81 FR 3218 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Designation of Longer Period for Commission Action on a Proposed Rule Change To Adopt Rule 11.27 Regarding the Data Collection Requirements of the Tick Size Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 12 (January 20, 2016)

Page Range		3218-3218
FR Document		2016-00902

Federal Register, Volume 81 Issue 12 (Wednesday, January 20, 2016)

[Federal Register Volume 81, Number 12 (Wednesday, January 20, 2016)]
[Notices]
[Page 3218]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00902]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76891; File No. SR-BATS-2015-102]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Designation of Longer Period for Commission Action on a Proposed Rule 
Change To Adopt Rule 11.27 Regarding the Data Collection Requirements 
of the Tick Size Pilot Program

January 13, 2016.
    On November 13, 2015, BATS Exchange, Inc. (the ``Exchange'' or 
``BATS'') 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 adopt Exchange Rule 11.27 to implement the data 
collection requirements set forth in the Regulation NMS Plan to 
Implement a Tick Size Pilot Program.\3\ The proposed rule change was 
published for comment in the Federal Register on December 1, 2015.\4\ 
The Commission has received one comment letter on the proposal.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 74892 (May 6, 2015), 
80 FR 27513 (May 13, 2015) (order approving the Tick Size Pilot) 
(``Approval Order'').
    \4\ See Securities Exchange Act Release No. 76524 (November 25, 
2015), 80 FR 75141.
    \5\ See Letter from Mary Lou Von Kaenel, Managing Director, 
Financial Information Forum, to Robert W. Errett, Deputy Secretary, 
Commission, dated December 22, 2015.
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    Section 19(b)(2) of the Act \6\ provides that, within 45 days of 
the publication of the 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 45th day for this filing is January 15, 2016.
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    \6\ 15 U.S.C. 78s(b)(2).
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    The Commission is extending this 45-day time period. 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 proposal.
    Accordingly, pursuant to section 19(b)(2) of the Act,\7\ the 
Commission designates February 29, 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 No. 
SR-BATS-2015-102).
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    \7\ Id.
    \8\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Robert W. Errett.
 Deputy Secretary.
[FR Doc. 2016-00902 Filed 1-19-16; 8:45 am]
 BILLING CODE 8011-01-P

3218 Federal Register / Vol. 81, No. 12 / Wednesday, January 20, 2016 / Notices

disapprove, the proposed rule change should be disapproved. The 45th day for notify DTC of its refusal to settle on
(File No. SR–ISE–2015–30). this filing is January 15, 2016. behalf of a Participant or Participants for
For the Commission, by the Division of The Commission is extending this 45- which it is the designated Settling Bank
Trading and Markets, pursuant to delegated day time period. The Commission finds will be deemed to have acknowledged
authority.6 that it is appropriate to designate a its end-of-day net-net settlement balance
Robert W. Errett, longer period within which to take and to make related technical changes
Deputy Secretary. action on the proposed rule change so and corrections to the Rules, as more
that it has sufficient time to consider the fully described below. The proposed
[FR Doc. 2016–00903 Filed 1–19–16; 8:45 am]
proposal. rule change was published for comment
BILLING CODE 8011–01–P
Accordingly, pursuant to section in the Federal Register on November 30,
19(b)(2) of the Act,7 the Commission 2015.6 The Commission did not receive
designates February 29, 2016, as the any comment letters on the proposed
SECURITIES AND EXCHANGE
date by which the Commission should rule change. For the reasons discussed
COMMISSION
either approve or disapprove or institute below, the Commission is granting
proceedings to determine whether to approval of the proposed rule change.
[Release No. 34–76891; File No. SR–BATS– disapprove the proposed rule change
2015–102] I. Description of the Proposed Rule
(File No. SR–BATS–2015–102).
Change
Self-Regulatory Organizations; BATS For the Commission, by the Division of
Trading and Markets, pursuant to delegated The following is a description of the
Exchange, Inc.; Notice of Designation proposed rule change, as provided by
of Longer Period for Commission authority.8
Robert W. Errett. DTC:
Action on a Proposed Rule Change To Background. The DTC 7 end-of-day
Adopt Rule 11.27 Regarding the Data Deputy Secretary.
net settlement structure depends upon
Collection Requirements of the Tick [FR Doc. 2016–00902 Filed 1–19–16; 8:45 am] the use of Settling Banks.8 Each
Size Pilot Program BILLING CODE 8011–01–P Participant must designate a Settling
January 13, 2016. Bank to settle on its behalf. Any
On November 13, 2015, BATS Participant that is a bank may settle for
SECURITIES AND EXCHANGE itself.9 Today, a Settling Bank that
Exchange, Inc. (the ‘‘Exchange’’ or COMMISSION
‘‘BATS’’) filed with the Securities and settles for other Participants must
Exchange Commission (‘‘Commission’’), [Release No. 34–76887; File No. SR–DTC– acknowledge its end-of-day net-net
pursuant to section 19(b)(1) of the
2015–011] settlement balance for the group of
Securities Exchange Act of 1934 Participants for which it settles, or
Self-Regulatory Organizations; The notify DTC if it refuses to settle for any
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a Depository Trust Company; Order Participant for which it is the
proposed rule change to adopt Exchange Approving Proposed Rule Change designated Settling Bank, by the later of
Rule 11.27 to implement the data Regarding the Acknowledgment of 4:15 p.m. and the time that is 30
collection requirements set forth in the End-of-Day Net-Net Settlement minutes after the Settling Bank end-of-
Regulation NMS Plan to Implement a Balances by Settling Banks day net-net settlement balances are first
Tick Size Pilot Program.3 The proposed
made available by DTC
rule change was published for comment January 13, 2016.
(‘‘Acknowledgment Cutoff Time’’).10
in the Federal Register on December 1, On November 16, 2015, The If a Settling Bank notifies DTC that it
2015.4 The Commission has received Depository Trust Company (‘‘DTC’’) refuses to settle for a Participant, DTC
one comment letter on the proposal.5 filed with the Securities and Exchange would recalculate the Settling Bank’s
Section 19(b)(2) of the Act 6 provides Commission (‘‘Commission’’) proposed net-net settlement balance by excluding
that, within 45 days of the publication rule change SR–DTC–2015–011 the net settlement balance of the
of the notice of the filing of a proposed pursuant to Section 19(b)(1) of the Participant for which the Settling Bank
rule change, or within such longer Securities Exchange Act of 1934 refused to settle.11 DTC would then
period up to 90 days as the Commission (‘‘Act’’),1 and Rule 19b–4 thereunder,2 provide the Settling Bank with its
may designate if it finds such longer to amend DTC’s Settlement Service adjusted net-net settlement balance
period to be appropriate and publishes Guide (‘‘Guide’’) 3 in order to establish (‘‘Post-Refusal Adjusted Balance’’). The
its reasons for so finding or as to which a new practice whereby any Settling Settling Bank may not refuse to settle for
the self-regulatory organization Bank 4 that (i) fails to affirmatively any other Participant on that day and
consents, the Commission shall either acknowledge its end-of-day net-net must immediately respond to DTC to
approve the proposed rule change, settlement balance,5 or (ii) does not
disapprove the proposed rule change, or 6 See Securities Exchange Act Release No. 76510

institute proceedings to determine 7 Id.
(November 23, 2015), 80 FR 74819 (November 30,
8 17 CFR 200.30–3(a)(31). 2015) (SR–DTC–2015–011).
whether the proposed rule change
1 15 U.S.C. 78s(b)(1). 7 Terms not otherwise defined herein have the
2 17 CFR 240.19b–4. meaning set forth in the DTC Rules (the ‘‘Rules’’),
6 17 CFR 200.30–3(a)(31). 3 Available at http://www.dtcc.com/∼/media/ available at http://www.dtcc.com/legal/rules-and-
1 15 U.S.C. 78s(b)(1). Files/Downloads/legal/service-guides/ procedures.aspx.
2 17 CFR 240.19b–4. 8 See the Guide, supra note 3, pp. 17–18.
Settlement.pdf for an overview of the end-of-day net
3 See Securities Exchange Act Release No. 74892
settlement process. 9 See Rule 9(B), supra note 7.
(May 6, 2015), 80 FR 27513 (May 13, 2015) (order 4 A ‘‘Settling Bank’’ is a DTC participant 10 Currently, a Settling Bank that settles only for
tkelley on DSK4VPTVN1PROD with NOTICES

approving the Tick Size Pilot) (‘‘Approval Order’’). (‘‘Participant’’) that is a bank and that settles for itself may opt out of the requirement to
4 See Securities Exchange Act Release No. 76524
itself and may settle for other Participants, acknowledge its balance, but it cannot refuse to
(November 25, 2015), 80 FR 75141. including other bank Participants. settle for itself.
5 See Letter from Mary Lou Von Kaenel, Managing 5 The end-of-day net-net figure is the net of all 11 Any Participant for which its designated
Director, Financial Information Forum, to Robert W. Participants’ net balances after cross-endorsement Settling Bank has refused to settle on its behalf
Errett, Deputy Secretary, Commission, dated with the National Securities Clearing Corporation remains obligated to DTC for the payment of any
December 22, 2015. for which a Settling Bank settles, including its own net debit balance and must make another
6 15 U.S.C. 78s(b)(2). accounts. arrangement to timely pay that amount by Fedwire.

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Document Created: 2016-01-19 23:43:37
Document Modified: 2016-01-19 23:43:37

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 3218