81 FR 39301 - Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.7, Opening Process
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 116 (June 16, 2016)
Federal Register Volume 81, Issue 116 (June 16, 2016)
| Page Range | 39301-39303 | |
| FR Document | 2016-14209 |
[Federal Register Volume 81, Number 116 (Thursday, June 16, 2016)] [Notices] [Pages 39301-39303] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14209] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78038; File No. SR-BatsEDGA-2016-13] Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.7, Opening Process June 10, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on June 9, 2016, Bats EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with the Commission. 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. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to amend Rule 11.7, Opening Process, to await a two-sided quotation from the listing exchange prior to re- opening a security for trading following a halt, suspension, or pause in trading. The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at 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 Exchange included statements concerning the purpose of and basis for the proposed rule change 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 Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 11.7, Opening Process, to await a two-sided quotation from the listing exchange prior to re-opening a security for trading following a halt, suspension, or pause in trading. Exchange Rule 11.7 describes the Exchange's current Opening and Re- Opening Process. Subparagraph (e) to Rule 11.7 states that while a security is subject to a halt, suspension, or pause in trading, the Exchange will accept orders for queuing prior to the resumption of trading in the security for participation in the Re-Opening Process. Subparagraph (a) to Rule 11.7 states that, prior to the beginning of the Regular Trading Hours, Users \5\ who wish to participate in the Opening Process may enter orders to buy or sell.\6\ Subparagraph (a)(2) to Rule 11.7 provides that, with certain exceptions,\7\ all orders with a time-in-force instruction of Regular Hours Only may participate in the Opening Process. Subparagraph (e)(1) to Rule 11.7 states that the Re-Opening Process will occur in the same manner described in Rule 11.7(a)(2) and (b) described above,\8\ also with certain exceptions.\9\ --------------------------------------------------------------------------- \5\ See Exchange Rule 1.5(ee). \6\ Orders cancelled prior to the Opening Process will not participate in the Opening Process. \7\ The following order types and instruction may not participate in the opening process: Limit Orders with a Post Only instruction, the Discretionary Range of Limit Orders, ISOs not modified by Rule 11.7(a)(1), and orders with a Minimum Execution Quantity instruction. See Exchange Rule 11.7(a)(2). Limit Orders with a Reserve Quantity may participate to the full extent of their displayed size and Reserve Quantity. Id. Limit Orders with a Discretionary Range may participate up to their ranked limit price for buy orders or down to their ranked limit price for sell orders. Id. All Limit Orders with a Pegged instruction, as defined in Exchange Rule 11.6(i), will be eligible for execution in the Opening Process based on their pegged prices. Id. \8\ Subparagraph (b) to Rule 11.7 states that the Exchange will open by performing the Opening Process in which the System will attempt to match buy and sell orders that are executable at the midpoint of the National Best Bid and Offer (``NBBO''). Furthermore, subparagraph (b) of Rule 11.7 also states that all orders executable at the midpoint of the NBBO will continue to be processed in time sequence, beginning with the order with the oldest time stamp. Matches occur until there are no remaining contra-side orders or there is an imbalance of orders. An imbalance of orders may result in orders that cannot be executed in whole or in part. Any unexecuted orders may then be placed by the System on the EDGA Book, cancelled, executed, or routed to away Trading Centers in accordance with the Users' instructions pursuant to Exchange Rule 11.11. \9\ Orders without a time-in-force (``TIF'') instruction of Regular Hours Only are eligible to participate in the Re-Opening Process, but orders that include a TIF instruction of IOC or FOK, a Post Only instruction or Minimum Execution Quantity instruction will be cancelled or rejected, as applicable, and any ISO that does not include a TIF instruction of IOC or FOK will be converted into a non-ISO and be queued for participation in the Re-Opening Process. See Exchange Rule 11.7(e)(1). --------------------------------------------------------------------------- Subparagraph (e)(1) to Exchange Rule 11.7 also sets forth the process by which the System sets the price of the Re-Opening Process. Currently, the System \10\ sets the price of the Re-Opening Process at the midpoint of the: (i) First NBBO subsequent to the first reported trade on the listing exchange following the resumption of trading after a halt, suspension, or pause; or (ii) NBBO when the first two-sided quotation is published by the listing exchange following the resumption of trading after a halt, suspension, or pause if no first trade is reported by the listing exchange within one second of publication of the first two-sided quotation by the listing exchange. --------------------------------------------------------------------------- \10\ See Exchange Rule 1.5(cc). --------------------------------------------------------------------------- The Exchange proposes to amend subparagraph (e)(1) to Rule 11.7 to now await a two-sided quotation from the listing exchange prior to opening a [[Page 39302]] security for trading. As amended, subparagraph (e)(1) to Rule 11.7 would state that the System would set the price of the Re-Opening Process at the midpoint of the first NBBO subsequent to the first reported trade and first two-sided quotation on the listing exchange following the resumption of trading after a halt, suspension, or pause. The Exchange will utilize the current NBBO to calculate the security's re-opening price once a trade and two-sided quotation are received from the listing exchange, regardless of the order in which the trade or quotation are received. The Exchange believes the proposed rule change will enable the listing market's quotation to be incorporated into the NBBO, which the Exchange would, in turn, utilize in its calculation of the midpoint of the NBBO. The Exchange believes doing so would result in a re-opening price that more closely reflects the market prices and conditions for that security. Under subparagraph (e)(1) to Rule 11.7, the Exchange will continue to alternatively set the price of the Re- Opening Process at the midpoint of the NBBO when the first two-sided quotation is published by the listing exchange following the resumption of trading after a halt, suspension, or pause if no first trade is reported by the listing exchange within one second of publication of the first two-sided quotation by the listing exchange. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \11\ in general, and furthers the objectives of Section 6(b)(5) of the Act \12\ in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. The Exchange believes the proposed rule change will promote just and equitable principles of trade, removes impediments to, and perfect the mechanism of, a free and open market and a national market system because it enables the System to execute the Re-Opening Process at a price that is objectively established by the market for the security. The proposal would enable the listing market's quotation to be incorporated into the NBBO, which the Exchange would, in turn, utilize in its calculation of the midpoint of the NBBO. The Exchange believes doing so would result in a re- opening price that more closely reflect the market prices and conditions for that security. Therefore, the Exchange believes the proposed rule change promotes just and equitable principles of trade because it ensures a midpoint price that the Exchange believes would accurately reflect the market for the security. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b). \12\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposal will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change will enable the Exchange to incorporate the listing market's quotation into its calculation of the midpoint of the NBBO, resulting in a re-opening price that would more closely reflect the opening market prices and conditions for that security. Therefore, the Exchange believes the proposed rule change will promote competition by enhancing the quality of the Exchange's opening process. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \15\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange states that waiver of the 30-day operative delay would allow market participants to immediately realize the benefits of what may be more accurate re-opening prices. Based on the foregoing, the Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\17\ --------------------------------------------------------------------------- \15\ 17 CFR 240.19b-4(f)(6). \16\ 17 CFR 240.19b-4(f)(6)(iii). \17\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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 to determine whether the proposed rule change 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-BatsEDGA-2016-13 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 No. SR-BatsEDGA-2016-13. 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/ [[Page 39303]] 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 the filing also will 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 No. SR- BatsEDGA-2016-13, and should be submitted on or before July 7, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-14209 Filed 6-15-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 116 / Thursday, June 16, 2016 / Notices 39301
communications relating to the Commission is publishing this notice to provides that, with certain exceptions,7
proposed rule change between the solicit comments on the proposed rule all orders with a time-in-force
Commission and any person, other than change from interested persons. instruction of Regular Hours Only may
those that may be withheld from the participate in the Opening Process.
I. Self-Regulatory Organization’s
public in accordance with the Subparagraph (e)(1) to Rule 11.7 states
Statement of the Terms of Substance of
provisions of 5 U.S.C. 552, will be that the Re-Opening Process will occur
available for Web site viewing and the Proposed Rule Change in the same manner described in Rule
printing in the Commission’s Public The Exchange is proposing to amend 11.7(a)(2) and (b) described above,8 also
Reference Room, 100 F Street NE., Rule 11.7, Opening Process, to await a with certain exceptions.9
Washington, DC 20549, on official two-sided quotation from the listing Subparagraph (e)(1) to Exchange Rule
business days between the hours of exchange prior to re-opening a security 11.7 also sets forth the process by which
10:00 a.m. and 3:00 p.m. Copies of the for trading following a halt, suspension, the System sets the price of the Re-
filing also will be available for or pause in trading. Opening Process. Currently, the
inspection and copying at the principal System 10 sets the price of the Re-
The text of the proposed rule change
office of NASDAQ. All comments Opening Process at the midpoint of the:
is available at the Exchange’s Web site
received will be posted without change; (i) First NBBO subsequent to the first
at www.batstrading.com, at the
the Commission does not edit personal reported trade on the listing exchange
principal office of the Exchange, and at
identifying information from following the resumption of trading
the Commission’s Public Reference
submissions. You should submit only after a halt, suspension, or pause; or (ii)
Room.
information that you wish to make NBBO when the first two-sided
available publicly. II. Self-Regulatory Organization’s quotation is published by the listing
All submissions should refer to File Statement of the Purpose of, and exchange following the resumption of
Number SR–NASDAQ–2016–052 and Statutory Basis for, the Proposed Rule trading after a halt, suspension, or pause
should be submitted on or before July 7, Change if no first trade is reported by the listing
2016. exchange within one second of
In its filing with the Commission, the publication of the first two-sided
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Exchange included statements quotation by the listing exchange.
authority.16 concerning the purpose of and basis for The Exchange proposes to amend
Robert Errett, the proposed rule change and discussed subparagraph (e)(1) to Rule 11.7 to now
Deputy Secretary.
any comments it received on the await a two-sided quotation from the
proposed rule change. The text of these listing exchange prior to opening a
[FR Doc. 2016–14208 Filed 6–15–16; 8:45 am]
statements may be examined at the
BILLING CODE 8011–01–P
places specified in Item IV below. The 7 The following order types and instruction may
Exchange has prepared summaries, set not participate in the opening process: Limit Orders
forth in Sections A, B, and C below, of with a Post Only instruction, the Discretionary
SECURITIES AND EXCHANGE Range of Limit Orders, ISOs not modified by Rule
COMMISSION the most significant parts of such 11.7(a)(1), and orders with a Minimum Execution
statements. Quantity instruction. See Exchange Rule 11.7(a)(2).
[Release No. 34–78038; File No. SR- Limit Orders with a Reserve Quantity may
BatsEDGA–2016–13] A. Self-Regulatory Organization’s participate to the full extent of their displayed size
Statement of the Purpose of, and the and Reserve Quantity. Id. Limit Orders with a
Self-Regulatory Organizations; Bats Statutory Basis for, the Proposed Rule Discretionary Range may participate up to their
Change ranked limit price for buy orders or down to their
EDGA Exchange, Inc.; Notice of Filing ranked limit price for sell orders. Id. All Limit
and Immediate Effectiveness of a Orders with a Pegged instruction, as defined in
1. Purpose
Proposed Rule Change to Rule 11.7, Exchange Rule 11.6(i), will be eligible for execution
Opening Process The Exchange proposes to amend in the Opening Process based on their pegged
prices. Id.
Rule 11.7, Opening Process, to await a
June 10, 2016. 8 Subparagraph (b) to Rule 11.7 states that the
two-sided quotation from the listing Exchange will open by performing the Opening
Pursuant to Section 19(b)(1) of the
exchange prior to re-opening a security Process in which the System will attempt to match
Securities Exchange Act of 1934 (the buy and sell orders that are executable at the
for trading following a halt, suspension,
‘‘Act’’),1 and Rule 19b–4 thereunder,2 midpoint of the National Best Bid and Offer
or pause in trading.
notice is hereby given that on June 9, (‘‘NBBO’’). Furthermore, subparagraph (b) of Rule
2016, Bats EDGA Exchange, Inc. (the Exchange Rule 11.7 describes the 11.7 also states that all orders executable at the
Exchange’s current Opening and Re- midpoint of the NBBO will continue to be
‘‘Exchange’’ or ‘‘EDGA’’) filed with the processed in time sequence, beginning with the
Securities and Exchange Commission Opening Process. Subparagraph (e) to order with the oldest time stamp. Matches occur
(‘‘Commission’’) the proposed rule Rule 11.7 states that while a security is until there are no remaining contra-side orders or
change as described in Items I and II subject to a halt, suspension, or pause there is an imbalance of orders. An imbalance of
in trading, the Exchange will accept orders may result in orders that cannot be executed
below, which Items have been prepared in whole or in part. Any unexecuted orders may
by the Exchange. The Exchange has orders for queuing prior to the then be placed by the System on the EDGA Book,
designated this proposal as a ‘‘non- resumption of trading in the security for cancelled, executed, or routed to away Trading
controversial’’ proposed rule change participation in the Re-Opening Process. Centers in accordance with the Users’ instructions
Subparagraph (a) to Rule 11.7 states pursuant to Exchange Rule 11.11.
pursuant to Section 19(b)(3)(A) of the 9 Orders without a time-in-force (‘‘TIF’’)
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Act 3 and Rule 19b–4(f)(6)(iii) that, prior to the beginning of the
instruction of Regular Hours Only are eligible to
thereunder,4 which renders it effective Regular Trading Hours, Users 5 who participate in the Re-Opening Process, but orders
upon filing with the Commission. The wish to participate in the Opening that include a TIF instruction of IOC or FOK, a Post
Process may enter orders to buy or sell.6 Only instruction or Minimum Execution Quantity
16 17 Subparagraph (a)(2) to Rule 11.7 instruction will be cancelled or rejected, as
CFR 200.30–3(a)(12). applicable, and any ISO that does not include a TIF
1 15 U.S.C. 78s(b)(1). instruction of IOC or FOK will be converted into a
2 17 CFR 240.19b–4. 5 See Exchange Rule 1.5(ee). non-ISO and be queued for participation in the Re-
3 15 U.S.C. 78s(b)(3)(A). 6 Orders Opening Process. See Exchange Rule 11.7(e)(1).
cancelled prior to the Opening Process
4 17 CFR 240.19b–4(f)(6)(iii). will not participate in the Opening Process. 10 See Exchange Rule 1.5(cc).
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![Federal Register / Vol. 81, No. 116 / Thursday, June 16, 2016 / Notices 39303
rules/sro.shtml). Copies of the proposed rule change from interested the proposed rule change and discussed
submission, all subsequent persons. any comments it received on the
amendments, all written statements proposed rule change. The text of these
I. Clearing Agency’s Statement of the
with respect to the proposed rule statements may be examined at the
Terms of Substance of the Proposed
change that are filed with the places specified in Item IV below. The
Rule Change
Commission, and all written clearing agency has prepared
communications relating to the The proposed rule change consists of summaries, set forth in sections A, B,
proposed rule change between the amendments to the Rules, By-Laws and and C below, of the most significant
Commission and any person, other than Organization Certificate of The aspects of such statements.
those that may be withheld from the Depository Trust Company (the
public in accordance with the ‘‘Rules’’) 4 in order to add new Rule 34 (A) Clearing Agency’s Statement of the
provisions of 5 U.S.C. 552, will be (EB Link) to establish a link (‘‘EB Link’’) Purpose of, and Statutory Basis for, the
available for Web site viewing and between DTC and Euroclear Bank SA/ Proposed Rule Change
printing in the Commission’s Public NV (‘‘EB’’) for DTC Participants that are 1. Purpose
Reference Room, 100 F Street NE., also EB participants (‘‘CP Participants’’)
to use Securities held at DTC for EB The proposal would add new Rule 34
Washington, DC 20549, on official (EB Link) to establish the EB Link
business days between the hours of Collateral Transactions (as defined
below). The proposed Rule 34 specifies between DTC and EB for CP Participants
10:00 a.m. and 3:00 p.m. Copies of the
the Accounts, Free Deliveries, and the to use Securities held at DTC for EB
filing also will be available for
terms and conditions that together Collateral Transactions. The proposed
inspection and copying at the principal
comprise collateral positioning Rule 34 specifies the Accounts, Free
office of the Exchange. All comments
(‘‘Collateral Positioning’’ or ‘‘CP’’) for Deliveries, and the terms and conditions
received will be posted without change;
CP Participants. The proposed rule that together comprise Collateral
the Commission does not edit personal
change would: (i) Allow CP Participants Positioning for CP Participants. The
identifying information from
to designate a sub-account for Collateral proposed rule change would: (i) Allow
submissions. You should submit only
Positioning (a ‘‘CP Sub-Account’’) of CP Participants to designate a CP Sub-
information that you wish to make
available publicly. All submissions Securities selected by the CP Participant Account of CP Securities to Deliver to
should refer to File No. SR-BatsEDGA– (the ‘‘CP Securities’’) to Deliver to EB; EB; and (ii) establish the EB Account on
2016–13, and should be submitted on or and (ii) establish the Securities Account the books of DTC to receive and hold
before July 7, 2016. of EB (the ‘‘EB Account’’) on the books such CP Securities. DTC understands
of DTC to receive and hold such CP that EB would then credit such CP
For the Commission, by the Division of Securities to an account it maintains on
Trading and Markets, pursuant to delegated Securities. DTC understands that EB
would then credit such CP Securities to its books for such CP Participant for use
authority.18
an account it maintains on its books for in EB Collateral Transactions in
Robert W. Errett,
such CP Participant for use in transfers connection with EB CMS, as described
Deputy Secretary. below.
on the books of EB (‘‘EB Collateral
[FR Doc. 2016–14209 Filed 6–15–16; 8:45 am]
Transactions’’) in connection with EB’s (i) Background
BILLING CODE 8011–01–P
collateral management services (‘‘EB
CMS’’), as described below.5 (a) New Regulations Require Better
Access to and Management of Securities
SECURITIES AND EXCHANGE II. Clearing Agency’s Statement of the Collateral
COMMISSION Purpose of, and Statutory Basis for, the
New and enhanced regulatory
[Release No. 34–78031; File No. SR–DTC– Proposed Rule Change
requirements are leading derivative and
2016–004] In its filing with the Commission, the financing counterparties to seek
clearing agency included statements increased efficiency in the availability
Self-Regulatory Organizations; The concerning the purpose of and basis for and deployment of collateral and
Depository Trust Company; Notice of
streamlined margin processing. More
Filing of Proposed Rule Change To 4 Each capitalized term not otherwise defined
specifically, the phase-in period of the
Establish a Link With Euroclear herein has its respective meaning as set forth in the
Rules, available at http://www.dtcc.com/legal/rules-
Basel III liquidity rules,6 as well as
June 10, 2016. and-procedures.aspx. Pursuant to a telephone call recent regulatory changes by the
Pursuant to Section 19(b)(1) of the with DTC’s internal counsel on June 9, 2016, staff Commodity Futures Trading
Securities Exchange Act of 1934 in the Commission’s Office of Clearance and Commission,7 the U.S. prudential
Settlement added this footnote. DTC inadvertently
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 omitted the footnote.
regulators,8 European Market
notice is hereby given that on June 3, 5 On May 9, 2016, EB filed an application with
6 Basel Committee on Banking Supervision, Basel
2016, The Depository Trust Company the U.S. Securities and Exchange Commission
(‘‘Commission’’) on Form CA–1, seeking to amend III: A global framework for more resilient banks and
(‘‘DTC’’) filed with the Securities and the banking system, December 2010 and revised
its existing exemption from clearing agency
Exchange Commission (‘‘Commission’’) registration by expanding its existing exemption to June 2011; Basel Committee on Banking
the proposed rule change as described authorize EB to offer EB CMS to its U.S. Supervision, Basel III: The Liquidity Coverage Ratio
in Items I, II and III below, which Items participants for U.S. equities (the ‘‘EB CA–1 and liquidity risk monitoring tools, January 2013;
Amendment’’). DTC understands that the EB CA– Basel Committee on Banking Supervision, Basel III:
have been prepared by DTC. DTC filed the net stable funding ratio, October 2014, available
asabaliauskas on DSK3SPTVN1PROD with NOTICES
1 Amendment is necessary for EB to offer EB CMS,
the proposed rule change pursuant to and consequently, the DTCC Euroclear Global at www.bis.org/bcbs/basel3.htm.
Section 19(b)(2) of the Act thereunder.3 Collateral Ltd. (‘‘DEGCL’’) Inventory Management 7 Margin Requirements for Uncleared Swaps for
The Commission is publishing this Service (‘‘DEGCL IMS’’), to U.S. participants for Swap Dealers and Major Swap Participants, 81 FR
notice to solicit comments on the U.S. equities. Commission approval of this 635 (January 6, 2016); 17 CFR parts 23 and 140.
proposed rule change to add new Rule 34 (EB Link) 8 Margin and Capital Requirements for Covered
18 17
would have no effect on the authority of EB Swap Entities, 80 FR 74840 (November 30, 2015);
CFR 200.30–3(a)(12). pursuant to the EB CA–1 Amendment. In addition, 12 CFR parts 45, 237, 349, 624 and 1221. The U.S.
1 15 U.S.C. 78s(b)(1). this proposed rule change provides that it would prudential regulators include: Office of the
2 17 CFR 240.19b–4.
not be implemented until the EB CA–1 Amendment Comptroller of the Currency—Treasury, Board of
3 15 U.S.C. 78s(b)(2). is approved by the Commission. Continued
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Document Created: 2016-06-16 00:37:18
Document Modified: 2016-06-16 00:37:18
| Category | Regulatory Information | |
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| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 81 FR 39301 |
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