81 FR 21635 - Sunshine Act Meeting

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 70 (April 12, 2016)

Page Range		21635-21636
FR Document		2016-08445

Federal Register, Volume 81 Issue 70 (Tuesday, April 12, 2016)

[Federal Register Volume 81, Number 70 (Tuesday, April 12, 2016)]
[Notices]
[Pages 21635-21636]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-08445]


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SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Public Law 94-409, that the Securities 
and Exchange Commission Investor Advisory Committee will hold a meeting 
on Thursday, April 14, 2016, in Multi-Purpose Room LL-006 at the 
Commission's headquarters, 100 F Street NE., Washington, DC. The 
meeting will begin at 9:30 a.m. (ET) and will be open to the public. 
Seating will be on a first-come, first-served basis. Doors will open at 
9:00 a.m. Visitors will be subject to security checks. The meeting will 
be webcast on the Commission's Web site at www.sec.gov.

[[Page 21636]]

    On March 23, 2016, the Commission issued notice of the Committee 
meeting (Release No. 33-10058), indicating that the meeting is open to 
the public (except during that portion of the meeting reserved for an 
administrative work session during lunch), and inviting the public to 
submit written comments to the Committee. This Sunshine Act notice is 
being issued because a quorum of the Commission may attend the meeting.
    The agenda for the meeting includes: Remarks from Commissioners; a 
discussion of a recommendation of the Investor as Purchaser 
subcommittee regarding mutual fund cost disclosure; an update from the 
Commission's Office of Compliance Inspections and Examinations; 
subcommittee reports; a discussion regarding cybersecurity and related 
investor protection concerns; reflections on the first full term of 
Investor Advisory Committee membership; and a nonpublic administrative 
work session during lunch.
    For further information, please contact the Office of the Secretary 
at (202) 551-5400.

    Dated: April 7, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-08445 Filed 4-8-16; 11:15 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 70 / Tuesday, April 12, 2016 / Notices 21635

• MidPoint Peg Orders. Exchange with additional options for trading on instructions.43 Specifically, the
Rule 11.8(d)(1) describes the TIF the Exchange. The Commission notes Exchange states that a Member’s best
instructions that may be attached to a that the proposed Early Trading Session execution obligations may include
MidPoint Peg Order. The Exchange hours are similar to those of other cancelling an order when market
proposes to amend paragraph (d)(1) to exchanges 35 and that the proposed TIF conditions deteriorate and could result
state that a MidPoint Peg Order may instructions would offer functionality in an inferior execution or informing
have a TIF instruction of PRE, PTX, or similar to existing functionality customers if the execution of their order
PTD, in addition to Day, FOK, IOC, available on the Exchange and other may be delayed intentionally while the
RHO, GTX and GTD. exchanges which allows Members to Member utilizes reasonable diligence to
• Market Maker Peg Orders. The select when their orders become eligible ascertain the best market for the
proposed TIF instruction of PRE, PTX, for execution.36 security.44 The Exchange further notes
and PTD would not be available to The Commission notes that the that Members will maintain the ability
Market Maker Peg Orders. Under Exchange has represented that it would to cancel or modify the terms of an
Exchange Rule 11.8(e)(4), a Market subject orders that are eligible for order utilizing any of the proposed TIF
Maker Peg Order may only include a execution as of the start of the Pre- instructions at any time, including
TIF instruction of Day, RHO, or GTD. Opening Session to all of the Exchange’s during the time from when the order is
• Supplemental Peg. Exchange Rule standard regulatory checks, as it routed to the Exchange until the start of
11.8(f)(1) describes the TIF instructions currently does with all orders upon the Pre-Opening Session. As a result,
that may be attached to a Supplemental entry.37 Specifically, the Exchange will the Exchange states that a Member who
Peg Order. The Exchange proposes to subject such orders to checks for utilizes the proposed TIF instructions,
amend paragraph (f)(1) to state that a compliance with, including but not but later determines that market
Supplemental Peg Order may have a TIF limited to, Regulation NMS,38 conditions favor execution during the
instruction of PRE, PTX, or PTD, in Regulation SHO,39 and relevant Early Trading Session, can cancel the
addition to GTD, GTX, RHO and Day. Exchange rules. Moreover, the Exchange order residing at the Exchange and enter
reminds its Members of their regulatory a separate order to execute during the
III. Discussion and Commission obligations when submitting an order Early Trading Session.45
Findings with one of the proposed TIF
instructions.40 In particular, the IV. Conclusion
After careful consideration, the
Commission finds that the proposed Exchange states that Members must It is therefore ordered, pursuant to
rule change, as modified by Amendment comply with the Market Access Rule,41 Section 19(b)(2) of the Act 46 that the
No. 1, is consistent with the which requires, among other things, pre- proposed rule change (SR–EDGX–2016–
requirements of the Act and the rules trade controls and procedures that are 06), as modified by Amendment No. 1,
and regulations thereunder applicable to reasonably designed to assure be, and it hereby is, approved.
a national securities exchange.32 The compliance with Exchange trading rules For the Commission, by the Division of
Commission believes that the proposed and Commission rules pursuant to Trading and Markets, pursuant to delegated
rule change, as modified by Amendment Regulation SHO and Regulation NMS. authority.47
No. 1, is consistent with Section The Exchange also notes that a Robert W. Errett,
6(b)(5) 33 in particular, in that it is Member’s procedures must be Deputy Secretary.
designed to prevent fraudulent and reasonably designed to ensure [FR Doc. 2016–08302 Filed 4–11–16; 8:45 am]
manipulative acts and practices, to compliance with the applicable BILLING CODE 8011–01–P
promote just and equitable principles of regulatory requirements, not just at the
trade, to foster cooperation and time the order is routed to the Exchange,
coordination with persons engaged in but also at the time the order becomes SECURITIES AND EXCHANGE
facilitating transactions in securities, to eligible for execution.42 COMMISSION
remove impediments to and perfect the The Commission further notes the
mechanism of a free and open market Exchange’s discussion of the best Sunshine Act Meeting
and a national market system, and, in execution obligations of Members
utilizing the proposed TIF Notice is hereby given, pursuant to
general, to protect investors and the the provisions of the Government in the
public interest. 35 For example, NYSE Arca, Inc. operates an Sunshine Act, Public Law 94–409, that
The Exchange proposes to adopt an Opening Session that starts at 4:00 a.m. Eastern the Securities and Exchange
Early Trading Session and three new Time and ends at 9:30 a.m. Eastern Time and Commission Investor Advisory
TIF instructions and to make related Nasdaq Stock Market LLC operates a pre-market Committee will hold a meeting on
changes to its rules as discussed session that also opens at 4:00 a.m. and ends at 9:30
a.m. Eastern Time. See NYSE Arca Rule 7.34(a)(1); Thursday, April 14, 2016, in Multi-
above.34 The Commission believes that Nasdaq Rule 4701(g); see also Securities Exchange Purpose Room LL–006 at the
the proposed rules would provide Users Act Release No. 60605 (September 1, 2009), 74 FR Commission’s headquarters, 100 F
46277 (September 8, 2009) (SR–CHX–2009–13) Street NE., Washington, DC. The
or Price Adjust instruction will remove contra-side (adopting bifurcated post-trading session on the
Chicago Stock Exchange, Inc.). meeting will begin at 9:30 a.m. (ET) and
liquidity from the EDGX Book if the order is an
order to buy or sell a security priced below $1.00
36 Specifically, on the Exchange, Users may enter will be open to the public. Seating will
or if the value of such execution when removing an order starting at 6:00 a.m. Eastern Time with a be on a first-come, first-served basis.
liquidity equals or exceeds the value of such TIF of Regular Hours Only, which designates that Doors will open at 9:00 a.m. Visitors
asabaliauskas on DSK3SPTVN1PROD with NOTICES

execution if the order instead posted to the EDGX the order only be eligible for execution during
Regular Trading Hours, which begin at 9:30 a.m.
will be subject to security checks. The
Book and subsequently provided liquidity, meeting will be webcast on the
including the applicable fees charged or rebates Eastern Time. See Exchange Rule 11.6(q)(6); see
provided. also NASDAQ Rule 4703(a)(7). Commission’s Web site at www.sec.gov.
37 See Amendment No. 1, supra note 4.
32 In approving this rule change, the Commission
38 See 17 CFR 242.600–613. 43 See id. at 8810–11.
notes that it has considered the proposed rule’s
39 See 17 CFR 242.200–204. 44 Id. at 8810 n.45.
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f). 40 See Notice, supra note 5, at 8811. 45 Id. at. 8810.
33 15 U.S.C. 78f(b)(5). 41 See 17 CFR 240.15c3–5. 46 15 U.S.C. 78s(b)(2).
34 See supra section II. 42 See Notice, supra note 5, at 8811. 47 17 CFR 200.30–3(a)(12).

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21636 Federal Register / Vol. 81, No. 70 / Tuesday, April 12, 2016 / Notices

On March 23, 2016, the Commission solicit comments on the proposed rule (‘‘NGC’’) of the board of directors of ICE,
issued notice of the Committee meeting change from interested persons. the indirect parent of the Exchange,
(Release No. 33–10058), indicating that nominates the candidates for Non-
I. Self-Regulatory Organization’s
the meeting is open to the public Affiliated Directors, who are then
Statement of the Terms of Substance of
(except during that portion of the the Proposed Rule Change elected by NYSE Group, as the sole
meeting reserved for an administrative member of the Exchange. The Exchange
work session during lunch), and The Exchange proposes to amend the proposes to amend Section 2.03(a) to
inviting the public to submit written Eighth Amended and Restated have the Director Candidate
comments to the Committee. This Operating Agreement of the Exchange Recommendation Committee (‘‘DCRC’’)
Sunshine Act notice is being issued (‘‘Operating Agreement’’) to (1) change of the Exchange assume the role
because a quorum of the Commission the process for nominating non- currently played by the ICE NGC, and to
may attend the meeting. affiliated directors; (2) remove a make a conforming change to Section
reference to an obsolete category of 2.03(h)(i). In addition, if the Member
The agenda for the meeting includes: member; and (3) add references to
Remarks from Commissioners; a Organizations endorse a petition
Designated Market Makers. The candidate for Non-Affiliate Director,
discussion of a recommendation of the proposed rule change is available on the
Investor as Purchaser subcommittee pursuant to Section 2.03(a)(iv) the ICE
Exchange’s Web site at www.nyse.com, NGC makes the determination of
regarding mutual fund cost disclosure; at the principal office of the Exchange,
an update from the Commission’s Office whether the person is eligible.5 The
and at the Commission’s Public Exchange proposes to amend Section
of Compliance Inspections and Reference Room.
Examinations; subcommittee reports; a 2.03(a)(iv) to have the Exchange make
discussion regarding cybersecurity and II. Self-Regulatory Organization’s such determination instead of the ICE
related investor protection concerns; Statement of the Purpose of, and NGC.
reflections on the first full term of Statutory Basis for, the Proposed Rule Currently, the nomination by the ICE
Investor Advisory Committee Change NGC is the final step in the process for
membership; and a nonpublic electing a Non-Affiliated Director. First,
In its filing with the Commission, the the DCRC recommends a candidate,
administrative work session during self-regulatory organization included
lunch. whose name then is announced to the
statements concerning the purpose of, Exchange’s Member Organizations. The
For further information, please and basis for, the proposed rule change Member Organizations may propose
contact the Office of the Secretary at and discussed any comments it received alternate candidates by petition. If there
(202) 551–5400. on the proposed rule change. The text are no petition candidates, the DCRC
Dated: April 7, 2016.
of those statements may be examined at recommends its candidate to the ICE
the places specified in Item IV below. NGC. If petition candidates are
Brent J. Fields,
The Exchange has prepared summaries, proposed, the ICE NGC makes the
Secretary. set forth in sections A, B, and C below,
[FR Doc. 2016–08445 Filed 4–8–16; 11:15 am]
determination of whether the candidates
of the most significant parts of such are eligible, and then all of the eligible
BILLING CODE 8011–01–P statements. candidates are submitted to the Member
A. Self-Regulatory Organization’s Organizations for a vote. The DCRC
SECURITIES AND EXCHANGE Statement of the Purpose of, and the recommends to the ICE NGC the
COMMISSION Statutory Basis for, the Proposed Rule candidate receiving the highest number
Change of votes. The ICE NGC is obligated to
designate the DCRC-recommended
[Release No. 34–77536; File No. SR– 1. Purpose candidate as the nominee, and NYSE
NYSEMKT–2016–26]
The Exchange proposes to amend the Group is obligated to elect him or her
Self-Regulatory Organizations; NYSE Operating Agreement to (1) change the as a Non-Affiliated Director.
MKT LLC; Notice of Filing of Proposed process for nominating non-affiliated The Exchange believes obligating the
Rule Change Amending the Eighth directors; (2) remove a reference to an ICE NGC to nominate the candidates for
Amended and Restated Operating obsolete category of member; and (3) Non-Affiliated Directors based on the
Agreement of the Exchange add references to Designated Market DCRC’s unalterable recommendation is
Makers (‘‘DMMs’’). neither necessary nor meaningful.
April 6, 2016.
Process for Nominating Non-Affiliated Pursuant to Section 2.03(a)(iii) the ICE
Pursuant to Section 19(b)(1) 1 of the Directors NGC is obligated to designate whomever
Securities Exchange Act of 1934 (the the DCRC recommends or, if there is a
Pursuant to the Operating Agreement, petition candidate, whomever emerges
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 at least 20% of the Board of Directors of
notice is hereby given that, on March from the petition process. The ICE NGC
the Exchange (‘‘Board’’) is made up of does not have any discretion. Removing
29, 2016, NYSE MKT LLC (the ‘‘Non-Affiliated Directors’’ (commonly
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with this unnecessary step would make the
referred to as ‘‘fair representation NYSE MKT process more efficient.
the Securities and Exchange directors’’).4 Pursuant to Section 2.03(a) The Exchange believes that having the
Commission (the ‘‘Commission’’) the of the Operating Agreement, the Exchange determine whether persons
asabaliauskas on DSK3SPTVN1PROD with NOTICES

proposed rule change as described in nominating and governance committee endorsed to be petition candidates are
Items I, II, and III below, which Items
eligible also would be more efficient, as
have been prepared by the self- 4 Pursuant to Section 2.03(a) of the Operating
it would not require action from the ICE
regulatory organization. The Agreement, Non-Affiliate Directors are persons who
NGC, thereby removing the possibility
Commission is publishing this notice to are not members of the board of directors of
Intercontinental Exchange, Inc. (‘‘ICE’’). A person
may not be a Non-Affiliate Director unless he or she 5 Pursuant to Section 2.02 of the Operating
1 15 U.S.C.78s(b)(1). is free of any statutory disqualification, as defined Agreement, ‘‘Member Organizations’’ refers to
2 15 U.S.C. 78a.
in Section 3(a)(39) of the Exchange Act. Non- members and member organizations, as defined in
3 17 CFR 240.19b–4. Affiliate Directors need not be independent. NYSE MKT Rules 18 and 24, respectively.

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Document Created: 2016-04-12 00:47:20
Document Modified: 2016-04-12 00:47:20

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		81 FR 21635