81 FR 60049 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Short Term Option Series Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 169 (August 31, 2016)
Federal Register Volume 81, Issue 169 (August 31, 2016)
| Page Range | 60049-60051 | |
| FR Document | 2016-20961 |
[Federal Register Volume 81, Number 169 (Wednesday, August 31, 2016)] [Notices] [Pages 60049-60051] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-20961] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78694; File No. SR-BX-2016-047] Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Short Term Option Series Program August 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 August 25, 2016, NASDAQ BX, Inc. (``BX'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II, 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 expand the Short Term Option Series Program to allow Wednesday expirations for SPY options. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqbx.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant 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 Exchange proposes to amend BX Rules at Chapter I, Section 1(a)(60) and Chapter IV, Section 6 at Commentary .07 to expand the Short Term Option Series Program to permit the listing and trading of options with Wednesday expirations. Currently, under the Short Term Option Series Program, the Exchange may open for trading on any Thursday or Friday that is a business day series of options on that class that expire on each of the next five consecutive Fridays, provided that such Friday is not a Friday in which monthly options series or Quarterly Options Series expire (``Short Term Option Series''). The Exchange is now proposing to amend its rule to permit the listing of options expiring on Wednesdays. Specifically, the Exchange is proposing that it may open for trading on any Tuesday or Wednesday that is a business day, series of options on the SPDR S&P 500 ETF Trust (SPY) to expire on any Wednesday of the month that is a business day and is not a Wednesday in which Quarterly Options Series expire (``Wednesday SPY Expirations'').\3\ The proposed Wednesday SPY Expiration series will be similar to the current Short Term Option Series, with certain exceptions, as explained in greater detail below. The Exchange notes that having Wednesday expirations is not a novel proposal. Specifically, BOX Options Exchange LLC (``BOX'') recently received approval to list Wednesday expirations for SPY options.\4\ --------------------------------------------------------------------------- \3\ See BX Rule Chapter IV, Section 6 at Commentary .07. \4\ See Securities Exchange Act Release No. 78668 (SR-BOX-2016- 28) (pending publication in the Federal Register). --------------------------------------------------------------------------- In regards to Wednesday SPY Expirations, the Exchange is proposing to remove the current restriction preventing the Exchange from listing Short Term Option Series that expire in the same week in which monthly option series in the same class expire. Specifically, the Exchange will be allowed to list Wednesday SPY Expirations in the same week in which monthly option series in SPY expire. The current restriction to prohibit the expiration of monthly and Short Term Option Series from expiring on the same trading day is reasonable to avoid investor confusion. This confusion will not apply with Wednesday SPY Expirations and standard monthly options because they will not expire on the same trading day, as standard monthly options do not expire on Wednesdays. Additionally, it would lead to investor confusion if Wednesday SPY Expirations were not listed for one week every month because there was a monthly SPY expiration on the Friday of that week. Under the proposed Wednesday SPY Expirations, the Exchange may list up to five consecutive Wednesday SPY Expirations at one time. The Exchange may have no more than a total of five Wednesday SPY Expirations listed. This is the same listing procedure as Short Term Option Series that expire on Fridays. This means, under the proposal, the Exchange would be allowed to list five Short Term Option Series expirations for SPY expiring on Friday under the current rule and five Wednesday SPY Expirations. The interval between strike prices for the proposed Wednesday SPY Expirations will be the same as those for the current Short Term Option Series. Specifically, the Wednesday SPY Expirations will have $0.50 strike intervals. Currently, for each Short Term Option Expiration Date,\5\ the Exchange is limited to opening thirty (30) series for each expiration date for the specific class. The thirty (30) series restriction does not include series that are open by other securities exchanges under their respective short term option rules; the Exchange may list these additional series that are listed by other exchanges.\6\ The thirty (30) series restriction shall apply to Wednesday SPY Expiration series as well. In addition, the Exchange will be able to list series that are listed by other exchanges, assuming they file similar rules with the Commission to list SPY options expiring on Wednesdays. --------------------------------------------------------------------------- \5\ BX may open for trading on any Thursday or Friday that is a business day series of options on that class that expire on each of the next five consecutive Fridays that are business days and are not Fridays in which monthly options series or Quarterly Options Series expire (``Short Term Option Expiration Dates''). See BX Rule Chapter IV, Section 6 at Commentary .07. \6\ See BX Rule Chapter IV, Section 6 at Commentary .07. --------------------------------------------------------------------------- As is the case with current Short Term Option Series, the Wednesday SPY Expiration series will be P.M.-settled. The Exchange does not believe that any market disruptions will be encountered with the introduction of [[Page 60050]] P.M.-settled Wednesday SPY Expirations. The Exchange currently trades P.M.-settled Short Term Option Series that expire almost every Friday, which provide market participants a tool to hedge special events and to reduce the premium cost of buying protection. The Exchange seeks to introduce Wednesday SPY Expirations to, among other things, expand hedging tools available to market participants and to continue the reduction of the premium cost of buying protection. The Exchange believes that Wednesday expirations, similar to Friday expirations, would allow market participants to purchase an option based on their timing as needed and allow them to tailor their investment and hedging needs more effectively. The Exchange is also amending the definition of Short Term Option Series to make clear that it includes Wednesday expirations.\7\ Specifically, the Exchange is amending the definition to expand Short Term Option Series to those listed on any Tuesday or Wednesday and that expire on the Wednesday of the next business week. If a Tuesday or Wednesday is not a business day, the series may be opened (or shall expire) on the first business day immediately prior to that Tuesday or Wednesday. The Exchange believes that the introduction of Wednesday SPY Expirations will provide investors with a flexible and valuable tool to manage risk exposure, minimize capital outlays, and be more responsive to the timing of events affecting the industry. --------------------------------------------------------------------------- \7\ See proposed Chapter I, Section 1(a)(60). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\8\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\9\ in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the Exchange believes the Short Term Option Series Program has been successful to date and that Wednesday SPY Expirations simply expand the ability of investors to hedge risk against market movements stemming from economic releases or market events that occur throughout the month in the same way that the Short Term Option Series Program has expanded the landscape of hedging. Similarly, the Exchange believes Wednesday SPY Expirations should create greater trading and hedging opportunities and flexibility, and provide customers with the ability to more closely tailor their investment objectives. The Exchange believes that allowing Wednesday SPY Expirations and monthly SPY expirations in the same week will benefit investors and minimize investor confusion by providing Wednesday SPY Expirations in a continuous and uniform manner. Finally, the Exchange represents that it has an adequate surveillance program in place to detect manipulative trading in Wednesday SPY Expirations in the same way it monitors trading in the current Short Term Option Series. The Exchange also represents that it has the necessary systems capacity to support the new options series. Also, the Exchange notes that BOX Options Exchange LLC (``BOX'') recently received approval to list Wednesday expirations for SPY options.\10\ --------------------------------------------------------------------------- \10\ See supra, note 4. --------------------------------------------------------------------------- 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 not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that having Wednesday expirations is not a novel proposal, BOX has received approval to list Wednesday expirations for SPY options.\11\ The Exchange does not believe the proposal will impose any burden on intra- market competition, as all market participants will be treated in the same manner. Additionally, the Exchange does not believe the proposal will impose any burden on inter-market competition, as nothing prevents the other options exchanges from proposing similar rules. --------------------------------------------------------------------------- \11\ See supra, note 4. --------------------------------------------------------------------------- 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, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 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 intention 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. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative for 30 days from the date of filing. However, Rule 19b-4(f)(6)(iii) \14\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission notes that it recently approved BOX's substantially similar proposal to list and trade Wednesday SPY Expirations.\15\ The Exchange has stated that waiver of the operative delay will allow the Exchange to list and trade Wednesday SPY Expirations as soon as possible, and therefore, promote competition among the option exchanges. For these reasons, the Commission believes that the proposed rule change presents no novel issues and that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest, and will allow the Exchange to remain competitive with other exchanges. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposal effective upon filing.\16\ 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. --------------------------------------------------------------------------- \14\ 17 CFR 240.19b-4(f)(6)(iii). \15\ See supra note 4. \16\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and [[Page 60051]] 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-BX-2016-047 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-BX-2016-047. 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-BX-2016-047 and should be submitted on or before September 21, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ Brent J. Fields, Secretary. --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2016-20961 Filed 8-30-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 169 / Wednesday, August 31, 2016 / Notices 60049
available publicly. All submissions statements may be examined at the expiration of monthly and Short Term
should refer to File Number SR– places specified in Item IV below. The Option Series from expiring on the same
NYSEMKT–2016–79 and should be Exchange has prepared summaries, set trading day is reasonable to avoid
submitted on or before September 21, forth in sections A, B, and C below, of investor confusion. This confusion will
2016. the most significant aspects of such not apply with Wednesday SPY
For the Commission, by the Division of statements. Expirations and standard monthly
Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s options because they will not expire on
authority.40 Statement of the Purpose of, and the same trading day, as standard
Robert W. Errett, Statutory Basis for, the Proposed Rule monthly options do not expire on
Deputy Secretary. Change Wednesdays. Additionally, it would
[FR Doc. 2016–20880 Filed 8–30–16; 8:45 am] lead to investor confusion if Wednesday
1. Purpose SPY Expirations were not listed for one
BILLING CODE 8011–01–P
The Exchange proposes to amend BX week every month because there was a
Rules at Chapter I, Section 1(a)(60) and monthly SPY expiration on the Friday
SECURITIES AND EXCHANGE Chapter IV, Section 6 at Commentary of that week.
COMMISSION .07 to expand the Short Term Option Under the proposed Wednesday SPY
Series Program to permit the listing and Expirations, the Exchange may list up to
[Release No. 34–78694; File No. SR–BX– five consecutive Wednesday SPY
2016–047] trading of options with Wednesday
expirations. Expirations at one time. The Exchange
Self-Regulatory Organizations; Currently, under the Short Term may have no more than a total of five
NASDAQ BX, Inc.; Notice of Filing and Option Series Program, the Exchange Wednesday SPY Expirations listed. This
Immediate Effectiveness of Proposed may open for trading on any Thursday is the same listing procedure as Short
Rule Change To Expand the Short or Friday that is a business day series Term Option Series that expire on
Term Option Series Program of options on that class that expire on Fridays. This means, under the
each of the next five consecutive proposal, the Exchange would be
August 26, 2016. Fridays, provided that such Friday is allowed to list five Short Term Option
Pursuant to Section 19(b)(1) of the not a Friday in which monthly options Series expirations for SPY expiring on
Securities Exchange Act of 1934 series or Quarterly Options Series expire Friday under the current rule and five
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 (‘‘Short Term Option Series’’). The Wednesday SPY Expirations. The
notice is hereby given that on August Exchange is now proposing to amend its interval between strike prices for the
25, 2016, NASDAQ BX, Inc. (‘‘BX’’ or rule to permit the listing of options proposed Wednesday SPY Expirations
‘‘Exchange’’) filed with the Securities expiring on Wednesdays. Specifically, will be the same as those for the current
and Exchange Commission (‘‘SEC’’ or the Exchange is proposing that it may Short Term Option Series. Specifically,
‘‘Commission’’) the proposed rule open for trading on any Tuesday or the Wednesday SPY Expirations will
change as described in Items I and II, Wednesday that is a business day, series have $0.50 strike intervals.
below, which Items have been prepared of options on the SPDR S&P 500 ETF Currently, for each Short Term Option
by the Exchange. The Commission is Trust (SPY) to expire on any Wednesday Expiration Date,5 the Exchange is
publishing this notice to solicit of the month that is a business day and limited to opening thirty (30) series for
comments on the proposed rule change is not a Wednesday in which Quarterly each expiration date for the specific
from interested persons. Options Series expire (‘‘Wednesday SPY class. The thirty (30) series restriction
I. Self-Regulatory Organization’s Expirations’’).3 The proposed does not include series that are open by
Statement of the Terms of Substance of Wednesday SPY Expiration series will other securities exchanges under their
the Proposed Rule Change be similar to the current Short Term respective short term option rules; the
Option Series, with certain exceptions, Exchange may list these additional
The Exchange proposes to expand the as explained in greater detail below. The series that are listed by other
Short Term Option Series Program to Exchange notes that having Wednesday exchanges.6 The thirty (30) series
allow Wednesday expirations for SPY expirations is not a novel proposal. restriction shall apply to Wednesday
options. Specifically, BOX Options Exchange SPY Expiration series as well. In
The text of the proposed rule change LLC (‘‘BOX’’) recently received approval addition, the Exchange will be able to
is available on the Exchange’s Web site to list Wednesday expirations for SPY list series that are listed by other
at http://nasdaqbx.cchwallstreet.com/, options.4 exchanges, assuming they file similar
at the principal office of the Exchange, In regards to Wednesday SPY rules with the Commission to list SPY
and at the Commission’s Public Expirations, the Exchange is proposing options expiring on Wednesdays.
Reference Room. to remove the current restriction As is the case with current Short
II. Self-Regulatory Organization’s preventing the Exchange from listing Term Option Series, the Wednesday
Statement of the Purpose of, and Short Term Option Series that expire in SPY Expiration series will be P.M.-
Statutory Basis for, the Proposed Rule the same week in which monthly option settled. The Exchange does not believe
Change series in the same class expire. that any market disruptions will be
Specifically, the Exchange will be encountered with the introduction of
In its filing with the Commission, the
allowed to list Wednesday SPY
Exchange included statements
Expirations in the same week in which 5 BX may open for trading on any Thursday or
mstockstill on DSK3G9T082PROD with NOTICES
concerning the purpose of and basis for Friday that is a business day series of options on
monthly option series in SPY expire.
the proposed rule change and discussed that class that expire on each of the next five
The current restriction to prohibit the consecutive Fridays that are business days and are
any comments it received on the
not Fridays in which monthly options series or
proposed rule change. The text of these 3 See BX Rule Chapter IV, Section 6 at Quarterly Options Series expire (‘‘Short Term
Commentary .07. Option Expiration Dates’’). See BX Rule Chapter IV,
40 17 CFR 200.30–3(a)(12). 4 See Securities Exchange Act Release No. 78668 Section 6 at Commentary .07.
1 15 U.S.C. 78s(b)(1). (SR–BOX–2016–28) (pending publication in the 6 See BX Rule Chapter IV, Section 6 at
2 17 CFR 240.19b–4. Federal Register). Commentary .07.
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![Federal Register / Vol. 81, No. 169 / Wednesday, August 31, 2016 / Notices 60051
arguments concerning the foregoing, SECURITIES AND EXCHANGE pension plans, and their beneficiaries
including whether the proposed rule COMMISSION receive inferior services or pay higher
change is consistent with the Act. fees.
[Release No. 34–78683; File No. SR–FINRA–
Comments may be submitted by any of 2015–056] The proposed rule change was
the following methods: published for comment in the Federal
Electronic Comments Self-Regulatory Organizations; Register on December 30, 2015.4 The
Financial Industry Regulatory Commission received ten comment
• Use the Commission’s Internet Authority, Inc.; Order Approving a letters, from nine different commenters,
comment form (http://www.sec.gov/ Proposed Rule Change To Adopt
rules/sro.shtml); or in response to the Notice.5 On February
FINRA Rule 2030 and FINRA Rule 4580
8, 2016, FINRA extended the time
• Send an email to rule-comments@ To Establish ‘‘Pay-To-Play’’ and
Related Rules period by which the Commission must
sec.gov. Please include File Number SR–
approve the proposed rule change,
BX–2016–047 on the subject line.
August 25, 2016. disapprove the proposed rule change, or
Paper Comments institute proceedings to determine
I. Introduction
• Send paper comments in triplicate whether to approve or disapprove the
On December 16, 2015, Financial proposed rule change to March 29,
to Secretary, Securities and Exchange Industry Regulatory Authority, Inc.
Commission, 100 F Street NE., 2016.6 On March 28, 2016, FINRA filed
(‘‘FINRA’’) filed with the Securities and
Washington, DC 20549–1090. a letter with the Commission stating that
Exchange Commission (‘‘SEC’’ or
it considered the comments received by
All submissions should refer to File ‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act the Commission in response to the
Number SR–BX–2016–047. This file
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and Notice, and that FINRA is not intending
number should be included on the
Rule 19b–4 thereunder,2 a proposed rule to make changes to the proposed rule
subject line if email is used. To help the
Commission process and review your change to adopt FINRA Rules 2030 text in response to the comments.7
comments more efficiently, please use (Engaging in Distribution and On March 29, 2016, pursuant to
only one method. The Commission will Solicitation Activities with Government delegated authority, the Commission
post all comments on the Commission’s Entities) and 4580 (Books and Records issued an order instituting proceedings
Internet Web site (http://www.sec.gov/ Requirements for Government pursuant to Section 19(b)(2)(B) of the
rules/sro.shtml). Copies of the Distribution and Solicitation Activities) Act 8 to determine whether to approve
submission, all subsequent to establish ‘‘pay-to-play’’ 3 and related or disapprove the proposed rule change,
amendments, all written statements rules that would regulate the activities
with respect to the proposed rule of member firms that engage in 4 See Exchange Act Rel. No. 76767 (Dec. 24,
change that are filed with the distribution or solicitation activities for 2015), 80 FR 81650 (Dec. 30, 2015) (File No. SR–
Commission, and all written compensation with government entities FINRA–2015–056) (‘‘Notice’’).
communications relating to the on behalf of investment advisers. 5 See Letters from David Keating, President,
Member firms serving this role— Center for Competitive Politics (‘‘CCP’’), dated Jan.
proposed rule change between the 20, 2016 (‘‘CCP Letter 1’’); Clifford Kirsch and
Commission and any person, other than sometimes referred to as ‘‘placement
Michael Koffler, Sutherland Asbill & Brennan LLP,
those that may be withheld from the agents’’ or ‘‘solicitors’’ (collectively for the Committee of Annuity Insurers (‘‘CAI’’),
public in accordance with the referred to herein as ‘‘placement dated Jan. 20, 2016 (‘‘CAI Letter 1’’); Clifford Kirsch
provisions of 5 U.S.C. 552, will be agents’’)—assist investment advisers and Michael Koffler, Sutherland Asbill & Brennan
with obtaining advisory business from LLP, for the CAI, dated Feb. 5, 2016 (‘‘CAI Letter
available for Web site viewing and 2’’); David T. Bellaire, Executive Vice President and
printing in the Commission’s Public such entities. In this context, pay-to-
General Counsel, Financial Services Institute
Reference Room, 100 F Street NE., play has historically presented a (‘‘FSI’’), dated Jan. 20, 2016 (‘‘FSI Letter 1’’); Tamara
Washington, DC 20549, on official problem, including when investment K. Salmon, Assistant General Counsel, Investment
business days between the hours of advisers retain placement agents who Company Institute (‘‘ICI’’), dated Jan. 20, 2016 (‘‘ICI
have made contributions to government Letter’’); Patrick J Moran, Esq., dated Dec. 29, 2015
10:00 a.m. and 3:00 p.m. Copies of the (‘‘Moran Letter’’); Gary A. Sanders, Counsel and
filing also will be available for officials who are responsible for, or can Vice President, National Association of Insurance
inspection and copying at the principal influence the outcome of, the selection and Financial Advisors (‘‘NAIFA’’), dated Jan. 20,
office of the Exchange. All comments process for investment advisers. When 2016 (‘‘NAIFA Letter’’); Judith M. Shaw, President,
received will be posted without change; investment advisers are chosen on the North American Securities Administrators
basis of a placement agent’s political Association, Inc. (‘‘NASAA’’), dated Jan. 20, 2016
the Commission does not edit personal (‘‘NASAA Letter’’); Hugh D. Berkson, President,
identifying information from contributions, rather than on, for Public Investors Arbitration Bar Association
example, the adviser’s merit, (‘‘PIABA’’), dated Jan. 20, 2016 (‘‘PIABA Letter’’);
submissions. You should submit only
performance, or costs, the market and and H. Christopher Bartolomucci and Brian J. Field,
information that you wish to make Bancroft PLLC, for the New York Republican State
selection process for advisers becomes
available publicly. All submissions Committee and the Tennessee Republican Party
distorted. Ultimately, pay-to-play harms
should refer to File Number SR–BX– (‘‘State Parties’’), dated Jan. 20, 2016 (‘‘State Parties
investors and the public interest if Letter 1’’). The comment letters filed with the
2016–047 and should be submitted on
government entities, including public Commission in connection with the proposed rule
or before September 21, 2016. change are available at: http://www.sec.gov/
For the Commission, by the Division of 1 15 U.S.C. 78s(b)(1). comments/sr-finra-2015-056/finra2015056.shtml.
6 See Letter from Victoria Crane, Associate
Trading and Markets, pursuant to delegated 2 17 CFR 240.19b–4.
mstockstill on DSK3G9T082PROD with NOTICES
authority.17 3 ‘‘Pay-to-play practices,’’ ‘‘play-to-play General Counsel, FINRA, to Lourdes Gonzalez,
arrangements’’ or ‘‘play-to-play activities,’’ as Assistant Chief Counsel—Sales Practices, Division
Brent J. Fields, of Trading and Markets, Commission, dated Feb. 8,
referred to throughout this order, typically involve
Secretary. a person making cash or in-kind political 2016.
7 See Letter from Victoria Crane, Associate
[FR Doc. 2016–20961 Filed 8–30–16; 8:45 am] contributions (or soliciting or coordinating others to
make such contributions) to help finance the General Counsel, FINRA, to Brent J. Fields,
BILLING CODE 8011–01–P
election campaigns of state or local officials or bond Secretary, Commission, dated Mar. 28, 2016
ballot initiatives as a quid pro quo for the receipt (‘‘FINRA Response Letter 1’’).
17 17 CFR 200.30–3(a)(12). of government contracts. 8 15 U.S.C. 78s(b)(2)(B).
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Document Created: 2018-02-02 12:14:59
Document Modified: 2018-02-02 12:14:59
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| FR Citation | 81 FR 60049 |
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