81 FR 92883 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 244 (December 20, 2016)
Federal Register Volume 81, Issue 244 (December 20, 2016)
| Page Range | 92883-92885 | |
| FR Document | 2016-30554 |
[Federal Register Volume 81, Number 244 (Tuesday, December 20, 2016)] [Notices] [Pages 92883-92885] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-30554] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79548; File No. SR-CBOE-2016-085] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule December 14, 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 December 1, 2016, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule. The text of the proposed rule change is also available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fees Schedule. Specifically, the Exchange proposes to increase the transaction fee for electronic executions by broker-dealers, non-Trading Permit Holder (``non-TPH'') Market-Makers, Professionals/Voluntary Professionals and Joint Back- Offices (``JBOs'') in Penny Pilot equity, ETF, ETN and index options (excluding Underlying Symbol List A) classes from $0.45 per contract to $0.47 per contract. The Exchange notes that this increase is in line with the amount assessed by another exchange for similar transactions.\3\ --------------------------------------------------------------------------- \3\ See e.g., NASDAQ PHLX Pricing Schedule, Section II, Multiply Listed Options Fees. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\4\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \5\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and 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 [[Page 92884]] investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\6\ which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). \6\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- Increasing the fee for electronic executions by broker-dealers, non-TPH Market-Makers, Professionals/Voluntary Professionals and JBOs in Penny Pilot equity, ETF, ETN and index options (excluding Underlying Symbol List A) classes is reasonable because the proposed fee amount is in line with the amount assessed by another exchange for similar transactions.\7\ The Exchange believes that this proposed change is also equitable and not unfairly discriminatory because the Exchange will assess broker-dealers, non-TPH Market-Makers, Professionals/ Voluntary Professionals and JBOs the same electronic options transaction fees in Penny Pilot options classes. The Exchange notes that it does not assess Customers the electronic options transaction fees in Penny Pilot options because Customer order flow enhances liquidity on the Exchange for the benefit of all market participants. Specifically, Customer liquidity benefits all market participants by providing more trading opportunities, which attracts Market-Makers. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants. The Exchange notes that Market-Makers are assessed lower electronic options transaction fees in Penny Pilot options as compared to Professionals, JBOs, Broker Dealers and non-Trading Permit Holder Market-Makers because they have obligations to the market and regulatory requirements, which normally do not apply to other market participants (e.g., obligations to make continuous markets). Clearing Trading Permit Holder Proprietary orders are assessed lower options transaction fees in Penny Pilot options because they also have obligations, which normally do not apply to other market participants (e.g., must have higher capital requirements, clear trades for other market participants, must be members of OCC). Accordingly, the differentiation between electronic transaction fees for Customers, Market-Makers, Clearing Trading Permit Holders and other market participants recognizes the differing obligations and contributions made to the liquidity and trading environment on the Exchange by these market participants. --------------------------------------------------------------------------- \7\ See NASDAQ PHLX Pricing Schedule, Section II, Multiply Listed Options Fees. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that are [sic] not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because, while the proposed fee increase applies only to certain market participants, the other market participants have different obligations and different circumstances (as described in the ``Statutory Basis'' section above). For example, Clearing TPHs have clearing obligations that other market participants do not have. Market-Makers have quoting obligations that other market participants do not have. There is also a history in the options markets of providing preferential treatment to Customers. The Exchange does not believe that the proposed change will cause any unnecessary burden on intermarket competition because the proposed change only affects trading on CBOE. To the extent that the proposed changes make CBOE a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become CBOE market participants. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http:// www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CBOE-2016-085 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-CBOE-2016-085. 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2016-085, and should be submitted on or before January 10, 2017. --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). [[Page 92885]] --------------------------------------------------------------------------- For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-30554 Filed 12-19-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Notices 92883
DATES: Effective date: December 20, Regulatory Commission to add a and at the Commission’s Public
2016. domestic shipping services contract to Reference Room.
FOR FURTHER INFORMATION CONTACT:
the list of Negotiated Service
II. Self-Regulatory Organization’s
Elizabeth A. Reed, 202–268–3179. Agreements in the Mail Classification
Statement of the Purpose of, and
Schedule’s Competitive Products List.
SUPPLEMENTARY INFORMATION: The Statutory Basis for, the Proposed Rule
DATES: Effective date: December 20,
United States Postal Service® hereby Change
2016.
gives notice that, pursuant to 39 U.S.C. In its filing with the Commission, the
3642 and 3632(b)(3), on December 13, FOR FURTHER INFORMATION CONTACT: Exchange included statements
2016, it filed with the Postal Regulatory Elizabeth A. Reed, 202–268–3179. concerning the purpose of and basis for
Commission a Request of the United SUPPLEMENTARY INFORMATION: The the proposed rule change and discussed
States Postal Service to Add Priority United States Postal Service® hereby any comments it received on the
Mail Contract 270 to Competitive gives notice that, pursuant to 39 U.S.C. proposed rule change. The text of these
Product List. Documents are available at 3642 and 3632(b)(3), on December 13, statements may be examined at the
www.prc.gov, Docket Nos. MC2017–45, 2016, it filed with the Postal Regulatory places specified in Item IV below. The
CP2017–71. Commission a Request of the United Exchange has prepared summaries, set
States Postal Service to Add Priority forth in sections A, B, and C below, of
Stanley F. Mires, Mail Contract 271 to Competitive the most significant aspects of such
Attorney, Federal Compliance. Product List. Documents are available at statements.
[FR Doc. 2016–30531 Filed 12–19–16; 8:45 am] www.prc.gov, Docket Nos. MC2017–46,
BILLING CODE 7710–12–P CP2017–72. A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Stanley F. Mires, Statutory Basis for, the Proposed Rule
POSTAL SERVICE Attorney, Federal Compliance. Change
[FR Doc. 2016–30529 Filed 12–19–16; 8:45 am]
Product Change—Priority Mail 1. Purpose
BILLING CODE 7710–12–P
Negotiated Service Agreement The Exchange proposes to amend its
Fees Schedule. Specifically, the
AGENCY: Postal ServiceTM. SECURITIES AND EXCHANGE Exchange proposes to increase the
ACTION: Notice. COMMISSION transaction fee for electronic executions
by broker-dealers, non-Trading Permit
SUMMARY: The Postal Service gives [Release No. 34–79548; File No. SR–CBOE–
2016–085]
Holder (‘‘non-TPH’’) Market-Makers,
notice of filing a request with the Postal Professionals/Voluntary Professionals
Regulatory Commission to add a and Joint Back-Offices (‘‘JBOs’’) in
Self-Regulatory Organizations;
domestic shipping services contract to Penny Pilot equity, ETF, ETN and index
Chicago Board Options Exchange,
the list of Negotiated Service options (excluding Underlying Symbol
Incorporated; Notice of Filing and
Agreements in the Mail Classification List A) classes from $0.45 per contract
Immediate Effectiveness of a Proposed
Schedule’s Competitive Products List. to $0.47 per contract. The Exchange
Rule Change To Amend the Fees
DATES: Effective date: December 20, Schedule notes that this increase is in line with
2016. the amount assessed by another
December 14, 2016. exchange for similar transactions.3
FOR FURTHER INFORMATION CONTACT:
Pursuant to Section 19(b)(1) of the
Elizabeth A. Reed, 202–268–3179. 2. Statutory Basis
Securities Exchange Act of 1934 (the
SUPPLEMENTARY INFORMATION: The ‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Exchange believes the proposed
United States Postal Service® hereby notice is hereby given that on December rule change is consistent with the
gives notice that, pursuant to 39 U.S.C. 1, 2016, Chicago Board Options Securities Exchange Act of 1934 (the
3642 and 3632(b)(3), on December 13, Exchange, Incorporated (the ‘‘Exchange’’ ‘‘Act’’) and the rules and regulations
2016, it filed with the Postal Regulatory or ‘‘CBOE’’) filed with the Securities thereunder applicable to the Exchange
Commission a Request of the United and Exchange Commission (the and, in particular, the requirements of
States Postal Service to Add Priority ‘‘Commission’’) the proposed rule Section 6(b) of the Act.4 Specifically,
Mail Contract 272 to Competitive change as described in Items I, II, and the Exchange believes the proposed rule
Product List. Documents are available at III below, which Items have been change is consistent with the Section
www.prc.gov, Docket Nos. MC2017–47, prepared by the Exchange. The 6(b)(5) 5 requirements that the rules of
CP2017–73. Commission is publishing this notice to an exchange be designed to prevent
Stanley F. Mires, solicit comments on the proposed rule fraudulent and manipulative acts and
Attorney, Federal Compliance. change from interested persons. practices, to promote just and equitable
[FR Doc. 2016–30526 Filed 12–19–16; 8:45 am] I. Self-Regulatory Organization’s principles of trade, to foster cooperation
BILLING CODE 7710–12–P Statement of the Terms of Substance of and coordination with persons engaged
the Proposed Rule Change in regulating, clearing, settling,
processing information with respect to,
The Exchange proposes to amend its and facilitating transactions in
POSTAL SERVICE Fees Schedule. The text of the proposed securities, to remove impediments to
mstockstill on DSK3G9T082PROD with NOTICES
Product Change—Priority Mail rule change is also available on the and perfect the mechanism of a free and
Negotiated Service Agreement Exchange’s Web site (http:// open market and a national market
www.cboe.com/AboutCBOE/ system, and, in general, to protect
AGENCY: Postal ServiceTM. CBOELegalRegulatoryHome.aspx), at
ACTION: Notice. the Exchange’s Office of the Secretary, 3 See e.g., NASDAQ PHLX Pricing Schedule,
Section II, Multiply Listed Options Fees.
SUMMARY: The Postal Service gives 1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
notice of filing a request with the Postal 2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(5).
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![92884 Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Notices
investors and the public interest. recognizes the differing obligations and Commission takes such action, the
Additionally, the Exchange believes the contributions made to the liquidity and Commission will institute proceedings
proposed rule change is consistent with trading environment on the Exchange by to determine whether the proposed rule
Section 6(b)(4) of the Act,6 which these market participants. change should be approved or
requires that Exchange rules provide for disapproved.
B. Self-Regulatory Organization’s
the equitable allocation of reasonable
Statement on Burden on Competition IV. Solicitation of Comments
dues, fees, and other charges among its
Trading Permit Holders and other The Exchange does not believe that Interested persons are invited to
persons using its facilities. the proposed rule change will impose submit written data, views, and
Increasing the fee for electronic any burden on competition that are [sic] arguments concerning the foregoing,
executions by broker-dealers, non-TPH not necessary or appropriate in including whether the proposed rule
Market-Makers, Professionals/Voluntary furtherance of the purposes of the Act. change is consistent with the Act.
Professionals and JBOs in Penny Pilot The Exchange does not believe that the Comments may be submitted by any of
equity, ETF, ETN and index options proposed rule change will impose any the following methods:
(excluding Underlying Symbol List A) burden on intramarket competition that Electronic Comments
classes is reasonable because the is not necessary or appropriate in
proposed fee amount is in line with the furtherance of the purposes of the Act • Use the Commission’s Internet
amount assessed by another exchange because, while the proposed fee comment form (http://www.sec.gov/
for similar transactions.7 The Exchange increase applies only to certain market rules/sro.shtml); or
believes that this proposed change is participants, the other market • Send an email to rule-comments@
also equitable and not unfairly participants have different obligations sec.gov. Please include File Number SR–
discriminatory because the Exchange and different circumstances (as CBOE–2016–085 on the subject line.
will assess broker-dealers, non-TPH described in the ‘‘Statutory Basis’’ Paper Comments
Market-Makers, Professionals/Voluntary section above). For example, Clearing • Send paper comments in triplicate
Professionals and JBOs the same TPHs have clearing obligations that to Secretary, Securities and Exchange
electronic options transaction fees in other market participants do not have. Commission, 100 F Street NE.,
Penny Pilot options classes. The Market-Makers have quoting obligations Washington, DC 20549–1090.
Exchange notes that it does not assess that other market participants do not
Customers the electronic options All submissions should refer to File
have. There is also a history in the
transaction fees in Penny Pilot options Number SR–CBOE–2016–085. This file
options markets of providing
because Customer order flow enhances number should be included on the
preferential treatment to Customers. The
liquidity on the Exchange for the benefit subject line if email is used. To help the
Exchange does not believe that the
of all market participants. Specifically, Commission process and review your
proposed change will cause any
Customer liquidity benefits all market comments more efficiently, please use
unnecessary burden on intermarket
participants by providing more trading only one method. The Commission will
competition because the proposed
opportunities, which attracts Market- post all comments on the Commission’s
change only affects trading on CBOE. To
Makers. An increase in the activity of Internet Web site (http://www.sec.gov/
the extent that the proposed changes
these market participants in turn rules/sro.shtml). Copies of the
make CBOE a more attractive
facilitates tighter spreads, which may submission, all subsequent
marketplace for market participants at
cause an additional corresponding amendments, all written statements
other exchanges, such market
increase in order flow from other market with respect to the proposed rule
participants are welcome to become
participants. The Exchange notes that change that are filed with the
CBOE market participants.
Market-Makers are assessed lower Commission, and all written
electronic options transaction fees in C. Self-Regulatory Organization’s communications relating to the
Penny Pilot options as compared to Statement on Comments on the proposed rule change between the
Professionals, JBOs, Broker Dealers and Proposed Rule Change Received From Commission and any person, other than
non-Trading Permit Holder Market- Members, Participants, or Others those that may be withheld from the
Makers because they have obligations to The Exchange neither solicited nor public in accordance with the
the market and regulatory requirements, received comments on the proposed provisions of 5 U.S.C. 552, will be
which normally do not apply to other rule change. available for Web site viewing and
market participants (e.g., obligations to printing in the Commission’s Public
III. Date of Effectiveness of the Reference Room, 100 F Street NE.,
make continuous markets). Clearing
Proposed Rule Change and Timing for Washington, DC 20549, on official
Trading Permit Holder Proprietary
Commission Action business days between the hours of
orders are assessed lower options
transaction fees in Penny Pilot options The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
because they also have obligations, effective pursuant to Section 19(b)(3)(A) filing also will be available for
which normally do not apply to other of the Act 8 and paragraph (f) of Rule inspection and copying at the principal
market participants (e.g., must have 19b–4 9 thereunder. At any time within office of the Exchange. All comments
higher capital requirements, clear trades 60 days of the filing of the proposed rule received will be posted without change;
for other market participants, must be change, the Commission summarily may the Commission does not edit personal
members of OCC). Accordingly, the temporarily suspend such rule change if identifying information from
submissions. You should submit only
mstockstill on DSK3G9T082PROD with NOTICES
differentiation between electronic it appears to the Commission that such
transaction fees for Customers, Market- action is necessary or appropriate in the information that you wish to make
Makers, Clearing Trading Permit public interest, for the protection of available publicly. All submissions
Holders and other market participants investors, or otherwise in furtherance of should refer to File Number SR–CBOE–
the purposes of the Act. If the 2016–085, and should be submitted on
6 15 U.S.C. 78f(b)(4). or before January 10, 2017.
7 See 8 15 U.S.C. 78s(b)(3)(A).
NASDAQ PHLX Pricing Schedule, Section
II, Multiply Listed Options Fees. 9 17 CFR 240.19b–4(f). 10 17 CFR 200.30–3(a)(12).
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![Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Notices 92885
For the Commission, by the Division of proposed rule change, or institute The PCAOB is subject to the
Trading and Markets, pursuant to delegated proceedings to determine whether the comprehensive oversight of the
authority.10 proposed rule change should be Securities and Exchange Commission
Robert W. Errett, disapproved. The 45th day after (the ‘‘Commission’’).
Deputy Secretary. publication of the notice for this Section 109 of the Sarbanes-Oxley Act
[FR Doc. 2016–30554 Filed 12–19–16; 8:45 am] proposed rule change is December 16, provides that the PCAOB shall establish
BILLING CODE 8011–01–P 2016. The Commission is extending this a reasonable annual accounting support
45-day time period. fee, as may be necessary or appropriate
The Commission finds that it is to establish and maintain the PCAOB.
SECURITIES AND EXCHANGE appropriate to designate a longer period Under Section 109(f) of the Sarbanes-
COMMISSION within which to take action on the Oxley Act, the aggregate annual
proposed rule change so that it has accounting support fee shall not exceed
[Release No. 34–79551; File No. SR–
sufficient time to consider the proposed the PCAOB’s aggregate ‘‘recoverable
NASDAQ–2016–131]
rule change. Accordingly, the budget expenses,’’ which may include
Self-Regulatory Organizations; The Commission, pursuant to Section operating, capital and accrued items.
Nasdaq Stock Market LLC; Notice of 19(b)(2) of the Act,6 designates January The PCAOB’s annual budget and
Designation of a Longer Period for 30, 2017 as the date by which the accounting support fee are subject to
Commission Action on Proposed Rule Commission shall either approve or approval by the Commission. In
Change To Enhance the Reopening disapprove or institute proceedings to addition, the PCAOB must allocate the
Auction Process Following a Trading determine whether to disapprove the annual accounting support fee among
Halt Declared Pursuant to the Plan To proposed rule change (File Number SR– issuers and among brokers and dealers.
Address Extraordinary Market NASDAQ–2016–131). Section 109(b) of the Sarbanes-Oxley
Volatility Act directs the PCAOB to establish a
For the Commission, by the Division of
budget for each fiscal year in accordance
Trading and Markets, pursuant to delegated
December 14, 2016. authority.7 with the PCAOB’s internal procedures,
On October 13, 2016, The Nasdaq Robert W. Errett,
subject to approval by the Commission.
Stock Market LLC (‘‘Exchange’’) filed Rule 190 of Regulation P governs the
Deputy Secretary.
with the Securities and Exchange Commission’s review and approval of
[FR Doc. 2016–30557 Filed 12–19–16; 8:45 am]
Commission (‘‘Commission’’), pursuant PCAOB budgets and annual accounting
BILLING CODE 8011–01–P support fees.3 This budget rule
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and provides, among other things, a
Rule 19b–4 thereunder,2 a proposed rule timetable for the preparation and
SECURITIES AND EXCHANGE submission of the PCAOB budget and
change related to the reopening auction COMMISSION
process following a trading halt for Commission actions related to each
declared pursuant to the Plan to [Securities Act of 1933 Release No. 10266/ budget, a description of the information
Address Extraordinary Market December 14, 2016; Securities Exchange that should be included in each budget
Volatility. The proposed rule change Act of 1934 Release No. 79544/December submission, limits on the PCAOB’s
14, 2016] ability to incur expenses and obligations
was published for comment in the
Federal Register on November 1, 2016.3 except as provided in the approved
Order Approving Public Company budget, procedures relating to
On December 5, 2016, the Exchange Accounting Oversight Board Budget
filed Amendment No. 1 to its proposed supplemental budget requests,
and Annual Accounting Support Fee requirements for the PCAOB to furnish
rule change.4 The Commission received for Calendar Year 2017
no comments on the proposed rule on a quarterly basis certain budget-
change. The Sarbanes-Oxley Act of 2002, as related information, and a list of
Section 19(b)(2) of the Act 5 provides amended (the ‘‘Sarbanes-Oxley Act’’),1 definitions that apply to the rule and to
that, within 45 days of the publication established the Public Company general discussions of PCAOB budget
of notice of the filing of a proposed rule Accounting Oversight Board (‘‘PCAOB’’) matters.
change, or within such longer period up to oversee the audits of companies that In accordance with the budget rule, in
to 90 days as the Commission may are subject to the securities laws, and March 2016 the PCAOB provided the
designate if it finds such longer period related matters, in order to protect the Commission with a narrative
to be appropriate and publishes its interests of investors and further the description of its program issues and
reasons for so finding or as to which the public interest in the preparation of outlook for the 2017 budget year. In
self-regulatory organization consents, informative, accurate and independent response, the Commission provided the
the Commission shall either approve the audit reports. Section 982 of the Dodd- PCAOB with economic assumptions and
proposed rule change, disapprove the Frank Wall Street Reform and Consumer budgetary guidance for the 2017 budget
Protection Act (the ‘‘Dodd-Frank Act’’) 2 year. The PCAOB subsequently
1 15 U.S.C. 78s(b)(1). amended the Sarbanes-Oxley Act to delivered a preliminary budget and
2 17 CFR 240.19b–4. provide the PCAOB with explicit budget justification to the Commission.
3 See Securities Exchange Act Release No. 79158
authority to oversee auditors of broker- Staff from the Commission’s Office of
(October 26, 2016), 81 FR 75879.
dealers registered with the Commission. the Chief Accountant and Office of
4 In Amendment No. 1, the Exchange proposed to
The PCAOB is to accomplish these goals Financial Management dedicated a
use the Auction Reference Price in determining
substantial amount of time to the review
mstockstill on DSK3G9T082PROD with NOTICES
whether or not a security was priced at $3 or less through registration of public
for purposes of calculating the Auction Collar. In accounting firms and standard setting, and analysis of the PCAOB’s programs,
addition, the Exchange proposed to amend Rule inspection, and disciplinary programs. projects and budget estimates; reviewed
4754(b)(6) to make a conforming change to state that the PCAOB’s estimates of 2016 actual
the rule applies to Trading Pauses in existence at
or after 3:50 p.m. and before 4:00 p.m. Amendment
6 Id. spending; and attended several meetings
No. 1 is available at https://www.sec.gov/comments/ 7 17CFR 200.30–3(a)(31). with management and staff of the
sr-nasdaq-2016-131/nasdaq2016131-1.pdf. 1 15U.S.C. 7201 et seq.
5 15 U.S.C. 78s(b)(2). 2 Public Law 111–203, 124 Stat. 1376 (2010). 3 17 CFR 202.190.
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Document Created: 2018-02-14 09:09:58
Document Modified: 2018-02-14 09:09:58
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 92883 |
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