80 FR 69745 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring Certain ETP 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)
Federal Register Volume 80, Issue 217 (November 10, 2015)
| Page Range | 69745-69748 | |
| FR Document | 2015-28520 |
[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)] [Notices] [Pages 69745-69748] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28520] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76342; File No. SR-NYSEARCA-2015-96] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring Certain ETP 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. --------------------------------------------------------------------------- [[Page 69746]] I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to require certain ETP HoldersSec. \4\ to participate in 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 NYSE Arca Equities Rule 1.1(n), the term ``ETP Holder'' refers to a sole proprietorship, partnership, corporation, limited liability company or other organization in good standing that has been issued an ETP. An ETP Holder must be a registered broker or dealer pursuant to Section 15 of the Act. NYSE Arca Equities Rule 1.1(m) defines ``ETP'' as an Equity 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 ETP 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 amend current Rule 2.2,\9\ governing mandatory testing of Exchange backup systems as described below. The requirements of revised Rule 2.2 would apply to ETP Holders that transact on the Exchange's equities market. --------------------------------------------------------------------------- \9\ Current Rule 2.2 requires each ETP Holder that has an electronic interface with the Exchange to participate in industry testing of computer systems designed to ascertain decimal pricing conversion compatibility of such computer systems for the implementation of decimal trading. The Exchange proposes to delete the text of the current rule as it is obsolete and no longer applicable. --------------------------------------------------------------------------- First, in paragraph (a) of revised Rule 2.2, the Exchange proposes to establish standards for the designation of ETP 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 revised Rule 2.2, the Exchange proposes to specify that ETP Holders that are designated pursuant to paragraph (a) of revised Rule 2.2 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 2.2, the Exchange proposes to make clear that Lead Market Makers \10\ 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 ETP 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 ETP Holders who collectively account for a certain percentage of market share on the Exchange. --------------------------------------------------------------------------- \10\ The term ``Lead Market Maker'' means a registered Market Maker that is the exclusive Designated Market Maker in listings for which the Corporation is the primary market. See Rule 1.1(ccc). --------------------------------------------------------------------------- Fourth, in paragraph (d) of revised Rule 2.2, 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 ETP Holders will be required to participate in such testing and notify those ETP Holders that are required to participate based on such criteria.\11\ The Exchange believes that the proposed notice requirements are necessary to provide ETP Holders with proper advance notice in the event they become subject to the proposed rule. The proposed timeframes would also provide ETP Holders with adequate time to prepare for the testing, including any systems changes needed, to connect to the Exchange's backup systems. --------------------------------------------------------------------------- \11\ The Exchange will publish the initial notice to OTP Holders no later than November 3, 2015. --------------------------------------------------------------------------- Finally, in paragraph (e) of revised Rule 2.2, the Exchange proposes to make clear that ETP Holders not designated pursuant to standards established in paragraph (a) of revised Rule 2.2 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 [[Page 69747]] ``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.'' \12\ --------------------------------------------------------------------------- \12\ See SCI Adopting Release, supra note 5 at 72350. --------------------------------------------------------------------------- The Exchange notes that it encourages all ETP Holders to connect to the Exchange's backup systems and to participate in testing of such systems. However, in adopting the requirements in revised Rule 2.2, the rule will subject only those ETP 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 ETP Holders 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,\13\ in general, and furthers the objectives of Sections 6(b)(5) of the Act,\14\ 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The proposal will ensure that the ETP 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 ETP 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.'' \15\ The Exchange believes that this proposal is consistent with such authority and legal responsibility. --------------------------------------------------------------------------- \15\ 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 \16\ and Rule 19b-4(f)(6) thereunder.\17\ 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. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(3)(A)(iii). \17\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \18\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\19\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \18\ 17 CFR 240.19b-4(f)(6). \19\ 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.\20\ --------------------------------------------------------------------------- \20\ 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) \21\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \21\ 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-NYSEARCA-2015-96 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-2015-96. This file number should be included on the [[Page 69748]] 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 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- 96 and should be submitted on or before December 1, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-28520 Filed 11-9-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices 69745
SEHK and trade a large volume with C. Self-Regulatory Organization's provisions of 5 U.S.C. 552, will be
respect to ETFs and options on those Statement on Comments on the available for Web site viewing and
ETFs, the Exchange believes that the Proposed Rule Change Received From printing in the Commission’s Public
initial listing requirements are Members, Participants, or Others Reference Room, 100 F Street NE.,
appropriate to trade options on the No written comments were solicited Washington, DC 20549 on official
index. In addition, similar to other or received with respect to the proposed business days between the hours of
broad-based indexes, the Exchange rule change. 10:00 a.m. and 3:00 p.m. Copies of the
proposes to adopt various maintenance filing also will be available for
criteria, which would require continual III. Date of Effectiveness of the inspection and copying at the principal
compliance and periodic compliance. Proposed Rule Change and Timing for
office of the Exchange. All comments
Commission Action
China 50 options would be subject to received will be posted without change;
the same rules that currently govern Within 45 days of the date of the Commission does not edit personal
other CBOE index options, including publication of this notice in the Federal identifying information from
Register or within such longer period submissions. You should submit only
sales practice rules,31 margin
up to 90 days (i) as the Commission may information that you wish to make
requirements 32 and trading rules.33 The
designate if it finds such longer period available publicly. All submissions
Exchange would apply the same default to be appropriate and publishes its
position limits for broad-based index should refer to File Number SR–CBOE–
reasons for so finding or (ii) as to which 2015–099 and should be submitted on
options to China 50 options. the Exchange consents, the Commission
Specifically, the applicable position or before December 1, 2015.
will:
limits would be 25,000 contracts A. By order approve or disapprove For the Commission, by the Division of
(standard limit/on the same side of the such proposed rule change, or Trading and Markets, pursuant to delegated
market) and 15,000 contracts (near-term B. institute proceedings to determine authority.34
limit). The exercise limit for China 50 whether the proposed rule change
options would be equivalent to the should be disapproved. Brent J. Fields,
position limit for China 50 options. Secretary.
IV. Solicitation of Comments
These same position and exercise limits [FR Doc. 2015–28504 Filed 11–9–15; 8:45 am]
would apply to FLEX trading. All Interested persons are invited to BILLING CODE 8011–01–P
position limit hedge exemptions would submit written data, views, and
apply. The Exchange would apply arguments concerning the foregoing,
existing index option margin including whether the proposed rule SECURITIES AND EXCHANGE
requirements for the purchase and sale change is consistent with the Act. COMMISSION
of China 50 options. Comments may be submitted by any of
the following methods:
The Exchange represents that it has an [Release No. 34–76342; File No. SR–
adequate surveillance program in place Electronic Comments NYSEARCA–2015–96]
for China 50 options. The Exchange also • Use the Commission’s Internet
represents that it has the necessary Self-Regulatory Organizations; NYSE
comment form (http://www.sec.gov/
systems capacity to support the new rules/sro.shtml); or Arca, Inc.; Notice of Filing and
option series. • Send an email to rule-comments@ Immediate Effectiveness of Proposed
sec.gov. Please include File Number SR– Rule Change Requiring Certain ETP
B. Self-Regulatory Organization's Holders To Participate in Business
CBOE–2015–099 on the subject line.
Statement on Burden on Competition Continuity and Disaster Recovery
Paper Comments Plans Testing in Connection With
CBOE does not believe that the
proposed rule change will impose any • Send paper comments in triplicate Regulation Systems Compliance and
to Secretary, Securities and Exchange Integrity
burden on competition not necessary or
Commission, 100 F Street NE.,
appropriate in furtherance of the November 4, 2015.
Washington, DC 20549–1090.
purposes of the Act. Specifically, CBOE Pursuant to Section 19(b)(1) 1 of the
believes that the introduction of new All submissions should refer to File
Number SR–CBOE–2015–099. This file Securities Exchange Act of 1934 (the
cash index options will enhance ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
number should be included on the
competition among market participants notice is hereby given that, on October
subject line if email is used. To help the
and will provide a new type of options 26, 2015, NYSE Arca, Inc. (the
Commission process and review your
to compete with domestic products such ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
comments more efficiently, please use
as FXI options, E-Mini FTSE China 50 only one method. The Commission will the Securities and Exchange
Index Future and European-traded post all comments on the Commission’s Commission (the ‘‘Commission’’) the
derivatives on the FTSE China 50 Index Internet Web site (http://www.sec.gov/ proposed rule change as described in
to the benefit of investors and the rules/sro.shtml). Copies of the Items I and II below, which Items have
marketplace. submission, all subsequent been prepared by the self-regulatory
amendments, all written statements
asabaliauskas on DSK5VPTVN1PROD with NOTICES
organization. The Commission is
31 See Chapter IX (Doing Business with the
with respect to the proposed rule publishing this notice to solicit
change that are filed with the comments on the proposed rule change
Public).
32 See Chapter XII (Margins).
Commission, and all written from interested persons.
33 See e.g., Chapters IV (Business Conduct), VI
communications relating to the
(Doing Business on the Exchange Floor), Chapter proposed rule change between the 34 17 CFR 200.30–3(a)(12).
VIII (Market-Makers, Trading Crowds and Modified Commission and any person, other than 1 15 U.S.C.78s(b)(1).
Trading Systems) and Chapter XXIV (Index those that may be withheld from the 2 15 U.S.C. 78a.
Options). public in accordance with the 3 17 CFR 240.19b–4.
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![69746 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
I. Self-Regulatory Organization’s geographically diverse and that are Second, in paragraph (b) of revised
Statement of the Terms of Substance of reasonably designed to achieve next Rule 2.2, the Exchange proposes to
the Proposed Rule Change business day resumption of trading and specify that ETP Holders that are
The Exchange proposes to require two-hour resumption of critical SCI designated pursuant to paragraph (a) of
certain ETP Holders§4 to participate in systems following a wide-scale revised Rule 2.2 would be required to
business continuity and disaster disruption.’’ 6 As a matter of course, the participate in scheduled functional and
recovery plans (‘‘BC/DR Plans’’) testing Exchange has put extensive time and performance testing of the Exchange’s
in connection with Regulation Systems resources toward planning for system business continuity and disaster
Compliance and Integrity (‘‘Regulation failures and already maintains robust recovery plans, which shall not be less
SCI’’).5 The text of the proposed rule BC/DR plans consistent with the than once every 12 months.
proposed rule. As set forth below, in Third, in paragraph (c) of revised Rule
change is available on the Exchange’s
connection with Regulation SCI, the 2.2, the Exchange proposes to make
Web site at www.nyse.com, at the
Exchange is proposing to require certain clear that Lead Market Makers 10 that
principal office of the Exchange, and at
ETP Holders to participate in testing of have been determined by the Exchange
the Commission’s Public Reference to contribute a meaningful percentage of
Room. the operation of the Exchange’s BC/DR
plans. the Exchange’s overall volume,
II. Self-Regulatory Organization’s With respect to an SCI entity’s BC/DR measured on a quarterly or monthly
Statement of the Purpose of, and plans, including its backup systems, basis, will be required to participate in
Statutory Basis for, the Proposed Rule paragraph (a) of Rule 1004 of Regulation scheduled functional and performance
Change SCI requires each SCI entity to: testing. The Exchange further proposes
‘‘[e]stablish standards for the that it may also consider other factors in
In its filing with the Commission, the
designation of those members or determining the ETP Holders that will
self-regulatory organization included
participants that the SCI entity be required to participate in scheduled
statements concerning the purpose of,
reasonably determines are, taken as a functional and performance testing,
and basis for, the proposed rule change
whole, the minimum necessary for the including average daily volume traded
and discussed any comments it received
maintenance of fair and orderly markets on the Exchange measured on a
on the proposed rule change. The text
in the event of the activation of such quarterly or monthly basis, or ETP
of those statements may be examined at
plans.’’ 7 Paragraph (b) of Rule 1004 Holders who collectively account for a
the places specified in Item IV below.
further requires each SCI entity to certain percentage of market share on
The Exchange has prepared summaries, the Exchange.
set forth in sections A, B, and C below, ‘‘[d]esignate members or participants
pursuant to the standards established in Fourth, in paragraph (d) of revised
of the most significant parts of such Rule 2.2, the Exchange proposes that at
statements. paragraph (a) of [Rule 1004] and require
least three (3) months prior to a
participation by such designated
A. Self-Regulatory Organization's scheduled functional and performance
members or participants in scheduled
Statement of the Purpose of, and the testing of the Exchange’s business
functional and performance testing of
Statutory Basis for, the Proposed Rule continuity and disaster recovery plans,
the operation of such plans, in the
Change the Exchange will publish the criteria to
manner and frequency specified by the
be used by the Exchange to determine
1. Purpose SCI entity, provided that such frequency
which ETP Holders will be required to
shall not be less than once every 12
As adopted by the Commission, participate in such testing and notify
months.’’ 8
Regulation SCI applies to certain self- those ETP Holders that are required to
To comply with Rule 1004 of participate based on such criteria.11 The
regulatory organizations (including the
Regulation SCI, the Exchange proposes Exchange believes that the proposed
Exchange), alternative trading systems
to amend current Rule 2.2,9 governing notice requirements are necessary to
(‘‘ATSs’’), plan processors, and exempt
mandatory testing of Exchange backup provide ETP Holders with proper
clearing agencies (collectively, ‘‘SCI
systems as described below. The advance notice in the event they become
entities’’), and will require these SCI
requirements of revised Rule 2.2 would subject to the proposed rule. The
entities to comply with requirements
apply to ETP Holders that transact on proposed timeframes would also
with respect to the automated systems
the Exchange’s equities market. provide ETP Holders with adequate
central to the performance of their
First, in paragraph (a) of revised Rule time to prepare for the testing, including
regulated activities. Among the
2.2, the Exchange proposes to establish any systems changes needed, to connect
requirements of Regulation SCI is Rule
standards for the designation of ETP to the Exchange’s backup systems.
1001(a)(2)(v), which requires the
Holders that the Exchange reasonably Finally, in paragraph (e) of revised
Exchange and other SCI entities to
determines are, taken as a whole, the Rule 2.2, the Exchange proposes to
maintain ‘‘[b]usiness continuity and
minimum necessary for the make clear that ETP Holders not
disaster recovery plans that include
maintenance of fair and orderly markets designated pursuant to standards
maintaining backup and recovery
in the event of the activation of the established in paragraph (a) of revised
capabilities sufficiently resilient and
Exchange’s business continuity and Rule 2.2 are permitted to connect to the
4 Pursuant to NYSE Arca Equities Rule 1.1(n), the
disaster recovery plans. Exchange’s backup systems and may
term ‘‘ETP Holder’’ refers to a sole proprietorship,
6 17
participate in testing of such systems.
partnership, corporation, limited liability company CFR 242.1001(a)(2)(v).
asabaliauskas on DSK5VPTVN1PROD with NOTICES
7 17 CFR 242.1004(a).
Proposed paragraph (e) is consistent
or other organization in good standing that has been
issued an ETP. An ETP Holder must be a registered 8 17 CFR 242.1004(b). with Regulation SCI, which encourages
broker or dealer pursuant to Section 15 of the Act. 9 Current Rule 2.2 requires each ETP Holder that
NYSE Arca Equities Rule 1.1(m) defines ‘‘ETP’’ as has an electronic interface with the Exchange to 10 The term ‘‘Lead Market Maker’’ means a
an Equity Trading Permit issued by the Exchange participate in industry testing of computer systems registered Market Maker that is the exclusive
for effecting approved securities transactions on the designed to ascertain decimal pricing conversion Designated Market Maker in listings for which the
Exchange. compatibility of such computer systems for the Corporation is the primary market. See Rule
5 See Securities Exchange Act Release No. 73639 implementation of decimal trading. The Exchange 1.1(ccc).
(November 19, 2014), 79 FR 72252 (December 5, proposes to delete the text of the current rule as it 11 The Exchange will publish the initial notice to
2014) (‘‘SCI Adopting Release’’). is obsolete and no longer applicable. OTP Holders no later than November 3, 2015.
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![69748 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
subject line if email is used. To help the 20, 2015, NYSE Arca, Inc. (the handling and execution, order routing,
Commission process and review your ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with and regulatory compliance at the
comments more efficiently, please use the Securities and Exchange Exchange include the exclusive
only one method. The Commission will Commission (‘‘SEC’’ or ‘‘Commission’’) securities information processor (‘‘SIP’’)
post all comments on the Commission’s the proposed rule change as described data feeds 4 or proprietary data feeds
Internet Web site (http://www.sec.gov/ in Items I and II below, which Items from individual market centers (‘‘Direct
rules/sro.shtml). Copies of the have been prepared by the Exchange. Feed’’). On February 24, 2015, the
submission, all subsequent The Commission is publishing this Exchange adopted Commentary .01 to
amendments, all written statements notice to solicit comments on the Rule 7.37 to specify which data feeds
with respect to the proposed rule proposed rule change from interested that the Exchange uses for the handling,
change that are filed with the persons. execution, and routing of orders, as well
Commission, and all written as for regulatory compliance.5
I. Self-Regulatory Organization’s
communications relating to the To reflect that, subject to regulatory
Statement of the Terms of Substance of
proposed rule change between the
the Proposed Rule Change approval, NSX intends to reopen trading
Commission and any person, other than
The Exchange proposes to specify in and has reactivated its connections to
those that may be withheld from the
Exchange rules the Exchange’s use of the SIPs, the Exchange proposes to
public in accordance with the
data feeds from National Stock amend Commentary .01 to Rule 7.37
provisions of 5 U.S.C. 552, will be
Exchange, Inc. for order handling and and Rule 7.37P(d) to specify which data
available for Web site viewing and
execution, order routing, and regulatory feeds the Exchange would use for NSX.
printing in the Commission’s Public
compliance. The text of the proposed As proposed, the Exchange would use
Reference Section, 100 F Street NE.,
rule change is available on the the SIP Data Feed for NSX and would
Washington, DC 20549–1090. Copies of
Exchange’s Web site at www.nyse.com, not have a secondary source.
the filing will also be available for
inspection and copying at the NYSE’s at the principal office of the Exchange, 2. Statutory Basis
principal office and on its Internet Web and at the Commission’s Public
site at www.nyse.com. All comments Reference Room. The proposed rule change is
received will be posted without change; consistent with Section 6(b) of the
II. Self-Regulatory Organization’s
the Commission does not edit personal Securities Exchange Act of 1934 (the
Statement of the Purpose of, and
identifying information from ‘‘Act’’),6 in general, and furthers the
Statutory Basis for, the Proposed Rule
submissions. You should submit only objectives of Section 6(b)(5),7 in
Change
information that you wish to make particular, because it is designed to
available publicly. All submissions In its filing with the Commission, the prevent fraudulent and manipulative
should refer to File Number SR– self-regulatory organization included acts and practices, to promote just and
NYSEARCA–2015–96 and should be statements concerning the purpose of, equitable principles of trade, to foster
submitted on or before December 1, and basis for, the proposed rule change cooperation and coordination with
2015. and discussed any comments it received persons engaged in facilitating
on the proposed rule change. The text transactions in securities, to remove
For the Commission, by the Division of
Trading and Markets, pursuant to delegated of those statements may be examined at impediments to, and perfect the
authority.22 the places specified in Item IV below. mechanism of, a free and open market
Brent J. Fields, The Exchange has prepared summaries, and a national market system and, in
Secretary.
set forth in sections A, B, and C below, general, to protect investors and the
of the most significant parts of such public interest. The Exchange believes
[FR Doc. 2015–28520 Filed 11–9–15; 8:45 am]
statements. that the proposed rule change removes
BILLING CODE 8011–01–P
A. Self-Regulatory Organization's impediments to and perfects the
Statement of the Purpose of, and the mechanism of a free and open market
SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule because it provides enhanced
COMMISSION Change transparency to better assess the quality
[Release No. 34–76347; File No. SR– 1. Purpose 4 The SIP feeds are disseminated pursuant to
NYSEARCA–2015–98] effective joint-industry plans as required by Rule
The Exchange proposes to amend
603(b) of Regulation NMS. 17 CFR 242.603(b). The
Self-Regulatory Organizations; NYSE NYSE Arca Equities Rule 7.37 (‘‘Rule three joint-industry plans are: (1) The CTA Plan,
Arca, Inc.; Notice of Filing and 7.37’’) and NYSE Arca Equities Rule which is operated by the Consolidated Tape
Immediate Effectiveness of Proposed 7.37P (‘‘Rule 7.37’’) to specify in Association and disseminates transaction
Exchange rules which data feeds from information for securities with the primary listing
Rule Change Specifying in Exchange market on exchanges other than NASDAQ Stock
Rules the Exchange’s Use of Data National Stock Exchange, Inc. (‘‘NSX’’) Market LLC (‘‘Nasdaq’’): (2) The CQ Plan, which
Feeds From National Stock Exchange, that the Exchange would use for order disseminates consolidated quotation information
Inc. for Order Handling and Execution, handling and execution, order routing, for securities with their primary listing on
and regulatory compliance. exchanges other than Nasdaq; and (3) the Nasdaq
Order Routing, and Regulatory UTP Plan, which disseminates consolidated
Compliance On July 18, 2014, the Exchange filed transaction and quotation information for securities
a proposed rule change that clarified the with their primary listing on Nasdaq.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
November 4, 2015. Exchange’s use of certain data feeds for 5 See Securities Exchange Act Release No. 74409
Pursuant to Section 19(b)(1) of the order handling and execution, order (March 2, 2015), 80 FR 12221 (March 6, 2015) (SR–
Securities Exchange Act of 1934 routing, and regulatory compliance.3 As NYSEArca-2015–11). Rule 7.37P, which is based on
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Rule 7.37, specifies order execution, including use
noted in that filing, the data feeds of data feeds, on the Exchange’s Pillar trading
notice is hereby given that on October available for the purposes of order platform. See Securities Exchange Release No.
75494 (July 20, 2015), 80 FR 44170 (July 24, 2015)
22 17 CFR 200.30–3(a)(12). 3 See Securities Exchange Act Release No. 72708 (SR–NYSEArca–2015–38).
1 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78f(b).
(July 29, 2014), 79 FR 45572 (Aug. 5, 2014) (SR–
2 17 CFR 240.19b–4. NYSEArca-2014–82) (‘‘July 2014 Data Feed Filing’’). 7 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014 19:41 Nov 09, 2015 Jkt 238001 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 E:\FR\FM\10NON1.SGM 10NON1](https://thefederalregister.org/doc/80_FR_69962/page/4.svg)
Document Created: 2018-03-01 11:25:38
Document Modified: 2018-03-01 11:25:38
| 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 69745 |
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