81 FR 94460 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 247 (December 23, 2016)
Federal Register Volume 81, Issue 247 (December 23, 2016)
| Page Range | 94460-94462 | |
| FR Document | 2016-30943 |
[Federal Register Volume 81, Number 247 (Friday, December 23, 2016)] [Notices] [Pages 94460-94462] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-30943] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79597; File No. SR-NYSEArca-2016-165] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services December 19, 2016. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on December 13, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') 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 self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 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 the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services (``Fee Schedule''). The Exchange proposes to implement the fee change effective December 13, 2016.\4\ The proposed change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. --------------------------------------------------------------------------- \4\ The Exchange originally filed to amend the Fee Schedule on December 2, 2016 (SR-NYSEArca-2016-162) and withdrew such filing on December 13, 2016. --------------------------------------------------------------------------- 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 self-regulatory organization 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 those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the Fee Schedule to amend the volume criteria for the Exchange's tiered-rebate structure applicable to Lead Market Makers (``LMMs'') \5\ and to ETP Holders and Market Makers affiliated with the LMM that provide liquidity in Tape B securities to the NYSE Arca Book. The Exchange proposes to implement the fee change effective December 13, 2016. --------------------------------------------------------------------------- \5\ The term ``Lead Market Maker'' is defined in Rule 1.1(ccc) to mean a registered Market Maker that is the exclusive Designated Market Maker in listings for which the Exchange is the primary market. --------------------------------------------------------------------------- The Exchange currently provides tier-based incremental credits for orders that provide displayed liquidity to the NYSE Arca Book in Tape B Securities.\6\ Specifically, LMMs that are registered as the LMM in Tape B securities that have a consolidated average daily volume (``CADV'') in the previous month of less than 100,000 shares (``Less Active ETP Securities''), and the ETP Holders and Market Makers affiliated with such LMMs, currently receive an incremental credit for orders that provide displayed liquidity to the Book in any Tape B Securities that trade on the Exchange.\7\ The current incremental credits and volume thresholds are as follows: --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 76084 (October 6, 2015), 80 FR 61529 (October 13, 2015) (SR-NYSEArca-2015-87). \7\ The Exchange defines ``affiliate'' to ``mean any ETP Holder under 75% common ownership or control of that ETP Holder.'' See Fee Schedule, NYSE Arca Marketplace: General, Section II(c). ---------------------------------------------------------------------------An additional credit of $0.0004 per share if an LMM is registered as the LMM in at least 300 Less Active ETP Securities An additional credit of $0.0003 per share if an LMM is registered as the LMM in at least 200 but less than 300 Less Active ETP Securities An additional credit of $0.0002 per share if an LMM is registered as the LMM in at least 100 but less than 200 Less Active ETP Securities The number of Less Active ETP Securities for the billing month is based on the number of Less Active ETP Securities in which an LMM is registered as the LMM on the last business day of the previous month. The Exchange proposes to amend the volume criteria for Less Active ETP Securities. As proposed, a Less Active ETP Security would be a Tape B Security that has a CADV in the previous month of less than 100,000 shares, or 0.0070% of Consolidated Tape B ADV, whichever is greater. The Exchange is proposing to expand the manner by which LMMs that are registered as the LMM in Tape B Securities, and the ETP Holders and Market Makers affiliated with such LMMs, would qualify for the incremental credit. The Exchange is not proposing any change to the level of the incremental credits and volume thresholds noted above that are payable to LMMs and to ETP Holders and Market Makers affiliated with the LMM. The Exchange is proposing to amend the current criteria for securities to qualify as Less Active ETP Securities by expanding it to the greater of a numerical threshold or a percentage threshold based upon the average daily traded volume of the relevant security, for several reasons. The percentage threshold will adjust each calendar month based on the U.S. average daily consolidated share volume in Tape B Securities for that month, while the numerical threshold remains unchanged from month to month, thereby providing a consistent floor against which to measure volume in a Tape B Security. The Exchange believes that the proposed approach will provide a straightforward way to float volume tiers, while maintaining a minimum threshold. The Exchange notes that the combined approach will allow tiers to move in sync with consolidated volume during months with high volumes while maintaining a numerical threshold. The Exchange believes that this will continue to provide an incentive for LMMs to act as an LMM for less active issues during months with higher market volumes when the 100,000 share [[Page 94461]] threshold would be harder to obtain. While the percentage threshold will result in lower maximum share volume requirement when consolidated volumes are lower, it will also result in higher maximum share volume requirement when consolidated volumes are higher. Such higher and lower consolidated volumes will have a similar impact on the maximum share requirements; however, the minimum share requirement will remain unchanged at 100,000 shares. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\8\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\9\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The proposed fee change is intended to encourage LMMs and ETP Holders and Market Makers affiliated with such LMMs to promote price discovery and market quality in Less Active ETP Securities for the benefit of all market participants. The Exchange believes the proposed amendment to the volume criteria for Less Active ETP Securities is equitable and not unfairly discriminatory because it would continue to apply to all LMMs and ETP Holders and Market Makers affiliated with such LMM on an equal basis. The Exchange further believes that the proposed rule change is not unfairly discriminatory because it is consistent with the market quality and competitiveness benefits associated with the proposed fee program. The Exchange further believes that the proposed amendment to the criteria to qualify for the incremental credits is reasonable, equitable and not unfairly discriminatory as it will result in more LMMs and ETP Holders and Market Makers affiliated with such LMMs to qualify for the increased credits and therefore reduce their overall transaction costs on the Exchange. Further, the Exchange believes that the proposal is reasonable and would create an added incentive for these market participants to execute additional orders on the Exchange and thereby qualify for the incremental credits. The Exchange believes that the proposed change is equitable and not unfairly discriminatory because providing incentives for orders in exchange-listed securities that are executed on a registered national securities exchange (rather than relying on certain available off-exchange execution methods) would contribute to investors' confidence in the fairness of their transactions and would benefit all investors by deepening the Exchange's liquidity pool, supporting the quality of price discovery, promoting market transparency and improving investor protection. Volume-based rebates such as the ones currently in place on the Exchange have been widely adopted in the cash equities markets and are equitable because they are open to all LMMs and ETP Holders and Market Makers affiliated with such LMMs on an equal basis and provides additional benefits that are reasonably related to the value to an exchange's market quality associated with higher levels of market activity. Finally, the Exchange believes that it is subject to significant competitive forces, as described below in the Exchange's statement regarding the burden on competition. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\10\ the Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the proposed change would encourage increased participation by LMMs in the trading of ETP securities generally and Less Active ETP Securities, in particular. The proposed change would also encourage the submission of additional liquidity to a public exchange, thereby promoting price discovery and transparency and enhancing order execution opportunities for ETP Holders and Market Makers affiliated with LMMs. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and credits to remain competitive with other exchanges. For the reasons described above, the Exchange believes that this proposal promotes a competitive environment. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) \11\ of the Act and subparagraph (f)(2) of Rule 19b-4 \12\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 shall institute proceedings under Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \13\ 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 proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEArca-2016-165 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2016-165. 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 [[Page 94462]] 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-NYSEArca-2016-165 and should be submitted on or before January 13, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-30943 Filed 12-22-16; 8:45 am] BILLING CODE 8011-01-P
![94460 Federal Register / Vol. 81, No. 247 / Friday, December 23, 2016 / Notices
Holdings, must follow its policies in proposed change is available on the • An additional credit of $0.0004 per
determining whether to recommend Exchange’s Web site at www.nyse.com, share if an LMM is registered as the
those candidates for election as at the principal office of the Exchange, LMM in at least 300 Less Active ETP
directors to the Board. Accordingly, and at the Commission’s Public Securities
BGM’s ability to recommend specific Reference Room. • An additional credit of $0.0003 per
candidates is subject to CBOE Holdings’ share if an LMM is registered as the
II. Self-Regulatory Organization’s LMM in at least 200 but less than 300
governance process and procedures.
Statement of the Purpose of, and Less Active ETP Securities
IV. Conclusion Statutory Basis for, the Proposed Rule • An additional credit of $0.0002 per
It is therefore ordered, pursuant to Change share if an LMM is registered as the
Section 19(b)(2) of the Act 19 that the In its filing with the Commission, the LMM in at least 100 but less than 200
proposed rule changes (SR–CBOE– self-regulatory organization included Less Active ETP Securities
2016–076 and SR–C2–2016–022), be, statements concerning the purpose of, The number of Less Active ETP
and hereby are, approved. and basis for, the proposed rule change Securities for the billing month is based
and discussed any comments it received on the number of Less Active ETP
For the Commission, by the Division of
on the proposed rule change. The text Securities in which an LMM is
Trading and Markets, pursuant to delegated
authority.20 of those statements may be examined at registered as the LMM on the last
the places specified in Item IV below. business day of the previous month.
Eduardo A. Aleman,
The Exchange has prepared summaries, The Exchange proposes to amend the
Assistant Secretary. volume criteria for Less Active ETP
[FR Doc. 2016–30939 Filed 12–22–16; 8:45 am]
set forth in sections A, B, and C below,
of the most significant parts of such Securities. As proposed, a Less Active
BILLING CODE 8011–01–P
statements. ETP Security would be a Tape B
Security that has a CADV in the
A. Self-Regulatory Organization’s previous month of less than 100,000
SECURITIES AND EXCHANGE Statement of the Purpose of, and the shares, or 0.0070% of Consolidated
COMMISSION Statutory Basis for, the Proposed Rule Tape B ADV, whichever is greater. The
[Release No. 34–79597; File No. SR– Change Exchange is proposing to expand the
NYSEArca–2016–165] manner by which LMMs that are
1. Purpose
registered as the LMM in Tape B
Self-Regulatory Organizations; NYSE The Exchange proposes to amend the Securities, and the ETP Holders and
Arca, Inc.; Notice of Filing and Fee Schedule to amend the volume Market Makers affiliated with such
Immediate Effectiveness of Proposed criteria for the Exchange’s tiered-rebate LMMs, would qualify for the
Rule Change Amending the NYSE Arca structure applicable to Lead Market incremental credit.
Equities Schedule of Fees and Makers (‘‘LMMs’’) 5 and to ETP Holders The Exchange is not proposing any
Charges for Exchange Services and Market Makers affiliated with the change to the level of the incremental
LMM that provide liquidity in Tape B credits and volume thresholds noted
December 19, 2016. securities to the NYSE Arca Book. The above that are payable to LMMs and to
Pursuant to Section 19(b)(1) 1 of the Exchange proposes to implement the fee ETP Holders and Market Makers
Securities Exchange Act of 1934 (the change effective December 13, 2016. affiliated with the LMM.
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 The Exchange currently provides tier- The Exchange is proposing to amend
notice is hereby given that, on December based incremental credits for orders that the current criteria for securities to
13, 2016, NYSE Arca, Inc. (the provide displayed liquidity to the NYSE qualify as Less Active ETP Securities by
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with Arca Book in Tape B Securities.6 expanding it to the greater of a
the Securities and Exchange Specifically, LMMs that are registered as numerical threshold or a percentage
Commission (the ‘‘Commission’’) the the LMM in Tape B securities that have threshold based upon the average daily
proposed rule change as described in a consolidated average daily volume traded volume of the relevant security,
Items I, II, and III below, which Items (‘‘CADV’’) in the previous month of less for several reasons. The percentage
have been prepared by the self- than 100,000 shares (‘‘Less Active ETP threshold will adjust each calendar
regulatory organization. The Securities’’), and the ETP Holders and month based on the U.S. average daily
Commission is publishing this notice to Market Makers affiliated with such consolidated share volume in Tape B
solicit comments on the proposed rule LMMs, currently receive an incremental Securities for that month, while the
change from interested persons. credit for orders that provide displayed numerical threshold remains unchanged
I. Self-Regulatory Organization’s liquidity to the Book in any Tape B from month to month, thereby providing
Statement of the Terms of Substance of Securities that trade on the Exchange.7 a consistent floor against which to
the Proposed Rule Change The current incremental credits and measure volume in a Tape B Security.
volume thresholds are as follows: The Exchange believes that the
The Exchange proposes to amend the proposed approach will provide a
NYSE Arca Equities Schedule of Fees straightforward way to float volume
2016–162) and withdrew such filing on December
and Charges for Exchange Services 13, 2016. tiers, while maintaining a minimum
(‘‘Fee Schedule’’). The Exchange 5 The term ‘‘Lead Market Maker’’ is defined in threshold. The Exchange notes that the
proposes to implement the fee change Rule 1.1(ccc) to mean a registered Market Maker combined approach will allow tiers to
effective December 13, 2016.4 The that is the exclusive Designated Market Maker in
move in sync with consolidated volume
mstockstill on DSK3G9T082PROD with NOTICES
listings for which the Exchange is the primary
market. during months with high volumes while
19 15 U.S.C. 78s(b)(2).
20 17
6 See Securities Exchange Act Release No. 76084 maintaining a numerical threshold. The
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
(October 6, 2015), 80 FR 61529 (October 13, 2015) Exchange believes that this will
(SR–NYSEArca–2015–87). continue to provide an incentive for
2 15 U.S.C. 78a. 7 The Exchange defines ‘‘affiliate’’ to ‘‘mean any
3 17 CFR 240.19b–4.
ETP Holder under 75% common ownership or
LMMs to act as an LMM for less active
4 The Exchange originally filed to amend the Fee control of that ETP Holder.’’ See Fee Schedule, issues during months with higher
Schedule on December 2, 2016 (SR–NYSEArca– NYSE Arca Marketplace: General, Section II(c). market volumes when the 100,000 share
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![94462 Federal Register / Vol. 81, No. 247 / Friday, December 23, 2016 / Notices
Internet Web site (http://www.sec.gov/ 19b–4 thereunder.2 The Proposed Rule modifications are described in detail
rules/sro.shtml). Copies of the Change was published for comment in below.
submission, all subsequent the Federal Register on November 10,
(A) Accelerated Trade Guaranty
amendments, all written statements 2016.3 The Commission did not receive
with respect to the proposed rule any comments on the Proposed Rule Pursuant to Addendum K of the
change that are filed with the Change. For the reasons discussed Rules, NSCC currently guarantees the
Commission, and all written below, the Commission is granting completion of trades that are cleared
communications relating to the approval of the Proposed Rule Change and settled through NSCC’s Continuous
proposed rule change between the Net Settlement, or ‘‘CNS’’ system 8
I. Description of the Proposed Rule (‘‘CNS trades’’), and through its Balance
Commission and any person, other than
Change Order Accounting Operation 9 (‘‘Balance
those that may be withheld from the
public in accordance with the The Proposed Rule Change, as Order trades’’) that have reached the
provisions of 5 U.S.C. 552, will be described by NSCC, is a proposal to later of midnight of T+1 or midnight of
available for Web site viewing and modify NSCC’s Rules & Procedures the day they are reported to NSCC
printing in the Commission’s Public (‘‘Rules’’) 4 to: (i) Accelerate NSCC’s members (‘‘Members’’).10 NSCC
Reference Room, 100 F Street NE., trade guaranty from midnight of one day proposes to shorten the time at which
Washington, DC 20549 on official after trade date (‘‘T+1’’) to the point of its trade guaranty applies to trades by
business days between the hours of trade comparison and validation for amending its Rules to guarantee the
10:00 a.m. and 3:00 p.m. Copies of the bilateral submissions or to the point of completion of CNS trades and Balance
filing also will be available for trade validation for locked-in Order trades upon comparison and
inspection and copying at the principal submissions; (ii) add three new validation for bilateral submissions to
office of the Exchange. All comments components to NSCC’s Clearing Fund NSCC or upon validation for locked-in
received will be posted without change; formula, in the form of a a Margin submissions to NSCC.11
the Commission does not edit personal Requirement Differential (‘‘MRD’’), a NSCC has previously shortened the
identifying information from Coverage Component, and an Intraday time at which its trade guaranty applied
submissions. You should submit only Backtesting Charge); (iii) enhance to trades in response to processing
information that you wish to make NSCC’s current intraday mark-to-market developments, risk management
available publicly. All submissions margin process; (iv) introduce a new considerations, and to follow industry
should refer to File Number SR– loss allocation provision for any trades settlement cycles.12 According to NSCC,
NYSEArca–2016–165 and should be that fall within the proposed definition the accelerated trade guaranty and
submitted on or before January 13, 2017. of ‘‘Off-the-Market Transactions;’’ and related changes it now proposes would
(v) make other related and technical benefit the industry by mitigating
For the Commission, by the Division of
Trading and Markets, pursuant to delegated changes, such as eliminating the current counterparty risk and enhancing
authority.14 Specified Activity charge 5 from the counterparties’ ability to assess that risk
Eduardo A. Aleman, Clearing Fund formula, no longer by having NSCC become the central
permitting NSCC to delay processing counterparty (‘‘CCP’’) to CNS trades and
Assistant Secretary.
and reporting for certain index receipt by applying the trade guaranty to
[FR Doc. 2016–30943 Filed 12–22–16; 8:45 am]
transactions, clarifying the calculation Balance Order trades at an earlier point
BILLING CODE 8011–01–P
of the Excess Capital Premium charge,6
and removing certain references to ID against their CNS transactions at NSCC. See
Net Subscribers.7 These proposed Securities Exchange Act Release No. 57901 (June 2,
SECURITIES AND EXCHANGE 2008), 73 FR 32373 (June 6, 2008) (SR–NSCC–2007–
COMMISSION 14). NSCC’s ID Net service is defined further in
2 17 CFR 240.19b–4. Rule 65. Rules, supra note 4.
3 Securities Exchange Act Release No. 79245
[Release No. 34–79598; File No. SR–NSCC– 8 CNS and its operation are described in Rule 11
2016–005] (November 4, 2016), 81 FR 79071 (November 10, and Procedure VII. Rules, supra note 4.
2016) (SR–NSCC–2016–005) (‘‘Notice’’). NSCC also 9 The Balance Order Accounting Operation is
Self-Regulatory Organizations; filed the Proposed Rule Change as an advance described in Rule 5 and Procedure V. Rules, supra
notice with the Commission, pursuant to Section note 4. NSCC does not become a counterparty to
National Securities Clearing 806(e)(1) of the Payment, Clearing, and Settlement Balance Order trades, but it does provide a trade
Corporation; Order Granting Approval Supervision Act of 2010 and Rule 19b–4(n)(1) guaranty to the receive and deliver parties that
of Proposed Rule Change To under the Act, seeking approval of changes to its remains effective through close of business on the
Rules necessary to implement the Proposed Rule originally scheduled settlement date.
Accelerate Its Trade Guaranty, Add Change. 12 U.S.C. 5465(e) and 17 CFR 240.19b– 10 Today, shortened process trades, such as same-
New Clearing Fund Components, 4(n)(1), respectively. The advance notice was day and next-day settling trades, are already
Enhance Its Intraday Risk published in the Federal Register on November 30, guaranteed upon comparison or trade recording
Management, Provide for Loss 2016. Securities Exchange Act Release No. 79391 processing.
(November 23, 2016), 81 FR 86348 (November 30,
Allocation of ‘‘Off-the-Market 2016) (SR–NSCC–2016–803). The Commission did
11 Validation refers to the process whereby NSCC
Transactions,’’ and Make Other validates a locked-in trade, or compares and
not receive any comments on the advance notice. validates a bilateral trade, to confirm such trade has
Changes 4 Available at http://dtcc.com/∼/media/Files/
sufficient and correct information for clearance and
Downloads/legal/rules/nscc_rules.pdf. settlement processing. For purposes of this
December 19, 2016. 5 The Specified Activity charge is a current
description in the proposed rule change, the
National Securities Clearing component of the Clearing Fund formula that process of comparing and validating bilateral
Corporation (‘‘NSCC’’) filed on October mitigates the risk of NSCC’s trade guaranty submissions and the process for validating locked-
attaching prior to NSCC collecting margin on the in submissions are collectively referred to as ‘‘trade
25, 2016 with the Securities and transactions, where there is a shortened settlement validation.’’ Notice, supra note 3.
mstockstill on DSK3G9T082PROD with NOTICES
Exchange Commission (‘‘Commission’’) cycle for the transaction. Notice, supra note 3. 12 See Securities Exchange Act Release Nos.
proposed rule change SR–NSCC–2016– 6 The Excess Capital Premium is a charge
44648 (August 2, 2001), 66 FR 42245 (August 10,
005 (‘‘Proposed Rule Change’’) pursuant imposed on a Member when the Member’s Required 2001) (SR–NSCC–2001–11); 35442 (March 3, 1995),
to Section 19(b)(1) of the Securities Deposit exceeds its excess net capital, as described 60 FR 13197 (March 10, 1995) (SR–NSCC–95–02);
in Procedure XV of the Rules. Notice, supra note 35807 (June 5, 1995), 60 FR 31177 (June 13, 1995)
Exchange Act of 1934 (‘‘Act’’) 1 and Rule 3. (SR–NSCC–95–03); and 27192 (August 29, 1989), 54
7 The ID Net service allows subscribers to the FR 37010 (approving SR–NSCC–87–04, SR–MCC–
14 17 CFR 200.30–3(a)(12). service to net all eligible affirmed institutional 87–03, and SR–SCCP–87–03 until December 31,
1 15 U.S.C. 78s(b)(1). transactions at the Depository Trust Company 1990).
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Document Created: 2016-12-23 12:29:23
Document Modified: 2016-12-23 12:29:23
| 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 94460 |
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