80 FR 69738 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring Certain Member Organizations 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		69738-69741
FR Document		2015-28521
Federal Register, Volume 80 Issue 217 (Tuesday, November 10, 2015)
[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)]
[Notices]
[Pages 69738-69741]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-28521]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76343; File No. SR-NYSEMKT-2015-82]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Requiring Certain 
Member Organizations 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 MKT LLC (the ``Exchange'' or 
``NYSE MKT'') 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.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to require certain Exchange member 
organizations \4\ (``Members'') to participate in business continuity 
and disaster recovery plans (``BC/DR Plans'')

[[Page 69739]]

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.
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    \4\ The term ``member organization'' is defined in Rule 24 
(Office Rules) as ``a partnership, corporation or such other entity 
as the Exchange may, by Rule, permit to become a member 
organization, and which meets the qualifications specified in the 
Rules.'' The term ``member organization'' is defined in Rule 2(b)(i) 
(Equities Rules) as a registered broker or dealer (unless exempt 
pursuant to the Securities Exchange Act of 1934) (the ``Act'') that 
is a member of the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') or another registered securities exchange. Member 
organizations that transact business with public customers or 
conduct business on the Floor of the Exchange shall at all times be 
members of FINRA. A registered broker or dealer must also be 
approved by the Exchange and authorized to designate an associated 
natural person to effect transactions on the floor of the Exchange 
or any facility thereof. This term shall include a natural person so 
registered, approved and licensed who directly effects transactions 
on the floor of the Exchange or any facility thereof.'' The term 
``member organization'' also includes any registered broker or 
dealer that is a member of FINRA or a registered securities 
exchange, consistent with the requirements of section 2(b)(i) of 
this Rule, which does not own a trading license and agrees to be 
regulated by the Exchange as a member organization and which the 
Exchange has agreed to regulate.'' See Rule 2(b)(ii)--Equities.
    \5\ See Securities Exchange Act Release No. 73639 (November 19, 
2014), 79 FR 72252 (December 5, 2014) (``SCI Adopting Release'').
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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 Members to 
participate in testing of the operation of the Exchange's BC/DR plans.
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    \6\ 17 CFR 242.1001(a)(2)(v).
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    With respect to an SCI entity's BC/DR plans, including its backup 
systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI 
entity to: ``[e]stablish standards for the designation of those members 
or participants that the SCI entity reasonably determines are, taken as 
a whole, the minimum necessary for the maintenance of fair and orderly 
markets in the event of the activation of such plans.'' \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\
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    \7\ 17 CFR 242.1004(a).
    \8\ 17 CFR 242.1004(b).
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    To comply with Rule 1004 of Regulation SCI, the Exchange proposes 
to amend current Rule 431,\9\ governing mandatory testing of Exchange 
backup systems as described below. The requirements of revised Rule 431 
would apply to Members of the Exchange's equities and options 
markets.\10\
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    \9\ Current Rule 431 requires each member or member organization 
to participate in the testing of their computer systems to ascertain 
decimal pricing conversion compatibility of such systems. The 
Exchange proposes to delete the text of the current rule as it is 
obsolete and no longer applicable.
    \10\ A rule reference has been added to Rule 0--Equities to make 
clear that the proposed rule applies to Members that conduct 
equities transactions on the Exchange.
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    First, in paragraph (a) of revised Rule 431, the Exchange proposes 
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 the Exchange's business continuity and disaster recovery 
plans.
    Second, in paragraph (b) of revised Rule 431, the Exchange proposes 
to specify that Members that are designated pursuant to paragraph (a) 
of revised Rule 431 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 revised Rule 431, the Exchange proposes 
to make clear that Designated Market Makers,\11\ Specialists and e-
Specialists \12\ that have been determined by the Exchange to 
contribute a meaningful percentage of volume in securities they trade, 
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 Members 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 Members who collectively account for a certain percentage of market 
share on the Exchange.
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    \11\ The term ``Designated Market Maker'' (``DMM'') shall mean 
an individual member, officer, partner, employee or associated 
person of a Designated Market Maker Unit who is approved by the 
Exchange to act in the capacity of a DMM. See Rule 2(i)--Equities.
    \12\ The term ``Specialist'' 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 the provisions of 
Rule 920NY, and who meets the qualification requirements of Rule 
927NY(b). Each Specialist must be registered with the Exchange as a 
Market Maker. Any ATP Holder registered as a Market Maker with the 
Exchange is eligible to be qualified as a Specialist. See Rule 
900.2NY(76). E-Specialists are Members designated by the Exchange in 
an options class to fulfill certain obligations required of 
Specialists. See Rule 927.4NY.
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    Fourth, in paragraph (d) of revised Rule 431, 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 Members will be required to participate 
in such testing and notify those Members that are required to 
participate based on such criteria.\13\ The Exchange believes that 
proposed notice requirements are necessary to provide Members with 
proper advance notice when they become subject to the proposed rule. 
The proposed timeframes would also provide Members with adequate time 
to prepare for the testing, including any systems changes needed, to 
connect to the Exchange's backup systems.
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    \13\ The Exchange will publish the initial notice to Members no 
later than November 3, 2015.
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    Finally, in paragraph (e) of revised Rule 431, the Exchange 
proposes to make clear that Members not designated pursuant to 
standards established in paragraph (a) of revised Rule 431 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

[[Page 69740]]

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.''\14\
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    \14\ See SCI Adopting Release, supra note 5 at 72350.
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    The Exchange notes that it encourages all Members to connect to the 
Exchange's backup systems and to participate in testing of such 
systems. However, in adopting the requirements of revised Rule 431, the 
rule will subject only those Members 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 Members to participate in mandatory testing because 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,\15\ in general, and furthers the 
objectives of Sections 6(b)(5) of the Act,\16\ 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.
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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
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    The proposal would 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, as proposed, 
the Exchange would adopt clear and objective 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.'' \17\ The Exchange believes 
that this proposal is consistent with such authority and legal 
responsibility.
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    \17\ See SCI Adopting Release, supra note 5 at 72350.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
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 \18\ and Rule 19b-4(f)(6) thereunder.\19\ 
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) \20\ normally does not become operative prior to 30 days after 
the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\21\ 
the Commission may designate a shorter time if such action is 
consistent with the protection of investors and the public interest.
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    \18\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6).
    \21\ 17 CFR 240.19b-4(f)(6)(iii).
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    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.\22\
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    \22\ 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).
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    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) \23\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \23\ 15 U.S.C. 78s(b)(2)(B).
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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 rule-comments@sec.gov. Please include 
File Number SR-NYSEMKT-2015-82 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-NYSEMKT-2015-82. This 
file number should be included on the subject line if email is used. To 
help the

[[Page 69741]]

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 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-NYSEMKT-2015-82 and should be submitted on or before 
December 1, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-28521 Filed 11-9-15; 8:45 am]
 BILLING CODE 8011-01-P
69738 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices

of the Act and Rule 19b–4(f)(6)(iii) • Send an email to rule-comments@ SECURITIES AND EXCHANGE
thereunder. sec.gov. Please include File Number SR– COMMISSION
The Exchange has asked the NYSE–2015–51 on the subject line.
Commission to waive the 30-day [Release No. 34–76343; File No. SR–
Paper Comments NYSEMKT–2015–82]
operative delay so that the proposal may
become operative immediately upon
• Send paper comments in triplicate Self-Regulatory Organizations; NYSE
filing. The Exchange has stated that it is MKT LLC; Notice of Filing and
to Brent J. Fields, Secretary, Securities
requesting this waiver because NSX Immediate Effectiveness of Proposed
and Exchange Commission, 100 F Street
intends to reactivate its status as an Rule Change Requiring Certain
operating Participant of the SIPs, subject NE., Washington, DC 20549–1090.
Member Organizations To Participate
to regulatory approval, and that the All submissions should refer to File in Business Continuity and Disaster
proposed rule change would permit the Number SR–NYSE–2015–51. This file Recovery Plans Testing in Connection
Exchange to immediately provide the number should be included on the With Regulation Systems Compliance
enhanced transparency in Exchange subject line if email is used. To help the and Integrity
rules regarding which data feeds the Commission process and review your
Exchange would use for NSX. The November 4, 2015.
comments more efficiently, please use
Commission believes that waiving the Pursuant to Section 19(b)(1) 1 of the
only one method. The Commission will
30-day operative delay is consistent Securities Exchange Act of 1934 (the
post all comments on the Commission’s ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
with the protection of investors and the Internet Web site (http://www.sec.gov/
public interest because this waiver will notice is hereby given that on October
rules/sro.shtml). Copies of the 26, 2015, NYSE MKT LLC (the
enable the Exchange to disclose in a
submission, all subsequent ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
timely manner that it will be using NSX
amendments, all written statements the Securities and Exchange
SIP data for purpose of fulfilling its
order handling and execution, order with respect to the proposed rule Commission (the ‘‘Commission’’) the
routing, and regulatory compliance change that are filed with the proposed rule change as described in
obligations, if and when NSX receives Commission, and all written Items I and II below, which Items have
the necessary regulatory approval to communications relating to the been prepared by the self-regulatory
recommence trading.10 For this reason, proposed rule change between the organization. The Commission is
the Commission hereby waives the 30- Commission and any person, other than publishing this notice to solicit
day operative delay requirement and those that may be withheld from the comments on the proposed rule change
designates the proposed rule change as public in accordance with the from interested persons.
operative upon filing.11 provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s
At any time within 60 days of the available for Web site viewing and Statement of the Terms of Substance of
filing of such proposed rule change, the printing in the Commission’s Public the Proposed Rule Change
Commission summarily may Reference Room, 100 F Street NE.,
temporarily suspend such rule change if Washington, DC 20549 on official The Exchange proposes to require
it appears to the Commission that such certain Exchange member
business days between the hours of
action is necessary or appropriate in the organizations 4 (‘‘Members’’) to
10:00 a.m. and 3:00 p.m. Copies of such
public interest, for the protection of participate in business continuity and
filing also will be available for disaster recovery plans (‘‘BC/DR Plans’’)
investors, or otherwise in furtherance of inspection and copying at the principal
the purposes of the Act. If the offices of the Exchange. All comments 1 15 U.S.C.78s(b)(1).
Commission takes such action, the received will be posted without change; 2 15 U.S.C. 78a.
Commission shall institute proceedings the Commission does not edit personal 3 17 CFR 240.19b–4.
under Section 19(b)(2)(B) 12 of the Act to
identifying information from 4 The term ‘‘member organization’’ is defined in
determine whether the proposed rule Rule 24 (Office Rules) as ‘‘a partnership,
submissions. You should submit only
change should be approved or corporation or such other entity as the Exchange
disapproved. information that you wish to make may, by Rule, permit to become a member
available publicly. All submissions organization, and which meets the qualifications
IV. Solicitation of Comments should refer to File Number SR–NYSE– specified in the Rules.’’ The term ‘‘member
organization’’ is defined in Rule 2(b)(i) (Equities
Interested persons are invited to 2015–51, and should be submitted on or Rules) as a registered broker or dealer (unless
submit written data, views, and before December 1, 2015.13 exempt pursuant to the Securities Exchange Act of
arguments concerning the foregoing, 1934) (the ‘‘Act’’) that is a member of the Financial
For the Commission, by the Division of Industry Regulatory Authority, Inc. (‘‘FINRA’’) or
including whether the proposed rule Trading and Markets, pursuant to delegated another registered securities exchange. Member
change is consistent with the Act. authority. organizations that transact business with public
Comments may be submitted by any of Brent J. Fields,
customers or conduct business on the Floor of the
the following methods: Exchange shall at all times be members of FINRA.
Secretary. A registered broker or dealer must also be approved
Electronic Comments [FR Doc. 2015–28505 Filed 11–9–15; 8:45 am] by the Exchange and authorized to designate an
associated natural person to effect transactions on
• Use the Commission’s Internet BILLING CODE 8011–01–P the floor of the Exchange or any facility thereof.
comment form (http://www.sec.gov/ This term shall include a natural person so
asabaliauskas on DSK5VPTVN1PROD with NOTICES

rules/sro.shtml); or registered, approved and licensed who directly
effects transactions on the floor of the Exchange or
any facility thereof.’’ The term ‘‘member
10 In granting this waiver, the Commission does
organization’’ also includes any registered broker or
not express an opinion on whether or not NSX will dealer that is a member of FINRA or a registered
receive regulatory approval to recommence trading. securities exchange, consistent with the
11 For purposes only of waiving the 30-day
requirements of section 2(b)(i) of this Rule, which
operative delay, the Commission has considered the does not own a trading license and agrees to be
proposed rule’s impact on efficiency, competition, regulated by the Exchange as a member
and capital formation. See 15 U.S.C. 78c(f). organization and which the Exchange has agreed to
12 15 U.S.C. 78s(b)(2)(B). 13 17 CFR 200.30–3(a)(12). regulate.’’ See Rule 2(b)(ii)—Equities.

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69740 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices

entities to permit non-designated adopt and enforce rules (including rules 19b4(f)(6)(iii),21 the Commission may
members or participants to participate to comply with Regulation SCI’s designate a shorter time if such action
in the testing of the SCE entity’s BC/DR requirements relating to BC/DR testing) is consistent with the protection of
plans if they request to do so.’’14 applicable to their members or investors and the public interest.
The Exchange notes that it encourages participants that are designed to, among The Exchange has asked the
all Members to connect to the other things, foster cooperation and Commission to waive the 30-day
Exchange’s backup systems and to coordination with persons engaged in operative delay so that the proposal may
participate in testing of such systems. regulating, clearing, settling, processing become operative immediately upon
However, in adopting the requirements information with respect to, and filing. The Commission believes that
of revised Rule 431, the rule will subject facilitating transactions in securities, to waiving the 30-day operative delay is
only those Members to mandatory remove impediments to and perfect the consistent with the protection of
testing that the Exchange believes are, mechanism of a free and open market investors and the public interest as it
taken as a whole, the minimum and a national market system, and, in will allow the Exchange to incorporate
necessary to maintain fair and orderly general, to protect investors and the changes required under Regulation SCI,
markets. The Exchange believes that public interest.’’ 17 The Exchange such as establishing standards for
designating Members to participate in believes that this proposal is consistent designating BCP/DR participants, prior
mandatory testing because they, for with such authority and legal to the November 3, 2015 compliance
example, account for a significant responsibility. date. Accordingly, the Commission
portion of the Exchange’s overall B. Self-Regulatory Organization's designates the proposed rule change to
volume or maintain exclusive Statement on Burden on Competition be operative upon filing.22
responsibilities with respect to At any time within 60 days of the
Exchange-listed securities is a The Exchange does not believe that filing of such proposed rule change, the
reasonable means to ensure the the proposed rule change would impose Commission summarily may
maintenance of a fair and orderly any burden on competition not temporarily suspend such rule change if
market on the Exchange. necessary or appropriate in furtherance it appears to the Commission that such
of the purposes of the Act. To the action is necessary or appropriate in the
2. Statutory Basis contrary, the proposal is not a public interest, for the protection of
The Exchange believes that the competitive proposal but rather is investors, or otherwise in furtherance of
proposed rule change is consistent with necessary for the Exchange’s the purposes of the Act. If the
Section 6(b) of the Act,15 in general, and compliance with Regulation SCI. Commission takes such action, the
furthers the objectives of Sections C. Self-Regulatory Organization's Commission shall institute proceedings
6(b)(5) of the Act,16 in particular, Statement on Comments on the under Section 19(b)(2)(B) 23 of the Act to
because it is designed to prevent Proposed Rule Change Received From determine whether the proposed rule
fraudulent and manipulative acts and Members, Participants, or Others change should be approved or
practices, to promote just and equitable disapproved.
principles of trade, to foster cooperation No written comments were solicited
and coordination with persons engaged or received with respect to the proposed IV. Solicitation of Comments
in regulating, clearing, settling, rule change. Interested persons are invited to
processing information with respect to, III. Date of Effectiveness of the submit written data, views, and
and facilitating transactions in Proposed Rule Change and Timing for arguments concerning the foregoing,
securities, to remove impediments to, Commission Action including whether the proposed rule
and perfect the mechanisms of, a free change is consistent with the Act.
The Exchange has filed the proposed
and open market and a national market Comments may be submitted by any of
rule change pursuant to Section
system and, in general, to protect 19(b)(3)(A)(iii) of the Act 18 and Rule the following methods:
investors and the public interest and 19b–4(f)(6) thereunder.19 Because the Electronic Comments
because it is not designed to permit proposed rule change does not: (i)
unfair discrimination between • Use the Commission’s Internet
Significantly affect the protection of comment form (http://www.sec.gov/
customers, issuers, brokers, or dealers. investors or the public interest; (ii)
The proposal would ensure that the rules/sro.shtml); or
impose any significant burden on • Send an email to rule-comments@
Members necessary to ensure the competition; and (iii) become operative
maintenance of a fair and orderly sec.gov. Please include File Number SR–
prior to 30 days from the date on which NYSEMKT–2015–82 on the subject line.
market are properly designated it was filed, or such shorter time as the
consistent with Rule 1004 of Regulation Commission may designate, if Paper Comments
SCI. Specifically, as proposed, the consistent with the protection of • Send paper comments in triplicate
Exchange would adopt clear and investors and the public interest, the to Brent J. Fields, Secretary, Securities
objective criteria with respect to the proposed rule change has become and Exchange Commission, 100 F Street
designation of Members that are effective pursuant to Section 19(b)(3)(A) NE., Washington, DC 20549–1090.
required to participate in the testing of of the Act and Rule 19b–4(f)(6)(iii)
the Exchange’s BC/DR plans, as well as All submissions should refer to File
thereunder. A proposed rule change Number SR–NYSEMKT–2015–82. This
appropriate notification regarding such filed under Rule 19b–4(f)(6) 20 normally file number should be included on the
asabaliauskas on DSK5VPTVN1PROD with NOTICES

designation. As set forth in the SCI does not become operative prior to 30
Adopting Release, ‘‘SROs have the subject line if email is used. To help the
days after the date of the filing.
authority, and legal responsibility, However, pursuant to Rule 21 17 CFR 240.19b–4(f)(6)(iii).
under Section 6 of the Exchange Act, to 22 For purposes only of waiving the 30-day
17 See SCI Adopting Release, supra note 5 at operative delay, the Commission has also
14 See SCI Adopting Release, supra note 5 at 72350. considered the proposed rule’s impact on
72350. 18 15 U.S.C. 78s(b)(3)(A)(iii).
efficiency, competition, and capital formation. See
15 15 U.S.C. 78f(b). 19 17 CFR 240.19b–4(f)(6). 15 U.S.C. 78c(f).
16 15 U.S.C. 78f(b)(5). 20 17 CFR 240.19b–4(f)(6). 23 15 U.S.C. 78s(b)(2)(B).

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Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices 69741

Commission process and review your and (10), permit consideration of the The text of the proposed rule change
comments more efficiently, please use scheduled matter at the Closed Meeting. is available on the Exchange’s Web site
only one method. The Commission will Commissioner Aguilar, as duty (http://www.cboe.com/AboutCBOE/
post all comments on the Commission’s officer, voted to consider the items CBOELegalRegulatoryHome.aspx), at
Internet Web site (http://www.sec.gov/ listed for the Closed Meeting in closed the Exchange’s Office of the Secretary,
rules/sro.shtml). Copies of the session. and at the Commission’s Public
submission, all subsequent The subject matter of the Closed Reference Room.
amendments, all written statements Meeting will be: II. Self-Regulatory Organization’s
with respect to the proposed rule Institution and settlement of Statement of the Purpose of, and
change that are filed with the injunctive actions; Statutory Basis for, the Proposed Rule
Commission, and all written Institution and settlement of Change
communications relating to the administrative proceedings; and
proposed rule change between the Other matters relating to enforcement In its filing with the Commission, the
Commission and any person, other than proceedings. Exchange included statements
those that may be withheld from the At times, changes in Commission concerning the purpose of and basis for
public in accordance with the priorities require alterations in the the proposed rule change and discussed
provisions of 5 U.S.C. 552, will be scheduling of meeting items. any comments it received on the
available for Web site viewing and For further information and to proposed rule change. The text of these
printing in the Commission’s Public ascertain what, if any, matters have been statements may be examined at the
Reference Section, 100 F Street NE., added, deleted or postponed, please places specified in Item IV below. The
Washington, DC 20549–1090. Copies of contact the Office of the Secretary at Exchange has prepared summaries, set
the filing will also be available for (202) 551–5400. forth in sections A, B, and C below, of
inspection and copying at the NYSE’s the most significant aspects of such
Dated: November 5, 2015. statements.
principal office and on its Internet Web
Brent J. Fields,
site at www.nyse.com. All comments A. Self-Regulatory Organization's
Secretary.
received will be posted without change; Statement of the Purpose of, and
the Commission does not edit personal [FR Doc. 2015–28699 Filed 11–6–15; 11:15 am]
Statutory Basis for, the Proposed Rule
identifying information from BILLING CODE 8011–01–P
Change
submissions. You should submit only
information that you wish to make 1. Purpose
available publicly. All submissions SECURITIES AND EXCHANGE The purpose of this proposed rule
should refer to File Number SR– COMMISSION change is to permit the Exchange to list
NYSEMKT–2015–82 and should be [Release No. 34–76354; File No. SR–CBOE– and trade options that overlie a reduced
submitted on or before December 1, 2015–099] value of the FTSE China 50 Index
2015. (‘‘China 50 options’’). China 50 options
Self-Regulatory Organizations; would be A.M., cash-settled contracts
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Chicago Board Options Exchange, with European-style exercise.
authority.24 Incorporated; Notice of Filing of a
FTSE China 50 Index Design,
Brent J. Fields, Proposed Rule Change To List and
Methodology and Dissemination
Secretary. Trade Options That Overlie a Reduced
Value of the FTSE China 50 Index The FTSE China 50 Index is a free
[FR Doc. 2015–28521 Filed 11–9–15; 8:45 am] float-adjusted market capitalization
BILLING CODE 8011–01–P November 4, 2015. index that is designed to measure the
Pursuant to Section 19(b)(1) of the performance of 50 of the largest and
Securities Exchange Act of 1934 (the most liquid Chinese stocks (H Shares,3
SECURITIES AND EXCHANGE ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Red Chips 4 and P Chips 5) listed and
COMMISSION notice is hereby given that on October trading on the Stock Exchange of Hong
Sunshine Act Meeting 30, 2015, Chicago Board Options Kong (SEHK).6
Exchange, Incorporated (the ‘‘Exchange’’ The FTSE China 50 Index was
Notice is hereby given, pursuant to or ‘‘CBOE’’) filed with the Securities launched on April 19, 2001 and is
the provisions of the Government in the and Exchange Commission (the
Sunshine Act, Pub. L. 94–409, that the ‘‘Commission’’) the proposed rule 3 H Shares are securities of companies

Securities and Exchange Commission change as described in Items I, II, and incorporated in the People’s Republic of China
(PRC) and listed on SEHK. They can only be traded
will hold a Closed Meeting on III below, which Items have been by Chinese investors under the Qualified Domestic
Thursday, November 12, 2015 at 2 p.m. prepared by the Exchange. The Institutional Investors Scheme (QDII). There are no
Commissioners, Counsel to the Commission is publishing this notice to restrictions for international investors.
4 Red Chip companies are incorporated outside
Commissioners, the Secretary to the solicit comments on the proposed rule
the PRC and traded on SEHK. A Red Chip company
Commission, and recording secretaries change from interested persons. has at least 30 percent of its shares in aggregate held
will attend the Closed Meeting. Certain directly or indirectly by mainland state entities, and
staff members who have an interest in I. Self-Regulatory Organization’s at least 50 percent of its revenue or assets derived
Statement of the Terms of Substance of from mainland China.
asabaliauskas on DSK5VPTVN1PROD with NOTICES

the matters also may be present.
The General Counsel of the the Proposed Rule Change 5 P Chip companies are incorporated outside the

PRC that trade on SEHK. A P Chip is a company
Commission, or her designee, has The Exchange is proposing to amend that is controlled by Mainland China individuals,
certified that, in her opinion, one or its rules to list and trade options that with the establishment and origin of the company
more of the exemptions set forth in 5 overlie a reduced value of the FTSE in Mainland China and at least 50 percent of its
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) revenue or assets derived from mainland China.
China 50 Index. 6 See FTSE China 50 Index fact sheet (dated
and 17 CFR 200.402(a)(3), (5), (7), 9(ii) August 31, 2015) located at: http://www.ftse.com/
1 15 U.S.C. 78s(b)(1). Analytics/FactSheets/temp/a5b0d638-068e-41d9-
24 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. b169-be9838d8227a.pdf.

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Document Created: 2018-03-01 11:25:45
Document Modified: 2018-03-01 11:25:45
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 69738