81 FR 21921 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 7015(g)(1) and 7034

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 71 (April 13, 2016)

Page Range		21921-21924
FR Document		2016-08425

Federal Register, Volume 81 Issue 71 (Wednesday, April 13, 2016)

[Federal Register Volume 81, Number 71 (Wednesday, April 13, 2016)]
[Notices]
[Pages 21921-21924]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-08425]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77552; File No. SR-NASDAQ-2016-053]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rules 7015(g)(1) and 7034

April 7, 2016.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 6, 2016, The NASDAQ Stock Market LLC (``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III, below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

The Exchange proposes to amend Access Services fees at Rule
7015(g)(1) to reduce the fee assessed for MITCH Wave Ports located at
Mahwah, NJ. The Exchange is also proposing to amend Rule 7034 to: (i)
Reduce monthly fees assessed for NYSE Equities market data
connectivity; and (ii) make technical changes to the description of
market data connectivity options under the rule. While these amendments
are effective upon filing, the Exchange has designated the proposed
amendments to be operative on April 1, 2016.\3\
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\3\ The Commission notes that the substance of this filing is
identical to the substance of SR-NASDAQ-2016-047, which was filed
March 29, 2016, and withdrawn on April 6, 2016. This filing replaced
SR-NASDAQ-2016-047, thus, the fee changes were effective upon filing
but have been operative since April 1, 2016.
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The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaq.cchwallstreet.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 Exchange 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 these 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 aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
The purpose of the proposed rule change is to reduce certain fees
under Rules 7015 and 7034, and to make technical changes to the
description of market data connectivity options under Rule 7034.

[[Page 21922]]

Rule 7015 Changes
The Exchange is proposing to reduce the fee assessed for MITCH Wave
Port at Mahwah, NJ monthly subscriptions. The Exchange provides Multi-
cast ITCH (``MITCH'') Wave Ports to clients co-located at other third-
party data centers, including the New York Stock Exchange`s (``NYSE'')
data center located in Mahwah, NJ, through which the Exchange's
TotalView ITCH market data is distributed after delivery to those data
centers via a wireless network.
The wirelessly-delivered TotalView ITCH market data arrives at
Exchange-owned cabinets located at these third-party data centers, to
which the co-location clients may cross-connect to the MITCH Wave Ports
in those data centers to receive TotalView ITCH.\4\ The wireless
network that the Exchange uses to connect its data center with third-
party data centers is provided and maintained by third-party vendors.
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\4\ Subscription to MITCH Wave Ports is entirely optional. Co-
location clients that opt to subscribe to MITCH Wave Ports will
continue to be fee liable for the applicable market data fees as
described in Rules 7019, 7023, and 7026.
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The Exchange incurs costs in leasing towers and equipment to
connect to third-party data centers, such as Mahwah, NJ, through its
third party vendors and the Exchange recoups these costs through the
fees it assesses. The Exchange has recently reduced such vendor cost
for connectivity to Mahwah, NJ by switching to an alternative vendor
that assesses the Exchange a lower fee for such connectivity and is
accordingly proposing to reduce the monthly charge assessed to
subscribers for a MITCH Wave Port at Mahwah, NJ from $12,500 per month
to $10,000 per month.
Rule 7034 Changes
The Exchange is proposing to amend Rule 7034 to: (i) Reduce monthly
fees assessed for NYSE Equities market data connectivity; and (ii) make
technical changes to the description of market data connectivity
options under the rule. Rule 7034 provides the charges assessed by the
Exchange for co-location services. Rule 7034(b) provides the various
connectivity options for co-location services. The Exchange offers
multicast Market Data feeds that are delivered to the Exchange's data
center located in Carteret, NJ via a wireless network.\5\ The Exchange
offers connectivity to data feeds provided by NYSE, BATS (including
Direct Edge), and CME, which are delivered wirelessly by third party
vendors from those market's [sic] data centers to the Exchange's
Carteret, NJ data center. Specifically, the NYSE Equities data feeds
under Rule 7034(b) are wirelessly delivered to Carteret, NJ from NYSE's
Mahwah, NJ data center, the BATS and Direct Edge data feeds are
wirelessly delivered to Carteret, NJ from BATS's Secaucus, NJ data
center, and the CME data feeds are wirelessly delivered to Carteret, NJ
from CME's Aurora, IL data center.
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\5\ Subscription to the connectivity options under Rule 7034(b)
is entirely optional. To receive a particular data feed, a
participant must subscribe to the connectivity under Rule 7034(b)
and also have a subscription to the data feed with the applicable
exchange.
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The first change the Exchange proposes is to reduce the recurring
monthly fee assessed for connectivity to NYSE Equities data feeds,
which are transmitted from the Mahwah, NJ data center to the Exchange's
data center in Carteret, NJ. As discussed above, the Exchange recently
reduced its vendor costs by switching to an alternative vendor that
assesses the Exchange a lower fee for such connectivity. Because of the
reduced vendor costs realized for connectivity to Mahwah, NJ, the
Exchange is able to reduce the charges assessed for services that
require wireless connectivity to Mahwah, NJ.
Currently, the Exchange assesses a recurring monthly fee of $12,500
for connectivity to NYSE Equities Arca Integrated feed and the for the
NYSE Equities Open Book feed. As a consequence of the reduced vendor
costs, the Exchange is proposing to reduce the charge it assesses as a
recurring monthly fee for each of these services from $12,500 to
$10,000.
The second change the Exchange proposes is to make technical
corrections to the rule text under Rule 7034(b) concerning NYSE
Equities Open Book connectivity and BATS Multicast PITCH connectivity.
NYSE recently combined Open Book data with NYSE BBO, NYSE Trades, and
NYSE Order Imbalances data to form the ``NYSE Integrated'' data
feed,\6\ which the Exchange began to offer on November 16, 2015.
Accordingly, the Exchange is [sic] updated the rule text under Rule
7034(b) to accurately reflect this change.
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\6\ See Securities Exchange Act Release No. 76485 (November 20,
2015), 80 FR 74158 (November 27, 2015) (SR-NYSE-2015-57).
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The Exchange is also correcting rule text concerning BATS Multicast
PITCH connectivity that was inadvertently introduced when the rule text
was adopted.\7\ Specifically, the Exchange is correcting the spelling
of ``Multicast'' in the rule and is correcting the name of the BATS BZX
exchange, which is currently spelled ``BZY.'' \8\
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\7\ See Securities Exchange Act Release No. 73562 (January 25,
2013), 78 FR 6842 (January 31, 2013) (SR-NASDAQ-2012-119)
\8\ For a description of Bats Global Markets, Inc.'s exchanges,
see http://www.batstrading.com/about/.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\9\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\10\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among members and issuers and other persons using any facility
or system which the Exchange operates or controls, and 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 mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest; and are not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (5).
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The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \11\ Likewise, in
NetCoalition v. Securities and Exchange Commission \12\
(``NetCoalition'') the DC Circuit upheld the Commission's use of a
market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\13\ As the court emphasized, the Commission ``intended in
Regulation NMS that `market forces, rather than regulatory
requirements' play a role in determining the market

[[Page 21923]]

data . . . to be made available to investors and at what cost.'' \14\
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\11\ See Securities Exchange Act Release No. 51808 at 37499
(June 9, 2005) (``Regulation NMS Adopting Release'').
\12\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
\13\ See NetCoalition, at 534.
\14\ Id. at 537.
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Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \15\
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\15\ Id. at 539 (quoting ArcaBook Order, 73 FR at 74782-74783).
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Fee Reductions
The Exchange believes that proposed reduction in the monthly
recurring fees assessed under Rules 7015 and 7034(b) are [sic]
reasonable because they [sic] will allow the Exchange to align the fees
assessed for the connectivity more closely with the costs incurred by
the Exchange in offering the connectivity. As discussed above, the
Exchange realized a reduction in its vendor costs. Vendors supply
wireless connectivity from the Exchange's data center to the data
centers of other markets. Vendor costs are not the only costs to the
Exchange in offering such connectivity; however, the reduced vendor
cost for wirelessly connecting to Mahwah, NJ has allowed the Exchange
to reduce the monthly fee assessed for connectivity to Mahwah, NJ by
$2,500.
The Exchange notes that the proposed reduced monthly recurring fees
are also reasonable because they are in-line with other fees assessed
for similar connectivity, with differences in cost being reflective of
the differences in the relative cost of offering the services. For
example, the proposed reduced fees assessed under Rule 7034(b) for
connectivity to the NYSE Equities feeds, although higher as reflection
of the increased costs the Exchange incurs in offering the
connectivity, are consistent with BATS Multicast PITCH BZX and BYX data
feed connectivity under Rule 7034(b), which has a monthly recurring fee
of $7,500. With respect to the costs incurred, the Exchange notes that
the distance, and hence the wireless network equipment required, is
greater between Mahwah, NJ and Carteret, NJ in contrast to the distance
between Secaucus, NJ and Carteret, NJ, which is reflected in the fees
that vendors charge the Exchange for such connectivity.
The Exchange believes that the proposed reduced fees are an
equitable allocation and are not unfairly discriminatory because the
Exchange will apply the same fee to all similarly situated co-location
clients that voluntarily select these service options. The Exchange
also notes that co-location clients will continue to have other
connectivity options to receive the underlying data feeds, including
fiber optic connectivity.
Fee Clarifications
The Exchange believes that the proposed clarifying changes to Rule
7034(b) serve to protect investors and the public interest because they
remove misspelled and inaccurate rule text, which will serve to avoid
investor confusion, and will not alter what is currently provided under
the rule.

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. In terms of inter-market
competition, 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, or rebate opportunities available at other venues to be more
favorable. In such an environment, the Exchange must continually adjust
its fees to remain competitive with other exchanges and with
alternative trading systems that have been exempted from compliance
with the statutory standards applicable to exchanges. Because
competitors are free to modify their own fees in response, and because
market participants may readily adjust their order routing practices,
the Exchange believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited.
In this instance, the proposed changes to the charges assessed co-
location clients for wireless connectivity do not impose a burden on
competition because the Exchange is reducing the monthly fees assessed
for such connectivity as a reflection of the Exchange's reduced vendor
costs. Such a proposal is reflective of healthy competition among
markets and may promote other exchanges to likewise reduce their costs
and/or reduce the fees that they assess for similar connectivity.
Although the Exchange does not believe that the proposed changes
will be unattractive to market participants, if they were it is likely
that the Exchange will lose subscribers as a result. Accordingly, the
Exchange does not believe that the proposed changes will impair the
ability of members or competing order execution venues to maintain
their competitive standing in the financial markets.

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

No written comments were either solicited or received.

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

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\16\
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\16\ 15 U.S.C. 78s(b)(3)(A)(ii).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic comments

Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2016-053 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 Number SR-NASDAQ-2016-053. 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

[[Page 21924]]

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 offices 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 Number SR-NASDAQ-2016-053, and should be submitted on or before
May 4, 2016.
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\17\ 17 CFR 200.30-3(a)(12).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-08425 Filed 4-12-16; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 71 / Wednesday, April 13, 2016 / Notices 21921

securities benchmark index (as defined identifying information from (‘‘Exchange’’) filed with the Securities
in Form N–1A). submissions. You should submit only and Exchange Commission (‘‘SEC’’ or
This approval order is based on all of information that you wish to make ‘‘Commission’’) the proposed rule
the Exchange’s representations, available publicly. All submissions change as described in Items I, II, and
including those set forth above and in should refer to File Number SR– III, below, which Items have been
the Amendment No. 1. The Commission NYSEArca–2016–14 and should be prepared by the Exchange. The
notes that the Fund and the Shares must submitted on or before May 4, 2016. Commission is publishing this notice to
comply with the requirements of NYSE solicit comments on the proposed rule
Arca Equities Rule 8.600 to be initially V. Accelerated Approval of the change from interested persons.
and continuously listed and traded on Proposed Rule Change, as Modified by
the Exchange. Amendment No. 1 I. Self-Regulatory Organization’s
The Commission finds good cause to Statement of the Terms of the Substance
IV. Solicitation of Comments on of the Proposed Rule Change
approve the proposed rule change, as
Amendment No. 1 The Exchange proposes to amend
modified by Amendment No. 1, prior to
Interested persons are invited to the thirtieth day after the date of Access Services fees at Rule 7015(g)(1)
submit written data, views, and publication of Amendment No. 1 in the to reduce the fee assessed for MITCH
arguments concerning the foregoing, Federal Register. The additional Wave Ports located at Mahwah, NJ. The
including whether Amendment No. 1 to information in Amendment No. 1, Exchange is also proposing to amend
the proposed rule change is consistent among other things, helped the Rule 7034 to: (i) Reduce monthly fees
with the Act. Comments may be Commission to evaluate the Shares’ assessed for NYSE Equities market data
submitted by any of the following susceptibility to manipulation and the connectivity; and (ii) make technical
methods: Exchange’s ability to investigate changes to the description of market
Electronic Comments possible manipulative activity. data connectivity options under the
Accordingly, the Commission finds rule. While these amendments are
• Use the Commission’s Internet good cause for approving the proposed effective upon filing, the Exchange has
comment form (http://www.sec.gov/ rule change, as modified by Amendment designated the proposed amendments to
rules/sro.shtml); or No. 1, on an accelerated basis, pursuant be operative on April 1, 2016.3
• Send an email to rule- The text of the proposed rule change
to Section 19(b)(2) of the Act.39
comments@sec.gov. Please include File is available on the Exchange’s Web site
Number SR–NYSEArca–2016–14 on the VI. Conclusion at http://nasdaq.cchwallstreet.com, at
subject line. It is therefore ordered, pursuant to the principal office of the Exchange, and
Paper Comments Section 19(b)(2) of the Exchange Act,40 at the Commission’s Public Reference
that the proposed rule change (SR– Room.
• Send paper comments in triplicate
NYSEArca–2016–14), as modified by II. Self-Regulatory Organization’s
to Secretary, Securities and Exchange
Amendment No. 1 thereto, be, and it Statement of the Purpose of, and
Commission, 100 F Street NE.,
hereby is, approved on an accelerated Statutory Basis for, the Proposed Rule
Washington, DC 20549–1090.
basis. Change
All submissions should refer to File
Number SR–NYSEArca–2016–14. This For the Commission, by the Division of In its filing with the Commission, the
file number should be included on the Trading and Markets, pursuant to delegated
Exchange included statements
authority.41
subject line if email is used. To help the concerning the purpose of and basis for
Robert W. Errett,
Commission process and review your the proposed rule change and discussed
comments more efficiently, please use Deputy Secretary. any comments it received on the
only one method. The Commission will [FR Doc. 2016–08422 Filed 4–12–16; 8:45 am] proposed rule change. The text of these
post all comments on the Commission’s BILLING CODE 8011–01–P statements may be examined at the
Internet Web site (http://www.sec.gov/ places specified in Item IV below. The
rules/sro.shtml). Copies of the Exchange has prepared summaries, set
submission, all subsequent SECURITIES AND EXCHANGE forth in sections A, B, and C below, of
amendments, all written statements COMMISSION the most significant aspects of such
with respect to the proposed rule [Release No. 34–77552; File No. SR– statements.
change that are filed with the NASDAQ–2016–053]
A. Self-Regulatory Organization’s
Commission, and all written
Self-Regulatory Organizations; The Statement of the Purpose of, and
communications relating to the
NASDAQ Stock Market LLC; Notice of Statutory Basis for, the Proposed Rule
proposed rule change between the
Filing and Immediate Effectiveness of Change
Commission and any person, other than
those that may be withheld from the Proposed Rule Change To Amend 1. Purpose
public in accordance with the Rules 7015(g)(1) and 7034 The purpose of the proposed rule
provisions of 5 U.S.C. 552, will be April 7, 2016. change is to reduce certain fees under
available for Web site viewing and Rules 7015 and 7034, and to make
Pursuant to Section 19(b)(1) of the
printing in the Commission’s Public technical changes to the description of
Securities Exchange Act of 1934
Reference Room, 100 F Street NE.,
asabaliauskas on DSK3SPTVN1PROD with NOTICES

(‘‘Act’’),1 and Rule 19b–4 thereunder,2 market data connectivity options under
Washington, DC 20549 on official Rule 7034.
notice is hereby given that on April 6,
business days between the hours of
2016, The NASDAQ Stock Market LLC
10:00 a.m. and 3:00 p.m. Copies of the 3 The Commission notes that the substance of this

filing also will be available for 39 15 U.S.C. 78s(b)(2).
filing is identical to the substance of SR–NASDAQ–
inspection and copying at the principal 40 15 U.S.C. 78s(b)(2).
2016–047, which was filed March 29, 2016, and
withdrawn on April 6, 2016. This filing replaced
office of the Exchange. All comments 41 17 CFR 200.30–3(a)(12).
SR–NASDAQ–2016–047, thus, the fee changes were
received will be posted without change; 1 15 U.S.C. 78s(b)(1).
effective upon filing but have been operative since
the Commission does not edit personal 2 17 CFR 240.19b–4. April 1, 2016.

VerDate Sep<11>2014 17:41 Apr 12, 2016 Jkt 238001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 E:\FR\FM\13APN1.SGM 13APN1

21924 Federal Register / Vol. 81, No. 71 / Wednesday, April 13, 2016 / Notices

amendments, all written statements opened or established by associated approve or disapprove the proposed
with respect to the proposed rule persons of members at firms other than rule change to April 8, 2016.9 On March
change that are filed with the the firm with which they are associated. 2, 2016, FINRA responded to the
Commission, and all written The proposed rule change was comment letter received in response to
communications relating to the published for comment in the Federal the Order Instituting Proceedings and
proposed rule change between the Register on August 14, 2015.3 The filed Partial Amendment No. 2.10
Commission and any person, other than comment period closed on September 4, This order approves the proposed rule
those that may be withheld from the 2015. On September 22, 2015, FINRA change, as modified by Partial
public in accordance with the extended the time period in which the Amendment No. 1 and Partial
provisions of 5 U.S.C. 552, will be Commission must approve the proposed Amendment No. 2 (collectively, the
available for Web site viewing and rule change, disapprove the proposed ‘‘Amendments’’).11
printing in the Commission’s Public rule change, or institute proceedings to
Reference Room, 100 F Street NE., determine whether to approve or II. Description of the Proposed Rule
Washington, DC 20549 on official disapprove the proposed rule change to Change 12
business days between the hours of November 12, 2015. The Commission
received four comment letters in As part of the process of developing
10:00 a.m. and 3:00 p.m. Copies of such
response to the Notice.4 On November a new consolidated rulebook
filing also will be available for
10, 2015, FINRA responded to the (‘‘Consolidated FINRA Rulebook’’),13
inspection and copying at the principal
comments and filed Partial Amendment FINRA is proposing to adopt new
offices of the Exchange. All comments
received will be posted without change; No. 1 to the current proposal.5 On FINRA Rule 3210 (Accounts at Other
the Commission does not edit personal November 12, 2015, the Commission Broker-Dealers and Financial
identifying information from issued an order instituting proceedings Institutions) in the Consolidated FINRA
submissions. You should submit only pursuant to Exchange Act section Rulebook, and to delete NASD Rule
information that you wish to make 19(b)(2)(B) 6 to determine whether to 3050, Incorporated New York Stock
available publicly. All submissions approve or disapprove the proposed Exchange (‘‘NYSE’’) Rules 407 and
should refer to File Number SR– rule change, as modified by Partial 407A, and Incorporated NYSE Rule
NASDAQ–2016–053, and should be Amendment No. 1.7 The Commission Interpretations 407/01 and 407/02.14
submitted on or before May 4, 2016. received one (1) comment letter in A. Current NASD Rule 3050
For the Commission, by the Division of
response to the Order Instituting
Trading and Markets, pursuant to delegated Proceedings.8 On February 10, 2016, the Current NASD Rule 3050 provides a
authority.17 Commission published a notice means to inform member firms about
Robert W. Errett, extending the time period in which the transactions effected by their associated
Commission must determine whether to persons in accounts established outside
Deputy Secretary.
the firm. This information gives
[FR Doc. 2016–08425 Filed 4–12–16; 8:45 am] 3 See Exchange Act Rel. No. 75655 (Aug. 10, members an opportunity to weigh the
BILLING CODE 8011–01–P 2015), 80 FR 48941 (Aug. 14, 2015) (File No. SR– effect these accounts may have on the
FINRA–2015–029) (‘‘Notice’’).
4 See Letters from Eric Arnold and Clifford
firm and its customers.15 The rule
Kirsch, Sutherland Asbill & Brennan LLP (for the imposes specified obligations on
SECURITIES AND EXCHANGE
Committee of Annuity Insurers), dated September 4,
COMMISSION 2015 (‘‘Sutherland Letter’’); Michael J. Hogan, 9 See Exchange Act Release No. 77103 (Feb. 10,

[Release No. 34–77550; File No. SR–FINRA– President and Chief Executive Officer, FOLIOfn 2016), 81 FR 8109 (Feb. 17, 2016) (Notice of
Investments, Inc., dated September 4, 2015 Designation of a Longer Period for Commission
2015–029]
(‘‘FOLIOfn Letter’’); Joseph C. Peiffer, President, Action on Proceedings to Determine Whether to
Public Investors Arbitration Bar Association Approve or Disapprove a Proposed Rule Change to
Self-Regulatory Organizations; (‘‘PIABA’’), dated September 3, 2015 (‘‘PIABA Adopt FINRA Rule 3210 (Accounts at Other Broker-
Financial Industry Regulatory Letter’’); and Kevin Zambrowicz, Associate General Dealers and Financial Institutions), as Modified by
Authority, Inc.; Order Approving Counsel & Managing Director, and Stephen Vogt, Partial Amendment No. 1, in the Consolidated
Assistant Vice President & Assistant General FINRA Rulebook).
Proposed Rule Change To Adopt Counsel, Securities Industry and Financial Markets 10 See Letter from Patrice Gliniecki, Senior Vice
FINRA Rule 3210 (Accounts at Other Association (‘‘SIFMA’’), dated September 3, 2015 President and Deputy General Counsel, FINRA, to
Broker-Dealers and Financial (‘‘SIFMA Letter’’). Comment letters are available at the Commission, dated March 2, 2016 (‘‘FINRA’s
Institutions), as Modified by Partial www.sec.gov. The Commission discussed these Second Letter’’). FINRA’s Second Letter and the text
comments in the Order Instituting Proceedings. See of Partial Amendment No. 2 are available on
Amendment No. 1 and Partial infra note 7.
Amendment No. 2, in the Consolidated FINRA’s Web site at http://www.finra.org, at the
5 See Letter from Patrice Gliniecki, Senior Vice
principal office of FINRA, and at the Commission’s
FINRA Rulebook President and Deputy General Counsel, FINRA, to Public Reference Room.
the Commission, dated November 10, 2015 11 The text of the proposed rule changes is
April 7, 2016 (‘‘FINRA Response Letter’’). The FINRA Response
available at the principal office of FINRA, on
Letter and the text of Partial Amendment No. 1 are
I. Introduction FINRA’s Web site at http://www.finra.org, and at
available on FINRA’s Web site at http://
the Commission’s Public Reference Room. In
www.finra.org, at the principal office of FINRA, at
On July 31, 2015, Financial Industry the Commission’s Web site at http://www.sec.gov/ addition, you may also find a more detailed
Regulatory Authority, Inc. (‘‘FINRA’’) rules/sro/finra/2015/34-75655.pdf, and at the description of the original proposed rule change, as
filed with the Securities and Exchange Commission’s Public Reference Room. amended by Amendment No. 1, in the Notice, and
Order Instituting Proceedings.
Commission (‘‘Commission’’), pursuant 6 15 U.S.C. 78s(b)(2)(B).
12 The proposed rule change, as described in this
asabaliauskas on DSK3SPTVN1PROD with NOTICES

7 See Exchange Act Release No. 76430 (Nov. 12,
to section 19(b)(1) of the Securities Item II, is excerpted, in part, from the Notice, which
2015), 80 FR 72118 (Nov. 18, 2015) (Order
Exchange Act of 1934 (‘‘Exchange Instituting Proceedings To Determine Whether To was substantially prepared by FINRA. See Notice.
Act’’) 1 and Rule 19b–4 thereunder,2 a Approve or Disapprove Proposed Rule Change to
13 The current FINRA rulebook consists of: (1)

proposed rule change to adopt a new, Adopt FINRA Rule 3210 (Accounts at Other Broker- FINRA Rules; (2) NASD Rules; and (3) rules
Dealers and Financial Institutions), as Modified by incorporated from NYSE (‘‘Incorporated NYSE
consolidated rule addressing accounts Rules’’). See id.
Partial Amendment No. 1) (‘‘Order Instituting
Proceedings’’)). The comment period closed on 14 For convenience, the Incorporated NYSE Rules
17 17 CFR 200.30–3(a)(12). December 9, 2015. are referred to as the ‘‘NYSE Rules.’’
1 15 U.S.C. 78s(b)(1). 8 See Letter from Laura Crosby-Brown, dated 15 See Exchange Act Release No. 4924 (Aug. 21,
2 17 CFR 240.19b–4. November 13, 2015 (‘‘Crosby-Brown Letter’’). 1953).

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Document Created: 2016-04-13 03:10:34
Document Modified: 2016-04-13 03:10:34

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 21921