81 FR 73186 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change Related to the Payment of a Credit by Execution Access, LLC Based on Volume Thresholds Met on the NASDAQ Options Market

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 205 (October 24, 2016)

Page Range		73186-73187
FR Document		2016-25615

Federal Register, Volume 81 Issue 205 (Monday, October 24, 2016)

[Federal Register Volume 81, Number 205 (Monday, October 24, 2016)]
[Notices]
[Pages 73186-73187]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-25615]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79118; File No. SR-NASDAQ-2016-121]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Designation of a Longer Period for Commission Action on 
Proposed Rule Change Related to the Payment of a Credit by Execution 
Access, LLC Based on Volume Thresholds Met on the NASDAQ Options Market

October 19, 2016.
    On August 29, 2016, The Nasdaq Stock Market LLC (``Exchange'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change 
related to the payment of a credit by Execution Access, LLC that would 
be based on volume thresholds met on the NASDAQ Options Market LLC. The 
proposed rule change was published for comment in the Federal Register 
on September 8, 2016.\3\ The Commission has received no comment letters 
on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 78749 (September 1, 
2016), 81 FR 62212.
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    Section 19(b)(2) of the Act \4\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day after publication of the notice for this proposed rule change 
is October 23,

[[Page 73187]]

2016. The Commission is extending this 45-day time period.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
it has sufficient time to consider the proposed rule change. 
Accordingly, pursuant to Section 19(b)(2) of the Act,\5\ the Commission 
designates December 7, 2016, as the date by which the Commission shall 
either approve or disapprove or institute proceedings to determine 
whether to disapprove the proposed rule change (File No. SR-NASDAQ-
2016-121).
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    \5\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(31).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-25615 Filed 10-21-16; 8:45 am]
 BILLING CODE 8011-01-P

73186 Federal Register / Vol. 81, No. 205 / Monday, October 24, 2016 / Notices

Commission may designate a shorter Commission shall institute proceedings submitted on or before November 14,
time if such action is consistent with the under Section 19(b)(2)(B) 22 of the Act to 2016.
protection of investors and the public determine whether the proposed rule For the Commission, by the Division of
interest. The Exchange has asked the change should be approved or Trading and Markets, pursuant to delegated
Commission to waive the 30-day disapproved. authority.23
operative delay so that the proposal may
IV. Solicitation of Comments
become operative immediately upon Robert W. Errett,
filing. The Exchange has stated that it is Interested persons are invited to Deputy Secretary.
requesting this waiver because the submit written data, views, and
[FR Doc. 2016–25573 Filed 10–21–16; 8:45 am]
proposed rule change is based on the arguments concerning the foregoing,
BILLING CODE 8011–01–P
approved rules of NYSE and would be including whether the proposed rule
applicable to member organizations that change is consistent with the Act.
are also NYSE member organizations, Comments may be submitted by any of
SECURITIES AND EXCHANGE
trade on the same physical facilities as the following methods:
COMMISSION
NYSE, and are subject to trading rules Electronic Comments
based on the rules of NYSE. The
Exchange further stated that the • Use the Commission’s Internet [Release No. 34–79118; File No. SR–
comment form (http://www.sec.gov/ NASDAQ–2016–121]
proposed rule change would permit the
Exchange to implement changes to its rules/sro.shtml); or
Self-Regulatory Organizations; The
rules at the same time that the approved • Send an email to rule-comments@ Nasdaq Stock Market LLC; Notice of
changes are implemented by NYSE. sec.gov. Please include File Number SR– Designation of a Longer Period for
The Commission believes that NYSEMKT–2016–92 on the subject line. Commission Action on Proposed Rule
waiving the 30-day operative delay is Change Related to the Payment of a
Paper Comments
consistent with the protection of Credit by Execution Access, LLC
investors and the public interest • Send paper comments in triplicate
Based on Volume Thresholds Met on
because this waiver will enable the to Brent J. Fields, Secretary, Securities
the NASDAQ Options Market
Exchange to maintain consistent and Exchange Commission, 100 F Street
definitions of Trading Floor and Floor NE., Washington, DC 20549–1090. October 19, 2016.
between the Exchange and NYSE, which All submissions should refer to File On August 29, 2016, The Nasdaq
utilize the same physical location and Number SR–NYSEMKT–2016–92. This Stock Market LLC (‘‘Exchange’’) filed
have their member organizations in file number should be included on the with the Securities and Exchange
common. Waiver could thus avoid subject line if email is used. To help the Commission (‘‘Commission’’), pursuant
confusion that might arise from Commission process and review your to Section 19(b)(1) of the Securities
excluding the telephone booths comments more efficiently, please use Exchange Act of 1934 (‘‘Act’’) 1 and Rule
described herein from the definition of only one method. The Commission will 19b–4 thereunder,2 a proposed rule
Trading Floor for purposes of NYSE but post all comments on the Commission’s change related to the payment of a
not for the Exchange. The Commission Internet Web site (http://www.sec.gov/ credit by Execution Access, LLC that
notes that the Exchange, in adopting rules/sro.shtml). Copies of the would be based on volume thresholds
this proposed rule change, will be held submission, all subsequent met on the NASDAQ Options Market
to the same standards with respect to amendments, all written statements LLC. The proposed rule change was
conducting surveillance for the misuse with respect to the proposed rule published for comment in the Federal
of material non-public information and change that are filed with the Register on September 8, 2016.3 The
monitoring for compliance with Commission, and all written Commission has received no comment
Exchange rules within the telephone communications relating to the letters on the proposal.
booths and on the Trading Floor that the proposed rule change between the
Commission based its findings on when Commission and any person, other than Section 19(b)(2) of the Act 4 provides
approving NYSE’s version of the those that may be withheld from the that, within 45 days of the publication
proposed rule change. For the reasons public in accordance with the of notice of the filing of a proposed rule
described above, consistent with the provisions of 5 U.S.C. 552, will be change, or within such longer period up
protection of investors and the public available for Web site viewing and to 90 days as the Commission may
interest, the Commission hereby waives printing in the Commission’s Public designate if it finds such longer period
the 30-day operative delay requirement Reference Room, 100 F Street NE., to be appropriate and publishes its
and designates the proposed rule change Washington, DC 20549 on official reasons for so finding or as to which the
as operative upon filing.21 business days between the hours of self-regulatory organization consents,
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of such the Commission shall either approve the
filing of such proposed rule change, the filing also will be available for proposed rule change, disapprove the
Commission summarily may inspection and copying at the principal proposed rule change, or institute
temporarily suspend such rule change if office of the Exchange. All comments proceedings to determine whether the
it appears to the Commission that such received will be posted without change; proposed rule change should be
action is necessary or appropriate in the the Commission does not edit personal disapproved. The 45th day after
public interest, for the protection of identifying information from publication of the notice for this
sradovich on DSK3GMQ082PROD with NOTICES

investors, or otherwise in furtherance of submissions. You should submit only proposed rule change is October 23,
the purposes of the Act. If the information that you wish to make
Commission takes such action, the available publicly. All submissions
23 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
should refer to File Number SR– 2 17 CFR 240.19b–4.
21 For purposes only of waiving the 30-day
NYSEMKT–2016–92, and should be 3 See Securities Exchange Act Release No. 78749
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition, (September 1, 2016), 81 FR 62212.
and capital formation. See 15 U.S.C. 78c(f). 22 15 U.S.C. 78s(b)(2)(B). 4 15 U.S.C. 78s(b)(2).

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Federal Register / Vol. 81, No. 205 / Monday, October 24, 2016 / Notices 73187

2016. The Commission is extending this assets, fees, fines and penalties, and In addition, ‘‘Exchange’’ is not a
45-day time period. make additional, non-substantive edits. defined term in the Operating
The Commission finds that it is The proposed rule change is available Agreement, which defines the Exchange
appropriate to designate a longer period on the Exchange’s Web site at as the ‘‘Company.’’ Accordingly, the
within which to take action on the www.nyse.com, at the principal office of Exchange proposes to replace
proposed rule change so that it has the Exchange, and at the Commission’s ‘‘Exchange’s regulatory staff’’ with
sufficient time to consider the proposed Public Reference Room. ‘‘Company’s regulatory staff.’’
rule change. Accordingly, pursuant to The amended Section 4.05 would
II. Self-Regulatory Organization’s
Section 19(b)(2) of the Act,5 the read as follows:
Statement of the Purpose of, and
Commission designates December 7, Any regulatory assets or any regulatory
Statutory Basis for, the Proposed Rule
2016, as the date by which the fees, fines or penalties collected by the
Change
Commission shall either approve or Company’s regulatory staff will be applied to
disapprove or institute proceedings to In its filing with the Commission, the fund the legal, regulatory and surveillance
determine whether to disapprove the self-regulatory organization included operations of the Company, and the
proposed rule change (File No. SR– statements concerning the purpose of, Company shall not distribute such assets,
NASDAQ–2016–121). and basis for, the proposed rule change fees, fines or penalties to the Member or any
and discussed any comments it received other entity.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
on the proposed rule change. The text The Exchange believes that the
authority.6 of those statements may be examined at increased clarity in the scope of the
Brent J. Fields,
the places specified in Item IV below. limits on use of Regulatory Funds will
The Exchange has prepared summaries, enhance the protections provided by
Secretary.
set forth in sections A, B, and C below, Section 4.05 against the possibility that
[FR Doc. 2016–25615 Filed 10–21–16; 8:45 am]
of the most significant parts of such Regulatory Funds may be assessed to
BILLING CODE 8011–01–P statements. respond to the Exchange’s budgetary
A. Self-Regulatory Organization’s needs rather than to serve a disciplinary
SECURITIES AND EXCHANGE Statement of the Purpose of, and the purpose.5
COMMISSION Statutory Basis for, the Proposed Rule The proposed amendments would
Change have the benefit of bringing Section 4.05
[Release No. 34–79115; File No. SR–NYSE– into greater conformity with the bylaws
2016–66] 1. Purpose of the Exchange’s affiliate NYSE Arca,
Self-Regulatory Organizations; New The Exchange proposes to amend Inc., which provide that regulatory fees
York Stock Exchange LLC; Notice of Article IV, Section 4.05 (Limitation on and penalties ‘‘will be applied to fund
Filing and Immediate Effectiveness of Distributions) of the Operating the legal, regulatory and surveillance
Proposed Rule Change Amending Agreement (‘‘Section 4.05’’), regarding operations of the Exchange.’’ 6
Article IV, Section 4.05 of the Tenth use of regulatory assets, fees, fines and The proposed amendments would
Amended and Restated Operating penalties (‘‘Regulatory Funds’’), and make Section 4.05 more consistent with
Agreement of the Exchange make additional, non-substantive edits. the limitations on the use of regulatory
Proposed Amendment to Section 4.05 income of other self-regulatory
October 18, 2016. organizations (‘‘SROs’’). Most such
Pursuant to Section 19(b)(1) 1 of the Section 4.05 provides that: limitations are substantially similar to
Securities Exchange Act of 1934 (the [t]he Company shall not use any the proposed revised Section 4.05. For
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 regulatory assets or any regulatory fees, example, similar to the proposed
notice is hereby given that on October fines or penalties collected by the Section 4.05, the limited liability
6, 2016, New York Stock Exchange LLC Exchange’s regulatory staff for company agreements of the BOX
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with commercial purposes or distribute such Options Exchange (‘‘BOX’’),
the Securities and Exchange assets, fees, fines or penalties to the International Securities Exchange, LLC
Commission (the ‘‘Commission’’) the Member or any other entity.4
(‘‘ISE’’), and its affiliates ISE Gemini,
Although it prohibits the use of
proposed rule change as described in LLC and ISE Mercury, LLC, provide that
Regulatory Funds for ‘‘commercial
Items I, II, and III below, which Items regulatory funds shall be used to fund
purposes,’’ that term is not defined in
have been prepared by the self- the relevant SRO’s legal, regulatory and
Section 4.05 or elsewhere in the
regulatory organization. The surveillance operations.7 Consistent
Operating Agreement. Accordingly, to
Commission is publishing this notice to
add greater clarity to the limits on the
solicit comments on the proposed rule 5 See Securities Exchange Act Release No. 77899
use of Regulatory Funds, the Exchange (May 24, 2016), 81 FR 34393 (May 31, 2016) (SR–
change from interested persons.
proposes to replace the prohibition NYSE–2016–37).
I. Self-Regulatory Organization’s against using Regulatory Funds for 6 See Bylaws of NYSE Arca, Inc., Art. II, Sec. 2.06

Statement of the Terms of Substance of ‘‘commercial purposes’’ with a (‘‘Any revenues received by the Exchange from
regulatory fees or regulatory penalties will be
the Proposed Rule Change statement that Regulatory Funds ‘‘will applied to fund the legal, regulatory and
The Exchange proposes to amend be applied to fund the legal, regulatory surveillance operations of the Exchange and will
Article IV, Section 4.05 of the Tenth and surveillance operations’’ of the not be used to pay dividends. For purposes of this
Amended and Restated Operating Exchange. The prohibition on using Section, regulatory penalties shall include
restitution and disgorgement of funds intended for
sradovich on DSK3GMQ082PROD with NOTICES

Agreement of the Exchange (‘‘Operating Regulatory Funds for distributions to
customers.’’). The Exchange’s affiliate NYSE MKT
Agreement’’) regarding use of regulatory the Member or any other entity would LLC has submitted substantially the same proposed
remain. amendment to its operating agreement. See SR–
5 Id.
NYSEMKT–2016–93.
4 See Tenth Amended and Restated Operating 7 Such provisions also limit the relevant SRO
6 17 CFR 200.30–3(a)(31).
Agreement of New York Stock Exchange LLC, Art. from making any distribution to its member using
1 15 U.S.C.78s(b)(1). IV, Sec. 4.05; see also Securities Exchange Act regulatory funds. See Box Options Exchange
2 15 U.S.C. 78a.
Release No. 78805 (September 9, 2016), 81 FR Limited Liability Company Agreement, Art. 1, Sec.
3 17 CFR 240.19b–4. 63536 (September 15, 2016) (SR–NYSE–2016–51). Continued

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Document Created: 2016-10-21 23:46:26
Document Modified: 2016-10-21 23:46:26

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 73186