82 FR 16464 - Order Granting Application by MIAX PEARL, LLC for an Exemption Pursuant to Section 36(a) of the Exchange Act From the Rule Filing Requirements of Section 19(b) of the Exchange Act With Respect to Certain Rules Incorporated by Reference
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 63 (April 4, 2017)
Federal Register Volume 82, Issue 63 (April 4, 2017)
| Page Range | 16464-16466 | |
| FR Document | 2017-06570 |
[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)] [Notices] [Pages 16464-16466] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-06570] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80338] Order Granting Application by MIAX PEARL, LLC for an Exemption Pursuant to Section 36(a) of the Exchange Act From the Rule Filing Requirements of Section 19(b) of the Exchange Act With Respect to Certain Rules Incorporated by Reference March 29, 2017. MIAX PEARL, LLC (``MIAX PEARL'' or ``Exchange'') has filed with the Securities and Exchange Commission (``Commission'') an application for an exemption under Section 36(a)(1) of the Securities Exchange Act of 1934 (``Exchange Act'') \1\ from the rule filing requirements of Section 19(b) of the Exchange Act \2\ with respect to certain rules of the Miami International Securities Exchange, LLC (``MIAX Options'' \3\) that the Exchange seeks to incorporate by reference. Section 36 of the Exchange Act authorizes the Commission to conditionally or unconditionally exempt any person, [[Page 16465]] security, or transaction, or any class thereof, from any provision of the Exchange Act or rule thereunder, if necessary or appropriate in the public interest and consistent with the protection of investors. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78mm(a)(1). \2\ 15 U.S.C. 78s(b). \3\ The Commission notes that MIAX PEARL referred to the Miami International Securities Exchange, LLC as ``MIAX Options'' in its application for an exemption under Section 36(a)(1) of the Exchange Act. See Letter from Deborah L. Carroll, Associate General Counsel, MIAX PEARL, to Brent J. Fields, Secretary, Commission, dated February 17, 2017 (``Exemptive Request''). References herein to the rules of MIAX Options are to the rules of the Miami International Securities Exchange, LLC. --------------------------------------------------------------------------- Both MIAX PEARL and MIAX Options are Participants in the National Market System Plan Governing the Consolidated Audit Trail (``CAT NMS Plan'' or ``Plan'').\4\ Each Participant in the CAT NMS Plan is required to enforce compliance by its members with the provisions of the Plan by adopting a ``Compliance Rule'' applicable to its members.\5\ On January 30, 2017, MIAX Options filed a proposed rule change with the Commission to adopt new Chapter XVII comprising MIAX Options Rules 1701-1712 (``MIAX Options Compliance Rule'').\6\ On February 1, 2017, MIAX PEARL filed a proposed rule change with the Commission to incorporate by reference, in new Chapter XVII of the MIAX PEARL rulebook, the rules contained in MIAX Options Chapter XVII.\7\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 79318 (November 15, 2016), 81 FR 84696 (November 23, 2016) (``CAT NMS Plan Approval Order''). All capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the CAT NMS Plan or CAT NMS Plan Approval Order. \5\ Id. at 84945, 84950. \6\ See Securities Exchange Act Release No. 79937 (February 2, 2017), 82 FR 9790 (February 8, 2017). \7\ See Securities Exchange Act Release No. 79938 (February 2, 2017), 82 FR 9929 (February 8, 2017). MIAX PEARL and MIAX Options' proposed rule changes were approved by the Commission on March 15, 2017. See Securities Exchange Act Release No. 80256, 82 FR 14526 (March 21, 2017). --------------------------------------------------------------------------- MIAX PEARL has requested, pursuant to Rule 0-12 under the Exchange Act,\8\ that the Commission grant the Exchange an exemption from the rule filing requirements of Section 19(b) of the Exchange Act for changes to MIAX PEARL Chapter XVII that are effected solely by virtue of a change to Chapter XVII of the MIAX Options rules. Specifically, MIAX PEARL requests that it be permitted to incorporate by reference changes made to each MIAX Options Compliance Rule that is cross- referenced in the MIAX PEARL Chapter XVII rules,\9\ without the need for the Exchange to file separately the same proposed rule changes pursuant to Section 19(b) of the Exchange Act.\10\ By virtue of these incorporations by reference, MIAX PEARL members will comply with the Compliance Rule by complying with the MIAX Options rules referenced in the MIAX PEARL Chapter XVII rules.\11\ MIAX PEARL does not intend to incorporate by reference any trading rules. The Exchange states that in each instance, the Exchange proposes to incorporate by reference categories of rules (rather than individual rules within a category) that are regulatory rules. MIAX PEARL will, as a condition of this exemption, provide written notice to its members whenever MIAX Options proposes a change to Chapter XVII of its rules.\12\ Such notice will alert MIAX PEARL members to the proposed rule change and give them an opportunity to comment on the proposal. MIAX PEARL states that it will also inform members in writing when the Commission approves any such proposed changes.\13\ --------------------------------------------------------------------------- \8\ 17 CFR 240.0-12. \9\ MIAX PEARL Chapter XVII states ``the rules contained in MIAX Options Exchange Chapter XVII, as such rules may be in effect from time to time (the `Chapter XVII Rules'), are hereby incorporated by reference into this MIAX PEARL Chapter XVII, and are thus MIAX PEARL Rules and thereby applicable to MIAX PEARL Members.'' \10\ See Exemptive Request, supra note 3, at 2-3. \11\ Id. at 3. \12\ The Exchange states that it will provide such notice on its Web site in the same section it uses to post its own proposed rule change filings pursuant to Rule 19b-4(l). In addition, the Exchange states that its Web site will also include a link to the MIAX Options Web site where the proposed rule change filings are located. Id. \13\ Id. --------------------------------------------------------------------------- The Exchange believes this exemption is appropriate in the public interest and consistent with the protection of investors because it will promote more efficient use of the Exchange's and the Commission's resources by avoiding duplicative rule filings based on simultaneous changes to identical rules sought by more than one self-regulatory organization (``SRO''),\14\ and because it will result in the Exchange's rules being consistent with the relevant cross-referenced MIAX Options rules at all times, thus ensuring identical regulation of joint members of MIAX PEARL and MIAX Options with respect to the incorporated rules.\15\ The Exchange believes that, without such an exemption, joint members could be subject to two different standards.\16\ --------------------------------------------------------------------------- \14\ Id. \15\ Id. \16\ Id. --------------------------------------------------------------------------- The Commission has issued exemptions similar to the Exchange's request.\17\ In granting one such exemption in 2010, the Commission repeated a prior, 2004 Commission statement that it would consider similar future exemption requests from other SROs, provided that: --------------------------------------------------------------------------- \17\ See, e.g., Securities Exchange Act Release Nos. 72650 (July 22, 2014), 79 FR 44075 (July 29, 2014) (order granting exemptive requests from NASDAQ OMX BX, Inc. and the NASDAQ Stock Market LLC relating to rules of NASDAQ OMX PHLX LLC incorporated by reference); 67256 (June 26, 2012), 77 FR 39277, 39286 (July 2, 2012) (order approving SR-BX-2012-030 and granting exemptive request relating to rules incorporated by reference by the BX Options rules); 61534 (February 18, 2010), 75 FR 8760 (February 25, 2010) (order granting BATS Exchange, Inc.'s exemptive request relating to rules incorporated by reference by the BATS Exchange Options Market rules) (``BATS Options Market Order''); 67256 (June 26, 2012), 77 FR 39277, 39286 (July 2, 2012) (order approving SR-BX-2012-030 and granting exemptive request relating to rules incorporated by reference by the BX Options rules); and 57478 (March 12, 2008), 73 FR 14521, 14539-40 (March 18, 2008) (order approving SR-NASDAQ-2007-004 and SR-NASDAQ- 2007-080, and granting exemptive request relating to rules incorporated by reference by The NASDAQ Options Market). ---------------------------------------------------------------------------An SRO wishing to incorporate rules of another SRO by reference has submitted a written request for an order exempting it from the requirement in Section 19(b) of the Exchange Act to file proposed rule changes relating to the rules incorporated by reference, has identified the applicable originating SRO(s), together with the rules it wants to incorporate by reference, and otherwise has complied with the procedural requirements set forth in the Commission's release governing procedures for requesting exemptive orders pursuant to Rule 0-12 under the Exchange Act; \18\ --------------------------------------------------------------------------- \18\ See 17 CFR 240.0-12 and Securities Exchange Act Release No. 39624 (February 5, 1998), 63 FR 8101 (February 18, 1998) (``Commission Procedures for Filing Applications for Orders for Exemptive Relief Pursuant to Section 36 of the Exchange Act; Final Rule''). --------------------------------------------------------------------------- The incorporating SRO has requested incorporation of categories of rules (rather than individual rules within a category) that are not trading rules (e.g., the SRO has requested incorporation of rules such as margin, suitability, or arbitration); and The incorporating SRO has reasonable procedures in place to provide written notice to its members each time a change is proposed to the incorporated rules of another SRO.\19\ --------------------------------------------------------------------------- \19\ See BATS Options Market Order, supra note 17 (citing Securities Exchange Act Release No. 49260 (February 17, 2004), 69 FR 8500 (February 24, 2004) (order granting exemptive request relating to rules incorporated by reference by several SROs) (``2004 Order'')). --------------------------------------------------------------------------- The Commission believes that the Exchange has satisfied each of these conditions. The Commission also believes that granting the Exchange an exemption from the rule filing requirements under Section 19(b) of the Exchange Act will promote efficient use of Commission and Exchange resources by avoiding duplicative rule filings based on simultaneous changes to identical rule text sought by more than one SRO.\20\ The Commission therefore finds it appropriate in the public interest and consistent with the protection of investors to exempt the Exchange from the rule filing requirements under Section 19(b) of the [[Page 16466]] Exchange Act with respect to the above-described rules it has incorporated by reference. This exemption is conditioned upon the Exchange promptly providing written notice to its members whenever MIAX Options changes a rule that the Exchange has incorporated by reference. --------------------------------------------------------------------------- \20\ See BATS Options Market Order, supra note 17, 75 FR at 8761; see also 2004 Order, supra note 19, 69 FR at 8502. --------------------------------------------------------------------------- Accordingly, it is ordered, pursuant to Section 36 of the Exchange Act,\21\ that the Exchange is exempt from the rule filing requirements of Section 19(b) of the Exchange Act solely with respect to changes to the rules identified in its request that incorporate by reference certain MIAX Options rules that are the result of changes to such MIAX Options' rules, provided that the Exchange promptly provides written notice to its members whenever MIAX Options proposes to change a rule that the Exchange has incorporated by reference. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78mm. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(76). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-06570 Filed 4-3-17; 8:45 am] BILLING CODE 8011-01-P
![16464 Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Notices
real-time trade information B. impose any significant burden on available for Web site viewing and
disseminated publically. competition; and printing in the Commission’s Public
In addition, the Exchange believes the C. become operative for 30 days from Reference Room, 100 F Street NE.,
proposed rule is designed to foster the date on which it was filed, or such Washington, DC 20549, on official
cooperation and coordination with shorter time as the Commission may business days between the hours of
persons engaged in regulating, clearing, designate, it has become effective 10:00 a.m. and 3:00 p.m. Copies of the
settling, processing information with pursuant to Section 19(b)(3)(A) of the filing also will be available for
respect to, and facilitating transactions Act 9 and Rule 19b–4(f)(6) 10 thereunder. inspection and copying at the principal
in securities. The proposed Rule states At any time within 60 days of the filing office of the Exchange. All comments
that TPHs remain responsible for of the proposed rule change, the received will be posted without change;
reporting accurate trade information and Commission summarily may the Commission does not edit personal
that any actions taken by the Exchange temporarily suspend such rule change if identifying information from
pursuant to Rule 6.51.04 do not it appears to the Commission that such submissions. You should submit only
constitute a determination that an order action is necessary or appropriate in the information that you wish to make
was otherwise systematized or reported public interest, for the protection of available publicly. All submissions
in accordance with the Rules. The investors, or otherwise in furtherance of should refer to File No. SR–CBOE–
proposed rule is not intended to be a the purposes of the Act. If the 2017–024, and should be submitted on
form of regulatory relief and specifically Commission takes such action, the or before April 25, 2017.
notes it will not define or limit the Commission will institute proceedings For the Commission, by the Division of
Exchange’s ability to sanction TPHs for to determine whether the proposed rule Trading and Markets, pursuant to delegated
violations of Exchange rules. The change should be approved or authority.11
Exchange itself does not set any of the disapproved. Eduardo A. Aleman,
default values outlined in the proposed IV. Solicitation of Comments Assistant Secretary.
rule and the entry of order information [FR Doc. 2017–06563 Filed 4–3–17; 8:45 am]
remains the responsibility of TPHs. The Interested persons are invited to
BILLING CODE 8011–01–P
Exchange monitors and surveils TPHs to submit written data, views, and
ensure compliance with Exchange arguments concerning the foregoing,
Rules, including Rule 6.51. including whether the proposed rule SECURITIES AND EXCHANGE
change is consistent with the Act. COMMISSION
B. Self-Regulatory Organization’s Comments may be submitted by any of
Statement on Burden on Competition the following methods: [Release No. 34–80338]
CBOE does not believe that the Electronic Comments Order Granting Application by MIAX
proposed rule change will impose any • Use the Commission’s Internet PEARL, LLC for an Exemption
burden on competition that is not comment form (http://www.sec.gov/ Pursuant to Section 36(a) of the
necessary or appropriate in furtherance rules/sro.shtml); or Exchange Act From the Rule Filing
of the purposes of the Act. The • Send an email to rule-comments@ Requirements of Section 19(b) of the
proposed rule change will not have any sec.gov. Please include File No. SR– Exchange Act With Respect to Certain
impact on intramarket competition as it CBOE–2017–024 on the subject line. Rules Incorporated by Reference
applies equally to all TPH who are
currently subject to requirements of Paper Comments March 29, 2017.
MIAX PEARL, LLC (‘‘MIAX PEARL’’
Rule 6.51. Additionally, the propose • Send paper comments in triplicate
rule change outlines a voluntary method or ‘‘Exchange’’) has filed with the
to Secretary, Securities and Exchange
of handling orders and will not subject Securities and Exchange Commission
Commission, 100 F Street NE.,
any individual TPH to additional (‘‘Commission’’) an application for an
Washington, DC 20549–1090.
burden. exemption under Section 36(a)(1) of the
All submissions should refer to File No. Securities Exchange Act of 1934
Furthermore, the proposed rule is SR–CBOE–2017–024. This file number
meant to ensure Exchange TPH’s are (‘‘Exchange Act’’) 1 from the rule filing
should be included on the subject line requirements of Section 19(b) of the
able to handle and process orders in the if email is used. To help the Exchange Act 2 with respect to certain
same manner as members or Commission process and review your rules of the Miami International
participants of the NYSE Amex. As comments more efficiently, please use Securities Exchange, LLC (‘‘MIAX
such, the proposed rule change will only one method. The Commission will Options’’ 3) that the Exchange seeks to
promote intermarket competition. post all comments on the Commission’s incorporate by reference. Section 36 of
C. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/ the Exchange Act authorizes the
Statement on Comments on the rules/sro.shtml). Copies of the Commission to conditionally or
Proposed Rule Change Received From submission, all subsequent unconditionally exempt any person,
Members, Participants, or Others amendments, all written statements
with respect to the proposed rule 11 17 CFR 200.30–3(a)(12).
The Exchange neither solicited nor change that are filed with the 1 15 U.S.C. 78mm(a)(1).
received comments on the proposed Commission, and all written 2 15 U.S.C. 78s(b).
rule change.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
communications relating to the 3 The Commission notes that MIAX PEARL
proposed rule change between the referred to the Miami International Securities
III. Date of Effectiveness of the Exchange, LLC as ‘‘MIAX Options’’ in its
Proposed Rule Change and Timing for Commission and any person, other than application for an exemption under Section 36(a)(1)
Commission Action those that may be withheld from the of the Exchange Act. See Letter from Deborah L.
public in accordance with the Carroll, Associate General Counsel, MIAX PEARL,
Because the foregoing proposed rule provisions of 5 U.S.C. 552, will be to Brent J. Fields, Secretary, Commission, dated
change does not: February 17, 2017 (‘‘Exemptive Request’’).
References herein to the rules of MIAX Options are
A. Significantly affect the protection 9 15 U.S.C. 78s(b)(3)(A). to the rules of the Miami International Securities
of investors or the public interest; 10 17 CFR 240.19b–4(f)(6). Exchange, LLC.
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![16466 Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Notices
Exchange Act with respect to the above- Executive Office Building, Washington, 03/27/2017, Private Non-Profit
described rules it has incorporated by DC 20503. organizations that provide essential
reference. This exemption is FOR FURTHER INFORMATION CONTACT: services of governmental nature may file
conditioned upon the Exchange Curtis Rich, Agency Clearance Officer, disaster loan applications at the address
promptly providing written notice to its (202) 205–7030 curtis.rich@sba.gov. listed above or other locally announced
members whenever MIAX Options COPIES: A copy of the Form OMB 83–1,
locations.
changes a rule that the Exchange has The following areas have been
supporting statement, and other
incorporated by reference. determined to be adversely affected by
documents submitted to OMB for
Accordingly, it is ordered, pursuant to the disaster:
review may be obtained from the
Section 36 of the Exchange Act,21 that Agency Clearance Officer. Primary Counties: The counties of
the Exchange is exempt from the rule Douglas (including the Washoe
SUPPLEMENTARY INFORMATION: Reporting
filing requirements of Section 19(b) of Tribe of Nevada and California
and recordkeeping requirements, within the State of Nevada), Elko
the Exchange Act solely with respect to
Investment companies, Finance, (including the South Fork Band of
changes to the rules identified in its
Business/Industry, Small Business. Te-Moak Tribe of Western
request that incorporate by reference
Conduct standards. Shoshone), Humboldt, and Washoe
certain MIAX Options rules that are the
Title: Financing Eligibility and the independent city of Carson
result of changes to such MIAX Options’
Statement—Social Disadvantage/ City.
rules, provided that the Exchange
Economic: Disadvantage.
promptly provides written notice to its The Interest Rates are:
Frequency: On Occasion.
members whenever MIAX Options
SBA Form Numbers: 1941 A, B, C.
proposes to change a rule that the Percent
Description of Respondents: Small
Exchange has incorporated by reference.
Business Investment Companies and For Physical Damage:
For the Commission, by the Division of Small Businesses. Non–Profit Organizations With
Trading and Markets, pursuant to delegated Responses: 10. Credit Available Elsewhere ... 2.500
authority.22 Annual Burden: 15. Non–Profit Organizations With-
out Credit Available Else-
Eduardo A. Aleman, Curtis B. Rich, Sr., where ..................................... 2.500
Assistant Secretary. Management Analyst. For Economic Injury:
[FR Doc. 2017–06635 Filed 4–3–17; 8:45 am] Non–Profit Organizations With-
[FR Doc. 2017–06570 Filed 4–3–17; 8:45 am]
out Credit Available Else-
BILLING CODE 8011–01–P BILLING CODE P
where ..................................... 2.500
The number assigned to this disaster
SMALL BUSINESS ADMINISTRATION
SMALL BUSINESS ADMINISTRATION for physical damage is 150986 and for
[Disaster Declaration #15098 and #15099] economic injury is 150996.
Reporting and Recordkeeping (Catalog of Federal Domestic Assistance
Requirements Under OMB Review Nevada Disaster #NV–00048 Number 59008)
AGENCY: Small Business Administration. AGENCY: U.S. Small Business James E. Rivera,
ACTION: 30-Day notice.
Administration. Associate Administrator for Disaster
ACTION: Notice Assistance.
SUMMARY: The Small Business [FR Doc. 2017–06580 Filed 4–3–17; 8:45 am]
Administration (SBA) is publishing this SUMMARY: This is a Notice of the
BILLING CODE 8025–01–P
notice to comply with requirements of Presidential declaration of a major
the Paperwork Reduction Act (PRA) (44 disaster for Public Assistance Only for
U.S.C. Chapter 35), which requires the State of Nevada (FEMA–4307–DR),
dated 03/27/2017. DEPARTMENT OF STATE
agencies to submit proposed reporting
and recordkeeping requirements to Incident: Severe Winter Storms, [Public Notice 9944]
OMB for review and approval, and to Flooding, and Mudslides.
publish a notice in the Federal Register Incident Period: 02/05/2017 through E.O. 13224 Designation of Shane
notifying the public that the agency has 02/22/2017. Dominic Crawford, aka Asadullah, aka
made such a submission. This notice Effective Date: 03/27/2017. Abu Sa’d at-Trinidadi, aka Shane
also allows an additional 30 days for Physical Loan Application Deadline Asadullah Crawford, aka Asad, as a
public comments. Date: 05/26/2017. Specially Designated Global Terrorist
Economic Injury (EIDL) Loan
DATES: Submit comments on or before Acting under the authority of and in
Application Deadline Date: 12/27/2017.
May 4, 2017. accordance with section 1(b) of
ADDRESSES: Submit completed loan Executive Order 13224 of September 23,
ADDRESSES: Comments should refer to
applications to: U.S. Small Business 2001, as amended by Executive Order
the information collection by name and/
Administration, Processing and 13268 of July2, 2002, and Executive
or OMB Control Number and should be
Disbursement Center, 14925 Kingsport Order 13284 of January 23, 2003, I
sent to: Agency Clearance Officer, Curtis
Road, Fort Worth, TX 76155. hereby determine that the person known
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Rich, Small Business Administration,
409 3rd Street SW., 5th Floor, FOR FURTHER INFORMATION CONTACT: A. as Shane Dominic Crawford, aka
Washington, DC 20416; and SBA Desk Escobar, Office of Disaster Assistance, Asadullah, aka Abu Sa’d at-Trinidadi,
Officer, Office of Information and U.S. Small Business Administration, aka Shane Asadullah Crawford, aka
Regulatory Affairs, Office of 409 3rd Street SW., Suite 6050, Asad, poses a significant risk of
Management and Budget, New Washington, DC 20416. committing acts of terrorism that
SUPPLEMENTARY INFORMATION: Notice is threaten the security of U.S. nationals or
21 15 U.S.C. 78mm. hereby given that as a result of the the national security, foreign policy, or
22 17 CFR 200.30–3(a)(76). President’s major disaster declaration on economy of the United States.
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Document Created: 2017-04-03 23:53:45
Document Modified: 2017-04-03 23:53:45
| 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 | 82 FR 16464 |
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