81 FR 81200 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 222 (November 17, 2016)
Federal Register Volume 81, Issue 222 (November 17, 2016)
| Page Range | 81200-81202 | |
| FR Document | 2016-27590 |
[Federal Register Volume 81, Number 222 (Thursday, November 17, 2016)] [Notices] [Pages 81200-81202] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27590] [[Page 81200]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79279; File No. SR-CBOE-2016-074] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule November 10, 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 October 27, 2016, Chicago Board Options Exchange, Incorporated (``CBOE'' or the ``Exchange'') 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 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 text of the proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fees Schedule. Specifically, the Exchange proposes to amend its Fees Schedule with respect to waiving transaction fees incurred as a result of transactions that compress or reduce certain Clearing Trading Permit Holder (``TPH'') open positions. By way of background, SEC Rule 15c3-1, Net Capital Requirements for Brokers or Dealers (``Net Capital Rules''), requires that every registered broker-dealer maintain certain specified minimum levels of capital. The primary purpose of these rules is to regulate the ability of broker-dealers to meet their financial obligations to customers and other creditors. All of the broker-dealers that are clearing members of the Options Clearing Corporation (``OCC'') are subject to the Net Capital Rules. However, a subset of OCC's clearing members are subsidiaries of U.S. bank holding companies and these broker-dealers, through their affiliation with their parent U.S. bank holding companies, must also comply with bank regulatory capital requirements pursuant to rule-making required under the Dodd-Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank''). Recent rule-making enacted under Dodd-Frank now requires U.S. bank holding companies to hold substantially more bank regulatory capital than would otherwise be required under the Net Capital Rules. Additionally, due to the large contract size of S&P 500 Index (``SPX'') options, open interest in certain SPX series can result in extremely large bank regulatory capital requirements, even though the positions incur minimal requirements under the Net Capital Rules. As such, transactions that would result in the closing of this open interest have a beneficial impact on the bank regulatory capital requirements of the Clearing TPH's parent company with a minimal impact on regulatory capital required under the capital rules. The Exchange notes that most of these open positions are in out-of-the-money options and certain spread positions that are essentially riskless strategies because they have little or no market exposure. Particularly, the Exchange notes that given the nature of these options, there is minimal chance for large losses to occur, yet these positions are still subject to large bank regulatory capital requirements. Exchange transaction fees, however, if not waived, could discourage market participants from closing these positions out even though those market participants may also prefer to close them rather than carry them to expiration.\3\ Accordingly, in order to encourage the compression of certain out-of-the-money and riskless option positions, the Exchange previously adopted a rebate of all transactions fees for transactions that close these positions, provided they meet certain criteria, as described more fully below.\4\ --------------------------------------------------------------------------- \3\ For example, an out-of-the-money SPX option market-maker transaction may be worth only a few pennies per contract, but would cost approximately $0.33 per contract ($0.20 transaction fee plus $0.13 SPX Index License Surcharge) to close out. \4\ See Securities Exchange Act Release No. 76842 (January 6, 2016) 81 FR 1455 (January 12, 2016) (SR-CBOE-2015-117). --------------------------------------------------------------------------- The rebate of transaction fees \5\ is currently limited to those transactions that the Exchange believes would have the greatest impact on bank regulatory capital requirements but are also constrained to those positions that have little economic risk associated with them. Specifically, to be eligible for a rebate, a transaction must be: (i) For a complex order with at least five (5) different series in S&P 500 Index (SPX) options, SPX Weeklys (SPXW) options or p.m.-settled SPX options (SPXPM), (ii) a closing-only transaction or, if the transaction involves a Firm order (origin code ``F''), an opening transaction executed to facilitate a compression of option positions for a market- maker or joint-back office (``JBO'') account; (iii) for a position with a required capital charge equal to the minimum capital charge under OCC rules RBH Calculator or a position comprised of option series with a delta of ten (10) or less and (iv) entered between the first business day following a quarterly expiration through the last business day of that quarter.\6\ To receive a rebate, a rebate request with supporting documentation must also be submitted to the Exchange within 3 business days of the transactions. The Exchange proposes to amend the last criteria (i.e., the time period for which a Trading Permit Holder can enter these transactions and be eligible for the rebate). Specifically, the Exchange proposes to provide that in addition to meeting the first three criteria described above, the transaction would be eligible for a rebate if entered on any of the final three (3) trading days of any calendar month. The proposed rule change allows TPHs to mitigate their regulatory capital requirements on a monthly basis, instead of quarterly. --------------------------------------------------------------------------- \5\ Rebate of transaction fees would include the transaction fee assessed along with any other surcharges assessed per contract (e.g., the Index License Surcharge). \6\ For example, the third quarter of 2016 standard-Friday expiration occurred on September 16, 2016. For that quarter, qualifying transactions needed to be entered no earlier than September 19, 2016 and no later than September 30, 2016. --------------------------------------------------------------------------- [[Page 81201]] 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\7\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \8\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitation 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. Additionally, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\9\ which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). \9\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes providing a rebate of fees for transactions that compress certain out-of-the-money and riskless options positions is reasonable, equitable and not unfairly discriminatory because these positions would result in extremely large bank regulatory capital requirements for Clearing TPHs even though there is minimal chance for large losses to occur. Additionally, these positions have little or no economic benefit to the TPHs that hold the positions, who would likely prefer to close them but for the associated transaction fees. The fee rebate therefore allows TPHs to close out of these positions that are needlessly burdensome on themselves and Clearing TPHs. The Exchange believes the proposed rule change is reasonable, equitable and not unfairly discriminatory because TPHs can now mitigate their regulatory capital requirements on a monthly basis, instead of quarterly. The proposed change would encourage the closing of positions at the end of each month that needlessly result in burdensome capital requirements that, once closed, would alleviate the capital requirement constraints on TPHs and improve overall market liquidity by freeing capital currently tied up in certain out-of-the-money and riskless positions. The Exchange also notes that the proposed amended requirement would apply to all TPHs seeking a rebate for these transactions. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule changes will impose any burden on competition that are not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the Act because it applies to all market participants in the same manner with positions that meet the eligible criteria. The proposed change would encourage the closing of positions, on a monthly basis, that needlessly result in burdensome capital requirements that, once closed, would alleviate the capital requirement constraints on TPHs and improve overall market liquidity by freeing capital currently tied up in certain out-of-the-money and riskless positions. The Exchange does not believe that the proposed rule change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed rule change applies only to CBOE. To the extent that the proposed change makes CBOE a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become CBOE market participants. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and paragraph (f) of Rule 19b-4 \11\ thereunder. 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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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-CBOE-2016-074 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-CBOE-2016-074. 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 such 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-CBOE-2016-074, and should be submitted on or before December 8, 2016. [[Page 81202]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). Brent J. Fields, Secretary. [FR Doc. 2016-27590 Filed 11-16-16; 8:45 am] BILLING CODE 8011-01-P
![81200 Federal Register / Vol. 81, No. 222 / Thursday, November 17, 2016 / Notices
SECURITIES AND EXCHANGE transaction fees incurred as a result of order to encourage the compression of
COMMISSION transactions that compress or reduce certain out-of-the-money and riskless
certain Clearing Trading Permit Holder option positions, the Exchange
[Release No. 34–79279; File No. SR–CBOE–
2016–074] (‘‘TPH’’) open positions. previously adopted a rebate of all
By way of background, SEC Rule transactions fees for transactions that
Self-Regulatory Organizations; 15c3–1, Net Capital Requirements for close these positions, provided they
Chicago Board Options Exchange, Brokers or Dealers (‘‘Net Capital meet certain criteria, as described more
Incorporated; Notice of Filing and Rules’’), requires that every registered fully below.4
Immediate Effectiveness of a Proposed broker-dealer maintain certain specified The rebate of transaction fees 5 is
Rule Change To Amend the Fees minimum levels of capital. The primary currently limited to those transactions
Schedule purpose of these rules is to regulate the that the Exchange believes would have
November 10, 2016. ability of broker-dealers to meet their the greatest impact on bank regulatory
Pursuant to Section 19(b)(1) of the financial obligations to customers and capital requirements but are also
Securities Exchange Act of 1934 other creditors. All of the broker-dealers constrained to those positions that have
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 that are clearing members of the Options little economic risk associated with
notice is hereby given that on October Clearing Corporation (‘‘OCC’’) are them. Specifically, to be eligible for a
27, 2016, Chicago Board Options subject to the Net Capital Rules.
rebate, a transaction must be: (i) For a
Exchange, Incorporated (‘‘CBOE’’ or the However, a subset of OCC’s clearing
complex order with at least five (5)
‘‘Exchange’’) filed with the Securities members are subsidiaries of U.S. bank
different series in S&P 500 Index (SPX)
and Exchange Commission holding companies and these broker-
options, SPX Weeklys (SPXW) options
(‘‘Commission’’) the proposed rule dealers, through their affiliation with
their parent U.S. bank holding or p.m.-settled SPX options (SPXPM),
change as described in Items I, II, and
companies, must also comply with bank (ii) a closing-only transaction or, if the
III below, which Items have been
regulatory capital requirements transaction involves a Firm order (origin
prepared by the Exchange. The
Commission is publishing this notice to pursuant to rule-making required under code ‘‘F’’), an opening transaction
solicit comments on the proposed rule the Dodd-Frank Wall Street Reform and executed to facilitate a compression of
change from interested persons. Consumer Protection Act (‘‘Dodd- option positions for a market-maker or
Frank’’). Recent rule-making enacted joint-back office (‘‘JBO’’) account; (iii)
I. Self-Regulatory Organization’s for a position with a required capital
under Dodd-Frank now requires U.S.
Statement of the Terms of Substance of charge equal to the minimum capital
bank holding companies to hold
the Proposed Rule Change charge under OCC rules RBH Calculator
substantially more bank regulatory
The text of the proposed rule change capital than would otherwise be or a position comprised of option series
is available on the Exchange’s Web site required under the Net Capital Rules. with a delta of ten (10) or less and (iv)
(http://www.cboe.com/AboutCBOE/ Additionally, due to the large contract entered between the first business day
CBOELegalRegulatoryHome.aspx), at size of S&P 500 Index (‘‘SPX’’) options, following a quarterly expiration through
the Exchange’s Office of the Secretary, open interest in certain SPX series can the last business day of that quarter.6 To
and at the Commission’s Public result in extremely large bank regulatory receive a rebate, a rebate request with
Reference Room. capital requirements, even though the supporting documentation must also be
II. Self-Regulatory Organization’s positions incur minimal requirements submitted to the Exchange within 3
Statement of the Purpose of, and under the Net Capital Rules. As such, business days of the transactions. The
Statutory Basis for, the Proposed Rule transactions that would result in the Exchange proposes to amend the last
Change closing of this open interest have a criteria (i.e., the time period for which
In its filing with the Commission, the beneficial impact on the bank regulatory a Trading Permit Holder can enter these
Exchange included statements capital requirements of the Clearing transactions and be eligible for the
concerning the purpose of and basis for TPH’s parent company with a minimal rebate). Specifically, the Exchange
the proposed rule change and discussed impact on regulatory capital required proposes to provide that in addition to
any comments it received on the under the capital rules. The Exchange meeting the first three criteria described
proposed rule change. The text of these notes that most of these open positions above, the transaction would be eligible
statements may be examined at the are in out-of-the-money options and
for a rebate if entered on any of the final
places specified in Item IV below. The certain spread positions that are
three (3) trading days of any calendar
Exchange has prepared summaries, set essentially riskless strategies because
they have little or no market exposure. month. The proposed rule change
forth in sections A, B, and C below, of allows TPHs to mitigate their regulatory
the most significant aspects of such Particularly, the Exchange notes that
given the nature of these options, there capital requirements on a monthly basis,
statements. instead of quarterly.
is minimal chance for large losses to
A. Self-Regulatory Organization’s occur, yet these positions are still
Statement of the Purpose of, and the subject to large bank regulatory capital $0.33 per contract ($0.20 transaction fee plus $0.13
Statutory Basis for, the Proposed Rule SPX Index License Surcharge) to close out.
requirements. Exchange transaction 4 See Securities Exchange Act Release No. 76842
Change fees, however, if not waived, could (January 6, 2016) 81 FR 1455 (January 12, 2016)
asabaliauskas on DSK3SPTVN1PROD with NOTICES
1. Purpose discourage market participants from (SR–CBOE–2015–117).
closing these positions out even though 5 Rebate of transaction fees would include the
The Exchange proposes to amend its those market participants may also transaction fee assessed along with any other
Fees Schedule. Specifically, the prefer to close them rather than carry surcharges assessed per contract (e.g., the Index
Exchange proposes to amend its Fees License Surcharge).
them to expiration.3 Accordingly, in 6 For example, the third quarter of 2016 standard-
Schedule with respect to waiving Friday expiration occurred on September 16, 2016.
3 For example, an out-of-the-money SPX option For that quarter, qualifying transactions needed to
1 15 U.S.C. 78s(b)(1). market-maker transaction may be worth only a few be entered no earlier than September 19, 2016 and
2 17 CFR 240.19b–4. pennies per contract, but would cost approximately no later than September 30, 2016.
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![81202 Federal Register / Vol. 81, No. 222 / Thursday, November 17, 2016 / Notices
For the Commission, by the Division of in Item IV below. FINRA has prepared all OATS event types.6 FINRA noted
Trading and Markets, pursuant to summaries, set forth in sections A, B, that it ‘‘is deferring the implementation
delegated authority.12 and C below, of the most significant of this requirement to report a sequence
aspects of such statements. number for new orders.’’ 7 In this
Brent J. Fields,
proposed rule change, FINRA is
Secretary. A. Self-Regulatory Organization’s
Statement of the Purpose of, and proposing that the requirement that
[FR Doc. 2016–27590 Filed 11–16–16; 8:45 am]
Statutory Basis for, the Proposed Rule ATSs report a sequence number when
BILLING CODE 8011–01–P
Change reporting new orders not be
implemented on November 7, 2016.
1. Purpose FINRA anticipates filing a proposed
SECURITIES AND EXCHANGE
COMMISSION In May 2016, the SEC approved Rule rule change with the SEC in the near
4554 to further enhance FINRA’s ability future to extend the requirement to
[Release No. 34–79289; File No. SR–FINRA–
2016–041] to reconstruct an ATS’s order book and report a sequence number beyond order
better perform its order-based receipt because, without a sequence
Self-Regulatory Organizations; surveillance, which includes number on all order events, FINRA is
Financial Industry Regulatory surveillance for layering, quote unable to properly sequence events
Authority, Inc.; Notice of Filing and spoofing, and mid-point pricing when a single ATS MPID reports order
Immediate Effectiveness of a Proposed manipulation. To accomplish this, Rule events in the same symbol with
Rule Change Relating to the 4554 requires ATSs to report order identical timestamps. However, because
Implementation Date for Alternative information for each order they receive a proposed rule change has not yet been
Trading Systems To Report Sequence in an NMS stock beyond that set forth filed, FINRA is filing this proposed rule
Numbers Under Rule 4554 in the OATS rules, such as order re- change to delay the implementation of
pricing events (e.g., changes to an order the requirement in Rule 4554(b)(8) that
November 10, 2016. that is pegged to the National Best Bid ATSs report the sequence number
Pursuant to Section 19(b)(1) of the or Offer (‘‘NBBO’’)) and order display assigned to the order event by the ATS’s
Securities Exchange Act of 1934 and reserve size information.4 Rule 4554 matching engine at the time of order
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 sets forth four categories of reporting receipt. FINRA will announce the
notice is hereby given that on November requirements: (1) Data to be reported by implementation date for this
8. 2016, Financial Industry Regulatory all ATSs at the time of order receipt; (2) requirement at the time it announces the
Authority, Inc. (‘‘FINRA’’) filed with the data to be reported by all ATSs at the implementation date for the extension
Securities and Exchange Commission time of order execution; (3) data to be of the requirement to all OATS order
(‘‘SEC’’ or ‘‘Commission’’) the proposed reported by ATSs that display events.
rule change as described in Items I and subscriber orders; and (4) data specific
II below, which Items have been FINRA has filed the proposed rule
to ATSs that are registered as ADF change for immediate effectiveness and
prepared by FINRA. FINRA has Trading Centers.
designated the proposed rule change as has requested that the SEC waive the
constituting a ‘‘non-controversial’’ rule Rule 4554(b) requires that all ATSs requirement that the proposed rule
change under paragraph (f)(6) of Rule report eight categories of information at change not become operative for 30 days
19b–4 under the Act,3 which renders the time of order receipt, including the after the date of the filing, so FINRA can
the proposal effective upon receipt of sequence number assigned to the order implement the proposed rule change
this filing by the Commission. event by the ATS’s matching engine.5 immediately.
When FINRA announced the SEC’s
I. Self-Regulatory Organization’s approval of Rule 4554, it established an 2. Statutory Basis
Statement of the Terms of the Substance implementation date of November 7,
of the Proposed Rule Change 2016; however, FINRA noted that it FINRA believes that the proposed rule
anticipated submitting a proposed rule change is consistent with the provisions
FINRA is proposing to delay
change to the SEC that would require of Section 15A(b)(6) of the Act,8 which
implementation of Rule 4554(b)(8). The
ATSs to provide a sequence number for requires, among other things, that
proposed rule change would not make
FINRA rules must be designed to
any other changes to FINRA rules.
The proposed rule change does not 4 See Securities Exchange Act Release No. 77798 prevent fraudulent and manipulative
make any changes to the text of FINRA (May 10, 2016), 81 FR 30395 (May 16, 2016) (SR– acts and practices, to promote just and
rules.
FINRA–2016–010). Some of these requirements do equitable principles of trade, and, in
not apply to all ATSs. general, to protect investors and the
5 Rule 4554(b)(8). Rule 4554(b) also requires all
II. Self-Regulatory Organization’s public interest. FINRA believes the
ATSs, at the time of order receipt, to report: (1)
Statement of the Purpose of, and Whether the ATS displays subscriber orders outside proposed rule change is consistent with
Statutory Basis for, the Proposed Rule of the ATS and, if the ATS displays subscriber the Act in that it will provide ATSs with
Change orders outside of the ATS, whether subscriber additional time to implement the
orders are displayed to subscribers only, or are
In its filing with the Commission, distributed for publication in the consolidated
requirement in Rule 4554(b)(8) and will
FINRA included statements concerning quotation data; (2) whether the ATS is an ADF not require ATSs to begin reporting the
the purpose of and basis for the Trading Center as defined in FINRA Rule 6220; (3) sequence number assigned to the order
asabaliauskas on DSK3SPTVN1PROD with NOTICES
whether the order can be routed away from the ATS event by the ATS’s matching engine at
proposed rule change and discussed any for execution; (4) whether there are any counter-
comments it received on the proposed party restrictions on the order; (5) a unique the time of order receipt until such time
rule change. The text of these statements identifier representing the specific order type other as sequence numbers are required for all
may be examined at the places specified than market and limit orders that have no other OATS event types.
special handling instructions; (6) the NBBO (or
12 17
relevant reference price) in effect at the time of
CFR 200.30–3(a)(12). order receipt and the timestamp of when the ATS
6 See Regulatory Notice 16–28, at n.3 (August
1 15 U.S.C. 78s(b)(1). 2016).
captured the effective NBBO (or relevant reference
2 17 CFR 240.19b–4. 7 Id.
price); and (7) the market data feed the ATS used
3 17 CFR 240.19b–4(f)(6). to obtain the NBBO (or relevant reference price). 8 15 U.S.C. 78o–3(b)(6).
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Document Created: 2016-11-17 02:59:54
Document Modified: 2016-11-17 02:59:54
| 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 81200 |
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