82 FR 17051 - Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to “Tick-Worse” Functionality
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 66 (April 7, 2017)
Federal Register Volume 82, Issue 66 (April 7, 2017)
| Page Range | 17051-17053 | |
| FR Document | 2017-06909 |
[Federal Register Volume 82, Number 66 (Friday, April 7, 2017)] [Notices] [Pages 17051-17053] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-06909] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80362; File No. SR-ISEMercury-2017-06] Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to ``Tick-Worse'' Functionality April 3, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on March 28, 2017, ISE Mercury, LLC (``ISE Mercury'' or ``Exchange'') filed with the Securities and Exchange Commission (``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 (i) request the decommission of ``Tick- Worse'' functionality and (ii) amend Rule 713 (Priority of Quotes and Orders) relating to the priority of split price transactions. The text of the proposed rule change is available on the Exchange's Web site at www.ise.com, at the principal office of the Exchange, 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to (i) decommission the ``Tick-Worse'' functionality and (ii) amend Rule 713 (Priority of Quotes and Orders) as it relates to the priority of split price transactions. The proposed changes are discussed below. ``Tick-Worse'' Functionality The Exchange currently provides market makers \3\ with Tick-Worse functionality, which allows market makers to pre-define the prices and sizes at which the system will automatically move their quotation following an execution that exhausts the size of their existing quotation.\4\ As such, when a market maker's quote is traded out, it can be automatically reinstated into the Exchange's order book at the next best price.\5\ This optional feature is intended to help market makers meet their continuous quoting obligations under the Exchange's rules \6\ when their displayed quotations are exhausted. When a market maker's quote is traded out and automatically reinstated into the Exchange's order book using the Tick-Worse functionality, the reinstated quote will be given priority pursuant to the Exchange's split price priority rule as discussed below. --------------------------------------------------------------------------- \3\ The term ``market makers'' refers to ``Competitive Market Makers'' and ``Primary Market Makers'' collectively. See Rule 100(a)(25). \4\ Tick-Worse functionality is not currently memorialized in the Exchange's rulebook. In addition, the Exchange will not offer Tick-Worse on the new Nasdaq INET system going forward. On September 30, 2004, International Securities Exchange, LLC (``ISE'') filed with the Commission a proposal to codify this functionality in its rulebook, but inadvertently deleted the rule as obsolete rule text in a subsequent proposal filed on December 21, 2012. See Securities Exchange Act Release No. 51050 (January 18, 2005), 70 FR 3758 (January 26, 2005) (SR-ISE-2004-31); Securities Exchange Act Release No. 68570 (January 3, 2013), 78 FR 1901 (January 9, 2013) (SR-ISE- 2012-82). The Exchange imported Rule 713 from ISE's rulebook when the Commission granted the Exchange's application for registration as a national securities exchange, which was after the Tick-Worse functionality rule was inadvertently removed from ISE's rules. See Securities Exchange Act Release No. 76998 (January 29, 2016), 81 FR 6066 (February 4, 2016) (Order Granting Registration as a National Securities Exchange). \5\ Market makers may choose to set Tick-Worse parameters by specifying how many price ticks back, and for what size, the quote is to be reinstated. \6\ Specifically, Primary Market Makers (``PMMs'') are required under Rule 804(e)(1) to enter quotations in all of the series listed on the Exchange of the options classes to which they are appointed on a daily basis. Supplementary Material .01 to Rule 804 further requires PMMs to quote 90% of the time their assigned options class is open for trading on the Exchange. As provided in Rule 804(e)(2), Competitive Market Makers (``CMMs'') are not required to enter quotations in the options class to which they are appointed, but in the event a CMM does initiate quoting, such CMM is generally required to quote 60% of the time its assigned options class is open for trading on the Exchange. --------------------------------------------------------------------------- Due to the lack of demand for the Tick-Worse feature, the Exchange proposes to decommission the use of this functionality as it migrates symbols to INET no later than in 2017 Q3.\7\ As discussed above, the Exchange offers the Tick-Worse feature as a voluntary tool for market makers to assist them in meeting their continuous quoting obligations under the Exchange's rules. As such, market makers are not required to use the Exchange-provided functionality and can program their own systems to perform the same functions if they prefer. The Exchange has found that almost all market makers use their own systems rather than the Exchange's Tick-Worse feature to send refreshed quotations when their displayed quotations are exhausted, and therefore members have discontinued use of this functionality. Because the Tick-Worse functionality is currently not memorialized in the Exchange's rules as noted above, there is no text of the proposed rule change. The Exchange will provide advance notice to its Members through an Options Trader Alert of the intent to decommission the Tick-Worse functionality.\8\ --------------------------------------------------------------------------- \7\ Currently, this functionality is being used by one market maker on the Exchange. \8\ The Exchange notes that it similarly decommissioned Tick- Worse on ISE Gemini, LLC on February 21, 2017. See Market Information Circular 2017-10. --------------------------------------------------------------------------- [[Page 17052]] Split Price Priority The Exchange is proposing to delete Rule 713(f), which relates to the priority of split price transactions, because this priority rule currently only applies in the context of the Tick-Worse functionality, as described above, which the Exchange proposes to decommission. The Exchange proposes to delete this rule no later than 2017 Q3, along with the decommissioning of the Tick-Worse functionality. Rule 713(f) provides that if a Member purchases (sells) one (1) or more options contracts of a particular series at a particular price, it shall at the next lower (higher) price at which there are Professional Orders or market maker quotes, have priority over such Professional Orders and market maker quotes in purchasing (selling) up to the equivalent number of options contracts of the same series that it purchased (sold) at the higher (lower) price, but only if the purchase (sale) so effected represents the opposite side of a transaction with the same offer (bid) as the earlier purchase (sale). Although the language of Rule 713(f) is more general, the Exchange's intent was to apply split price priority solely to the Tick-Worse functionality. Example --Primary Market Maker has opted into tick worse functionality and selected to tick worse and post 10 contracts at a penny worse than their original quote --Primary Market Maker quote for 10 contracts bid at $1.00 and 10 contracts offered at $1.02 --Additionally, there is a Priority Customer order to buy 5 contracts at $0.99, and a Competitive Market Maker quote for 10 contracts bid at $0.99 and 10 contracts offered at $1.02 --A member enters a sell order for 20 contracts at $0.99 --This order will trade as follows: --10 contracts trade at $1.00 with the Primary Market Maker bid quote, and Primary Market Maker is ticked worse to 10 contracts bid at $0.99 --5 contracts trade at $0.99 with the Priority Customer order due to customer priority --5 contracts trade at $0.99 with the Primary Market Maker's ticked worse quote due to the split price priority rule; 0 contracts trade with the Competitive Market Maker bid quote The Exchange represents that Tick-Worse has historically only ever applied in the context of the split price priority rule in Rule 713(f). Furthermore, the Exchange has historically only ever awarded priority pursuant to Rule 713(f) for split price transactions that occur in the Tick-Worse functionality, and the existing rule should have been clarified to more accurately reflect its current application. Nonetheless, the Exchange is now proposing to delete the rule text in its entirety along with decommissioning the Tick-Worse functionality, as proposed above. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\9\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\10\ in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- ``Tick-Worse'' Functionality As noted above, the Exchange originally offered Tick-Worse as an optional feature to help market makers meet their continuous quoting obligations under the Exchange's rules. The Exchange believes that its proposal is consistent with the Act because it has found that the Tick- Worse feature is rarely used today\11\ as almost all market makers use their own systems to send refreshed quotations when their displayed quotations are exhausted. The Exchange therefore believes that it is consistent with the Act to propose to discontinue use of this functionality prior to the migration to INET. Because one member continues to utilize the functionality, the Exchange believes that providing advance notice of the intent to decommission this functionality will serve to prepare Members as to the upcoming change with INET. As such, the Exchange believes that decommissioning Tick- Worse prior to the migration to INET and providing advance notice to its members is consistent with the Act because it eliminates any investor uncertainty related to the status of this functionality. --------------------------------------------------------------------------- \11\ It is only being used by one market maker. --------------------------------------------------------------------------- Split Price Priority The Exchange also believes that its proposal to delete the split price priority rule in Rule 713(f) protects investors and the public interest because it removes rule text that will become obsolete with the decommission of the Tick-Worse functionality. As described above, the split price priority rule only applies to the Tick-Worse functionality. Because the Rule is more general than its current, specific application, however, the Exchange believes that the continued presence of Rule 713(f) in its rules even after retiring the Tick-Worse functionality will be confusing to its members and investors. By removing obsolete rule text that only applies in the context of Tick- Worse, the Exchange is eliminating any potential for confusion about how its systems operate. 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 not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not designed to have any competitive impact but rather request the decommission of a rarely-used functionality on the Exchange and relatedly, to remove the rule text that this functionality supports from the Exchange's rulebook, thereby reducing investor confusion and making the Exchange's rules easier to understand and navigate. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \12\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\13\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(iii). \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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 [[Page 17053]] action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. 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-ISEMercury-2017-06 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-ISEMercury-2017-06. 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-ISEMercury-2017-06 and should be submitted on or before April 28, 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. 2017-06909 Filed 4-6-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 66 / Friday, April 7, 2017 / Notices 17051
Rollover Option are subject to functionality and (ii) amend Rule 713 such, when a market maker’s quote is
modification, termination or suspension (Priority of Quotes and Orders) relating traded out, it can be automatically
without notice, except in certain limited to the priority of split price transactions. reinstated into the Exchange’s order
cases. The text of the proposed rule change book at the next best price.5 This
4. Any DSC imposed on a Series’ is available on the Exchange’s Web site optional feature is intended to help
Units will comply with the at www.ise.com, at the principal office market makers meet their continuous
requirements of subparagraphs (1), (2) of the Exchange, and at the quoting obligations under the
and (3) of rule 6c–10(a) under the Act. Commission’s Public Reference Room. Exchange’s rules 6 when their displayed
5. Each Series offering Units subject to quotations are exhausted. When a
a DSC will include in its prospectus the II. Self-Regulatory Organization’s
Statement of the Purpose of, and market maker’s quote is traded out and
disclosure required by Form N–1A automatically reinstated into the
relating to deferred sales charges Statutory Basis for, the Proposed Rule
Change Exchange’s order book using the Tick-
(modified as appropriate to reflect the Worse functionality, the reinstated
differences between UITs and open-end In its filing with the Commission, the quote will be given priority pursuant to
management investment companies) Exchange included statements the Exchange’s split price priority rule
and a schedule setting forth the number concerning the purpose of and basis for as discussed below.
and date of each Installment Payment. the proposed rule change and discussed Due to the lack of demand for the
any comments it received on the Tick-Worse feature, the Exchange
B. Net Worth Requirement proposed rule change. The text of these proposes to decommission the use of
Applicants will comply in all respects statements may be examined at the this functionality as it migrates symbols
with the requirements of rule 14a–3 places specified in Item IV below. The to INET no later than in 2017 Q3.7 As
under the Act, except that the Exchange has prepared summaries, set discussed above, the Exchange offers the
Structured Series will not restrict their forth in sections A, B, and C below, of Tick-Worse feature as a voluntary tool
portfolio investments to ‘‘eligible trust the most significant aspects of such for market makers to assist them in
securities.’’ statements. meeting their continuous quoting
For the Commission, by the Division of A. Self-Regulatory Organization’s obligations under the Exchange’s rules.
Investment Management, under delegated Statement of the Purpose of, and As such, market makers are not required
authority. to use the Exchange-provided
Statutory Basis for, the Proposed Rule
Eduardo A. Aleman, functionality and can program their own
Change
Assistant Secretary. systems to perform the same functions
[FR Doc. 2017–06908 Filed 4–6–17; 8:45 am] 1. Purpose if they prefer. The Exchange has found
BILLING CODE 8011–01–P The purpose of the proposed rule that almost all market makers use their
change is to (i) decommission the ‘‘Tick- own systems rather than the Exchange’s
Worse’’ functionality and (ii) amend Tick-Worse feature to send refreshed
SECURITIES AND EXCHANGE Rule 713 (Priority of Quotes and Orders) quotations when their displayed
COMMISSION as it relates to the priority of split price quotations are exhausted, and therefore
[Release No. 34–80362; File No. SR– transactions. The proposed changes are members have discontinued use of this
ISEMercury–2017–06] discussed below. functionality. Because the Tick-Worse
functionality is currently not
‘‘Tick-Worse’’ Functionality memorialized in the Exchange’s rules as
Self-Regulatory Organizations; ISE
Mercury, LLC; Notice of Filing and The Exchange currently provides noted above, there is no text of the
Immediate Effectiveness of Proposed market makers 3 with Tick-Worse proposed rule change. The Exchange
Rule Change to ‘‘Tick-Worse’’ functionality, which allows market will provide advance notice to its
Functionality makers to pre-define the prices and Members through an Options Trader
sizes at which the system will Alert of the intent to decommission the
April 3, 2017. automatically move their quotation Tick-Worse functionality.8
Pursuant to Section 19(b)(1) of the following an execution that exhausts the
Securities Exchange Act of 1934 size of their existing quotation.4 As (February 4, 2016) (Order Granting Registration as
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 a National Securities Exchange).
notice is hereby given that on March 28, 3 The term ‘‘market makers’’ refers to 5 Market makers may choose to set Tick-Worse
2017, ISE Mercury, LLC (‘‘ISE Mercury’’ ‘‘Competitive Market Makers’’ and ‘‘Primary Market parameters by specifying how many price ticks
Makers’’ collectively. See Rule 100(a)(25). back, and for what size, the quote is to be
or ‘‘Exchange’’) filed with the Securities reinstated.
4 Tick-Worse functionality is not currently
and Exchange Commission 6 Specifically, Primary Market Makers (‘‘PMMs’’)
memorialized in the Exchange’s rulebook. In
(‘‘Commission’’) the proposed rule addition, the Exchange will not offer Tick-Worse on are required under Rule 804(e)(1) to enter
change as described in Items I, II, and the new Nasdaq INET system going forward. On quotations in all of the series listed on the Exchange
III, below, which Items have been September 30, 2004, International Securities of the options classes to which they are appointed
Exchange, LLC (‘‘ISE’’) filed with the Commission on a daily basis. Supplementary Material .01 to
prepared by the Exchange. The Rule 804 further requires PMMs to quote 90% of
a proposal to codify this functionality in its
Commission is publishing this notice to rulebook, but inadvertently deleted the rule as the time their assigned options class is open for
solicit comments on the proposed rule obsolete rule text in a subsequent proposal filed on trading on the Exchange. As provided in Rule
change from interested persons. December 21, 2012. See Securities Exchange Act 804(e)(2), Competitive Market Makers (‘‘CMMs’’)
Release No. 51050 (January 18, 2005), 70 FR 3758 are not required to enter quotations in the options
I. Self-Regulatory Organization’s (January 26, 2005) (SR–ISE–2004–31); Securities class to which they are appointed, but in the event
nlaroche on DSK30NT082PROD with NOTICES
Exchange Act Release No. 68570 (January 3, 2013), a CMM does initiate quoting, such CMM is
Statement of the Terms of Substance of generally required to quote 60% of the time its
78 FR 1901 (January 9, 2013) (SR–ISE–2012–82).
the Proposed Rule Change The Exchange imported Rule 713 from ISE’s assigned options class is open for trading on the
rulebook when the Commission granted the Exchange.
The Exchange proposes to (i) request 7 Currently, this functionality is being used by
Exchange’s application for registration as a national
the decommission of ‘‘Tick-Worse’’ securities exchange, which was after the Tick- one market maker on the Exchange.
Worse functionality rule was inadvertently removed 8 The Exchange notes that it similarly
1 15 U.S.C. 78s(b)(1). from ISE’s rules. See Securities Exchange Act decommissioned Tick-Worse on ISE Gemini, LLC
2 17 CFR 240.19b–4. Release No. 76998 (January 29, 2016), 81 FR 6066 Continued
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![Federal Register / Vol. 82, No. 66 / Friday, April 7, 2017 / Notices 17053
action is: (i) Necessary or appropriate in ISEMercury–2017–06 and should be clearing available to the institutional tri-
the public interest; (ii) for the protection submitted on or before April 28, 2017. party repurchase agreement (‘‘repo’’)
of investors; or (iii) otherwise in market 6 and (ii) make other
For the Commission, by the Division of
furtherance of the purposes of the Act. Trading and Markets, pursuant to delegated amendments and clarifications to the
If the Commission takes such action, the authority.14 GSD Rules, as described below.
Commission shall institute proceedings Eduardo A. Aleman, II. Clearing Agency’s Statement of the
to determine whether the proposed rule Assistant Secretary. Purpose of, and Statutory Basis for, the
should be approved or disapproved.
[FR Doc. 2017–06909 Filed 4–6–17; 8:45 am] Advance Notice
IV. Solicitation of Comments BILLING CODE 8011–01–P In its filing with the Commission, the
Interested persons are invited to clearing agency included statements
submit written data, views, and concerning the purpose of and basis for
arguments concerning the foregoing, SECURITIES AND EXCHANGE the Advance Notice and discussed any
including whether the proposed rule COMMISSION comments it received on the Advance
change is consistent with the Act. [Release No. 34–80361; File No. SR–FICC– Notice. The text of these statements may
Comments may be submitted by any of 2017–803] be examined at the places specified in
the following methods: Item IV below. The clearing agency has
Self-Regulatory Organizations; Fixed prepared summaries, set forth in
Electronic Comments Income Clearing Corporation; Notice of sections A and B below, of the most
—Use the Commission’s Internet Filing of Advance Notice To Establish significant aspects of such statements.
comment form (http://www.sec.gov/ the Centrally Cleared Institutional
rules/sro.shtml); or Triparty Service and Make Other (A) Clearing Agency’s Statement on
—Send an email to rule- Changes Comments on the Advance Notice
comments@sec.gov. Please include Received From Members, Participants,
File Number SR–ISEMercury–2017– April 3, 2017. or Others
06 on the subject line. Pursuant to Section 806(e)(1) of Title Written comments relating to this
VIII of the Dodd-Frank Wall Street proposal have not been solicited or
Paper Comments Reform and Consumer Protection Act received. FICC will notify the
—Send paper comments in triplicate to entitled the Payment, Clearing, and Commission of any written comments
Secretary, Securities and Exchange Settlement Supervision Act of 2010 received by FICC.
Commission, 100 F Street NE., (‘‘Clearing Supervision Act’’) 1 and Rule
Washington, DC 20549–1090. 19b–4(n)(1)(i) under the Securities (B) Advance Notice Filed Pursuant to
All submissions should refer to File Exchange Act of 1934 (‘‘Act’’),2 notice is Section 806(e) of the Payment, Clearing
Number SR–ISEMercury–2017–06. This hereby given that on March 9, 2017, and Settlement Supervision Act
file number should be included on the Fixed Income Clearing Corporation Nature of the Proposed Change
subject line if email is used. To help the (‘‘FICC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’) The proposed rule change would,
Commission process and review your among other things, make central
comments more efficiently, please use the advance notice SR–FICC–2017–803
(‘‘Advance Notice’’) as described in clearing available to the institutional tri-
only one method. The Commission will party repo market through the proposed
post all comments on the Commission’s Items I, II and III below, which Items
have been prepared by the clearing CCIT Service.
Internet Web site (http://www.sec.gov/ The proposed CCIT Service would
rules/sro.shtml). Copies of the agency.3 The Commission is publishing
this notice to solicit comments on the allow the submission of tri-party repo
submission, all subsequent transactions in GCF Repo® 7 Securities
amendments, all written statements Advance Notice from interested
persons. between Netting Members that
with respect to the proposed rule participate in the GCF Repo Service 8
change that are filed with the I. Clearing Agency’s Statement of the and institutional counterparties (other
Commission, and all written Terms of Substance of the Advance than investment companies registered
communications relating to the Notice under the Investment Company Act of
proposed rule change between the This Advance Notice consists of 1940, as amended 9 (‘‘RICs’’)), where the
Commission and any person, other than amendments to the Government institutional counterparties are the cash
those that may be withheld from the Securities Division (‘‘GSD’’) Rulebook lenders in the transactions submitted to
public in accordance with the (‘‘GSD Rules’’) 4 that would (i) establish GSD. The proposed CCIT Service would
provisions of 5 U.S.C. 552, will be the ‘‘Centrally Cleared Institutional create a new GSD limited service
available for Web site viewing and Triparty Service’’ or the ‘‘CCITTM
printing in the Commission’s Public Service’’ 5 and thereby make central ‘‘Centrally Cleared Institutional Triparty Service’’ or
Reference Room, 100 F Street NE., ‘‘CCIT Service’’ would be defined as ‘‘the service
Washington, DC 20549, on official offered by the Corporation to clear institutional
14 17 CFR 200.30–3(a)(12). triparty repurchase agreement transactions, as more
business days between the hours of 1 12 U.S.C. 5465(e)(1). fully described in Rule 3B.’’ Proposed GSD Rule 1,
10:00 a.m. and 3:00 p.m. Copies of the 2 17 CFR 240.19b–4(n)(1)(i). Definitions.
filing also will be available for 3 On March 9, 2017, FICC filed this Advance 6 The proposed rule changes with respect to the
inspection and copying at the principal Notice as a proposed rule change (SR–FICC–2017– establishment of the proposed CCIT Service are
005) with the Commission pursuant to Section reflected in proposed GSD Rule 3B, and conforming
office of the Exchange. All comments changes are proposed to GSD Rules 1, 2, 2A
nlaroche on DSK30NT082PROD with NOTICES
19(b)(1) of the Act, 15 U.S.C. 78s(b)(1), and Rule
received will be posted without change; 19b–4, 17 CFR 240.19b–4. A copy of the proposed (Section 2), 4 (Sections 1a and 7), 5, 22C, 24, 30 and
the Commission does not edit personal rule change is available at http://www.dtcc.com/ 49.
identifying information from legal/sec-rule-filings.aspx. 7 GCF Repo is a registered trademark of FICC.
4 Capitalized terms not defined herein are defined 8 Pursuant to this filing, ‘‘GCF Repo Service’’
submissions. You should submit only
in the GSD Rules, available at http:// would be defined as ‘‘the service offered by the
information that you wish to make www.dtcc.com/legal/rules-and-procedures. Corporation to compare, net and settle GCF Repo
available publicly. All submissions 5 CCIT is a trademark of The Depository Trust & Transactions.’’ Proposed GSD Rule 1, Definitions.
should refer to File Number SR– Clearing Corporation. Pursuant to this filing, 9 15 U.S.C. 80a–1 et seq.
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Document Created: 2017-04-06 23:49:17
Document Modified: 2017-04-06 23:49:17
| 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 | 82 FR 17051 |
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