81 FR 5793 - Self-Regulatory Organizations; NYSE MKT LLC; Order Approving a Proposed Rule Change Deleting Rule 410B-Equities Governing Reporting Requirements for Off-Exchange Transactions
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 22 (February 3, 2016)
Federal Register Volume 81, Issue 22 (February 3, 2016)
| Page Range | 5793-5795 | |
| FR Document | 2016-01923 |
[Federal Register Volume 81, Number 22 (Wednesday, February 3, 2016)] [Notices] [Pages 5793-5795] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-01923] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76982; File No. SR-NYSEMKT-2015-80] Self-Regulatory Organizations; NYSE MKT LLC; Order Approving a Proposed Rule Change Deleting Rule 410B--Equities Governing Reporting Requirements for Off-Exchange Transactions January 28, 2016. I. Introduction On October 16, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to delete Rule 410B--Equities governing reporting requirements for off-Exchange transactions. The proposed rule change was published for comment in the Federal Register on November 2, 2015.\3\ The Commission received no comment letters on the proposed rule change. On December 16, 2015, the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to approve or disapprove the proposed rule change.\4\ The Commission is approving the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 76276 (October 27, 2015), 80 FR 67454. \4\ See Securities Exchange Act Release No. 76669, 80 FR 79640 (December 22, 2015). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change The Exchange proposes to delete Rule 410B--Equities (``Rule 410B''), which sets forth certain regulatory reporting requirements for member or member organizations effecting off-Exchange transactions in Exchange listed securities that are not reported to the Consolidated Tape, and to make conforming amendments to Rule 476A to delete a reference to Rule 410B. The Exchange represents that Rule 410B is no longer necessary in light of changes in trade reporting and regulatory requirements that have been put in place since the Exchange adopted Rule 410B. Changes to Regulatory Landscape On July 30, 2007, the National Association of Securities Dealers, Inc. (``NASD''), New York Stock Exchange LLC (``NYSE''), and NYSE Regulation, Inc. (``NYSE Regulation'') consolidated their member-firm regulation operations to create the Financial Industry Regulatory Authority, Inc. (``FINRA'') and entered into a plan to allocate to FINRA regulatory responsibility for common rules and common members (``17d-2 Agreement'').\5\ The Exchange was added as a party to the 17d- 2 Agreement in 2009.\6\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 56148 (July 26, 2007), 72 FR 42146 (August 1, 2007) (File No. 4-544) (Notice of Filing and Order Approving and Declaring Effective a Plan for the Allocation of Regulatory Responsibilities). In 2007, the NASD, NYSE, the Exchange and NYSE Regulation also entered into a Regulatory Services Agreement (``RSA''), whereby FINRA was retained to perform certain regulatory services for non-common rules. \6\ See Securities Exchange Act Release No. 60409 (July 30, 2009), 74 FR 39353 (August 6, 2009) (File No. 4-587). --------------------------------------------------------------------------- In 2008, the Exchange, NASD, NYSE, and NYSE Regulation also entered into a plan to allocate to FINRA regulatory responsibility, over exchange members that are also FINRA members, for surveillance, investigation, and enforcement of insider trading with respect to NYSE- and MKT-listed stocks, among others, irrespective of where the relevant trading occurred (the ``Insider Trading Plan'').\7\ On June 14, 2010, FINRA was retained to perform the residual market surveillance and enforcement functions that had, up to that point, been performed by NYSE [[Page 5794]] Regulation.\8\ In January 2011, the SEC approved an amendment to the Insider Trading Plan whereby FINRA also assumed responsibility for performing the insider-trading-related market surveillance and enforcement functions previously conducted by NYSE Regulation for its U.S. equities and options markets.\9\ --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 54646 (September 12, 2008), 73 FR 54646 (September 22, 2008) (File No. 4-566). See also Securities Exchange Act Release No. 58806 (October 17, 2008), 73 FR 63216 (October 23, 2008) (File No. 4-566). \8\ See Securities Exchange Act Release No. 62355 (June 22, 2010), 75 FR 36729 (June 28, 2010) (SR-NYSE-2010-46); Securities Exchange Act Release No. 62354 (June 22, 2010), 75 FR 36730 (June 28, 2010) (SR-NYSEAmex-2010-57). NYSE Regulation performed the regulatory functions of NYSE MKT pursuant to an intercompany RSA. \9\ See Securities Exchange Act Release No. 63750 (January 21, 2011), 76 FR 4948 (January 27, 2011) (File No. 4-566). --------------------------------------------------------------------------- Changes in Trade Reporting and Regulatory Reporting In 1998, FINRA (then the NASD) established the Order Audit Trail System (OATS), as an integrated audit trail of order, quote, and trade information for OTC equity securities and equity securities listed and traded on The Nasdaq Stock Market, Inc. (``Nasdaq'').\10\ In 2010, FINRA Rules 7410 through 7470 (the ``OATS Rules'') were amended to extend the recording and reporting requirements to all NMS stocks, as that term is defined in Rule 600(b)(47) of Regulation NMS,\11\ including NYSE- and MKT-listed securities. The Exchange adopted the OATS Rules in 2011.\12\ The Exchange states that FINRA may use the information it collects pursuant to the OATS Rules to perform its regulatory functions. --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release No. 39729 (March 6, 1998), 63 FR 12559 (March 13, 1998) (SR-NASD-97-56). \11\ See Securities Exchange Act Release No. 63311 (November 12, 2010), 75 FR 70757 (November 18, 2010) (SR-FINRA-2010-044). See also 17 CFR 242.600(b)(47). \12\ See Securities Exchange Act Release No. 65524 (October 7, 2011), 76 FR 64151 (October 17, 2011) (SR-NYSEAmex-2011-74). --------------------------------------------------------------------------- According to the Exchange, Rule 410B also predates the establishment of a FINRA Trade Reporting Facility (``TRF''). FINRA Rule 6110 requires FINRA members to report transactions in NMS stocks \13\ effected ``otherwise than on or through a national securities exchange.'' \14\ Pursuant to FINRA Rules 6310A and 6310B, FINRA members may use either the FINRA/NYSE TRF or FINRA/Nasdaq TRF to report such off-Exchange transactions.\15\ FINRA members using these TRFs to report off-Exchange transactions are in turn subject to FINRA Rule 7230B, which, the Exchange states, imposes transaction-information reporting requirements similar to Rule 410B.\16\ As a result, the Exchange represents that dual members of both the Exchange and FINRA must report off-Exchange transactions to a TRF and submit substantially similar reports to the Exchange and FINRA. --------------------------------------------------------------------------- \13\ As defined in Rule 600(b)(47) of Regulation NMS, 17 CFR 242.600(b)(47). \14\ See FINRA Rule 6110. See generally FINRA Rule 6300A and 7200A Series (FINRA/Nasdaq TRF) and 6300B and 7200B Series (FINRA/ NYSE TRF). \15\ See FINRA Rules 6300A & 6300B. \16\ See Rule 7230B. --------------------------------------------------------------------------- Proposed Rule Change The Exchange proposes to delete Rule 410B in its entirety. The Exchange represents that, since 2010, surveillance and enforcement responsibilities across markets have been consolidated at FINRA, which conducts cross-market surveillances on the Exchange's behalf utilizing various data sources, including extensive trade and other information that FINRA collects pursuant to its rules. This trade information includes reports of off-exchange transactions. The Exchange represents that all of its member organizations, with only nine exceptions, are members of FINRA and, as such, must report all off-exchange transactions to FINRA, including transactions away from the Exchange that are not reported to the Consolidated Tape. The Exchange further represents that this information is essentially duplicative of the Rule 410B reports the Exchange currently supplies to FINRA. The Exchange notes that one exception would be transactions in dually listed securities executed on and reported to a foreign securities exchange, which are not required to be reported because such trades are executed ``on or through an exchange.'' \17\ The Exchange represents that it believes such trades pose little regulatory risk and, given that no other exchange has a rule comparable to Rule 410B, notes that such trades are also not being reported to other equities exchanges. Finally, the Exchange represents that only a handful of firms currently account for all of the Rule 410B activity, all of whom are also FINRA members.\18\ The Exchange believes that Rule 410B is thus no longer necessary, and deleting it would eliminate essentially duplicative reporting of off-Exchange transactions by dual members. --------------------------------------------------------------------------- \17\ See Trade Reporting Frequently Asked Questions, Section 701, Q/A701.1, available at http://www.finra.org/industry/trade-reporting-faq. \18\ According to the Exchange, Rule 410B Weekly Reports submitted to the SEC in July and August 2015 reveal that only five firms, all also FINRA members, accounted for all of the Rule 410B trading activity. The Exchange further represents that the list of firms that have in the past submitted Rule 410B reports does not include any non-FINRA members. --------------------------------------------------------------------------- The Exchange does not believe that eliminating the Rule 410B reporting requirement for the small number of NYSE MKT-only members\19\ would pose any significant regulatory risk. The Exchange represents that none of these firms has ever submitted a Rule 410B report. The Exchange also notes that NYSE MKT-only members would remain subject to federal and Exchange books and records requirements.\20\ --------------------------------------------------------------------------- \19\ The Exchange represents that these nine non-FINRA member firms do not have any public customers and are also members of Nasdaq as well as NYSE. \20\ See 17 CFR 240.17a-3, 17 CFR 240.17a-4 & Rule 440-- Equities. --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act \21\ and the rules and regulations thereunder applicable to a national securities exchange.\22\ In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,\23\ which requires, among other things, that the rules of a national securities exchange be 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 and that the rules are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78f. \22\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \23\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Based on the Exchange's representations, the Commission believes that eliminating the Rule 410B reporting requirement will not reduce the amount of publicly available information about securities transactions and that it is not likely to hamper the ability of the Exchange to conduct regulatory oversight of its members. The Commission notes that Rule 410B does not currently provide for real-time, publicly disseminated reporting of transactions, but instead requires non- public, electronic reporting of trade data to the Exchange on a next- day basis for regulatory purposes only. The Commission further notes that the Exchange represents that its members would remain subject to federal and [[Page 5795]] Exchange books-and-records requirements \24\ and that Exchange members would still be required to provide such trade data to the Exchange upon the Exchange's request. For these reasons, the Commission believes that the proposal should help to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, protect investors and the public interest. --------------------------------------------------------------------------- \24\ See 17 CFR 240.17a-3, 17 CFR 240.17a-4 & Rule 440-- Equities. --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\25\ that the proposed rule change (SR-NYSEMKT-2015-80) be, and hereby is, approved. --------------------------------------------------------------------------- \25\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\26\ Robert W. Errett, Deputy Secretary. --------------------------------------------------------------------------- \26\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2016-01923 Filed 2-2-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices 5793
0001, telephone: 301–415–3306; email: For further details with respect to this The Commission is approving the
Lois.James@nrc.gov. action, see: (1) Exelon Generation proposed rule change.
SUPPLEMENTARY INFORMATION: Notice is Company, LLC’s (Exelon) license
renewal application for Byron Station, II. Description of the Proposed Rule
hereby given that the NRC has issued Change
renewed facility operating license Nos. Units 1 and 2, and Braidwood Station,
NPF–72 and NPF–77 to Exelon Units 1 and 2, dated May 29, 2013, as The Exchange proposes to delete Rule
Generation Company, LLC, the operator supplemented by letters dated through 410B—Equities (‘‘Rule 410B’’), which
of Braidwood Station. Renewed facility April 13, 2015; (2) the NRC’s safety sets forth certain regulatory reporting
operating license Nos. NPF–72 and evaluation report dated July 2015 requirements for member or member
NPF–77 authorizes the operation of (ADAMS Accession No. ML15182A051); organizations effecting off-Exchange
Braidwood Units 1 and 2 at reactor core (3) the NRC’s final environmental transactions in Exchange listed
power levels not in excess of 3645 impact statement (NUREG–1437, securities that are not reported to the
megawatts thermal each, in accordance Supplement 55), for Braidwood, Units 1 Consolidated Tape, and to make
with the provisions of the Braidwood, and 2, published in November 2015; conforming amendments to Rule 476A
Units 1 and 2 renewed licenses and and (4) the NRC’s ROD. to delete a reference to Rule 410B. The
technical specifications. The NRC’s Dated at Rockville, Maryland, this 27 day Exchange represents that Rule 410B is
ROD that supports the decision to renew of January 2016. no longer necessary in light of changes
facility operating license Nos. NPF–72 For the Nuclear Regulatory Commission, in trade reporting and regulatory
and NPF–77 is available in ADAMS Christopher G. Miller, requirements that have been put in
under Accession No. ML15322A317. Director, Division of License Renewal, Office place since the Exchange adopted Rule
As discussed in the ROD and the final of Nuclear Reactor Regulation. 410B.
supplemental environmental impact [FR Doc. 2016–02070 Filed 2–2–16; 8:45 am]
statement (FSEIS) for Braidwood Changes to Regulatory Landscape
BILLING CODE 7590–01–P
Station, Supplement 55 to NUREG–
1437, ‘‘Generic Environmental Impact On July 30, 2007, the National
Statement for License Renewal of Association of Securities Dealers, Inc.
Nuclear Plants Regarding Braidwood SECURITIES AND EXCHANGE (‘‘NASD’’), New York Stock Exchange
Station, Units 1 and 2,’’ issued in COMMISSION LLC (‘‘NYSE’’), and NYSE Regulation,
November 2015 (ADAMS Accession No. Inc. (‘‘NYSE Regulation’’) consolidated
[Release No. 34–76982; File No. SR– their member-firm regulation operations
ML15314A814), the NRC considered a NYSEMKT–2015–80]
range of reasonable alternatives that to create the Financial Industry
included new nuclear generation, coal- Regulatory Authority, Inc. (‘‘FINRA’’)
Self-Regulatory Organizations; NYSE
integrated gasification combined cycle, and entered into a plan to allocate to
MKT LLC; Order Approving a
natural gas combined-cycle (NGCC), FINRA regulatory responsibility for
Proposed Rule Change Deleting Rule
combination (NGCC, wind, and solar common rules and common members
410B—Equities Governing Reporting
generation), replacement power, and the (‘‘17d–2 Agreement’’).5 The Exchange
Requirements for Off-Exchange
no-action alternative. The ROD and was added as a party to the 17d-2
Transactions
FSEIS document the NRC’s Agreement in 2009.6
determination that the adverse January 28, 2016. In 2008, the Exchange, NASD, NYSE,
environmental impacts of license I. Introduction and NYSE Regulation also entered into
renewal for Braidwood are not so great a plan to allocate to FINRA regulatory
that preserving the option of license On October 16, 2015, NYSE MKT LLC responsibility, over exchange members
renewal for energy planning decision (the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed that are also FINRA members, for
makers would be unreasonable. with the Securities and Exchange surveillance, investigation, and
Braidwood Station, Units 1 and 2, has Commission (‘‘Commission’’), pursuant enforcement of insider trading with
two pressurized water reactors and is to Section 19(b)(1) of the Securities respect to NYSE- and MKT-listed stocks,
located in Will County, Illinois. The Exchange Act of 1934 (‘‘Act’’) 1 and Rule among others, irrespective of where the
application for the renewed licenses, 19b-4 thereunder,2 a proposed rule relevant trading occurred (the ‘‘Insider
‘‘License Renewal Application, Byron change to delete Rule 410B—Equities Trading Plan’’).7 On June 14, 2010,
and Braidwood Stations, Units 1 and 2,’’ governing reporting requirements for FINRA was retained to perform the
dated May 29, 2013 (ADAMS Accession off-Exchange transactions. The proposed residual market surveillance and
Nos. ML13155A420 and rule change was published for comment enforcement functions that had, up to
ML13155A421), as supplemented by in the Federal Register on November 2, that point, been performed by NYSE
letters dated through April 13, 2015, 2015.3 The Commission received no
with respect to Braidwood Station, comment letters on the proposed rule 5 See Securities Exchange Act Release No. 56148
complied with the standards and change. On December 16, 2015, the (July 26, 2007), 72 FR 42146 (August 1, 2007) (File
requirements of the Atomic Energy Act Commission designated a longer period No. 4–544) (Notice of Filing and Order Approving
within which to approve the proposed and Declaring Effective a Plan for the Allocation of
of 1954, as amended (AEA) and the Regulatory Responsibilities). In 2007, the NASD,
NRC’s regulations in Chapter I of title 10 rule change, disapprove the proposed NYSE, the Exchange and NYSE Regulation also
of the Code of Federal Regulations. The rule change, or institute proceedings to entered into a Regulatory Services Agreement
determine whether to approve or (‘‘RSA’’), whereby FINRA was retained to perform
mstockstill on DSK4VPTVN1PROD with NOTICES
NRC has made appropriate findings, certain regulatory services for non-common rules.
which are set forth in each of the disapprove the proposed rule change.4
6 See Securities Exchange Act Release No. 60409
licenses, as required by the AEA and its (July 30, 2009), 74 FR 39353 (August 6, 2009) (File
1 15 U.S.C. 78s(b)(1).
regulations. A public notice of the 2 17
No. 4–587).
CFR 240.19b–4. 7 See Securities Exchange Act Release No. 54646
proposed issuance of the renewed 3 See Securities Exchange Act Release No. 76276
(September 12, 2008), 73 FR 54646 (September 22,
licenses and an opportunity for a (October 27, 2015), 80 FR 67454. 2008) (File No. 4–566). See also Securities Exchange
hearing was published in the Federal 4 See Securities Exchange Act Release No. 76669, Act Release No. 58806 (October 17, 2008), 73 FR
Register on July 24, 2013 (78 FR 44603). 80 FR 79640 (December 22, 2015). 63216 (October 23, 2008) (File No. 4–566).
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![Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices 5795
Exchange books-and-records I. Self-Regulatory Organization’s transaction, the ORF is assessed to the
requirements 24 and that Exchange Statement of the Terms of Substance of Permit Holder who clears the
members would still be required to the Proposed Rule Change transaction. The ORF is collected
provide such trade data to the Exchange The Exchange proposes to amend the indirectly from Permit Holders through
upon the Exchange’s request. For these Options Regulatory Fee. The text of the their clearing firms by OCC on behalf of
reasons, the Commission believes that proposed rule change is available on the the Exchange.
the proposal should help to prevent Exchange’s Web site (http:// The ORF is designed to recover a
fraudulent and manipulative acts and www.c2exchange.com/Legal/), at the material portion of the costs to the
practices, promote just and equitable Exchange’s Office of the Secretary, and Exchange of the supervision and
principles of trade, remove at the Commission’s Public Reference regulation of Permit Holder customer
impediments to and perfect the Room. options business, including performing
routine surveillances, investigations,
mechanism of a free and open market II. Self-Regulatory Organization’s examinations, financial monitoring, as
and a national market system, and, in Statement of the Purpose of, and well as policy, rulemaking, interpretive
general, protect investors and the public Statutory Basis for, the Proposed Rule and enforcement activities. The
interest. Change Exchange believes that revenue
IV. Conclusion In its filing with the Commission, the generated from the ORF, when
Exchange included statements combined with all of the Exchange’s
It is therefore ordered, pursuant to concerning the purpose of and basis for other regulatory fees and fines, will
Section 19(b)(2) of the Act,25 that the the proposed rule change and discussed cover a material portion, but not all, of
proposed rule change (SR–NYSEMKT– any comments it received on the the Exchange’s regulatory costs. The
2015–80) be, and hereby is, approved. proposed rule change. The text of these Exchange notes that its regulatory
For the Commission, by the Division of statements may be examined at the responsibilities with respect to Permit
Trading and Markets, pursuant to delegated places specified in Item IV below. The Holder compliance with options sales
authority.26 Exchange has prepared summaries, set practice rules have largely been
forth in sections A, B, and C below, of allocated to FINRA under a 17d–2
Robert W. Errett,
the most significant aspects of such agreement.3 The ORF is not designed to
Deputy Secretary. statements. cover the cost of that options sales
[FR Doc. 2016–01923 Filed 2–2–16; 8:45 am] practice regulation.
A. Self-Regulatory Organization’s
BILLING CODE 8011–01–P The Exchange will continue to
Statement of the Purpose of, and
monitor the amount of revenue
Statutory Basis for, the Proposed Rule
collected from the ORF to ensure that it,
SECURITIES AND EXCHANGE Change
in combination with its other regulatory
COMMISSION 1. Purpose fees and fines, does not exceed the
The Exchange proposes to decrease Exchange’s total regulatory costs. The
[Release No. 34–76995; File No. SR–C2– the Options Regulatory Fee (‘‘ORF’’) Exchange monitors its regulatory costs
2016–001] from $.0051 to $.0015 per contract in and revenues at a minimum on a semi-
order to help ensure that revenue annual basis. If the Exchange
Self-Regulatory Organizations; C2 collected from the ORF, in combination determines regulatory revenues exceed
Options Exchange, Incorporated; with other regulatory fees and fines, or are insufficient to cover a material
Notice of Filing and Immediate does not exceed the Exchange’s total portion of its regulatory costs, the
Effectiveness of a Proposed Rule regulatory costs. The proposed fee Exchange will adjust the ORF by
Change Relating to the Options change would be operative on February submitting a fee change filing to the
Regulatory Fee 1, 2016. Commission. The Exchange notifies
The ORF is assessed by the Exchange Permit Holders of adjustments to the
January 28, 2016. to each Permit Holder for all options ORF via regulatory circular. The
Pursuant to Section 19(b)(1) of the transactions executed or cleared by the Exchange endeavors to provide Permit
Securities Exchange Act of 1934 Permit Holder that are cleared by The Holders with such notice at least 30
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Options Clearing Corporation (‘‘OCC’’) calendar days prior to the effective date
notice is hereby given that on January in the customer range (i.e., transactions of the change.
14, 2016, C2 Options Exchange, that clear in a customer account at OCC) 2. Statutory Basis
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) regardless of the exchange on which the
transaction occurs. In other words, the The Exchange believes the proposed
filed with the Securities and Exchange rule change is consistent with the
Commission (‘‘Commission’’) the Exchange imposes the ORF on all
customer-range transactions executed by Securities Exchange Act of 1934 (the
proposed rule change as described in ‘‘Act’’) and the rules and regulations
Items I, II, and III below, which Items a Permit Holder, even if the transactions
do not take place on the Exchange. The thereunder applicable to the Exchange
have been prepared by the Exchange. and, in particular, the requirements of
The Commission is publishing this ORF also is charged for transactions that
are not executed by a Permit Holder but Section 6(b) of the Act.4 Specifically,
notice to solicit comments on the the Exchange believes the proposed rule
are ultimately cleared by a Permit
proposed rule change from interested change is consistent with Section 6(b)(4)
mstockstill on DSK4VPTVN1PROD with NOTICES
Holder. In the case where a Permit
persons. of the Act,5 which provides that
Holder executes a transaction and a
different Permit Holder clears the Exchange rules may provide for the
24 See 17 CFR 240.17a–3, 17 CFR 240.17a–4 &
Rule 440—Equities.
transaction, the ORF is assessed to the 3 See Securities Exchange Act Release No. 76309
25 15 U.S.C. 78s(b)(2). Permit Holder who executed the (October 29, 2015), 80 FR 68361 (November 4,
26 17 CFR 200.30–3(a)(12). transaction. In the case where a non- 2015).
1 15 U.S.C. 78s(b)(1). Permit Holder executes a transaction 4 15 U.S.C. 78f(b).
2 17 CFR 240.19b–4. and a Permit Holder clears the 5 15 U.S.C. 78f(b)(4).
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Document Created: 2016-02-03 00:40:30
Document Modified: 2016-02-03 00:40:30
| 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 5793 |
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