81 FR 50582 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Phlx Rule 754 (Employees' Discretion as to Customers' Accounts)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 147 (August 1, 2016)
Federal Register Volume 81, Issue 147 (August 1, 2016)
| Page Range | 50582-50584 | |
| FR Document | 2016-18055 |
[Federal Register Volume 81, Number 147 (Monday, August 1, 2016)] [Notices] [Pages 50582-50584] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-18055] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No.34-78419; File No. SR-Phlx-2016-78] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Phlx Rule 754 (Employees' Discretion as to Customers' Accounts) July 26, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on July 14, 2016, NASDAQ PHLX LLC (``Phlx'' or ``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 The Exchange proposes to amend Rule 754 of the Phlx rules. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqphlx.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission's Public Reference Room. [[Page 50583]] 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 aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule change is to amend Rule 754, which deals with employees' discretion as to customers' accounts and retitle the rule ``Discretionary Power as to Customers' Accounts.'' As discussed below, the Exchange has determined that these rules are outdated and it is more appropriate to follow the corresponding FINRA rule on this subject matter. Consequently, the Exchange is proposing to amend Rule 754 in the Phlx rules. Rule 754 concerns employees' discretion as to customers' accounts. The rule requires that no member or member organization shall permit any of his or its employees or any employee of another member or member organization to exercise discretion in the handling of a transaction for a customer of such member organization and no member, member organization, partner, officer or stockholder therein shall delegate to any such employee any discretionary power vested by a customer in such member, organization, partner, officer, or stockholder, unless in either case the prior written authorization of the customer has been received and, if such discretionary authority runs, directly or by re- delegation, to an employee of another member or member organization, the carrying organization must obtain the prior written consent of the employer of the individual authorized to exercise discretion. The rule also requires that a member, partner, or officer in the carrying organization shall approve and initial each discretionary order entered by an employee of such organization or of another member or member organization on the day the order is entered. Further, the provisions of the rule do not apply to discretion as to the price at which or the time when an order given by a customer for the purchase or sale of a definite amount of a specified security shall be executed. The Exchange believes that the updated language in FINRA Rule 2510 would be more appropriate. The language in FINRA Rule 2510 is more comprehensive in that it also covers excessive transactions; the authorization and acceptance of accounts; and the approval and review of transactions for the benefit of customers. The text of the rule is available on the FINRA Web site. Furthermore, The Nasdaq Stock Market LLC (``NASDAQ'') references NASD Rule 2510 (which mirrors FINRA Rule 2510) in place of providing alternative language at NASDAQ Rule 2510, and substantially similar language is used by The New York Stock Exchange, Inc. (``NYSE'') at NYSE Rule 408. Therefore changing the rule as proposed would ensure consistency for market participants providing customer account statements to customers which would also benefit customers and avoid the potential for confusion. Finally, FINRA Rule 2510 has been updated more frequently over the last few years to address issues raised in response to market participant feedback. This feedback is from a broader market participant base than that which is just available to the Exchange, and so making direct reference to this rule is likely to better serve market participants, customers and investors as a whole on an ongoing basis. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\3\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\4\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, 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. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f(b). \4\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the proposed changes are consistent with just and equitable principles of trade because they update and delete outdated and potentially confusing rule text. Updating Rule 754 will lead to a more comprehensive rule, which ensures consistency across markets and products, and lends clarity, consistency and certainty to market participants, customers and investors alike. By referencing an existing FINRA rule, the Exchange is also future proofing the rule so that changes made to it to address a wider range of market feedback than that which is just available to the Exchange will be taken into account automatically and consistently. B. Self-Regulatory Organization's Statement on Burden on Competition The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Rather it is designed to promote competition among exchanges by removing archaic rules in comparison to the rules of other exchanges. Last, the proposed changes promote clarity in the application of the Exchange's rule by updating the rule to bring it in line with other similar industry rules and eliminating unneeded rule text. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing 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)(iii) of the Act \5\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\6\ --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(3)(a)(iii). \6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings [[Page 50584]] 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 CommentsUse 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-Phlx-2016-78 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-Phlx-2016-78. 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 20549-1090, 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 Number SR-Phlx-2016-78 and should be submitted on or before August 22, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-18055 Filed 7-29-16; 8:45 am] BILLING CODE 8011-01-P
![50582 Federal Register / Vol. 81, No. 147 / Monday, August 1, 2016 / Notices
The Exchange lastly believes it’s III. Date of Effectiveness of the Proposed Reference Room, 100 F Street NE.,
equitable and not unfairly Rule Change and Timing for Washington, DC 20549 on official
discriminatory to assess higher rebates Commission Action business days between the hours of
for non-Penny option classes than The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of such
Penny option classes because Penny effective pursuant to Section 19(b)(3)(A) filing also will be available for
classes and non-Penny classes offer of the Act 9 and paragraph (f) of Rule inspection and copying at the principal
different pricing, liquidity, spread and 19b–4 10 thereunder. At any time within office of the Exchange. All comments
trading incentives. The spreads in 60 days of the filing of the proposed rule received will be posted without change;
Penny classes are tighter than those in change, the Commission summarily may the Commission does not edit personal
non-Penny classes (which trade in $0.05 temporarily suspend such rule change if identifying information from
increments). The wider spreads in non- it appears to the Commission that such submissions. You should submit only
Penny option classes allow for greater action is necessary or appropriate in the information that you wish to make
profit potential. public interest, for the protection of available publicly. All submissions
investors, or otherwise in furtherance of should refer to File Number SR–C2–
B. Self-Regulatory Organization’s
the purposes of the Act. If the 2016–013, and should be submitted on
Statement on Burden on Competition
Commission takes such action, the or before August 22, 2016.
C2 does not believe that the proposed Commission will institute proceedings For the Commission, by the Division of
rule change will impose any burden on to determine whether the proposed rule Trading and Markets, pursuant to delegated
competition that is not necessary or change should be approved or authority.11
appropriate in furtherance of the disapproved. Robert W. Errett,
purposes of the Act. The Exchange does Deputy Secretary.
not believe that the proposed rule IV. Solicitation of Comments
[FR Doc. 2016–18057 Filed 7–29–16; 8:45 am]
change will impose any burden on Interested persons are invited to
BILLING CODE 8011–01–P
intramarket competition that is not submit written data, views, and
necessary or appropriate in furtherance arguments concerning the foregoing,
of the purposes of the Act because, including whether the proposed rule SECURITIES AND EXCHANGE
while different rebates are assessed to change is consistent with the Act. COMMISSION
different market participants in some Comments may be submitted by any of
circumstances, these different market the following methods: [Release No.34–78419; File No. SR–Phlx–
participants have different obligations 2016–78]
Electronic Comments
and different circumstances (as
described in the ‘‘Statutory Basis’’ • Use the Commission’s Internet Self-Regulatory Organizations;
section above). For example, Public comment form (http://www.sec.gov/ NASDAQ PHLX LLC; Notice of Filing
Customers order flow, as discussed rules/sro.shtml); or and Immediate Effectiveness of
above, enhances liquidity on the • Send an email to rule-comments@ Proposed Rule Change To Amend Phlx
Exchange for the benefit of all market sec.gov. Please include File Number SR– Rule 754 (Employees’ Discretion as to
participants. There is also a history in C2–2016–013 on the subject line. Customers’ Accounts)
the options markets of providing Paper Comments July 26, 2016.
preferential treatment to Public • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
Customers. Additionally, Market- to Secretary, Securities and Exchange Securities Exchange Act of 1934
Makers have quoting obligations that Commission, 100 F Street NE., (‘‘Act’’),1 and Rule 19b–4 thereunder,2
other market participants do not have. Washington, DC 20549–1090. notice is hereby given that on July 14,
The Exchange does not believe that All submissions should refer to File 2016, NASDAQ PHLX LLC (‘‘Phlx’’ or
the proposed change will impose any Number SR–C2–2016–013. This file ‘‘Exchange’’) filed with the Securities
burden on intermarket competition that number should be included on the and Exchange Commission
is not necessary or appropriate in subject line if email is used. To help the (‘‘Commission’’) the proposed rule
furtherance of the purposes of the Act Commission process and review your change as described in Items I, II, and
because it only applies to trading on the comments more efficiently, please use III, below, which Items have been
Exchange. Further, the proposed rebate only one method. The Commission will prepared by the Exchange. The
amounts are similar to those assessed post all comments on the Commission’s Commission is publishing this notice to
for similar orders by other exchanges,8 Internet Web site (http://www.sec.gov/ solicit comments on the proposed rule
and therefore should continue to rules/sro.shtml). Copies of the change from interested persons.
encourage competition. Should the submission, all subsequent
proposed change make C2 a more amendments, all written statements I. Self-Regulatory Organization’s
attractive trading venue for market with respect to the proposed rule Statement of the Terms of Substance of
participants at other exchanges, such change that are filed with the the Proposed Rule Change
market participants may elect to become Commission, and all written The Exchange proposes to amend
market participants at C2. communications relating to the Rule 754 of the Phlx rules. The text of
C. Self-Regulatory Organization’s proposed rule change between the the proposed rule change is available on
Statement on Comments on the Commission and any person, other than the Exchange’s Web site at http://
sradovich on DSK3GMQ082PROD with NOTICES
Proposed Rule Change Received From those that may be withheld from the nasdaqphlx.cchwallstreet.com/, at the
Members, Participants, or Others public in accordance with the principal office of the Exchange, and at
provisions of 5 U.S.C. 552, will be the Commission’s Public Reference
The Exchange neither solicited nor available for Web site viewing and Room.
received comments on the proposed printing in the Commission’s Public
rule change. 11 17 CFR 200.30–3(a)(12).
9 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
8 See supra note 4. 10 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4.
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![50584 Federal Register / Vol. 81, No. 147 / Monday, August 1, 2016 / Notices
to determine whether the proposed rule For the Commission, by the Division of them to engage in certain in-kind
should be approved or disapproved. Trading and Markets, pursuant to delegated transactions (‘‘In-Kind Transactions’’) in
authority.7 connection with the Substitution.
IV. Solicitation of Comments Robert W. Errett, Filing Dates: The application was
Deputy Secretary. filed on December 11, 2015, and
Interested persons are invited to
submit written data, views, and
[FR Doc. 2016–18055 Filed 7–29–16; 8:45 am] amended on May 13, 2016, and July 25,
BILLING CODE 8011–01–P 2016. Applicants have agreed to file an
arguments concerning the foregoing,
amendment during the notice period,
including whether the proposed rule
the substance of which is reflected in
change is consistent with the Act. SECURITIES AND EXCHANGE this notice.
Comments may be submitted by any of COMMISSION Hearing or Notification of Hearing: An
the following methods: order granting the application will be
[Release No. IC–32193; File No. 812–14589]
Electronic Comments issued unless the Commission orders a
New York Life Insurance and Annuity hearing. Interested persons may request
• Use the Commission’s Internet Corporation, et al; Notice of a hearing by writing to the Secretary of
comment form (http://www.sec.gov/ Application the Commission and serving applicants
rules/sro.shtml); or with a copy of the request, personally or
July 26, 2016. by mail. Hearing requests should be
• Send an email to rule-comments@ AGENCY: Securities and Exchange
sec.gov. Please include File Number SR– received by the Commission by 5:30
Commission (‘‘Commission’’). p.m. on August 22, 2016, and should be
Phlx–2016–78 on the subject line. ACTION: Notice of application for an accompanied by proof of service on
Paper Comments order approving the substitution of applicants in the form of an affidavit or,
certain securities pursuant to section for lawyers, a certificate of service.
• Send paper comments in triplicate 26(c) of the Investment Company Act of Pursuant to rule 0–5 under the Act,
to Secretary, Securities and Exchange 1940, as amended (‘‘Act’’) and an order hearing requests should state the nature
Commission, 100 F Street NE., of exemption pursuant to section 17(b) of the requester’s interest, any facts
Washington, DC 20549–1090. of the Act from section 17(a) of the Act. bearing upon the desirability of a
All submissions should refer to File Applicants: New York Life Insurance hearing on the matter, the reason for the
and Annuity Corporation (‘‘NYLIAC’’); request, and the issues contested.
Number SR–Phlx–2016–78. This file
NYLIAC Variable Annuity Separate Persons who wish to be notified of a
number should be included on the
Account—I (‘‘VA I’’), NYLIAC Variable hearing may request notification by
subject line if email is used. To help the
Annuity Separate Account—II (‘‘VA– writing to Commission’s Secretary.
Commission process and review your
II’’), NYLIAC Variable Annuity Separate ADDRESSES: Secretary, U.S. Securities
comments more efficiently, please use
Account—III (‘‘VA–III’’), NYLIAC and Exchange Commission, 100 F Street
only one method. The Commission will
Variable Annuity Separate Account—IV NE., Washington, DC 20549–1090.
post all comments on the Commission’s
(‘‘VA–IV’’), NYLIAC Variable Universal Applicants, 51 Madison Avenue, New
Internet Web site (http://www.sec.gov/ York, NY 10010.
rules/sro.shtml). Copies of the Life Separate Account—I (‘‘VUL I’’),
NYLIAC Corporate Sponsored Variable FOR FURTHER INFORMATION CONTACT:
submission, all subsequent
Universal Life Separate Account—I Christine Y. Greenlees, Senior Counsel,
amendments, all written statements
(‘‘Corporate VUL I’’), NYLIAC Private at (202) 551–6879, or David J.
with respect to the proposed rule Marcinkus, Branch Chief, at (202) 551–
Placement Variable Universal Life
change that are filed with the 6821 (Chief Counsel’s Office, Division of
Separate Account—I (‘‘Private VUL I’’),
Commission, and all written Investment Management).
and NYLIAC Private Placement Variable
communications relating to the Universal Life Separate Account—II SUPPLEMENTARY INFORMATION: The
proposed rule change between the (‘‘Private VUL II’’) (collectively, the following is a summary of the
Commission and any person, other than ‘‘Separate Accounts’’ and together with application. The complete application
those that may be withheld from the NYLIAC, the ‘‘Section 26 Applicants’’); may be obtained via the Commission’s
public in accordance with the and MainStay VP Funds Trust (the Web site by searching for the file
provisions of 5 U.S.C. 552, will be ‘‘Trust’’ and, together with NYLIAC and number, or for an applicant using the
available for Web site viewing and the Separate Accounts, the ‘‘Section 17 Company name box, at http://
printing in the Commission’s Public Applicants’’). www.sec.gov/search/search.htm or by
Reference Room, 100 F Street NE., Summary of Application: The Section calling (202) 551–8090.
Washington, DC 20549–1090, on official 26 Applicants seek an order pursuant to
business days between the hours of section 26(c) of the Act approving the Applicants’ Representations
10:00 a.m. and 3:00 p.m. Copies of the substitution of shares of the 1. NYLIAC is a Delaware stock life
filing also will be available for Replacement Portfolio (defined below) insurance company licensed to sell life,
inspection and copying at the principal for shares of the Existing Portfolio accident and health insurance, and
office of the Exchange. All comments (defined below), held by the Separate annuities in the District of Columbia
received will be posted without change; Accounts to support certain variable and all states. NYLIAC is an indirect
the Commission does not edit personal annuity contracts and variable universal wholly-owned subsidiary of New York
sradovich on DSK3GMQ082PROD with NOTICES
identifying information from life insurance policies (the ‘‘Contracts’’) Life Insurance Company, a mutual life
submissions. You should submit only issued by NYLIAC (the ‘‘Substitution’’). insurance company (‘‘New York Life’’).
The Section 17 Applicants seek an order 2. NYLIAC serves as the depositor of
information that you wish to make
pursuant to section 17(b) of the Act the Separate Accounts, which are
available publicly. All submissions
exempting them from section 17(a) of segregated asset accounts of NYLIAC
should refer to File Number SR–Phlx– established under Delaware law
the Act to the extent necessary to permit
2016–78 and should be submitted on or pursuant to resolutions of NYLIAC’s
before August 22, 2016. 7 17 CFR 200.30–3(a)(12). Board of Directors to fund the Contracts.
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Document Created: 2016-07-30 06:26:02
Document Modified: 2016-07-30 06:26:02
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 50582 |
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