81 FR 9561 - Securities Investor Protection Corporation
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 37 (February 25, 2016)
Federal Register Volume 81, Issue 37 (February 25, 2016)
| Page Range | 9561-9563 | |
| FR Document | 2016-04022 |
[Federal Register Volume 81, Number 37 (Thursday, February 25, 2016)] [Notices] [Pages 9561-9563] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-04022] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. SIPA-174; File No. SIPC-2016-01] Securities Investor Protection Corporation AGENCY: Securities and Exchange Commission. ACTION: Notice of the determination of the Board of Directors of the Securities Investor Protection Corporation (``SIPC'') regarding the standard maximum cash advance amount, beginning January 1, 2017. ----------------------------------------------------------------------- SUMMARY: Pursuant to Section 3(e)(2) of the Securities Investor Protection Act of 1970 (``SIPA''),\1\ notice is hereby given that the Board of Directors of SIPC (the ``Board'') filed with the Securities and Exchange Commission (``Commission'') on February 17, 2016 notification that the Board has determined, beginning January 1, 2017, and for the five year period immediately thereafter, that the standard maximum cash advance amount available to satisfy customer claims for cash in a SIPA liquidation proceeding will remain at $250,000. The Commission is publishing this notice to solicit comments on Board's determination from interested parties. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78ccc(e)(2). --------------------------------------------------------------------------- DATES: Comments are to be received on or before March 11, 2016. ADDRESSES: Interested persons are invited to submit written data, views, and arguments concerning the foregoing by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/other.shtml); or Send an email to [email protected]. Please include File Number SIPC-2016-01 on the subject line. Paper Comments Send paper comments to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All comments should refer to File Number SIPC-2016-01. To help the Commission process and review your comments more efficiently, please use [[Page 9562]] only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/other.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to this Notice that are filed with the Commission, and all written communications relating to the Notice 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. 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. FOR FURTHER INFORMATION CONTACT: Michael A. Macchiaroli, Associate Director, at (202) 551-5525; Thomas K. McGowan, Associate Director, at (202) 551-5521; Randall W. Roy, Deputy Associate Director, at (202) 551-5522; Timothy C. Fox, Branch Chief, at (202) 551-5687; or Rose Russo Wells, Senior Counsel, at (202) 551-5527; Office of Financial Responsibility, Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-7010. I. SIPC'S Statement of the Purpose of and Statuory Basis of the Determination of the Board of Directors of SIPC Not To Adjust the Standard Maximum Cash Advance Amount for Inflation In its filing with the Commission, SIPC included statements concerning the purpose of and statutory basis of the SIPC Board's determination. The text of these statements may be examined at the places specified above, and appear in the text, below. * * * * * ``Under the Securities Investor Protection Act, 15 U.S.C. Section 78aaa et seq. (``SIPA''), the Board of SIPC must decide, every five years beginning no earlier and no later than January 1, 2011, whether to adjust for inflation the standard maximum amount that SIPC can advance to satisfy customer claims for cash under SIPA. See SIPA Sec. 78fff-3(e)(1).\2\ The Board considered the question at its Meeting on June 18, 2015, and on July 16, 2015, after further deliberation, the Board reached its determination. The Board's determination is subject to the approval of the Commission as provided under SIPA Section 78ccc(e)(2).\3\ If approved, any adjustment to the standard cash maximum advance would take effect on January 1, 2017. See SIPA 78fff- 3(e)(4). Under SIPA Section 78fff-3(e)(3)(A), the SEC is required to publish in the Federal Register notice of the maximum amount. --------------------------------------------------------------------------- \2\ For convenience, references herein to provisions of SIPA shall be to the United States Code, and shall omit ``15 U.S.C.'' \3\ SIPA Section 78ccc(e)(2) establishes procedures governing proposed changes to SIPC's rules. --------------------------------------------------------------------------- Per our notice to the Commission by letter dated August 18, 2015, this will re-affirm to the Commission that effective January 1, 2017, and for the five years immediately thereafter, the Board has determined that the maximum amount of the advance to satisfy a claim for cash will remain at the current level of $250,000 per customer. Consideration of the Statutory Criteria In deciding whether to adjust the maximum cash advance amount, the Board is to consider the following criteria under SIPA Section 78fff- 3(e)(5): (A) The overall state of the fund and the economic conditions affecting members of SIPC; (B) the potential problems affecting members of SIPC; and (C) such other factors as the Board of Directors of SIPC may determine appropriate. In furtherance of the Board's consideration of the above factors, the SIPC staff solicited and received comments and/or data from the staffs of FINRA, SIFMA, the SEC, and the FDIC. The data related to member firms' aggregate leverage, liquidity, and default risk, and to aggregate customer free credit balances. The information was presented to the Board by the SIPC staff, as part of an analysis by the staff of the state of the SIPC Fund and its projected growth. The staff's analysis focused on SIPC's historical experience and examined (1) SIPC advances in past and present liquidation proceedings; (2) amounts generated from assessments on member broker-dealers; and (3) projected returns on SIPC investments. The analysis also considered a 2013 study by consultants engaged by SIPC to examine the potential impact on the SIPC Fund of an increase in the cash advance limit to $500,000. The conclusions reached by the staff in their analysis were corroborated by the data received from the aforementioned authorities and by the 2013 consultants' study, namely, that the SIPC Fund is positioned to remain on a steady growth path for the foreseeable future, barring any unforeseen catastrophic event. The Board also reviewed the number of claims for cash exceeding the limit of protection in past and present liquidation proceedings. This data suggests that an inflation adjustment may not be necessary to further SIPC's purposes, but that if an inflation adjustment is made, its impact on the SIPC Fund may not be significant. Of the more than 625,000 allowed claims in completed or substantially completed liquidation proceedings as of December 31, 2014, the unsatisfied portion of cash claims amounted to $25 million. More than half of that amount related to only three claims that were submitted when the limit of protection for cash claims was less than the current $250,000. In the six SIPA proceedings initiated since 2010, SIPC has advanced, net, funds for only one cash claim in excess of $250,000. The Board also noted that customer credit balances at brokerage firms had decreased at the end of 2013 and 2014, and that due to broker-dealers' offer of overnight ``sweep'' programs, customer free credit balances were being moved to bank accounts, with the protection of such accounts thereby transferred to the FDIC. With regard to FDIC deposit insurance, increases to the limit of protection for cash claims under SIPA historically have been in lockstep with increases in FDIC deposit insurance under the Federal Deposit Insurance Act, 12 U.S.C. 1821 et seq. (``FDIA'').\4\ In 2008, and again, in 2010, parity with deposit insurance was the primary reason for SIPC's request to Congress to increase the SIPA limit of protection for cash claims. FDIC coverage is currently $250,000. While the Federal Deposit Insurance Act includes similar language to SIPA related to adjusting for inflation, the adjustment is based upon a $100,000 coverage level, and the FDIC has not [[Page 9563]] increased coverage under the inflation provision.\5\ --------------------------------------------------------------------------- \4\ The below compares the limits of protection for cash under SIPA and the FDIA: SIPA: $20,000 (Pub. L. 91-598, Sec. 6(f)(1)(A), 84 Stat. 1636, 1651 (1970)) FDIA: $20,000 (Pub. L. 91-151, Sec. 7, 83 Stat. 371, 375 (1969)) SIPA: $40,000 (Pub. L. 95-283, Sec. 9, 92 Stat. 249, 265 (1978)) FDIA: $40,000 (Pub. L. 93-495, Sec. 102(a), 88 Stat. 1500, 1502 (1974)) SIPA: $100,000 (Pub. L. 96-433, Sec. 1, 94 Stat. 1855 (1980)) FDIA: $100,000 (Pub. L. 96-221, Sec. 308, 94 Stat. 132, 147 (1980)) SIPA: $250,000 (Pub. L. 111-203, Sec. 929H, 124 Stat. 1376, 1865 (2010)) FDIA: $250,000 ((temporary until 12/31/2009) Public Law No. 110- 343, Sec. 136, 122 Stat. 3765, 3799 (2008); (permanent) Public Law 111-203, Sec. 335, 124 Stat. 1376, 1540 (2010)). \5\ 12 U.S.C. 1821(a)(1)(F)(i)(I). See Deposit Insurance Regulations; Permanent Increase in Standard Coverage Amount; Advertisement of Membership; International Banking; Foreign Banks, 75 FR 49363 n.6 (Aug. 13, 2010). --------------------------------------------------------------------------- The Board expressed concern that a unilateral increase to the SIPA limit could have unintended consequences, particularly in light of the issue not having been widely studied or discussed. For example, increasing the SIPA limit above the deposit insurance limit could incentivize the movement of funds to brokerage accounts as a savings vehicle, an outcome not consistent with the intent of SIPA. Finally, the Board considered the amount by which the limit of protection for allowed cash claims would change if adjusted for inflation. Under SIPA Section 78fff-3(e)(1)(B), if the Board determines that an adjustment is appropriate, then $250,000 is to be multiplied by [t]he ratio of the annual value of the Personal Consumption Expenditures Chain-Type Price Index (or any successor index thereto), published by the Department of Commerce, for the calendar year preceding the year in which such determination is made, to the published annual value of such index for the calendar year preceding the year in which this subsection was enacted. 15 U.S.C. 78fff-3(e)(1)(B).\6\ Although the amount of the inflation adjustment need only be considered if the Board determines to adjust the $250,000 for inflation, see SIPA Section 78fff-3(e)(1), that determination would be meaningless if the adjustment resulted in no change. This was the case on January 1, 2011, when application of the formula would have increased the limit to the adjusted amount of $254,449.52.\7\ However, under SIPA Section 78fff-3(e)(2), because the adjusted amount must be rounded down to the nearest $10,000 if it is not a multiple of $10,000, the limit would have remained at $250,000. Even if it had determined to do so, the Board could not have adjusted the amount. --------------------------------------------------------------------------- \6\ Under SIPA Sections 78fff-3(d) and 78fff-3(e)(1), the Board was required to adjust the maximum cash advance, if at all, after December 31, 2010, but no later than January 1, 2011, and then, could do so every 5 years thereafter. Thus, the five-year period after January 1, 2011, would occur in 2016. Under SIPA Section 78fff-3(e)(4), any adjustment to the amount of the cash advance would take effect on January 1 of the year immediately after the year in which the adjustment was made. \7\ The calculation would be as follows: $250,000 multiplied by 1.017798--the ratio of 111.112 (the annual value of the Price Index published by the Department of Commerce for 2010, the calendar year preceding the year in which the determination was to be made), to 109.169 (the published annual value of such index for 2009, the calendar year preceding the year in which the subsection was enacted)--equals $254,449.52. --------------------------------------------------------------------------- Conclusion A present-day application of the formula would increase the limit by $20,000.\8\ The Board weighed the relevant factors against a potential adjustment of $20,000. The Board concluded that, on balance, in light of the unprecedented break with the FDIC limit that would result, with possibly harmful consequences, and the absence of evidence that an appreciable number of investors would be benefitted, an adjustment to the limit of protection for cash claims was not appropriate. Accordingly, the Board determined that the standard maximum cash advance amount should remain at $250,000 per customer.'' --------------------------------------------------------------------------- \8\ The $20,000 is arrived at as follows: $250,000 multiplied by 1.08763 which is the ratio of 108.763 (the annual value of the Price Index published by the Department of Commerce for calendar year 2014), to 100.000 (the published annual value of the index for 2009, the calendar year preceding the year in which subsection 78fff- 3(e)(1)(B) was enacted) which equals $271,907.50. Rounded down to $270,000, the adjusted limit reflects an increase of $20,000 from the $250,000 limit. Because the determination is to be made for the calendar year 2016, the annual value of the Price Index to be used is for the ``calendar year preceding the year in which such determination is made,'' namely, the year 2015. However, the 2015 annual value was not available until after the end of the year. This calculation therefore was conditioned on the assumption of no unexpected dramatic rise in inflation in calendar year 2015. See http://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1#reqid=9&step=3&isuri=1&904=2009&903=64&906=a&905=2015&910=x&911=0. --------------------------------------------------------------------------- * * * * * II. Date of Effectiveness and Timing for Commission Action Within thirty-five days of the date of publication of this notice of the SIPC Board's determination in the Federal Register, or within such longer period (i) as the Commission may designate of not more than ninety days after such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which SIPC consents, the Commission shall: (A) By order approve such determination or (B) Institute proceedings to determine whether such determination should be disapproved. III. Notice of the Determination of the SIPC Board Not To Adjust the Standard Maximum Cash Advance Amount for Inflation Effective January 1, 2016, the Board of Directors of the Securities Investor Protection Corporation determined that an inflation adjustment to the standard maximum cash advance amount, as defined in section 9(d) of the Securities Investor Protection Act, 15 U.S.C. 78fff-3(d), would not be appropriate for the five-year period beginning on January 1, 2017. Accordingly, the Board determined that the standard maximum cash advance amount should remain at $250,000 per customer, effective January 1, 2017 and for the five years immediately thereafter. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(f)(3). --------------------------------------------------------------------------- Dated: February 22, 2016. Robert W. Errett, Deputy Secretary. [FR Doc. 2016-04022 Filed 2-24-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Notices 9561
proposed annual fee. This differs with or otherwise in furtherance of the For the Commission, by the Division of
the methodology used to calculate the purposes of the Act. Trading and Markets, pursuant to delegated
total shares outstanding for other ETPs, authority.14
including Portfolio Depository Receipts, IV. Solicitation of Comments Brent J. Fields,
Index Fund Shares, Managed Fund Secretary.
Interested persons are invited to
Shares, or other security listed under submit written data, views, and [FR Doc. 2016–03951 Filed 2–24–16; 8:45 am]
the Rule 5700 Series where no other fee arguments concerning the foregoing, BILLING CODE 8011–01–P
schedule is specifically applicable listed including whether the proposed rule
on The Nasdaq Global Market. The change is consistent with the Act.
Exchange believes that although the SECURITIES AND EXCHANGE
Comments may be submitted by any of
proposed annual fees are higher for COMMISSION
the following methods:
NextShares than for other ETPs, for the [Release No. SIPA–174; File No. SIPC–2016–
reasons discussed above, these fees are Electronic Comments 01]
equitable and not unfairly
discriminatory. • Use the Commission’s Internet Securities Investor Protection
comment form (http://www.sec.gov/ Corporation
For the above reasons, Nasdaq rules/sro.shtml); or
believes the proposed rule change is AGENCY: Securities and Exchange
consistent with the requirements of • Send an email to rule-comments@
Commission.
Sections 6(b)(4) and 6(b)(5) of the Act.12 sec.gov. Please include File Number SR–
NASDAQ–2016–025 on the subject line. ACTION: Notice of the determination of
B. Self-Regulatory Organization’s the Board of Directors of the Securities
Statement on Burden on Competition Paper Comments Investor Protection Corporation
(‘‘SIPC’’) regarding the standard
The Exchange does not believe that • Send paper comments in triplicate maximum cash advance amount,
the proposed rule change will result in to Secretary, Securities and Exchange beginning January 1, 2017.
any burden on competition that is not Commission, 100 F Street NE.,
necessary or appropriate in furtherance Washington, DC 20549–1090. SUMMARY: Pursuant to Section 3(e)(2) of
of the purposes of the Act. The the Securities Investor Protection Act of
All submissions should refer to File
Exchange believes that the proposed 1970 (‘‘SIPA’’),1 notice is hereby given
Number SR–NASDAQ–2016–025. This that the Board of Directors of SIPC (the
fees for this new exchange-traded file number should be included on the
product will promote competition to the ‘‘Board’’) filed with the Securities and
subject line if email is used. To help the Exchange Commission (‘‘Commission’’)
benefit of the markets and investors by Commission process and review your
making NextShares available to on February 17, 2016 notification that
comments more efficiently, please use the Board has determined, beginning
investors at a reasonable cost across a only one method. The Commission will
broad range of actively managed January 1, 2017, and for the five year
post all comments on the Commission’s period immediately thereafter, that the
investment strategies in a structure that Internet Web site (http://www.sec.gov/
offers the cost and tax efficiencies and standard maximum cash advance
rules/sro.shtml). Copies of the amount available to satisfy customer
shareholder protections of exchange- submission, all subsequent
traded funds. In order to remain claims for cash in a SIPA liquidation
amendments, all written statements proceeding will remain at $250,000. The
competitive with other exchanges that with respect to the proposed rule
also develop and market new ETPs, Commission is publishing this notice to
change that are filed with the solicit comments on Board’s
Nasdaq scrutinizes its fees closely Commission, and all written
before adopting such entry and annual determination from interested parties.
communications relating to the DATES: Comments are to be received on
fees. proposed rule change between the or before March 11, 2016.
C. Self-Regulatory Organization’s Commission and any person, other than
ADDRESSES: Interested persons are
Statement on Comments on the those that may be withheld from the
invited to submit written data, views,
Proposed Rule Change Received From public in accordance with the
and arguments concerning the foregoing
Members, Participants or Others provisions of 5 U.S.C. 552, will be
by any of the following methods:
available for Web site viewing and
Written comments were neither printing in the Commission’s Public Electronic Comments
solicited nor received. Reference Room, 100 F Street NE., • Use the Commission’s Internet
III. Date of Effectiveness of the Washington, DC 20549 on official comment form (http://www.sec.gov/
Proposed Rule Change and Timing for business days between the hours of rules/other.shtml); or
Commission Action 10:00 a.m. and 3:00 p.m. Copies of the • Send an email to rule-comments@
filing also will be available for sec.gov. Please include File Number
The foregoing change has become inspection and copying at the principal SIPC–2016–01 on the subject line.
effective pursuant to Section offices of the Exchange. All comments
19(b)(3)(A)(ii) of the Act.13 At any time received will be posted without change; Paper Comments
within 60 days of the filing of the the Commission does not edit personal • Send paper comments to Brent J.
proposed rule change, the Commission identifying information from Fields, Secretary, Securities and
submissions. You should submit only Exchange Commission, 100 F Street NE.,
mstockstill on DSK4VPTVN1PROD with NOTICES
summarily may temporarily suspend
such rule change if it appears to the information that you wish to make Washington, DC 20549–1090.
Commission that such action is available publicly. All submissions All comments should refer to File
necessary or appropriate in the public should refer to File Number SR– Number SIPC–2016–01. To help the
interest, for the protection of investors, NASDAQ–2016–025, and should be Commission process and review your
submitted on or before March 17, 2016. comments more efficiently, please use
12 15 U.S.C. 78f(b)(4) and (5).
13 15 U.S.C. 78s(b)(3)(A)(ii). 14 17 CFR § 200.30–3(a)(12). 1 15 U.S.C. 78ccc(e)(2).
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![Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Notices 9563
increased coverage under the inflation do so, the Board could not have maximum cash advance amount, as
provision.5 adjusted the amount. defined in section 9(d) of the Securities
The Board expressed concern that a Investor Protection Act, 15 U.S.C. 78fff–
Conclusion
unilateral increase to the SIPA limit 3(d), would not be appropriate for the
could have unintended consequences, A present-day application of the five-year period beginning on January 1,
particularly in light of the issue not formula would increase the limit by 2017. Accordingly, the Board
having been widely studied or $20,000.8 The Board weighed the determined that the standard maximum
discussed. For example, increasing the relevant factors against a potential cash advance amount should remain at
SIPA limit above the deposit insurance adjustment of $20,000. The Board $250,000 per customer, effective January
limit could incentivize the movement of concluded that, on balance, in light of 1, 2017 and for the five years
funds to brokerage accounts as a savings the unprecedented break with the FDIC immediately thereafter.
vehicle, an outcome not consistent with limit that would result, with possibly For the Commission, by the Division of
the intent of SIPA. harmful consequences, and the absence Trading and Markets, pursuant to delegated
Finally, the Board considered the of evidence that an appreciable number authority.9
amount by which the limit of protection of investors would be benefitted, an Dated: February 22, 2016.
for allowed cash claims would change if adjustment to the limit of protection for Robert W. Errett,
adjusted for inflation. Under SIPA cash claims was not appropriate. Deputy Secretary.
Section 78fff–3(e)(1)(B), if the Board Accordingly, the Board determined that [FR Doc. 2016–04022 Filed 2–24–16; 8:45 am]
determines that an adjustment is the standard maximum cash advance BILLING CODE 8011–01–P
appropriate, then $250,000 is to be amount should remain at $250,000 per
multiplied by customer.’’
[t]he ratio of the annual value of the Personal * * * * * SECURITIES AND EXCHANGE
Consumption Expenditures Chain-Type Price COMMISSION
II. Date of Effectiveness and Timing for
Index (or any successor index thereto),
Commission Action [Release No. 34–77198; File No. SR–NYSE–
published by the Department of Commerce, 2016–12]
for the calendar year preceding the year in Within thirty-five days of the date of
which such determination is made, to the publication of this notice of the SIPC Self-Regulatory Organizations; New
published annual value of such index for the Board’s determination in the Federal York Stock Exchange LLC; Notice of
calendar year preceding the year in which Register, or within such longer period
this subsection was enacted. Filing and Immediate Effectiveness of
(i) as the Commission may designate of Proposed Rule Change Amending the
15 U.S.C. 78fff–3(e)(1)(B).6 Although not more than ninety days after such NYSE Listed Company Manual To
the amount of the inflation adjustment date if it finds such longer period to be Adopt a Requirement That Listed
need only be considered if the Board appropriate and publishes its reasons Foreign Private Issuers Must, at a
determines to adjust the $250,000 for for so finding or (ii) as to which SIPC Minimum, Submit a Form 6–K to the
inflation, see SIPA Section 78fff–3(e)(1), consents, the Commission shall: Securities and Exchange Commission
that determination would be (A) By order approve such Containing Semi-Annual Unaudited
meaningless if the adjustment resulted determination or Financial Information
in no change. This was the case on (B) Institute proceedings to determine
January 1, 2011, when application of the whether such determination should be February 19, 2016.
formula would have increased the limit disapproved. Pursuant to Section 19(b)(1) 1 of the
to the adjusted amount of $254,449.52.7 Securities Exchange Act of 1934
III. Notice of the Determination of the
However, under SIPA Section 78fff– (‘‘Act’’),2 and Rule 19b–4 thereunder,3
SIPC Board Not To Adjust the Standard
3(e)(2), because the adjusted amount notice is hereby given that on February
Maximum Cash Advance Amount for
must be rounded down to the nearest 5, 2016, New York Stock Exchange LLC
Inflation
$10,000 if it is not a multiple of $10,000, (‘‘NYSE’’ or ‘‘Exchange’’) filed with the
the limit would have remained at Effective January 1, 2016, the Board of Securities and Exchange Commission
$250,000. Even if it had determined to Directors of the Securities Investor (‘‘Commission’’) the proposed rule
Protection Corporation determined that change as described in Items I and II
5 12 U.S.C. 1821(a)(1)(F)(i)(I). See Deposit an inflation adjustment to the standard below, which Items have been prepared
Insurance Regulations; Permanent Increase in by the Exchange. The Commission is
Standard Coverage Amount; Advertisement of 8 The $20,000 is arrived at as follows: $250,000
Membership; International Banking; Foreign Banks,
publishing this notice to solicit
multiplied by 1.08763 which is the ratio of 108.763
75 FR 49363 n.6 (Aug. 13, 2010). (the annual value of the Price Index published by
comments on the proposed rule change
6 Under SIPA Sections 78fff–3(d) and 78fff–
the Department of Commerce for calendar year from interested persons.
3(e)(1), the Board was required to adjust the 2014), to 100.000 (the published annual value of the
maximum cash advance, if at all, after December 31, index for 2009, the calendar year preceding the year
I. Self-Regulatory Organization’s
2010, but no later than January 1, 2011, and then, in which subsection 78fff–3(e)(1)(B) was enacted) Statement of the Terms of Substance of
could do so every 5 years thereafter. Thus, the five- which equals $271,907.50. Rounded down to the Proposed Rule Change
year period after January 1, 2011, would occur in $270,000, the adjusted limit reflects an increase of
2016. Under SIPA Section 78fff–3(e)(4), any $20,000 from the $250,000 limit. Because the The Exchange proposes to amend the
adjustment to the amount of the cash advance determination is to be made for the calendar year NYSE Listed Company Manual (the
would take effect on January 1 of the year 2016, the annual value of the Price Index to be used ‘‘Manual’’) to adopt a requirement that
immediately after the year in which the adjustment is for the ‘‘calendar year preceding the year in
was made. which such determination is made,’’ namely, the
listed foreign private issuers must, at a
mstockstill on DSK4VPTVN1PROD with NOTICES
7 The calculation would be as follows: $250,000 year 2015. However, the 2015 annual value was not minimum, submit a Form 6–K to the
multiplied by 1.017798—the ratio of 111.112 (the available until after the end of the year. This Securities and Exchange Commission
annual value of the Price Index published by the calculation therefore was conditioned on the (‘‘SEC’’) containing semi-annual
Department of Commerce for 2010, the calendar assumption of no unexpected dramatic rise in
year preceding the year in which the determination inflation in calendar year 2015. See http:// 9 17
was to be made), to 109.169 (the published annual www.bea.gov/iTable/iTable.cfm?ReqID CFR 200.30–3(f)(3).
1 15 U.S.C. 78s(b)(1).
value of such index for 2009, the calendar year =9&step=1#reqid=9&step=3&isuri
2 15 U.S.C. 78a.
preceding the year in which the subsection was =1&904=2009&903=64&906=a&905
enacted)—equals $254,449.52. =2015&910=x&911=0. 3 17 CFR 240.19b–4.
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Document Created: 2018-02-02 14:34:55
Document Modified: 2018-02-02 14:34:55
| 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 | |
| Action | Notice of the determination of the Board of Directors of the Securities Investor Protection Corporation (``SIPC'') regarding the standard maximum cash advance amount, beginning January 1, 2017. | |
| Dates | Comments are to be received on or before March 11, 2016. | |
| Contact | Michael A. Macchiaroli, Associate Director, at (202) 551-5525; Thomas K. McGowan, Associate Director, at (202) 551-5521; Randall W. Roy, Deputy Associate Director, at (202) 551-5522; Timothy C. Fox, Branch Chief, at (202) 551-5687; or Rose Russo Wells, Senior Counsel, at (202) 551-5527; Office of Financial Responsibility, Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-7010. | |
| FR Citation | 81 FR 9561 |
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