81 FR 6085 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 23 (February 4, 2016)
Federal Register Volume 81, Issue 23 (February 4, 2016)
| Page Range | 6085-6088 | |
| FR Document | 2016-02063 |
[Federal Register Volume 81, Number 23 (Thursday, February 4, 2016)] [Notices] [Pages 6085-6088] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-02063] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77000; File No. SR-NYSEARCA-2016-22] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services January 29, 2016. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on January 28, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') 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 self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 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 the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services. The proposed rule change is available on the Exchange's Web site at www.nyse.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 self-regulatory organization 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 those 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 parts 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 change the fees and credits for Cross Asset Tier 2 in the Fee Schedule. Specifically, for securities with a per share price $1.00 or above, the Exchange proposes to: (1) Replace the numeric benchmark needed to be eligible for the tier with a benchmark based on a percentage of options contract volume, and (2) provide a second way to qualify for the Cross Asset Tier 2 credits for orders that provide liquidity to the Exchange. The Exchange proposes to implement the fee changes effective January 28, 2016.\4\ --------------------------------------------------------------------------- \4\ The Exchange originally filed to amend the Fee Schedule on January 4, 2016 (SR-NYSEArca-2016-05) and withdrew such filing on January 14, 2016. The Exchange subsequently filed to amend the Fee Schedule on January 14, 2016 (SR-NYSEArca-2016-12) and withdrew such filing on January 28, 2016. --------------------------------------------------------------------------- Currently, Cross Asset Tier 2 fees and credits apply to ETP Holders and Market Makers that (a) provide liquidity an average daily volume share per month of 0.30% or more of the US Consolidated Average Daily Volume (``CADV''), and (b) are affiliated with an OTP Holder or OTP Firm that provides an ADV of electronic posted executions for the account of a market maker in Penny Pilot issues on NYSE Arca Options (excluding mini options) of at least 90,000 contracts. Such ETP Holders and Market Makers receive a credit of $0.0031 per share for orders that provide liquidity to the order book in Tape A Securities; a credit of $0.0030 per share for providing liquidity to the order book and a fee of $0.0028 per share for taking liquidity from the order book in Tape B Securities; and a credit of $0.0033 per share for providing liquidity to the order book and a fee of $0.0029 per share for taking liquidity from the order book in Tape C Securities. The Exchange proposes to replace the current fixed 90,000 contract requirement with a variable requirement of at least 0.75% of total Customer equity and exchange-traded fund (``ETF'') option ADV, as reported by the Options Clearing Corporation (``OCC'').\5\ [[Page 6086]] The Exchange is proposing these changes to the Cross-Asset Tier 2 in order to make the eligibility requirement consistent with the Exchange's other variable eligibility requirements that are based on percentage of volume. The Exchange believes that using an eligibility requirement based on percentage of volume would better reflect fluctuations in trading volumes. The proposed change would thus eliminate the need to modify a fixed number requirement because a threshold based on volume would automatically make the necessary adjustments. --------------------------------------------------------------------------- \5\ The OCC provides volume information in two product categories: Equity and ETF volume and index volume, and the information can be filtered to show only Customer, firm, or market maker account type. Equity and ETF Customer volume numbers are available directly from the OCC each morning, or may be transmitted, upon request, free of charge from the Exchange. Total Industry Customer equity and ETF option ADV is comprised of those equity and ETF option contracts that clear in the customer account type at OCC, including Exchange-Traded Fund Shares, Trust Issued Receipts, Partnership Units, and Index-Linked Securities such as Exchange- Traded Notes (see NYSE Arca Options Rule 5.3(g)-(j)), and does not include contracts that clear in either the firm or market maker account type at OCC or contracts overlying a security other than an equity or ETF security. The Exchange currently makes this data publicly available on a T+1 basis from a link at http://www.nyxdata.com/factbook. --------------------------------------------------------------------------- The Exchange proposes to make a clarifying amendment to the text of the Fee Schedule to more accurately reflect the application of the Cross Asset Tier 2. Specifically, the Exchange proposes to delete the potentially confusing phrase ``(including all account types)'' following ``electronic posted executions'' and before ``in Penny Pilot issues on NYSE Arca Options'' in current clause (b) of the Fee Schedule consistent with the filing adopting the Cross Asset Tier 2.\6\ The Exchange also proposes to move the phrase ``for the account of a market maker'' from the end of current clause (b) to after ``electronic posted executions'' to add greater clarity to the Fee Schedule. --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 76084 (October 6, 2015), 80 FR 61529, 61531 (October 13, 2015) (SR-NYSEArca-2015-87) (the Cross Asset Tier 2 applies to ``ETP Holders and Market Makers that (a) provide liquidity an average daily volume share per month of 0.30% or more of the US CADV and (b) are affiliated with an OTP Holder or OTP Firm that provides an ADV of electronic posted executions for the account of a market maker in Penny Pilot issues on NYSE Arca Options (excluding mini options) of at least 90,000 contracts.''). --------------------------------------------------------------------------- The Exchange also proposes to permit ETP Holders, including Market Makers, to alternatively qualify for the Cross Asset Tier 2 credits if they (1) provide liquidity an ADV share per month of 0.40% or more of the CADV, and (2) are affiliated with an OTP Holder or OTP Firm that provides an ADV of electronic posted executions for the account of a market maker in Penny Pilot issues on NYSE Arca Options (again, excluding mini options) of at least 0.65% of total Customer equity and ETF option ADV, as reported by OCC. The Exchange does not propose any other changes to the fees and credits currently applicable to Cross Asset Tier 2. The proposed changes are not otherwise intended to address any other issues, and the Exchange is not aware of any significant problems that market participants would have in complying with the proposed changes. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\8\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. In addition, the Exchange believes the proposal is consistent with the requirement under Section 6(b)(5) \9\ that an exchange have rules that are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(4) and (5). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the proposal to amend Cross Asset Tier 2 to replace the current fixed benchmark needed to be eligible for the tier with a variable benchmark based on a percentage of volume is reasonable because it would make the eligibility requirement consistent with the Exchange's other variable eligibility requirements that also are based on percentage of volume. In addition, the Exchange believes that expanding the basis for the Cross-Asset Tier 2 to include all Customer equity and ETF options ADV would better reflect the correlation between options trading and the underlying securities, which trade at the Exchange, including ETFs. In this respect, the Exchange notes that Equity and ETF Customer volume is a widely followed benchmark of industry volume and is indicative of industry market share.\10\ The Exchange further believes that the proposed amendment is equitable and not unfairly discriminatory because it would be available to all similarly situated ETP Holders and Market Makers on an equal basis and would provide credits that are reasonably related to the value of an exchange's market quality associated with higher volumes. --------------------------------------------------------------------------- \10\ See note 5, supra. --------------------------------------------------------------------------- The Exchange believes that the proposal to amend Cross Asset Tier 2 is reasonable because it provides ETP Holders and Market Makers affiliated with an NYSE Arca Options OTP Holder or OTP Firm with an additional way to qualify for the Cross Asset Tier 2 rebates through equity and option orders. The Exchange believes that the proposed alternative to qualify for the tier utilizing a higher equity volume requirement (0.40%) and a lower options volume requirement (0.65%) is reasonable because the proposal provides firms with greater flexibility to reach volume tiers across asset classes, thereby creating an added incentive for ETP Holders to bring additional order flow to a public market. The Exchange believes that the proposal is equitable and not unfairly discriminatory because all ETP Holders would be subject to the same fee structure and be offered the same alternative to qualifying for the Cross-Asset Tier 2 credit. Moreover, the Cross-Asset Tier 2 credit is available for all ETP Holders to satisfy, except for those ETP Holders that are not affiliated with an NYSE Arca Options OTP Holder or OTP Firm. ETP Holders that are not affiliated with an NYSE Arca Options OTP Holder or OTP Firm are still eligible for fees and credits by means other than the Cross Asset Tier. NASDAQ similarly charges certain fees based on both equity and options volume.\11\ --------------------------------------------------------------------------- \11\ See NASDAQ Rule 7018. --------------------------------------------------------------------------- Further, the Exchange believes that the proposal is reasonable and would continue to directly relate to the activity of an ETP Holder and the activity of an affiliated OTP Holder or OTP Firm on NYSE Arca Options, thereby encouraging increased trading activity on both the NYSE Arca equity and option markets. In this regard, the proposal is designed to bring additional posted order flow to NYSE Arca Options, so as to provide additional opportunities for all OTP Holders and OTP Firms to trade on NYSE Arca Options. Furthermore, similar to the revised Cross Asset Tier, the NYSE Arca Options Fee Schedule includes a credit for OTP Holders and OTP Firms that is based on both equity and options volume. The Exchange believes that deleting the phrase ``(including all account types)'' in current clause (b) of the Fee Schedule consistent with the filing [[Page 6087]] adopting the Cross Asset Tier 2 \12\ removes impediments to and perfects the mechanism of a free and open market by reducing potential confusion that may result from having extraneous material in the Exchange's rulebook, thereby adding transparency and clarity to the Exchange's rules. The Exchange also believes that eliminating this extraneous material would not be inconsistent with the public interest and the protection of investors because investors will not be harmed and in fact would benefit from increased transparency, thereby reducing potential confusion. The Exchange also believes that moving the phrase ``for the account of a market maker'' from the end of current clause (b) to after ``electronic posted executions'' removes impediments to and perfects the mechanism of a free and open market by adding clarity to the Exchange's rules. The Exchange believes its proposal to amend the text of the Fee Schedule to clarify the applicability of the Cross Asset Tier 2 is both reasonable and equitable because ETP Holders and Market Makers would benefit from clear guidance in the rule text describing the manner in which the Exchange would assess Cross Asset Tier 2 fees and rebates. --------------------------------------------------------------------------- \12\ See note 6, supra. --------------------------------------------------------------------------- Finally, the Exchange believes that it is subject to significant competitive forces, as described below in the Exchange's statement regarding the burden on competition. For the foregoing reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\13\ the Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the proposed change would encourage the submission of additional liquidity to a public exchange, thereby promoting price discovery and transparency and enhancing order execution opportunities for ETP Holders and Market Makers. The Exchange believes that this could promote competition between the Exchange and other execution venues, including those that currently offer similar order types and comparable transaction pricing, by encouraging additional orders to be sent to the Exchange for execution. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- Further, the proposal to amend the requirements to qualify for Cross Asset Tier 2 and add another way to qualify for the Cross-Asset Tier 2 credits will not place an undue burden on competition because the tier would remain available for all ETP Holders to satisfy except those ETP Holders that are not affiliated with an NYSE Arca Options OTP Holder or OTP Firm. ETP Holders that are not affiliated with an NYSE Arca Options OTP Holder or OTP Firm are eligible for fees and credits by other means than the Cross Asset Tier 2. ETP Holders would be subject to the same fee structure and be offered the same alternatives to qualifying for the Cross-Asset Tier 2 credit. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and credits to remain competitive with other exchanges. Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees and rebates to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees and credits in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. As a result of all of these considerations, the Exchange does not believe that the proposed changes will impair the ability of ETP Holders or competing order execution venues to maintain their competitive standing in the financial markets. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) \14\ of the Act and subparagraph (f)(2) of Rule 19b-4 \15\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-NYSEARCA-2016-22 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-NYSEARCA-2016-22. 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 [[Page 6088]] 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-NYSEARCA-2016-22 and should be submitted on or before February 25, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-02063 Filed 2-3-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Notices 6085
investment company. Applicant has Applicant’s Address: 155 West 19th set forth in sections A, B, and C below,
transferred its assets to GAI Corbin Street, New York, New York 10011. of the most significant parts of such
Multi-Strategy Fund, LLC and, on For the Commission, by the Division of statements.
December 31, 2015, made a final Investment Management, pursuant to A. Self-Regulatory Organization’s
distribution to its shareholders based on delegated authority.
Statement of the Purpose of, and
net asset value. Expenses of $150,231 Robert W. Errett, Statutory Basis for, the Proposed Rule
incurred in connection with the Deputy Secretary. Change
reorganization were paid by applicant [FR Doc. 2016–02064 Filed 2–3–16; 8:45 am]
and the acquiring fund. 1. Purpose
BILLING CODE 8011–01–P
Filing Dates: The application was The Exchange proposes to change the
filed on January 6, 2016, and amended fees and credits for Cross Asset Tier 2
on January 7, 2016. SECURITIES AND EXCHANGE in the Fee Schedule. Specifically, for
Applicant’s Address: 401 South Tryon COMMISSION securities with a per share price $1.00
Street, Charlotte, North Carolina 28202. or above, the Exchange proposes to: (1)
[Release No. 34–77000; File No. SR–
Federated Enhanced Treasury Income NYSEARCA–2016–22] Replace the numeric benchmark needed
Fund [File No. 811–22098] to be eligible for the tier with a
Self-Regulatory Organizations; NYSE benchmark based on a percentage of
Summary: Applicant, a closed-end options contract volume, and (2)
Arca, Inc.; Notice of Filing and
investment company, seeks an order provide a second way to qualify for the
Immediate Effectiveness of Proposed
declaring that it has ceased to be an Cross Asset Tier 2 credits for orders that
Rule Change Amending the NYSE Arca
investment company. Applicant has provide liquidity to the Exchange. The
Equities Schedule of Fees and
transferred its assets to Federated Exchange proposes to implement the fee
Charges for Exchange Services
Enhanced Treasury Income Fund, a changes effective January 28, 2016.4
portfolio of Federated Income Securities January 29, 2016. Currently, Cross Asset Tier 2 fees and
Trust, and, on October 23, 2015, made Pursuant to Section 19(b)(1) 1 of the credits apply to ETP Holders and
a final distribution to its shareholders Securities Exchange Act of 1934 Market Makers that (a) provide liquidity
based on net asset value. Expenses of (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 an average daily volume share per
$161,790 incurred in connection with notice is hereby given that, on January month of 0.30% or more of the US
the reorganization were paid by 28, 2016, NYSE Arca, Inc. (the Consolidated Average Daily Volume
applicant and the acquiring fund. ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with (‘‘CADV’’), and (b) are affiliated with an
Filing Dates: The application was the Securities and Exchange OTP Holder or OTP Firm that provides
filed on January 21, 2016. Commission (‘‘Commission’’) the an ADV of electronic posted executions
Applicant’s Address: 4000 Ericsson proposed rule change as described in for the account of a market maker in
Drive, Warrendale, Pennsylvania 15086. Items I, II, and III below, which Items Penny Pilot issues on NYSE Arca
Nuveen New York Dividend Advantage have been prepared by the self- Options (excluding mini options) of at
Municipal Fund 2 [811–10253] regulatory organization. The least 90,000 contracts. Such ETP
Commission is publishing this notice to Holders and Market Makers receive a
Summary: Applicant, a closed-end solicit comments on the proposed rule credit of $0.0031 per share for orders
investment company, seeks an order change from interested persons. that provide liquidity to the order book
declaring that it has ceased to be an in Tape A Securities; a credit of $0.0030
investment company. The applicant has I. Self-Regulatory Organization’s
Statement of the Terms of Substance of per share for providing liquidity to the
transferred its assets to Nuveen New order book and a fee of $0.0028 per
York Dividend Advantage Municipal the Proposed Rule Change
share for taking liquidity from the order
Fund and, on May 26, 2015, made a The Exchange proposes to amend the book in Tape B Securities; and a credit
final distribution to its shareholders NYSE Arca Equities Schedule of Fees of $0.0033 per share for providing
based on net asset value. Expenses of and Charges for Exchange Services. The liquidity to the order book and a fee of
$620,000 incurred in connection with proposed rule change is available on the $0.0029 per share for taking liquidity
the reorganization were paid by Exchange’s Web site at www.nyse.com, from the order book in Tape C
applicant and $285,000 were paid by at the principal office of the Exchange, Securities.
the acquiring fund. and at the Commission’s Public The Exchange proposes to replace the
Filing Dates: The application was Reference Room. current fixed 90,000 contract
filed on January 22, 2016. requirement with a variable requirement
Applicant’s Address: 333 West II. Self-Regulatory Organization’s
Statement of the Purpose of, and of at least 0.75% of total Customer
Wacker Drive, Chicago, Illinois 60606. equity and exchange-traded fund
Statutory Basis for, the Proposed Rule
EGA Frontier Diversified Core Fund Change (‘‘ETF’’) option ADV, as reported by the
[811–22782] Options Clearing Corporation (‘‘OCC’’).5
In its filing with the Commission, the
Summary: Applicant, a closed-end self-regulatory organization included 4 The Exchange originally filed to amend the Fee
investment company, seeks an order statements concerning the purpose of, Schedule on January 4, 2016 (SR–NYSEArca–2016–
declaring that it has ceased to be an and basis for, the proposed rule change 05) and withdrew such filing on January 14, 2016.
investment company. On October 16, The Exchange subsequently filed to amend the Fee
asabaliauskas on DSK5VPTVN1PROD with NOTICES
and discussed any comments it received Schedule on January 14, 2016 (SR–NYSEArca–
2015, applicant made a liquidating on the proposed rule change. The text 2016–12) and withdrew such filing on January 28,
distribution to its shareholders, based of those statements may be examined at 2016.
on net asset value. Expenses of $14,813 the places specified in Item IV below. 5 The OCC provides volume information in two
incurred in connection with the The Exchange has prepared summaries, product categories: Equity and ETF volume and
liquidation were paid by the applicant’s index volume, and the information can be filtered
to show only Customer, firm, or market maker
investment adviser. 1 15 U.S.C. 78s(b)(1). account type. Equity and ETF Customer volume
Filing Dates: The application was 2 15 U.S.C. 78a. numbers are available directly from the OCC each
filed on January 27, 2016. 3 17 CFR 240.19b–4. Continued
VerDate Sep<11>2014 17:21 Feb 03, 2016 Jkt 238001 PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 E:\FR\FM\04FEN1.SGM 04FEN1](https://thefederalregister.org/doc/81_FR_6108/page/1.svg)
![6088 Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Notices
available for Web site viewing and 10b–5, Exchange Act Section 15(c)(1), solicit comments on the proposed rule
printing in the Commission’s Public and Advisers Act Sections 206(1) and change from interested persons.
Reference Room, 100 F Street NE., (2) in connection with these
I. Self-Regulatory Organization’s
Washington, DC 20549, on official misrepresentations and omissions.
Statement of the Terms of Substance of
business days between the hours of Based on her findings, the law judge the Proposed Rule Change
10:00 a.m. and 3:00 p.m. Copies of the issued a cease-and-desist order against
filing also will be available for Young; barred him from associating The MSRB filed with the Commission
inspection and copying at the principal with a broker, dealer, investment a proposed rule change consisting of
office of the Exchange. All comments adviser, municipal securities dealer, proposed amendments to Rule A–3, on
received will be posted without change; municipal advisor, transfer agent, or membership on the Board, to lengthen
the Commission does not edit personal nationally recognized statistical rating the term of Board member service,
identifying information from organization; and prohibited him from change the number and size of Board
submissions. You should submit only serving or acting in certain capacities classes, limit the number of consecutive
information that you wish to make with respect to an investment company. terms a Board member can serve,
available publicly. All submissions The law judge also ordered Young to eliminate the requirement that there be
should refer to File Number SR– pay $591,992.46 in disgorgement, with at least one municipal advisor
NYSEARCA–2016–22 and should be prejudgment interest, and assessed a representative per class that is not
submitted on or before February 25, third-tier civil penalty of $260,000. associated with a dealer (‘‘non-dealer
2016. municipal advisor’’), delete an obsolete
Young appealed the law judge’s
For the Commission, by the Division of
findings of violation and the sanctions transition provision and provide a
Trading and Markets, pursuant to delegated technical update to the name of a Board
authority.17 imposed. The issues likely to be
considered at oral argument include, committee (collectively, the ‘‘proposed
Robert W. Errett, rule change’’). The MSRB requests that
among other things, whether Young
Deputy Secretary. the proposed rule change be effective on
violated the antifraud provisions as
[FR Doc. 2016–02063 Filed 2–3–16; 8:45 am]
alleged and, if so, the extent to which the date of Commission approval.
BILLING CODE 8011–01–P
he should be sanctioned for those The text of the proposed rule change
violations. is available on the MSRB’s Web site at
www.msrb.org/Rules-and-
SECURITIES AND EXCHANGE For further information, please
Interpretations/SEC-Filings/2016-
COMMISSION contact the Office of the Secretary at
Filings.aspx, at the MSRB’s principal
(202) 551–5400.
office, and at the Commission’s Public
Sunshine Act Meeting Dated: February 1, 2016. Reference Room.
Notice is hereby given, pursuant to Robert W. Errett,
II. Self-Regulatory Organization’s
the provisions of the Government in the Deputy Secretary.
Statement of the Purpose of, and
Sunshine Act, Public Law 94–409, that [FR Doc. 2016–02221 Filed 2–2–16; 11:15 am]
Statutory Basis for, the Proposed Rule
the Securities and Exchange BILLING CODE 8011–01–P
Change
Commission will hold an Open Meeting
on Monday, February 8, 2016, at 1:00 In its filing with the Commission, the
p.m., in the Auditorium (L–002) at the SECURITIES AND EXCHANGE MSRB included statements concerning
Commission’s headquarters building, to COMMISSION the purpose of and basis for the
hear oral argument in an appeal from an proposed rule change and discussed any
initial decision of an administrative law [Release No. 34–76999; File No. SR–MSRB– comments it received on the proposed
judge by the Respondent, Bernerd 2016–01] rule change. The text of these statements
Young (‘‘Young’’), former chief may be examined at the places specified
compliance officer of Stanford Group Self-Regulatory Organizations; in Item IV below. The MSRB has
Company (‘‘SGC’’). The law judge found Municipal Securities Rulemaking prepared summaries, set forth in
that Young was a cause of violations by Board; Notice of Filing of a Proposed Sections A, B, and C below, of the most
SGC of the antifraud provisions of Rule Change Consisting of Proposed significant aspects of such statements.
Section 206(2) of the Investment Amendments to Rule A–3, on
Advisers Act of 1940 through false and Membership on the Board A. Self-Regulatory Organization’s
misleading statements and omissions in Statement of the Purpose of, and
marketing materials for ‘‘certificates of January 29, 2016. Statutory Basis for, the Proposed Rule
deposit’’ issued by Stanford Pursuant to Section 19(b)(1) of the Change
International Bank Ltd., an affiliate of Securities Exchange Act of 1934 (the 1. Purpose
SGC. In addition, the law judge found ‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule
that Young violated Section 17(a) of the 19b–4 thereunder,2 notice is hereby The MSRB is the self-regulatory
Securities Act of 1933 and Section 10(b) given that on January 15, 2016, the organization (‘‘SRO’’) created by
of the Securities Exchange Act of 1934 Municipal Securities Rulemaking Board Congress to establish regulation for the
and Rule 10b–5 thereunder in (the ‘‘MSRB’’ or ‘‘Board’’) filed with the $3.7 trillion municipal securities
connection with statements designed to Securities and Exchange Commission market, including rules governing the
asabaliauskas on DSK5VPTVN1PROD with NOTICES
‘‘attack’’ concerns raised about the (the ‘‘SEC’’ or ‘‘Commission’’) the municipal securities activities of dealers
certificates of deposit and to ‘‘forestall proposed rule change as described in and the municipal advisory activities of
redemptions and continue sales.’’ The Items I, II, and III below, which Items municipal advisors. The MSRB’s
law judge further found that Young have been prepared by the MSRB. The mission is to protect municipal entities,
aided and abetted and caused violations Commission is publishing this notice to obligated persons, investors and the
of Exchange Act Section 10(b) and Rule public interest, and to promote a fair
1 15 U.S.C. 78s(b)(i). and efficient municipal securities
17 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. market. The Board is comprised of 21
VerDate Sep<11>2014 17:21 Feb 03, 2016 Jkt 238001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 E:\FR\FM\04FEN1.SGM 04FEN1](https://thefederalregister.org/doc/81_FR_6108/page/4.svg)
Document Created: 2016-02-04 00:31:05
Document Modified: 2016-02-04 00:31:05
| 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 6085 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR