81 FR 91979 - Self Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Web Site Data Publication Requirements and Clarify Certain Data Reporting Obligations Related to the Regulation NMS Plan To Implement a Tick Size Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 243 (December 19, 2016)
Federal Register Volume 81, Issue 243 (December 19, 2016)
| Page Range | 91979-91982 | |
| FR Document | 2016-30391 |
[Federal Register Volume 81, Number 243 (Monday, December 19, 2016)] [Notices] [Pages 91979-91982] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-30391] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79538; File No. SR-CHX-2016-21] Self Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Web Site Data Publication Requirements and Clarify Certain Data Reporting Obligations Related to the Regulation NMS Plan To Implement a Tick Size Pilot Program December 13, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given that on November 29, 2016, the Chicago Stock Exchange, Inc. (``CHX'' or the ``Exchange'') 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 Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change CHX proposes to amend Article 20, Rule 13(b) of the Rules of the Exchange (``CHX Rules'') to modify the Web site data publication requirements and clarify the Exchange's data reporting obligations relating to the Regulation NMS Plan to Implement a Tick Size Pilot Program. The text of this proposed rule change is available on the Exchange's Web site at (www.chx.com) and in 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 CHX included statements concerning the purpose of and basis for the proposed rule changes 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 CHX has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Changes 1. Purpose On August 25, 2014, the Exchange, and several other self-regulatory organizations (the ``Plan Participants''\3\) filed with the Commission, pursuant to Section 11A of the Act \4\ and Rule 608 of Regulation NMS thereunder,\5\ the Plan to Implement a Tick Size Pilot Program (the ``Plan'').\6\ The Plan Participants filed the Plan to comply with an order issued by the Commission on June 24, 2014.\7\ The Plan\8\ was published for comment in the Federal Register on November 7, 2014, and approved by the Commission, as modified, on May 6, 2015.\9\ The Commission approved the Pilot on a two-year basis, with implementation to begin no later than May 6, 2016.\10\ On November 6, 2015, the SEC exempted the Plan Participants from implementing the pilot until October 3, 2016.\11\ As set forth in Appendices B and C to the Plan, data that is reported pursuant to the appendices shall be provided for dates starting six months prior to the Pilot Period through six months after the end of the Pilot Period. Under the revised Pilot implementation date, the Pre-Pilot data collection period commenced on April 4, 2016. On September 13, 2016, the Commission exempted the Plan Participants from the requirement to fully implement the Pilot on October 3, 2016, to permit the Plan Participants to implement the pilot on a phased-in basis, as described in the Plan Participants' exemptive request.\12\ --------------------------------------------------------------------------- \3\ A ``Participant'' is a ``member'' of the Exchange for purposes of the Act. See CHX Article 1, Rule 1(s). For clarity, the Exchange proposes to utilize the term ``CHX Participant'' when referring to members of the Exchange and the term ``Plan Participant'' when referring to Participants of the Plan. \4\ 15 U.S.C. 78k-1. \5\ 17 CFR 242.608. \6\ See Letter from Brendon J. Weiss, Vice President, Intercontinental Exchange, Inc., to Secretary, Commission, dated August 25, 2014. \7\ See Securities Exchange Act Release No. 72460 (June 24, 2014), 79 FR 36840 (June 30, 2014). \8\ Unless otherwise specified, capitalized terms used in this rule filing are based on the defined terms of the Plan. \9\ See Securities Exchange Act Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015) (``Approval Order''). \10\ See Approval Order at 27533 and 27545. \11\ See Securities Exchange Act Release No. 76382 (November 6, 2015), 80 FR 70284 (November 13, 2015) (File No. 4-657). \12\ See Letter from David S. Shillman, Associate Director, Division of Trading and Markets, Commission, to Eric Swanson, EVP, General Counsel and Secretary, Bats Global Markets, Inc., dated September 13, 2016; see also Letter from Eric Swanson, EVP, General Counsel and Secretary, Bats Global Markets, Inc., to Brent J. Fields, Secretary, Commission, dated September 9, 2016. --------------------------------------------------------------------------- The Plan is designed to allow the Commission, market participants, and the public to study and assess the impact of increment conventions on the liquidity and trading of the common stocks of small- capitalization companies. Each Plan Participant is required to comply, and to enforce compliance by its members, as applicable, with the provisions of the Plan. On March 28, 2016, the Exchange filed with the Commission a proposed rule change to adopt Article 20, Rule 13(b), which was immediately effective upon filing, to implement the data collection requirements of the Plan, including requirements relating to Web site data publication.\13\ Specifically, current Article 20, Rule 13(b)(2)(A)(v) provides that the Exchange shall make Appendix B.I and B.II data of certain [[Page 91980]] CHX Participants that operate Trading Centers \14\ collected pursuant to current Article 20, Rule 13(b)(2)(A) publicly available on the Exchange Web site on a monthly basis at no charge and shall not identify the Trading Center that generated the data. Also, current Article 20, Rule 13(b)(B)(ii) provides that the Exchange shall make Appendix B.I and B.II data of the Exchange operated Trading Center collected pursuant to current Article 20, Rule 13(b)(2)(B)(i) publicly available on the Exchange Web site on a monthly basis at no charge and shall not identify the Trading Center that generated the data. In addition, current Article 20, Rule 13(b)(3)(C) provides that the Exchange shall make Appendix B.IV data collected pursuant to current Article 20, Rule 13(b)(3)(A) and (B) publicly available on the Exchange Web site on a monthly basis at no charge and shall not identify the Trading Center that generated the data. --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release No. 77469 (March 29, 2016), 81 FR 19275 (April 4, 2016) (SR-CHX-2016-03). \14\ The Plan incorporates the definition of a ``Trading Center'' from Rule 600(b)(78) of Regulation NMS. Regulation NMS defines a ``Trading Center'' as ``a national securities exchange or national securities association that operates an SRO trading facility, an alternative trading system, an exchange market maker, an OTC market maker, or any other broker or dealer that executes orders internally by trading as principal or crossing orders as agent.'' See 17 CFR 242.600(b). --------------------------------------------------------------------------- The Exchange is now proposing amendments to Article 20, Rule 13(b)(2)(A)(v) (regarding Appendix B.I and B.II data for Trading Centers operated by CHX Participants), Article 20, Rule 13(b)(2)(B)(ii) (regarding Appendix B.I and B.II data for the Exchange operated Trading Center) and Article 20, Rule 13(b)(3)(C) (regarding Appendix B.IV data) to provide that data required to be made available on the Exchange Web site be published within 120 calendar days following the month end. The Exchange also proposes to adopt new language under Article 20, Rule 13(b)(5) (regarding Appendix B.III data) that provides that the Exchange shall make its Appendix B.III data publicly available on the CHX Web site within 120 calendar days following month end at no charge and shall not identify the Trading Center that generated the data. Moreover, the Exchange is proposing to adopt Article 20, Rule 13(b)(4)(C) (regarding Appendix C data) to clarify that the Exchange, as a Designated Examining Authority (``DEA''), shall collect the data required by Item I of Appendix C to the Plan and current paragraph (b)(4)(A) for those CHX Participants that are Market Makers for which the Exchange is the DEA, and on a monthly basis transmit such data, categorized by the Control Group and each Test Group, to the SEC in a pipe delimited format. Also, in light of the recently proposed amendment to the Financial Industry Regulatory Authority (``FINRA'') Rule 6191(b)(4)(B),\15\ which provides, among other things, that FINRA shall aggregate and publish (i) Market Maker profitability statistics for Market Makers for which FINRA is the DEA; (ii) Market Maker profitability statistics collected from other Plan Participants that are DEAs; and (iii) Market Maker profitability statistics for Market Maker profitability statistics [sic] for Market Makers whose DEA is not a Plan Participant, the Exchange is proposing to adopt additional language that provides the Exchange, as DEA, shall also make the data collected pursuant to current paragraph (b)(4)(A) available to FINRA for aggregation and publication, categorized by the Control Group and each Test Group, on the FINRA Web site pursuant to FINRA Rules. --------------------------------------------------------------------------- \15\ See SR-FINRA-2016-042, filed November 15, 2016. --------------------------------------------------------------------------- Furthermore, the Exchange is proposing amendments to paragraph .08 of the Interpretations and Policies under Article 20, Rule 13(b) to conform its provisions to the above proposed changes. Specifically, amended paragraph. 08 would provide that with respect to data for the Pilot Period, the Exchange shall make the data collected pursuant to current paragraph (b)(4)(A) available to FINRA for aggregation and publication on the FINRA Web site pursuant to FINRA Rules and the Exchange will publish the data collected pursuant to current paragraphs (2) and (3) on the Exchange Web site, which shall commence at the beginning of the Pilot Period. Also, notwithstanding the provisions of amended paragraphs (b)(2)(A)(v), (b)(2)(B(ii) and (b)(3)(C), the Exchange shall make data for the Pre-Pilot Period publicly available on the Exchange's Web site pursuant to Appendix B to the Plan by February 28, 2017. The purpose of delaying the publication of the Web site data is to address confidentiality concerns by providing for the passage of additional time between the market information reflected in the data and the public availability of such information.\16\ In addition, the purpose of adopting language that the Exchange will transmit Appendix C data to the SEC for the Market Making activity of a CHX Participant for which the Exchange is the DEA is to clarify the Exchange's data reporting obligations pursuant to the Plan. Moreover, the purpose of explicitly stating that the Exchange will publish the relevant Appendix B data on its Web site and that FINRA will publish the relevant Appendix C data on its Web site is to conform CHX Rules to the Web site publication procedures recently proposed by FINRA.\17\ --------------------------------------------------------------------------- \16\ The Exchange understands that some Market Makers may utilize a DEA that is not a Plan Participant and that their Designated Examining Authority (``DEA'') would not be subject to the Plan's data collection requirements. Prior to this proposal, the Plan Participants implemented rules that required members that were Market Makers whose DEA is not a Plan Participant to transmit transaction data for Market Maker profitability calculations to FINRA. See e.g., Securities Exchange Act Release No. 77469 (March 29, 2016), 81 FR 19275 (April 4, 2016) (SR-CHX-2016-03). \17\ See supra note 15. --------------------------------------------------------------------------- The Exchange notes that the proposed rule change is similar to SR- FINRA-2016-042 in all material respects, except that the Exchange does not propose to adopt provisions regarding the calculation and public dissemination of Appendix C data as FINRA will be conducting that function on behalf of all Plan Participants. Also, the Exchange has filed the proposed rule change for immediate effectiveness and has requested that the Commission waive the 30-day operative delay. If the Commission waives the 30-day operative delay, the operative date of the proposed rule change will be the date of the filing. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \18\ in general, and furthers the objectives of Section 6(b)(5) of the Act \19\ in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest; and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f(b). \19\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that this proposal is consistent with the Act because it is designed to assist the Plan Participants in meeting their regulatory obligations pursuant to the Plan and is in furtherance of the objectives of the Plan, as identified by the SEC. The Exchange believes that the instant proposal is consistent with the Act in that it is designed to (1) address confidentiality concerns by permitting the Exchange to delay Web site publication to provide for passage of additional time between the market information reflected in the data and the [[Page 91981]] public availability of such information, (2) clarify the Exchange's data reporting obligations pursuant to the Plan and (3) conform CHX Rules to the Web site publication procedures recently proposed by FINRA.\20\ --------------------------------------------------------------------------- \20\ See supra note 15. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement of Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that the proposed rule change implements the provisions of the Plan, and is designed to assist the Plan Participants in meeting their regulatory obligations pursuant to the Plan. The proposal is intended to (1) address confidentiality concerns that may adversely impact competition by permitting the Exchange to delay Web site publication to provide for passage of additional time between the market information reflected in the data and the public availability of such information, (2) clarify the Exchange's data reporting obligations pursuant to the Plan and (3) conform CHX Rules with the Web site publication procedures recently proposed by FINRA.\21\ The Exchange notes that the proposed change will not affect the data reporting requirements for CHX Participants. The proposal also does not alter the information required to be submitted to the SEC. --------------------------------------------------------------------------- \21\ See supra note 15. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments Regarding the Proposed Rule Changes Received From Members, Participants or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Changes 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 upon filing pursuant to Section 19(b)(3)(A) of the Act \22\ and Rule 19b-4(f)(6) \23\ thereunder. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(3)(A). \23\ 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 the filing. However, pursuant to Rule 19b-4(f)(6)(iii), the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has filed the proposed rule change for immediate effectiveness and has requested that the Commission waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing so that it may become operative immediately. The Exchange notes that the proposed rule change implements the provisions of the Plan, and is designed to assist the Participants in meeting their regulatory obligations pursuant to the Plan. The proposal is intended to address confidentiality concerns by permitting the Exchange to (1) delay Web site publication to provide for passage of additional time between the market information reflected in the data and the public availability of such information; and (2) allow for FINRA to aggregate and publish Market Maker profitability data for all Participant DEAs. The Exchange notes that the proposed change will not affect the data reporting requirements for members for which CHX is the DEA. The proposal also does not alter the information required to be submitted to the Commission. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it will allow the Exchange to implement these proposed changes that are intended to address confidentiality concerns. The Commission notes that some Pilot data was scheduled to be published on November 30, 2016. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposed rule change to be operative on November 30, 2016.\24\ --------------------------------------------------------------------------- \24\ For purposes only of waiving the operative delay for this proposal, the Commission 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.\25\ If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \26\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \25\ 15 U.S.C. 78s(b)(3)(C). \26\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-CHX-2016-21 on the subject line. Paper Comments Send paper comments in triplicate to Robert W. Errett, Deputy Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-CHX-2016-21. 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 changes between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the CHX. 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 No. SR-CHX-2016-21 and should be submitted on or before January 9, 2017. --------------------------------------------------------------------------- \27\ 17 CFR 200.30-3(a)(12). [[Page 91982]] --------------------------------------------------------------------------- For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\27\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-30391 Filed 12-16-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 243 / Monday, December 19, 2016 / Notices 91979
rules/sro.shtml). Copies of the been prepared by the Exchange. The on June 24, 2014.7 The Plan8 was
submission, all subsequent Commission is publishing this notice to published for comment in the Federal
amendments, all written statements solicit comments on the proposed rule Register on November 7, 2014, and
with respect to the proposed rule change from interested persons. approved by the Commission, as
change that are filed with the modified, on May 6, 2015.9 The
Commission, and all written I. Self-Regulatory Organization’s Commission approved the Pilot on a
communications relating to the Statement of the Terms of Substance of two-year basis, with implementation to
proposed rule change between the the Proposed Rule Change begin no later than May 6, 2016.10 On
Commission and any person, other than November 6, 2015, the SEC exempted
those that may be withheld from the CHX proposes to amend Article 20, the Plan Participants from
public in accordance with the Rule 13(b) of the Rules of the Exchange implementing the pilot until October 3,
provisions of 5 U.S.C. 552, will be (‘‘CHX Rules’’) to modify the Web site 2016.11 As set forth in Appendices B
available for Web site viewing and data publication requirements and and C to the Plan, data that is reported
printing in the Commission’s Public clarify the Exchange’s data reporting pursuant to the appendices shall be
Reference Room, 100 F Street NE., obligations relating to the Regulation provided for dates starting six months
Washington, DC 20549, on official NMS Plan to Implement a Tick Size prior to the Pilot Period through six
business days between the hours of Pilot Program. months after the end of the Pilot Period.
10:00 a.m. and 3:00 p.m. Copies of the The text of this proposed rule change Under the revised Pilot implementation
filing also will be available for is available on the Exchange’s Web site date, the Pre-Pilot data collection period
inspection and copying at the principal at (www.chx.com) and in the commenced on April 4, 2016. On
office of the Exchange. All comments Commission’s Public Reference Room. September 13, 2016, the Commission
received will be posted without change; exempted the Plan Participants from the
the Commission does not edit personal II. Self-Regulatory Organization’s requirement to fully implement the Pilot
identifying information from Statement of the Purpose of, and on October 3, 2016, to permit the Plan
submissions. You should submit only Statutory Basis for, the Proposed Rule Participants to implement the pilot on a
information that you wish to make Change phased-in basis, as described in the Plan
available publicly. All submissions Participants’ exemptive request.12
should refer to File Number SR– In its filing with the Commission, the The Plan is designed to allow the
ISEGemini-2016–23 and should be CHX included statements concerning Commission, market participants, and
submitted on or before January 9, 2017. the purpose of and basis for the the public to study and assess the
For the Commission, by the Division of proposed rule changes and discussed impact of increment conventions on the
Trading and Markets, pursuant to delegated any comments it received on the liquidity and trading of the common
authority.20 proposed rule change. The text of these stocks of small-capitalization
Eduardo A. Aleman, statements may be examined at the companies. Each Plan Participant is
Assistant Secretary. places specified in Item IV below. The required to comply, and to enforce
[FR Doc. 2016–30394 Filed 12–16–16; 8:45 am] CHX has prepared summaries, set forth compliance by its members, as
in sections A, B and C below, of the applicable, with the provisions of the
BILLING CODE 8011–01–P
Plan.
most significant aspects of such On March 28, 2016, the Exchange
statements. filed with the Commission a proposed
SECURITIES AND EXCHANGE
COMMISSION A. Self-Regulatory Organization’s rule change to adopt Article 20, Rule
Statement of the Purpose of, and 13(b), which was immediately effective
[Release No. 34–79538; File No. SR–CHX– upon filing, to implement the data
Statutory Basis for, the Proposed Rule
2016–21] collection requirements of the Plan,
Changes
including requirements relating to Web
Self Regulatory Organizations; 1. Purpose site data publication.13 Specifically,
Chicago Stock Exchange, Inc.; Notice current Article 20, Rule 13(b)(2)(A)(v)
of Filing and Immediate Effectiveness On August 25, 2014, the Exchange, provides that the Exchange shall make
of a Proposed Rule Change To Modify and several other self-regulatory Appendix B.I and B.II data of certain
the Web Site Data Publication organizations (the ‘‘Plan Participants’’3)
Requirements and Clarify Certain Data filed with the Commission, pursuant to 7 See Securities Exchange Act Release No. 72460
Reporting Obligations Related to the Section 11A of the Act 4 and Rule 608 (June 24, 2014), 79 FR 36840 (June 30, 2014).
Regulation NMS Plan To Implement a of Regulation NMS thereunder,5 the
8 Unless otherwise specified, capitalized terms
Tick Size Pilot Program used in this rule filing are based on the defined
Plan to Implement a Tick Size Pilot terms of the Plan.
December 13, 2016. Program (the ‘‘Plan’’).6 The Plan 9 See Securities Exchange Act Release No. 74892
Pursuant to Section 19(b)(1) of the Participants filed the Plan to comply (May 6, 2015), 80 FR 27513 (May 13, 2015)
(‘‘Approval Order’’).
Securities Exchange Act of 1934 with an order issued by the Commission 10 See Approval Order at 27533 and 27545.
(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 11 See Securities Exchange Act Release No. 76382
notice is hereby given that on November 3 A ‘‘Participant’’ is a ‘‘member’’ of the Exchange (November 6, 2015), 80 FR 70284 (November 13,
29, 2016, the Chicago Stock Exchange, for purposes of the Act. See CHX Article 1, Rule 2015) (File No. 4–657).
12 See Letter from David S. Shillman, Associate
Inc. (‘‘CHX’’ or the ‘‘Exchange’’) filed 1(s). For clarity, the Exchange proposes to utilize
Director, Division of Trading and Markets,
sradovich on DSK3GMQ082PROD with NOTICES
the term ‘‘CHX Participant’’ when referring to
with the Securities and Exchange Commission, to Eric Swanson, EVP, General
members of the Exchange and the term ‘‘Plan
Commission (‘‘Commission’’) the Participant’’ when referring to Participants of the Counsel and Secretary, Bats Global Markets, Inc.,
proposed rule change as described in Plan. dated September 13, 2016; see also Letter from Eric
Items I and II below, which Items have 4 15 U.S.C. 78k–1.
Swanson, EVP, General Counsel and Secretary, Bats
Global Markets, Inc., to Brent J. Fields, Secretary,
5 17 CFR 242.608.
Commission, dated September 9, 2016.
20 17 CFR 200.30–3(a)(12). 6 See Letter from Brendon J. Weiss, Vice 13 See Securities Exchange Act Release No. 77469
1 15 U.S.C. 78s(b)(1). President, Intercontinental Exchange, Inc., to (March 29, 2016), 81 FR 19275 (April 4, 2016) (SR–
2 17 CFR 240.19b–4. Secretary, Commission, dated August 25, 2014. CHX–2016–03).
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CHX Participants that operate Trading delimited format. Also, in light of the addition, the purpose of adopting
Centers 14 collected pursuant to current recently proposed amendment to the language that the Exchange will
Article 20, Rule 13(b)(2)(A) publicly Financial Industry Regulatory Authority transmit Appendix C data to the SEC for
available on the Exchange Web site on (‘‘FINRA’’) Rule 6191(b)(4)(B),15 which the Market Making activity of a CHX
a monthly basis at no charge and shall provides, among other things, that Participant for which the Exchange is
not identify the Trading Center that FINRA shall aggregate and publish (i) the DEA is to clarify the Exchange’s data
generated the data. Also, current Article Market Maker profitability statistics for reporting obligations pursuant to the
20, Rule 13(b)(B)(ii) provides that the Market Makers for which FINRA is the Plan. Moreover, the purpose of
Exchange shall make Appendix B.I and DEA; (ii) Market Maker profitability explicitly stating that the Exchange will
B.II data of the Exchange operated statistics collected from other Plan publish the relevant Appendix B data
Trading Center collected pursuant to Participants that are DEAs; and (iii) on its Web site and that FINRA will
current Article 20, Rule 13(b)(2)(B)(i) Market Maker profitability statistics for publish the relevant Appendix C data
publicly available on the Exchange Web Market Maker profitability statistics [sic] on its Web site is to conform CHX Rules
site on a monthly basis at no charge and for Market Makers whose DEA is not a to the Web site publication procedures
shall not identify the Trading Center Plan Participant, the Exchange is recently proposed by FINRA.17
that generated the data. In addition, proposing to adopt additional language The Exchange notes that the proposed
current Article 20, Rule 13(b)(3)(C) that provides the Exchange, as DEA, rule change is similar to SR–FINRA–
provides that the Exchange shall make shall also make the data collected 2016–042 in all material respects,
Appendix B.IV data collected pursuant pursuant to current paragraph (b)(4)(A) except that the Exchange does not
to current Article 20, Rule 13(b)(3)(A) available to FINRA for aggregation and propose to adopt provisions regarding
and (B) publicly available on the publication, categorized by the Control the calculation and public
Exchange Web site on a monthly basis Group and each Test Group, on the dissemination of Appendix C data as
at no charge and shall not identify the FINRA Web site pursuant to FINRA FINRA will be conducting that function
Trading Center that generated the data. Rules. on behalf of all Plan Participants. Also,
The Exchange is now proposing Furthermore, the Exchange is the Exchange has filed the proposed
amendments to Article 20, Rule proposing amendments to paragraph .08 rule change for immediate effectiveness
13(b)(2)(A)(v) (regarding Appendix B.I of the Interpretations and Policies under and has requested that the Commission
and B.II data for Trading Centers Article 20, Rule 13(b) to conform its waive the 30-day operative delay. If the
operated by CHX Participants), Article provisions to the above proposed Commission waives the 30-day
20, Rule 13(b)(2)(B)(ii) (regarding changes. Specifically, amended operative delay, the operative date of
Appendix B.I and B.II data for the paragraph. 08 would provide that with the proposed rule change will be the
Exchange operated Trading Center) and respect to data for the Pilot Period, the date of the filing.
Article 20, Rule 13(b)(3)(C) (regarding Exchange shall make the data collected
Appendix B.IV data) to provide that 2. Statutory Basis
pursuant to current paragraph (b)(4)(A)
data required to be made available on available to FINRA for aggregation and The Exchange believes that its
the Exchange Web site be published publication on the FINRA Web site proposal is consistent with Section 6(b)
within 120 calendar days following the pursuant to FINRA Rules and the of the Act 18 in general, and furthers the
month end. The Exchange also proposes Exchange will publish the data collected objectives of Section 6(b)(5) of the Act 19
to adopt new language under Article 20, pursuant to current paragraphs (2) and in particular, in that it is designed to
Rule 13(b)(5) (regarding Appendix B.III (3) on the Exchange Web site, which promote just and equitable principles of
data) that provides that the Exchange shall commence at the beginning of the trade, to foster cooperation and
shall make its Appendix B.III data Pilot Period. Also, notwithstanding the coordination with persons engaged in
publicly available on the CHX Web site provisions of amended paragraphs facilitating transactions in securities, to
within 120 calendar days following (b)(2)(A)(v), (b)(2)(B(ii) and (b)(3)(C), the remove impediments to and perfect the
month end at no charge and shall not Exchange shall make data for the Pre- mechanism of a free and open market
identify the Trading Center that Pilot Period publicly available on the and a national market system and, in
generated the data. Exchange’s Web site pursuant to general, to protect investors and the
Moreover, the Exchange is proposing Appendix B to the Plan by February 28, public interest; and are not designed to
to adopt Article 20, Rule 13(b)(4)(C) 2017. permit unfair discrimination between
(regarding Appendix C data) to clarify The purpose of delaying the customers, issuers, brokers, or dealers.
that the Exchange, as a Designated publication of the Web site data is to The Exchange believes that this
Examining Authority (‘‘DEA’’), shall address confidentiality concerns by proposal is consistent with the Act
collect the data required by Item I of providing for the passage of additional because it is designed to assist the Plan
Appendix C to the Plan and current time between the market information Participants in meeting their regulatory
paragraph (b)(4)(A) for those CHX reflected in the data and the public obligations pursuant to the Plan and is
Participants that are Market Makers for availability of such information.16 In in furtherance of the objectives of the
which the Exchange is the DEA, and on Plan, as identified by the SEC. The
a monthly basis transmit such data, 15 See SR–FINRA–2016–042, filed November 15, Exchange believes that the instant
categorized by the Control Group and 2016. proposal is consistent with the Act in
each Test Group, to the SEC in a pipe 16 The Exchange understands that some Market
that it is designed to (1) address
Makers may utilize a DEA that is not a Plan confidentiality concerns by permitting
Participant and that their Designated Examining
sradovich on DSK3GMQ082PROD with NOTICES
14 The Plan incorporates the definition of a
Authority (‘‘DEA’’) would not be subject to the the Exchange to delay Web site
‘‘Trading Center’’ from Rule 600(b)(78) of
Regulation NMS. Regulation NMS defines a Plan’s data collection requirements. Prior to this publication to provide for passage of
‘‘Trading Center’’ as ‘‘a national securities exchange proposal, the Plan Participants implemented rules additional time between the market
or national securities association that operates an that required members that were Market Makers information reflected in the data and the
SRO trading facility, an alternative trading system, whose DEA is not a Plan Participant to transmit
an exchange market maker, an OTC market maker, transaction data for Market Maker profitability
17 See supra note 15.
or any other broker or dealer that executes orders calculations to FINRA. See e.g., Securities Exchange
18 15 U.S.C. 78f(b).
internally by trading as principal or crossing orders Act Release No. 77469 (March 29, 2016), 81 FR
as agent.’’ See 17 CFR 242.600(b). 19275 (April 4, 2016) (SR–CHX–2016–03). 19 15 U.S.C. 78f(b)(5).
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![91982 Federal Register / Vol. 81, No. 243 / Monday, December 19, 2016 / Notices
For the Commission, by the Division of approximately $13.03 (i.e., $11,050/848 (‘‘Exchange Act’’) (15 U.S.C. 78m or
Trading and Markets, pursuant to delegated responses). 78o(d)). The information provided by
authority.27 Written comments are invited on: (a) Form 10–K is intended to ensure the
Eduardo A. Aleman, whether the proposed collection of adequacy of information available to
Assistant Secretary. information is necessary for the proper investors and securities markets about
[FR Doc. 2016–30391 Filed 12–16–16; 8:45 am] performance of the functions of the an issuer. Form 10–K takes
BILLING CODE 8011–01–P Commission, including whether the approximately 2003.7884 hours per
information shall have practical utility; response to prepare and is filed by
(b) the accuracy of the Commission’s approximately 8,137 respondents. We
SECURITIES AND EXCHANGE estimates of the burden of the proposed estimate that 75% of the approximately
COMMISSION collection of information; (c) ways to 2003.7884 hours per response
enhance the quality, utility, and clarity (1,502.8413 hours) is prepared by the
Proposed Collection; Comment of the information to be collected; and company for an annual reporting burden
Request (d) ways to minimize the burden of the of 12,228,620 hours (1,502.8413 hours
Upon Written Request, Copies Available collection of information on per response × 8,137 responses).
From: Securities and Exchange respondents, including through the use An agency may not conduct or
Commission, Office of FOIA Services, of automated collection techniques or sponsor, and a person is not required to
100 F Street NE., Washington, DC other forms of information technology. respond to, a collection of information
20549–2736. Consideration will be given to unless it displays a currently valid
Extension: comments and suggestions submitted in control number.
Rule 104, SEC File No. 270–411, OMB writing within 60 days of this The public may view the background
Control No. 3235–0465. publication. documentation for this information
An agency may not conduct or collection at the following Web site,
Notice is hereby given that pursuant
sponsor, and a person is not required to www.reginfo.gov. Comments should be
to the Paperwork Reduction Act of 1995
respond to, a collection of information directed to: (i) Desk Officer for the
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
under the PRA unless it displays a Securities and Exchange Commission,
Securities and Exchange Commission
currently valid OMB control number. Office of Information and Regulatory
(‘‘Commission’’) is soliciting comments
Please direct your written comments Affairs, Office of Management and
on the existing collection of information
to: Pamela Dyson, Director/Chief Budget, Room 10102, New Executive
provided for in Rule 104 of Regulation
Information Officer, Securities and Office Building, Washington, DC 20503,
M (17 CFR 242.104), under the
Exchange Commission, c/o Remi Pavlik- or by sending an email to: Shagufta_
Securities Exchange Act of 1934 (15
Simon, 100 F Street NE., Washington, Ahmed@omb.eop.gov; and (ii) Pamela
U.S.C. 78a et seq.). The Commission
DC 20549 or send an email to: Dyson, Director/Chief Information
plans to submit this existing collection
PRA_Mailbox@sec.gov. Officer, Securities and Exchange
of information to the Office of
Management and Budget (‘‘OMB’’) for Dated: December 6, 2016. Commission, c/o Remi Pavlik-Simon,
extension and approval. Brent J. Fields, 100 F Street NE., Washington, DC 20549
Rule 104—Stabilizing and Other Secretary.
or send an email to: PRA_Mailbox@
Activities in Connection with an sec.gov. Comments must be submitted to
[FR Doc. 2016–30373 Filed 12–16–16; 8:45 am]
Offering—permits stabilizing by a OMB within 30 days of this notice.
BILLING CODE 8011–01–P
distribution participant during a Dated: December 6, 2016.
distribution so long as the distribution Brent J. Fields,
participant discloses information to the SECURITIES AND EXCHANGE Secretary.
market and investors. This rule requires COMMISSION [FR Doc. 2016–30376 Filed 12–16–16; 8:45 am]
disclosure in offering materials of the BILLING CODE 8011–01–P
potential stabilizing transactions and Submission for OMB Review;
that the distribution participant inform Comment Request
the market when a stabilizing bid is SECURITIES AND EXCHANGE
Upon Written Request Copies Available
made. It also requires the distribution COMMISSION
From: Securities and Exchange
participants (i.e., the syndicate manager)
Commission, Office of FOIA Services, [Release No. 34–79539; File No. SR–
to maintain information regarding
100 F Street NE., Washington, DC ISEMercury–2016–25]
syndicate covering transactions and
20549–2736.
penalty bids and disclose such Self-Regulatory Organizations; ISE
information to the Self-Regulatory Extension:
Form 10–K, SEC File No. 270–48, OMB Mercury LLC; Notice of Filing of
Organization (SRO). Proposed Rule Change to Amend ISE
There are approximately 848 Control No. 3235–0063.
Mercury Rule 723 and To Make Pilot
respondents per year that require an Notice is hereby given that, pursuant Program Permanent
aggregate total of 170 hours to comply to the Paperwork Reduction Act of 1995
with this rule. Each respondent makes (44 U.S.C. 3501 et seq.), the Securities December 13, 2016
an estimated 1 annual response. Each and Exchange Commission Pursuant to Section 19(b)(1) of the
response takes approximately 0.20 (‘‘Commission’’) has submitted to the Securities Exchange Act of 1934 (the
hours (12 minutes) to complete. Thus,
sradovich on DSK3GMQ082PROD with NOTICES
Office of Management and Budget this ‘‘Act’’),1 and Rule 19b–4 thereunder,2
the total compliance burden per year is request for extension of the previously notice is hereby given that on December
170 hours. The total estimated internal approved collection of information 12, 2016, ISE Mercury, LLC (the
labor cost of compliance for the discussed below. ‘‘Exchange’’ or ‘‘ISE Mercury’’) filed
respondents is approximately Form 10–K (17 CFR 249.310) is filed with the Securities and Exchange
$11,050.00 per year, resulting in an by issuers of securities to satisfy their
estimated cost of compliance for each annual reporting obligations under to 1 15 U.S.C. 78s(b)(1).
respondent per response of Section 13 or 15(d) of the Exchange Act 2 17 CFR 240.19b–4.
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Document Created: 2016-12-17 03:15:05
Document Modified: 2016-12-17 03:15:05
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 91979 |
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