81 FR 31983 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 98 (May 20, 2016)

Page Range		31983-31984
FR Document		2016-11871

Federal Register, Volume 81 Issue 98 (Friday, May 20, 2016)

[Federal Register Volume 81, Number 98 (Friday, May 20, 2016)]
[Notices]
[Pages 31983-31984]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-11871]


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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 19b-5 and Form PILOT, SEC File No. 270-448, OMB Control No. 
3235-0507.

    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 19b-5 (17 CFR 
240.19b-5) and Form PILOT (17 CFR 249.821) under the Securities 
Exchange

[[Page 31984]]

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.
    Rule 19b-5 provides a temporary exemption from the rule-filing 
requirements of Section 19(b) of the Act (15 U.S.C. 78s(b)) to self-
regulatory organizations (``SROs'') wishing to establish and operate 
pilot trading systems. Rule 19b-5 permits an SRO to develop a pilot 
trading system and to begin operation of such system shortly after 
submitting an initial report on Form PILOT to the Commission. During 
operation of any such pilot trading system, the SRO must submit 
quarterly reports of the system's operation to the Commission, as well 
as timely amendments describing any material changes to the system. 
Within two years of operating such pilot trading system under the 
exemption afforded by Rule 19b-5, the SRO must submit a rule filing 
pursuant to Section 19(b)(2) of the Act (15 U.S.C. 78s(b)(2)) to obtain 
permanent approval of the pilot trading system from the Commission.
    The collection of information is designed to allow the Commission 
to maintain an accurate record of all new pilot trading systems 
operated by SROs and to determine whether an SRO has properly availed 
itself of the exemption afforded by Rule 19b-5, is operating a pilot 
trading system in compliance with the Act, and is carrying out its 
statutory oversight obligations under the Act.
    The respondents to the collection of information are national 
securities exchanges and national securities associations.
    While there are 20 national securities exchanges and national 
securities associations that may avail themselves of the exemption 
under Rule 19b-5 and the use of Form PILOT, it is estimated that 
approximately three respondents will file a total of 3 initial reports, 
12 quarterly reports, and 6 amendments on Form PILOT per year, with an 
estimated total annual response burden of 126 hours and an estimated 
total annual cost burden of $10,047. At an average hourly cost of 
$272.33, the estimated aggregate related internal cost of compliance 
with respect to Rule 19b-5 for all respondents is $34,314 per year (126 
burden hours multiplied by $272.33/hour = $34,314).
    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 to be 
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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA 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: [email protected].

    Dated: May 16, 2016.
Robert W Errett,
Deputy Secretary.
[FR Doc. 2016-11871 Filed 5-19-16; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Notices 31983

child orders, and cancel/replace orders. III. Date of Effectiveness of the comments more efficiently, please use
The Exchange believes that Proposed Rule Change and Timing for only one method. The Commission will
distinguishing between complex orders Commission Action post all comments on the Commission’s
with 9 or more options legs and those The Exchange has filed the proposed Internet Web site (http://www.sec.gov/
orders with 8 or fewer options legs is a rule change pursuant to Section rules/sro.shtml). Copies of the
reasonable and objective approach. In 19(b)(3)(A)(iii) of the Act 21 and Rule submission, all subsequent
addition, the Exchange believes the 19b–4(f)(6) thereunder.22 Because the amendments, all written statements
proposal appropriately distinguishes proposed rule change does not: (i) with respect to the proposed rule
between parent/child orders that are Significantly affect the protection of change that are filed with the
generated by a broker’s efforts to obtain investors or the public interest; (ii) Commission, and all written
an execution on a larger size order while impose any significant burden on communications relating to the
minimizing market impact and multi- competition; and (iii) become operative proposed rule change between the
part orders that used by more prior to 30 days from the date on which Commission and any person, other than
sophisticated market participants. it was filed, or such shorter time as the those that may be withheld from the
Similarly, the Exchange believes that Commission may designate, if public in accordance with the
the proposal that cancel/replace orders consistent with the protection of provisions of 5 U.S.C. 552, will be
would count as separate orders with investors and the public interest, the available for Web site viewing and
limited exceptions is a reasonable and proposed rule change has become printing in the Commission’s Public
objective approach to distinguish the effective pursuant to Section 19(b)(3)(A) Reference Room, 100 F Street NE.,
orders of retail customers that are of the Act and Rule 19b–4(f)(6)(iii) Washington, DC 20549 on official
‘‘worked’’ by a broker from orders thereunder. business days between the hours of
generated by algorithms used by more At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of such
sophisticated market participants. filing of such proposed rule change, the filing also will be available for
Thus, the Exchange believes the Commission summarily may inspection and copying at the principal
proposal, which establishes an objective temporarily suspend such rule change if office of the Exchange. All comments
methodology for counting average daily it appears to the Commission that such received will be posted without change;
order submissions for Professional action is necessary or appropriate in the the Commission does not edit personal
Customer order counting purposes, is public interest, for the protection of identifying information from
consistent with the Act. investors, or otherwise in furtherance of submissions. You should submit only
the purposes of the Act. If the information that you wish to make
B. Self-Regulatory Organization’s Commission takes such action, the available publicly. All submissions
Statement on Burden on Competition Commission shall institute proceedings should refer to File No. SR–
under Section 19(b)(2)(B) 23 of the Act to NYSEARCA–2016–65, and should be
The Exchange does not believe that submitted on or before June 10, 2016.
determine whether the proposed rule
this proposed rule change would
change should be approved or For the Commission, by the Division of
impose any burden on competition not
disapproved. Trading and Markets, pursuant to delegated
necessary or appropriate in furtherance
IV. Solicitation of Comments authority.24
of the purposes of the Act. To the
contrary, the proposed rule change is a Robert W. Errett,
Interested persons are invited to
competitive change that is substantially Deputy Secretary.
submit written data, views, and
similar to recent rule changes filed by arguments concerning the foregoing, [FR Doc. 2016–11878 Filed 5–19–16; 8:45 am]
the CBOE and PHLX.20 including whether the proposed rule BILLING CODE 8011–01–P

The Exchange notes that one of the change is consistent with the Act.
purposes of the Professional Customer Comments may be submitted by any of
SECURITIES AND EXCHANGE
designation is to help ensure fairness in the following methods:
COMMISSION
the marketplace and promote Electronic Comments
competition among all market Proposed Collection; Comment
participants. The Exchange believes that • Use the Commission’s Internet
Request
this proposal would help establish more comment form (http://www.sec.gov/
competition among market participants rules/sro.shtml); or Upon Written Request, Copies Available
and promote the purposes for which the • Send an email to rule-comments@ From: Securities and Exchange
Exchange’s Professional Customer rule sec.gov. Please include File No. SR– Commission, Office of FOIA Services,
was originally adopted. Moreover, the NYSEARCA–2016–65 on the subject 100 F Street NE., Washington, DC
proposal would stem ensure consistency line. 20549–2736.
and stem potential confusion as to the Paper Comments Extension:
manner in which options exchanges Rule 19b–5 and Form PILOT, SEC File No.
• Send paper comments in triplicate
compute the Professional Customer 270–448, OMB Control No. 3235–0507.
to Secretary, Securities and Exchange
order volume. Notice is hereby given that, pursuant
Commission, 100 F Street NE.,
C. Self-Regulatory Organization’s Washington, DC 20549–1090. to the Paperwork Reduction Act of 1995
Statement on Comments on the All submissions should refer to File No. (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
mstockstill on DSK3G9T082PROD with NOTICES

Proposed Rule Change Received From SR–NYSEARCA–2016–65. This file
Members, Participants, or Others number should be included on the (‘‘Commission’’) is soliciting comments
subject line if email is used. To help the on the existing collection of information
No written comments were solicited Commission process and review your provided for in Rule 19b–5 (17 CFR
or received with respect to the proposed 240.19b–5) and Form PILOT (17 CFR
rule change. 21 15 U.S.C. 78s(b)(3)(A)(iii). 249.821) under the Securities Exchange
22 17 CFR 240.19b–4(f)(6).
20 See id. 23 15 U.S.C. 78s(b)(2)(B). 24 17 CFR 200.30–3(a)(12).

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31984 Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Notices

Act of 1934 (‘‘Act’’) (15 U.S.C. 78a et collection of information; (c) ways to Exchange’s Web site at www.nyse.com,
seq.). The Commission plans to submit enhance the quality, utility, and clarity at the principal office of the Exchange,
this existing collection of information to of the information to be collected; and and at the Commission’s Public
the Office of Management and Budget (d) ways to minimize the burden of the Reference Room.
(‘‘OMB’’) for extension and approval. collection of information on
Rule 19b–5 provides a temporary II. Self-Regulatory Organization’s
respondents, including through the use
exemption from the rule-filing Statement of the Purpose of, and
of automated collection techniques or
requirements of Section 19(b) of the Act Statutory Basis for, the Proposed Rule
other forms of information technology.
(15 U.S.C. 78s(b)) to self-regulatory Change
Consideration will be given to
organizations (‘‘SROs’’) wishing to comments and suggestions submitted in In its filing with the Commission, the
establish and operate pilot trading writing within 60 days of this self-regulatory organization included
systems. Rule 19b–5 permits an SRO to publication. statements concerning the purpose of,
develop a pilot trading system and to An agency may not conduct or and basis for, the proposed rule change
begin operation of such system shortly sponsor, and a person is not required to and discussed any comments it received
after submitting an initial report on respond to, a collection of information on the proposed rule change. The text
Form PILOT to the Commission. During under the PRA unless it displays a of those statements may be examined at
operation of any such pilot trading currently valid OMB control number. the places specified in Item IV below.
system, the SRO must submit quarterly Please direct your written comments The Exchange has prepared summaries,
reports of the system’s operation to the to: Pamela Dyson, Director/Chief set forth in sections A, B, and C below,
Commission, as well as timely Information Officer, Securities and of the most significant parts of such
amendments describing any material Exchange Commission, c/o Remi Pavlik- statements.
changes to the system. Within two years Simon, 100 F Street NE., Washington,
A. Self-Regulatory Organization’s
of operating such pilot trading system DC 20549 or send an email to: PRA_
Statement of the Purpose of, and
under the exemption afforded by Rule Mailbox@sec.gov.
Statutory Basis for, the Proposed Rule
19b–5, the SRO must submit a rule Dated: May 16, 2016. Change
filing pursuant to Section 19(b)(2) of the Robert W Errett,
Act (15 U.S.C. 78s(b)(2)) to obtain 1. Purpose
Deputy Secretary.
permanent approval of the pilot trading The purpose of this filing is to amend
[FR Doc. 2016–11871 Filed 5–19–16; 8:45 am]
system from the Commission. the Fee Schedule in a number of
BILLING CODE 8011–01–P
The collection of information is different ways, effective May 2, 2016.
designed to allow the Commission to Specifically, the Exchange proposes (i)
maintain an accurate record of all new to increase certain Take Liquidity Fees
SECURITIES AND EXCHANGE
pilot trading systems operated by SROs charged; (ii) to modify the Customer and
COMMISSION
and to determine whether an SRO has Professional Customer Incentive
properly availed itself of the exemption [Release No. 34–77835; File No. SR– Program; and (iii) to introduce a new
afforded by Rule 19b–5, is operating a NYSEARCA–2016–61]
qualification for Customer and
pilot trading system in compliance with Professional Customer Posting Credit
the Act, and is carrying out its statutory Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Tiers in Non-Penny Pilot Issues, as
oversight obligations under the Act. described below.
The respondents to the collection of Immediate Effectiveness of Proposed
information are national securities Rule Change To Amend the NYSE Arca Transaction Fees for Taking Liquidity
exchanges and national securities Options Fee Schedule
The Exchange proposes to modify the
associations. May 16, 2016. fees paid by Market Makers, Lead
While there are 20 national securities Pursuant to Section 19(b)(1) 1 of the Market Makers, Firms and Broker
exchanges and national securities Securities Exchange Act of 1934 Dealers, and Professional Customers
associations that may avail themselves (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 (collectively, ‘‘Non-Customers’’) for
of the exemption under Rule 19b–5 and notice is hereby given that, on May 2, Taking Liquidity in non-Penny Pilot
the use of Form PILOT, it is estimated 2016, NYSE Arca, Inc. (the ‘‘Exchange’’ Issues (‘‘Take Fees’’). Specifically, the
that approximately three respondents or ‘‘NYSE Arca’’) filed with the Exchange proposes to increase the Take
will file a total of 3 initial reports, 12 Securities and Exchange Commission Fee charged to Non-Customers from
quarterly reports, and 6 amendments on (‘‘Commission’’) the proposed rule $0.99 per contract to $1.08 per contract,
Form PILOT per year, with an estimated change as described in Items I, II, and which is within the range of fees
total annual response burden of 126 III below, which Items have been charged by competing option
hours and an estimated total annual cost prepared by the self-regulatory exchanges.4
burden of $10,047. At an average hourly organization. The Commission is
cost of $272.33, the estimated aggregate Customer and Professional Customer
publishing this notice to solicit Incentive Program (the ‘‘Incentive
related internal cost of compliance with comments on the proposed rule change
respect to Rule 19b–5 for all Program’’)
from interested persons.
respondents is $34,314 per year (126 The Exchange is proposing to increase
burden hours multiplied by $272.33/ I. Self-Regulatory Organization’s one of the credits available under the
hour = $34,314). Statement of the Terms of Substance of Incentive Program, which provides OTP
Written comments are invited on (a) the Proposed Rule Change Holders and OTP Firms (collectively,
mstockstill on DSK3G9T082PROD with NOTICES

whether the proposed collection of The Exchange proposes to amend the ‘‘OTPs’’) five alternatives to earn
information is necessary for the proper NYSE Arca Options Fee Schedule. The
performance of the functions of the proposed rule change is available on the 4 See, e.g., NASDAQ Options Market (‘‘NOM’’)

Commission, including whether the price list, available here, http://
www.nasdaqtrader.com/
information shall have practical utility; 1 15 U.S.C. 78s(b)(1). Micro.aspx?id=optionsPricing (charging non-
(b) the accuracy of the Commission’s 2 15 U.S.C. 78a. customers a $1.10 per contract take liquidity fee in
estimates of the burden of the proposed 3 17 CFR 240.19b–4. Non-Penny Pilot Issues).

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Document Created: 2016-05-20 02:00:20
Document Modified: 2016-05-20 02:00:20

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 31983