80 FR 66097 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Rule 21.17, Exchange Sharing of User Designated Risk Settings
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 208 (October 28, 2015)
Federal Register Volume 80, Issue 208 (October 28, 2015)
| Page Range | 66097-66099 | |
| FR Document | 2015-27354 |
[Federal Register Volume 80, Number 208 (Wednesday, October 28, 2015)] [Notices] [Pages 66097-66099] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-27354] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76234; File No. SR-EDGX-2015-47] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Rule 21.17, Exchange Sharing of User Designated Risk Settings October 22, 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 14, 2015, EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') 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\ 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). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to authorize the Exchange's equity options platform (``EDGX Options'') to share a User's \5\ risk settings with the Clearing Member \6\ that clears transactions on behalf of the User. --------------------------------------------------------------------------- \5\ A User is defined as ``any Options member or Sponsored Participant who is authorized to obtain access to the System pursuant to Rule 11.3 (Access).'' See Exchange Rule 16.1(a)(63). \6\ A Clearing Member is defined as ``an Options Member that is self-clearing or an Options Member that clears EDGX Options Transactions for other Members of EDGX Options.'' See Exchange Rule 16.1(a)(15). --------------------------------------------------------------------------- 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 The Exchange is proposing to adopt new Rule 21.17, Exchange Sharing of User Designated Risk Settings, in order to authorize the Exchange to share any of a User's risk settings with the Clearing Member that clears transactions on behalf of the User. The Exchange notes that the proposed rule is based on and identical to BATS Exchange, Inc. (``BATS'') Rule 21.17, which is applicable to the equity options platform operated by BATS (``BATS Options''). Under Exchange Rule 17.2(b), Options Members \7\ must be Clearing Members or establish a clearing arrangement with a Clearing Member. Rule 21.13(a) provides that every Clearing Member is responsible for the clearance of EDGX Options Transactions \8\ of such Clearing Member and of each User that gives up such Clearing Member's name pursuant to a letter of authorization, letter of guarantee, or other authorization given by such Clearing Member to such User, which authorization must be submitted to the Exchange. Further, no Options Member may make any transactions on the Exchange unless a letter of guarantee providing that the issuing Clearing Member accepts financial responsibilities for all EDGX Options Transactions made by the Options Member (a ``Letter of Guarantee'') has been issued for such Options Member by a Clearing Member and filed with the Exchange. --------------------------------------------------------------------------- \7\ An Options Member is defined as ``a firm, or organization that is registered with the Exchange pursuant to Chapter XVII of these Rules for purposes of participating in options trading on EDGX Options as an `Options Order Entry Firm' or `Options Market Maker.' '' See Exchange Rule 16.1(a)(38). \8\ An EDGX Options Transactions is defined as ``a transaction involving an options contract that is effected on or through EDGX Options or its facilities or systems.'' See Exchange Rule 16.1(a)(11). --------------------------------------------------------------------------- Thus, while not all Options Members are Clearing Members, all Options Members require a Clearing Member's consent to clear transactions on their behalf (or on behalf of any Sponsored Participants \9\ for which the Options Member is a Sponsoring Member \10\) in order to conduct business on the Exchange. Each Options Member that transacts through a Clearing Member on the Exchange executes a Letter of Guarantee which codifies the relationship between the Options Member and the Clearing Member and provides the Exchange with notice of which Clearing Members have relationships with which Options Members. The Clearing Member that guarantees the Options Member's transactions on the Exchange has a financial interest in understanding the risk tolerance of the Options Member. The proposal would provide the Exchange with authority to directly provide Clearing Members with information that may otherwise be available to such Clearing Members by virtue of their relationship with the respective Users. --------------------------------------------------------------------------- \9\ A Sponsored Participant is defined as ``a person which has entered into a sponsorship arrangement with a Sponsoring Member pursuant to Rule 11.3.'' See Exchange Rule 1.5(z). \10\ A Sponsoring Member is defined as ``a Member that is a registered broker-dealer and that has been designated by a Sponsored Participant to execute, clear and settle transactions resulting from the System. The Sponsoring Member shall be either (i) a clearing firm with membership in a clearing agency registered with the Commission that maintains facilities through which transactions may be cleared or (ii) a correspondent firm with a clearing arrangement with any such clearing firm.'' See Exchange Rule 1.5(aa). --------------------------------------------------------------------------- At this time, the risk settings covered by this proposal are set forth in Rule 21.16, entitled Risk Monitor Mechanism.\11\ The Exchange may adopt additional rules providing for Options Member designated risk settings other than those provided in Rule 21.16 that could be shared with an Options Member's Clearing Member under the proposal and the Exchange would announce these additional risk settings by issuing a Trade Desk Notice. --------------------------------------------------------------------------- \11\ See Exchange Rule 21.16. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal 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 [[Page 66098]] Act.\12\ In particular, the proposal is consistent with Section 6(b)(5) of the Act \13\ because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in 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. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The proposed rule change will allow the Exchange to directly provide an Options Member's designated risk settings to the Clearing Member that clears trades on behalf of the Options Member. Because a Clearing Member that executes a clearing Letter of Guarantee on behalf of an Options Member guarantees all transactions of that Options Member, and therefore bears the risk associated with those transactions, it is appropriate for the Clearing Member to have knowledge of what risk settings the Options Member may utilize within the Trading System.\14\ The proposal will permit Clearing Members who have a financial interest in the risk settings of Options Members with whom the Clearing Participant has entered into a Letter of Guarantee to better monitor and manage the potential risks assumed by Clearing Members, thereby providing Clearing Members with greater control and flexibility over setting their own risk tolerance and exposure and aiding Clearing Members in complying with the Act. To the extent a Clearing Member might reasonably require an Options Member to provide access to its risk setting as a prerequisite to continuing to clear trades on the Options Member's behalf, the Exchange's proposal to share those risk settings directly reduces the administrative burden on Options Members and ensures that Clearing Members are receiving information that is up to date and conforms to the settings active in the Trading System. --------------------------------------------------------------------------- \14\ Trading System is defined as ``the automated trading system used by EDGX Options for the trading of options contracts.'' See Exchange Rule 16.1(a)(59). --------------------------------------------------------------------------- (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 that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not designed to address any competitive issues and does not pose an undue burden on non-Clearing Members because, unlike Clearing Members, non-Clearing Members do not guarantee the execution of an Options Member's transactions on the Exchange. The proposal is structured to offer the same enhancement to all Clearing Members, regardless of size, and would not impose a competitive burden on any Options Member. Any Options Member that does not wish to share its designated risk settings with its Clearing Member could avoid sharing such settings by becoming a Clearing Member. (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. 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 \15\ and paragraph (f)(6) of Rule 19b-4 thereunder.\16\ Consequently, because the foregoing 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, it has become effective pursuant to Section 19(b)(3)(A) of the Act \17\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\18\ --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 17 CFR 240.19b-4. \17\ 15 U.S.C. 78s(b)(3)(A). \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally does not become operative for 30 days after the date of filing. However, Rule 19b-4(f)(6)(iii) \20\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. Waiver of the 30-day operative delay would permit the Exchange to allow Clearing Members to monitor and manage the potential risks assumed by Options Members upon the commencement of the operations of EDGX Options which is scheduled for November 2, 2015. The Exchange notes that this functionality is already available on other exchanges. Based on the foregoing, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest.\21\ The Commission hereby grants the Exchange's request and designates the proposal operative upon filing. --------------------------------------------------------------------------- \19\ 17 CFR 240.19b-4(f)(6). \20\ 17 CFR 240.19b-4(f)(6)(iii). \21\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (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 proposal is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File No. SR-EDGX-2015-47 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-EDGX-2015-47. 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 [[Page 66099]] 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 Number SR-EDGX-2015-47 and should be submitted on or before November 18, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-27354 Filed 10-27-15; 8:45 am] BILLING CODE 8011-01-P
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For the Commission, by the Division of the Commission’s Public Reference Member (a ‘‘Letter of Guarantee’’) has
Trading and Markets, pursuant to delegated Room. been issued for such Options Member
authority.16 by a Clearing Member and filed with the
Brent J. Fields, II. Self-Regulatory Organization’s
Exchange.
Secretary. Statement of the Purpose of, and
Thus, while not all Options Members
Statutory Basis for, the Proposed Rule
[FR Doc. 2015–27350 Filed 10–27–15; 8:45 am] are Clearing Members, all Options
Change
BILLING CODE 8011–01–P Members require a Clearing Member’s
In its filing with the Commission, the consent to clear transactions on their
Exchange included statements behalf (or on behalf of any Sponsored
SECURITIES AND EXCHANGE concerning the purpose of and basis for Participants 9 for which the Options
COMMISSION the proposed rule change and discussed Member is a Sponsoring Member 10) in
[Release No. 34–76234; File No. SR–EDGX–
any comments it received on the order to conduct business on the
2015–47] proposed rule change. The text of these Exchange. Each Options Member that
statements may be examined at the transacts through a Clearing Member on
Self-Regulatory Organizations; EDGX places specified in Item IV below. The the Exchange executes a Letter of
Exchange, Inc.; Notice of Filing and Exchange has prepared summaries, set Guarantee which codifies the
Immediate Effectiveness of a Proposed forth in Sections A, B, and C below, of relationship between the Options
Rule Change To Adopt Rule 21.17, the most significant parts of such Member and the Clearing Member and
Exchange Sharing of User Designated statements. provides the Exchange with notice of
Risk Settings (A) Self-Regulatory Organization’s which Clearing Members have
Statement of the Purpose of, and relationships with which Options
October 22, 2015.
Statutory Basis for, the Proposed Rule Members. The Clearing Member that
Pursuant to Section 19(b)(1) of the
Change guarantees the Options Member’s
Securities Exchange Act of 1934 (the
transactions on the Exchange has a
‘‘Act’’),1 and Rule 19b–4 thereunder,2 1. Purpose financial interest in understanding the
notice is hereby given that on October
The Exchange is proposing to adopt risk tolerance of the Options Member.
14, 2015, EDGX Exchange, Inc. (the
new Rule 21.17, Exchange Sharing of The proposal would provide the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
User Designated Risk Settings, in order Exchange with authority to directly
Securities and Exchange Commission
to authorize the Exchange to share any provide Clearing Members with
(‘‘Commission’’) the proposed rule
of a User’s risk settings with the information that may otherwise be
change as described in Items I and II
Clearing Member that clears available to such Clearing Members by
below, which Items have been prepared
transactions on behalf of the User. The virtue of their relationship with the
by the Exchange. The Exchange has
Exchange notes that the proposed rule is respective Users.
designated this proposal as a ‘‘non-
based on and identical to BATS At this time, the risk settings covered
controversial’’ proposed rule change
Exchange, Inc. (‘‘BATS’’) Rule 21.17, by this proposal are set forth in Rule
pursuant to Section 19(b)(3)(A) of the
which is applicable to the equity 21.16, entitled Risk Monitor
Act3 and Rule 19b–4(f)(6)(iii)
options platform operated by BATS Mechanism.11 The Exchange may adopt
thereunder,4 which renders it effective
(‘‘BATS Options’’). additional rules providing for Options
upon filing with the Commission. The
Under Exchange Rule 17.2(b), Options Member designated risk settings other
Commission is publishing this notice to
Members 7 must be Clearing Members or than those provided in Rule 21.16 that
solicit comments on the proposed rule
establish a clearing arrangement with a could be shared with an Options
change from interested persons.
Clearing Member. Rule 21.13(a) Member’s Clearing Member under the
I. Self-Regulatory Organization’s provides that every Clearing Member is proposal and the Exchange would
Statement of the Terms of Substance of responsible for the clearance of EDGX announce these additional risk settings
the Proposed Rule Change Options Transactions 8 of such Clearing by issuing a Trade Desk Notice.
The Exchange filed a proposal to Member and of each User that gives up 2. Statutory Basis
authorize the Exchange’s equity options such Clearing Member’s name pursuant
platform (‘‘EDGX Options’’) to share a to a letter of authorization, letter of The Exchange believes that its
User’s 5 risk settings with the Clearing guarantee, or other authorization given proposal is consistent with the
Member 6 that clears transactions on by such Clearing Member to such User, requirements of the Act and the rules
behalf of the User. which authorization must be submitted and regulations thereunder that are
The text of the proposed rule change to the Exchange. Further, no Options applicable to a national securities
is available at the Exchange’s Web site Member may make any transactions on exchange, and, in particular, with the
at www.batstrading.com, at the the Exchange unless a letter of guarantee requirements of Section 6(b) of the
principal office of the Exchange, and at providing that the issuing Clearing
9 A Sponsored Participant is defined as ‘‘a person
Member accepts financial
which has entered into a sponsorship arrangement
16 17 CFR 200.30–3(a)(12). responsibilities for all EDGX Options with a Sponsoring Member pursuant to Rule 11.3.’’
1 15 U.S.C. 78s(b)(1). Transactions made by the Options See Exchange Rule 1.5(z).
2 17 CFR 240.19b–4.
10 A Sponsoring Member is defined as ‘‘a Member
3 15 U.S.C. 78s(b)(3)(A). 7 An Options Member is defined as ‘‘a firm, or that is a registered broker-dealer and that has been
4 17 CFR 240.19b–4(f)(6)(iii).
organization that is registered with the Exchange designated by a Sponsored Participant to execute,
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5 A User is defined as ‘‘any Options member or pursuant to Chapter XVII of these Rules for clear and settle transactions resulting from the
Sponsored Participant who is authorized to obtain purposes of participating in options trading on System. The Sponsoring Member shall be either (i)
access to the System pursuant to Rule 11.3 EDGX Options as an ‘Options Order Entry Firm’ or a clearing firm with membership in a clearing
(Access).’’ See Exchange Rule 16.1(a)(63). ‘Options Market Maker.’ ’’ See Exchange Rule agency registered with the Commission that
6 A Clearing Member is defined as ‘‘an Options 16.1(a)(38). maintains facilities through which transactions may
Member that is self-clearing or an Options Member 8 An EDGX Options Transactions is defined as ‘‘a be cleared or (ii) a correspondent firm with a
that clears EDGX Options Transactions for other transaction involving an options contract that is clearing arrangement with any such clearing firm.’’
Members of EDGX Options.’’ See Exchange Rule effected on or through EDGX Options or its facilities See Exchange Rule 1.5(aa).
16.1(a)(15). or systems.’’ See Exchange Rule 16.1(a)(11). 11 See Exchange Rule 21.16.
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only one method. The Commission will SECURITIES AND EXCHANGE II. Description of the Proposal
post all comments on the Commission’s COMMISSION The amendment proposes to extend
Internet Web site (http://www.sec.gov/ [Release No. 34–76244; File No. 4–631] the pilot period of the Plan from
rules/sro.shtml). Copies of the October 23, 2015 to April 22, 2016. In
submission, all subsequent Joint Industry Plan; Order Approving addition, on March 30, 2015, Chicago
amendments, all written statements the Ninth Amendment to the National Board Options Exchange, Incorporated
with respect to the proposed rule Market System Plan to Address (‘‘CBOE’’) provided written notice to the
change that are filed with the Extraordinary Market Volatility by Participants of CBOE’s intent to
Commission, and all written BATS Exchange, Inc., BATS Y- withdraw from the Plan. Notice of
communications relating to the Exchange, Inc., Chicago Board withdrawal was made pursuant to
proposed rule change between the Options Exchange, Incorporated, Section IX of the Plan. CBOE became a
Commission and any person, other than Chicago Stock Exchange, Inc., EDGA Participant due to the operation of its
those that may be withheld from the Exchange, Inc., EDGX Exchange, Inc., facility, the CBOE Stock Exchange, LLC
public in accordance with the Financial Industry Regulatory (‘‘CBSX’’), which engaged in NMS stock
provisions of 5 U.S.C. 552, will be Authority, Inc., NASDAQ OMX BX, Inc., transactions. The last day of trading on
available for Web site viewing and NASDAQ OMX PHLX LLC, The Nasdaq CBSX was April 30, 2014. Therefore,
Stock Market LLC, National Stock because CBOE no longer operates a
printing in the Commission’s Public
Exchange, Inc., New York Stock facility engaged in NMS stock
Reference Room, 100 F Street NE.,
Exchange LLC, NYSE MKT LLC, and transactions, CBOE would have no
Washington, DC 20549, on official NYSE Arca, Inc.
business days between the hours of additional NMS stock data to provide
nor any reason to avail itself of any
10:00 a.m. and 3:00 p.m. Copies of such October 22, 2015.
further right under the Plan.
filing will also be available for I. Introduction Accordingly, CBOE proposes to be
inspection and copying at the principal removed from the Plan.
office of the Exchange. All comments On July 31, 2015, New York Stock
received will be posted without change; Exchange LLC (‘‘NYSE’’), on behalf of III. Discussion and Commission
the following parties to the National Findings
the Commission does not edit personal
Market System Plan to Address
identifying information from The Commission finds that the
Extraordinary Market Volatility
submissions. You should submit only (‘‘Plan’’): BATS Exchange, Inc., BATS Y- amendment is consistent with the
information that you wish to make Exchange, Inc., Chicago Board Options requirements of the Act and the rules
available publicly. All submissions Exchange, Incorporated, Chicago Stock and regulations thereunder.
should refer to File Number SR–EDGX– Exchange, Inc., EDGA Exchange, Inc., Specifically, the Commission finds that
2015–47 and should be submitted on or EDGX Exchange, Inc., Financial the amendment is consistent with
before November 18, 2015. Industry Regulatory Authority, Inc., Section 11A of the Act 6 and Rule 608
NASDAQ OMX BX, Inc., NASDAQ thereunder 7 in that it is appropriate in
For the Commission, by the Division of
OMX PHLX LLC, the Nasdaq Stock the public interest, for the protection of
Trading and Markets, pursuant to delegated
Market LLC, National Stock Exchange, investors and the maintenance of fair
authority.22
Inc., NYSE MKT LLC, and NYSE Arca, and orderly markets, and that it removes
Brent J. Fields, impediments to, and perfects the
Inc. (collectively with NYSE, the
Secretary. mechanism of, a national market
‘‘Participants’’), filed with the Securities
[FR Doc. 2015–27354 Filed 10–27–15; 8:45 am]
and Exchange Commission system.
BILLING CODE 8011–01–P (‘‘Commission’’) pursuant to Section Pursuant to the Plan, the Participants
11A of the Securities Exchange Act of are required to provide the Commission
1934 (‘‘Act’’) 1 and Rule 608 with certain assessments relating to the
impact of the Plan and the calibration of
thereunder,2 a proposal to amend the
the Percentage Parameters.8 On
Plan.3 The proposal represents the ninth
September 29, 2014, the Participants
amendment to the Plan, and reflects
submitted a Participant Impact
proposed changes unanimously
Assessment,9 which provided the
approved by the Participants. The
amendment was published for comment Commission with the Participants’
in the Federal Register on September initial observations in each area
18, 2015.4 The Commission received required to be addressed under
Appendix B to the Plan. On May 28,
one comment letter regarding the
2015, the Participants submitted a
amendment.5 This order approves the
Supplemental Joint Assessment, in
amendment to the Plan.
which the Participants provided
1 15 U.S.C. 78k–1. additional analysis required under
2 17 CFR 242.608.
3 See Letter from Elizabeth King, General Counsel, on August 24, 2015 prior to making the Plan
NYSE, to Brent Fields, Secretary, Commission, permanent. In addition, IEX identified other areas
dated July 31, 2015 (‘‘Transmittal Letter’’). for the Commission to consider, such as SRO
mstockstill on DSK4VPTVN1PROD with NOTICES
4 See Securities Exchange Act Release No. 75917 opening procedures, floor-based rules, and
(September 14, 2015), 80 FR 56515 (‘‘Notice’’). imbalance information, in relation to trading on
5 See Letter from Donald Bollerman, Head of August 24, 2015.
6 15 U.S.C. 78k–1.
Markets and Sales, IEX, to Brent Fields, Secretary,
7 17 CFR 242.608.
Commission, dated October 16, 2015 (‘‘IEX Letter’’).
8 See Appendix B.III of the Plan.
IEX did not comment on the proposals set forth in
the proposed amendment. In its comment letter, 9 See Joint SROs letter to Brent J. Fields,
IEX suggested that the Commission evaluate the Secretary, SEC, dated September 29, 2014
22 17 CFR 200.30–3(a)(12). operation of the Plan and the experience of trading (‘‘Participant Impact Assessment’’).
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Document Created: 2018-02-27 08:58:09
Document Modified: 2018-02-27 08:58:09
| 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 66097 |
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