80 FR 69731 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring OTP Holders To Participate in Business Continuity and Disaster Recovery Plans Testing in Connection With Regulation Systems Compliance and Integrity

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 217 (November 10, 2015)

Page Range		69731-69734
FR Document		2015-28513
Federal Register, Volume 80 Issue 217 (Tuesday, November 10, 2015)
[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)]
[Notices]
[Pages 69731-69734]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-28513]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76349; File No. SR-NYSEARCA-2015-97]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Requiring OTP 
Holders To Participate in Business Continuity and Disaster Recovery 
Plans Testing in Connection With Regulation Systems Compliance and 
Integrity

November 4, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on October 26, 2015, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to require certain OTP Holders \4\ to 
participate in

[[Page 69732]]

business continuity and disaster recovery plans (``BC/DR Plans'') 
testing in connection with Regulation Systems Compliance and Integrity 
(``Regulation SCI'').\5\ The text of the proposed rule change is 
available on the Exchange's Web site at www.nyse.com, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.
---------------------------------------------------------------------------

    \4\ Pursuant to Rule 1.1(q), an ``OTP Holder'' refers to a 
natural person, in good standing, who has been issued an OTP. An OTP 
Holder must be a registered broker or dealer pursuant to Section 15 
of the Act. Rule 1.1(p) defines ``OTP'' as an Options Trading Permit 
issued by the Exchange for effecting approved securities 
transactions on the Exchange.
    \5\ See Securities Exchange Act Release No. 73639 (November 19, 
2014), 79 FR 72252 (December 5, 2014) (``SCI Adopting Release'').
---------------------------------------------------------------------------

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 self-regulatory organization 
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 those 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    As adopted by the Commission, Regulation SCI applies to certain 
self-regulatory organizations (including the Exchange), alternative 
trading systems (``ATSs''), plan processors, and exempt clearing 
agencies (collectively, ``SCI entities''), and will require these SCI 
entities to comply with requirements with respect to the automated 
systems central to the performance of their regulated activities. Among 
the requirements of Regulation SCI is Rule 1001(a)(2)(v), which 
requires the Exchange and other SCI entities to maintain ``[b]usiness 
continuity and disaster recovery plans that include maintaining backup 
and recovery capabilities sufficiently resilient and geographically 
diverse and that are reasonably designed to achieve next business day 
resumption of trading and two-hour resumption of critical SCI systems 
following a wide-scale disruption.'' \6\ As a matter of course, the 
Exchange has put extensive time and resources toward planning for 
system failures and already maintains robust BC/DR plans consistent 
with the proposed rule. As set forth below, in connection with 
Regulation SCI, the Exchange is proposing to require certain OTP 
Holders to participate in testing of the operation of the Exchange's 
BC/DR plans.
---------------------------------------------------------------------------

    \6\ 17 CFR 242.1001(a)(2)(v).
---------------------------------------------------------------------------

    With respect to an SCI entity's BC/DR plans, including its backup 
systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI 
entity to: ``[e]stablish standards for the designation of those members 
or participants that the SCI entity reasonably determines are, taken as 
a whole, the minimum necessary for the maintenance of fair and orderly 
markets in the event of the activation of such plans.'' \7\ 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.'' \8\
---------------------------------------------------------------------------

    \7\ 17 CFR 242.1004(a).
    \8\ 17 CFR 242.1004(b).
---------------------------------------------------------------------------

    To comply with Rule 1004 of Regulation SCI, the Exchange proposes 
to adopt Rule 2.26, governing mandatory testing of Exchange backup 
systems as described below. The requirements of proposed Rule 2.26 
would apply to OTP Holders that transact on the Exchange's options 
market.
    First, in paragraph (a) of proposed Rule 2.26, the Exchange 
proposes to establish standards for the designation of OTP Holders 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 the Exchange's business continuity and disaster 
recovery plans.
    Second, in paragraph (b) of proposed Rule 2.26, the Exchange 
proposes to specify that OTP Holders that are designated pursuant to 
paragraph (a) of proposed Rule 2.26 would be required to participate in 
scheduled functional and performance testing of the Exchange's business 
continuity and disaster recovery plans, which shall not be less than 
once every 12 months.
    Third, in paragraph (c) of proposed Rule 2.26, the Exchange 
proposes to make clear that Lead Market Makers \9\ that have been 
determined by the Exchange to contribute a meaningful percentage of the 
Exchange's overall volume, measured on a quarterly or monthly basis, 
will be required to participate in scheduled functional and performance 
testing. The Exchange further proposes that it may also consider other 
factors in determining the OTP Holders that will be required to 
participate in scheduled functional and performance testing, including 
average daily volume traded on the Exchange measured on a quarterly or 
monthly basis, or OTP Holders who collectively account for a certain 
percentage of market share on the Exchange.
---------------------------------------------------------------------------

    \9\ The term ``Lead Market Maker'' or ``LMM'' means an 
individual or entity that has been deemed qualified by the Exchange 
for the purpose of making transactions on the Exchange in accordance 
with Rule 6.82. Each LMM must be registered with the Exchange as a 
Market Maker. See Rule 6.1A(a)(5).
---------------------------------------------------------------------------

    Fourth, in paragraph (d) of proposed Rule 2.26, the Exchange 
proposes that at least three (3) months prior to a scheduled functional 
and performance testing of the Exchange's business continuity and 
disaster recovery plans, the Exchange will publish the criteria to be 
used by the Exchange to determine which OTP Holders will be required to 
participate in such testing and notify those OTP Holders that are 
required to participate based on such criteria.\10\ The Exchange 
believes that the proposed notice requirements are necessary to provide 
OTP Holders with proper advance notice in the event they become subject 
to the proposed rule. The proposed timeframes would also provide OTP 
Holders with adequate time to prepare for the testing, including any 
systems changes needed, to connect to the Exchange's backup systems.
---------------------------------------------------------------------------

    \10\ The Exchange will publish the initial notice to OTP Holders 
no later than November 3, 2015.
---------------------------------------------------------------------------

    Finally, in paragraph (e) of proposed Rule 2.26, the Exchange 
proposes to make clear that OTP Holders not designated pursuant to 
standards established in paragraph (a) of proposed Rule 2.26 are 
permitted to connect to the Exchange's backup systems and may 
participate in testing of such systems. Proposed paragraph (e) is 
consistent with Regulation SCI, which encourages ``SCI entities to 
permit non-designated members or participants to participate in the 
testing of the SCE entity's BC/DR plans if they request to do so.'' 
\11\
---------------------------------------------------------------------------

    \11\ See SCI Adopting Release, supra note 5 at 72350.
---------------------------------------------------------------------------

    The Exchange notes that it encourages all OTP Holders to connect to 
the Exchange's backup systems and to participate in testing of such 
systems. However, in adopting the requirements in proposed Rule 2.26, 
the rule will subject only those OTP Holders to mandatory testing that 
the Exchange believes are, taken as a whole, the minimum necessary to 
maintain fair and orderly markets. The Exchange believes that 
designating OTP Holders to participate in mandatory testing because

[[Page 69733]]

they, for example, account for a significant portion of the Exchange's 
overall volume or maintain exclusive responsibilities with respect to 
Exchange-listed securities is a reasonable means to ensure the 
maintenance of a fair and orderly market on the Exchange.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\12\ in general, and furthers the 
objectives of Sections 6(b)(5) of the Act,\13\ in particular, 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 regulating, 
clearing, settling, processing information with respect to, and 
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 
and because it is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposal will ensure that the OTP Holders necessary to ensure 
the maintenance of a fair and orderly market are properly designated 
consistent with Rule 1004 of Regulation SCI. Specifically, as proposed, 
the Exchange will adopt clear and objective criteria with respect to 
the designation of OTP Holders 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.'' \14\ The Exchange believes 
that this proposal is consistent with such authority and legal 
responsibility.
---------------------------------------------------------------------------

    \14\ See SCI Adopting Release, supra note 5 at 72350.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

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

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\ 
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 prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder. A proposed rule change filed under Rule 19b-
4(f)(6) \17\ normally does not become operative prior to 30 days after 
the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ 
the Commission may designate a shorter time if such action is 
consistent with the protection of investors and the public interest.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 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. 
Accordingly, the Commission designates the proposed rule change to be 
operative upon filing.\19\
---------------------------------------------------------------------------

    \19\ 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 such 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. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \20\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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 Comments

     Use 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-NYSEARCA-2015-97 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-NYSEARCA-2015-97. 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

[[Page 69734]]

provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Section, 100 F Street 
NE., Washington, DC 20549-1090. Copies of the filing will also be 
available for inspection and copying at the NYSE's principal office and 
on its Internet Web site at www.nyse.com. 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-NYSEARCA-2015-97 and should be submitted 
on or before December 1, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-28513 Filed 11-9-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices 69731

prompt and accurate clearance and III. Date of Effectiveness of the office of NSCC and on NSCC’s Web site
settlement of securities transactions. In Proposed Rule Change, and Timing for at http://www.dtcc.com/legal/sec-rule-
recent months, NSCC has learned from Commission Action filings. All comments received will be
fund administrators interested in Within 45 days of the date of posted without change; the Commission
becoming AIP Members that fund publication of this notice in the Federal does not edit personal identifying
administrators generally do not control Register or within such longer period information from submissions. You
money settlement for their Fund clients. up to 90 days (i) as the Commission may should submit only information that
Within AIP, settlement of AIP Payments designate if it finds such longer period you wish to make available publicly. All
is the responsibility of AIP Members, to be appropriate and publishes its submissions should refer to File
including AIP Fund Administrators. reasons for so finding or (ii) as to which Number SR–NSCC–2015–007 and
This disconnect has impeded the the self-regulatory organization should be submitted on or before
adoption of AIP by the fund consents, the Commission will: December 1, 2015.
administrator community. The proposed (A) By order approve or disapprove For the Commission, by the Division of
rule change would allow AIP Payments such proposed rule change, or Trading and Markets, pursuant to delegated
(B) institute proceedings to determine authority.8
to settle at the sub-account level, which
whether the proposed rule change Brent J. Fields,
would redirect responsibility for should be disapproved.
settlement of AIP Payments to the AIP Secretary.
Fund Administrator’s designated Fund IV. Solicitation of Comments [FR Doc. 2015–28512 Filed 11–9–15; 8:45 am]
clients. Under the proposal, if an AIP Interested persons are invited to BILLING CODE 8011–01–P

Non-Member Fund fails to make its AIP submit written data, views, and
Payment on Settlement Date, only the arguments concerning the foregoing,
SECURITIES AND EXCHANGE
credit positions on the contra-side of the including whether the proposed rule
COMMISSION
applicable AIP Settling Sub-Account change is consistent with the Act.
would be reversed. The current AIP Comments may be submitted by any of
the following methods: [Release No. 34–76349; File No. SR–
Rules require NSCC to reverse all of an NYSEARCA–2015–97]
AIP Fund Administrator’s contra-side Electronic Comments
credit positions to the extent the AIP Self-Regulatory Organizations; NYSE
• Use the Commission’s Internet
Fund Administrator fails to meet any Arca, Inc.; Notice of Filing and
comment form (http://www.sec.gov/
portion of its daily AIP Payment Immediate Effectiveness of Proposed
rules/sro.shtml); or
balance. In allowing settlement at the • Send an email to rule-comments@ Rule Change Requiring OTP Holders
sub-account level, NSCC would be sec.gov. Please include File Number SR– To Participate in Business Continuity
fostering cooperation and coordination NSCC–2015–007 on the subject line. and Disaster Recovery Plans Testing
with fund administrators and Funds in Connection With Regulation
engaged in the clearance and settlement Paper Comments Systems Compliance and Integrity
of alternative investment securities • Send paper comments in triplicate November 4, 2015.
transactions and would be removing an to Secretary, Securities and Exchange
Pursuant to Section 19(b)(1) 1 of the
impediment to the prompt and accurate Commission, 100 F Street NE.,
Securities Exchange Act of 1934 (the
clearance and settlement of alternative Washington, DC 20549.
All submissions should refer to File ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
investment securities transactions. notice is hereby given that, on October
Therefore, NSCC believes that the Number SR–NSCC–2015–007. This file
number should be included on the 26, 2015, NYSE Arca, Inc. (the
proposed rule change is consistent with ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
subject line if email is used. To help the
the Act, in particular, Section the Securities and Exchange
Commission process and review your
17A(b)(3)(F) 7 of the Act. Commission (the ‘‘Commission’’) the
comments more efficiently, please use
only one method. The Commission will proposed rule change as described in
(B) Clearing Agency's Statement on
post all comments on the Commission’s Items I and II below, which Items have
Burden on Competition
Internet Web site (http://www.sec.gov/ been prepared by the self-regulatory
NSCC does not believe that the rules/sro.shtml). Copies of the organization. The Commission is
proposed rule change would have any submission, all subsequent publishing this notice to solicit
impact, or impose any burden, on amendments, all written statements comments on the proposed rule change
competition because the ability to settle with respect to the proposed rule from interested persons.
at the sub-account level is optional and change that are filed with the I. Self-Regulatory Organization’s
available to all AIP Fund Commission, and all written Statement of the Terms of Substance of
Administrators. communications relating to the the Proposed Rule Change
proposed rule change between the
(C) Clearing Agency's Statement on The Exchange proposes to require
Commission and any person, other than
Comments on the Proposed Rule certain OTP Holders 4 to participate in
those that may be withheld from the
Change Received From Members, public in accordance with the 8 17 CFR 200.30–3(a)(12).
Participants, or Others provisions of 5 U.S.C. 552, will be
asabaliauskas on DSK5VPTVN1PROD with NOTICES

1 15 U.S.C.78s(b)(1).
available for Web site viewing and
Written comments relating to the 2 15 U.S.C. 78a.
printing in the Commission’s Public 3 17 CFR 240.19b–4.
proposed rule change have not yet been
Reference Room, 100 F Street NE., 4 Pursuant to Rule 1.1(q), an ‘‘OTP Holder’’ refers
solicited or received. NSCC will notify Washington, DC 20549 on official to a natural person, in good standing, who has been
the Commission of any written business days between the hours of issued an OTP. An OTP Holder must be a registered
comments when received by NSCC. 10:00 a.m. and 3:00 p.m. Copies of the broker or dealer pursuant to Section 15 of the Act.
Rule 1.1(p) defines ‘‘OTP’’ as an Options Trading
filing also will be available for Permit issued by the Exchange for effecting
7 Id. inspection and copying at the principal approved securities transactions on the Exchange.

VerDate Sep<11>2014 19:41 Nov 09, 2015 Jkt 238001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\10NON1.SGM 10NON1
Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices 69733

they, for example, account for a with such authority and legal to the November 3, 2015 compliance
significant portion of the Exchange’s responsibility. date. Accordingly, the Commission
overall volume or maintain exclusive designates the proposed rule change to
B. Self-Regulatory Organization's
responsibilities with respect to be operative upon filing.19
Statement on Burden on Competition At any time within 60 days of the
Exchange-listed securities is a
reasonable means to ensure the The Exchange does not believe that filing of such proposed rule change, the
maintenance of a fair and orderly the proposed rule change will impose Commission summarily may
market on the Exchange. any burden on competition not temporarily suspend such rule change if
necessary or appropriate in furtherance it appears to the Commission that such
2. Statutory Basis of the purposes of the Act. To the action is necessary or appropriate in the
The Exchange believes that the contrary, the proposal is not a public interest, for the protection of
proposed rule change is consistent with competitive proposal but rather is investors, or otherwise in furtherance of
Section 6(b) of the Act,12 in general, and necessary for the Exchange’s the purposes of the Act. If the
furthers the objectives of Sections compliance with Regulation SCI. Commission takes such action, the
6(b)(5) of the Act,13 in particular, Commission shall institute proceedings
C. Self-Regulatory Organization's under Section 19(b)(2)(B) 20 of the Act to
because it is designed to prevent Statement on Comments on the
fraudulent and manipulative acts and determine whether the proposed rule
Proposed Rule Change Received From change should be approved or
practices, to promote just and equitable Members, Participants, or Others
principles of trade, to foster cooperation disapproved.
No written comments were solicited
and coordination with persons engaged IV. Solicitation of Comments
or received with respect to the proposed
in regulating, clearing, settling, Interested persons are invited to
rule change.
processing information with respect to, submit written data, views, and
and facilitating transactions in III. Date of Effectiveness of the arguments concerning the foregoing,
securities, to remove impediments to, Proposed Rule Change and Timing for including whether the proposed rule
and perfect the mechanisms of, a free Commission Action change is consistent with the Act.
and open market and a national market The Exchange has filed the proposed Comments may be submitted by any of
system and, in general, to protect rule change pursuant to Section the following methods:
investors and the public interest and 19(b)(3)(A)(iii) of the Act 15 and Rule
because it is not designed to permit Electronic Comments
19b–4(f)(6) thereunder.16 Because the
unfair discrimination between proposed rule change does not: (i) • Use the Commission’s Internet
customers, issuers, brokers, or dealers. Significantly affect the protection of comment form (http://www.sec.gov/
The proposal will ensure that the OTP investors or the public interest; (ii) rules/sro.shtml); or
Holders necessary to ensure the impose any significant burden on • Send an email to rule-
maintenance of a fair and orderly competition; and (iii) become operative comments@sec.gov. Please include File
market are properly designated prior to 30 days from the date on which Number SR–NYSEARCA–2015–97 on
consistent with Rule 1004 of Regulation it was filed, or such shorter time as the the subject line.
SCI. Specifically, as proposed, the Commission may designate, if Paper Comments
Exchange will adopt clear and objective consistent with the protection of • Send paper comments in triplicate
criteria with respect to the designation investors and the public interest, the to Brent J. Fields, Secretary, Securities
of OTP Holders that are required to proposed rule change has become and Exchange Commission, 100 F Street
participate in the testing of the effective pursuant to Section 19(b)(3)(A) NE., Washington, DC 20549–1090.
Exchange’s BC/DR plans, as well as of the Act and Rule 19b–4(f)(6)(iii)
appropriate notification regarding such thereunder. A proposed rule change All submissions should refer to File
designation. As set forth in the SCI filed under Rule 19b–4(f)(6) 17 normally Number SR–NYSEARCA–2015–97. This
Adopting Release, ‘‘SROs have the does not become operative prior to 30 file number should be included on the
authority, and legal responsibility, days after the date of the filing. subject line if email is used. To help the
under Section 6 of the Exchange Act, to However, pursuant to Rule Commission process and review your
adopt and enforce rules (including rules 19b4(f)(6)(iii),18 the Commission may comments more efficiently, please use
to comply with Regulation SCI’s designate a shorter time if such action only one method. The Commission will
requirements relating to BC/DR testing) is consistent with the protection of post all comments on the Commission’s
applicable to their members or investors and the public interest. Internet Web site (http://www.sec.gov/
participants that are designed to, among The Exchange has asked the rules/sro.shtml). Copies of the
other things, foster cooperation and Commission to waive the 30-day submission, all subsequent
coordination with persons engaged in operative delay so that the proposal may amendments, all written statements
regulating, clearing, settling, processing become operative immediately upon with respect to the proposed rule
information with respect to, and filing. The Commission believes that change that are filed with the
facilitating transactions in securities, to waiving the 30-day operative delay is Commission, and all written
remove impediments to and perfect the consistent with the protection of communications relating to the
mechanism of a free and open market investors and the public interest as it proposed rule change between the
Commission and any person, other than
asabaliauskas on DSK5VPTVN1PROD with NOTICES

and a national market system, and, in will allow the Exchange to incorporate
general, to protect investors and the changes required under Regulation SCI, those that may be withheld from the
public interest.’’ 14 The Exchange such as establishing standards for public in accordance with the
believes that this proposal is consistent designating BCP/DR participants, prior 19 For purposes only of waiving the 30-day

operative delay, the Commission has also
12 15 15 15 U.S.C. 78s(b)(3)(A)(iii).
U.S.C. 78f(b). considered the proposed rule’s impact on
13 15 16 17 CFR 240.19b–4(f)(6).
U.S.C. 78f(b)(5). efficiency, competition, and capital formation. See,
14 See SCI Adopting Release, supra note 5 at 17 17 CFR 240.19b–4(f)(6). 15 U.S.C. 78c(f).
72350. 18 17 CFR 240.19b–4(f)(6)(iii). 20 15 U.S.C. 78s(b)(2)(B).

VerDate Sep<11>2014 19:41 Nov 09, 2015 Jkt 238001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\10NON1.SGM 10NON1
69734 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices

provisions of 5 U.S.C. 552, will be for certain Participants 3 in connection extensive time and resources toward
available for Web site viewing and with Regulation Systems Compliance planning for system failures and already
printing in the Commission’s Public and Integrity (‘‘Regulation SCI’’).4 CHX maintains robust BC/DR plans
Reference Section, 100 F Street NE., has designated this proposed rule consistent with the Rule.9 As set forth
Washington, DC 20549–1090. Copies of change as non-controversial pursuant to below, in connection with Regulation
the filing will also be available for Section 19(b)(3)(A) 5 of the Act and Rule SCI, the Exchange is proposing to
inspection and copying at the NYSE’s 19b–4(f)(6) 6 thereunder and has require certain Participants to
principal office and on its Internet Web provided the Commission with the participate in testing of the operation of
site at www.nyse.com. All comments notice required by Rule 19b–4(f)(6)(iii).7 the Exchange’s BC/DR plans.
received will be posted without change; The text of this proposed rule change With respect to an SCI entity’s BC/DR
the Commission does not edit personal is available on the Exchange’s Web site plans, including its backup systems,
identifying information from at (www.chx.com) and in the paragraph (a) of Rule 1004 of Regulation
submissions. You should submit only Commission’s Public Reference Room. SCI requires each SCI entity to:
information that you wish to make ‘‘[e]stablish standards for the
II. Self-Regulatory Organization’s
available publicly. All submissions designation of those members or
Statement of the Purpose of, and
should refer to File Number SR– participants that the SCI entity
Statutory Basis for, the Proposed Rule
NYSEARCA–2015–97 and should be reasonably determines are, taken as a
Change
submitted on or before December 1, whole, the minimum necessary for the
2015. In its filing with the Commission, the maintenance of fair and orderly markets
CHX included statements concerning in the event of the activation of such
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
the purpose of and basis for the plans.’’ 10 Paragraph (b) of Rule 1004
authority.21 proposed rule change and discussed any further requires each SCI entity to
Brent J. Fields,
comments it received on the proposed ‘‘[d]esignate members or participants
rule change. The text of these statements pursuant to the standards established in
Secretary.
may be examined at the places specified paragraph (a) of [Rule 1004] and require
[FR Doc. 2015–28513 Filed 11–9–15; 8:45 am]
in Item IV below. The Exchange has participation by such designated
BILLING CODE 8011–01–P prepared summaries, set forth in members or participants in scheduled
Sections A, B, and C below, of the most functional and performance testing of
significant aspects of such statements. the operation of such plans, in the
SECURITIES AND EXCHANGE
COMMISSION A. Self-Regulatory Organization's manner and frequency specified by the
Statement of the Purpose of, and SCI entity, provided that such frequency
[Release No. 34–76351; File No. SR–CHX– shall not be less than once every 12
2015–09] Statutory Basis for, the Proposed Rule
Change months.’’ 11 In order to comply with
Rule 1004 of Regulation SCI, the
Self-Regulatory Organizations; 1. Purpose Exchange proposes to adopt Article 3,
Chicago Stock Exchange, Inc.; Notice
As adopted by the Commission, Rule 21 (Mandatory Participation
of Filing and Immediate Effectiveness
Regulation SCI applies to certain self- Testing of Backup Systems) requiring
of Proposed Rule Change To Adopt
regulatory organizations (including the mandatory participation in testing of
Business and Disaster Recovery Plans
Exchange), alternative trading systems Exchange backup systems, as described
Testing Requirements for Certain
(‘‘ATSs’’), plan processors, and exempt below.
Participants in Connection With First, in paragraph (a) of Rule 21, the
Regulation Systems Compliance and clearing agencies (collectively, ‘‘SCI
entities’’), and will require these SCI Exchange proposes to include language
Integrity from paragraph (a) of Rule 1004 of
entities to comply with requirements
November 4, 2015. with respect to the automated systems Regulation SCI to summarize the
Pursuant to Section 19(b)(1) of the central to the performance of their Exchange’s obligation pursuant to such
Securities Exchange Act of 1934 regulated activities. Among the rule. Specifically, the Exchange
(‘‘Act’’),1, and Rule 19b–4 2 thereunder, requirements of Regulation SCI is Rule proposes to state that ‘‘[p]ursuant to
notice is hereby given that on October 1001(a)(2)(v), which requires the Regulation SCI and with respect to the
29, 2015, the Chicago Stock Exchange, Exchange and other SCI entities to Exchange’s business continuity and
Inc. (‘‘CHX’’ or the ‘‘Exchange’’) filed maintain ‘‘[b]usiness continuity and disaster recovery plans, including its
with the Securities and Exchange disaster recovery plans that include backup systems, the Exchange is
Commission (‘‘Commission’’) the maintaining backup and recovery required to establish standards for the
proposed rule change as described in capabilities sufficiently resilient and designation of Participants that the
Items I and II below, which Items have geographically diverse and that are Exchange reasonably determines are,
been prepared by the Exchange. The reasonably designed to achieve next taken as a whole, the minimum
Commission is publishing this notice to business day resumption of trading and necessary for the maintenance of fair
solicit comments on the proposed rule two-hour resumption of critical SCI and orderly markets in the event of the
change from interested persons. systems following a wide-scale
9 The Exchange notes that it permits the trading
disruption.’’ 8 The Exchange has put
I. Self-Regulatory Organization’s of securities at two separate data centers; one in
Statement of the Terms of Substance of Secaucus, New Jersey (NY4) and the other in
asabaliauskas on DSK5VPTVN1PROD with NOTICES

3 Pursuant to CHX Article 1, Rule 1(s), a
the Proposed Rule Change Chicago (CH2). Each location serves as the primary
Participant is considered a ‘‘member’’ of the matching location for a security traded on the
Exchange for the purposes of the Act.
CHX proposes to adopt business 4 See Securities Exchange Act Release No. 73639
Exchange and no single security is simultaneously
continuity and disaster recovery plans traded at both locations, as the Exchange maintains
(November 19, 2014), 79 FR 72252 (December 5, only one book. In the event trading cannot occur at
(‘‘BC/DR plans’’) testing requirements 2014) (‘‘SCI Adopting Release’’). one location, the Exchange may move trading in
5 15 U.S.C. 78s(b)(3)(A).
affected securities to the other location, pursuant to
21 17 CFR 200.30–3(a)(12). 6 17 CFR 240.19b–4(f)(6). its BC/DR plans.
1 15 U.S.C. 78s(b)(1). 7 17 CFR 240.19b–4(f)(6)(iii). 10 17 CFR 242.1004(a).
2 17 CFR 240.19b–4. 8 17 CFR 242.1001(a)(2)(v). 11 17 CFR 242.1004(b).

VerDate Sep<11>2014 19:41 Nov 09, 2015 Jkt 238001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\10NON1.SGM 10NON1
Document Created: 2018-03-01 11:25:33
Document Modified: 2018-03-01 11:25:33
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 69731