81 FR 37656 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Business Continuity Plan Requirements for Participants
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 112 (June 10, 2016)
Federal Register Volume 81, Issue 112 (June 10, 2016)
| Page Range | 37656-37659 | |
| FR Document | 2016-13715 |
[Federal Register Volume 81, Number 112 (Friday, June 10, 2016)] [Notices] [Pages 37656-37659] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-13715] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77995; File No. SR-CHX-2016-07] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Business Continuity Plan Requirements for Participants June 6, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given that on May 24, 2016, the Chicago Stock Exchange, Inc. (``CHX'' or the ``Exchange'') filed with the Securities and Exchange Commission (``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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change CHX proposes to amend the Rules of the Exchange (``CHX Rules'') to adopt Article 7, Rule 14, which corresponds to a similar rule of the Financial Industry Regulatory Authority, Inc. (``FINRA'') regarding Business Continuity Plans (``BCPs''). [[Page 37657]] CHX has designated this proposed rule change as non-controversial pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(6) \4\ thereunder and has provided the Commission with the notice required by Rule 19b-4(f)(6)(iii).\5\ --------------------------------------------------------------------------- \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6). \5\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The text of this proposed rule change is available on the Exchange's Web site at (www.chx.com) and in 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 CHX included statements concerning the purpose of and basis for the proposed rule changes 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 CHX 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 Changes 1. Purpose The Exchange proposes to adopt Article 7, Rule 14 to require Participants to maintain BCPs. The Exchange recognizes that BCPs serve a critical function in facilitating the operation of orderly markets in the event of a disruptive emergency. Given that the Exchange does not currently require Participants to maintain BCPs or emergency contact information, the Exchange now proposes to adopt such standards and believes that adopting BCP requirements that are similar to FINRA Rule 4370 and the BCP rules of other national securities exchanges \6\ would better ensure that Participant BCPs meet minimum standards that are, when triggered, executed in a consistent and predictable manner, which furthers the purposes of Section 6(b)(5) of the Act by removing impediments to and perfecting the mechanism of a free and open market and a national market system, and, in general, protects investors and the public interest.\7\ Moreover, the Exchange believes that greater harmonization between CHX Rules and FINRA Rules will result in less burdensome and more efficient regulatory compliance for Participants that are also members of FINRA (``Dual Members''). To this end, the Exchange proposes to adopt Article 7, Rule 14, which is similar to FINRA Rule 4370, except that proposed Article 7, Rule 14 differs from FINRA Rule 4370 in the following ways: --------------------------------------------------------------------------- \6\ See e.g., NYSE MKT Equities Rule 4370. \7\ 15 U.S.C. 78f(b)(5). ---------------------------------------------------------------------------Addresses the unique membership, organizational and rules structures of the Exchange; Clarifies throughout proposed Article 7, Rule 14 that Participant BCPs must address a Participant's existing obligations to other interested parties, in addition to its existing obligations to its Customers,\8\ and defines ``interested parties,'' as discussed below; --------------------------------------------------------------------------- \8\ Incidentally, the Exchange proposes to amend CHX Article 1, Rule 1(hh) defining ``Customer'' to correspond to FINRA Rule 160(b)(4), so as to provide, `` `Customer' shall not include a broker or dealer registered with the Commission.'' Currently, CHX Article 1, Rule 1(hh) provides that `` `Customer' means any person or entity other than a broker or dealer registered with the Commission.'' The Exchange proposes to harmonize its definition of Customer with that of FINRA to clarify the scope of the term. --------------------------------------------------------------------------- Expands alternate communication requirements to include Associated Persons \9\ of the Participant, in addition to employees, and other interested parties, in addition to Customers; and --------------------------------------------------------------------------- \9\ See CHX Article 1, Rule 1(d) defining ``Associated Person.'' --------------------------------------------------------------------------- Expands alternate physical location requirements to include Associated Persons of the Participant, in addition to employees. Specifically, proposed paragraph (a) provides as follows: Each Participant must create and maintain a written business continuity plan (``BCP'') identifying procedures relating to an emergency or significant business disruption. Such procedures must be reasonably designed to enable the Participant to meet its existing obligations to Customers and other interested parties. The BCP must be made available promptly upon request to the Exchange staff. Unlike FINRA Rule 4370(a), which includes additional language that BCPs must address ``existing relationships with other broker-dealers and counter-parties,'' the Exchange proposes to clarify that requirement by omitting such language from proposed Article 7 Rule 14(a) and, rather, provide that BCPs must be reasonably designed to enable the Participant to meet it existing obligations to Customers and other interested parties. Moreover, the Exchange proposes to define ``other interested parties'' to be inclusive of other broker-dealers and counter-parties, under proposed paragraph (g)(3), which provides as follows: ``Interested parties'' means any person or entity to which Participant owes a fiduciary and/or legal responsibility, including, but not limited to, Customers, other brokers or dealers, vendors and banks. To further clarify the requirement, the Exchange proposes to add the term ``other interested parties'' after all subsequent references to ``Customers'' under proposed paragraphs (c)(4), (c)(10) and (e). Proposed paragraph (b) provides as follows: Each Participant must update its BCP in the event of any material change to the Participant's operations, structure, business or location. Each Participant must also conduct an annual review of its BCP to determine whether any modifications are necessary in light of changes to the Participant's operations, structure, business or location. Proposed paragraph (c) provides as follows: The elements that comprise a BCP are flexible and may be tailored to the size and needs of a Participant. Each plan, however, must at a minimum, address: (1) Data back-up and recovery (hard copy and electronic); (2) All mission critical systems; (3) Financial and operational assessments; (4) Alternate communications between Customers and the Participant and between other interested parties and the Participant; (5) Alternate communications between the Participant and its employees and between the Participant and its Associated Persons; (6) Alternate physical location of employees and the Participant's Associated Persons; (7) Critical business constituent, bank, and counter-party impact; (8) Regulatory reporting; (9) Communications with all regulators; and (10) How the Participant will assure Customers and other interested parties have prompt access to their funds and securities in the event that the Participant determines that it is unable to continue its business. Each Participant must address the above-listed categories to the extent applicable and necessary. If any of the above-listed categories is not applicable, the Participant's BCP need not address the category. The Participant's BCP, however, must document the rationale for not including such category in its plan. If a Participant relies on another entity for any one of the above-listed categories or any mission critical system, the Participant's BCP must address this relationship. [[Page 37658]] Notably, the Exchange proposes to expand the alternate communications and physical location requirements to include Associated Persons under proposed paragraphs (c)(5) and (c)(6). Proposed paragraph (d) provides as follows: Each Participant must designate a member of senior management to approve the plan and he or she shall be responsible for conducting the required annual review. The member of senior management must also be a registered principal. Proposed paragraph (e) provides as follows: Each Participant must disclose to its Customers and other interested parties how its BCP addresses the possibility of a future significant business disruption and how the Participant plans to respond to events of varying scope. At a minimum, such disclosure must be made in writing to Customers and other interested parties at account opening, posted on the Participant's Web site (if the Participant maintains a Web site), and mailed to Customers or other interested parties upon request. Proposed paragraph (f)(1) provides as follows: Each Participant shall report to the Exchange, via such electronic or other means as the Exchange may specify, prescribed emergency contact information for the Participant. The emergency contact information for the Participant includes designation of two Associated Persons as emergency contact persons. At least one emergency contact person shall be a member of senior management and a registered principal of the Participant. If a Participant designates a second emergency contact person who is not a registered principal, such person shall be a member of senior management who has knowledge of the Participant's business operations. A Participant with only one Associated Person shall designate as a second emergency contact person an individual, either registered with another firm or nonregistered, who has knowledge of the Participant's business operations (e.g., the Participant's attorney, accountant, or clearing firm contact). Proposed paragraph (f)(2) provides as follows: Each Participant must promptly update its emergency contact information, via such electronic or other means as the Exchange may specify, in the event of any material change, but in any event not later than 30 days following any change in such information. In addition, each Participant shall review and, if necessary, update its required contact information within 17 business days after the end of each calendar year. Proposed paragraph (f)(2) is similar to FINRA Rule 4370(f)(2), except that proposed paragraph (f)(2) includes the explicit timing requirements of FINRA Rule 4517(c)(1). Since CHX Rules do not include a rule or provision similar to FINRA Rule 4517, the Exchange believes it is appropriate to incorporate such timing requirements into proposed paragraph (f)(2). Proposed paragraph (g) provides as follows: For purposes of this Rule, the following terms shall have the meanings specified below: (1) ``Mission critical system'' means any system that is necessary, depending on the nature of a Participant's business, to ensure prompt and accurate processing of securities transactions, including, but not limited to, order taking, order entry, execution, comparison, allocation, clearance and settlement of securities transactions, the maintenance of Customer or other interested party accounts, access to Customer or other interested party accounts and the delivery of funds and securities. (2) ``Financial and operational assessment'' means a set of written procedures that allow a Participant to identify changes in its operational, financial, and credit risk exposures. (3) ``Interested parties'' means any person or entity to which Participant owes a fiduciary and/or legal responsibility, including, but not limited to, Customers, other brokers or dealers, counter- parties, vendors and banks. Operative Date The Exchange proposes to make the proposed rule change operative pursuant to two weeks' notice by the Exchange to its Participants via Information Memorandum, but not on a date prior to the expiration of the thirty (30) days pre-operative waiting period contained in Rule 19b-4(f)(6)(iii) under the Act.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act \11\ in general, and furthers the objectives of Sections 6(b)(5) of the Act \12\ in particular, in that they are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f. \12\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Specifically, the Exchange believes that adopting standardized BCP requirements that are similar to FINRA Rule 4370 and the BCP rules of other national securities exchanges \13\ would better ensure that Participant BCPs meet minimum standards that are, when triggered, executed in a consistent and predictable manner, which furthers the purposes of Section 6(b)(5) of the Act by removing impediments to and perfecting the mechanism of a free and open market and a national market system, and, in general, protects investors and the public interest.\14\ --------------------------------------------------------------------------- \13\ See supra note 6. \14\ See supra note 12. --------------------------------------------------------------------------- The Exchange also believes that the proposed rule change supports the objectives of the Act by providing greater harmonization between CHX Rules and FINRA Rules, which would result in less burdensome and more efficient regulatory compliance for Dual Members. To the extent that proposed Article 7, Rule 14 differs from FINRA Rules 4370 and 4517(c)(1), such differences are non-substantive in nature, merely clarify the scope of the rule, expands certain alternative communication and location requirements to apply to Associated Persons of a Participant or, in the case of the proposed term ``interested parties,'' better defines the type of contra-parties that must be contemplated in the BCP. B. Self-Regulatory Organization's Statement of Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the proposed rule change will harmonize CHX Rules with FINRA Rules regarding BCPs and, thus, has no impact on competition. C. Self-Regulatory Organization's Statement on Comments Regarding the Proposed Rule Changes Received From Members, Participants or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Changes and Timing for Commission Action The Exchange believes that the proposal qualifies for immediate effectiveness upon filing as non- [[Page 37659]] controversial under Section 19(b)(3)(A) of the Act \15\ and paragraph (f)(6) of Rule 19b-4 thereunder.\16\ --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- The Exchange asserts that the proposed rule change: (1) Will not significantly affect the protection of investors or the public interest, (2) will not impose any significant burden on competition, and (3) and will not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate. In addition, the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing, or such shorter time as designated by the Commission.\17\ While the Exchange does not currently have a rule that requires Participants maintain BCPs, the Exchange believes that the proposed rule change raises no novel issues, as it is substantively consistent with FINRA Rules 4370 and 4517(c)(1). Moreover, although proposed Article 7, Rule 14 differs from FINRA Rule 4370 in that the proposed rule expands alternative communication and location requirements to Associated Persons of Participants and explicitly requires BCPs contemplate a broader range of contra-parties (i.e., interested parties), the Exchange believes that such differences are non-controversial as they merely expand FINRA Rule 4370 requirements to additional parties that rely on the orderly operation of the Participant in the event of an emergency. The Exchange also notes that the proposed rule change would apply to all Participants and not only Dual Members. As such, the Exchange has designated this rule filing as non-controversial under Section 19(b)(3)(A) of the Act \18\ and paragraph (f)(6) of Rule 19b-4 thereunder.\19\ --------------------------------------------------------------------------- \17\ 17 CFR 240.19b-4(f)(6)(iii). \18\ 15 U.S.C. 78s(b)(3)(A). \19\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) of the Act 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 [email protected]. Please include File Number SR-CHX-2016-07 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-CHX-2016-07. 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 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 will also be available for inspection and copying at the principal office 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-CHX-2016-07 and should be submitted on or before July 1, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-13715 Filed 6-9-16; 8:45 am] BILLING CODE 8011-01-P
![37656 Federal Register / Vol. 81, No. 112 / Friday, June 10, 2016 / Notices
by each outstanding Share of that class. structure does not raise the concerns 17d–3 as if those rules applied to
Applicants state that the Fund will underlying section 18 of the Act to any closed-end investment companies.
comply with the provisions of rule 18f– greater degree than open-end
Applicants’ Condition
3 under the Act as if it were an open- investment companies’ multiple class
end investment company. structures that are permitted by rule The applicants agree that any order
9. In the event the Fund imposes a 18f–3 under the Act. Applicants state granting the requested relief will be
CDSC, the applicants will comply with that the Fund will comply with the subject to the following condition:
the provisions of rule 6c-10 under the provisions of rule 18f–3 as if it were an Applicants will comply with the
Act, as if that rule applied to closed-end open-end investment company. provisions of rules 6c–10, 12b–1, 17d–
management investment companies. 3, 18f–3 and 22d–1 under the Act, as
CDSCs amended from time to time or replaced,
With respect to any waiver of,
scheduled variation in, or elimination of Applicants believe that the requested as if those rules applied to closed-end
the CDSC, the Fund will comply with relief meets the standards of section 6(c) management investment companies,
rule 22d–1 under the Act as if the Fund of the Act. Rule 6c–10 under the Act and will comply with NASD Conduct
were an open-end investment company. permits open-end investment Rule 2830, as amended from time to
companies to impose CDSCs, subject to time, as if that rule applied to all closed-
Applicants’ Legal Analysis end management investment
certain conditions. Applicants state that
Multiple Classes of Shares any CDSC imposed by the Fund will companies.
1. Section 18(c) of the Act provides, comply with rule 6c–10 under the Act For the Commission, by the Division of
as if the rule were applicable to closed- Investment Management, under delegated
in relevant part, that a closed-end authority.
investment company may not issue or end investment companies. The Fund
also will disclose CDSCs in accordance Robert W. Errett,
sell any senior security if, immediately
with the requirements of Form N–1A Deputy Secretary.
thereafter, the company has outstanding
more than one class of senior security. concerning CDSCs as if the Fund were [FR Doc. 2016–13717 Filed 6–9–16; 8:45 am]
Applicants state that the creation of an open-end investment company. BILLING CODE P
multiple classes of Shares of the Fund Applicants further state that the Fund
may be prohibited by section 18(c). will apply the CDSC (and any waivers,
2. Section 18(i) of the Act provides scheduled variations or eliminations of SECURITIES AND EXCHANGE
that each share of stock issued by a the CDSC) uniformly to all shareholders COMMISSION
registered management investment in a given class and consistently with [Release No. 34–77995; File No. SR–CHX–
company will be a voting stock and the requirements of rule 22d–1 under 2016–07]
have equal voting rights with every the Act.
other outstanding voting stock. Self-Regulatory Organizations;
Asset-Based Service and/or Distribution Chicago Stock Exchange, Inc.; Notice
Applicants state that permitting Fees
multiple classes of Shares of the Fund of Filing and Immediate Effectiveness
may violate section 18(i) of the Act 1. Section 17(d) of the Act and rule of Proposed Rule Change To Adopt
because each class would be entitled to 17d–1 under the Act prohibit an Business Continuity Plan
exclusive voting rights with respect to affiliated person of a registered Requirements for Participants
matters solely related to that class. investment company or an affiliated
June 6, 2016.
3. Section 6(c) of the Act provides that person of such person, acting as
Pursuant to Section 19(b)(1) of the
the Commission may exempt any principal, from participating in or
Securities Exchange Act of 1934
person, security or transaction or any effecting any transaction in connection
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
class or classes of persons, securities or with any joint enterprise or joint
notice is hereby given that on May 24,
transactions from any provision of the arrangement in which the investment
2016, the Chicago Stock Exchange, Inc.
Act, or from any rule under the Act, if company participates unless the
(‘‘CHX’’ or the ‘‘Exchange’’) filed with
and to the extent such exemption is Commission issues an order permitting
the Securities and Exchange
necessary or appropriate in the public the transaction. In reviewing
Commission (‘‘Commission’’) the
interest and consistent with the applications submitted under section
proposed rule change as described in
protection of investors and the purposes 17(d) and rule 17d–1, the Commission
Items I, II and III below, which Items
fairly intended by the policy and considers whether the participation of
have been prepared by the Exchange.
provisions of the Act. Applicants the investment company in a joint
The Commission is publishing this
request an exemption under section 6(c) enterprise or joint arrangement is
notice to solicit comments on the
from sections 18(c) and 18(i) to permit consistent with the provisions, policies
proposed rule change from interested
the Fund to issue multiple classes of and purposes of the Act, and the extent
persons.
Shares. to which the participation is on a basis
4. Applicants submit that the different from or less advantageous than I. Self-Regulatory Organization’s
proposed allocation of expenses and that of other participants. Statement of the Terms of Substance of
voting rights among multiple classes is 2. Rule 17d–3 under the Act provides the Proposed Rule Change
equitable and will not discriminate an exemption from section 17(d) and CHX proposes to amend the Rules of
against any group or class of rule 17d–1 to permit open-end
asabaliauskas on DSK3SPTVN1PROD with NOTICES
the Exchange (‘‘CHX Rules’’) to adopt
shareholders. Applicants submit that investment companies to enter into Article 7, Rule 14, which corresponds to
the proposed arrangements would distribution arrangements pursuant to a similar rule of the Financial Industry
permit the Fund to facilitate the rule 12b–1 under the Act. Applicants Regulatory Authority, Inc. (‘‘FINRA’’)
distribution of its Shares and provide request an order under section 17(d) and regarding Business Continuity Plans
investors with a broader choice of rule 17d–1 under the Act to permit the (‘‘BCPs’’).
shareholder options. Applicants assert Fund to impose asset-based service and/
that the proposed closed-end or distribution fees. Applicants have 1 15 U.S.C. 78s(b)(1).
investment company multiple class agreed to comply with rules 12b–1 and 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 81, No. 112 / Friday, June 10, 2016 / Notices 37659
controversial under Section 19(b)(3)(A) IV. Solicitation of Comments For the Commission, by the Division of
of the Act 15 and paragraph (f)(6) of Rule Trading and Markets, pursuant to delegated
19b–4 thereunder.16 Interested persons are invited to authority.20
The Exchange asserts that the submit written data, views, and Robert W. Errett,
proposed rule change: (1) Will not arguments concerning the foregoing, Deputy Secretary.
significantly affect the protection of including whether the proposed rule [FR Doc. 2016–13715 Filed 6–9–16; 8:45 am]
investors or the public interest, (2) will change is consistent with the Act. BILLING CODE 8011–01–P
not impose any significant burden on Comments may be submitted by any of
competition, and (3) and will not the following methods:
become operative for 30 days from the SECURITIES AND EXCHANGE
date on which it was filed, or such Electronic Comments COMMISSION
shorter time as the Commission may • Use the Commission’s Internet [Release No. 34–77996; File No. SR–NYSE–
designate. In addition, the Exchange 2016–22]
comment form (http://www.sec.gov/
provided the Commission with written
notice of its intent to file the proposed rules/sro.shtml); or
Self-Regulatory Organizations; New
rule change, along with a brief • Send an email to rule-comments@ York Stock Exchange LLC; Notice of
description and text of the proposed sec.gov. Please include File Number SR– Designation of a Longer Period for
rule change, at least five business days CHX–2016–07 on the subject line. Commission Action on a Proposed
prior to the date of filing, or such Rule Change, as Modified by
shorter time as designated by the Paper Comments
Amendment No. 5, To Adopt Initial and
Commission.17 While the Exchange • Send paper comments in triplicate Continued Listing Standards for the
does not currently have a rule that to Secretary, Securities and Exchange Listing of Equity Investment Tracking
requires Participants maintain BCPs, the Commission, 100 F Street NE., Stocks and Adopt Listing Fees
Exchange believes that the proposed Washington, DC 20549–1090. Specific to Equity Investment Tracking
rule change raises no novel issues, as it Stocks
is substantively consistent with FINRA All submissions should refer to File
Rules 4370 and 4517(c)(1). Moreover, Number SR–CHX–2016–07. This file June 6, 2016.
although proposed Article 7, Rule 14 number should be included on the On April 7, 2016, the New York Stock
differs from FINRA Rule 4370 in that subject line if email is used. To help the Exchange LLC (‘‘NYSE’’ or the
the proposed rule expands alternative ‘‘Exchange’’) filed with the Securities
Commission process and review your
communication and location and Exchange Commission
comments more efficiently, please use
requirements to Associated Persons of (‘‘Commission’’), pursuant to Section
only one method. The Commission will 19(b)(1) of the Securities Exchange Act
Participants and explicitly requires post all comments on the Commission’s
BCPs contemplate a broader range of of 1934 (‘‘Act’’) 1 and Rule 19b–4
Internet Web site (http://www.sec.gov/ thereunder,2 a proposed rule change to
contra-parties (i.e., interested parties), rules/sro.shtml). Copies of the
the Exchange believes that such adopt initial and continued listing
submission, all subsequent standards for the listing of Equity
differences are non-controversial as they amendments, all written statements
merely expand FINRA Rule 4370 Investment Tracking Stocks and to
with respect to the proposed rule adopt fees for Equity Investment
requirements to additional parties that
change that are filed with the Tracking Stocks. The proposed rule
rely on the orderly operation of the
Commission, and all written change was published for comment in
Participant in the event of an
communications relating to the the Federal Register on April 27, 2016.3
emergency. The Exchange also notes
proposed rule change between the On April 20, 2016, the Exchange filed
that the proposed rule change would
Commission and any person, other than Amendment No. 1 to the proposed rule
apply to all Participants and not only
those that may be withheld from the change, which superseded the original
Dual Members. As such, the Exchange
public in accordance with the filing in its entirety.4 On May 17, 2016,
has designated this rule filing as non-
provisions of 5 U.S.C. 552, will be the Exchange filed Amendment No. 5 to
controversial under Section 19(b)(3)(A)
available for Web site viewing and the proposal, which superseded the
of the Act 18 and paragraph (f)(6) of Rule
printing in the Commission’s Public filing, as amended by Amendment No.
19b–4 thereunder.19
Reference Room, 100 F Street NE., 1. Amendment No. 5 was published for
At any time within 60 days of the
comment in the Federal Register on
filing of the proposed rule change, the Washington, DC 20549, on official
May 23, 2016.5 No comments have been
Commission summarily may business days between the hours of
received on the proposed rule change in
temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of such response to both the original publication
it appears to the Commission that such filing will also be available for
action is necessary or appropriate in the inspection and copying at the principal 20 17 CFR 200.30–3(a)(12).
public interest, for the protection of office of the Exchange. All comments 1 15 U.S.C.78s(b)(1).
investors, or otherwise in furtherance of received will be posted without change; 2 17 CFR 240.19b–4.
the purposes of the Act. If the the Commission does not edit personal 3 See Securities Exchange Act Release No. 77674
Commission takes such action, the identifying information from
(April 21, 2016), 81 FR 24919 (April 27, 2016).
4 On May 13, 2016, the Exchange submitted and
Commission shall institute proceedings submissions. You should submit only
asabaliauskas on DSK3SPTVN1PROD with NOTICES
withdrew Amendment No. 2 to the proposed rule
under Section 19(b)(2)(B) of the Act to information that you wish to make change. On May 13, 2016, the Exchange filed
determine whether the proposed rule available publicly. All submissions Amendment No. 3 to the proposed rule change, and
should be approved or disapproved. on May 16, 2016 the Exchange withdrew
should refer to File Number SR–CHX– Amendment No. 3 to the proposed rule change. On
15 15 U.S.C. 78s(b)(3)(A).
2016–07 and should be submitted on or May 16, 2016 the Exchange submitted Amendment
before July 1, 2016. No. 4 to the proposal, and on May 17, 2016, the
16 17 CFR 240.19b–4. Exchange withdrew Amendment No. 4 to the
17 17 CFR 240.19b–4(f)(6)(iii).
proposed rule change.
18 15 U.S.C. 78s(b)(3)(A). 5 See Securities Exchange Act Release No. 77850
19 17 CFR 240.19b–4. (May 17, 2016), 81 FR 32360 (May 23, 2016).
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Document Created: 2018-02-08 07:36:13
Document Modified: 2018-02-08 07:36:13
| 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 37656 |
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