80 FR 67828 - Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Provide Additional Details Regarding the Requirement that Members Participate in Annual Testing of Business Continuity and Disaster Recovery Plans
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 212 (November 3, 2015)
Federal Register Volume 80, Issue 212 (November 3, 2015)
| Page Range | 67828-67830 | |
| FR Document | 2015-27912 |
[Federal Register Volume 80, Number 212 (Tuesday, November 3, 2015)] [Notices] [Pages 67828-67830] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-27912] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76289; File No. SR-NSCC-2015-008] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Provide Additional Details Regarding the Requirement that Members Participate in Annual Testing of Business Continuity and Disaster Recovery Plans October 28, 2015. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') and Rule 19b-4 \2\ thereunder, notice is hereby given that on October 23, 2015, National Securities Clearing Corporation (``NSCC'') 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 NSCC. NSCC filed the proposed rule change pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(6) \4\ thereunder. The proposed rule change was 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). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of a change to NSCC's Rule 2B of the Rules and Procedures (``Rules'') of NSCC to provide additional details regarding the requirement that Members participate in annual testing of NSCC's business continuity and disaster recovery plans (``BCP Testing''), as more fully described below.\5\ --------------------------------------------------------------------------- \5\ Terms not otherwise defined herein have the meaning set forth in NSCC's Rules, available at http://www.dtcc.com/legal/rules-and-procedures.aspx. --------------------------------------------------------------------------- II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. (A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The proposed rule change would amend NSCC's Rule 2B (Ongoing Membership Requirements and Monitoring) to provide additional details regarding the requirement that NSCC Members participate in NSCC's annual BCP Testing. Currently, pursuant to Addendum B of the Rules, an applicant is qualified for membership with NSCC if it is ``able to satisfactorily communication with the Corporation and fulfill anticipated commitments to and meet the operational requirements of the Corporation with necessary promptness and accuracy and to conform to any condition and requirement that the Corporation reasonably deems necessary for its protection.'' \6\ Once a firm becomes a Member of NSCC, NSCC Rule 2B provides that Members may be required to fulfill certain operational testing requirements that may be imposed by NSCC to test and monitor the continuing operational capability of the Members.\7\ --------------------------------------------------------------------------- \6\ Addendum B, Section 1(C) of NSCC's Rules, supra, note 5. \7\ NSCC Rule 2B, Section 3, supra, note 5. --------------------------------------------------------------------------- Recently, the Commission promulgated Regulation Systems Compliance and Integrity (``Reg. SCI''), which requires NSCC to establish standards to designate members \8\ and requires participation by such designated members in scheduled BCP Testing with NSCC on an annual basis.\9\ Although NSCC already conducts annual BCP Testing with certain Members,\10\ NSCC is proposing to amend Rule 2B to further describe NSCC's requirement with respect to BCP Testing. --------------------------------------------------------------------------- \8\ 17 CFR 242.1004(a). In adopting Reg. SCI, the Commission determined not to require covered entities to notify the Commission of its designations or the standards that will be used in designating members, recognizing instead that each entity's standards, designations, and updates, if applicable, would be part of its records and, therefore, available to the Commission and its staff upon request. See Securities and Exchange Act Release No. 73639 (November 19, 2014), 79 FR 72252 (December 5, 2014) (File No. S7-01-13). \9\ 17 CFR 242.1004(a) and (b). \10\ NSCC Rule 2B, Section 3, supra, note 5. --------------------------------------------------------------------------- The proposed amendments to Rule 2B would increase transparency regarding BCP Testing, and ensure NSCC's practice with respect to such testing is consistent with Reg. SCI by setting forth NSCC's rights to: (i) Designate Members required to participate in BCP Testing using established standards; (ii) determine the scope and reporting of such BCP Testing; and (iii) require Members to comply with such BCP Testing within specified timeframes. In connection with these proposed amendments, NSCC would refine the factors that it currently uses to designate Members for BCP Testing. For example, while NSCC would continue to rely on activity-based thresholds to mandate participation with annual BCP Testing, NSCC would also take into account additional factors when designating firms for BCP Testing, including, but not limited to: (i) Significant operational issues of the Member during the past twelve months; and (ii) past performance of the Member with respect to BCP Testing. Members would be informed of the specific standards that would be used by NSCC, along with any updates or changes to these standards, which would be applied on a prospective basis, through established methods of communication between NSCC and its Members. Likewise, Members would be notified in advance that they have been designated to participate in BCP Testing for the upcoming year, and would be provided details concerning the nature of such testing as the particular test plans are determined. NSCC believes the proposed rule change would have no impact on NSCC Members relative to what Members are currently required to do. As described above, NSCC already requires certain Members to participate in BCP Testing on an annual basis. The proposed rule change would provide further clarity with respect to these requirements for consistency with Reg. SCI. [[Page 67829]] 2. Statutory Basis Section 17A(b)(3)(F) of the Act, requires, in part, that NSCC's Rules be designed to promote the prompt and accurate clearance and settlement of securities transactions and to protect investors and the public interest.\11\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- Rule 17Ad-22(d)(2), promulgated under the Act, requires NSCC to require that its Members have robust operational capacity to meet obligations arising from participation in the clearing agency, to monitory that its participation requirements are met on an ongoing basis, and to have participation requirements that are objective and publicly disclosed.\12\ Rule 17Ad-22(d)(4), promulgated under the Act, requires NSCC to identify sources of operational risk and minimize them through the development of appropriate systems, controls, and procedures, and have business continuity plans that allow for timely recovery of operations and fulfillment of the clearing agency's obligations.\13\ --------------------------------------------------------------------------- \12\ 17 CFR 240.17Ad-22(d)(2). \13\ 17 CFR 240.17Ad-22(d)(4). --------------------------------------------------------------------------- Rule 1004(a) and (b) of Reg. SCI requires NSCC to establish standards for the designation of those Members that NSCC 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 its business continuity and disaster recovery plans, and to designate Members pursuant to those standards and require participation by such designated Members in scheduled BCP Testing annually.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 242.1004(a) and (b). --------------------------------------------------------------------------- By facilitating the testing of how business continuity and disaster recovery plans function between NSCC and its Members during an emergency, the proposed rule change would facilitate the prompt and accurate clearance and settlement of securities transactions and protect investors and the public interest consistent with of the Act. The proposed rule change would provide additional details to NSCC's Rules regarding the requirement for Members to take part in its BCP Testing annually, strengthening its compliance with Rule 17Ad-22(d)(2) and (4).\15\ Further, the proposed rule change would foster the objectives of the Commission under Reg. SCI by helping to ensure resilient and available markets.\16\ --------------------------------------------------------------------------- \15\ 17 CFR 240.17Ad-22(d)(2) and (4). \16\ 17 CFR 242.1004(a) and (b). --------------------------------------------------------------------------- As such, NSCC believes that the proposed rule change is consistent with Section 17A(b)(3)(F) of the Act, Rule 17Ad-22(d)(2) and (d)(4), promulgated under the Act, and Rule 1004(a) and (b) of Reg. SCI, cited above. (B) Clearing Agency's Statement on Burden on Competition NSCC does not believe that the proposed rule change would impose any burden on competition because the proposed rule change would apply to all Members and only provides additional details regarding an existing requirement. (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were not and are not intended to be solicited with respect to the proposed rule change, and none have been received. III. Date of Effectiveness of the Proposed Rule Change, and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) \17\ of the Act and Rule 19b-4(f)(6) thereunder.\18\ --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A). \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires NSCC to give the Commission written notice of NSCC's 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 Commission deems this requirement to have been met. --------------------------------------------------------------------------- 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, pursuant to Rule 19b-4(f)(6)(iii) \20\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \19\ 17 CFR 240.19b-4(f)(6). \20\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- NSCC has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. According to NSCC, the proposed rule change does not present any novel or controversial issues. Rather, NSCC is merely providing additional details regarding BCP Testing requirements or adding provisions that are consistent with or required by Reg. SCI. Accordingly, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow NSCC to incorporate changes required under Reg. SCI prior to the November 3, 2015 compliance date. Therefore, the Commission designates the proposed rule change to be operative upon filing.\21\ --------------------------------------------------------------------------- \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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NSCC-2015-008 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-NSCC-2015-008. 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 [[Page 67830]] Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of NSCC and on DTCC's Web site (http://dtcc.com/legal/sec-rule-filings.aspx). 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-NSCC-2015-008 and should be submitted on or before November 24, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-27912 Filed 11-2-15; 8:45 am] BILLING CODE 8011-01-P
![67828 Federal Register / Vol. 80, No. 212 / Tuesday, November 3, 2015 / Notices
writing within 60 days of this annual testing of NSCC’s business requires participation by such
publication. continuity and disaster recovery plans designated members in scheduled BCP
An agency may not conduct or (‘‘BCP Testing’’), as more fully described Testing with NSCC on an annual basis.9
sponsor, and a person is not required to below.5 Although NSCC already conducts
respond to, a collection of information annual BCP Testing with certain
under the PRA unless it displays a II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the Members,10 NSCC is proposing to
currently valid OMB control number. amend Rule 2B to further describe
Please direct your written comments Proposed Rule Change
NSCC’s requirement with respect to BCP
to: Pamela Dyson, Director/Chief In its filing with the Commission,
NSCC included statements concerning Testing.
Information Officer, Securities and
Exchange Commission, c/o Remi Pavlik- the purpose of and basis for the The proposed amendments to Rule 2B
Simon, 100 F Street NE., Washington, proposed rule change and discussed any would increase transparency regarding
DC 20549, or send an email to: PRA_ comments it received on the proposed BCP Testing, and ensure NSCC’s
Mailbox@sec.gov. rule change. The text of these statements practice with respect to such testing is
Dated: October 28, 2015. may be examined at the places specified consistent with Reg. SCI by setting forth
Robert W. Errett,
in Item IV below. NSCC has prepared NSCC’s rights to: (i) Designate Members
summaries, set forth in sections A, B required to participate in BCP Testing
Deputy Secretary.
and C below, of the most significant using established standards; (ii)
[FR Doc. 2015–27903 Filed 11–2–15; 8:45 am]
aspects of such statements. determine the scope and reporting of
BILLING CODE 8011–01–P
(A) Clearing Agency’s Statement of the such BCP Testing; and (iii) require
Purpose of, and Statutory Basis for, the Members to comply with such BCP
SECURITIES AND EXCHANGE Proposed Rule Change Testing within specified timeframes. In
COMMISSION connection with these proposed
1. Purpose
[Release No. 34–76289; File No. SR–NSCC–
amendments, NSCC would refine the
The proposed rule change would factors that it currently uses to designate
2015–008]
amend NSCC’s Rule 2B (Ongoing Members for BCP Testing. For example,
Self-Regulatory Organizations; Membership Requirements and while NSCC would continue to rely on
National Securities Clearing Monitoring) to provide additional activity-based thresholds to mandate
Corporation; Notice of Filing and details regarding the requirement that
participation with annual BCP Testing,
Immediate Effectiveness of Proposed NSCC Members participate in NSCC’s
NSCC would also take into account
Rule Change to Provide Additional annual BCP Testing. Currently, pursuant
additional factors when designating
Details Regarding the Requirement to Addendum B of the Rules, an
applicant is qualified for membership firms for BCP Testing, including, but not
that Members Participate in Annual limited to: (i) Significant operational
Testing of Business Continuity and with NSCC if it is ‘‘able to satisfactorily
communication with the Corporation issues of the Member during the past
Disaster Recovery Plans twelve months; and (ii) past
and fulfill anticipated commitments to
October 28, 2015. and meet the operational requirements performance of the Member with respect
Pursuant to Section 19(b)(1) 1 of the of the Corporation with necessary to BCP Testing. Members would be
Securities Exchange Act of 1934 (‘‘Act’’) promptness and accuracy and to informed of the specific standards that
and Rule 19b–4 2 thereunder, notice is conform to any condition and would be used by NSCC, along with any
hereby given that on October 23, 2015, requirement that the Corporation updates or changes to these standards,
National Securities Clearing Corporation reasonably deems necessary for its which would be applied on a
(‘‘NSCC’’) filed with the Securities and protection.’’ 6 Once a firm becomes a prospective basis, through established
Exchange Commission (‘‘Commission’’) Member of NSCC, NSCC Rule 2B methods of communication between
the proposed rule change as described provides that Members may be required NSCC and its Members. Likewise,
in Items I and II below, which Items to fulfill certain operational testing Members would be notified in advance
have been prepared by NSCC. NSCC requirements that may be imposed by that they have been designated to
filed the proposed rule change pursuant NSCC to test and monitor the participate in BCP Testing for the
to Section 19(b)(3)(A) 3 of the Act and continuing operational capability of the upcoming year, and would be provided
Rule 19b–4(f)(6) 4 thereunder. The Members.7 details concerning the nature of such
proposed rule change was effective Recently, the Commission testing as the particular test plans are
upon filing with the Commission. The promulgated Regulation Systems determined.
Commission is publishing this notice to Compliance and Integrity (‘‘Reg. SCI’’),
solicit comments on the proposed rule which requires NSCC to establish NSCC believes the proposed rule
change from interested persons. standards to designate members 8 and change would have no impact on NSCC
Members relative to what Members are
I. Clearing Agency’s Statement of the 5 Terms not otherwise defined herein have the currently required to do. As described
Terms of Substance of the Proposed meaning set forth in NSCC’s Rules, available at above, NSCC already requires certain
Rule Change http://www.dtcc.com/legal/rules-and- Members to participate in BCP Testing
procedures.aspx.
The proposed rule change consists of 6 Addendum B, Section 1(C) of NSCC’s Rules, on an annual basis. The proposed rule
a change to NSCC’s Rule 2B of the Rules supra, note 5. change would provide further clarity
mstockstill on DSK4VPTVN1PROD with NOTICES
and Procedures (‘‘Rules’’) of NSCC to 7 NSCC Rule 2B, Section 3, supra, note 5. with respect to these requirements for
provide additional details regarding the 8 17 CFR 242.1004(a). In adopting Reg. SCI, the
consistency with Reg. SCI.
requirement that Members participate in Commission determined not to require covered
entities to notify the Commission of its designations
or the standards that will be used in designating Securities and Exchange Act Release No. 73639
1 15 U.S.C. 78s(b)(1). members, recognizing instead that each entity’s (November 19, 2014), 79 FR 72252 (December 5,
2 17 CFR 240.19b–4. 2014) (File No. S7–01–13).
standards, designations, and updates, if applicable,
3 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 242.1004(a) and (b).
would be part of its records and, therefore, available
4 17 CFR 240.19b–4(f)(6). to the Commission and its staff upon request. See 10 NSCC Rule 2B, Section 3, supra, note 5.
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![67830 Federal Register / Vol. 80, No. 212 / Tuesday, November 3, 2015 / Notices
Reference Room, 100 F Street NE., I. Self-Regulatory Organization’s be referred to as ‘‘Openings.’’ 4 Proposed
Washington, DC 20549 on official Statement of the Terms of Substance of Rule 123D(a)(1) would include the
business days between the hours of the Proposed Rule Change current first paragraph of Rule 123D(1).
10:00 a.m. and 3:00 p.m. Copies of the The Exchange proposes to add a new
The Exchange proposes to amend paragraph (a)(2) to Rule 123D to provide
filing also will be available for Rule 123D—Equities to specify that
inspection and copying at the principal that, if a DMM cannot facilitate the open
Exchange systems may open one or of trading for one or more securities for
office of NSCC and on DTCC’s Web site more securities electronically if a
(http://dtcc.com/legal/sec-rule- which the DMM is registered, the
Designated Market Maker registered in a Exchange would open those securities
filings.aspx). All comments received security or securities cannot facilitate electronically on a quote or a trade as
will be posted without change; the the opening of trading as required by provided for in paragraphs (a)(3)—(a)(6)
Commission does not edit personal Exchange rules. The text of the of the proposed Rule. Proposed Rule
identifying information from proposed rule change is available on the 123D(a)(2) would further provide that
submissions. You should submit only Exchange’s Web site at www.nyse.com, manually-entered Floor interest would
information that you wish to make at the principal office of the Exchange, not participate in any open effected
available publicly. All submissions and at the Commission’s Public electronically by the Exchange and if
should refer to File Number SR–NSCC– Reference Room. previously entered, would be ignored.
2015–008 and should be submitted on II. Self-Regulatory Organization’s Finally, proposed Rule 123D(a)(2)
or before November 24, 2015. Statement of the Purpose of, and would provide that, unless otherwise
For the Commission, by the Division of Statutory Basis for, the Proposed Rule specified, references to an open or
Trading and Markets, pursuant to delegated Change opening in proposed Rules 123D (a)(3)—
authority.22 (a)(6) would also mean a reopening
In its filing with the Commission, the following a trading halt or pause.
Robert W. Errett, self-regulatory organization included Proposed Rule 123D(a)(3) would
Deputy Secretary. statements concerning the purpose of, specify when the Exchange would open
[FR Doc. 2015–27912 Filed 11–2–15; 8:45 am] and basis for, the proposed rule change a security on a trade and would provide
BILLING CODE 8011–01–P and discussed any comments it received that the Exchange would open a security
on the proposed rule change. The text on a trade if there is buy and sell
of those statements may be examined at interest that can trade a round lot or
SECURITIES AND EXCHANGE the places specified in Item IV below. more at a price that is no greater than
COMMISSION The Exchange has prepared summaries, or no less than a specified range
set forth in sections A, B, and C below, (‘‘Opening Price Range’’) away from the
[Release No. 34–76292; File No. SR– of the most significant parts of such last sale price on the Exchange
NYSEMKT–2015–81] statements. (‘‘Reference Price’’). Proposed Rule
A. Self-Regulatory Organization’s 123D(a)(3) would further provide that
Self-Regulatory Organizations; NYSE Statement of the Purpose of, and the the Exchange would determine the
MKT LLC; Notice of Filing and Statutory Basis for, the Proposed Rule Opening Price Range parameters upon
Immediate Effectiveness of Proposed Change advance notice to market participants.
Rule Change Amending Rule 123D— Unlike DMMs, who have the
Equities To Specify That Exchange 1. Purpose obligation to trade for their own account
Systems May Open One or More to supply liquidity as needed to
The Exchange proposes to amend
Securities Electronically if a facilitate openings,5 the Exchange
Rule 123D—Equities (‘‘Rule 123D’’) to
would not supply any liquidity when
Designated Market Maker Registered in specify that Exchange systems may open
effecting an electronic open. Without
a Security or Securities Cannot one or more securities electronically if
the addition of liquidity to offset an
Facilitate the Opening of Trading as a Designated Market Maker (‘‘DMM’’)
imbalance, pricing the opening based on
Required by Exchange Rules registered in a security or securities
a significant imbalance could result in
cannot facilitate the open of trading as
October 28, 2015. an opening price that may not be
required by Exchange rules.3
reasonably related to the last sale price
Pursuant to Section 19(b)(1) of the Currently, Rule 123D provides that on the Exchange. To avoid opening a
Securities Exchange Act of 1934 openings may be effected manually or security at a price too far away from the
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 electronically. However, the current rule last sale, the Exchange proposes to
notice is hereby given that on October contemplates that openings would be establish numerical guidelines to
23, 2015, NYSE MKT LLC (the facilitated by a DMM, as provided for in provide parameters regarding the price
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with Rule 104(a)(2)—Equities. The Exchange a security may open when the Exchange
the Securities and Exchange proposes to re-number Rule 123D to opens such security on a trade. The
Commission (‘‘SEC’’ or ‘‘Commission’’) provide that current Rule 123D(1) Exchange proposes to establish the
the proposed rule change as described would be re-numbered as Rule 123D(a),
and the heading would be amended to
in Items I, II, and III below, which Items 4 The Exchange would also delete the terms
have been prepared by the Exchange. ‘‘Delayed’’ and ‘‘Halts in trading’’ from the current
3 The proposed amendment contemplates that a Rule 123D(1) heading. The Exchange further
The Commission is publishing this DMM’s inability to open securities either manually proposes to add a new sub-paragraph (b) to Rule
mstockstill on DSK4VPTVN1PROD with NOTICES
notice to solicit comments on the or electronically would be related to business 123D, before the current second paragraph of Rule
proposed rule change from interested continuity disruptions such as the physical closing 123D(1), which would be named ‘‘Delayed
of the Exchange Trading Floor or equipment and Openings/Halts in Trading.’’ The Exchange
persons. connectivity breakdowns that prevent the DMM proposes further non-substantive amendments to re-
from opening a security either manually or number current Rule 123D(2) as 123D(c). As
electronically. When a DMM is unable to open discussed below, the Exchange proposes to delete
22 17 CFR 200.30–3(a)(12).
securities manually or electronically, the DMM’s current Rule 123D(3) and (4).
1 15 U.S.C. 78s(b)(1). affirmative obligations under Rule 104 would not 5 See Rule 104(a)(2)—Equities & 104(f)(ii)—
2 17 CFR 240.19b–4. apply. Equities.
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Document Created: 2018-03-01 11:33:31
Document Modified: 2018-03-01 11:33:31
| 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 67828 |
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