82 FR 22024 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.15 of Bats BYX Exchange, Inc. To Authorize the Exchange To Share a User's Risk Settings With the Clearing Member That Clears Transactions on Behalf of the User
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 90 (May 11, 2017)
Federal Register Volume 82, Issue 90 (May 11, 2017)
| Page Range | 22024-22027 | |
| FR Document | 2017-09528 |
[Federal Register Volume 82, Number 90 (Thursday, May 11, 2017)] [Notices] [Pages 22024-22027] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-09528] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80612; File No. SR-BatsBYX-2017-07] Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.15 of Bats BYX Exchange, Inc. To Authorize the Exchange To Share a User's Risk Settings With the Clearing Member That Clears Transactions on Behalf of the User May 5, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on April 24, 2017, Bats BYX Exchange, Inc. (the ``Exchange'' or ``BYX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6) thereunder,\4\ which renders it effective upon filing with the Commission. 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. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend Rule 11.15 to authorize the Exchange to share a User's \5\ risk settings with the Clearing Member that clears transactions on behalf of the User. --------------------------------------------------------------------------- \5\ A User is defined as ``any Member or Sponsored Participant who is authorized to obtain access to the System pursuant to Rule 11.3.'' See Exchange Rule 1.5(cc). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.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 parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is proposing to update Rule 11.15, Clearance and Settlement; Anonymity, to authorize the Exchange to share any of the User's risk settings with the Clearing Member that clears transactions on behalf of the User, and to capitalize the term ``Clearing Member''. Current Exchange Rule 11.15 requires that all transactions passing through the facilities of the Exchange shall be cleared and settled through a Qualified Clearing Agency \6\ using a continuous net settlement system. This requirement may be satisfied by direct participation, use of direct clearing services, or by entry into a correspondent clearing arrangement with another Member that clears trades through a Qualified Clearing Agency (``Clearing Member''). Rule 11.15 provides that if a Member clears transactions through another Member that is a Clearing Member,\7\ such Clearing Member shall affirm to the Exchange in writing, through letter of authorization, letter of guarantee or other agreement acceptable to the Exchange, its agreement to assume responsibility for clearing and settling any and all trades executed by the Member designating it as its clearing firm. The rules of any such clearing agency shall govern with respect to the clearance and settlement of any transactions executed by the Member on the Exchange. --------------------------------------------------------------------------- \6\ Qualified Clearing Agency is defined as ``a clearing agency registered with the Commission pursuant to Section 17A of the Act that is deemed qualified by the Exchange.'' See Exchange Rule 1.5(u). \7\ The Exchange notes that it also proposes to amend Rule 11.15(a) to capitalize the term ``Clearing Member'' to ensure consistency within Exchange Rules. --------------------------------------------------------------------------- Thus, while not all Members are Clearing Members, all Members are required to either clear their own transactions or to have in place a relationship with a Clearing Member's that has agreed to clear transactions on their behalf (or on behalf of any Sponsored Participants \8\ for which the [[Page 22025]] Member is a Sponsoring Member \9\) in order to conduct business on the Exchange. Each Member that transacts through a Clearing Member on the Exchange is required to execute a Letter of Guarantee which codifies the relationship between the Member and the Clearing Member as it relates to the Exchange, and provides the Exchange with notice of which Clearing Members have relationships with which Members. Because the Clearing Member that guarantees the Member's transactions on the Exchange has a financial interest in understanding the risk settings utilized within the System \10\ by the Member, the Exchange is proposing to amend Rule 11.15 to authorize the Exchange to share any of the User's risk settings (as described below) with the Clearing Member that clears transactions on behalf of the User. The proposal would provide the Exchange with authority to directly provide Clearing Members with information that would otherwise be available to such Clearing Members by virtue of their relationship with the respective Users (i.e., such Clearing Members could instead require each User to provide such information as a condition to continuing to clear transactions for such Users). At this time, the Exchange offers a variety of risk settings related to the size of an order (e.g., maximum notional value per order and maximum shares per order), the order type (e.g., pre-market, post-market, short sales and ISOs), restricted securities, easy to borrow securities, and order cut-off (e.g., block new orders and cancel all open orders).\11\ The Exchange proposes to codify these risk settings in proposed Interpretation and Policy .01 to Rule 11.13, as further described below, and to reference such Interpretation and Policy in proposed paragraph (f) of Rule 11.15. --------------------------------------------------------------------------- \8\ A Sponsored Participant is defined as ``a person which has entered into a sponsorship arrangement with a Sponsoring Member pursuant to Rule 11.3.'' See Exchange Rule 1.5(x). \9\ A Sponsoring Member is defined as ``a broker-dealer that has been issued a membership by the Exchange who has been designated by a Sponsored Participant to execute, clear and settle transactions resulting from the System. The Sponsoring Member shall be either (i) a clearing firm with membership in a clearing agency registered with the Commission that maintains facilities through which transactions may be cleared or (ii) a correspondent firm with a clearing arrangement with any such clearing firm.'' See Exchange Rule 1.5(y). \10\ System is defined as ``the electronic communications and trading facility designated by the Board through which securities orders of Users are consolidated for ranking, execution and, when applicable, routing away.'' See Exchange Rule 1.5(aa). \11\ See Securities Exchange Act Release No. 68329 (November 30, 2012), 77 FR 72902 (December 6, 2012) (SR-BYX-2012-022) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Expand the Availability of Risk Management Tools). --------------------------------------------------------------------------- Proposed Interpretation and Policy .01 to Rule 11.13 would state that the risk settings currently offered by the Exchange include: [ssquf] Controls related to the size of an order (including restrictions on the maximum notional value per order and maximum shares per order); [ssquf] controls related to the price of an order (including percentage-based and dollar-based controls); [ssquf] controls related to the order types or modifiers that can be utilized (including pre-market, post-market, short sales, ISOs and Directed ISOs); [ssquf] controls to restrict the types of securities transacted (including restricted securities and easy to borrow securities as well as restricting activity to test symbols only); [ssquf] controls to prohibit duplicative orders; [ssquf] controls to restrict the overall rate of orders; and [ssquf] controls related to the size of an order as compared to the average daily volume of the security (including the ability to specify the minimum average daily volume of the securities for which such controls will be activated); and [ssquf] credit controls measuring both gross and net exposure that warn when approached and, when breached, prevent submission of either all new orders or BYX market orders only. In addition to these controls, the Exchange proposes to codify in proposed Interpretation and Policy .01 other risk functionality that: (i) Permits Users to block new orders submitted, to cancel all open orders, or to both block new orders and cancel all open orders; and (ii) that automatically cancels a User's orders to the extent the User loses its connection to the Exchange. As set forth above, the proposal to authorize the Exchange to share any of the User's risk settings with the Clearing Member that clears transactions on behalf of the User would be limited to the risk settings specified in Rule 11.13, Interpretation and Policy .01. The Exchange notes that the use by a User of the risk settings offered by the Exchange is optional.\12\ By using these optional risk settings, following this proposed rule change a User therefore also opts-in to the Exchange sharing its designated risk settings with its Clearing Member. The Exchange also notes that any Member that does not wish to share its designated risk settings with its Clearing Member could avoid sharing such settings by becoming a Clearing Member. --------------------------------------------------------------------------- \12\ The Exchange does set a maximum allowable order rate threshold in order to ensure the integrity of the System. A User may optionally set a more restrictive order rate threshold but cannot override the Exchange's maximum threshold. --------------------------------------------------------------------------- The Exchange believes that its proposal to share a User's risk settings directly with Clearing Members reduces the administrative burden on participants on the Exchange, including both Clearing Members and Users, and ensures that Clearing Members are receiving information that is up to date and conforms to the settings active in the System. Further, the Exchange believes that the proposal will help such Clearing Members to better monitor and manage the potential risks that they assume when clearing for Users of the Exchange. 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\13\ In particular, the proposal is consistent with Section 6(b)(5) of the Act \14\ because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- As set forth above, the proposed change to Rule 11.15 will allow the Exchange to directly provide a Member's designated risk settings to the Clearing Member that clears trades on behalf of the Member. Because a Clearing Member that executes a clearing Letter of Guarantee on behalf of a Member guarantees all transactions of that Member, and therefore bears the risk associated with those transactions, the Exchange believes that it is appropriate for the Clearing Member to have knowledge of what risk settings the Member may utilize within the System. The proposal will permit Clearing Members who have a financial interest in the risk settings of Members with whom the Clearing Participant has entered into a Letter of Guarantee to better monitor and manage the potential risks assumed by Clearing Members, thereby providing Clearing Members with greater control and flexibility over setting their own risk tolerance and exposure and aiding Clearing Members in complying with the Act. To the [[Page 22026]] extent a Clearing Member might reasonably require a Member to provide access to its risk setting as a prerequisite to continuing to clear trades on the Member's behalf, the Exchange's proposal to share those risk settings directly reduces the administrative burden on participants on the Exchange, including both Clearing Members and Users. The proposal also ensures that Clearing Members are receiving information that is up to date and conforms to the settings active in the System. The Exchange believes that the proposal is consistent with the Act, particularly Section 6(b)(5),\15\ because it will foster cooperation and coordination with persons engaged in facilitating transactions in securities and more generally, will protect investors and the public interest, by reducing administrative burden on both Clearing Members and other Users and by allowing Clearing Members to better monitor their risk exposure. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange notes that the rule change to adopt paragraph (f) to Rule 11.15 is based on and substantively identical to Bats BZX Exchange Rule 21.17 (``BZX'') and Bats EDGX Exchange (``EDGX'') Rule 21.17, each of which is applicable to options participants of such exchanges. The Exchange also notes that other equities exchanges offer functionality that allows clearing firms to not only directly monitor but also to set certain risk settings in connection with the activities of the firms for which they clear.\16\ --------------------------------------------------------------------------- \16\ See, e.g., Nasdaq Rules 6110 and 6120 relating to the Nasdaq Risk Management Service. --------------------------------------------------------------------------- The Exchange further believes that codifying the risk settings described above in Interpretation and Policy .01 to Rule 11.13 is consistent with the Act as it will provide additional transparency to Exchange Users regarding the optional risk settings offered by the Exchange. As noted above, these settings have been described by the Exchange in prior filings \17\ and further information regarding such settings is available in technical specifications made available by the Exchange. However, the Exchange believes it is appropriate to provide additional details regarding these risk settings in Exchange rules. As such, the Exchange believes that the proposal is consistent with the Act, particularly Section 6(b)(5),\18\ because it will foster cooperation and coordination with persons engaged in facilitating transactions in securities and more generally, will protect investors and the public interest, by providing additional transparency regarding optional risk settings offered by the Exchange. --------------------------------------------------------------------------- \17\ See supra note 11. \18\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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 that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not designed to address any competitive issues and does not pose an undue burden on non-Clearing Members because, unlike Clearing Members, non-Clearing Members do not guarantee the execution of a Member's transactions on the Exchange. The proposal is structured to offer the same enhancement to all Clearing Members, regardless of size, and would not impose a competitive burden on any Member. Any Member that does not wish to share its designated risk settings with its Clearing Member could avoid sharing such settings by becoming a Clearing Member. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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) of the Act \19\ and Rule 19b-4(f)(6) thereunder.\20\ --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(3)(A). \20\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of 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. --------------------------------------------------------------------------- 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change 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 [email protected]. Please include File No. SR-BatsBYX-2017-07 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 No. SR-BatsBYX-2017-07. 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 No. SR-BatsBYX-2017-07, and should be submitted on or before June 1, 2017. [[Page 22027]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-09528 Filed 5-10-17; 8:45 am] BILLING CODE 8011-01-P
![22024 Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Notices
Paper Comments SECURITIES AND EXCHANGE proposed rule change. The text of these
COMMISSION statements may be examined at the
• Send paper comments in triplicate places specified in Item IV below. The
to Secretary, Securities and Exchange [Release No. 34–80612; File No. SR–
BatsBYX–2017–07]
Exchange has prepared summaries, set
Commission, 100 F Street NE., forth in Sections A, B, and C below, of
Washington, DC 20549–1090. Self-Regulatory Organizations; Bats the most significant parts of such
All submissions should refer to File BYX Exchange, Inc.; Notice of Filing statements.
Number SR–ISE–2017–37. This file and Immediate Effectiveness of a A. Self-Regulatory Organization’s
number should be included on the Proposed Rule Change to Rule 11.15 of Statement of the Purpose of, and the
subject line if email is used. To help the Bats BYX Exchange, Inc. To Authorize Statutory Basis for, the Proposed Rule
Commission process and review your the Exchange To Share a User’s Risk Change
comments more efficiently, please use Settings With the Clearing Member
That Clears Transactions on Behalf of 1. Purpose
only one method. The Commission will
the User The Exchange is proposing to update
post all comments on the Commission’s
Rule 11.15, Clearance and Settlement;
Internet Web site (http://www.sec.gov/ May 5, 2017.
Anonymity, to authorize the Exchange
rules/sro.shtml). Copies of the Pursuant to Section 19(b)(1) of the to share any of the User’s risk settings
submission, all subsequent Securities Exchange Act of 1934 (the with the Clearing Member that clears
amendments, all written statements ‘‘Act’’),1 and Rule 19b–4 thereunder,2 transactions on behalf of the User, and
with respect to the proposed rule notice is hereby given that on April 24, to capitalize the term ‘‘Clearing
change that are filed with the 2017, Bats BYX Exchange, Inc. (the Member’’.
Commission, and all written ‘‘Exchange’’ or ‘‘BYX’’) filed with the Current Exchange Rule 11.15 requires
communications relating to the Securities and Exchange Commission that all transactions passing through the
proposed rule change between the (‘‘Commission’’) the proposed rule facilities of the Exchange shall be
Commission and any person, other than change as described in Items I and II cleared and settled through a Qualified
those that may be withheld from the below, which Items have been prepared Clearing Agency 6 using a continuous
public in accordance with the by the Exchange. The Exchange has net settlement system. This requirement
provisions of 5 U.S.C. 552, will be designated this proposal as a ‘‘non- may be satisfied by direct participation,
controversial’’ proposed rule change use of direct clearing services, or by
available for Web site viewing and
pursuant to Section 19(b)(3)(A) of the entry into a correspondent clearing
printing in the Commission’s Public
Act 3 and Rule 19b–4(f)(6) thereunder,4 arrangement with another Member that
Reference Room, 100 F Street NE., which renders it effective upon filing
Washington, DC 20549, on official clears trades through a Qualified
with the Commission. The Commission Clearing Agency (‘‘Clearing Member’’).
business days between the hours of is publishing this notice to solicit Rule 11.15 provides that if a Member
10:00 a.m. and 3:00 p.m. Copies of the comments on the proposed rule change clears transactions through another
filing also will be available for from interested persons. Member that is a Clearing Member,7
inspection and copying at the principal such Clearing Member shall affirm to
office of the Exchange. All comments I. Self-Regulatory Organization’s
Statement of the Terms of Substance of the Exchange in writing, through letter
received will be posted without change; of authorization, letter of guarantee or
the Commission does not edit personal the Proposed Rule Change
other agreement acceptable to the
identifying information from The Exchange filed a proposal to Exchange, its agreement to assume
submissions. You should submit only amend Rule 11.15 to authorize the responsibility for clearing and settling
information that you wish to make Exchange to share a User’s 5 risk settings any and all trades executed by the
available publicly. All submissions with the Clearing Member that clears Member designating it as its clearing
should refer to File Number SR–ISE– transactions on behalf of the User. firm. The rules of any such clearing
2017–37 and should be submitted on or The text of the proposed rule change agency shall govern with respect to the
before June 1, 2017. is available at the Exchange’s Web site clearance and settlement of any
at www.batstrading.com, at the transactions executed by the Member on
For the Commission, by the Division of principal office of the Exchange, and at the Exchange.
Trading and Markets, pursuant to delegated the Commission’s Public Reference Thus, while not all Members are
authority.16 Room. Clearing Members, all Members are
Eduardo A. Aleman, required to either clear their own
II. Self-Regulatory Organization’s
Assistant Secretary. Statement of the Purpose of, and transactions or to have in place a
[FR Doc. 2017–09529 Filed 5–10–17; 8:45 am] Statutory Basis for, the Proposed Rule relationship with a Clearing Member’s
BILLING CODE 8011–01–P Change that has agreed to clear transactions on
their behalf (or on behalf of any
In its filing with the Commission, the Sponsored Participants 8 for which the
Exchange included statements
concerning the purpose of and basis for 6 Qualified Clearing Agency is defined as ‘‘a
the proposed rule change and discussed clearing agency registered with the Commission
any comments it received on the pursuant to Section 17A of the Act that is deemed
asabaliauskas on DSK3SPTVN1PROD with NOTICES
qualified by the Exchange.’’ See Exchange Rule
1 15
1.5(u).
U.S.C. 78s(b)(1). 7 The Exchange notes that it also proposes to
2 17 CFR 240.19b–4. amend Rule 11.15(a) to capitalize the term
3 15 U.S.C. 78s(b)(3)(A).
‘‘Clearing Member’’ to ensure consistency within
4 17 CFR 240.19b–4(f)(6). Exchange Rules.
5 A User is defined as ‘‘any Member or Sponsored 8 A Sponsored Participant is defined as ‘‘a person
Participant who is authorized to obtain access to the which has entered into a sponsorship arrangement
System pursuant to Rule 11.3.’’ See Exchange Rule with a Sponsoring Member pursuant to Rule 11.3.’’
16 17 CFR 200.30–3(a)(12). 1.5(cc). See Exchange Rule 1.5(x).
VerDate Sep<11>2014 16:52 May 10, 2017 Jkt 241001 PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 E:\FR\FM\11MYN1.SGM 11MYN1](https://thefederalregister.org/doc/82_FR_22114/page/1.svg)
![Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Notices 22027
For the Commission, by the Division of staff that record, process, and respond to SECURITIES AND EXCHANGE
Trading and Markets, pursuant to delegated investor contacts. Investors who submit COMMISSION
authority.21 complaints, ask questions, or provide
Eduardo A. Aleman, [Release No. 34–80607; File No. SR–
tips do so voluntarily. Although the BatsEDGX–2017–16]
Assistant Secretary. Investor Form provides a structured
[FR Doc. 2017–09528 Filed 5–10–17; 8:45 am] format for incoming investor Self-Regulatory Organizations; Bats
BILLING CODE 8011–01–P correspondence, the Commission does EDGX Exchange, Inc.; Notice of Filing
not require that investors use any and Immediate Effectiveness of a
particular form or format when Proposed Rule Change to Rule 11.13 of
SECURITIES AND EXCHANGE contacting the agency. Investors who Bats EDGX Exchange, Inc. To
COMMISSION choose not to use the Investor Form will Authorize the Exchange To Share a
receive the same level of service as User’s Risk Settings With the Clearing
Submission for OMB Review; those who do.
Comment Request Firm That Clears Transactions on
OIEA receives approximately 20,000 Behalf of the User
contacts each year through the Investor
Upon Written Request Copies Available Form. Investors who choose not to use May 5, 2017.
From: Securities and Exchange the Investor Form receive the same level Pursuant to Section 19(b)(1) of the
Commission, Office of FOIA Services, of service as those who do. The Securities Exchange Act of 1934 (the
100 F Street NE., Washington, DC Commission uses the information that ‘‘Act’’),1 and Rule 19b–4 thereunder,2
20549–2736. investors supply on the Investor Form to notice is hereby given that on April 24,
Extension: review and process the contact (which 2017, Bats EDGX Exchange, Inc. (the
‘‘Investor Form’’, SEC File No. 270–485, may, in turn, involve responding to ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
OMB Control No. 3235–0547. questions, processing complaints, or, as Securities and Exchange Commission
Notice is hereby given that, pursuant appropriate, initiating enforcement (‘‘Commission’’) the proposed rule
to the Paperwork Reduction Act of 1995 investigations), to maintain a record of change as described in Items I and II
(44 U.S.C. 3501 et seq.), the Securities contacts, to track the volume of investor below, which Items have been prepared
and Exchange Commission complaints, and to analyze trends. by the Exchange. The Exchange has
(‘‘Commission’’) has submitted to the The staff of the Commission estimates designated this proposal as a ‘‘non-
Office of Management and Budget that the total reporting burden for using controversial’’ proposed rule change
(‘‘OMB’’) a request to approve the the Investor Form is 5,000 hours. The pursuant to Section 19(b)(3)(A) of the
collection of information discussed calculation of this estimate depends on Act 3 and Rule 19b–4(f)(6) thereunder,4
below. the number of investors who use the which renders it effective upon filing
Each year the Commission receives forms each year and the estimated time with the Commission. The Commission
several thousand contacts from it takes to complete the forms: 20,000 is publishing this notice to solicit
investors who have complaints or respondents × 15 minutes = 5,000 comments on the proposed rule change
questions on a wide range of burden hours. from interested persons.
investment-related issues. To make it Members of the public should be
easier for the public to contact the aware that an agency may not conduct I. Self-Regulatory Organization’s
agency electronically, the Commission’s or sponsor, and a person is not required Statement of the Terms of Substance of
Office of Investor Education and to respond to, a collection of the Proposed Rule Change
Advocacy (‘‘OIEA’’) created an information unless a currently valid The Exchange filed a proposal to
electronic form (the Investor Form) that OMB control number is displayed. amend Rule 11.13, Clearance and
provides drop down options to choose Background documentation for this Settlement; Anonymity, to authorize the
from in order to categorize the investor’s information collection may be viewed at Exchange to share a User’s 5 risk settings
complaint or question, and may also the following link, http:// with the clearing firm that clears
provide the investor with automated www.reginfo.gov. General comments transactions on behalf of the User.
information about their issue. The regarding the above information should The text of the proposed rule change
Investor Form asks investors to provide be directed to the following persons: (i) is available at the Exchange’s Web site
information concerning, among other Desk Officer for the Securities and at www.batstrading.com, at the
things, their names, how they can be Exchange Commission, Office of principal office of the Exchange, and at
reached, the names of the individuals or Information and Regulatory Affairs, the Commission’s Public Reference
entities involved, the nature of their Office of Management and Budget, Room.
complaint or tip, what documents they Room 10102, New Executive Office II. Self-Regulatory Organization’s
can provide, and what, if any, actions Building, Washington, DC 20503 or Statement of the Purpose of, and
they have taken. Use of the Investor send an email to: Shagufta_Ahmed@ Statutory Basis for, the Proposed Rule
Form is voluntary. Absent the forms, the omb.eop.gov; and (ii) Pamela C. Dyson, Change
public still has several ways to contact Director/Chief Information Officer,
the agency, including telephone, Securities and Exchange Commission, In its filing with the Commission, the
facsimile, letters, and email. Investors c/o Remi Pavlik-Simon, 100 F St NE., Exchange included statements
can access the Investor Form through Washington DC, 20549; or send an email concerning the purpose of and basis for
the proposed rule change and discussed
asabaliauskas on DSK3SPTVN1PROD with NOTICES
the consolidated Investor Complaint to: PRA_Mailbox@sec.gov. Comments
and Question Web page. must be submitted to OMB within 30
The dual purpose of the Investor days of this notice.
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Form is to make it easier for the public
to contact the agency with complaints, Dated: May 5, 2017. 3 15 U.S.C. 78s(b)(3)(A).
questions, tips, or other feedback and to Eduardo A. Aleman, 4 17 CFR 240.19b–4(f)(6).
5 A User is defined as ‘‘any Member or Sponsored
streamline the workflow of Commission Assistant Secretary.
Participant who is authorized to obtain access to the
[FR Doc. 2017–09582 Filed 5–10–17; 8:45 am] System pursuant to Rule 11.3.’’ See Exchange Rule
21 17 CFR 200.30–3(a)(12). BILLING CODE 8011–01–P 1.5(ee).
VerDate Sep<11>2014 16:52 May 10, 2017 Jkt 241001 PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 E:\FR\FM\11MYN1.SGM 11MYN1](https://thefederalregister.org/doc/82_FR_22114/page/4.svg)
Document Created: 2017-05-11 00:14:37
Document Modified: 2017-05-11 00:14:37
| 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 22024 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR