81_FR_58148 81 FR 57984 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules 803 and 1308

81 FR 57984 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules 803 and 1308

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 164 (August 24, 2016)

Page Range57984-57985
FR Document2016-20206

Federal Register, Volume 81 Issue 164 (Wednesday, August 24, 2016) 
[Federal Register Volume 81, Number 164 (Wednesday, August 24, 2016)]
[Notices]
[Pages 57984-57985]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20206]



[[Page 57984]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78612; File No. SR-MIAX-2016-29]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Exchange Rules 803 and 1308

August 18, 2016.
    Pursuant to the provisions of 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 August 12, 2016, Miami International Securities 
Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') a 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend Exchange Rule 803, 
Audits; and Exchange Rule 1308, Supervision of Accounts, to adopt new 
Interpretations and Policies .01 to each existing rule regarding the 
submission of annual reports.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at 
MIAX's principal office, 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 aspects 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 Exchange Rule 803, Audits, to adopt 
new Interpretations and Policies .01 to state that Members must now 
file annual reports electronically with the Exchange by utilizing the 
system or software prescribed by the Exchange which will be announced 
via Regulatory Circular. Additionally, the Exchange proposes to amend 
Exchange Rule 1308, Supervision of Accounts, to adopt new 
Interpretations and Policies .01 to state that Members required to file 
an annual report under paragraph (g) of Rule 1308 must now file such 
report electronically with the Exchange by utilizing the system or 
software prescribed by the Exchange which will be announced via 
Regulatory Circular.
    The Exchange has a Regulatory Services Agreement (``RSA'') with the 
Financial Industry Regulatory Authority, Inc. (``FINRA''). FINRA 
provides its members, and the members of exchanges for which it 
provides regulatory services, access to its Firm Gateway system, which 
is a portal that provides consolidated access to various FINRA 
regulatory systems. As part of the RSA, FINRA will collect reports on 
behalf of the Exchange and provide a report to the Exchange indicating 
which Firms have submitted an annual audit report. Additionally, FINRA 
has a process in place to provide specific annual audit reports to the 
Exchange upon request.
    The FINRA Firm Gateway is available to Members \3\ of the Exchange 
for the submission of various regulatory filings, including certain 
filings such as the Annual Supervision Report and the Annual Audit 
Report. The Exchange intends to require Members that are required to 
submit these reports to the Exchange to submit them to FINRA through 
the Firm Gateway system and announce this to Members via Regulatory 
Circular as stated in the proposed amended rules.
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    \3\ The term ``Member'' means an individual organization 
approved to exercise trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
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    Therefore the Exchange proposes to adopt Interpretations and 
Policies .01 to Rule 803 to state that reports must be filed 
electronically with the Exchange utilizing the system or software 
prescribed by the Exchange. Additionally, the Exchange proposes to 
adopt Interpretations and Policies .01 to Rule 1308 to state that if a 
Member is required to file a report, that such report must be filed 
electronically with the Exchange utilizing the system or software 
prescribed by the Exchange.
    The Exchange believes that requiring Members to submit annual 
reports directly into the system of the Exchange's regulatory services 
provider will provide for a more efficient and effective process for 
the collection, tracking, consolidation, and review of Members' annual 
reports.
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
Section 6(b) of the Act \4\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act \5\ 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 mechanisms of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest. Additionally, the Exchange 
believes the proposed rule change is consistent with the Section 
6(b)(5) \6\ requirement that the rules of an exchange not be designed 
to permit unfair discrimination between customers, issuers, brokers, or 
dealers.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ Id.
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    In particular, the Exchange believes that the proposed rule change 
will create a more efficient and effective process for the Exchange's 
Members to submit annual reports to the Exchange, which fosters 
cooperation and coordination with FINRA in its performance of 
regulatory services with respect to the Exchange and Exchange Members. 
By enhancing the process through which the Exchange (through its 
regulatory services provider) receives annual reports, the Exchange 
believes the proposed rule changes will promote just and equitable 
principles of trade and ultimately protect investors. Additionally, 
upon implementation, all Members that are required to submit annual 
reports will be required to submit them in the same (and thus 
nondiscriminatory) electronic manner.
    Regulation of Members continues to be performed by electronic 
processes, and thus the Exchange believes it is appropriate to require 
electronic submission of these reports so that they may be incorporated 
into these processes. By maintaining the flexibility

[[Page 57985]]

within the rules for the Exchange to prescribe by Regulatory Circular 
which system or software will be used for the submission of annual 
reports, the Exchange believes it will be able to adjust, as necessary, 
the required manner of reporting by Members, particularly to the extent 
that new or enhanced software or systems are developed for this 
purpose.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change 
requires all Members that are required to submit annual reports to 
submit those reports electronically in the same manner.
    The Exchange believes the proposed rule change will not impose any 
burden on intra-market competition because it applies equally to all 
Exchange Members with reporting obligations.
    The Exchange does not believe that the proposed rule changes will 
impose any burden on intermarket competition as the proposed rule 
change is for regulatory purposes to enhance the process for Member's 
submission and the Exchange's collection, tracking, consolidation, and 
review of annual reports.
    The Exchange believes that the proposed change is not controversial 
and does not impose any significant burden on the Exchange's Members. 
All Exchange Members have access to the FINRA Firm Gateway system and 
there is no additional financial cost to file the required reports 
electronically through this system. Additionally, the majority of 
Members of the Exchange are also Members of FINRA and use the FINRA 
Firm Gateway system on a regular basis. Therefore, the Exchange 
believes that any burden that the proposed rule change may impose on 
Members will be minimal. The Exchange believes any burden is outweighed 
by the benefits of electronic filing, which include a more efficient 
and effective process for the Exchange (through its regulatory services 
provider) to collect, track, and consolidate annual reports. The 
Exchange believes that an electronic filing process is in its, and its 
Members', best interest.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor 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 after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) \8\ 
thereunder.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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.
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    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 should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MIAX-2016-29 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-MIAX-2016-29. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of 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-MIAX-2016-29, and should be 
submitted on or before September 14, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-20206 Filed 8-23-16; 8:45 am]
 BILLING CODE 8011-01-P

57984 Federal Register / Vol. 81, No. 164 / Wednesday, August 24, 2016 / Notices SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Rule 1308 to state that if a Member is COMMISSION Statement of the Purpose of, and the required to file a report, that such report Statutory Basis for, the Proposed Rule must be filed electronically with the [Release No. 34–78612; File No. SR–MIAX– Change Exchange utilizing the system or software prescribed by the Exchange. 2016–29] 1. Purpose The Exchange believes that requiring The Exchange proposes to amend Members to submit annual reports Self-Regulatory Organizations; Miami Exchange Rule 803, Audits, to adopt directly into the system of the International Securities Exchange LLC; new Interpretations and Policies .01 to Exchange’s regulatory services provider Notice of Filing and Immediate state that Members must now file will provide for a more efficient and Effectiveness of a Proposed Rule annual reports electronically with the effective process for the collection, Change To Amend Exchange Rules Exchange by utilizing the system or tracking, consolidation, and review of 803 and 1308 software prescribed by the Exchange Members’ annual reports. August 18, 2016. which will be announced via Regulatory Circular. Additionally, the Exchange 2. Statutory Basis Pursuant to the provisions of Section proposes to amend Exchange Rule 1308, MIAX believes that its proposed rule 19(b)(1) of the Securities Exchange Act Supervision of Accounts, to adopt new change is consistent with Section 6(b) of of 1934 (‘‘Act’’)1 and Rule 19b–4 Interpretations and Policies .01 to state the Act 4 in general, and furthers the thereunder,2 notice is hereby given that that Members required to file an annual objectives of Section 6(b)(5) of the Act 5 on August 12, 2016, Miami International report under paragraph (g) of Rule 1308 in particular, in that it is designed to Securities Exchange LLC (‘‘MIAX’’ or must now file such report electronically prevent fraudulent and manipulative ‘‘Exchange’’) filed with the Securities with the Exchange by utilizing the acts and practices, to promote just and and Exchange Commission system or software prescribed by the equitable principles of trade, to foster (‘‘Commission’’) a proposed rule change Exchange which will be announced via cooperation and coordination with as described in Items I, II, and III below, Regulatory Circular. persons engaged in facilitating which Items have been prepared by the The Exchange has a Regulatory transactions in securities, to remove Exchange. The Commission is Services Agreement (‘‘RSA’’) with the impediments to and perfect the publishing this notice to solicit Financial Industry Regulatory mechanisms of a free and open market comments on the proposed rule change Authority, Inc. (‘‘FINRA’’). FINRA and a national market system and, in from interested persons. provides its members, and the members general, to protect investors and the of exchanges for which it provides public interest. Additionally, the I. Self-Regulatory Organization’s regulatory services, access to its Firm Exchange believes the proposed rule Statement of the Terms of Substance of Gateway system, which is a portal that change is consistent with the Section the Proposed Rule Change provides consolidated access to various 6(b)(5) 6 requirement that the rules of an FINRA regulatory systems. As part of exchange not be designed to permit The Exchange is filing a proposal to the RSA, FINRA will collect reports on unfair discrimination between amend Exchange Rule 803, Audits; and behalf of the Exchange and provide a customers, issuers, brokers, or dealers. Exchange Rule 1308, Supervision of report to the Exchange indicating which In particular, the Exchange believes Accounts, to adopt new Interpretations Firms have submitted an annual audit that the proposed rule change will and Policies .01 to each existing rule report. Additionally, FINRA has a create a more efficient and effective regarding the submission of annual process in place to provide specific process for the Exchange’s Members to reports. annual audit reports to the Exchange submit annual reports to the Exchange, The text of the proposed rule change upon request. which fosters cooperation and is available on the Exchange’s Web site The FINRA Firm Gateway is available coordination with FINRA in its at http://www.miaxoptions.com/filter/ to Members 3 of the Exchange for the performance of regulatory services with wotitle/rule_filing, at MIAX’s principal submission of various regulatory filings, respect to the Exchange and Exchange office, and at the Commission’s Public including certain filings such as the Members. By enhancing the process Reference Room. Annual Supervision Report and the through which the Exchange (through Annual Audit Report. The Exchange its regulatory services provider) receives II. Self-Regulatory Organization’s intends to require Members that are annual reports, the Exchange believes Statement of the Purpose of, and required to submit these reports to the the proposed rule changes will promote Statutory Basis for, the Proposed Rule Exchange to submit them to FINRA just and equitable principles of trade Change through the Firm Gateway system and and ultimately protect investors. announce this to Members via Additionally, upon implementation, all In its filing with the Commission, the Regulatory Circular as stated in the Members that are required to submit Exchange included statements proposed amended rules. annual reports will be required to concerning the purpose of and basis for Therefore the Exchange proposes to submit them in the same (and thus the proposed rule change and discussed adopt Interpretations and Policies .01 to nondiscriminatory) electronic manner. any comments it received on the Rule 803 to state that reports must be Regulation of Members continues to proposed rule change. The text of these filed electronically with the Exchange be performed by electronic processes, statements may be examined at the utilizing the system or software and thus the Exchange believes it is places specified in Item IV below. The prescribed by the Exchange. mstockstill on DSK3G9T082PROD with NOTICES appropriate to require electronic Exchange has prepared summaries, set Additionally, the Exchange proposes to submission of these reports so that they forth in sections A, B, and C below, of adopt Interpretations and Policies .01 to may be incorporated into these the most significant aspects of such processes. By maintaining the flexibility 3 The term ‘‘Member’’ means an individual statements. organization approved to exercise trading rights 4 15 U.S.C. 78f(b). associated with a Trading Permit. Members are 1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f(b)(5). deemed ‘‘members’’ under the Exchange Act. See 2 17 CFR 240.19b–4. Exchange Rule 100. 6 Id. VerDate Sep<11>2014 20:16 Aug 23, 2016 Jkt 238001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 E:\FR\FM\24AUN1.SGM 24AUN1

Federal Register / Vol. 81, No. 164 / Wednesday, August 24, 2016 / Notices 57985 within the rules for the Exchange to III. Date of Effectiveness of the submission, all subsequent prescribe by Regulatory Circular which Proposed Rule Change and Timing for amendments, all written statements system or software will be used for the Commission Action with respect to the proposed rule submission of annual reports, the Because the foregoing proposed rule change that are filed with the Exchange believes it will be able to change does not: (i) Significantly affect Commission, and all written adjust, as necessary, the required the protection of investors or the public communications relating to the manner of reporting by Members, interest; (ii) impose any significant proposed rule change between the particularly to the extent that new or burden on competition; and (iii) become Commission and any person, other than enhanced software or systems are operative for 30 days after the date of those that may be withheld from the developed for this purpose. the filing, or such shorter time as the public in accordance with the Commission may designate, it has provisions of 5 U.S.C. 552, will be B. Self-Regulatory Organization’s available for Web site viewing and Statement on Burden on Competition become effective pursuant to 19(b)(3)(A) of the Act 7 and Rule 19b–4(f)(6) 8 printing in the Commission’s Public The Exchange does not believe that Reference Room, 100 F Street NE., thereunder. the proposed rule change will impose At any time within 60 days of the Washington, DC 20549, on official any burden on competition that is not filing of the proposed rule change, the business days between the hours of necessary or appropriate in furtherance Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the of the purposes of the Act. The temporarily suspend such rule change if filing also will be available for proposed rule change requires all it appears to the Commission that such inspection and copying at the principal Members that are required to submit action is necessary or appropriate in the office of the Exchange. All comments annual reports to submit those reports public interest, for the protection of received will be posted without change; electronically in the same manner. the Commission does not edit personal investors, or otherwise in furtherance of The Exchange believes the proposed identifying information from the purposes of the Act. If the rule change will not impose any burden submissions. You should submit only Commission takes such action, the on intra-market competition because it information that you wish to make Commission shall institute proceedings applies equally to all Exchange available publicly. All submissions to determine whether the proposed rule Members with reporting obligations. should refer to File Number SR–MIAX– should be approved or disapproved. The Exchange does not believe that 2016–29, and should be submitted on or the proposed rule changes will impose IV. Solicitation of Comments before September 14, 2016. any burden on intermarket competition Interested persons are invited to For the Commission, by the Division of as the proposed rule change is for submit written data, views, and Trading and Markets, pursuant to delegated regulatory purposes to enhance the arguments concerning the foregoing, authority.9 process for Member’s submission and including whether the proposed rule Robert W. Errett, the Exchange’s collection, tracking, change is consistent with the Act. Deputy Secretary. consolidation, and review of annual Comments may be submitted by any of [FR Doc. 2016–20206 Filed 8–23–16; 8:45 am] reports. the following methods: BILLING CODE 8011–01–P The Exchange believes that the Electronic Comments proposed change is not controversial and does not impose any significant • Use the Commission’s Internet SECURITIES AND EXCHANGE burden on the Exchange’s Members. All comment form (http://www.sec.gov/ COMMISSION Exchange Members have access to the rules/sro.shtml); or FINRA Firm Gateway system and there • Send an email to rule-comments@ Proposed Collection; Comment sec.gov. Please include File Number SR– Request is no additional financial cost to file the required reports electronically through MIAX–2016–29 on the subject line. Upon Written Request, Copies Available this system. Additionally, the majority Paper Comments From: Securities and Exchange of Members of the Exchange are also • Send paper comments in triplicate Commission, Office of FOIA Services, Members of FINRA and use the FINRA to Secretary, Securities and Exchange 100 F Street NE., Washington, DC Firm Gateway system on a regular basis. Commission, 100 F Street NE., 20549–2736. Therefore, the Exchange believes that Washington, DC 20549–1090. Extension: any burden that the proposed rule Rule 17a–4, SEC File No. 270–198, OMB All submissions should refer to File change may impose on Members will be Control No. 3235–0279. Number SR–MIAX–2016–29. This file minimal. The Exchange believes any Notice is hereby given that pursuant number should be included on the burden is outweighed by the benefits of to the Paperwork Reduction Act of 1995 subject line if email is used. To help the electronic filing, which include a more (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Commission process and review your efficient and effective process for the Securities and Exchange Commission comments more efficiently, please use Exchange (through its regulatory (‘‘Commission’’) is soliciting comments only one method. The Commission will services provider) to collect, track, and on the collection of information post all comments on the Commission’s consolidate annual reports. The provided for in Rule 17a–4 (17 CFR Internet Web site (http://www.sec.gov/ Exchange believes that an electronic 240.17a–4), under the Securities rules/sro.shtml). Copies of the filing process is in its, and its Members’, Exchange Act of 1934 (15 U.S.C. 78a et best interest. mstockstill on DSK3G9T082PROD with NOTICES 7 15 U.S.C. 78s(b)(3)(A). seq.). The Commission plans to submit C. Self-Regulatory Organization’s 8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– this existing collection of information to Statement on Comments on the 4(f)(6) requires a self-regulatory organization to give the Office of Management and Budget Proposed Rule Change Received From the Commission written notice of its intent to file (‘‘OMB’’) for extension and approval. the proposed rule change at least five business days Rule 17a–4 requires exchange Members, Participants, or Others prior to the date of filing of the proposed rule change, or such shorter time as designated by the members, brokers and dealers (‘‘broker- Written comments were neither Commission. The Exchange has satisfied this solicited nor received. requirement. 9 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 20:16 Aug 23, 2016 Jkt 238001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\24AUN1.SGM 24AUN1


Document Created: 2016-08-24 03:02:46
Document Modified: 2016-08-24 03:02:46
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 57984 
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