81_FR_88525 81 FR 88290 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Price Improvement Program Until December 1, 2017

81 FR 88290 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Price Improvement Program Until December 1, 2017

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 235 (December 7, 2016)

Page Range88290-88291
FR Document2016-29293

Federal Register, Volume 81 Issue 235 (Wednesday, December 7, 2016) 
[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88290-88291]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29293]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79448; File No. SR-BX-2014-048]


Self-Regulatory Organizations; NASDAQ BX, Inc.; Order Granting an 
Extension to Limited Exemption From Rule 612(c) of Regulation NMS in 
Connection With the Exchange's Retail Price Improvement Program Until 
December 1, 2017

December 1, 2016.
    On November 28, 2014, the Commission issued an order pursuant to 
its authority under Rule 612(c) of Regulation NMS \1\ (``Sub-Penny 
Rule'') that granted the NASDAQ BX, Inc. (``BX'' or ``Exchange'') a 
limited exemption from the Sub-Penny Rule in connection with the 
operation of the Exchange's Retail Price Improvement Program (``RPI 
Program'').\2\ The limited exemption was granted concurrently with the 
Commission's approval of the Exchange's proposal to adopt the RPI 
Program on a one-year pilot term.\3\ On November 20, 2015, the 
Commission extended the temporary exemption until December 2016 
concurrently with an immediately effective filing that extended the 
operation of the RPI Program until December 1, 2016.\4\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 73702, 79 FR 72049 
(December 4, 2014), (SR-BX-2014-048) (``RPI Approval Order'').
    \3\ See id.
    \4\ See Securities Exchange Act Release No. 76495, 80 FR 74185 
(November 27, 2015), (SR-BX-2014-048).
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    The Exchange now seeks to extend the exemption until December 1, 
2017.\5\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the RPI 
Program until December 1, 2017.\6\ In its request to extend the 
exemption, the Exchange notes that given the gradual implementation of 
the RPI Program and the preliminary participation and results, 
extending the exemption would provide additional opportunities for 
greater participation and assessment of the results. Accordingly, the 
Exchange has asked for additional time to allow it and the Commission 
to analyze data concerning the RPI Program that the Exchange has 
committed to provide to the Commission.\7\
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    \5\ See SR-BX-2016-065; see also Letter from Jeffrey Davis, Vice 
President and Deputy General Counsel and Secretary, NASDAQ BX, Inc. 
to Brent J. Fields, Secretary, and Securities and Exchange 
Commission, dated November 22, 2016 (``BX Letter'').
    \6\ See SR-BX-2016-065.
    \7\ See e.g., BX Letter; SR-BX-2016-065; RPI Approval Order, 
supra note 2.
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    For this reason and the reasons stated in the RPI Approval Order 
originally granting the limited exemption, the Commission, pursuant to 
its authority under Rule 612(c) of Regulation NMS, finds that extending 
the exemption is appropriate in the public interest and consistent with 
the protection of investors.
    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted an extension of the limited 
exemption from Rule 612 of Regulation NMS that allows the Exchange to 
accept and rank orders priced equal to or greater than $1.00 per share 
in increments of $0.001, in connection with the operation of its RPI 
Program, until December 1, 2017.

[[Page 88291]]

    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Act. Responsibility for compliance with any 
applicable provisions of the Federal securities laws must rest with the 
persons relying on the exemption that are the subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(83).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-29293 Filed 12-6-16; 8:45 am]
 BILLING CODE 8011-01-P

88290 Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices system, and, in general, protecting file number should be included on the (‘‘BX’’ or ‘‘Exchange’’) a limited investors and the public interest. subject line if email is used. To help the exemption from the Sub-Penny Rule in Commission process and review your connection with the operation of the B. Self-Regulatory Organization’s comments more efficiently, please use Exchange’s Retail Price Improvement Statement on Burden on Competition only one method. The Commission will Program (‘‘RPI Program’’).2 The limited The Exchange does not believe that post all comments on the Commission’s exemption was granted concurrently the proposed rule change will result in Internet Web site (http://www.sec.gov/ with the Commission’s approval of the any burden on competition that is not rules/sro.shtml). Copies of the Exchange’s proposal to adopt the RPI necessary or appropriate in furtherance submission, all subsequent Program on a one-year pilot term.3 On of the purposes of the Act, as amended. amendments, all written statements November 20, 2015, the Commission To the contrary, the Exchange believes with respect to the proposed rule extended the temporary exemption until that the [sic] will not impose any change that are filed with the December 2016 concurrently with an burden on competition as the changes Commission, and all written immediately effective filing that are purely clerical and do not amend communications relating to the extended the operation of the RPI and [sic] fee or rebate. proposed rule change between the Program until December 1, 2016.4 C. Self-Regulatory Organization’s Commission and any person, other than The Exchange now seeks to extend Statement on Comments on the those that may be withheld from the the exemption until December 1, 2017.5 Proposed Rule Change Received From public in accordance with the The Exchange’s request was made in Members, Participants, or Others provisions of 5 U.S.C. 552, will be conjunction with an immediately available for Web site viewing and effective filing that extends the The Exchange has not solicited, and printing in the Commission’s Public operation of the RPI Program until does not intend to solicit, comments on Reference Room, 100 F Street NE., December 1, 2017.6 In its request to this proposed rule change. The Washington, DC 20549 on official extend the exemption, the Exchange Exchange has not received any written business days between the hours of notes that given the gradual comments from members or other 10:00 a.m. and 3:00 p.m. Copies of such implementation of the RPI Program and interested parties. filing also will be available for the preliminary participation and III. Date of Effectiveness of the inspection and copying at the principal results, extending the exemption would Proposed Rule Change and Timing for office of the Exchange. All comments provide additional opportunities for Commission Action received will be posted without change; greater participation and assessment of the Commission does not edit personal the results. Accordingly, the Exchange The foregoing rule change has become identifying information from has asked for additional time to allow it effective pursuant to Section 19(b)(3)(A) submissions. You should submit only and the Commission to analyze data of the Act 8 and paragraph (f) of Rule information that you wish to make concerning the RPI Program that the 19b–4 thereunder.9 At any time within available publicly. All submissions Exchange has committed to provide to 60 days of the filing of the proposed rule should refer to File Number SR– the Commission.7 change, the Commission summarily may BatsEDGA–2016–29, and should be For this reason and the reasons stated temporarily suspend such rule change if submitted on or before December 28, in the RPI Approval Order originally it appears to the Commission that such 2016. granting the limited exemption, the action is necessary or appropriate in the public interest, for the protection of For the Commission, by the Division of Commission, pursuant to its authority investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated under Rule 612(c) of Regulation NMS, authority.10 finds that extending the exemption is the purposes of the Act. Brent J. Fields, appropriate in the public interest and IV. Solicitation of Comments Secretary. consistent with the protection of Interested persons are invited to [FR Doc. 2016–29283 Filed 12–6–16; 8:45 am] investors. submit written data, views, and BILLING CODE 8011–01–P Therefore, it is hereby ordered that, arguments concerning the foregoing, pursuant to Rule 612(c) of Regulation including whether the proposed rule NMS, the Exchange is granted an change is consistent with the Act. SECURITIES AND EXCHANGE extension of the limited exemption from Comments may be submitted by any of COMMISSION Rule 612 of Regulation NMS that allows the following methods: the Exchange to accept and rank orders [Release No. 34–79448; File No. SR–BX– 2014–048] priced equal to or greater than $1.00 per Electronic Comments share in increments of $0.001, in • Use the Commission’s Internet Self-Regulatory Organizations; connection with the operation of its RPI comment form (http://www.sec.gov/ NASDAQ BX, Inc.; Order Granting an Program, until December 1, 2017. rules/sro.shtml); or Extension to Limited Exemption From • Send an email to rule-comments@ Rule 612(c) of Regulation NMS in 2 See Securities Exchange Act Release No. 73702, sec.gov. Please include File Number SR– Connection With the Exchange’s Retail 79 FR 72049 (December 4, 2014), (SR–BX–2014– BatsEDGA–2016–29 on the subject line. 048) (‘‘RPI Approval Order’’). Price Improvement Program Until 3 See id. Paper Comments December 1, 2017 4 See Securities Exchange Act Release No. 76495, 80 FR 74185 (November 27, 2015), (SR–BX–2014– • Send paper comments in triplicate asabaliauskas on DSK3SPTVN1PROD with NOTICES December 1, 2016. 048). to Secretary, Securities and Exchange On November 28, 2014, the 5 See SR–BX–2016–065; see also Letter from Commission, 100 F Street NE., Commission issued an order pursuant to Jeffrey Davis, Vice President and Deputy General Washington, DC 20549–1090. its authority under Rule 612(c) of Counsel and Secretary, NASDAQ BX, Inc. to Brent J. Fields, Secretary, and Securities and Exchange All submissions should refer to File Regulation NMS 1 (‘‘Sub-Penny Rule’’) Commission, dated November 22, 2016 (‘‘BX Number SR–BatsEDGA–2016–29. This that granted the NASDAQ BX, Inc. Letter’’). 6 See SR–BX–2016–065. 8 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 200.30–3(a)(12). 7 See e.g., BX Letter; SR–BX–2016–065; RPI 9 17 CFR 240.19b–4(f). 1 17 CFR 242.612(c). Approval Order, supra note 2. VerDate Sep<11>2014 17:54 Dec 06, 2016 Jkt 241001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1

Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices 88291 The limited and temporary exemption II. Self-Regulatory Organization’s Clear Credit), 26M–315 (Terms of the extended by this Order is subject to Statement of the Purpose of, and Cleared STAC Contract), 26M–316 modification or revocation if at any time Statutory Basis for, the Proposed Rule (Relevant Physical Settlement Matrix the Commission determines that such Change Updates), 26M–502 (Specified Actions), action is necessary or appropriate in In its filing with the Commission, ICC and 26M–616 (Contract Modification) furtherance of the purposes of the Act. included statements concerning the reflect or incorporate the basic contract Responsibility for compliance with any purpose of and basis for the proposed specifications for STAC Contracts and applicable provisions of the Federal rule change and discussed any are substantially the same as under securities laws must rest with the Subchapter 26G of the ICC Rules. comments it received on the proposed STAFC Contracts have similar terms persons relying on the exemption that rule change. The text of these statements to the Standard European Financial are the subject of this Order. may be examined at the places specified Corporate Single Name CDS contracts For the Commission, by the Division of in Item IV below. ICC has prepared (‘‘STEFC Contracts’’) currently cleared Trading and Markets, pursuant to delegated summaries, set forth in sections (A), (B), by ICC and governed by Subchapter 26H authority.8 and (C) below, of the most significant of the ICC Rules. Accordingly, the aspects of these statements. proposed rules found in Subchapter Brent J. Fields, Secretary. (A) Self-Regulatory Organization’s 26N largely mirror the ICC Rules for [FR Doc. 2016–29293 Filed 12–6–16; 8:45 am] Statement of the Purpose of, and STEFC Contracts in Subchapter 26H, Statutory Basis for, the Proposed Rule with certain modifications that reflect BILLING CODE 8011–01–P Change differences in terms and market conventions between those contracts The purpose of the proposed rule and STAFC Contracts. STAFC Contracts SECURITIES AND EXCHANGE change is to adopt rules that will will be denominated in United States COMMISSION provide the basis for ICC to clear Dollars. additional credit default swap contracts. ICC Rule 26N–102 (Definitions) sets [Release No. 34–79439; File No. SR–ICC– Specifically, ICC proposes amending forth the definitions used for the STAFC 2016–014] Chapter 26 of the ICC Rules to add Contracts. The definitions are Subchapters 26M and 26N to provide substantially the same as the definitions Self-Regulatory Organizations; ICE for the clearance of STAC and STAFC found in Subchapter 26H of the ICC Clear Credit LLC; Notice of Filing of Contracts, respectively. ICC believes the Rules, other than certain conforming Proposed Rule Change To Provide for addition of these contracts will benefit changes. ICC Rules 26N–203 the Clearance of Additional Credit the market for credit default swaps by (Restriction on Activity), 26N–206 Default Swap Contracts providing market participants the (Notices Required of Participants with benefits of clearing, including reduction respect to STAFC Contracts), 26N–303 December 1, 2016. in counterparty risk and safeguarding of (STAFC Contract Adjustments), 26N– Pursuant to Section 19(b)(1) of the margin assets pursuant to clearing house 309 (Acceptance of STAFC Contracts by rules. Clearing of the additional STAC ICE Clear Credit), 26N–315 (Terms of Securities Exchange Act of 1934 and STAFC Contracts will not require the Cleared STAFC Contract), 26N–316 (‘‘Act’’) 1 and Rule 19b–4 thereunder 2 any changes to ICC’s Risk Management (Relevant Physical Settlement Matrix notice is hereby given that on November Framework or other policies and 18, 2016, ICE Clear Credit LLC (‘‘ICC’’) Updates), 26N–502 (Specified Actions), procedures constituting rules within the and 26N–616 (Contract Modification) filed with the Securities and Exchange meaning of the Securities Exchange Act reflect or incorporate the basic contract Commission (‘‘Commission’’) the of 1934 (‘‘Act’’). specifications for STAFC Contracts and proposed rule change as described in STAC Contracts have similar terms to are substantially the same as under Items I, II, and III below, which Items the Standard European Corporate Single Subchapter 26H of the ICC Rules. have been prepared primarily by ICC. Name CDS contracts (‘‘STEC Contracts’’) Section 17A(b)(3)(F) of the Act 3 The Commission is publishing this currently cleared by ICC and governed requires, among other things, that the notice to solicit comments on the by Subchapter 26G of the ICC Rules. rules of a clearing agency be designed to proposed rule change from interested Accordingly, the proposed rules found promote the prompt and accurate persons. in Subchapter 26M largely mirror the clearance and settlement of securities ICC Rules for STEC Contracts in transactions and, to the extent I. Self-Regulatory Organization’s Subchapter 26G, with certain applicable, derivative agreements, Statement of the Terms of Substance of modifications that reflect differences in contracts, and transactions and to the Proposed Rule Change terms and market conventions between comply with the provisions of the Act The principal purpose of the those contracts and STAC Contracts. and the rules and regulations proposed rule change is to revise the STAC Contracts will be denominated in thereunder. The STAC and STAFC United States Dollars. Contracts proposed for clearing are ICC Rulebook (the ‘‘Rules’’) to provide ICC Rule 26M–102 (Definitions) sets similar to the STEC and STEFC for the clearance of Standard Australian forth the definitions used for the STAC Contracts currently cleared by ICC, and Corporate Single Name CDS contracts Contracts. The definitions are will be cleared pursuant to ICC’s (collectively, ‘‘STAC Contracts’’) and substantially the same as the definitions existing clearing arrangements and asabaliauskas on DSK3SPTVN1PROD with NOTICES Standard Australian Financial Corporate found in Subchapter 26G of the ICC related financial safeguards, protections Single Name CDS contracts Rules, other than certain conforming and risk management procedures. (collectively, ‘‘STAFC Contracts’’). changes. ICC Rules 26M–203 Clearing of the STAC and STAFC (Restriction on Activity), 26M–206 Contracts will allow market participants (Notices Required of Participants with an increased ability to manage risk and 8 17 CFR 200.30–3(a)(83). respect to STAC Contracts), 26M–303 ensure the safeguarding of margin assets 1 15 U.S.C. 78s(b)(1). (STAC Contract Adjustments), 26M–309 2 17 CFR 240.19b–4. (Acceptance of STAC Contracts by ICE 3 15 U.S.C. 78q–1(b)(3)(F). VerDate Sep<11>2014 17:54 Dec 06, 2016 Jkt 241001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1


Document Created: 2016-12-07 05:31:52
Document Modified: 2016-12-07 05:31:52
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 88290 
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