SCI to
summarize the Exchange's obligation pursuant to such rule.
Specifically, the Exchange proposes to state that ``[p]ursuant to
Regulation SCI and with respect to the Exchange's business continuity
and disaster recovery plans, including its backup systems, the Exchange
is required to establish standards for the designation of Members that
the Exchange reasonably determines are, taken as a whole, the minimum
necessary for the maintenance of fair and orderly markets in the event
of the activation of such plans.'' The Exchange further proposes that
paragraph (a) indicate that the ``Exchange has established standards
and will designate Members according to those standards'' as set forth
in the proposed Rule. In addition, the Exchange proposes to make clear
that all Members are permitted to connect to the Exchange's backup
systems as well as to participate in testing of such systems. Proposed
paragraph (a) is consistent with the Commission's adoption of
Regulation SCI, which encouraged ``SCI entities to permit non-
designated members or

[[Page 63856]]

participants to participate in the testing of the SCI entity's BC/DR
plans if they request to do so.'' \10\
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\10\ See SCI Adopting Release, supra note 6 at 72350.
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Second, in paragraph (b) of Rule 2.4, the Exchange proposes to
specify the criteria that will result in a Member receiving a
designation requiring it to connect to the Exchange's backup systems
and to participate in functional and performance testing as announced
by the Exchange, which shall occur at least once every 12 months.
Specifically, proposed paragraph (b) would require all Members that
account for a meaningful percentage of the Exchange's volume to connect
to the Exchange's backup systems and to participate in functional and
performance testing.
The Exchange notes that it encourages all Members to connect to the
Exchange's backup systems and to participate in testing of such
systems. In fact, the Exchange provides logical ports free of charge to
all Members that connect to Exchange backup systems in order to help
reduce the economic burden of maintaining connectivity to Exchange
backup systems. However, in adopting the requirements of Rule 2.4(b),
including both the requirement to maintain connectivity to Exchange
backup systems and to participate in mandatory testing of such systems,
the Exchange intends to subject to the Rule only those Members that the
Exchange believes are necessary to maintain fair and orderly markets at
the Exchange. The Exchange believes that designating Members to
participate in mandatory testing because they account for a meaningful
percentage of the Exchange's overall volume is a reasonable means to
ensure the maintenance of a fair and orderly market on the Exchange.
In addition to paragraphs (a) and (b) described above, the Exchange
also proposes to adopt Interpretation and Policy .01, which would
provide additional detail regarding the notice that will be provided to
Members that have been designated pursuant to subparagraph (b) of the
Rule as well as the Exchange's method for measuring the volume
threshold. As proposed, Interpretation and Policy .01 would state that
for purposes of identifying Members that account for a meaningful
percentage of the Exchange's overall volume, the Exchange will measure
volume executed on the Exchange on a quarterly basis. The percentage of
volume that the Exchange considers to be meaningful for purposes of
this Interpretation and Policy .01 will be determined by the Exchange
and will be published in a circular distributed to Members. The
Exchange will publish the first circular consistent with this proposal
prior to the Regulation SCI compliance date of November 3, 2015. The
proposed Interpretation and Policy would also require the Exchange to
notify individual Members quarterly that are subject to proposed
paragraph (b) based on the prior calendar quarter's volume. Finally, as
proposed, if a Member has not previously been subject to the
requirements of proposed paragraph (b), then such Member would have
until the next calendar quarter before such requirements are
applicable. The Exchange believes the proposed notice requirements are
necessary to provide Members with proper advance notice in the event
they become subject to proposed Rule 2.4(b). The proposed timeframes
would also provide Members with adequate time to become compliant with
such Rule due to the necessary infrastructure changes it may take to
connect to the Exchange's backup systems for a Member that is not
already connected.
2. Statutory Basis
The Exchange believes that its proposal is consistent with section
6(b) of the Act \11\ in general, and furthers the objectives of section
6(b)(5) of the Act \12\ in particular, in that 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 proposal will ensure that the Members necessary to ensure
the maintenance of a fair an orderly market are properly designated
consistent with Rule 1004 of Regulation SCI. Specifically, the proposal
will adopt criteria with respect to the designation of Members that are
required to participate in the testing of the Exchange's BC/DR plans,
as well as appropriate notification regarding such designation. As set
forth in the SCI Adopting Release, ``SROs have the authority, and legal
responsibility, under section 6 of the Exchange Act, to adopt and
enforce rules (including rules to comply with Regulation SCI's
requirements relating to BC/DR testing) applicable to their members or
participants that are designed to, among other things, foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, 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.'' \13\ The Exchange believes that this proposal is consistent
with such authority and legal responsibility.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
\13\ See SCI Adopting Release, supra note 6 at 72350.
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B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the proposal
is not a competitive proposal but rather is necessary for the
Exchange's compliance with Regulation SCI.

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.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4.
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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

[[Page 63857]]

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 proposal is
consistent with the Act. Comments may be submitted by any of the
following methods:

Electronic Comments

Use 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 No. SR-BYX-2015-44 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 No. SR-BYX-2015-44. 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 will also 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 No. SR-BYX-2015-44 and should be
submitted on or before November 12, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-26678 Filed 10-20-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 203 / Wednesday, October 21, 2015 / Notices 63855

submitted on or before November 12, The text of the proposed rule change With respect to an SCI entity’s BC/DR
2015. is available at the Exchange’s Web site plans, including its backup systems,
For the Commission, by the Division of at www.batstrading.com, at the paragraph (a) of Rule 1004 of Regulation
Trading and Markets, pursuant to delegated principal office of the Exchange, and at SCI requires each SCI entity to:
authority.13 the Commission’s Public Reference ‘‘[e]stablish standards for the
Robert W. Errett, Room. designation of those members or
Deputy Secretary. participants that the SCI entity
II. Self-Regulatory Organization’s reasonably determines are, taken as a
[FR Doc. 2015–26676 Filed 10–20–15; 8:45 am] Statement of the Purpose of, and whole, the minimum necessary for the
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule maintenance of fair and orderly markets
Change in the event of the activation of such
SECURITIES AND EXCHANGE In its filing with the Commission, the plans.’’ 8 Paragraph (b) of Rule 1004
COMMISSION Exchange included statements further requires each SCI entity to
concerning the purpose of and basis for ‘‘[d]esignate members or participants
the proposed rule change and discussed pursuant to the standards established in
[Release No. 34–76163; File No. SR–BYX–
2015–44]
any comments it received on the paragraph (a) of [Rule 1004] and require
proposed rule change. The text of these participation by such designated
Self-Regulatory Organizations; BATS statements may be examined at the members or participants in scheduled
Y-Exchange, Inc.; Notice of Filing and places specified in Item IV below. The functional and performance testing of
Immediate Effectiveness of a Proposed Exchange has prepared summaries, set the operation of such plans, in the
Rule Change to Adopt Rule 2.4, forth in sections A, B, and C below, of manner and frequency specified by the
Mandatory Participation in Testing of the most significant parts of such SCI entity, provided that such frequency
Backup Systems statements. shall not be less than once every 12
months.’’ 9 In order to comply with Rule
October 15, 2015. A. Self-Regulatory Organization’s 1004 of Regulation SCI, the Exchange
Pursuant to section 19(b)(1) of the Statement of the Purpose of, and proposes to adopt Rule 2.4, governing
Securities Exchange Act of 1934 (the Statutory Basis for, the Proposed Rule mandatory participation in testing of
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Change Exchange backup systems, as described
notice is hereby given that on October 1. Purpose below. The Exchange proposes to delete
2, 2015, BATS Y-Exchange, Inc. (the current Rule 2.4 in its entirety because
As adopted by the Commission, such rule was applicable to a waive-in
‘‘Exchange’’ or ‘‘BYX’’) filed with the
Regulation SCI applies to certain self- process offered by the Exchange when it
Securities and Exchange Commission
regulatory organizations (including the commenced operations and is now
(‘‘Commission’’) the proposed rule
Exchange), alternative trading systems obsolete.
change as described in Items I and II
(‘‘ATSs’’), plan processors, and exempt First, in paragraph (a) of Rule 2.4, the
below, which Items have been prepared
clearing agencies (collectively, ‘‘SCI Exchange proposes to include language
by the Exchange. The Exchange has
entities’’), and will require these SCI from paragraph (a) of Rule 1004 of
designated this proposal as a ‘‘non-
entities to comply with requirements Regulation SCI to summarize the
controversial’’ proposed rule change
with respect to the automated systems Exchange’s obligation pursuant to such
pursuant to section 19(b)(3)(A) of the
central to the performance of their rule. Specifically, the Exchange
Act 3 and Rule 19b–4(f)(6)(iii)
regulated activities. Among the proposes to state that ‘‘[p]ursuant to
thereunder,4 which renders it effective
requirements of Regulation SCI is Rule Regulation SCI and with respect to the
upon filing with the Commission. The
1001(a)(2)(v), which requires the Exchange’s business continuity and
Commission is publishing this notice to
Exchange and other SCI entities to disaster recovery plans, including its
solicit comments on the proposed rule
maintain ‘‘[b]usiness continuity and backup systems, the Exchange is
change from interested persons.
disaster recovery plans that include required to establish standards for the
I. Self-Regulatory Organization’s maintaining backup and recovery designation of Members that the
Statement of the Terms of Substance of capabilities sufficiently resilient and Exchange reasonably determines are,
the Proposed Rule Change geographically diverse and that are taken as a whole, the minimum
The Exchange filed a proposal to reasonably designed to achieve next necessary for the maintenance of fair
adopt business continuity and disaster business day resumption of trading and and orderly markets in the event of the
recovery plans (‘‘BC/DR plans’’) testing two-hour resumption of critical SCI activation of such plans.’’ The Exchange
requirements for certain Exchange systems following a wide-scale further proposes that paragraph (a)
Members 5 in connection with disruption.’’ 7 The Exchange takes pride indicate that the ‘‘Exchange has
Regulation Systems Compliance and in the reliability and availability of its established standards and will designate
Integrity (‘‘Regulation SCI’’), as further systems. Historically, Exchange systems Members according to those standards’’
described below.6 have been up and available more than as set forth in the proposed Rule. In
99.9% of the time; yet as a precaution, addition, the Exchange proposes to
13 17
the Exchange has put extensive time make clear that all Members are
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
and resources toward planning for permitted to connect to the Exchange’s
2 17 CFR 240.19b–4. system failures and already maintains backup systems as well as to participate
3 15 U.S.C. 78s(b)(3)(A). robust BC/DR plans consistent with the in testing of such systems. Proposed
tkelley on DSK3SPTVN1PROD with NOTICES

4 17 CFR 240.19b–4(f)(6)(iii). Rule. As set forth below, in connection paragraph (a) is consistent with the
5 The term ‘‘Member’’ is defined as ‘‘any with Regulation SCI, the Exchange is Commission’s adoption of Regulation
registered broker or dealer that has been admitted proposing to require certain Members to SCI, which encouraged ‘‘SCI entities to
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
participate in testing of the operation of permit non-designated members or
6 See Securities Exchange Act Release No. 73639 the Exchange’s BC/DR plans.
8 17 CFR 242.1004(a).
(November 19, 2014), 79 FR 72252 (December 5,
2014) (‘‘SCI Adopting Release’’). 7 17 CFR 242.1001(a)(2)(v). 9 17 CFR 242.1004(b).

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Federal Register / Vol. 80, No. 203 / Wednesday, October 21, 2015 / Notices 63857

furtherance of the purposes of the Act. For the Commission, by the Division of the Commission’s Public Reference
If the Commission takes such action, the Trading and Markets, pursuant to delegated Room.
Commission shall institute proceedings authority.16
Robert W. Errett, II. Self-Regulatory Organization’s
to determine whether the proposed rule
Deputy Secretary. Statement of the Purpose of, and
should be approved or disapproved.
[FR Doc. 2015–26678 Filed 10–20–15; 8:45 am]
Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Change
BILLING CODE 8011–01–P
Interested persons are invited to In its filing with the Commission, the
submit written data, views and Exchange included statements
arguments concerning the foregoing, SECURITIES AND EXCHANGE concerning the purpose of and basis for
including whether the proposal is COMMISSION the proposed rule change and discussed
consistent with the Act. Comments may [Release No. 34–76164; File No. SR–EDGX– any comments it received on the
be submitted by any of the following 2015–45] proposed rule change. The text of these
methods: statements may be examined at the
Self-Regulatory Organizations; EDGX places specified in Item IV below. The
Electronic Comments Exchange, Inc.; Notice of Filing and Exchange has prepared summaries, set
• Use the Commission’s Internet Immediate Effectiveness of a Proposed forth in Sections A, B, and C below, of
comment form (http://www.sec.gov/ Rule Change To Adopt Rule 2.4, the most significant parts of such
rules/sro.shtml); or Mandatory Participation in Testing of statements.
Backup Systems
• Send an email to rule-comments@ A. Self-Regulatory Organization’s
sec.gov. Please include File No. SR– October 15, 2015. Statement of the Purpose of, and
BYX–2015–44 on the subject line. Pursuant to Section 19(b)(1) of the Statutory Basis for, the Proposed Rule
Securities Exchange Act of 1934 (the Change
Paper Comments
‘‘Act’’),1 and Rule 19b–4 thereunder,2
1. Purpose
• Send paper comments in triplicate notice is hereby given that on October
to Secretary, Securities and Exchange 2, 2015, EDGX Exchange, Inc. (the As adopted by the Commission,
Commission, 100 F Street NE., ‘‘Exchange’’ or ‘‘EDGX’’) filed with the Regulation SCI applies to certain self-
Washington, DC 20549–1090. Securities and Exchange Commission regulatory organizations (including the
(‘‘Commission’’) the proposed rule Exchange), alternative trading systems
All submissions should refer to File No. change as described in Items I and II (‘‘ATSs’’), plan processors, and exempt
SR–BYX–2015–44. This file number below, which Items have been prepared clearing agencies (collectively, ‘‘SCI
should be included on the subject line by the Exchange. The Exchange has entities’’), and will require these SCI
if email is used. To help the designated this proposal as a ‘‘non- entities to comply with requirements
Commission process and review your controversial’’ proposed rule change with respect to the automated systems
comments more efficiently, please use pursuant to Section 19(b)(3)(A) of the central to the performance of their
only one method. The Commission will Act 3 and Rule 19b–4(f)(6)(iii) regulated activities. Among the
post all comments on the Commission’s thereunder,4 which renders it effective requirements of Regulation SCI is Rule
Internet Web site (http://www.sec.gov/ upon filing with the Commission. The 1001(a)(2)(v), which requires the
rules/sro.shtml). Copies of the Commission is publishing this notice to Exchange and other SCI entities to
submission, all subsequent solicit comments on the proposed rule maintain ‘‘[b]usiness continuity and
amendments, all written statements change from interested persons. disaster recovery plans that include
with respect to the proposed rule maintaining backup and recovery
change that are filed with the I. Self-Regulatory Organization’s
Statement of the Terms of Substance of capabilities sufficiently resilient and
Commission, and all written geographically diverse and that are
communications relating to the the Proposed Rule Change
reasonably designed to achieve next
proposed rule change between the The Exchange filed a proposal to business day resumption of trading and
Commission and any person, other than adopt business continuity and disaster two-hour resumption of critical SCI
those that may be withheld from the recovery plans (‘‘BC/DR plans’’) testing systems following a wide-scale
public in accordance with the requirements for certain Exchange disruption.’’ 7 The Exchange takes pride
provisions of 5 U.S.C. 552, will be Members 5 in connection with in the reliability and availability of its
available for Web site viewing and Regulation Systems Compliance and systems. Historically, Exchange systems
printing in the Commission’s Public Integrity (‘‘Regulation SCI’’), as further have been up and available more than
Reference Room, 100 F Street NE., described below.6 99.9% of the time; yet as a precaution,
Washington, DC 20549, on official The text of the proposed rule change the Exchange has put extensive time
business days between the hours of is available at the Exchange’s Web site and resources toward planning for
10:00 a.m. and 3:00 p.m. Copies of such at www.batstrading.com, at the system failures and already maintains
filing will also be available for principal office of the Exchange, and at robust BC/DR plans consistent with the
inspection and copying at the principal Rule. As set forth below, in connection
16 17 CFR 200.30–3(a)(12).
office of the Exchange. All comments with Regulation SCI, the Exchange is
1 15 U.S.C. 78s(b)(1).
received will be posted without change; 2 17 CFR 240.19b–4. proposing to require certain Members to
the Commission does not edit personal 3 15 U.S.C. 78s(b)(3)(A). participate in testing of the operation of
identifying information from
tkelley on DSK3SPTVN1PROD with NOTICES

4 17 CFR 240.19b–4(f)(6)(iii). the Exchange’s BC/DR plans.
submissions. You should submit only 5 The term ‘‘Member’’ is defined as ‘‘any With respect to an SCI entity’s BC/DR
information that you wish to make registered broker or dealer that has been admitted plans, including its backup systems,
available publicly. All submissions to membership in the Exchange.’’ See Exchange
paragraph (a) of Rule 1004 of Regulation
should refer to File No. SR–BYX–2015– Rule 1.5(n).
6 See Securities Exchange Act Release No. 73639 SCI requires each SCI entity to:
44 and should be submitted on or before (November 19, 2014), 79 FR 72252 (December 5,
November 12, 2015. 2014) (‘‘SCI Adopting Release’’). 7 17 CFR 242.1001(a)(2)(v).

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Document Created: 2018-02-27 08:53:56
Document Modified: 2018-02-27 08:53:56

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 63855