82 FR 19118 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees at Rule 7030(d)(3)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 78 (April 25, 2017)
Federal Register Volume 82, Issue 78 (April 25, 2017)
| Page Range | 19118-19120 | |
| FR Document | 2017-08285 |
[Federal Register Volume 82, Number 78 (Tuesday, April 25, 2017)] [Notices] [Pages 19118-19120] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-08285] [[Page 19118]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80487; File No. SR-NASDAQ-2017-037] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees at Rule 7030(d)(3) April 19, 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 April 10, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``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 the Substance of the Proposed Rule Change The Exchange proposes to amend the Exchange's fees at Rule 7030(d)(3) to limit the time that the waiver of fees provided by the rule are available and to change how the current limitation under Rule 7030(d)(3)(C) is triggered. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaq.cchwallstreet.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 Exchange initially filed the proposed pricing changes on April 3, 2017 (SR-NASDAQ-2017-036). On April 10, 2017, the Exchange withdrew that filing and submitted this filing. The purpose of the proposed rule change is to amend the Exchange's fees at Rule 7030(d)(3) to limit all of the waiver of fees provided by the rules and to change how the current limitation under Rule 7030(d)(3)(C) is triggered. Rule 7030(d) provides fees for use of the Nasdaq Testing Facility (``NTF''). The NTF provides subscribers with a virtual Nasdaq System test environment that closely approximates the production environment and on which they may test their automated systems that integrate with Nasdaq. For example, the NTF provides subscribers a virtual System environment for testing upcoming Nasdaq releases and product enhancements, as well as testing firm software prior to implementation. The Exchange assesses certain fees under the rule for use of the NTF. Subscribers that conduct tests of the computer-to-computer interface and the Financial Information Exchange interface to ACT and ACES access protocols through the NTF are assessed a fee of $285/hour for Active Connection testing during the normal operating hours of the NTF. Subscribers are also assessed $333/hour for Active Connection testing at all times other than the normal operating hours of the NTF. Subscribers are not assessed a fee for Idle Connection testing. Moreover, subscribers that conduct tests of all Nasdaq access protocol connections not described above, or of market data vendor feeds through the NTF, are assessed $300 per port, per month. Last, subscribers to the NTF located in Carteret, New Jersey are assessed a fee of $1,000 per hand-off, per month for connection to the NTF. The hand-off fee includes either a 1Gb or 10Gb switch port and a cross connect to the NTF. Subscribers are also assessed a one-time installation fee of $1,000 per handoff. Under Rule 7030(d)(3), the Exchange provides three exemptions from the testing fees described above. First, a subscriber is not assessed a fee for testing new or enhanced services and/or software provided by Nasdaq.\3\ Second, a subscriber is not assessed a fee for testing modifications to software and/or services initiated by Nasdaq in response to a contingency.\4\ Third, a subscriber is not assessed a fee for testing by a subscriber of a Nasdaq service that the subscriber has not used previously, except if more than 30 days have elapsed since the subscriber commenced the testing of such Nasdaq service.\5\ --------------------------------------------------------------------------- \3\ See Rule 7030(d)(3)(A). \4\ See Rule 7030(d)(3)(B). \5\ See Rule 7030(d)(3)(C). --------------------------------------------------------------------------- The Exchange is proposing to limit the duration of all exemptions from the fees provided under Rule 7030(d)(3). First, the Exchange is proposing to segregate testing of new services provided by Nasdaq from enhanced services provided by Nasdaq. As noted above, such services are currently not subject to limitation on the exemption from testing fees. As discussed below, the Exchange is proposing to allow testing at no cost for new services for 60 calendar days from the subscriber's notification to Nasdaq \6\ of its commencement of testing, which will be incorporated into Rule 7030(d)(C). The Exchange is proposing to allow free testing of enhanced services and/or software provided by Nasdaq for 30 calendar days from the subscriber's notification to Nasdaq \7\ of its commencement of testing. --------------------------------------------------------------------------- \6\ The Exchange will require subscribers to provide notice to the Exchange via email to NTFbilling@nasdaq.com. Without such notice, normal fees under the rule would apply. \7\ Id. --------------------------------------------------------------------------- Second, the Exchange is proposing to limit the free period for testing of modifications to software and/or services initiated by Nasdaq in response to a contingency to 30 calendar days from the subscriber's notification to Nasdaq that it is commencing testing. The Exchange believes that 30 calendar days is a reasonable time for a subscriber to fully test modifications to software and/or services initiated by Nasdaq in response to a contingency because such changes are less impactful to subscribers as compared to a wholly-new service, or one that is wholly-new to that subscriber. Like the proposed 60 calendar day period allowed for testing a service that a member has not used previously and the proposed 30 calendar day period for enhanced services and/or software, the Exchange is proposing to begin the 30 calendar period upon the subscriber's notification to Nasdaq \8\ of its commencement of testing. --------------------------------------------------------------------------- \8\ Id. --------------------------------------------------------------------------- Last, the Exchange is proposing to change what triggers the limitation under Rule 7030(d)(3)(C) and increase the free period from 30 to 60 calendar days. Currently under Rule 7030(d)(3)(C), testing by a subscriber of [[Page 19119]] a Nasdaq service that the subscriber has not used previously is provided at no cost, except if more than 30 days have elapsed since the subscriber commenced the testing of such Nasdaq service. The Exchange is proposing to harmonize the trigger of the free period with that of the other proposed free periods by amending the rule to reflect that initiation of the period will begin upon the subscriber's notification to Nasdaq \9\ of its commencement of testing instead of the actual initiation thereof. As noted above, the Exchange is also incorporating testing of new services provided by Nasdaq under current Rule 7030(d)(3)(A) into Rule 7030(d)(3)(C). The Exchange notes that all new services provided by Nasdaq are, by definition, new to a subscriber. Thus, current Rule 7030(d)(3)(A) is unclear at what point a new service provided by Nasdaq is no longer ``new.'' Accordingly, the Exchange is instead treating every service that is new to the subscriber equally under the rule. Although the Exchange believes that testing of a new service may be completed within 30 calendar days, the Exchange is increasing the fee waiver period to 60 calendar days. The Exchange believes that, given the complexity of the markets and the need to ensure that systems function as intended prior to implementation, 60 calendar days is a reasonable time during which a member can adequately test a service that is new to them. --------------------------------------------------------------------------- \9\ Id. --------------------------------------------------------------------------- The Exchange is also proposing to delete text concerning a limited time waiver of fees, which has since expired. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\11\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the proposed change is reasonable because it will apply the current fees under Rule 7030(d), which have previously been determined to be reasonable, after a certain time has passed. As described above, the fees under Rule 7030(d) are currently waived for an indefinite time under Rules 7030(d)(3)(A) and (B). The proposed change will apply the fees under Rule 7030(d) once the applicable new fee waiver period has expired. The Exchange believes that the proposed change is equitably allocated and not unfairly discriminatory to subscribers because the proposal removes a distinction that is currently made in the rules that provides subscribers unlimited testing opportunities at no cost in perpetuity, which benefits subscribers that are slow to test changes over those that test timely. Specifically, the Exchange incurs expense in offering the NTF, which is covered by the fees that it assesses for the use thereof. Users of the NTF that are inefficient in their testing represent an inordinate cost based on their use as compared to users of the NTF that test efficiently because inefficient users typically use the NTF significantly more over a longer period of time, which in turn leads to increased costs to the Exchange in offering the platform free of charge indefinitely. These costs are ultimately borne by all users of the NTF in the fees that are assessed by the Exchange for use thereof. Instead of proposing an increase to the fees, the Exchange is instead proposing to apply discipline to the use of the NTF by limiting the fee waiver period for new services to 60 calendar days from the subscriber's notification to Nasdaq of its commencement of the testing of a service that has not been used by the subscriber previously, and limiting the fee waiver period to 30 calendar days from the subscriber's notification to Nasdaq of its commencement of the testing of enhanced or modified services and/or software provided by Nasdaq. Thus, all subscribers may take the steps necessary to test changes and new software and services within the proposed fair length of time or test such changes for a fee pursuant to the fee schedule to the extent the subscriber is unable to complete such testing during the free waiver period. The Exchange has determined that 30 calendar days is a fair length of time for subscribers to test enhanced services and/or software, as well as modifications to software and/or services, as it is consistent with the current limited waiver provided under Rule 7030(d)(3)(C). The Exchange believes that providing 60 calendar days following a subscriber's notification to Nasdaq of its commencement of the testing of a service that has not been used by the subscriber previously as compared to 30 calendar days for all other types of testing under Rule 7030(d)(3) is an equitable allocation and not unfairly discriminatory because enhancements and modifications to existing services or software are less impactful to subscribers as compared to a wholly-new service, or one that is wholly-new to that subscriber. Last, amending the trigger of the free period for testing of a Nasdaq service that the subscriber has not used previously from the date of commencement of testing to the date that the subscriber notified Nasdaq that it has commenced testing will make the application of the waiver consistent with the proposed waivers provided under proposed Rules 7030(d)(3)(A) and (B), and will more accurately reflect the method that Nasdaq currently uses. B. Self-Regulatory Organization's Statement on Burden on Competition In this instance, the proposed changes to the waiver of charges assessed under Rule 7030(d) for use of the NTF do not impose a burden on competition because the Exchange is changing the length of time within which a subscriber may test a service at no cost. The Exchange is providing reasonable timeframes during which a subscriber may test at no cost, after which the subscriber may continue to test but for a fee as provided by the rule. Thus, a subscriber will have adequate time to test at no cost and use of the NTF beyond the allocated free testing periods is completely voluntary. The proposed limitation of the fee waiver will bring discipline to the use of the NTF while also providing ample time for subscribers to use the NTF for testing services and software pursuant to Rule 7030(d)(3). In this regard, to the extent a subscriber does not complete the testing exempted under proposed new Rules 7030(d)(3)(A) through (C), the subscriber may continue to test the changes, but will be assessed the fees for use of the NTF under the rule. In sum, if the changes proposed herein are unattractive to market participants, it is likely that the Exchange will lose market share as a result. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets. 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. [[Page 19120]] III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\12\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-NASDAQ-2017-037 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-NASDAQ-2017-037. 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-NASDAQ-2017-037, and should be submitted on or before May 16, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-08285 Filed 4-24-17; 8:45 am] BILLING CODE 8011-01-P
![19118 Federal Register / Vol. 82, No. 78 / Tuesday, April 25, 2017 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s to a contingency.4 Third, a subscriber is
COMMISSION Statement of the Purpose of, and not assessed a fee for testing by a
Statutory Basis for, the Proposed Rule subscriber of a Nasdaq service that the
[Release No. 34–80487; File No. SR– Change subscriber has not used previously,
NASDAQ–2017–037] except if more than 30 days have
1. Purpose
elapsed since the subscriber
The Exchange initially filed the commenced the testing of such Nasdaq
Self-Regulatory Organizations; The
proposed pricing changes on April 3, service.5
NASDAQ Stock Market LLC; Notice of
2017 (SR–NASDAQ–2017–036). On The Exchange is proposing to limit
Filing and Immediate Effectiveness of April 10, 2017, the Exchange withdrew the duration of all exemptions from the
Proposed Rule Change To Amend that filing and submitted this filing. fees provided under Rule 7030(d)(3).
Fees at Rule 7030(d)(3) The purpose of the proposed rule First, the Exchange is proposing to
April 19, 2017.
change is to amend the Exchange’s fees segregate testing of new services
at Rule 7030(d)(3) to limit all of the provided by Nasdaq from enhanced
Pursuant to Section 19(b)(1) of the waiver of fees provided by the rules and services provided by Nasdaq. As noted
Securities Exchange Act of 1934 to change how the current limitation above, such services are currently not
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 under Rule 7030(d)(3)(C) is triggered. subject to limitation on the exemption
notice is hereby given that on April 10, Rule 7030(d) provides fees for use of the from testing fees. As discussed below,
2017, The NASDAQ Stock Market LLC Nasdaq Testing Facility (‘‘NTF’’). The the Exchange is proposing to allow
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the NTF provides subscribers with a virtual testing at no cost for new services for 60
Securities and Exchange Commission Nasdaq System test environment that calendar days from the subscriber’s
(‘‘SEC’’ or ‘‘Commission’’) the proposed closely approximates the production notification to Nasdaq 6 of its
rule change as described in Items I, II, environment and on which they may commencement of testing, which will be
and III below, which Items have been test their automated systems that incorporated into Rule 7030(d)(C). The
prepared by the Exchange. The integrate with Nasdaq. For example, the Exchange is proposing to allow free
Commission is publishing this notice to NTF provides subscribers a virtual testing of enhanced services and/or
System environment for testing software provided by Nasdaq for 30
solicit comments on the proposed rule
upcoming Nasdaq releases and product calendar days from the subscriber’s
change from interested persons.
enhancements, as well as testing firm notification to Nasdaq 7 of its
I. Self-Regulatory Organization’s software prior to implementation. commencement of testing.
Statement of the Terms of the Substance The Exchange assesses certain fees Second, the Exchange is proposing to
of the Proposed Rule Change under the rule for use of the NTF. limit the free period for testing of
Subscribers that conduct tests of the modifications to software and/or
The Exchange proposes to amend the computer-to-computer interface and the services initiated by Nasdaq in response
Exchange’s fees at Rule 7030(d)(3) to Financial Information Exchange to a contingency to 30 calendar days
limit the time that the waiver of fees interface to ACT and ACES access from the subscriber’s notification to
provided by the rule are available and protocols through the NTF are assessed Nasdaq that it is commencing testing.
to change how the current limitation a fee of $285/hour for Active The Exchange believes that 30 calendar
under Rule 7030(d)(3)(C) is triggered. Connection testing during the normal days is a reasonable time for a
operating hours of the NTF. Subscribers subscriber to fully test modifications to
The text of the proposed rule change are also assessed $333/hour for Active software and/or services initiated by
is available on the Exchange’s Web site Connection testing at all times other Nasdaq in response to a contingency
at http://nasdaq.cchwallstreet.com, at than the normal operating hours of the because such changes are less impactful
the principal office of the Exchange, and NTF. Subscribers are not assessed a fee to subscribers as compared to a wholly-
at the Commission’s Public Reference for Idle Connection testing. Moreover, new service, or one that is wholly-new
Room. subscribers that conduct tests of all to that subscriber. Like the proposed 60
II. Self-Regulatory Organization’s Nasdaq access protocol connections not calendar day period allowed for testing
Statement of the Purpose of, and described above, or of market data a service that a member has not used
Statutory Basis for, the Proposed Rule vendor feeds through the NTF, are previously and the proposed 30
assessed $300 per port, per month. Last, calendar day period for enhanced
Change
subscribers to the NTF located in services and/or software, the Exchange
In its filing with the Commission, the Carteret, New Jersey are assessed a fee is proposing to begin the 30 calendar
Exchange included statements of $1,000 per hand-off, per month for period upon the subscriber’s
concerning the purpose of and basis for connection to the NTF. The hand-off fee notification to Nasdaq 8 of its
the proposed rule change and discussed includes either a 1Gb or 10Gb switch commencement of testing.
port and a cross connect to the NTF. Last, the Exchange is proposing to
any comments it received on the
Subscribers are also assessed a one-time change what triggers the limitation
proposed rule change. The text of these
installation fee of $1,000 per handoff. under Rule 7030(d)(3)(C) and increase
statements may be examined at the
Under Rule 7030(d)(3), the Exchange the free period from 30 to 60 calendar
places specified in Item IV below. The provides three exemptions from the days. Currently under Rule
Exchange has prepared summaries, set testing fees described above. First, a 7030(d)(3)(C), testing by a subscriber of
asabaliauskas on DSK3SPTVN1PROD with NOTICES
forth in sections A, B, and C below, of subscriber is not assessed a fee for
the most significant aspects of such testing new or enhanced services and/or 4 See Rule 7030(d)(3)(B).
statements. software provided by Nasdaq.3 Second, 5 See Rule 7030(d)(3)(C).
6 The Exchange will require subscribers to
a subscriber is not assessed a fee for
provide notice to the Exchange via email to
testing modifications to software and/or NTFbilling@nasdaq.com. Without such notice,
services initiated by Nasdaq in response normal fees under the rule would apply.
1 15 U.S.C. 78s(b)(1). 7 Id.
2 17 CFR 240.19b–4. 3 See Rule 7030(d)(3)(A). 8 Id.
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![19120 Federal Register / Vol. 82, No. 78 / Tuesday, April 25, 2017 / Notices
III. Date of Effectiveness of the Washington, DC 20549 on official solicit comments on the Proposed Rule
Proposed Rule Change and Timing for business days between the hours of Changes from interested persons.
Commission Action 10:00 a.m. and 3:00 p.m. Copies of the
I. Clearing Agencies’ Statements of the
The foregoing rule change has become filing also will be available for
Terms of Substance of the Proposed
effective pursuant to Section inspection and copying at the principal
Rule Changes
19(b)(3)(A)(ii) of the Act.12 office of the Exchange. All comments
received will be posted without change; The Proposed Rule Changes would
At any time within 60 days of the adopt the Clearing Agency Liquidity
filing of the proposed rule change, the the Commission does not edit personal
identifying information from Risk Management Framework
Commission summarily may (‘‘Framework’’) of the Clearing
temporarily suspend such rule change if submissions. You should submit only
information that you wish to make Agencies, described below. The
it appears to the Commission that such Framework would apply to both of
action is: (i) Necessary or appropriate in available publicly. All submissions
should refer to File Number SR– FICC’s divisions, the Government
the public interest; (ii) for the protection Securities Division (‘‘GSD’’) and the
of investors; or (iii) otherwise in NASDAQ–2017–037, and should be
submitted on or before May 16, 2017. Mortgage-Backed Securities Division
furtherance of the purposes of the Act. (‘‘MBSD’’). The Framework would be
If the Commission takes such action, the For the Commission, by the Division of
maintained by the Clearing Agencies in
Commission shall institute proceedings Trading and Markets, pursuant to delegated
authority.13 compliance with Rule 17Ad–22(e)(7)(i),
to determine whether the proposed rule (ii), and (iv) through (ix) under the Act,
should be approved or disapproved. Eduardo A. Aleman,
as described below.3
Assistant Secretary. Although the Clearing Agencies
IV. Solicitation of Comments
[FR Doc. 2017–08285 Filed 4–24–17; 8:45 am] would consider the Framework to be a
Interested persons are invited to BILLING CODE 8011–01–P rule, the Proposed Rule Changes do not
submit written data, views, and require any changes to the Rules, By-
arguments concerning the foregoing, laws and Organization Certificate of
including whether the proposed rule SECURITIES AND EXCHANGE DTC (‘‘DTC Rules’’), the Rulebook of
change is consistent with the Act. COMMISSION GSD (‘‘GSD Rules’’), the Clearing Rules
Comments may be submitted by any of of MBSD (‘‘MBSD Rules’’), or the Rules
the following methods: [Release No. 34–80489; File No. SR–DTC–
2017–004; SR–NSCC–2017–005; SR–FICC– & Procedures of NSCC (‘‘NSCC Rules’’),
Electronic Comments 2017–008] as the Framework would be a
standalone document.4
• Use the Commission’s Internet Self-Regulatory Organizations; The
comment form (http://www.sec.gov/ II. Clearing Agencies’ Statements of the
Depository Trust Company; National
rules/sro.shtml); or Purpose of, and Statutory Basis for, the
Securities Clearing Corporation; Fixed
• Send an email to rule-comments@ Income Clearing Corporation; Notice of
Proposed Rule Changes
sec.gov. Please include File Number SR– Filings of Proposed Rule Changes, as In their filings with the Commission,
NASDAQ–2017–037 on the subject line. Modified by Amendments No. 1, To the Clearing Agencies included
Paper Comments Adopt the Clearing Agency Liquidity statements concerning the purpose of
Risk Management Framework and basis for the Proposed Rule Changes
• Send paper comments in triplicate and discussed any comments they
to Secretary, Securities and Exchange April 19, 2017. received on the Proposed Rule Changes.
Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the The text of these statements may be
Washington, DC 20549–1090. Securities Exchange Act of 1934 examined at the places specified in Item
All submissions should refer to File (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 IV below. The Clearing Agencies have
Number SR–NASDAQ–2017–037. This notice is hereby given that on April 6, prepared summaries, set forth in
file number should be included on the 2017, The Depository Trust Company sections A, B, and C below, of the most
subject line if email is used. To help the (‘‘DTC’’), National Securities Clearing significant aspects of such statements.
Commission process and review your Corporation (‘‘NSCC’’), and Fixed
comments more efficiently, please use Income Clearing Corporation (‘‘FICC’’, (A) Clearing Agencies’ Statements of the
only one method. The Commission will and together with DTC and NSCC, the Purpose of, and Statutory Basis for, the
post all comments on the Commission’s ‘‘Clearing Agencies’’), filed with the Proposed Rule Changes
Internet Web site (http://www.sec.gov/ Securities and Exchange Commission 1. Purpose
rules/sro.shtml). Copies of the (‘‘Commission’’) the proposed rule The Clearing Agencies are proposing
submission, all subsequent changes. On April 13, 2017, the Clearing to adopt the Framework, which would
amendments, all written statements Agencies filed Amendments No. 1 to the set forth the manner in which the
with respect to the proposed rule proposed rule changes, which made Clearing Agencies measure, monitor and
change that are filed with the technical corrections to the Table of
Commission, and all written Contents in the Exhibit 5s. The 3 17 CFR 240.17Ad–22(e)(7)(i), (ii), and (iv)
communications relating to the proposed rule changes, as modified by through (ix). The Commission adopted amendments
proposed rule change between the Amendments No. 1 (hereinafter, to Rule 17Ad–22, including the addition of new
section 17Ad–22(e), on September 28, 2016. See
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Commission and any person, other than collectively ‘‘Proposed Rule Changes’’),
Securities Exchange Act Release No. 78961
those that may be withheld from the are described in Items I and II below, (September 28, 2016), 81 FR 70786 (October 13,
public in accordance with the which Items have been prepared 2016) (S7–03–14). Each of the Clearing Agencies is
provisions of 5 U.S.C. 552, will be primarily by the Clearing Agencies. The a ‘‘covered clearing agency’’ as defined in Rule
available for Web site viewing and Commission is publishing this notice to 17Ad–22(a)(5), and must comply with new section
(e) of Rule 17Ad–22 by April 11, 2017.
printing in the Commission’s Public 4 Capitalized terms not defined herein are defined
Reference Room, 100 F Street NE., 13 17 CFR 200.30–3(a)(12). in the DTC Rules, GSD Rules, MBSD Rules, or
1 15 U.S.C. 78s(b)(1). NSCC Rules, as applicable, available at http://
12 15 U.S.C. 78s(b)(3)(A)(ii). 2 17 CFR 240.19b–4. dtcc.com/legal/rules-and-procedures.
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Document Created: 2017-04-25 02:18:18
Document Modified: 2017-04-25 02:18:18
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 82 FR 19118 |
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