81 FR 26294 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 84 (May 2, 2016)

Page Range		26294-26295
FR Document		2016-10110

Federal Register, Volume 81 Issue 84 (Monday, May 2, 2016)

[Federal Register Volume 81, Number 84 (Monday, May 2, 2016)]
[Notices]
[Pages 26294-26295]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-10110]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-2736

Extension: Rule 302 SEC File No. 270-453, OMB Control No. 3235-0510

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and 
Exchange Commission (``Commission'') is soliciting comments on the 
existing collection of information provided for in Rule 302 (17 CFR 
242.302) of Regulation ATS (17 CFR 242.300 et seq.) under the 
Securities and Exchange Act of 1934 (``Act'') (15 U.S.C. 78a et seq.). 
The Commission plans to submit this existing collection of information 
to the Office of Management and Budget (``OMB'') for extension and 
approval.
    Regulation ATS sets forth a regulatory regime for ``alternative 
trading systems'' (``ATSs''), which are entities that carry out 
exchange functions but which are not required to register as national 
securities exchanges under the Act. In lieu of exchange registration, 
an ATS can instead opt to register with the Commission as a broker-
dealer and, as a condition to not having to register as an exchange, 
must instead comply with Regulation ATS. Rule 302 of Regulation ATS (17 
CFR 242.302) describes the recordkeeping requirements for ATSs. Under 
Rule 302, ATSs are required to make a record of subscribers to the ATS, 
daily summaries of trading in the ATS, and time-sequenced records of 
order information in the ATS.
    The information required to be collected under Rule 302 should 
increase the abilities of the Commission, state securities regulatory 
authorities, and the self-regulatory organizations to ensure that ATSs 
are in compliance with Regulation ATS as well as other applicable rules 
and regulations. If the information is not collected or collected less 
frequently, the regulators would be limited in their ability to comply 
with their statutory obligations, provide for the protection of 
investors, and promote the maintenance of fair and orderly markets.
    Respondents consist of ATSs that choose to register as broker-
dealers and comply with the requirements of Regulation ATS. There are 
currently 84 respondents. These respondents will spend approximately 
3,780 hours per year (84 respondents at 45 burden hours/respondent) to 
comply with the recordkeeping requirements of Rule 302. At an average 
cost per burden hour of $65, the resultant total related internal cost 
of compliance for these respondents is $245,700 per year (3,780 burden 
hours multiplied by $65/hour).
    Written comments are invited on (a) whether the proposed collection 
of information is necessary for the proper performance of the functions 
of the Commission, including whether the information shall have 
practical utility; (b) the accuracy of the Commission's estimates of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information collected; 
and (d) ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 
techniques or other forms of information technology. Consideration will 
be given to comments and suggestions submitted in writing within 60 
days of this publication.

[[Page 26295]]

    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.
    Please direct your written comments to: Pamela Dyson, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email 
to: PRA_Mailbox@sec.gov.

    Dated: April 26, 2016.
Robert E. Errett,
Deputy Secretary.
[FR Doc. 2016-10110 Filed 4-29-16; 8:45 am]
 BILLING CODE 8011-01-P

26294 Federal Register / Vol. 81, No. 84 / Monday, May 2, 2016 / Notices

any burden on competition that is not amendments, all written statements Regulation ATS sets forth a regulatory
necessary or appropriate in furtherance with respect to the proposed rule regime for ‘‘alternative trading systems’’
of the purposes of the Exchange Act. change that are filed with the (‘‘ATSs’’), which are entities that carry
The Exchange believes that the Commission, and all written out exchange functions but which are
proposed rule change will facilitate the communications relating to the not required to register as national
listing and trading of an additional type proposed rule change between the securities exchanges under the Act. In
of actively-managed exchange-traded Commission and any person, other than lieu of exchange registration, an ATS
product that will enhance competition those that may be withheld from the can instead opt to register with the
among market participants, to the public in accordance with the Commission as a broker-dealer and, as
benefit of investors and the marketplace. provisions of 5 U.S.C. 552, will be a condition to not having to register as
available for Web site viewing and an exchange, must instead comply with
C. Self-Regulatory Organization’s
printing in the Commission’s Public Regulation ATS. Rule 302 of Regulation
Statement on Comments on the
Reference Room, 100 F Street NE., ATS (17 CFR 242.302) describes the
Proposed Rule Change Received From
Washington, DC 20549, on official recordkeeping requirements for ATSs.
Members, Participants or Others
business days between the hours of Under Rule 302, ATSs are required to
Written comments were neither 10:00 a.m. and 3:00 p.m. Copies of the make a record of subscribers to the ATS,
solicited nor received. filing also will be available for daily summaries of trading in the ATS,
III. Date of Effectiveness of the inspection and copying at the principal and time-sequenced records of order
Proposed Rule Change and Timing for office of Nasdaq. All comments received information in the ATS.
Commission Action will be posted without change; the The information required to be
Commission does not edit personal collected under Rule 302 should
Within 45 days of the date of identifying information from increase the abilities of the Commission,
publication of this notice in the Federal submissions. You should submit only state securities regulatory authorities,
Register or within such longer period information that you wish to make and the self-regulatory organizations to
up to 90 days (i) as the Commission may available publicly. All submissions ensure that ATSs are in compliance
designate if it finds such longer period should refer to File Number SR– with Regulation ATS as well as other
to be appropriate and publishes its NASDAQ–2016–056 and should be applicable rules and regulations. If the
reasons for so finding or (ii) as to which submitted on or before May 23, 2016. information is not collected or collected
the self-regulatory organization less frequently, the regulators would be
consents, the Commission will: (a) By For the Commission, by the Division of
Trading and Markets, pursuant to delegated limited in their ability to comply with
order approve or disapprove such their statutory obligations, provide for
authority.41
proposed rule change; or (b) institute the protection of investors, and promote
proceedings to determine whether the Robert W. Errett,
Deputy Secretary. the maintenance of fair and orderly
proposed rule change should be markets.
disapproved. [FR Doc. 2016–10154 Filed 4–29–16; 8:45 am]
Respondents consist of ATSs that
BILLING CODE 8011–01–P
IV. Solicitation of Comments choose to register as broker-dealers and
Interested persons are invited to comply with the requirements of
submit written data, views, and SECURITIES AND EXCHANGE Regulation ATS. There are currently 84
arguments concerning the foregoing, COMMISSION respondents. These respondents will
including whether the proposed rule spend approximately 3,780 hours per
change is consistent with the Act. Proposed Collection; Comment year (84 respondents at 45 burden
Comments may be submitted by any Request hours/respondent) to comply with the
of the following methods: recordkeeping requirements of Rule 302.
Upon Written Request, Copies Available At an average cost per burden hour of
Electronic Comments From: Securities and Exchange $65, the resultant total related internal
• Use the Commission’s Internet Commission, Office of FOIA Services, cost of compliance for these
comment form (http://www.sec.gov/ 100 F Street NE., Washington, DC respondents is $245,700 per year (3,780
rules/sro.shtml); or 20549–2736 burden hours multiplied by $65/hour).
• Send an email to rule-comments@ Extension: Rule 302 SEC File No. 270–453, Written comments are invited on (a)
sec.gov. Please include File Number SR– OMB Control No. 3235–0510 whether the proposed collection of
NASDAQ–2016–056 on the subject line. information is necessary for the proper
Notice is hereby given that, pursuant performance of the functions of the
Paper Comments to the Paperwork Reduction Act of 1995 Commission, including whether the
• Send paper comments in triplicate (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the information shall have practical utility;
to Brent J. Fields, Secretary, Securities Securities and Exchange Commission (b) the accuracy of the Commission’s
and Exchange Commission, 100 F Street (‘‘Commission’’) is soliciting comments estimates of the burden of the proposed
NE., Washington, DC 20549–1090. on the existing collection of information collection of information; (c) ways to
All submissions should refer to File provided for in Rule 302 (17 CFR enhance the quality, utility, and clarity
Number SR–NASDAQ–2016–056. This 242.302) of Regulation ATS (17 CFR of the information collected; and (d)
file number should be included on the 242.300 et seq.) under the Securities and ways to minimize the burden of the
subject line if email is used. To help the Exchange Act of 1934 (‘‘Act’’) (15 U.S.C. collection of information on
srobinson on DSK5SPTVN1PROD with NOTICES

Commission process and review your 78a et seq.). The Commission plans to respondents, including through the use
comments more efficiently, please use submit this existing collection of of automated collection techniques or
only one method. The Commission will information to the Office of other forms of information technology.
post all comments on the Commission’s Management and Budget (‘‘OMB’’) for Consideration will be given to
Internet Web site (http://www.sec.gov/ extension and approval. comments and suggestions submitted in
rules/sro.shtml). Copies of the writing within 60 days of this
submission, all subsequent 41 17 CFR 200.30–3(a)(12). publication.

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Federal Register / Vol. 81, No. 84 / Monday, May 2, 2016 / Notices 26295

An agency may not conduct or during the Exchange’s regular trading Done, SNAP AOO- Pegged) that are
sponsor, and a person is not required to session. During the stages of a SNAP received during Open Trading State are
respond to, a collection of information (‘‘CHX SNAP Cycle’’), the Exchange queued in the SNAP Auction Only
unless it displays a currently valid OMB temporarily suspends automated trading Order (‘‘AOO’’) Queue and are eligible
control number. on the Exchange for the security subject for execution only during a SNAP
Please direct your written comments to the SNAP. At the conclusion of a Cycle.11
to: Pamela Dyson, Director/Chief CHX SNAP Cycle, the Exchange In the instant proposed rule change,
Information Officer, Securities and transitions back to automated trading for the Exchange proposes to permit the
Exchange Commission, c/o Remi Pavlik- the subject security. The SNAP Cycle Exchange to initiate a SNAP Cycle,
Simon, 100 F Street NE., Washington, has the following five stages, which are under certain circumstances, in the
DC 20549, or send an email to: PRA_ set forth in CHX Article 18, Rule 1: 5 (1) absence of a Start SNAP order. The
Mailbox@sec.gov. Initiating the SNAP; (2) SNAP Order Exchange would conduct pro forma
Acceptance Period; (3) Pricing and SNAP reviews of the contents of the
Dated: April 26, 2016.
Satisfaction Period; (4) Order Matching CHX book, SNAP AOO Queue, and
Robert E. Errett,
Period; and (5) Transition to Open Protected Quotations of external
Deputy Secretary. Trading State.6 markets for each SNAP-eligible security,
[FR Doc. 2016–10110 Filed 4–29–16; 8:45 am] Under the Exchange’s current rules, consecutively and continuously in a
BILLING CODE 8011–01–P only a Participant may initiate the preset order,12 and would initiate a
SNAP Cycle by submitting a valid limit SNAP Cycle for a security if a review
order marked Start SNAP.7 To initiate a projects that the aggregate number of
SECURITIES AND EXCHANGE SNAP Cycle, a Start SNAP order must executions would satisfy certain
COMMISSION meet certain size,8 price,9 and timing minimum size and notional value
[Release No. 34–77711; File No. SR–CHX– requirements.10 Orders marked with a requirements, as applicable. In
2016–01] SNAP Auction Only modifier (SNAP conducting the pro forma SNAP review,
AOO—Day, SNAP AOO—One and the Exchange would take a market
Self-Regulatory Organizations; snapshot of the Protected Quotations of
Chicago Stock Exchange, Inc.; Order 5 See generally Securities Exchange Act Release external markets in the subject security
Approving a Proposed Rule Change To No. 76087 (October 6, 2015), 80 FR 61540 (SR– and calculate a pro forma SNAP Price
CHX–2015–03) (‘‘Approval Order’’) (order
Adopt and Amend Rules To Permit the approving the adoption of the SNAP rules on the to determine: (1) Whether the projected
Exchange To Initiate CHX SNAP Cycles Exchange). The approved rule changes governing execution size (‘‘PES’’) at the pro forma
the SNAP are not yet operative and will become SNAP Price is equal to or greater than
April 26, 2016. operative upon two weeks’ notice by the Exchange the corresponding minimum PES; and
to its Participants. See Notice, supra note 3, 81 FR
I. Introduction at 13857, n.3. (2) whether the PES within the
6 Open Trading State means the period of time Matching System at the pro forma SNAP
On February 26, 2016, the Chicago
during the regular trading session when orders are Price would be equal to or greater than
Stock Exchange, Inc. (‘‘CHX’’ or eligible for automatic execution on the Exchange. 80% of the corresponding minimum
‘‘Exchange’’) filed with the Securities See CHX Article 1, Rule 1(qq).
PES. The minimum PES for an
and Exchange Commission 7 See CHX Article 1, Rule 2(h)(1) and CHX Article

18, Rule 1(b)(1). Exchange-initiated SNAP is either: (1)
(‘‘Commission’’), pursuant to Section
8 To initiate a SNAP Cycle, a Start SNAP order 2,500 Shares with a minimum aggregate
19(b)(1) of the Securities Exchange Act
must be for (a) at least 2,500 shares and have a notional value of $250,000 based on the
of 1934 (‘‘Act’’) 1 and Rule 19b–4 minimum aggregate notional value of $250,000 or midpoint of the NBBO ascertained from
thereunder,2 a proposed rule change to (b) at least 20,000 shares with no minimum
the market snapshot; or (2) 20,000
amend the functionality of the aggregate notional value requirement; provided,
however, that certain issues specified in the rule shares with no minimum aggregate
Exchange’s Sub-second Non-displayed may have special minimum size requirements. See notional value requirement; provided,
Auction Process (‘‘SNAP’’) to permit the CHX Article 1, Rule 2(h)(1)(A)(i). however, that the PES for Berkshire
Exchange to initiate the SNAP when 9 To initiate a SNAP Cycle, the limit price of a
Hathaway, Inc. (BRK–A) would be a flat
certain criteria are met. The proposed buy (sell) Start SNAP Order must be priced at or
100 shares.
rule change was published for comment through the National Best Offer (National Best Bid)
at the time the order was received by the Matching There would be restrictions on when
in the Federal Register on March 15, System. If the National Best Bid and Offer the Exchange may initiate a SNAP
2016.3 The Commission did not receive (‘‘NBBO’’) is crossed or a two-sided NBBO does not Cycle. Proposed Rule 1A(c) prohibits
any comment letters regarding the exist at the time the limit order marked Start SNAP
is received by the Matching System, the limit order
the Exchange from initiating a SNAP
proposed rule change. This order marked Start SNAP would not initiate a SNAP Cycle:
approves the proposed rule change. Cycle. A limit order marked Start SNAP and Sell (1) Within five minutes of the first
Short, as defined under CHX Article 1, Rule two-sided quote in the subject security
II. Overview of the Proposal 2(b)(3)(E), for a covered security subject to short
sale price test restriction, may not initiate a SNAP
having been received by the Exchange
The SNAP is designed to facilitate the from the primary market disseminated
Cycle and would be cancelled. See CHX Article 1,
bulk trading of a security within the Rule 2(h)(1)(A)(ii). after either the beginning of the regular
Exchange’s matching system (‘‘Matching 10 A Start SNAP order will initiate a SNAP Cycle
trading session or a trading halt, pause
System’’). The SNAP is a fully-hidden, only if it is received during the Exchange’s regular or suspension that required the
on-demand auction for a security that, trading session; provided, however, that it will not
initiate a SNAP Cycle if it is received (a) within five Exchange to suspend trading in the
under the Exchange’s current rules, may minutes of the first two-sided quote in the subject subject security;
be initiated only by the Exchange’s security having been received by the Exchange from (2) within five minutes of the end of
srobinson on DSK5SPTVN1PROD with NOTICES

Participants 4 and may occur only the primary market disseminated after either the the regular trading session;
beginning of the Exchange’s regular trading session
1 15
or a trading halt or pause that required the
U.S.C. 78s(b)(1). 11 See CHX Article 20, Rule 8(b)(2)(A) and CHX
Exchange to suspend trading in the subject security;
2 17 CFR 240.19b–4. (b) within five minutes of the end of the regular Article 18, Rule 1(b)(2)(A)(i).
3 See Securities Exchange Act Release No. 77331 12 The Exchange represents that it will not modify
trading session; (c) during a SNAP Cycle or (d)
(March 9, 2016), 81 FR 13857 (‘‘Notice’’). within one minute after the completion of the this procedure absent an approved filing pursuant
4 Article 1, Rule 1 of CHX’s Rules defines the term previous SNAP Cycle. See CHX Article 1, Rule to Rule 19b–4 under the Act. See Notice, supra note
‘‘Participant.’’ 2(h)(1)(A)(iii). 3, 81 FR at 13858, n.21.

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Document Created: 2016-04-30 13:35:01
Document Modified: 2016-04-30 13:35:01

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 26294