81 FR 45336 - Corrected Order Extending a Temporary Exemption From Compliance With Rules 13n-1 to 13n-12 Under the Securities Exchange Act of 1934

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 134 (July 13, 2016)

Page Range		45336-45337
FR Document		2016-16541
Federal Register, Volume 81 Issue 134 (Wednesday, July 13, 2016)
[Federal Register Volume 81, Number 134 (Wednesday, July 13, 2016)]
[Notices]
[Pages 45336-45337]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16541]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78215A]


Corrected Order Extending a Temporary Exemption From Compliance 
With Rules 13n-1 to 13n-12 Under the Securities Exchange Act of 1934

June 30, 2016.

I. Introduction

    On March 18, 2016, under its authority in section 36 of the 
Securities Exchange Act of 1934 (``Exchange Act''), the Securities and 
Exchange Commission (``Commission'') granted a temporary exemption from 
compliance with Rules 13n-1 to 13n-12 (``SDR Rules'') until June 30, 
2016. The Commission also granted an extension of the exemptions from 
Exchange Act sections 13(n)(5)(D)(i), 13(n)(5)(F), 13(n)(5)(G), 
13(n)(5)(H), 13(n)(7)(A), 13(n)(7)(B), 13(n)(7)(C) and 29(b) provided 
in the DFA Effective Date Order \1\ (``SDR Relief''), as described in 
the Commission's March 18, 2016 order,

[[Page 45337]]

such that the SDR Relief will expire on the earlier of (1) the date the 
Commission grants registration to an SDR and (2) June 30, 2016.\2\ The 
Commission granted the exemptions to help facilitate the potential 
submission of any SDR applications at the time.
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    \1\ See Temporary Exemptions and Other Temporary Relief, 
Together with Information on Compliance Dates for New Provisions of 
the Exchange Act Applicable to Security-Based Swaps, Exchange Act 
Release No. 64678 (June 15, 2011), 76 FR 36287 (June 22, 2011) (the 
``DFA Effective Date Order'').
    \2\ See Exchange Act Release No. 77400 (Mar. 18, 2016), 81 FR 
15599 (Mar. 23, 2016) (``SDR Section 36 Order'').
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    Since March 18, 2016, two entities have filed applications to 
register with the Commission as SDRs.\3\ To allow the Commission 
additional time to review these applications prior to the compliance 
date for the SDR Rules and the expiration of the SDR Relief, the 
Commission is extending the exemptions granted in the March 18, 2016 
order.
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    \3\ See Exchange Act Release No. 77699 (Apr. 22, 2016), 81 FR 
25475 (Apr. 28, 2016) (``ICE Trade Vault Notice'') and Exchange Act 
Release No. 34-78216 (June 30, 2016), 81 FR 44379 (July 7, 2016) 
(``DDR Notice'').
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II. Discussion

    The SDR Rules Release \4\ states that SDRs were required to be in 
compliance with the SDR Rules by March 18, 2016. The SDR Rules Release 
also notes that, absent an exemption, any SDR must be registered with 
the Commission and in compliance with the federal securities laws and 
the rules and regulations thereunder (including the applicable Dodd-
Frank Act provisions and all of the SDR Rules) by March 18, 2016.\5\
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    \4\ See Exchange Act Release No. 74246 (Feb. 11, 2015), 80 FR 
14438 (Mar. 19, 2015) (``SDR Rules Release'').
    \5\ See id., 80 FR at 14456. The SDR Rules Release also notes 
that all exemptions that the Commission provided in a previous 
release, including the exemption to provisions in Exchange Act 
Section 13(n), will expire on the March 18, 2016 compliance date. 
See id. (discussing the DFA Effective Date Order).
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    Since March 18, 2016, two entities have filed applications to 
register with the Commission as SDRs. ICE Trade Vault, LLC (``ICE Trade 
Vault'') filed with the Commission a Form SDR seeking registration as 
an SDR on March 29, 2016 and amended that form on April 18, 2016. The 
Commission's notice of ICE Trade Vault's application for registration 
as an SDR was published in the Federal Register on April 28, 2016.\6\ 
DTCC Data Repository (U.S.) LLC (``DDR'') filed with the Commission a 
Form SDR seeking registration as an SDR on April 6, 2016 and amended 
that form on April 25, 2016. The Commission's notice of DDR's 
application for registration as an SDR was published in the Federal 
Register on July 7, 2016.\7\ Rule 13n-1(c) provides that, within 90 
days of the date of the publication of notice of the filing of an 
application for registration (or within such longer period as to which 
the applicant consents), the Commission will either grant the 
registration by order or institute proceedings to determine whether 
registration should be granted or denied.
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    \6\ See ICE Trade Vault Notice.
    \7\ See DDR Notice.
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    Subject to certain exceptions, section 36 of the Exchange Act \8\ 
authorizes the Commission, by rule, regulation, or order, to exempt, 
either conditionally or unconditionally, any person, security, or 
transaction, or any class or classes of persons, securities, or 
transactions, from any provision or provisions of the Exchange Act or 
any rule or regulation thereunder, to the extent that such exemption is 
necessary or appropriate in the public interest, and is consistent with 
the protection of investors. The Commission finds that it is necessary 
and appropriate in the public interest, and consistent with the 
protection of investors, to grant a temporary exemption from compliance 
with the SDR Rules and an extension of the SDR Relief. The applications 
filed by ICE Trade Vault and DDR are the first SDR applications 
submitted to the Commission and therefore present issues of first 
impression for the Commission's consideration. Therefore, to allow the 
Commission additional time prior to the compliance date for the SDR 
Rules and the expiration of the SDR Relief to review the applications 
and consider issues related to the first applications for registration 
of SDRs, the Commission hereby grants, pursuant to Section 36 of the 
Exchange Act, a temporary exemption from compliance with the SDR Rules 
and an extension of the SDR Relief until October 5, 2016, which is 90 
days from publication of notice of DDR's application for registration 
as a SDR.
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    \8\ 15 U.S.C. 78mm.

    By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2016-16541 Filed 7-12-16; 8:45 am]
 BILLING CODE 8011-01-P
45336 Federal Register / Vol. 81, No. 134 / Wednesday, July 13, 2016 / Notices

B. Self-Regulatory Organization’s public interest because it will permit the proposed rule change between the
Statement on Burden on Competition PRISM pilot to continue without Commission and any person, other than
The Exchange does not believe that interruption and will allow the those that may be withheld from the
the proposed rule change will impose Exchange to gather more information in public in accordance with the
any burden on competition not connection with the pilot. provisions of 5 U.S.C. 552, will be
necessary or appropriate in furtherance The Commission believes that available for Web site viewing and
of the purposes of the Act. The proposal waiving the 30-day operative delay is printing in the Commission’s Public
extends existing pilots that apply to all consistent with the protection of Reference Room, 100 F Street NE.,
Exchange members, and enables the investors and the public interest, as it Washington, DC 20549, on official
Exchange to be competitive in respect of will allow the PRISM pilot to continue business days between the hours of
other option exchanges that have similar uninterrupted, thereby avoiding any 10:00 a.m. and 3:00 p.m. Copies of the
programs. potential investor confusion that could filing also will be available for
result from a temporary interruption in inspection and copying at the principal
C. Self-Regulatory Organization’s the pilot. Therefore, the Commission office of the Exchange. All comments
Statement on Comments on the designates the proposed rule change to received will be posted without change;
Proposed Rule Change Received From be operative on July 18, 2016.19 the Commission does not edit personal
Members, Participants, or Others At any time within 60 days of the identifying information from
No written comments were either filing of the proposed rule change, the submissions. You should submit only
solicited or received. Commission summarily may information that you wish to make
temporarily suspend such rule change if available publicly. All submissions
III. Date of Effectiveness of the it appears to the Commission that such should refer to File Number SR–BX–
Proposed Rule Change and Timing for action is necessary or appropriate in the 2016–038 and should be submitted on
Commission Action public interest, for the protection of or before August 3, 2016.
Because the foregoing proposed rule investors, or otherwise in furtherance of For the Commission, by the Division of
change does not: (i) Significantly affect the purposes of the Act. Trading and Markets, pursuant to delegated
the protection of investors or the public authority.20
IV. Solicitation of Comments Brent J. Fields,
interest; (ii) impose any significant
burden on competition; and (iii) become Interested persons are invited to Secretary.
operative for 30 days from the date on submit written data, views, and [FR Doc. 2016–16491 Filed 7–12–16; 8:45 am]
which it was filed, or such shorter time arguments concerning the foregoing, BILLING CODE 8011–01–P
as the Commission may designate, it has including whether the proposed rule
become effective pursuant to Section change is consistent with the Act.
19(b)(3)(A) of the Act 15 and Comments may be submitted by any of SECURITIES AND EXCHANGE
subparagraph (f)(6) of Rule 19b–4 the following methods: COMMISSION
thereunder.16 Electronic Comments [Release No. 34–78215A]
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not • Use the Commission’s Internet Corrected Order Extending a
become operative for 30 days after the comment form (http://www.sec.gov/ Temporary Exemption From
date of filing. However, pursuant to rules/sro.shtml); or Compliance With Rules 13n–1 to 13n–
Rule 19b–4(f)(6)(iii),18 the Commission • Send an email to rule-comments@ 12 Under the Securities Exchange Act
may designate a shorter time if such sec.gov. Please include File Number SR– of 1934
action is consistent with the protection BX–2016–038 on the subject line.
of investors and the public interest. The June 30, 2016.
Paper Comments
Exchange requested that the I. Introduction
Commission waive the 30-day operative • Send paper comments in triplicate
delay. The Exchange stated that the to Secretary, Securities and Exchange On March 18, 2016, under its
proposed rule change does not involve Commission, 100 F Street NE., authority in section 36 of the Securities
any substantive changes to the Washington, DC 20549–1090. Exchange Act of 1934 (‘‘Exchange Act’’),
Exchange’s Rules and only seeks to All submissions should refer to File the Securities and Exchange
extend the previously approved PRISM Number SR–BX–2016–038. This file Commission (‘‘Commission’’) granted a
pilot. The Exchange also stated that the number should be included on the temporary exemption from compliance
extension will ensure fair competition subject line if email is used. To help the with Rules 13n–1 to 13n–12 (‘‘SDR
among exchanges by allowing the Commission process and review your Rules’’) until June 30, 2016. The
Exchange to continue with this pilot comments more efficiently, please use Commission also granted an extension
similar to other options exchanges that only one method. The Commission will of the exemptions from Exchange Act
operate auctions. Finally, the Exchange post all comments on the Commission’s sections 13(n)(5)(D)(i), 13(n)(5)(F),
stated that the waiver is consistent with Internet Web site (http://www.sec.gov/ 13(n)(5)(G), 13(n)(5)(H), 13(n)(7)(A),
the protection of investors and the rules/sro.shtml). Copies of the 13(n)(7)(B), 13(n)(7)(C) and 29(b)
submission, all subsequent provided in the DFA Effective Date
15 15 U.S.C. 78s(b)(3)(a). amendments, all written statements Order 1 (‘‘SDR Relief’’), as described in
16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– with respect to the proposed rule the Commission’s March 18, 2016 order,
jstallworth on DSK7TPTVN1PROD with NOTICES

4(f)(6) requires a self-regulatory organization to give change that are filed with the
the Commission written notice of its intent to file 20 17 CFR 200.30–3(a)(12).
the proposed rule change at least five business days Commission, and all written 1 See Temporary Exemptions and Other
prior to the date of filing of the proposed rule communications relating to the Temporary Relief, Together with Information on
change, or such shorter time as designated by the Compliance Dates for New Provisions of the
Commission. The Exchange has satisfied this 19 For purposes only of waiving the operative Exchange Act Applicable to Security-Based Swaps,
requirement. delay, the Commission has considered the proposed Exchange Act Release No. 64678 (June 15, 2011), 76
17 17 CFR 240.19b–4(f)(6).
rule’s impact on efficiency, competition, and capital FR 36287 (June 22, 2011) (the ‘‘DFA Effective Date
18 17 CFR 240.19b–4(f)(6)(iii). formation. See 15 U.S.C. 78c(f). Order’’).

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Federal Register / Vol. 81, No. 134 / Wednesday, July 13, 2016 / Notices 45337

such that the SDR Relief will expire on publication of notice of the filing of an SECURITIES AND EXCHANGE
the earlier of (1) the date the application for registration (or within COMMISSION
Commission grants registration to an such longer period as to which the [Release No. 34–78245; File No. SR–Phlx–
SDR and (2) June 30, 2016.2 The applicant consents), the Commission 2016–58]
Commission granted the exemptions to will either grant the registration by
help facilitate the potential submission order or institute proceedings to Self-Regulatory Organizations;
of any SDR applications at the time. determine whether registration should NASDAQ PHLX LLC; Notice of Filing of
Since March 18, 2016, two entities be granted or denied. Proposed Rule Change To Adopt Limit
have filed applications to register with Order Protection
the Commission as SDRs.3 To allow the Subject to certain exceptions, section
Commission additional time to review 36 of the Exchange Act 8 authorizes the July 7, 2016.
these applications prior to the Commission, by rule, regulation, or Pursuant to Section 19(b)(1) of the
compliance date for the SDR Rules and order, to exempt, either conditionally or Securities Exchange Act of 1934
the expiration of the SDR Relief, the unconditionally, any person, security, (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Commission is extending the or transaction, or any class or classes of notice is hereby given that on June 24,
exemptions granted in the March 18, persons, securities, or transactions, from 2016, NASDAQ PHLX LLC (‘‘Phlx’’ or
2016 order. any provision or provisions of the ‘‘Exchange’’) filed with the Securities
Exchange Act or any rule or regulation and Exchange Commission (‘‘SEC’’ or
II. Discussion ‘‘Commission’’) the proposed rule
thereunder, to the extent that such
The SDR Rules Release 4 states that exemption is necessary or appropriate change as described in Items I and II
SDRs were required to be in compliance in the public interest, and is consistent below, which Items have been prepared
with the SDR Rules by March 18, 2016. by the Exchange. The Commission is
with the protection of investors. The
The SDR Rules Release also notes that, publishing this notice to solicit
Commission finds that it is necessary
absent an exemption, any SDR must be comments on the proposed rule change
and appropriate in the public interest,
registered with the Commission and in from interested persons.
compliance with the federal securities and consistent with the protection of
investors, to grant a temporary I. Self-Regulatory Organization’s
laws and the rules and regulations
exemption from compliance with the Statement of the Terms of Substance of
thereunder (including the applicable
SDR Rules and an extension of the SDR the Proposed Rule Change
Dodd-Frank Act provisions and all of
the SDR Rules) by March 18, 2016.5 Relief. The applications filed by ICE The Exchange proposes to amend
Since March 18, 2016, two entities Trade Vault and DDR are the first SDR NASDAQ PSX Rule 3307, entitled
have filed applications to register with applications submitted to the ‘‘Processing of Orders’’ to adopt a Limit
the Commission as SDRs. ICE Trade Commission and therefore present Order Protection or ‘‘LOP’’ for members
Vault, LLC (‘‘ICE Trade Vault’’) filed issues of first impression for the accessing PSX.
with the Commission a Form SDR Commission’s consideration. Therefore, The text of the proposed rule change
seeking registration as an SDR on March to allow the Commission additional is available on the Exchange’s Web site
29, 2016 and amended that form on time prior to the compliance date for the at http://
April 18, 2016. The Commission’s SDR Rules and the expiration of the nasdaqomxphlx.cchwallstreet.com, at
notice of ICE Trade Vault’s application the principal office of the Exchange, and
SDR Relief to review the applications
for registration as an SDR was published at the Commission’s Public Reference
and consider issues related to the first
in the Federal Register on April 28, Room.
applications for registration of SDRs, the
2016.6 DTCC Data Repository (U.S.) LLC Commission hereby grants, pursuant to II. Self-Regulatory Organization’s
(‘‘DDR’’) filed with the Commission a Section 36 of the Exchange Act, a Statement of the Purpose of, and
Form SDR seeking registration as an temporary exemption from compliance Statutory Basis for, the Proposed Rule
SDR on April 6, 2016 and amended that with the SDR Rules and an extension of Change
form on April 25, 2016. The
the SDR Relief until October 5, 2016, In its filing with the Commission, the
Commission’s notice of DDR’s
which is 90 days from publication of Exchange included statements
application for registration as an SDR
notice of DDR’s application for concerning the purpose of and basis for
was published in the Federal Register
registration as a SDR. the proposed rule change and discussed
on July 7, 2016.7 Rule 13n–1(c) provides
any comments it received on the
that, within 90 days of the date of the By the Commission.
proposed rule change. The text of these
Brent J. Fields, statements may be examined at the
2 See Exchange Act Release No. 77400 (Mar. 18,
Secretary. places specified in Item IV below. The
2016), 81 FR 15599 (Mar. 23, 2016) (‘‘SDR Section
36 Order’’). [FR Doc. 2016–16541 Filed 7–12–16; 8:45 am] Exchange has prepared summaries, set
3 See Exchange Act Release No. 77699 (Apr. 22,
BILLING CODE 8011–01–P forth in sections A, B, and C below, of
2016), 81 FR 25475 (Apr. 28, 2016) (‘‘ICE Trade the most significant aspects of such
Vault Notice’’) and Exchange Act Release No. 34–
78216 (June 30, 2016), 81 FR 44379 (July 7, 2016) statements.
(‘‘DDR Notice’’).
4 See Exchange Act Release No. 74246 (Feb. 11,
A. Self-Regulatory Organization’s
2015), 80 FR 14438 (Mar. 19, 2015) (‘‘SDR Rules Statement of the Purpose of, and
Release’’). Statutory Basis for, the Proposed Rule
jstallworth on DSK7TPTVN1PROD with NOTICES

5 See id., 80 FR at 14456. The SDR Rules Release Change
also notes that all exemptions that the Commission
provided in a previous release, including the 1. Purpose
exemption to provisions in Exchange Act Section
13(n), will expire on the March 18, 2016
The Exchange proposes to adopt a
compliance date. See id. (discussing the DFA new mechanism to protect against
Effective Date Order).
6 See ICE Trade Vault Notice. 1 15 U.S.C. 78s(b)(1).
7 See DDR Notice. 8 15 U.S.C. 78mm. 2 17 CFR 240.19b–4.

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Document Created: 2016-07-13 01:44:14
Document Modified: 2016-07-13 01:44:14
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 45336