80 FR 68373 - Self-Regulatory Organizations: Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Rule 321 Business Continuity and Disaster Recovery Plans Testing Requirements for Designated Members
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 213 (November 4, 2015)
Federal Register Volume 80, Issue 213 (November 4, 2015)
| Page Range | 68373-68376 | |
| FR Document | 2015-28026 |
[Federal Register Volume 80, Number 213 (Wednesday, November 4, 2015)] [Notices] [Pages 68373-68376] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28026] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76303; File No. SR-MIAX-2015-61] Self-Regulatory Organizations: Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Rule 321 Business Continuity and Disaster Recovery Plans Testing Requirements for Designated Members October 29, 2015. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on October 21, 2015, Miami International Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. 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. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to adopt Rule 321, Business Continuity and Disaster Recovery Plans Testing Requirements for Designated Members. The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at MIAX's principal office, 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 [[Page 68374]] Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects 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 321 to require those MIAX Members designated by the Exchange to participate in certain scheduled testing of the Exchange's business continuity and disaster recovery plans (``BC/DR plans''), as required by Section 1004 of Regulation Systems Compliance and Integrity (``Regulation SCI'').\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 73639 (November 19, 2014), 79 FR 72252 (December 5, 2014) (the ``Reg SCI Adopting Release''). --------------------------------------------------------------------------- As adopted by the Securities and Exchange Commission (``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.'' The Exchange takes pride in the reliability and availability of its systems. Historically, MIAX systems have been up and available more than 99.999% of the time; yet as a precaution, MIAX has and intends to continue to put extensive time and resources toward planning for system failures and to implement and maintain 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. With respect to an SCI entity's BC/DR plans, 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.'' 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.'' In order to comply with Regulation SCI, the Exchange proposes to adopt Rule 321 governing mandatory participation in testing of Exchange disaster recovery plans and systems, as described below. First, in paragraph (a) of Rule 321, the Exchange proposes to include language from paragraph (a) of Rule 1004 of Regulation SCI to summarize the Exchange's obligation pursuant to the rule. Specifically, the Exchange proposes to state that ``[p]ursuant to Regulation Systems Compliance and Integrity (``Regulation SCI''), 17 CFR 242.1000 et seq. and with respect to the Exchange's business continuity and disaster recovery plans, including its disaster recovery 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 ``[t]he 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 disaster recovery 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 participants to participate in the testing of the SCI entity's BC/DR plans if they request to do so.'' \4\ --------------------------------------------------------------------------- \4\ See id at p. 72350. --------------------------------------------------------------------------- Second, in paragraph (b) of Rule 321, the Exchange proposes to specify the criteria that will result in a Member receiving a designation requiring it to connect to the Exchange's disaster recovery 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 disaster recovery systems and to participate in functional and performance testing. The Exchange notes that it encourages all Members to connect to the Exchange's disaster recovery systems and to participate in testing of such systems. In fact, the Exchange provides logical ports to all Members that connect to Exchange disaster recovery systems without additional charge in order to help reduce the economic burden of maintaining connectivity to Exchange disaster recovery systems. However, in adopting the requirements of Rule 321(b), including both the requirement to maintain connectivity to Exchange disaster recovery 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 paragraph (b) of the Rule as well as the Exchange's notice of the applicable measuring calendar quarter and 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 (``meaningful percentage''), the Exchange will measure volume executed on the Exchange during a calendar quarter to be determined by the Exchange (``measurement quarter'') and announced via circular distributed to Members. The meaningful percentage will also be determined by the Exchange and published in a circular distributed to Members. The meaningful percentage applicable in any measurement quarter will be published in advance of such measurement quarter and will not apply retroactively to any measurement quarter completed or in progress. The Exchange will publish the first circular consistent with this proposal prior to the Regulation SCI compliance date of [[Page 68375]] November 3, 2015. The proposed Interpretation and Policy would also require the Exchange to notify individual Members that are subject to proposed paragraph (b) based on the applicable calendar quarter's volume following the completion of such calendar quarter. The Exchange believes the proposed notice requirements will provide Members with proper advance notice in the event they become subject to proposed Rule 321(b) to become compliant with such Rule, including allowing for adequate time to make any necessary infrastructure changes to connect to the Exchange's disaster recovery systems for a Member that is not already connected. 2. Statutory Basis MIAX believes that its proposed rule change is consistent with Section 6(b) of the Act \5\ in general, and furthers the objectives of Section 6(b)(5) of the Act \6\ in particular, in that 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 mechanisms 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 and 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.'' \7\ The Exchange believes that this proposal is consistent with such authority and legal responsibility. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ See supra note 4. --------------------------------------------------------------------------- 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. 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 Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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 after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ thereunder. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 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 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) \10\ normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b-4(f)(6)(iii) \11\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. 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 the Exchange to incorporate changes required under Regulation SCI, such as establishing standards for designating BCP/DR Participants, prior to the November 3, 2015 compliance date. Therefore, the Commission designates the proposed rule change to be operative upon filing.\12\ --------------------------------------------------------------------------- \12\ 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-MIAX-2015-61 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-MIAX-2015-61. 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments [[Page 68376]] 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-MIAX-2015-61 and should be submitted on or before November 25, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-28026 Filed 11-3-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 213 / Wednesday, November 4, 2015 / Notices 68373
III. Date of Effectiveness of the furtherance of the purposes of the Act. For the Commission, by the Division of
Proposed Rule Change and Timing for If the Commission takes such action, the Trading and Markets, pursuant to delegated
Commission Action Commission shall institute proceedings authority.16
to determine whether the proposed rule Robert W. Errett,
Because the foregoing proposed rule
change does not: (A) Significantly affect should be approved or disapproved. Deputy Secretary.
the protection of investors or the public [FR Doc. 2015–28025 Filed 11–3–15; 8:45 am]
IV. Solicitation of Comments
interest; (B) impose any significant BILLING CODE 8011–01–P
Interested persons are invited to
burden on competition; and (C) by its
submit written data, views and
terms, become operative for 30 days
arguments concerning the foregoing, SECURITIES AND EXCHANGE
from the date on which it was filed or
including whether the proposal is COMMISSION
such shorter time as the Commission
consistent with the Act. Comments may
may designate it has become effective [Release No. 34–76303; File No. SR–MIAX–
be submitted by any of the following
pursuant to Section 19(b)(3)(A) of the 2015–61]
methods:
Act 11 and paragraph (f)(6) of Rule 19b–
4 thereunder.12 Electronic Comments Self-Regulatory Organizations: Miami
A proposed rule change filed under • Use the Commission’s Internet International Securities Exchange LLC;
Rule 19b–4(f)(6) 13 normally does not comment form (http://www.sec.gov/ Notice of Filing and Immediate
become operative for 30 days after the rules/sro.shtml); or Effectiveness of a Proposed Rule
date of filing. However, Rule 19b– • Send an email to rule-comments@ Change To Adopt Rule 321 Business
4(f)(6)(iii) 14 permits the Commission to sec.gov. Please include File No. SR– Continuity and Disaster Recovery
designate a shorter time if such action EDGX–2015–52 on the subject line. Plans Testing Requirements for
is consistent with the protection of Designated Members
investors and the public interest. The Paper Comments
October 29, 2015.
Exchange has asked the Commission to • Send paper comments in triplicate
waive the 30-day operative delay so that Pursuant to the provisions of Section
to Secretary, Securities and Exchange
the proposal may become operative Commission, 100 F Street NE., 19(b)(1) of the Securities Exchange Act
immediately upon filing. The Exchange Washington, DC 20549–1090. of 1934 (‘‘Act’’) 1 and Rule 19b–4
notes that the commencement of the thereunder,2 notice is hereby given that
All submissions should refer to File on October 21, 2015, Miami
operations of EDGX Options is Number SR–EDGX–2015–52. This file
scheduled for November 2, 2015, and International Securities Exchange LLC
number should be included on the
waiver of the 30-day operative delay (‘‘MIAX’’ or ‘‘Exchange’’) filed with the
subject line if email is used. To help the
would permit the Exchange to launch Securities and Exchange Commission
Commission process and review your
EDGX Options with the proposed (‘‘Commission’’) a proposed rule change
comments more efficiently, please use
priority allocation model. The Exchange as described in Items I and II below,
only one method. The Commission will
also notes that the proposed rule change which Items have been prepared by the
post all comments on the Commission’s
is similar to priority rules already in Exchange. The Commission is
Internet Web site (http://www.sec.gov/
place on other options exchanges and publishing this notice to solicit
rules/sro.shtml). Copies of the
does not raise any new policy issues. comments on the proposed rule change
submission, all subsequent
Based on the foregoing, the Commission from interested persons.
amendments, all written statements
believes that waiving the 30-day with respect to the proposed rule I. Self-Regulatory Organization’s
operative delay is consistent with the change that are filed with the Statement of the Terms of Substance of
protection of investors and the public Commission, and all written the Proposed Rule Change
interest.15 The Commission hereby communications relating to the
grants the Exchange’s request and The Exchange is filing a proposal to
proposed rule change between the adopt Rule 321, Business Continuity
designates the proposal operative upon Commission and any person, other than
filing. and Disaster Recovery Plans Testing
those that may be withheld from the Requirements for Designated Members.
At any time within 60 days of the public in accordance with the
filing of the proposed rule change, the The text of the proposed rule change
provisions of 5 U.S.C. 552, will be is available on the Exchange’s Web site
Commission summarily may available for Web site viewing and
temporarily suspend such rule change if at http://www.miaxoptions.com/filter/
printing in the Commission’s Public wotitle/rule_filing, at MIAX’s principal
it appears to the Commission that such Reference Room, 100 F Street NE.,
action is: (1) Necessary or appropriate in office, and at the Commission’s Public
Washington, DC 20549, on official Reference Room.
the public interest; (2) for the protection business days between the hours of
of investors; or (3) otherwise in 10:00 a.m. and 3:00 p.m. Copies of such II. Self-Regulatory Organization’s
filing will also be available for Statement of the Purpose of, and
11 15 U.S.C. 78s(b)(3)(A).
inspection and copying at the principal Statutory Basis for, the Proposed Rule
12 17 CFR 240.19b–4(f)(6). As required under Rule
office of the Exchange. All comments Change
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file received will be posted without change; In its filing with the Commission, the
the proposed rule change, along with a brief the Commission does not edit personal Exchange included statements
description and the text of the proposed rule
identifying information from
asabaliauskas on DSK5VPTVN1PROD with NOTICES
change, at least five business days prior to the date concerning the purpose of and basis for
of filing of the proposed rule change, or such submissions. You should submit only the proposed rule change and discussed
shorter time as designated by the Commission. information that you wish to make any comments it received on the
13 17 CFR 240.19b–4(f)(6).
available publicly. All submissions proposed rule change. The text of these
14 17 CFR 240.19b–4(f)(6)(iii).
should refer to File Number SR–EDGX– statements may be examined at the
15 For purposes only of waiving the 30-day
2015–52 and should be submitted on or places specified in Item IV below. The
operative delay, the Commission has also
considered the proposed rule’s impact on before November 25, 2015.
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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Exchange has prepared summaries, set whole, the minimum necessary for the months. Specifically, proposed
forth in sections A, B, and C below, of maintenance of fair and orderly markets paragraph (b) would require all
the most significant aspects of such in the event of the activation of such Members that account for a meaningful
statements. plans.’’ Paragraph (b) of Rule 1004 percentage of the Exchange’s volume to
further requires each SCI entity to connect to the Exchange’s disaster
A. Self-Regulatory Organization’s
‘‘[d]esignate members or participants recovery systems and to participate in
Statement of the Purpose of, and
pursuant to the standards established in functional and performance testing.
Statutory Basis for, the Proposed Rule The Exchange notes that it encourages
paragraph (a) of [Rule 1004] and require
Change all Members to connect to the
participation by such designated
1. Purpose members or participants in scheduled Exchange’s disaster recovery systems
The Exchange is proposing to adopt functional and performance testing of and to participate in testing of such
new Rule 321 to require those MIAX the operation of such plans, in the systems. In fact, the Exchange provides
Members designated by the Exchange to manner and frequency specified by the logical ports to all Members that
participate in certain scheduled testing SCI entity, provided that such frequency connect to Exchange disaster recovery
of the Exchange’s business continuity shall not be less than once every 12 systems without additional charge in
and disaster recovery plans (‘‘BC/DR months.’’ In order to comply with order to help reduce the economic
plans’’), as required by Section 1004 of Regulation SCI, the Exchange proposes burden of maintaining connectivity to
Regulation Systems Compliance and to adopt Rule 321 governing mandatory Exchange disaster recovery systems.
Integrity (‘‘Regulation SCI’’).3 participation in testing of Exchange However, in adopting the requirements
As adopted by the Securities and disaster recovery plans and systems, as of Rule 321(b), including both the
Exchange Commission (‘‘Commission’’), described below. requirement to maintain connectivity to
Regulation SCI applies to certain self- First, in paragraph (a) of Rule 321, the Exchange disaster recovery systems and
regulatory organizations (including the Exchange proposes to include language to participate in mandatory testing of
Exchange), alternative trading systems from paragraph (a) of Rule 1004 of such systems, the Exchange intends to
(‘‘ATSs’’), plan processors, and exempt Regulation SCI to summarize the subject to the Rule only those Members
clearing agencies (collectively, ‘‘SCI Exchange’s obligation pursuant to the that the Exchange believes are necessary
entities’’), and will require these SCI rule. Specifically, the Exchange to maintain fair and orderly markets at
entities to comply with requirements proposes to state that ‘‘[p]ursuant to the Exchange. The Exchange believes
with respect to the automated systems Regulation Systems Compliance and that designating Members to participate
central to the performance of their Integrity (‘‘Regulation SCI’’), 17 CFR in mandatory testing because they
regulated activities. Among the 242.1000 et seq. and with respect to the account for a meaningful percentage of
requirements of Regulation SCI is Rule Exchange’s business continuity and the Exchange’s overall volume is a
1001(a)(2)(v), which requires the disaster recovery plans, including its reasonable means to ensure the
Exchange and other SCI entities to disaster recovery systems, the Exchange maintenance of a fair and orderly
maintain ‘‘[b]usiness continuity and is required to establish standards for the market on the Exchange.
disaster recovery plans that include designation of Members that the In addition to paragraphs (a) and (b)
maintaining backup and recovery Exchange reasonably determines are, described above, the Exchange also
capabilities sufficiently resilient and taken as a whole, the minimum proposes to adopt Interpretation and
geographically diverse and that are necessary for the maintenance of fair Policy .01, which would provide
reasonably designed to achieve next and orderly markets in the event of the additional detail regarding the notice
business day resumption of trading and activation of such plans.’’ The Exchange that will be provided to Members that
two-hour resumption of critical SCI further proposes that paragraph (a) have been designated pursuant to
systems following a wide-scale indicate that ‘‘[t]he Exchange has paragraph (b) of the Rule as well as the
disruption.’’ The Exchange takes pride established standards and will designate Exchange’s notice of the applicable
in the reliability and availability of its Members according to those standards’’ measuring calendar quarter and method
systems. Historically, MIAX systems as set forth in the proposed Rule. In for measuring the volume threshold. As
have been up and available more than addition, the Exchange proposes to proposed, Interpretation and Policy .01
99.999% of the time; yet as a make clear that all Members are would state that for purposes of
precaution, MIAX has and intends to permitted to connect to the Exchange’s identifying Members that account for a
continue to put extensive time and disaster recovery systems as well as to meaningful percentage of the
resources toward planning for system participate in testing of such systems. Exchange’s overall volume (‘‘meaningful
failures and to implement and maintain Proposed paragraph (a) is consistent percentage’’), the Exchange will
robust BC/DR plans consistent with the with the Commission’s adoption of measure volume executed on the
Rule. As set forth below, in connection Regulation SCI, which encouraged ‘‘SCI Exchange during a calendar quarter to
with Regulation SCI, the Exchange is entities to permit non-designated be determined by the Exchange
proposing to require certain Members to members or participants to participate (‘‘measurement quarter’’) and
participate in testing of the operation of in the testing of the SCI entity’s BC/DR announced via circular distributed to
the Exchange’s BC/DR plans. plans if they request to do so.’’ 4 Members. The meaningful percentage
With respect to an SCI entity’s BC/DR Second, in paragraph (b) of Rule 321, will also be determined by the Exchange
plans, paragraph (a) of Rule 1004 of the Exchange proposes to specify the and published in a circular distributed
criteria that will result in a Member to Members. The meaningful percentage
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Regulation SCI requires each SCI entity
to: ‘‘[e]stablish standards for the receiving a designation requiring it to applicable in any measurement quarter
designation of those members or connect to the Exchange’s disaster will be published in advance of such
participants that the SCI entity recovery systems and to participate in measurement quarter and will not apply
reasonably determines are, taken as a functional and performance testing as retroactively to any measurement
announced by the Exchange, which quarter completed or in progress. The
3 See Securities Exchange Act Release No. 73639 shall occur at least once every 12 Exchange will publish the first circular
(November 19, 2014), 79 FR 72252 (December 5, consistent with this proposal prior to
2014) (the ‘‘Reg SCI Adopting Release’’). 4 See id at p. 72350. the Regulation SCI compliance date of
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received will be posted without change; 103B—Equities, and 497—Equities to governs the appointment of Executive
the Commission does not edit personal replace references to the NYSE Floor Governors, to replace the ‘‘Board
identifying information from Regulation Board of Directors with the of Directors of NYSE Regulation’’ with
submissions. You should submit only Exchange’s Regulatory Oversight the ROC as the entity with which the
information that you wish to make Committee. The text of the proposed Board would consult on those
available publicly. rule change is available on the appointments.
All submissions should refer to File Exchange’s Web site at www.nyse.com,
Third, Rule 103B—Equities, which
Number SR–MIAX–2015–61 and should be at the principal office of the Exchange,
submitted on or before November 25, 2015. and at the Commission’s Public governs the security allocation and
Reference Room. reallocation process, would be amended
For the Commission, by the Division of
Trading and Markets, pursuant to delegated to replace ‘‘NYSER Board of Directors’’
authority.13
II. Self-Regulatory Organization’s in subsection (b) of Supplementary
Statement of the Purpose of, and Material .10 with the ‘‘Exchange’s
Robert W. Errett,
Statutory Basis for, the Proposed Rule Regulatory Oversight Committee’’.
Deputy Secretary.
Change
[FR Doc. 2015–28026 Filed 11–3–15; 8:45 am] Finally, Rule 497—Equities sets forth
In its filing with the Commission, the certain requirements that securities
BILLING CODE 8011–01–P
self-regulatory organization included issued by Intercontinental Exchange,
statements concerning the purpose of,
Inc., or its affiliates must meet before
SECURITIES AND EXCHANGE and basis for, the proposed rule change
and discussed any comments it received they can be listed on the Exchange. The
COMMISSION Exchange proposes to replace ‘‘NYSE
on the proposed rule change. The text
[Release No. 34–76294; File No. SR– of those statements may be examined at Regulation Board of Directors’’ in Rule
NYSEMKT–2015–83] 497(b) and (c)(1) with ‘‘Exchange’s
the places specified in Item IV below.
The Exchange has prepared summaries, Regulatory Oversight Committee’’. The
Self-Regulatory Organizations; NYSE ROC is now the entity that approves
MKT LLC; Notice of Filing and set forth in sections A, B, and C below,
of the most significant parts of such regulatory findings that the security to
Immediate Effectiveness of Proposed
statements. be listed satisfies Exchange listing rules
Rule Change Amending Rules 46—
Equities, 46A—Equities, 103B— under Rule 497(b) and that would
A. Self-Regulatory Organization’s
Equities, and 497—Equities To Replace receive the reports specified in Rule
Statement of the Purpose of, and the
References to the NYSE Regulation Statutory Basis for, the Proposed Rule 497(c)—Equities.
Board of Directors With the Change 2. Statutory Basis
Exchange’s Regulatory Oversight
1. Purpose The Exchange believes that the
Committee
The Exchange proposes to amend proposed rule change is consistent with
October 29, 2015. Rules 46—Equities, 46A—Equities, Section 6(b) of the Exchange Act 8 in
Pursuant to Section 19(b)(1) 1 of the 103B—Equities, and 497—Equities to general, and with Section 6(b)(5) 9 in
Securities Exchange Act of 1934 (the replace references to the NYSE particular, in that it in that it is designed
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Regulation Board of Directors with the
notice is hereby given that on October to prevent fraudulent and manipulative
Exchange’s Regulatory Oversight acts and practices, to promote just and
19, 2015, NYSE MKT LLC (the Committee (‘‘ROC’’).
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with The Exchange recently amended the equitable principles of trade, to foster
the Securities and Exchange Operating Agreement to, among other cooperation and coordination with
Commission (the ‘‘Commission’’) the things, establish a ROC.6 The Exchange persons engaged in facilitating
proposed rule change as described in now proposes the following conforming transactions in securities, and to remove
Items I and II below, which Items have amendments to Rules 46—Equities, impediments to and perfect the
been prepared by the self-regulatory 46A– Equities, 103B—Equities, and mechanism of a free and open market
organization. The Exchange has 497—Equities. These proposed changes, and a national market system and, in
designated this proposal as a ‘‘non- described below, are similar to changes general, help to protect investors and
controversial’’ proposed rule change to the rules of the Exchange’s affiliate, the public interest. Specifically, the
pursuant to Section 19(b)(3)(A) of the NYSE, which were recently approved by Exchange believes that replacing
Act 4 and Rule 19b–4(f)(6)(iii) the Commission.7 references to the NYSE Regulation
thereunder,5 which renders it effective First, the Exchange proposes to Board of Directors with the Exchange’s
upon filing with the Commission. The amend Rule 46(b)—Equities, which ROC in Rules 46—Equities, 46A—
Commission is publishing this notice to governs the appointment of Floor Equities, 103B—Equities, and 497—
solicit comments on the proposed rule Officials, to replace the reference to the Equities removes impediments to and
change from interested persons. ‘‘NYSE Regulation Board of Directors’’
perfects the mechanism of a free and
with the ROC as the entity with which
I. Self-Regulatory Organization’s the Board would consult on those open market by removing confusion that
Statement of the Terms of Substance of appointments. may result from having obsolete
the Proposed Rule Change Similarly, the Exchange proposes to references in the Exchange’s rulebook.
The Exchange proposes to amend amend Rule 46A—Equities, which The Exchange further believes that the
Rules 46—Equities, 46A—Equities, proposal removes impediments to and
asabaliauskas on DSK5VPTVN1PROD with NOTICES
6 See Securities Exchange Act Release No. 75148 perfects the mechanism of a free and
13 17 (June 11, 2015), 80 FR 34751 (SR–NYSEMKT–2015– open market by ensuring that persons
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
27) (approving creation of a ROC with primary
responsibility to independently monitor the
2 15 U.S.C. 78a.
exchange’s regulatory operations).
3 17 CFR 240.19b–4. 7 See Securities Exchange Act Release No. 75991
4 15 U.S.C. 78s(b)(3)(A). 8 15 U.S.C. 78f(b).
(September 28, 2015), 80 FR 59837, 59839 (October
5 17 CFR 240.19b–4(f)(6)(iii). 9 15 U.S.C. 78f(b)(5).
2, 2015) (SR–NYSE–2015–27).
VerDate Sep<11>2014 20:30 Nov 03, 2015 Jkt 238001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\04NON1.SGM 04NON1](https://thefederalregister.org/doc/80_FR_68586/page/4.svg)
Document Created: 2018-03-01 11:28:09
Document Modified: 2018-03-01 11:28:09
| 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 68373 |
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