81 FR 70726 - Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend a Current Billing Practice With Respect to Billing Disputes
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 198 (October 13, 2016)
Federal Register Volume 81, Issue 198 (October 13, 2016)
| Page Range | 70726-70728 | |
| FR Document | 2016-24696 |
[Federal Register Volume 81, Number 198 (Thursday, October 13, 2016)] [Notices] [Pages 70726-70728] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-24696] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79059; File No. SR-ISEMercury-2016-17] Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend a Current Billing Practice With Respect to Billing Disputes October 6, 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 September 22, 2016, ISE Mercury, LLC (``ISE Mercury'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend a current billing practice with respect to billing disputes. The text of the proposed rule change is available on the Exchange's Web site at www.ise.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 its Schedule of Fees to change the timeframe within which Members must dispute billing. Today, ISE Mercury Members must submit all disputes no later than ninety calendar days after receipt of an Exchange invoice. After ninety calendar days, all fees assessed by the Exchange are considered final. The Exchange is proposing to amend the policy from ninety to sixty days to submit a dispute. Today, the NASDAQ PHLX LLC (``Phlx''), NASDAQ BX, Inc. (``BX'') and The NASDAQ Options Market LLC (``NOM'') all have a sixty day timeframe within which to dispute option invoices.\3\ --------------------------------------------------------------------------- \3\ See Phlx's Pricing Schedule. See also NOM and BX Rules at Chapter XV, Section 7. --------------------------------------------------------------------------- The Exchange provides Members with both daily and monthly fee reports and thus believes Members should be aware of any potential billing errors within sixty calendar days of receiving an invoice. Requiring that Members dispute an invoice within this time period will encourage them to promptly review their invoices so that any disputed charges can be addressed in a timely manner while the information and data underlying those charges (e.g. applicable fees and order information) is still easily and readily available. This [[Page 70727]] practice will avoid issues that may arise when Members do not dispute an invoice in a timely manner, and will conserve Exchange resources that would have to be expended to resolve untimely billing disputes. The Exchange notes that this type of provision is common among many other exchanges, which require that Members dispute invoices within sixty days. Billing disputes must continue to be submitted to the Exchange in writing,\4\ and must be accompanied by supporting documentation. The Exchange believes that this requirement, which is also similar to requirements of other exchanges,\5\ will further streamline the billing dispute process. --------------------------------------------------------------------------- \4\ The Exchange invoice specifies contact information for billing inquiries. \5\ See note 3 above. --------------------------------------------------------------------------- The Exchange believes that this practice will conserve Exchange resources which are expended when untimely billing disputes require staff to research applicable fees and order information beyond two months after the transaction occurred. Further, this proposal would provide a cost savings to the Exchange in that it would alleviate administrative processes related to the untimely review of billing disputes which divert staff resources away from the Exchange's regulatory and business purposes. The sixty days would first apply to invoices related to transactional billing in November 2016 and would apply thereafter.\6\ The Exchange proposes to apply the billing policy to all charges reflected in its Schedule of Fees. --------------------------------------------------------------------------- \6\ This proposal would not apply to invoices related to October 2016 billing. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \7\ in general, and furthers the objectives of Section 6(b)(5) of the Act \8\ in particular, in that it is designed to promote just and equitable principles of trade, 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, by providing a uniform practice for disputing fees. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the requirement that all billing disputes must be submitted in writing, and with supporting documentation, within sixty calendar days from receipt of the invoice is reasonable in the public interest because the Exchange provides ample tools to properly and swiftly monitor and account for various charges incurred in a given month. Moreover, the proposed billing dispute language, which will lower the Exchange's administrative burden, is substantially similar to billing dispute language adopted by other exchanges.\9\ Also, the Exchange's administrative costs would be lowered as a result of this policy because staff resources would not be diverted to review untimely requests regarding billing. --------------------------------------------------------------------------- \9\ See note 3 above. --------------------------------------------------------------------------- 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 billing policy would apply uniformly to all ISE Mercury Members. The policy is similar to rules adopted by other options exchanges.\10\ --------------------------------------------------------------------------- \10\ Id. --------------------------------------------------------------------------- Further, this proposal would provide a cost savings to the Exchange in that it would alleviate administrative processes related to the untimely review of billing disputes which divert staff resources away from the Exchange's regulatory and business purposes. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \11\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A)(iii). \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-ISEMercury-2016-17 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-ISEMercury-2016-17. 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-ISEMercury-2016-17 and should be [[Page 70728]] submitted on or before November 3, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-24696 Filed 10-12-16; 8:45 am] BILLING CODE 8011-01-P
![70726 Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Notices
investors and the public interest, the Commission, and all written I. Self-Regulatory Organization’s
proposed rule change has become communications relating to the Statement of the Terms of Substance of
effective pursuant to Section 19(b)(3)(A) proposed rule change between the the Proposed Rule Change
of the Act and Rule 19b–4(f)(6)(iii) Commission and any person, other than The Exchange proposes to amend a
thereunder. those that may be withheld from the current billing practice with respect to
A proposed rule change filed under public in accordance with the billing disputes.
Rule 19b–4(f)(6) 26 normally does not provisions of 5 U.S.C. 552, will be The text of the proposed rule change
become operative prior to 30 days after available for Web site viewing and is available on the Exchange’s Web site
the date of the filing. However, pursuant printing in the Commission’s Public at www.ise.com, at the principal office
to Rule 19b4(f)(6)(iii),27 the Commission Reference Room, 100 F Street NE., of the Exchange, and at the
may designate a shorter time if such Washington, DC 20549 on official Commission’s Public Reference Room.
action is consistent with the protection business days between the hours of
of investors and the public interest. 10:00 a.m. and 3:00 p.m. Copies of the II. Self-Regulatory Organization’s
At any time within 60 days of the filing also will be available for Statement of the Purpose of, and
filing of such proposed rule change, the inspection and copying at the principal Statutory Basis for, the Proposed Rule
Commission summarily may office of the Exchange. All comments Change
temporarily suspend such rule change if received will be posted without change; In its filing with the Commission, the
it appears to the Commission that such the Commission does not edit personal Exchange included statements
action is necessary or appropriate in the identifying information from concerning the purpose of and basis for
public interest, for the protection of submissions. You should submit only the proposed rule change and discussed
investors, or otherwise in furtherance of information that you wish to make any comments it received on the
the purposes of the Act. If the available publicly. All submissions proposed rule change. The text of these
Commission takes such action, the should refer to File Number SR–NYSE– statements may be examined at the
Commission shall institute proceedings 2016–64 and should be submitted on or places specified in Item IV below. The
under Section 19(b)(2)(B) 28 of the Act to before November 3, 2016. Exchange has prepared summaries, set
determine whether the proposed rule forth in sections A, B, and C below, of
change should be approved or For the Commission, by the Division of
Trading and Markets, pursuant to delegated
the most significant aspects of such
disapproved. statements.
authority.29
IV. Solicitation of Comments Robert W. Errett, A. Self-Regulatory Organization’s
Interested persons are invited to Deputy Secretary. Statement of the Purpose of, and
submit written data, views, and [FR Doc. 2016–24775 Filed 10–12–16; 8:45 am]
Statutory Basis for, the Proposed Rule
arguments concerning the foregoing, Change
BILLING CODE 8011–01–P
including whether the proposed rule
1. Purpose
change is consistent with the Act.
Comments may be submitted by any of The Exchange proposes to amend its
SECURITIES AND EXCHANGE Schedule of Fees to change the
the following methods: COMMISSION timeframe within which Members must
Electronic Comments dispute billing. Today, ISE Mercury
• Use the Commission’s Internet [Release No. 34–79059; File No. SR– Members must submit all disputes no
comment form (http://www.sec.gov/ ISEMercury–2016–17] later than ninety calendar days after
rules/sro.shtml); or receipt of an Exchange invoice. After
• Send an email to rule-comments@ Self-Regulatory Organizations; ISE ninety calendar days, all fees assessed
sec.gov. Please include File Number SR– Mercury, LLC; Notice of Filing and by the Exchange are considered final.
NYSE–2016–64 on the subject line. Immediate Effectiveness of Proposed The Exchange is proposing to amend the
Rule Change To Amend a Current policy from ninety to sixty days to
Paper Comments Billing Practice With Respect to Billing submit a dispute. Today, the NASDAQ
• Send paper comments in triplicate Disputes PHLX LLC (‘‘Phlx’’), NASDAQ BX, Inc.
to Brent J. Fields, Secretary, Securities (‘‘BX’’) and The NASDAQ Options
October 6, 2016.
and Exchange Commission, 100 F Street Market LLC (‘‘NOM’’) all have a sixty
NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the day timeframe within which to dispute
All submissions should refer to File Securities Exchange Act of 1934 option invoices.3
Number SR–NYSE–2016–64. This file (‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Exchange provides Members with
number should be included on the notice is hereby given that on both daily and monthly fee reports and
subject line if email is used. To help the September 22, 2016, ISE Mercury, LLC thus believes Members should be aware
Commission process and review your (‘‘ISE Mercury’’ or ‘‘Exchange’’) filed of any potential billing errors within
comments more efficiently, please use with the Securities and Exchange sixty calendar days of receiving an
only one method. The Commission will Commission (‘‘SEC’’ or ‘‘Commission’’) invoice. Requiring that Members
post all comments on the Commission’s the proposed rule change as described dispute an invoice within this time
Internet Web site (http://www.sec.gov/ in Items I, II, and III, below, which Items period will encourage them to promptly
rules/sro.shtml). Copies of the have been prepared by the Exchange. review their invoices so that any
submission, all subsequent The Commission is publishing this disputed charges can be addressed in a
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amendments, all written statements notice to solicit comments on the timely manner while the information
with respect to the proposed rule proposed rule change from interested and data underlying those charges (e.g.
change that are filed with the persons. applicable fees and order information) is
still easily and readily available. This
26 17 CFR 240.19b–4(f)(6). 29 17 CFR 200.30–3(a)(12).
27 17 CFR 240.19b–4(f)(6)(iii). 1 15 U.S.C. 78s(b)(1). 3 See Phlx’s Pricing Schedule. See also NOM and
28 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4. BX Rules at Chapter XV, Section 7.
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![70728 Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Notices
submitted on or before November 3, dated March 31, 2010; 5 and the the Act, or by Commission or SRO
2016. agreement between FINRA and EDGA rules.12 When an SRO has been named
For the Commission, by the Division of dated March 31, 2010.6 as a common member’s DEA, all other
Trading and Markets, pursuant to delegated SROs to which the common member
I. Introduction
authority.13 belongs are relieved of the responsibility
Brent J. Fields, Section 19(g)(1) of the Securities to examine the firm for compliance with
Secretary.
Exchange Act of 1934 (‘‘Act’’),7 among the applicable financial responsibility
other things, requires every self- rules. On its face, Rule 17d–1 deals only
[FR Doc. 2016–24696 Filed 10–12–16; 8:45 am]
regulatory organization (‘‘SRO’’) with an SRO’s obligations to enforce
BILLING CODE 8011–01–P
registered as either a national securities member compliance with financial
exchange or national securities responsibility requirements. Rule 17d–
association to examine for, and enforce does not relieve an SRO from its
SECURITIES AND EXCHANGE
compliance by, its members and persons obligation to examine a common
COMMISSION
associated with its members with the member for compliance with its own
[Release No. 34–79057; File No. 4–705] Act, the rules and regulations rules and provisions of the federal
thereunder, and the SRO’s own rules, securities laws governing matters other
Program for Allocation of Regulatory unless the SRO is relieved of this
Responsibilities Pursuant to Rule 17d– than financial responsibility, including
responsibility pursuant to Section 17(d) sales practices and trading activities and
2; Notice of Filing and Order or Section 19(g)(2) of the Act.8 Without
Approving and Declaring Effective a practices.
this relief, the statutory obligation of To address regulatory duplication in
Proposed Plan for the Allocation of each individual SRO could result in a
Regulatory Responsibilities Between these and other areas, the Commission
pattern of multiple examinations of adopted Rule 17d–2 under the Act.13
the Financial Industry Regulatory broker-dealers that maintain
Authority, Inc., Bats BZX Exchange, Rule 17d–2 permits SROs to propose
memberships in more than one SRO joint plans for the allocation of
Inc., Bats BYX Exchange, Inc., Bats (‘‘common members’’). Such regulatory
EDGA Exchange, Inc., and Bats EDGX regulatory responsibilities with respect
duplication would add unnecessary
Exchange, Inc. to their common members. Under
expenses for common members and
paragraph (c) of Rule 17d–2, the
their SROs.
October 6, 2016.
Section 17(d)(1) of the Act 9 was Commission may declare such a plan
Notice is hereby given that the intended, in part, to eliminate effective if, after providing for
Securities and Exchange Commission unnecessary multiple examinations and appropriate notice and comment, it
(‘‘Commission’’) has issued an Order, regulatory duplication.10 With respect determines that the plan is necessary or
pursuant to Section 17(d) of the to a common member, Section 17(d)(1) appropriate in the public interest and
Securities Exchange Act of 1934 authorizes the Commission, by rule or for the protection of investors; to foster
(‘‘Act’’),1 approving and declaring order, to relieve an SRO of the cooperation and coordination among the
effective a plan for allocating regulatory responsibility to receive regulatory SROs; to remove impediments to, and
responsibility (‘‘Plan’’) filed on reports, to examine for and enforce foster the development of, a national
September 30, 2016, pursuant to Rule compliance with applicable statutes, market system and a national clearance
17d–2 of the Act,2 by the Financial rules, and regulations, or to perform and settlement system; and is in
Industry Regulatory Authority, Inc. other specified regulatory functions. conformity with the factors set forth in
(‘‘FINRA’’), Bats BZX Exchange, Inc. To implement Section 17(d)(1), the Section 17(d) of the Act. Commission
(‘‘BZX’’), Bats BYX Exchange, Inc. Commission adopted two rules: Rule approval of a plan filed pursuant to Rule
(‘‘BYX’’), Bats EDGA Exchange, Inc. 17d–1 and Rule 17d–2 under the Act.11 17d–2 relieves an SRO of those
(‘‘EDGA’’), and Bats EDGX Exchange, Rule 17d–1 authorizes the Commission regulatory responsibilities allocated by
Inc. (‘‘EDGX’’) (each, a ‘‘Participating to name a single SRO as the designated the plan to another SRO.
Organization,’’ or ‘‘Bats Exchange,’’ and examining authority (‘‘DEA’’) to II. Proposed Plan
together, the ‘‘Participating examine common members for
Organizations,’’ ‘‘the Bats Exchanges,’’ compliance with the financial The proposed 17d–2 Plan is intended
or the ‘‘Parties’’). The Plan replaces and responsibility requirements imposed by to reduce regulatory duplication for
supersedes the agreement between firms that are common members of a
FINRA and BZX dated August 25, 5 See Securities Exchange Act Release No. 61861 Bats Exchange and FINRA.14 Pursuant
2008; 3 the agreement between FINRA (April 7, 2010), 75 FR 18920 (April 13, 2010) (File to the proposed 17d–2 Plan, FINRA
and BYX dated September 3, 2010; 4 the No. 4–598) (notice of filing of proposed plan). See would assume certain examination and
also Securities Exchange Act Release No. 62079
agreement between FINRA and EDGX (May 11, 2010), 75 FR 28080 (May 19, 2010) (File enforcement responsibilities for
No. 4–598) (order approving proposed plan). common members with respect to
13 17 CFR 200.30–3(a)(12). 6 See Securities Exchange Act Release No. 61860 certain applicable laws, rules, and
1 15 U.S.C. 78q(d). (April 7, 2010), 75 FR 18915 (April 13, 2010) (File regulations. The Plan replaces and
2 17 CFR 240.17d–2. No. 4–597) (notice of filing of proposed plan). See
also Securities Exchange Act Release No. 62078
supersedes the individual agreements
3 See Securities Exchange Act Release No. 58563
(May 11, 2010), 75 FR 28078 (May 19, 2010) (File between FINRA and each Bats
(September 17, 2008), 73 FR 55180 (September 24,
2008) (File No. 4–569) (notice of filing of proposed No. 4–597) (order approving proposed plan). Exchange 15 and is intended to reduce
7 15 U.S.C. 78s(g)(1).
plan). See also Securities Exchange Act Release No. the administrative burden associated
8 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2),
58818 (October 20, 2008), 73 FR 63752 (October 27, with maintaining four separate plans.
2008) (File No. 4–569) (order approving proposed respectively.
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9 15 U.S.C. 78q(d)(1).
plan).
10 See Securities Act Amendments of 1975, 12 See Securities Exchange Act Release No. 12352
4 See Securities Exchange Act Release No. 62935
(September 17, 2010), 75 FR 57998 (September 23, Report of the Senate Committee on Banking, (April 20, 1976), 41 FR 18808 (May 7, 1976).
13 See Securities Exchange Act Release No. 12935
2010) (File No. 4–613) (notice of filing of proposed Housing, and Urban Affairs to Accompany S. 249,
plan). See also Securities Exchange Act Release No. S. Rep. No. 94–75, 94th Cong., 1st Session 32 (October 28, 1976), 41 FR 49091 (November 8,
63102 (October 14, 2010), 75 FR 64765 (October 20, (1975). 1976).
14 See Paragraph 1(c) of the proposed 17d–2 Plan.
2010) (File No. 4–613) (order approving proposed 11 17 CFR 240.17d–1 and 17 CFR 240.17d–2,
plan). respectively. 15 See supra notes 3–6.
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Document Created: 2016-10-13 00:53:12
Document Modified: 2016-10-13 00:53:12
| 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 70726 |
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