81_FR_84857 81 FR 84631 - Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of an Amendment to Rule 8.11, Effective Date of Judgment and the Adoption of Rule 8.18, Release of Disciplinary Complaints, Decisions and Other Information

81 FR 84631 - Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of an Amendment to Rule 8.11, Effective Date of Judgment and the Adoption of Rule 8.18, Release of Disciplinary Complaints, Decisions and Other Information

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 226 (November 23, 2016)

Page Range84631-84634
FR Document2016-28187

Federal Register, Volume 81 Issue 226 (Wednesday, November 23, 2016)
[Federal Register Volume 81, Number 226 (Wednesday, November 23, 2016)]
[Notices]
[Pages 84631-84634]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28187]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79343; File No. SR-BatsEDGA-2016-27]


Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of an Amendment to Rule 8.11, 
Effective Date of Judgment and the Adoption of Rule 8.18, Release of 
Disciplinary Complaints, Decisions and Other Information

November 17, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on November 3, 2016, Bats EDGA Exchange, Inc. (the ``Exchange'' or 
``EDGA'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to add proposed Rule 8.18 to require 
the publication of the Exchange's disciplinary complaints and 
disciplinary decisions issued and to remove the part of Interpretation 
and Policy .01 to Rule 8.11 that currently governs the publication of 
disciplinary complaints and information related to disciplinary 
complaints.
    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.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 parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
Reorganization of Exchange Rules Governing Release of Disciplinary 
Complaints, Decisions and Other Information Based on FINRA Rule 8313
    Interpretation and Policy .01 to Rule 8.11 currently provides, in 
part, that the Exchange shall cause details regarding all formal 
disciplinary actions where a final decision has been issued, except as 
provided in Rule 8.15(a), to be published on its Web site. 
Interpretation and Policy .01 also provides that the Exchange shall not 
issue any press release or other statement to the press concerning any 
formal or informal disciplinary matter unless the Chief Regulatory 
Officer recommends a press release to the Executive Committee or

[[Page 84632]]

the Board of the Exchange and either body determines that such a press 
release is warranted. The Exchange proposes to remove parts of 
Interpretation and Policy .01 to Rule 8.11 described above and to add 
proposed Rule 8.18 modeled after FINRA Rule 8313,\5\ as described 
below, to govern the publication of disciplinary information. The scope 
of proposed Rule 8.18 would be limited to publication of materials 
relating to the disciplinary process set forth in Chapter VIII because 
the Exchange seeks to provide prompt access to more information 
regarding its disciplinary actions to Members and associated persons. 
By providing more information regarding the Exchange's disciplinary 
process, including publishing disciplinary complaints at the time they 
are filed, Members and associated persons will be able to sooner 
identify conduct that the Exchange views as problematic and have will 
[sic] the ability to take corrective steps sooner than they can under 
the current rules that provide only for the publication of disciplinary 
decisions after they become final. In that regard, the Exchange has 
determined not to adopt FINRA Rule 8313 in all respects at this 
time.\6\
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    \5\ New York Stock Exchange, LLC (``NYSE'') similarly adopted 
rules modeled after FINRA Rule 8313. See Securities Exchange Act 
Release No. 78664 (August 24, 2016), 81 FR 59678, 59679 (August 30, 
2016) (SR-NYSE-2016-40).
    \6\ NYSE similarly declined to adopt all provisions of FINRA 
Rule 8313 insofar as the FINRA rule related to information beyond 
the formal disciplinary process. See id. at 59679.
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General Standards
    The Exchange proposes Rule 8.18(a) to be entitled ``General 
Standards.'' The text would set forth general standards for the release 
to the public of disciplinary complaints, decisions, or information.
    Proposed Rule 8.18(a)(1) would, in part, essentially replace the 
part of Interpretation and Policy .01 to Rule 8.11 that addresses the 
publication of disciplinary decisions and conform [sic] to FINRA Rule 
8313. The proposed rule would provide that the Exchange shall release 
to the public a copy of and, at the Exchange's discretion, information 
with respect to, any disciplinary decision issued by the Exchange, as 
defined in proposed Rule 8.18(e). Additionally, the proposed rule would 
provide that the Exchange would release to the public copies of 
disciplinary complaints as defined in proposed Rule 8.18(e). Also, the 
decision to issue other related information, including a press release, 
under proposed Rule 8.18(a)(1) would be in the discretion of the 
Exchange generally instead of requiring Executive Committee or Exchange 
Board approval as currently required in Interpretation and Policy .01 
to Rule 8.11. Proposed Rule 8.18(a)(1) would also provide that, in 
response to a request, the Exchange shall also release to the 
requesting party a copy of any identified disciplinary complaint or 
disciplinary decision issued by the Exchange, as defined in proposed 
Rule 8.18(e). These proposed amendments are modeled after FINRA Rule 
8313(a)(1) and would be substantially similar to the FINRA rule.
    The Exchange does not propose to incorporate subsections (2), (3), 
(4) and (6) of FINRA Rule 8313(a) because the Exchange proposes to 
limit the scope of proposed Rule 8.18 to the publication of materials 
relating to the disciplinary process set forth in Chapter VIII at this 
time.\7\ The Exchange, however, notes that although Exchange Rules do 
not provide for temporary cease and desist orders as provided for in 
FINRA Rule 9800, the Exchange's Client Suspension Rule--Rule 8.17--is 
similar in its procedure and purpose. The Exchange proposes to include 
a client suspension order issued pursuant to Rule 8.17 in the 
definition of ``disciplinary decision'' under proposed Rule 8.18(e)(2) 
consistent with FINRA's inclusion of its temporary cease and desist 
orders for publication because the Exchange views client suspension 
proceedings as disciplinary in nature. For the same reason, the 
Exchange proposes to include a notice of the initiation of a client 
suspension proceeding in the definition of ``disciplinary complaint'' 
under proposed Rule 8.18(e)(1).
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    \7\ Subsection (2) of FINRA Rule 8313(a) provides for the 
publication of statutory disqualification decisions and temporary 
cease and desist orders.
     Subsection (3) provides for the publication of any suspension, 
cancellation, expulsion, or bar for: failing to keep information 
current; failing to pay dues; failing to comply with an arbitration 
award or related settlement or an order of restitution or settlement 
providing for restitution; failing to meet the eligibility or 
qualification standards or prerequisites for access to services; or 
experiencing financial or operational difficulties. Additionally, 
subsection (3) provides for the publication of any suspension, 
cancellation, expulsion, or bar imposed as the result of a summary 
proceeding for actions authorized by Section 15A(h)(3) of the Act.
    Subsection (4) addresses procedures for membership proceedings.
    The Exchange does not propose to adopt subsections (2), (3), and 
(4) because, as discussed above, the Exchange's proposal is intended 
to provide more information regarding the Exchange's disciplinary 
process to the public so that Members and associated persons will be 
able to identify conduct that the Exchange views as problematic and 
will have the ability to take corrective steps sooner. Subsections 
(2), (3), and (4) to the FINRA rule would not further that purpose 
because those subsections would require the publication of 
information generally relating to membership eligibility or failure 
to satisfy one's membership obligations rather than discipline. 
Subsection (2) additionally addresses temporary cease and desist 
proceedings, which the Exchange does not have, and Subsection (3) 
additionally addresses Section 15A(h)(3) of the Act, which applies 
only to registered securities associations.
    Subsection (6) permits discretionary release of a complaint, 
decision, order, notification, or notice issued under FINRA rules, 
where the release of such information is deemed by FINRA's Chief 
Executive Officer (or such other senior officer as the Chief 
Executive Officer may designate) to be in the public interest. The 
Exchange does not propose to adopt this open-ended subsection 
because [sic] Exchange intends for the proposed rule to instead be 
limited to disciplinary information for the reasons discussed above.
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    The Exchange does not propose to incorporate subsection (5) of 
FINRA Rule 8313(a) because the Exchange does not have at this time 
provisions analogous to FINRA Rule 6490 \8\ and the FINRA Rule 9700 
Series.\9\ Additionally, the Exchange does not propose to include its 
procedures for exemptive relief analogous to the FINRA Rule 9600 Series 
because the Exchange proposes to limit scope of proposed Rule 8.18 to 
the publication of disciplinary materials.
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    \8\ ``Processing of Company-Related Actions.''
    \9\ ``Procedure For Grievances Concerning the Automated 
Systems.''
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Release Specifications
    The Exchange proposes to include subsection (b) to proposed Rule 
8.18 entitled ``Release Specifications'' modeled after FINRA Rule 
8313(b). Proposed Rule 8.18(b)(1) provides that copies of, and 
information with respect to, any disciplinary complaint released to the 
public pursuant to paragraph (a) of the proposed rule shall indicate 
that a disciplinary complaint represents the initiation of a formal 
proceeding by the Exchange in which findings as to the allegations in 
the complaint have not been made and does not represent a decision as 
to any of the allegations contained in the complaint. The proposed rule 
would be the same as FINRA Rule 8313(b)(1) except that the proposed 
rule would substitute the term ``Exchange'' for ``FINRA.''
    Proposed Rule 8.18(b)(2) provides that copies of, and information 
with respect to, any disciplinary decision released to the public 
pursuant to paragraph (a) of the proposed rule prior to the expiration 
of the time period provided for an appeal or call for review as 
permitted under Exchange Rules or the Act, or while such an appeal or 
call for review is pending, shall indicate that the findings and 
sanctions imposed therein are subject to review and modification by the 
Exchange or the Commission. The proposed rule would be substantially 
similar to FINRA Rule 8313(b)(2). The proposed rule would substitute 
the term ``Exchange'' for

[[Page 84633]]

``FINRA'' and would not include a provision relating to the release 
specifications for an ``other decision, order, notification, or 
notice'' because, as noted above, the Exchange proposes to limit the 
rule only to disciplinary complaints and disciplinary decisions.
Discretion To Redact Certain Information or Waive Publication
    The Exchange has determined that, subject to limited exceptions, 
disciplinary information should be released to the public in unredacted 
form. To provide the standard for such limited exceptions, the Exchange 
proposes subsection (c) of proposed Rule 8.18 entitled ``Discretion to 
Redact Certain Information or Waive Publication,'' modeled after FINRA 
Rule 8313(c).
    Proposed Rule 8.18(c)(1) would provide that the Exchange reserves 
the right to redact, on a case-by-case basis, information that contains 
confidential customer information, including customer identities, or 
information that raises significant identity theft, personal safety, or 
privacy concerns that are not outweighed by investor protection 
concerns. The proposed rule would be the same as FINRA Rule 8313(c)(1) 
except that the proposed rule would substitute the term ``Exchange'' 
for ``FINRA.''
    Similarly, proposed Rule 8.18(c)(2) provides that, notwithstanding 
paragraph (a) of the proposed rule, the Exchange may determine, in its 
discretion, to waive the requirement to release a copy of, or 
information with respect to, any disciplinary complaint or disciplinary 
decision under those extraordinary circumstances where the release of 
such information would violate fundamental notions of fairness or work 
an injustice. The proposed rule would be the same as FINRA Rule 
8313(c)(2) except that the proposed rule would substitute the term 
``Exchange'' for ``FINRA'' and would not include a provision relating 
to the waiver of the release of an ``other decision, order, 
notification, or notice'' because, as noted above, the Exchange 
proposes to limit the rule only to disciplinary complaints and 
disciplinary decisions.
Notice of Appeals of Exchange Decisions
    The Exchange proposes to include subsection (d) to proposed Rule 
8.18 entitled ``Notice of Appeals of Exchange Decisions to the SEC'' 
modeled on FINRA Rule 8313(d). Proposed Rule 8.18(d) provides that the 
Exchange must provide notice to the public when a disciplinary decision 
of the Exchange is appealed to the Commission and the notice shall 
state whether the effectiveness of the decision has been stayed pending 
the outcome of proceedings before the Commission. The proposed rule 
would be the same as FINRA Rule 8313(d) except that the proposed Rule 
would substitute the term ``Exchange'' for ``FINRA.''
Definitions
    Finally, the Exchange proposes subsection (e) of proposed Rule 8.18 
entitled ``Definitions.'' Proposed Rule 8.18(e) would set forth 
definitions of the terms ``disciplinary complaint'' and ``disciplinary 
decision'' as used in the rule, modeled after the definitions contained 
in FINRA Rule 8313(e).
    First, proposed Rule 8.18(e)(1) would define the term 
``disciplinary complaint'' to mean any statement of charges issued 
pursuant to Rule 8.4 or any notice served pursuant to Rule 8.17. This 
proposed rule is based on FINRA Rule 8313(e)(1) except that it replaces 
the term ``complaint pursuant to the Rule 9200 Series'' with 
``statement of charges pursuant to Rule 8.4'' and it includes a notice 
of the initiation of a client suspension proceeding issued pursuant to 
Rule 8.17 in the definition of ``disciplinary complaint.''
    Second, proposed Rule 8.18(e)(2) would define the term 
``disciplinary decision'' to mean any decision issued pursuant to the 
Chapter VIII, including, decisions issued by a Hearing Panel or the 
Appeals Committee and accepted offers of settlement. The Exchange 
additionally proposes to include suspension orders issued pursuant to 
Rule 8.17 in the definition of ``disciplinary decision.'' The Exchange 
does not propose to adopt the part of FINRA Rule 8313(e)(2) that 
discusses decisions issued pursuant to the FINRA Rule 9550 Series, 
FINRA Rule 9600 Series, FINRA Rule 9700 Series, or FINRA Rule 9800 
Series, or decisions, notifications, or notices issued pursuant to the 
FINRA Rule 9520 Series because, as explained above, the Exchange does 
not propose to adopt the provisions of the FINRA Rule providing for the 
publication of such information. Finally, proposed Rule 8.18(e)(2) 
would provide that minor rule violation plan letters issued pursuant to 
Rules 8.15 and 25.3 are not subject to the proposed rule.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirements of the Act and the rules and regulations thereunder that 
are applicable to a national securities exchange, and, in particular, 
with the requirements of Section 6(b) of the Act.\10\ In particular, 
the proposal is consistent with Section 6(b)(1) \11\ in that it enables 
the Exchange to be so organized as to have the capacity to be able to 
carry out the purposes of the Act and to comply, and to enforce 
compliance by its exchange members and persons associated with its 
exchange members, with the provisions of the Act, the rules and 
regulations thereunder, and the rules of the Exchange. In particular, 
the Exchange believes that the proposed addition of Rule 8.18 regarding 
release of disciplinary complaints, decisions and other information are 
[sic] consistent with Section 6(b)(1) of the Act because it would 
establish general standards for the release of disciplinary information 
to the public to provide greater access to information regarding the 
Exchange's disciplinary actions.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(1).
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    For the same reasons, the Exchange believes that proposed Rule 8.18 
furthers the objectives of Section 6(b)(5) of the Act \12\ because the 
proposed rule is designed to promote just and equitable principles of 
trade, to foster cooperation and coordination with persons engaged in 
facilitating transactions in securities, and to remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system. In particular, proposed Rule 8.18 furthers the 
objectives of Section 6(b)(5) of the Act by providing greater clarity, 
consistency, and transparency regarding the release of disciplinary 
complaints, decisions and other information to the public. By adopting 
the proposed Rule 8.18 modeled after FINRA Rule 8313, the Exchange 
would establish standards for the release of disciplinary information 
to the public in line with those in effect at FINRA that provide 
greater access to information regarding the Exchange's disciplinary 
actions and describe the scope of information subject to proposed Rule 
8.18. The Exchange believes that this proposed rule change promotes 
greater transparency to the Exchange's disciplinary process, and that 
the proposed rule change provides greater access to information 
regarding its disciplinary actions, and also provides valuable guidance 
and information to Members, associated persons, other regulators, and 
the investing public.
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    \12\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose

[[Page 84634]]

any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change is not 
intended to address competitive issues, but rather it is designed to 
enhance the Exchange's rules governing the release of disciplinary 
complaints, decisions and other information to the public, thereby 
providing greater clarity and consistency and resulting in less 
burdensome and more efficient regulatory compliance and facilitating 
performance of regulatory functions.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

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) of the Act \13\ and paragraph 
(f)(6) of Rule 19b-4 thereunder.\14\
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative prior to 30 days after the date of filing. 
However, Rule 19b-4(f)(6)(iii) \15\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. In its filing with the Commission, 
the Exchange requests that the Commission waive the 30-day operative 
delay. The Exchange states that FINRA performs services for it under a 
Regulatory Services Agreement (``RSA''), including the filing and 
prosecution of disciplinary complaints on the Exchange's behalf. FINRA 
also files and prosecutes disciplinary complaints on its own behalf, 
sometimes on cases involving identical or similar conduct to the cases 
it brings on the Exchange's behalf. Without the waiver, the Exchange is 
concerned that FINRA might publish a complaint during the 30-day 
operative delay, and that the Exchange would not be permitted to 
publish its own complaint, prepared by FINRA, regarding the same 
conduct. According to the Exchange, this would supply the public with 
an incomplete picture of the disciplinary proceedings, the full nature 
of which could not be disclosed until much later when a final 
disciplinary decision is issued. The Exchange, therefore, believes that 
waiver of the operative delay is consistent with the protection of 
investors and the public interest, as it will allow the Exchange to 
immediately publish any disciplinary complaints or decisions that are 
filed or issued after the proposal is filed. The Commission believes 
that waiver of the 30-day operative delay is consistent with the 
protection of investors and the public interest because it will allow 
EDGA to publish disciplinary complaints or decisions that have been 
filed or issued without delay. Therefore, the Commission designates the 
proposed rule change to be operative upon filing.\16\
---------------------------------------------------------------------------

    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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: (1) 
Necessary or appropriate in the public interest; (2) for the protection 
of investors; or (3) 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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BatsEDGA-2016-27 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-BatsEDGA-2016-27. 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-BatsEDGA-2016-27 and should 
be submitted on or before December 14, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Brent J. Fields,
Secretary.
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    \17\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2016-28187 Filed 11-22-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                               Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Notices                                             84631

                                                  the Exchange would round prices for                        Commission and any person, other than                 thereunder,4 which renders it effective
                                                  split-price orders, particularly when no                   those that may be withheld from the                   upon filing with the Commission. The
                                                  customer orders are involved, in                           public in accordance with the                         Commission is publishing this notice to
                                                  addition to any other comments they                        provisions of 5 U.S.C. 552, will be                   solicit comments on the proposed rule
                                                  may wish to submit about the proposed                      available for Web site viewing and                    change from interested persons.
                                                  rule change. The Commission seeks                          printing in the Commission’s Public
                                                                                                                                                                   I. Self-Regulatory Organization’s
                                                  comment on whether this aspect of the                      Reference Room, 100 F Street NE.,
                                                  proposal is consistent with Section                                                                              Statement of the Terms of Substance of
                                                                                                             Washington, DC 20549, on official
                                                  6(b)(5), which requires, among other                                                                             the Proposed Rule Change
                                                                                                             business days between the hours of
                                                  things, that a proposed rule change not                    10:00 a.m. and 3:00 p.m. Copies of such                  The Exchange filed a proposal to add
                                                  be designed to permit unfair                               filing also will be available for                     proposed Rule 8.18 to require the
                                                  discrimination between customers,                          inspection and copying at the principal               publication of the Exchange’s
                                                  issuers, brokers, or dealers.27                            office of the Exchange. All comments                  disciplinary complaints and
                                                     The Commission is concerned that the                    received will be posted without change;               disciplinary decisions issued and to
                                                  Exchange has not made clear what the                       the Commission does not edit personal                 remove the part of Interpretation and
                                                  time of execution would be for split-                      identifying information from                          Policy .01 to Rule 8.11 that currently
                                                  price orders executed manually by Floor                    submissions. You should submit only                   governs the publication of disciplinary
                                                  Brokers pursuant to the exception                          information that you wish to make                     complaints and information related to
                                                  proposed in Phlx Rule 1000(f)(iii)(D) or                   publicly available. All submissions                   disciplinary complaints.
                                                  how Floor Brokers would use paper                          should refer to File Number SR–Phlx–                     The text of the proposed rule change
                                                  tickets to execute split-price orders                      2016–82 and should be submitted on or                 is available at the Exchange’s Web site
                                                  under the proposed exception. The                          before December 14, 2016. Rebuttal                    at www.batstrading.com, at the
                                                  Commission seeks commenters’ views                         comments should be submitted by                       principal office of the Exchange, and at
                                                  on the sufficiency of the Exchange’s                       December 28, 2016.                                    the Commission’s Public Reference
                                                  statements regarding the execution of a                                                                          Room.
                                                  split-price order by a Floor Broker                          For the Commission, by the Division of
                                                                                                             Trading and Markets, pursuant to delegated            II. Self-Regulatory Organization’s
                                                  pursuant to the proposed exception                         authority.28                                          Statement of the Purpose of, and
                                                  under Phlx Rule 1000(f)(iii)(D). In
                                                                                                             Brent J. Fields,                                      Statutory Basis for, the Proposed Rule
                                                  addition, the Commission seeks
                                                                                                             Secretary.                                            Change
                                                  comment on whether the proposed rule
                                                  change is consistent with the Options                      [FR Doc. 2016–28189 Filed 11–22–16; 8:45 am]             In its filing with the Commission, the
                                                  Order Protection and Locked/Crossed                        BILLING CODE 8011–01–P                                Exchange included statements
                                                  Market Plan.                                                                                                     concerning the purpose of and basis for
                                                     Comments may be submitted by any                                                                              the proposed rule change and discussed
                                                  of the following methods:                                  SECURITIES AND EXCHANGE                               any comments it received on the
                                                                                                             COMMISSION                                            proposed rule change. The text of these
                                                  Electronic Comments                                                                                              statements may be examined at the
                                                                                                             [Release No. 34–79343; File No. SR-
                                                    • Use the Commission’s Internet                                                                                places specified in Item IV below. The
                                                                                                             BatsEDGA–2016–27]
                                                  comment form (http://www.sec.gov/                                                                                Exchange has prepared summaries, set
                                                  rules/sro.shtml); or                                       Self-Regulatory Organizations; Bats                   forth in Sections A, B, and C below, of
                                                    • Send an email to rule-                                 EDGA Exchange, Inc.; Notice of Filing                 the most significant parts of such
                                                  comments@sec.gov. Please include File                      and Immediate Effectiveness of an                     statements.
                                                  Number SR–Phlx–2016–82 on the                              Amendment to Rule 8.11, Effective
                                                  subject line.                                                                                                    A. Self-Regulatory Organization’s
                                                                                                             Date of Judgment and the Adoption of                  Statement of the Purpose of, and
                                                  Paper Comments                                             Rule 8.18, Release of Disciplinary                    Statutory Basis for, the Proposed Rule
                                                    • Send paper comments in triplicate                      Complaints, Decisions and Other                       Change
                                                  to Secretary, Securities and Exchange                      Information
                                                                                                                                                                   1. Purpose
                                                  Commission, 100 F Street NE.,                              November 17, 2016.
                                                  Washington, DC 20549–1090.                                                                                       Reorganization of Exchange Rules
                                                                                                                Pursuant to Section 19(b)(1) of the
                                                  All submissions should refer to File                                                                             Governing Release of Disciplinary
                                                                                                             Securities Exchange Act of 1934 (the
                                                  Number SR–Phlx–2016–82. The file                                                                                 Complaints, Decisions and Other
                                                                                                             ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                  number should be included on the                                                                                 Information Based on FINRA Rule 8313
                                                                                                             notice is hereby given that on November
                                                  subject line if email is used. To help the                 3, 2016, Bats EDGA Exchange, Inc. (the                   Interpretation and Policy .01 to Rule
                                                  Commission process and review your                         ‘‘Exchange’’ or ‘‘EDGA’’) filed with the              8.11 currently provides, in part, that the
                                                  comments more efficiently, please use                      Securities and Exchange Commission                    Exchange shall cause details regarding
                                                  only one method. The Commission will                       (‘‘Commission’’) the proposed rule                    all formal disciplinary actions where a
                                                  post all comments on the Commission’s                      change as described in Items I and II                 final decision has been issued, except as
                                                  Internet Web site (http://www.sec.gov/                     below, which Items have been prepared                 provided in Rule 8.15(a), to be
                                                  rules/sro.shtml). Copies of the                            by the Exchange. The Exchange has                     published on its Web site. Interpretation
                                                  submission, all subsequent                                 designated this proposal as a ‘‘non-                  and Policy .01 also provides that the
                                                  amendments, all written statements                                                                               Exchange shall not issue any press
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                                                                                                             controversial’’ proposed rule change
                                                  with respect to the proposed rule                          pursuant to Section 19(b)(3)(A) of the                release or other statement to the press
                                                  change that are filed with the                             Act 3 and Rule 19b–4(f)(6)(iii)                       concerning any formal or informal
                                                  Commission, and all written                                                                                      disciplinary matter unless the Chief
                                                  communications relating to the                               28 17 CFR 200.30–3(a)(57).                          Regulatory Officer recommends a press
                                                  proposed rule change between the                             1 15 U.S.C. 78s(b)(1).                              release to the Executive Committee or
                                                                                                               2 17 CFR 240.19b–4.
                                                    27 15   U.S.C.78f(b)(5).                                   3 15 U.S.C. 78s(b)(3)(A).                             4 17   CFR 240.19b–4(f)(6)(iii).



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                                                  84632                   Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Notices

                                                  the Board of the Exchange and either                    Exchange generally instead of requiring                  proposes to include a client suspension
                                                  body determines that such a press                       Executive Committee or Exchange Board                    order issued pursuant to Rule 8.17 in
                                                  release is warranted. The Exchange                      approval as currently required in                        the definition of ‘‘disciplinary decision’’
                                                  proposes to remove parts of                             Interpretation and Policy .01 to Rule                    under proposed Rule 8.18(e)(2)
                                                  Interpretation and Policy .01 to Rule                   8.11. Proposed Rule 8.18(a)(1) would                     consistent with FINRA’s inclusion of its
                                                  8.11 described above and to add                         also provide that, in response to a                      temporary cease and desist orders for
                                                  proposed Rule 8.18 modeled after                        request, the Exchange shall also release                 publication because the Exchange views
                                                  FINRA Rule 8313,5 as described below,                   to the requesting party a copy of any                    client suspension proceedings as
                                                  to govern the publication of disciplinary               identified disciplinary complaint or                     disciplinary in nature. For the same
                                                  information. The scope of proposed                      disciplinary decision issued by the                      reason, the Exchange proposes to
                                                  Rule 8.18 would be limited to                           Exchange, as defined in proposed Rule                    include a notice of the initiation of a
                                                  publication of materials relating to the                8.18(e). These proposed amendments                       client suspension proceeding in the
                                                  disciplinary process set forth in Chapter               are modeled after FINRA Rule                             definition of ‘‘disciplinary complaint’’
                                                  VIII because the Exchange seeks to                      8313(a)(1) and would be substantially                    under proposed Rule 8.18(e)(1).
                                                  provide prompt access to more                           similar to the FINRA rule.                                  The Exchange does not propose to
                                                  information regarding its disciplinary                    The Exchange does not propose to                       incorporate subsection (5) of FINRA
                                                  actions to Members and associated                       incorporate subsections (2), (3), (4) and                Rule 8313(a) because the Exchange does
                                                  persons. By providing more information                  (6) of FINRA Rule 8313(a) because the                    not have at this time provisions
                                                  regarding the Exchange’s disciplinary                   Exchange proposes to limit the scope of                  analogous to FINRA Rule 6490 8 and the
                                                  process, including publishing                           proposed Rule 8.18 to the publication of                 FINRA Rule 9700 Series.9 Additionally,
                                                  disciplinary complaints at the time they                materials relating to the disciplinary                   the Exchange does not propose to
                                                  are filed, Members and associated                       process set forth in Chapter VIII at this                include its procedures for exemptive
                                                  persons will be able to sooner identify                 time.7 The Exchange, however, notes                      relief analogous to the FINRA Rule 9600
                                                  conduct that the Exchange views as                      that although Exchange Rules do not                      Series because the Exchange proposes to
                                                  problematic and have will [sic] the                     provide for temporary cease and desist                   limit scope of proposed Rule 8.18 to the
                                                  ability to take corrective steps sooner                 orders as provided for in FINRA Rule                     publication of disciplinary materials.
                                                  than they can under the current rules                   9800, the Exchange’s Client Suspension
                                                                                                          Rule—Rule 8.17—is similar in its                         Release Specifications
                                                  that provide only for the publication of
                                                  disciplinary decisions after they become                procedure and purpose. The Exchange                         The Exchange proposes to include
                                                  final. In that regard, the Exchange has                                                                          subsection (b) to proposed Rule 8.18
                                                  determined not to adopt FINRA Rule
                                                                                                             7 Subsection (2) of FINRA Rule 8313(a) provides       entitled ‘‘Release Specifications’’
                                                                                                          for the publication of statutory disqualification        modeled after FINRA Rule 8313(b).
                                                  8313 in all respects at this time.6                     decisions and temporary cease and desist orders.
                                                                                                             Subsection (3) provides for the publication of any
                                                                                                                                                                   Proposed Rule 8.18(b)(1) provides that
                                                  General Standards                                       suspension, cancellation, expulsion, or bar for:         copies of, and information with respect
                                                    The Exchange proposes Rule 8.18(a)                    failing to keep information current; failing to pay      to, any disciplinary complaint released
                                                                                                          dues; failing to comply with an arbitration award        to the public pursuant to paragraph (a)
                                                  to be entitled ‘‘General Standards.’’ The               or related settlement or an order of restitution or
                                                  text would set forth general standards                  settlement providing for restitution; failing to meet
                                                                                                                                                                   of the proposed rule shall indicate that
                                                  for the release to the public of                        the eligibility or qualification standards or            a disciplinary complaint represents the
                                                  disciplinary complaints, decisions, or                  prerequisites for access to services; or experiencing    initiation of a formal proceeding by the
                                                                                                          financial or operational difficulties. Additionally,     Exchange in which findings as to the
                                                  information.                                            subsection (3) provides for the publication of any
                                                    Proposed Rule 8.18(a)(1) would, in                    suspension, cancellation, expulsion, or bar imposed      allegations in the complaint have not
                                                  part, essentially replace the part of                   as the result of a summary proceeding for actions        been made and does not represent a
                                                  Interpretation and Policy .01 to Rule                   authorized by Section 15A(h)(3) of the Act.              decision as to any of the allegations
                                                  8.11 that addresses the publication of                     Subsection (4) addresses procedures for               contained in the complaint. The
                                                                                                          membership proceedings.
                                                  disciplinary decisions and conform [sic]                                                                         proposed rule would be the same as
                                                                                                             The Exchange does not propose to adopt
                                                  to FINRA Rule 8313. The proposed rule                   subsections (2), (3), and (4) because, as discussed      FINRA Rule 8313(b)(1) except that the
                                                  would provide that the Exchange shall                   above, the Exchange’s proposal is intended to            proposed rule would substitute the term
                                                  release to the public a copy of and, at                 provide more information regarding the Exchange’s        ‘‘Exchange’’ for ‘‘FINRA.’’
                                                                                                          disciplinary process to the public so that Members          Proposed Rule 8.18(b)(2) provides that
                                                  the Exchange’s discretion, information                  and associated persons will be able to identify
                                                  with respect to, any disciplinary                       conduct that the Exchange views as problematic           copies of, and information with respect
                                                  decision issued by the Exchange, as                     and will have the ability to take corrective steps       to, any disciplinary decision released to
                                                  defined in proposed Rule 8.18(e).                       sooner. Subsections (2), (3), and (4) to the FINRA       the public pursuant to paragraph (a) of
                                                                                                          rule would not further that purpose because those        the proposed rule prior to the expiration
                                                  Additionally, the proposed rule would                   subsections would require the publication of
                                                  provide that the Exchange would release                 information generally relating to membership             of the time period provided for an
                                                  to the public copies of disciplinary                    eligibility or failure to satisfy one’s membership       appeal or call for review as permitted
                                                                                                          obligations rather than discipline. Subsection (2)       under Exchange Rules or the Act, or
                                                  complaints as defined in proposed Rule                  additionally addresses temporary cease and desist
                                                  8.18(e). Also, the decision to issue other              proceedings, which the Exchange does not have,
                                                                                                                                                                   while such an appeal or call for review
                                                  related information, including a press                  and Subsection (3) additionally addresses Section        is pending, shall indicate that the
                                                  release, under proposed Rule 8.18(a)(1)                 15A(h)(3) of the Act, which applies only to              findings and sanctions imposed therein
                                                                                                          registered securities associations.                      are subject to review and modification
                                                  would be in the discretion of the
                                                                                                             Subsection (6) permits discretionary release of a     by the Exchange or the Commission.
                                                                                                          complaint, decision, order, notification, or notice
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                                                    5 New York Stock Exchange, LLC (‘‘NYSE’’)
                                                                                                          issued under FINRA rules, where the release of           The proposed rule would be
                                                  similarly adopted rules modeled after FINRA Rule        such information is deemed by FINRA’s Chief              substantially similar to FINRA Rule
                                                  8313. See Securities Exchange Act Release No.           Executive Officer (or such other senior officer as the   8313(b)(2). The proposed rule would
                                                  78664 (August 24, 2016), 81 FR 59678, 59679             Chief Executive Officer may designate) to be in the
                                                  (August 30, 2016) (SR–NYSE–2016–40).                                                                             substitute the term ‘‘Exchange’’ for
                                                                                                          public interest. The Exchange does not propose to
                                                    6 NYSE similarly declined to adopt all provisions     adopt this open-ended subsection because [sic]
                                                                                                                                                                     8 ‘‘Processing
                                                                                                                                                                                 of Company-Related Actions.’’
                                                  of FINRA Rule 8313 insofar as the FINRA rule            Exchange intends for the proposed rule to instead
                                                  related to information beyond the formal                be limited to disciplinary information for the             9 ‘‘Procedure
                                                                                                                                                                                For Grievances Concerning the
                                                  disciplinary process. See id. at 59679.                 reasons discussed above.                                 Automated Systems.’’



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                                                                          Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Notices                                            84633

                                                  ‘‘FINRA’’ and would not include a                       notice shall state whether the                        Act.10 In particular, the proposal is
                                                  provision relating to the release                       effectiveness of the decision has been                consistent with Section 6(b)(1) 11 in that
                                                  specifications for an ‘‘other decision,                 stayed pending the outcome of                         it enables the Exchange to be so
                                                  order, notification, or notice’’ because,               proceedings before the Commission.                    organized as to have the capacity to be
                                                  as noted above, the Exchange proposes                   The proposed rule would be the same as                able to carry out the purposes of the Act
                                                  to limit the rule only to disciplinary                  FINRA Rule 8313(d) except that the                    and to comply, and to enforce
                                                  complaints and disciplinary decisions.                  proposed Rule would substitute the                    compliance by its exchange members
                                                                                                          term ‘‘Exchange’’ for ‘‘FINRA.’’                      and persons associated with its
                                                  Discretion To Redact Certain
                                                                                                                                                                exchange members, with the provisions
                                                  Information or Waive Publication                        Definitions
                                                                                                                                                                of the Act, the rules and regulations
                                                     The Exchange has determined that,                       Finally, the Exchange proposes                     thereunder, and the rules of the
                                                  subject to limited exceptions,                          subsection (e) of proposed Rule 8.18                  Exchange. In particular, the Exchange
                                                  disciplinary information should be                      entitled ‘‘Definitions.’’ Proposed Rule               believes that the proposed addition of
                                                  released to the public in unredacted                    8.18(e) would set forth definitions of the            Rule 8.18 regarding release of
                                                  form. To provide the standard for such                  terms ‘‘disciplinary complaint’’ and                  disciplinary complaints, decisions and
                                                  limited exceptions, the Exchange                        ‘‘disciplinary decision’’ as used in the              other information are [sic] consistent
                                                  proposes subsection (c) of proposed                     rule, modeled after the definitions                   with Section 6(b)(1) of the Act because
                                                  Rule 8.18 entitled ‘‘Discretion to Redact               contained in FINRA Rule 8313(e).                      it would establish general standards for
                                                  Certain Information or Waive                               First, proposed Rule 8.18(e)(1) would              the release of disciplinary information
                                                  Publication,’’ modeled after FINRA Rule                 define the term ‘‘disciplinary                        to the public to provide greater access
                                                  8313(c).                                                complaint’’ to mean any statement of                  to information regarding the Exchange’s
                                                     Proposed Rule 8.18(c)(1) would                       charges issued pursuant to Rule 8.4 or                disciplinary actions.
                                                  provide that the Exchange reserves the                  any notice served pursuant to Rule 8.17.                 For the same reasons, the Exchange
                                                  right to redact, on a case-by-case basis,               This proposed rule is based on FINRA                  believes that proposed Rule 8.18
                                                  information that contains confidential                  Rule 8313(e)(1) except that it replaces               furthers the objectives of Section 6(b)(5)
                                                  customer information, including                         the term ‘‘complaint pursuant to the                  of the Act 12 because the proposed rule
                                                  customer identities, or information that                Rule 9200 Series’’ with ‘‘statement of                is designed to promote just and
                                                  raises significant identity theft, personal             charges pursuant to Rule 8.4’’ and it                 equitable principles of trade, to foster
                                                  safety, or privacy concerns that are not                includes a notice of the initiation of a              cooperation and coordination with
                                                  outweighed by investor protection                       client suspension proceeding issued                   persons engaged in facilitating
                                                  concerns. The proposed rule would be                    pursuant to Rule 8.17 in the definition               transactions in securities, and to remove
                                                  the same as FINRA Rule 8313(c)(1)                       of ‘‘disciplinary complaint.’’                        impediments to and perfect the
                                                  except that the proposed rule would                        Second, proposed Rule 8.18(e)(2)                   mechanism of a free and open market
                                                  substitute the term ‘‘Exchange’’ for                    would define the term ‘‘disciplinary                  and a national market system. In
                                                  ‘‘FINRA.’’                                              decision’’ to mean any decision issued                particular, proposed Rule 8.18 furthers
                                                     Similarly, proposed Rule 8.18(c)(2)                  pursuant to the Chapter VIII, including,              the objectives of Section 6(b)(5) of the
                                                  provides that, notwithstanding                          decisions issued by a Hearing Panel or                Act by providing greater clarity,
                                                  paragraph (a) of the proposed rule, the                 the Appeals Committee and accepted                    consistency, and transparency regarding
                                                  Exchange may determine, in its                          offers of settlement. The Exchange                    the release of disciplinary complaints,
                                                  discretion, to waive the requirement to                 additionally proposes to include                      decisions and other information to the
                                                  release a copy of, or information with                  suspension orders issued pursuant to                  public. By adopting the proposed Rule
                                                  respect to, any disciplinary complaint or               Rule 8.17 in the definition of                        8.18 modeled after FINRA Rule 8313,
                                                  disciplinary decision under those                       ‘‘disciplinary decision.’’ The Exchange               the Exchange would establish standards
                                                  extraordinary circumstances where the                   does not propose to adopt the part of                 for the release of disciplinary
                                                  release of such information would                       FINRA Rule 8313(e)(2) that discusses                  information to the public in line with
                                                  violate fundamental notions of fairness                 decisions issued pursuant to the FINRA                those in effect at FINRA that provide
                                                  or work an injustice. The proposed rule                 Rule 9550 Series, FINRA Rule 9600                     greater access to information regarding
                                                  would be the same as FINRA Rule                         Series, FINRA Rule 9700 Series, or                    the Exchange’s disciplinary actions and
                                                  8313(c)(2) except that the proposed rule                FINRA Rule 9800 Series, or decisions,                 describe the scope of information
                                                  would substitute the term ‘‘Exchange’’                  notifications, or notices issued pursuant             subject to proposed Rule 8.18. The
                                                  for ‘‘FINRA’’ and would not include a                   to the FINRA Rule 9520 Series because,                Exchange believes that this proposed
                                                  provision relating to the waiver of the                 as explained above, the Exchange does                 rule change promotes greater
                                                  release of an ‘‘other decision, order,                  not propose to adopt the provisions of                transparency to the Exchange’s
                                                  notification, or notice’’ because, as                   the FINRA Rule providing for the                      disciplinary process, and that the
                                                  noted above, the Exchange proposes to                   publication of such information.                      proposed rule change provides greater
                                                  limit the rule only to disciplinary                     Finally, proposed Rule 8.18(e)(2) would               access to information regarding its
                                                  complaints and disciplinary decisions.                  provide that minor rule violation plan                disciplinary actions, and also provides
                                                                                                          letters issued pursuant to Rules 8.15 and             valuable guidance and information to
                                                  Notice of Appeals of Exchange
                                                                                                          25.3 are not subject to the proposed                  Members, associated persons, other
                                                  Decisions
                                                                                                          rule.                                                 regulators, and the investing public.
                                                    The Exchange proposes to include
                                                  subsection (d) to proposed Rule 8.18                    2. Statutory Basis                                    B. Self-Regulatory Organization’s
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                                                  entitled ‘‘Notice of Appeals of Exchange                   The Exchange believes that its                     Statement on Burden on Competition
                                                  Decisions to the SEC’’ modeled on                       proposal is consistent with the                         The Exchange does not believe that
                                                  FINRA Rule 8313(d). Proposed Rule                       requirements of the Act and the rules                 the proposed rule change will impose
                                                  8.18(d) provides that the Exchange must                 and regulations thereunder that are
                                                  provide notice to the public when a                     applicable to a national securities                     10 15 U.S.C. 78f(b).
                                                  disciplinary decision of the Exchange is                exchange, and, in particular, with the                  11 15 U.S.C. 78f(b)(1).
                                                  appealed to the Commission and the                      requirements of Section 6(b) of the                     12 15 U.S.C. 78f(b)(5).




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                                                  84634                    Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Notices

                                                  any burden on competition that is not                   Exchange would not be permitted to                    All submissions should refer to File
                                                  necessary or appropriate in furtherance                 publish its own complaint, prepared by                Number SR-BatsEDGA–2016–27. This
                                                  of the purposes of the Act. The                         FINRA, regarding the same conduct.                    file number should be included on the
                                                  proposed rule change is not intended to                 According to the Exchange, this would                 subject line if email is used. To help the
                                                  address competitive issues, but rather it               supply the public with an incomplete                  Commission process and review your
                                                  is designed to enhance the Exchange’s                   picture of the disciplinary proceedings,              comments more efficiently, please use
                                                  rules governing the release of                          the full nature of which could not be                 only one method. The Commission will
                                                  disciplinary complaints, decisions and                  disclosed until much later when a final               post all comments on the Commission’s
                                                  other information to the public, thereby                disciplinary decision is issued. The                  Internet Web site (http://www.sec.gov/
                                                  providing greater clarity and                           Exchange, therefore, believes that                    rules/sro.shtml). Copies of the
                                                  consistency and resulting in less                       waiver of the operative delay is                      submission, all subsequent
                                                  burdensome and more efficient                           consistent with the protection of                     amendments, all written statements
                                                  regulatory compliance and facilitating                  investors and the public interest, as it
                                                  performance of regulatory functions.                                                                          with respect to the proposed rule
                                                                                                          will allow the Exchange to immediately
                                                                                                                                                                change that are filed with the
                                                  C. Self-Regulatory Organization’s                       publish any disciplinary complaints or
                                                                                                          decisions that are filed or issued after              Commission, and all written
                                                  Statement on Comments on the                                                                                  communications relating to the
                                                  Proposed Rule Change Received From                      the proposal is filed. The Commission
                                                                                                          believes that waiver of the 30-day                    proposed rule change between the
                                                  Members, Participants or Others                                                                               Commission and any person, other than
                                                                                                          operative delay is consistent with the
                                                    The Exchange has not solicited, and                   protection of investors and the public                those that may be withheld from the
                                                  does not intend to solicit, comments on                 interest because it will allow EDGA to                public in accordance with the
                                                  this proposed rule change. The                          publish disciplinary complaints or                    provisions of 5 U.S.C. 552, will be
                                                  Exchange has not received any written                   decisions that have been filed or issued              available for Web site viewing and
                                                  comments from members or other                          without delay. Therefore, the                         printing in the Commission’s Public
                                                  interested parties.                                     Commission designates the proposed                    Reference Room, 100 F Street NE.,
                                                  III. Date of Effectiveness of the                       rule change to be operative upon                      Washington, DC 20549 on official
                                                  Proposed Rule Change and Timing for                     filing.16                                             business days between the hours of
                                                  Commission Action                                          At any time within 60 days of the                  10:00 a.m. and 3:00 p.m. Copies of such
                                                                                                          filing of the proposed rule change, the               filing also will be available for
                                                     Because the foregoing proposed rule
                                                                                                          Commission summarily may                              inspection and copying at the principal
                                                  change does not: (i) Significantly affect
                                                                                                          temporarily suspend such rule change if               office of the Exchange. All comments
                                                  the protection of investors or the public
                                                                                                          it appears to the Commission that such                received will be posted without change;
                                                  interest; (ii) impose any significant
                                                                                                          action is: (1) Necessary or appropriate in            the Commission does not edit personal
                                                  burden on competition; and (iii) become
                                                                                                          the public interest; (2) for the protection           identifying information from
                                                  operative for 30 days from the date on
                                                                                                          of investors; or (3) otherwise in                     submissions. You should submit only
                                                  which it was filed or such shorter time
                                                                                                          furtherance of the purposes of the Act.               information that you wish to make
                                                  as the Commission may designate, it has
                                                                                                          If the Commission takes such action, the              available publicly. All submissions
                                                  become effective pursuant to Section
                                                                                                          Commission shall institute proceedings                should refer to File Number SR–
                                                  19(b)(3)(A) of the Act 13 and paragraph
                                                                                                          to determine whether the proposed rule
                                                  (f)(6) of Rule 19b–4 thereunder.14                                                                            BatsEDGA–2016–27 and should be
                                                     A proposed rule change filed under                   should be approved or disapproved.
                                                                                                                                                                submitted on or before December 14,
                                                  Rule 19b–4(f)(6) normally does not                      IV. Solicitation of Comments                          2016.
                                                  become operative prior to 30 days after
                                                                                                            Interested persons are invited to                     For the Commission, by the Division of
                                                  the date of filing. However, Rule 19b–
                                                                                                          submit written data, views and                        Trading and Markets, pursuant to delegated
                                                  4(f)(6)(iii) 15 permits the Commission to
                                                                                                          arguments concerning the foregoing,                   authority.17
                                                  designate a shorter time if such action
                                                                                                          including whether the proposed rule                   Brent J. Fields,
                                                  is consistent with the protection of
                                                                                                          change is consistent with the Act.                    Secretary.
                                                  investors and the public interest. In its
                                                                                                          Comments may be submitted by any of
                                                  filing with the Commission, the                                                                               [FR Doc. 2016–28187 Filed 11–22–16; 8:45 am]
                                                                                                          the following methods:
                                                  Exchange requests that the Commission                                                                         BILLING CODE 8011–01–P
                                                  waive the 30-day operative delay. The                   Electronic Comments
                                                  Exchange states that FINRA performs
                                                                                                            • Use the Commission’s Internet
                                                  services for it under a Regulatory
                                                                                                          comment form (http://www.sec.gov/
                                                  Services Agreement (‘‘RSA’’), including
                                                                                                          rules/sro.shtml); or
                                                  the filing and prosecution of
                                                                                                            • Send an email to rule-comments@
                                                  disciplinary complaints on the
                                                                                                          sec.gov. Please include File Number SR–
                                                  Exchange’s behalf. FINRA also files and
                                                                                                          BatsEDGA–2016–27 on the subject line.
                                                  prosecutes disciplinary complaints on
                                                  its own behalf, sometimes on cases                      Paper Comments
                                                  involving identical or similar conduct to
                                                                                                            • Send paper comments in triplicate
                                                  the cases it brings on the Exchange’s
                                                                                                          to Secretary, Securities and Exchange
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                                                  behalf. Without the waiver, the
                                                                                                          Commission, 100 F Street NE.,
                                                  Exchange is concerned that FINRA
                                                                                                          Washington, DC 20549–1090.
                                                  might publish a complaint during the
                                                  30-day operative delay, and that the                       16 For purposes only of waiving the 30-day

                                                                                                          operative delay, the Commission also has
                                                    13 15 U.S.C. 78s(b)(3)(A).                            considered the proposed rule’s impact on
                                                    14 17 CFR 240.19b–4(f)(6).                            efficiency, competition, and capital formation. See
                                                    15 17 CFR 240.19b–4(f)(6)(iii).                       15 U.S.C. 78c(f).                                       17 17   CFR 200.30–3(a)(12).



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Document Created: 2016-11-23 05:30:36
Document Modified: 2016-11-23 05:30:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 84631 

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