81 FR 29311 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, To List and Trade Shares of the Pointbreak Diversified Commodity Strategy Fund of the Pointbreak ETF Trust Under BATS Rule 14.11(i), Managed Fund Shares
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 91 (May 11, 2016)
Federal Register Volume 81, Issue 91 (May 11, 2016)
| Page Range | 29311-29312 | |
| FR Document | 2016-11011 |
[Federal Register Volume 81, Number 91 (Wednesday, May 11, 2016)] [Notices] [Pages 29311-29312] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-11011] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77770; File No. SR-BATS-2016-16] Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, To List and Trade Shares of the Pointbreak Diversified Commodity Strategy Fund of the Pointbreak ETF Trust Under BATS Rule 14.11(i), Managed Fund Shares May 5, 2016. On March 7, 2016, BATS Exchange, Inc. (``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade shares of the Pointbreak Diversified Commodity Strategy Fund of the Pointbreak ETF Trust under BATS Rule 14.11(i). The proposed rule change was published for comment in the [[Page 29312]] Federal Register on March 22, 2016.\3\ On April 8, 2016, the Exchange submitted Amendment No. 1 to the proposed rule change, and on April 14, 2016, the Exchange submitted Amendment No. 2 to the proposed rule change.\4\ The Commission received no comment letters on the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 77379 (March 16, 2016), 81 FR 15387. \4\ Amendment No. 1 replaced and superseded the original filing in its entirety. Amendment No. 1 is available at http://www.sec.gov/comments/sr-bats-2016-16/bats201616-1.pdf. Amendment No. 2 amended the filing. Amendment No. 2 is available at http://www.sec.gov/comments/sr-bats-2016-16/bats201616-2.pdf. --------------------------------------------------------------------------- Section 19(b)(2) of the Act \5\ provides that, within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The Commission is extending this 45-day time period. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change. Accordingly, the Commission, pursuant to section 19(b)(2) of the Act,\6\ designates June 20, 2016, as the date by which the Commission should either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change (File Number SR-BATS-2016-16), as modified by Amendment Nos. 1 and 2. --------------------------------------------------------------------------- \6\ Id. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(31). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-11011 Filed 5-10-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 91 / Wednesday, May 11, 2016 / Notices 29311
clearing agency within the meaning of does not believe the changes impose any Commission, and all written
Section 17A(b)(3)(F) 9 of the Act. burden on competition that is communications relating to the
Finally, Section 17A(b)(3)(D) 10 of the inappropriate in furtherance of the proposed rule change between the
Act requires that the rules of a clearing purposes of the Act. Commission and any person, other than
agency provide for the equitable those that may be withheld from the
allocation of reasonable dues, fees, and C. Self-Regulatory Organization’s public in accordance with the
other charges among its participants. Statement on Comments on the provisions of 5 U.S.C. 552, will be
ICC believes that the proposed changes Proposed Rule Change Received From available for Web site viewing and
are consistent with the requirements of Members, Participants or Others printing in the Commission’s Public
the Act and the rules and regulations Written comments relating to the Reference Room, 100 F Street NE.,
thereunder applicable to ICC, in proposed rule change have not been Washington, DC 20549, on official
particular, to Section 17(A)(b)(3)(D),11 solicited or received. ICC will notify the business days between the hours of
because under the proposed changes all Commission of any written comments 10:00 a.m. and 3:00 p.m. Copies of such
CPs, including those within an affiliate received by ICC. filings will also be available for
group, remain subject to potential Firm inspection and copying at the principal
Trades for any given submission, on a III. Date of Effectiveness of the
office of ICE Clear Credit and on ICE
randomized basis. For example, in the Proposed Rule Change and Timing for
Clear Credit’s Web site at https://
instance where only one CP within an Commission Action
www.theice.com/clear-credit/regulation.
affiliate group provides an off market Within 45 days of the date of All comments received will be posted
submission resulting in a Firm Trade, publication of this notice in the Federal without change; the Commission does
the notional limit will be the full Register or within such longer period not edit personal identifying
notional limit amount. The proposed up to 90 days (i) as the Commission may information from submissions. You
changes provide risk mitigation by designate if it finds such longer period should submit only information that
limiting the cumulative risk exposure to be appropriate and publishes its you wish to make available publicly. All
that one institution may be required to reasons for so finding or (ii) as to which submissions should refer to File
hold overnight as a result of a trading the self-regulatory organization Number SR–ICC–2016–007 and should
desk providing an off-market consents, the Commission will: be submitted on or before June 1, 2016.
submission multiple times, for affiliated (A) By order approve or disapprove For the Commission, by the Division of
entities in a CP affiliate group. As such, such proposed rule change, or Trading and Markets, pursuant to delegated
the proposed changes provide for the (B) institute proceedings to determine authority.13
equitable allocation of reasonable dues, whether the proposed rule change Robert W. Errett,
fees, and other charges among ICC’s should be disapproved. Deputy Secretary.
participants within the meaning of IV. Solicitation of Comments [FR Doc. 2016–11012 Filed 5–10–16; 8:45 am]
Section 17A(b)(3)(D) 12 of the Act. BILLING CODE 8011–01–P
Interested persons are invited to
B. Self-Regulatory Organization’s submit written data, views, and
Statement on Burden on Competition arguments concerning the foregoing,
SECURITIES AND EXCHANGE
ICC does not believe the proposed including whether the proposed rule
COMMISSION
rule change would have any impact, or change is consistent with the Act.
impose any burden, on competition. Comments may be submitted by any of [Release No. 34–77770; File No. SR–BATS–
The proposed changes to the calculation the following methods: 2016–16]
of single name Firm Trade notional Electronic Comments Self-Regulatory Organizations; BATS
limits apply uniformly across all CPs. Exchange, Inc.; Notice of Designation
ICC has identified an increase in • Use the Commission’s Internet
comment form (http://www.sec.gov/ of a Longer Period for Commission
multiple CP memberships per holding Action on a Proposed Rule Change, as
company, as holding companies rules/sro.shtml); or
• Send an email to rule-comments@ Modified by Amendment Nos. 1 and 2,
maintain membership as a self-clearing To List and Trade Shares of the
member (‘‘SCM’’) and as a futures sec.gov. Please include File Number SR–
ICC–2016–007 on the subject line. Pointbreak Diversified Commodity
commission merchant (‘‘FCM’’)/broker- Strategy Fund of the Pointbreak ETF
dealer (‘‘BD’’). Under the current Paper Comments Trust Under BATS Rule 14.11(i),
system, those CPs who maintain Managed Fund Shares
Send paper comments in triplicate to
multiple memberships may be unduly
Secretary, Securities and Exchange May 5, 2016.
burdened under ICC’s end-of-day
Commission, 100 F Street NE., On March 7, 2016, BATS Exchange,
process, which was established prior to
Washington, DC 20549–1090. Inc. (‘‘Exchange’’) filed with the
this membership construct. Such
changes will correct this discrepancy. All submissions should refer to File Securities and Exchange Commission
Further, such changes do not Number SR–ICC–2016–007. This file (‘‘Commission’’), pursuant to section
improperly overly burden single CPs in number should be included on the 19(b)(1) of the Securities Exchange Act
furtherance of the purposes of the Act. subject line if email is used. To help the of 1934 (‘‘Act’’) 1 and Rule 19b–4
The notional limits are designed to Commission process and review your thereunder,2 a proposed rule change to
balance the need to incentivize CPs to comments more efficiently, please use list and trade shares of the Pointbreak
only one method. The Commission will
mstockstill on DSK3G9T082PROD with NOTICES
provide quality end-of-day submissions Diversified Commodity Strategy Fund of
with the maintenance of a safe and post all comments on the Commission’s the Pointbreak ETF Trust under BATS
secure clearing system. Therefore, ICC Internet Web site (http://www.sec.gov/ Rule 14.11(i). The proposed rule change
rules/sro.shtml). Copies of the was published for comment in the
9 Id. submission, all subsequent
10 15 U.S.C. 78q–1(b)(3)(D). amendments, all written statements 13 17 CFR 200.30–3(a)(12).
11 Id. with respect to the proposed rule 1 15 U.S.C. 78s(b)(1).
12 Id. change that are filed with the 2 17 CFR 240.19b–4.
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![29312 Federal Register / Vol. 81, No. 91 / Wednesday, May 11, 2016 / Notices
Federal Register on March 22, 2016.3 SECURITIES AND EXCHANGE assessment; and performance objectives
On April 8, 2016, the Exchange COMMISSION setting and monitoring. Specifically, the
submitted Amendment No. 1 to the content for each risk process will be
[Release No. 34–77769; File No. SR–ICC–
proposed rule change, and on April 14, 2016–003]
reorganized to fall into each of the
2016, the Exchange submitted operational risk lifecycle components
Amendment No. 2 to the proposed rule Self-Regulatory Organizations; ICE (i.e., identify, assess, monitor, mitigate,
change.4 The Commission received no Clear Credit LLC; Order Approving and report).
comment letters on the proposed rule Proposed Rule Change To Revise the In addition, ICC will add information
ICC Operational Risk Management regarding the ‘assess’ and ‘report’
change.
Framework component of the risk assessment
Section 19(b)(2) of the Act 5 provides process. Specifically, ICC represents
that, within 45 days of the publication May 5, 2016. that it will assess each of its risk
of notice of the filing of a proposed rule scenarios to determine the inherent risk
I. Introduction
change, or within such longer period up rating associated with the occurrence of
to 90 days as the Commission may On March 10, 2016, ICE Clear Credit an event or incident, as well as the
designate if it finds such longer period LLC (‘‘ICC’’) filed with the Securities effectiveness of any relevant risk
to be appropriate and publishes its and Exchange Commission controls. Further, in the ‘report’
reasons for so finding or as to which the (‘‘Commission’’), pursuant to Section component, ICC will clarify that the
19(b)(1) of the Securities Exchange Act ORM presents operational risk reporting
self-regulatory organization consents,
of 1934 (‘‘Act’’) 1 and Rule 19b–4 to an internal committee which includes
the Commission shall either approve the
thereunder,2 a proposed rule change members of senior management. The
proposed rule change, disapprove the (SR–ICC–2016–003) to update ICC’s
proposed rule change, or institute responsibilities of the ORM, which is
Operational Risk Management currently listed out in the document,
proceedings to determine whether the Framework. The proposed rule change will be incorporated into the risk
proposed rule change should be was published for comment in the lifecycles. ICC respresents that the ORM
disapproved. The Commission is Federal Register on March 21, 2016.3 will continue to provide management
extending this 45-day time period. The Commission did not receive and staff with advice and guidance
The Commission finds that it is comments on the proposed rule change. related to the development of controls
appropriate to designate a longer period For the reasons discussed below, the designed to increase performance and
within which to take action on the Commission is approving the proposed reduce processing risk, as part of the
proposed rule change so that it has rule change. ‘mitigate’ risk lifecycle component.
sufficient time to consider the proposed II. Description of the Proposed Rule Similarly, the responsibilities of senior
rule change. Accordingly, the Change management, which is currently listed
Commission, pursuant to section out in the document, will be
The ICC Operational Risk incorporated into the risk lifecycles.
19(b)(2) of the Act,6 designates June 20, Management Framework details ICC’s
2016, as the date by which the ICC will categorize those aspects of
program of risk assessment and the operational risk management
Commission should either approve or oversight, managed by the Operational program which do not fall within this
disapprove or institute proceedings to Risk Manager (‘‘ORM’’), which, lifecycle as ‘‘Operational Risk Focus
determine whether to disapprove the according to ICC, aims to reduce Areas.’’ These risk focus areas include:
proposed rule change (File Number SR– operational incidents, encourage Business continuity planning and
BATS–2016–16), as modified by process and control improvement, bring disaster recovery; vendor assessment;
Amendment Nos. 1 and 2. transparency to operational performance new products and initiatives;
For the Commission, by the Division of
standard monitoring, and fulfill information security; and technology
Trading and Markets, pursuant to delegated
regulatory obligations. ICC proposes control functions. ICC will reorganize
authority.7
organizational changes to its the order of these risk focus areas to
Operational Risk Management better distinguish which functions may,
Robert W. Errett, Framework related to its operational
Deputy Secretary.
with oversight by the ORM, be
risk management processes. outsourced to Intercontinental
[FR Doc. 2016–11011 Filed 5–10–16; 8:45 am] ICC will revise the Operational Risk Exchange, Inc. (‘‘ICE, Inc.’’) or
BILLING CODE 8011–01–P Management Framework to frame its performed by departments dedicated to
existing operational risk program and that particular risk area.
processes around an operational risk ICC will make several clarifying and
lifecycle, which according to ICC, is organizational enhancements to the
designed to highlight certain aspects of various risk focus area descriptions.
the processes and present the processes Further, specific details contained
in a more efficient manner. The within other ICC policies and
operational risk lifecycle utilized by ICC procedures will be removed and
3 See Securities Exchange Act Release No. 77379 will have five components: Identify, described more generally within the
(March 16, 2016), 81 FR 15387. assess, monitor, mitigate and report. Operational Risk Management
4 Amendment No. 1 replaced and superseded the Each of these lifecycle components will Framework, in an effort to reduce
original filing in its entirety. Amendment No. 1 is be first defined generally in the redundancy amongst ICC policies and
mstockstill on DSK3G9T082PROD with NOTICES
available at http://www.sec.gov/comments/sr-bats- document then applied to each of ICC’s procedures. ICC will continue to
2016-16/bats201616-1.pdf. Amendment No. 2 two operational risk processes: Risk
amended the filing. Amendment No. 2 is available maintain business continuity planning
at http://www.sec.gov/comments/sr-bats-2016-16/ 1 15
and disaster recovery as two separate
U.S.C. 78s(b)(1).
bats201616-2.pdf. 2 17
programs with separate and distinct
CFR 240.19b–4.
5 15 U.S.C. 78s(b)(2).
3 Securities Exchange Act Release No. 34–77413 components; however, ICC will group
6 Id.
(March 21, 2016), 81 FR 16245 (March 25, 2016) the description of these programs
7 17 CFR 200.30–3(a)(31). (SR–ICC–2016–003). together for purposes of the Operational
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Document Created: 2016-05-11 01:11:32
Document Modified: 2016-05-11 01:11:32
| 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 29311 |
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