80 FR 70039 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide That the Co-Location Services Offered by the Exchange Include 40 Gigabit Internet Protocol Network Connections in the Exchange's Data Center and To Amend the Exchange's Price List To Implement Fees for the New Services
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 218 (November 12, 2015)
Federal Register Volume 80, Issue 218 (November 12, 2015)
| Page Range | 70039-70042 | |
| FR Document | 2015-28689 |
[Federal Register Volume 80, Number 218 (Thursday, November 12, 2015)] [Notices] [Pages 70039-70042] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28689] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76372; File No. SR-NYSEARCA-2015-105] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide That the Co-Location Services Offered by the Exchange Include 40 Gigabit Internet Protocol Network Connections in the Exchange's Data Center and To Amend the Exchange's Price List To Implement Fees for the New Services November 5, 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 28, 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, II, and III 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 the Substance of the Proposed Rule Change The Exchange proposes to change its rules to provide that the co- location services offered by the Exchange include 40 gigabit (``Gb'') Internet protocol (``IP'') network connections in the Exchange's data center. The Exchange proposes to amend the NYSE Arca Options Fee Schedule (the ``Options Fee Schedule'') and, through its wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE Arca Equities''), the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services (the ``Equities Fee Schedule'' and, together with the Options Fee Schedule, the ``Fee Schedules'') to implement fees for the new service. 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. 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to change its rules to provide that the co- location \4\ services offered by the Exchange include 40 Gb IP network connections in the Exchange's data center. The Exchange proposes to amend the Fee Schedules to implement fees for the new service effective. --------------------------------------------------------------------------- \4\ The Exchange initially filed rule changes relating to its co-location services with the Securities and Exchange Commission (``Commission'') in 2010. See Securities Exchange Act Release No. 63275 (November 8, 2010), 75 FR 70048 (November 16, 2010) (SR- NYSEArca-2010-100) (the ``Original Co-location Filing''). The Exchange operates a data center in Mahwah, New Jersey (the ``data center'') from which it provides co-location services to Users. --------------------------------------------------------------------------- Currently, the Exchange's co-location services offer Users \5\ access to two local area networks available in the data center: The IP network and the Liquidity Center Network (``LCN'').\6\ IP [[Page 70040]] network access is currently available in 1 and 10 Gb capacities. The Exchange also offers 1, 10, and 40 Gb LCN network access and LCN 10 Gb LX network access.\7\ --------------------------------------------------------------------------- \5\ For purposes of the Exchange's co-location services, a ``User'' means any market participant that requests to receive co- location services directly from the Exchange. See Securities Exchange Act Release No. 76010 (September 29, 2015), 80 FR 60197 (October 5, 2015) (SR-NYSEArca-2015-82). As specified in the Fee Schedules, a User that incurs co-location fees for a particular co- location service pursuant thereto would not be subject to co- location fees for the same co-location service charged by the Exchange's affiliates New York Stock Exchange LLC and NYSE MKT LLC. See Securities Exchange Act Release No. 70173 (August 13, 2013), 78 FR 50459 (August 19, 2013) (SR-NYSEArca-2013-80). \6\ See Original Co-location Filing, at 70049 and Securities Exchange Act Release No. 74219 (February 6, 2015), 80 FR 7899 (February 12, 2015) (SR-NYSEArca-2015-03) (notice of filing and immediate effectiveness of proposed rule change to include IP network connections). \7\ See Original Co-location Filing, at 70050 and Securities Exchange Act Release No. 70887 (November 15, 2013), 78 FR 69897 (November 21, 2013) (SR-NYSEArca-2013-123) (notice of filing and immediate effectiveness of proposed rule change to include LCN 10 Gb LX connection). --------------------------------------------------------------------------- The IP network and LCN provide Users with access to the Exchange's trading and execution systems and to the Exchange's proprietary market data products. The IP network also provides Users with access to away market data products. There is greater latency in the transmission of data between Users and the Exchange for the IP Network than for the LCN. The IP network provides Users that do not need the lower latency of the LCN with a less costly data center network option. Having another data center network also provides Users with the option to create redundancy in their infrastructure. The proposed rule change would allow Users to purchase 40 Gb IP network connections in the data center. The offering of a 40 Gb IP network connection in addition to the existing 1 and 10 Gb IP network connections would provide a User more choices regarding the bandwidth of its IP network connections, allowing it to select the option that best corresponds to its needs and is most cost-effective for that User. The 40 Gb IP network connection is expected to be available no later than April 15, 2016. The Exchange will announce the date that the 40 Gb IP network connection will be available through a customer notice. The Exchange proposes to establish the following fees for 40 Gb IP network connections: ------------------------------------------------------------------------ Type of service Description Amount of charge ------------------------------------------------------------------------ IP Network Access............. 40 Gb circuit.... $10,000 per connection initial charge plus $17,000 monthly per connection. ------------------------------------------------------------------------ By comparison, the 1 Gb IP network connection costs $2,500 per connection initial charge plus $2,500 monthly per connection and the 10 Gb IP network connection costs $10,000 per connection initial charge plus $10,000 monthly per connection. The 40 Gb LCN circuit costs $15,000 per connection initial charge plus $20,000 monthly per connection. As is the case with all Exchange co-location arrangements, (i) neither a User nor any of the User's customers would be permitted to submit orders directly to the Exchange unless such User or customer is a member organization, a Sponsored Participant or an agent thereof (e.g., a service bureau providing order entry services); (ii) use of the co-location services proposed herein would be completely voluntary and available to all Users on a non-discriminatory basis; \8\ and (iii) a User would only incur one charge for the particular co-location service described herein, regardless of whether the User connects only to the Exchange or to the Exchange and one or both of its affiliates.\9\ --------------------------------------------------------------------------- \8\ As is currently the case, Users that receive co-location services from the Exchange will not receive any means of access to the Exchange's trading and execution systems that is separate from, or superior to, that of other Users. In this regard, all orders sent to the Exchange enter the Exchange's trading and execution systems through the same order gateway, regardless of whether the sender is co-located in the data center or not. In addition, co-located Users do not receive any market data or data service product that is not available to all Users, although Users that receive co-location services normally would expect reduced latencies in sending orders to, and receiving market data from, the Exchange. \9\ See SR-NYSEArca-2013-80, supra note 5 at 50459. The Exchange's affiliates have also submitted the same proposed rule change to propose the changes described herein. See SR-NYSE-2015-54 and SR-NYSEMKT-2015-90. --------------------------------------------------------------------------- The proposed change is not otherwise intended to address any other issues relating to co-location services and/or related fees, and the Exchange is not aware of any problems that Users would have in complying with the proposed change. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Sections 6(b)(5) of the Act,\11\ 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed 40 Gb IP network connection is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers because it would make a service available to Users that require the increased IP network bandwidth, but Users that do not require the increased bandwidth could continue to request an existing lower-bandwidth IP network connection. Users that require lower latency levels may utilize LCN connections. The Exchange believes that the proposed service would remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, protect investors and the public interest because the offering of a 40 Gb IP network connection in addition to the existing 1 and 10 Gb IP network connections would provide a User more choices regarding the bandwidth of its IP network connections, allowing it to select the option that best corresponds to its needs and is most cost-effective for that User. The Exchange also believes that the proposed rule change is consistent with Section 6(b)(4) of the Act,\12\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its member organizations, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- Overall, the Exchange believes that the proposed fees for the proposed 40 Gb IP network connection are reasonable because the Exchange proposes to offer the service as a convenience to Users, but in doing so will incur certain costs, including costs related to the data center facility, hardware and equipment and costs related to personnel required for initial installation and ongoing monitoring, [[Page 70041]] support and maintenance of such service. The Exchange further believes that the proposed change is reasonable because the proposed fees directly relate to the level of services provided by the Exchange and, in turn, received by the User. In this regard, the fees proposed for 40 Gb IP network connections are higher than, for example, the fees for 10 Gb IP network connections because costs for the initial purchase and ongoing maintenance of the 40 IP network connections are generally higher than those of the lower- bandwidth connections. However, these costs are not anticipated to be four times higher than the existing 10 Gb IP network connection. The Exchange therefore notes that while the proposed bandwidth of the 40 Gb IP network connection is four times greater than the existing 10 Gb IP connection, the proposed fees for the 40 Gb IP network connection are significantly less than four times the fees for the 10 Gb IP connection. Specifically, the proposed initial charge of $10,000 is the same as the initial charge for the existing 10 Gb IP network connection and the proposed monthly recurring charge of $17,000 is less than double the $10,000 monthly charge for the existing 10 Gb IP network connection. The Exchange believes that this supports a finding that the proposed pricing is reasonable because the Exchange anticipates realizing efficiencies as customers adopt higher-bandwidth connections, and, in turn, reflecting such efficiencies in the pricing for such connections. As with fees for existing co-location services, the fees proposed herein would be charged only to those Users that voluntarily select the 40 Gb IP network connection, which would be available to all Users. Accordingly, the Exchange believes that the proposed change is equitable and not unfairly discriminatory because it will result in fees being charged only to Users that voluntarily select to receive the corresponding services and because those services will be available to all Users. Furthermore, the Exchange believes that the services and fees proposed herein are not unfairly discriminatory and are equitably allocated because, in addition to the services being completely voluntary, they are available to all Users on an equal basis (i.e., the same products and services are available to all Users). All Users that voluntarily select the proposed 40 Gb IP network service will be charged the same amount for the service. For the reasons above, the proposed change would not unfairly discriminate between or among market participants that are otherwise capable of satisfying any applicable co-location fees, requirements, terms and conditions established from time to time by the Exchange. Finally, the Exchange believes that it is subject to significant competitive forces, as described below in the Exchange's statement regarding the burden on competition. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\13\ the Exchange believes that the proposed rule change will not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because, in addition to the proposed service being completely voluntary, it will be available to all Users on an equal basis (i.e. the same products and services are available to all Users). --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange believes that allowing Users to purchase 40 Gb IP network connections will not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because such service will be available to Users that require the increased IP network bandwidth, but Users that do not require the increased bandwidth could continue to request an existing lower- bandwidth IP network connection. The offering of a 40 Gb IP network connection in addition to the existing 1 and 10 Gb IP network connections would provide a User more choices regarding the bandwidth of its IP network connections, allowing it to select the option that best corresponds to its needs and is most cost-effective for that User. In addition, the Exchange believes that the proposed change will enhance competition, in that The NASDAQ Stock Market LLC (``NASDAQ'') similarly makes a 40 Gb fiber connection available to users of its co- location facilities.\14\ --------------------------------------------------------------------------- \14\ See NASDAQ Rule 7034 for a description of NASDAQ's co- location services. --------------------------------------------------------------------------- Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. In such an environment, the Exchange must continually review, and consider adjusting, its services and related fees and credits to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed rule change reflects this competitive environment. 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. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(iii). \16\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \17\ 17 CFR 240.19b-4(f)(6). \18\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- 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) \19\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \19\ 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 [[Page 70042]] 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 No. SR-NYSEARCA-2015-105 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-NYSEARCA-2015-105. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. 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 No. SR-NYSEARCA-2015-105, and should be submitted on or before December 3, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-28689 Filed 11-10-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices 70039
Commission summarily may information that you wish to make (the ‘‘Equities Fee Schedule’’ and,
temporarily suspend such rule change if available publicly. together with the Options Fee Schedule,
it appears to the Commission that such All submissions should refer to File the ‘‘Fee Schedules’’) to implement fees
action is necessary or appropriate in the Number SR–Phlx–2015–90 and should for the new service. The text of the
public interest, for the protection of be submitted on or before December 3, proposed rule change is available on the
investors, or otherwise in furtherance of 2015. Exchange’s Web site at www.nyse.com,
the purposes of the Act. If the For the Commission, by the Division of at the principal office of the Exchange,
Commission takes such action, the Trading and Markets, pursuant to delegated and at the Commission’s Public
Commission shall institute proceedings authority.22 Reference Room.
to determine whether the proposed rule Robert W. Errett, II. Self-Regulatory Organization’s
should be approved or disapproved. Deputy Secretary. Statement of the Purpose of, and
IV. Solicitation of Comments [FR Doc. 2015–28698 Filed 11–10–15; 8:45 am] Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P Change
Interested persons are invited to
submit written data, views, and In its filing with the Commission, the
arguments concerning the foregoing, SECURITIES AND EXCHANGE self-regulatory organization included
including whether the proposed rule COMMISSION statements concerning the purpose of,
change is consistent with the Act. and basis for, the proposed rule change
[Release No. 34–76372; File No. SR– and discussed any comments it received
Comments may be submitted by any of NYSEARCA–2015–105]
the following methods: on the proposed rule change. The text
of those statements may be examined at
Electronic Comments Self-Regulatory Organizations; NYSE
the places specified in Item IV below.
Arca, Inc.; Notice of Filing and
• Use the Commission’s Internet The Exchange has prepared summaries,
Immediate Effectiveness of Proposed set forth in sections A, B, and C below,
comment form (http://www.sec.gov/ Rule Change To Provide That the Co-
rules/sro.shtml); or of the most significant parts of such
Location Services Offered by the statements.
• Send an email to rule-comments@ Exchange Include 40 Gigabit Internet
sec.gov. Please include File Number SR– Protocol Network Connections in the A. Self-Regulatory Organization's
Phlx–2015–90 on the subject line. Exchange’s Data Center and To Amend Statement of the Purpose of, and
Paper Comments the Exchange’s Price List To Statutory Basis for, the Proposed Rule
Implement Fees for the New Services Change
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities November 5, 2015. 1. Purpose
and Exchange Commission, 100 F Street Pursuant to Section 19(b)(1) 1 of the The Exchange proposes to change its
NE., Washington, DC 20549–1090. Securities Exchange Act of 1934 (the rules to provide that the co-location 4
All submissions should refer to File ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 services offered by the Exchange
Number SR–Phlx–2015–90. This file notice is hereby given that, on October include 40 Gb IP network connections
number should be included on the 28, 2015, NYSE Arca, Inc. (the in the Exchange’s data center. The
subject line if email is used. To help the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with Exchange proposes to amend the Fee
Commission process and review your the Securities and Exchange Schedules to implement fees for the
comments more efficiently, please use Commission (the ‘‘Commission’’) the new service effective.
proposed rule change as described in Currently, the Exchange’s co-location
only one method. The Commission will
Items I, II, and III below, which Items services offer Users 5 access to two local
post all comments on the Commission’s
have been prepared by the self- area networks available in the data
Internet Web site (http://www.sec.gov/
regulatory organization. The center: The IP network and the
rules/sro.shtml).
Commission is publishing this notice to Liquidity Center Network (‘‘LCN’’).6 IP
Copies of the submission, all
subsequent amendments, all written solicit comments on the proposed rule
4 The Exchange initially filed rule changes
statements with respect to the proposed change from interested persons.
relating to its co-location services with the
rule change that are filed with the I. Self-Regulatory Organization’s Securities and Exchange Commission
Commission, and all written Statement of the Terms of the Substance (‘‘Commission’’) in 2010. See Securities Exchange
Act Release No. 63275 (November 8, 2010), 75 FR
communications relating to the of the Proposed Rule Change 70048 (November 16, 2010) (SR–NYSEArca–2010–
proposed rule change between the The Exchange proposes to change its 100) (the ‘‘Original Co-location Filing’’). The
Commission and any person, other than rules to provide that the co-location Exchange operates a data center in Mahwah, New
those that may be withheld from the Jersey (the ‘‘data center’’) from which it provides
services offered by the Exchange co-location services to Users.
public in accordance with the include 40 gigabit (‘‘Gb’’) Internet 5 For purposes of the Exchange’s co-location
provisions of 5 U.S.C. 552, will be protocol (‘‘IP’’) network connections in services, a ‘‘User’’ means any market participant
available for Web site viewing and the Exchange’s data center. The that requests to receive co-location services directly
printing in the Commission’s Public from the Exchange. See Securities Exchange Act
Exchange proposes to amend the NYSE Release No. 76010 (September 29, 2015), 80 FR
Reference Room, 100 F Street NE., Arca Options Fee Schedule (the 60197 (October 5, 2015) (SR–NYSEArca–2015–82).
Washington, DC 20549, on official ‘‘Options Fee Schedule’’) and, through As specified in the Fee Schedules, a User that
business days between the hours of its wholly owned subsidiary NYSE Arca incurs co-location fees for a particular co-location
service pursuant thereto would not be subject to co-
mstockstill on DSK4VPTVN1PROD with NOTICES
10:00 a.m. and 3:00 p.m. Copies of the Equities, Inc. (‘‘NYSE Arca Equities’’), location fees for the same co-location service
filing also will be available for the NYSE Arca Equities Schedule of charged by the Exchange’s affiliates New York
inspection and copying at the principal Fees and Charges for Exchange Services Stock Exchange LLC and NYSE MKT LLC. See
office of the Exchange. All comments Securities Exchange Act Release No. 70173 (August
received will be posted without change; 13, 2013), 78 FR 50459 (August 19, 2013) (SR–
22 17 CFR 200.30–3(a)(12). NYSEArca–2013–80).
the Commission does not edit personal 1 15 U.S.C. 78s(b)(1). 6 See Original Co-location Filing, at 70049 and
identifying information from 2 15 U.S.C. 78a.
Securities Exchange Act Release No. 74219
submissions. You should submit only 3 17 CFR 240.19b–4. Continued
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![70042 Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
change is consistent with the Act. SECURITIES AND EXCHANGE and C below, of the most significant
Comments may be submitted by any of COMMISSION aspects of such statements.
the following methods:
A. Self-Regulatory Organization's
[Release No. 34–76360; File No. SR–FINRA– Statement of the Purpose of, and
Electronic Comments
2015–046]
Statutory Basis for, the Proposed Rule
• Use the Commission’s Internet Change
comment form (http://www.sec.gov/ Self-Regulatory Organizations;
rules/sro.shtml); or Financial Industry Regulatory 1. Purpose
• Send an email to rule-comments@ Authority, Inc.; Notice of Filing and
Regulation SCI was adopted by the
sec.gov. Please include File No. SR– Immediate Effectiveness of a Proposed
Commission on November 19, 2014,
NYSEARCA–2015–105 on the subject Rule Change Relating to Mandatory
with the objective of strengthening the
line. Participation in Business Continuity
technology infrastructure of the U.S.
and Disaster Recovery Testing Under
Paper Comments securities markets.4 The regulation
Regulation SCI
applies to ‘‘SCI entities,’’ which
• Send paper comments in triplicate November 5, 2015. includes FINRA, the national securities
to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the exchanges and equity alternative trading
Commission, 100 F Street NE., Securities Exchange Act of 1934 systems (‘‘ATSs’’) that meet specified
Washington, DC 20549–1090. (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 volume thresholds.5 One topic of
All submissions should refer to File No. notice is hereby given that on October several Regulation SCI rule
SR–NYSEARCA–2015–105. This file 30, 2015, Financial Industry Regulatory requirements is BC/DR testing.
number should be included on the Authority, Inc. (‘‘FINRA’’) filed with the Rule 1004 of SEC Regulation SCI
subject line if email is used. To help the Securities and Exchange Commission requires FINRA, as an SCI entity, to do
Commission process and review your (‘‘SEC’’ or ‘‘Commission’’) the proposed the following with respect to its BC/DR
comments more efficiently, please use rule change as described in Items I and plan: (1) Establish standards to
only one method. The Commission will II below, which Items have been designate the members that FINRA
post all comments on the Commission’s prepared by FINRA. FINRA has reasonably determines are, taken as a
Internet Web site (http://www.sec.gov/ designated the proposed rule change as whole, the minimum necessary for the
rules/sro.shtml). Copies of the constituting a ‘‘non-controversial’’ rule maintenance of fair and orderly markets
submission, all subsequent change under paragraph (f)(6) of Rule in the event of the activation of its BC/
amendments, all written statements 19b–4 under the Act,3 which renders DR plan; (2) designate members
with respect to the proposed rule the proposal effective upon receipt of pursuant to its established standards
change that are filed with the this filing by the Commission. The and require them to participate in
Commission, and all written Commission is publishing this notice to scheduled functional and performance
communications relating to the solicit comments on the proposed rule testing of the operation of FINRA’s BC/
proposed rule change between the change from interested persons. DR plan, in the manner and frequency
Commission and any person, other than specified by FINRA, provided the
I. Self-Regulatory Organization’s frequency is no less than once every 12
those that may be withheld from the Statement of the Terms of Substance of
public in accordance with the months; and (3) coordinate the testing of
the Proposed Rule Change FINRA’s BC/DR plan on an industry- or
provisions of 5 U.S.C. 552, will be
available for Web site viewing and FINRA is proposing to adopt FINRA sector-wide basis with other SCI
printing in the Commission’s Public Rule 4380 related to mandatory entities.
Reference Room, 100 F Street NE., participation in business continuity and Consistent with Regulation SCI,
Washington, DC 20549 on official disaster recovery (‘‘BC/DR’’) testing FINRA proposes to adopt Rule 4380 to
business days between the hours of under Regulation Systems Compliance establish authority to designate
10:00 a.m. and 3:00 p.m. Copies of such and Integrity (‘‘Regulation SCI’’). members for mandatory participation in
filing also will be available for The text of the proposed rule change its BC/DR testing. As noted in proposed
inspection and copying at the principal is available on FINRA’s Web site at Rule 4380(a), FINRA will designate
office of the Exchange. All comments http://www.finra.org, at the principal members according to established
received will be posted without change; office of FINRA and at the criteria that are designed to ensure
the Commission does not edit personal Commission’s Public Reference Room. participation by those members that
identifying information from FINRA reasonably determines are, taken
II. Self-Regulatory Organization’s as a whole, the minimum necessary for
submissions. You should submit only Statement of the Purpose of, and
information that you wish to make the maintenance of fair and orderly
Statutory Basis for, the Proposed Rule markets in the event of the activation of
available publicly. All submissions Change
should refer to File No. SR– its BC/DR plan. As further noted in
NYSEARCA–2015–105, and should be In its filing with the Commission, proposed Rule 4380(a), FINRA’s criteria
submitted on or before December 3, FINRA included statements concerning will consider volume of activity on a
2015. the purpose of and basis for the FINRA market system over a specified
proposed rule change and discussed any period of time.6 FINRA will
For the Commission, by the Division of comments it received on the proposed communicate to members its criteria for
Trading and Markets, pursuant to delegated
mstockstill on DSK4VPTVN1PROD with NOTICES
rule change. The text of these statements designation under this Rule, and any
authority.20
may be examined at the places specified
Robert W. Errett,
in Item IV below. FINRA has prepared 4 See Securities Exchange Act Release No. 73639
Deputy Secretary. summaries, set forth in sections A, B, (November 19, 2014), 79 FR 72252, 72254
[FR Doc. 2015–28689 Filed 11–10–15; 8:45 am] (December 5, 2014) (‘‘SCI Adopting Release’’).
5 Rule 1000 of SEC Regulation SCI.
BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). 6 Volume-based criteria may contemplate quoting,
2 17 CFR 240.19b–4. trading, or reportable order events, depending on
20 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4(f)(6). the type of activity conducted on a FINRA system.
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Document Created: 2015-12-14 14:53:28
Document Modified: 2015-12-14 14:53:28
| 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 70039 |
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