82 FR 22044 - Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Withdrawal of a Proposed Rule Change To Add New MSRB Rule G-49, on Transactions Below the Minimum Denomination of an Issue, to the Rules of the MSRB, and To Rescind Paragraph (f), on Minimum Denominations, From MSRB Rule G-15
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 90 (May 11, 2017)
Federal Register Volume 82, Issue 90 (May 11, 2017)
| Page Range | 22044-22045 | |
| FR Document | 2017-09526 |
[Federal Register Volume 82, Number 90 (Thursday, May 11, 2017)] [Notices] [Pages 22044-22045] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-09526] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80610; File No. SR-MSRB-2017-01] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Withdrawal of a Proposed Rule Change To Add New MSRB Rule G-49, on Transactions Below the Minimum Denomination of an Issue, to the Rules of the MSRB, and To Rescind Paragraph (f), on Minimum Denominations, From MSRB Rule G-15 May 5, 2017. On January 24, 2017, the Municipal Securities Rulemaking Board (``MSRB'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Exchange Act'' or ``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to add new MSRB Rule G-49, on transactions below the minimum denomination of an issue, to the rules of the MSRB, and, in MSRB Rule G-15, on confirmation, clearance, settlement, and other uniform practice requirements with respect to transactions with customers, to rescind paragraph (f), on minimum denominations. The proposed rule change was published for comment in the Federal Register on February 9, 2017.\3\ The Commission received four comment letters on the proposal.\4\ On March 21, 2017, pursuant to Section 19(b)(2) of the Exchange Act,\5\ the MSRB [[Page 22045]] granted an extension of time for the Commission to act on this filing until May 10, 2017. On May 1, 2017, the MSRB withdrew the proposed rule change (SR-MSRB-2017-01). --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 79978 (February 6, 2017), 82 FR 10123. \4\ See letters from Leslie M. Norwood, Managing Director and Associate General Counsel, Securities Industry and Financial Markets Association, dated March 2, 2017; Mike Nichols, Chief Executive Officer, Bond Dealers of America, dated March 2, 2017; Paige W. Pierce, President and Chief Executive Officer, RW Smith, dated March 3, 2017; and James J. Angel, Associate Professor of Finance, Georgetown University, McDonough School of Business, dated March 7, 2017. \5\ 15 U.S.C. 78s(b)(2). \6\ 17 CFR 200.30-3(a)(12). For the Commission, pursuant to delegated authority.\6\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-09526 Filed 5-10-17; 8:45 am] BILLING CODE 8011-01-P
![22044 Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Notices
so, by whom and how often. The Interested persons are invited to should refer to File Number SR–
Commission seeks commenters’ views submit written data, views, and NYSEArca–2017–05 and should be
on the sufficiency of the Exchange’s arguments regarding whether the submitted on or before June 12, 2017
discussion regarding dissemination of proposal should be approved or Rebuttal comments should be submitted
the value of the Benchmark on which disapproved by June 12, 2017. Any by June 26, 2017.
the investment objectives of the Funds person who wishes to file a rebuttal to For the Commission, by the Division of
are based. any other person’s submission must file Trading and Markets, pursuant to delegated
Furthermore, in its filing the that rebuttal by June 26, 2017. The authority.29
Exchange fails to include a Commission asks that commenters Eduardo A. Aleman,
representation that all statements and address the sufficiency of the Assistant Secretary.
representations in the proposal Exchange’s statements in support of the [FR Doc. 2017–09522 Filed 5–10–17; 8:45 am]
regarding the applicability of Exchange proposal, which are set forth in the BILLING CODE 8011–01–P
listing rules specified in the proposal Notice,28 in addition to any other
shall constitute continued listing comments they may wish to submit
requirements for listing the Shares on about the proposed rule change. SECURITIES AND EXCHANGE
the Exchange.26 The Commission seeks Comments may be submitted by any COMMISSION
commenter’s views on whether the of the following methods:
Exchange’s statements in the filing [Release No. 34–80610; File No. SR–MSRB–
Electronic Comments 2017–01]
relating to the applicability of continued
listing requirements for listing and • Use the Commission’s Internet
comment form (http://www.sec.gov/ Self-Regulatory Organizations;
trading of the Shares on the Exchange Municipal Securities Rulemaking
are sufficient to support a determination rules/sro.shtml); or
that the listing and trading of the Shares • Send an email to rule-comments@ Board; Notice of Withdrawal of a
sec.gov. Please include File Number SR– Proposed Rule Change To Add New
would be consistent with Section 6(b)(5) MSRB Rule G–49, on Transactions
NYSEArca–2017–05 on the subject line.
of the Act. Below the Minimum Denomination of
Paper Comments an Issue, to the Rules of the MSRB,
IV. Procedure: Request for Written
Comments • Send paper comments in triplicate and To Rescind Paragraph (f), on
to Secretary, Securities and Exchange Minimum Denominations, From MSRB
The Commission requests that Rule G–15
Commission, 100 F Street NE.,
interested persons provide written
Washington, DC 20549–1090.
submissions of their views, data, and May 5, 2017.
arguments with respect to the issues All submissions should refer to File On January 24, 2017, the Municipal
identified above, as well as any other Numbers SR–NYSEArca–2017–05. This Securities Rulemaking Board (‘‘MSRB’’)
concerns they may have with the file number should be included on the filed with the Securities and Exchange
proposal. In particular, the Commission subject line if email is used. To help the Commission (‘‘Commission’’), pursuant
invites the written views of interested Commission process and review your to Section 19(b)(1) of the Securities
comments more efficiently, please use
persons concerning whether the Exchange Act of 1934 (the ‘‘Exchange
only one method. The Commission will
proposal is consistent with Section Act’’ or ‘‘Act’’) 1 and Rule 19b–4
post all comments on the Commission’s
6(b)(5) or any other provision of the Act, thereunder,2 a proposed rule change to
Internet Web site (http://www.sec.gov/
or the rules and regulations thereunder. add new MSRB Rule G–49, on
rules/sro.shtml). Copies of the
Although there do not appear to be any transactions below the minimum
submission, all subsequent
issues relevant to approval or denomination of an issue, to the rules of
amendments, all written statements
disapproval that would be facilitated by the MSRB, and, in MSRB Rule G–15, on
with respect to the proposed rule
an oral presentation of views, data, and confirmation, clearance, settlement, and
change that are filed with the
arguments, the Commission will other uniform practice requirements
Commission, and all written
consider, pursuant to Rule 19b-4, any with respect to transactions with
communications relating to the
request for an opportunity to make an customers, to rescind paragraph (f), on
proposed rule change between the
oral presentation.27 minimum denominations. The proposed
Commission and any person, other than
rule change was published for comment
those that may be withheld from the
26 The Commission notes that the Exchange has
in the Federal Register on February 9,
made this representation in other proposed rule public in accordance with the
2017.3 The Commission received four
changes to list and trade Trust Issued Receipts. See, provisions of 5 U.S.C. 552, will be
e.g., Amendment No. 1 to Securities Exchange Act comment letters on the proposal.4 On
available for Web site viewing and
Release No. 79917 (February 1, 2017), 82 FR 9620 March 21, 2017, pursuant to Section
printing in the Commission’s Public
(February 7, 2017) (SR–NYSEArca-2017–07), 19(b)(2) of the Exchange Act,5 the MSRB
available at: https://www.sec.gov/comments/sr- Reference Room, 100 F Street NE.,
nysearca-2017-07/nysearca201707-1630210- Washington, DC 20549, on official 29 17 CFR 200.30–3(a)(57).
137426.pdf; Amendment No. 2 to Securities business days between the hours of 1 15
Exchange Act Release No. 79742 (January 5, 2017), U.S.C. 78s(b)(1).
82 FR 3366 (January 11, 2017) (SR–NYSEArca–
10:00 a.m. and 3:00 p.m. Copies of the 2 17 CFR 240.19b–4.
2016–173), available at: https://www.sec.gov/ filing also will be available for 3 See Securities Exchange Act Release No. 79978
comments/sr-nysearca-2016-173/nysearca2016173- inspection and copying at the principal (February 6, 2017), 82 FR 10123.
1678044-149322.pdf. 4 See letters from Leslie M. Norwood, Managing
office of the Exchange. All comments
asabaliauskas on DSK3SPTVN1PROD with NOTICES
27 Section 19(b)(2) of the Act, as amended by the Director and Associate General Counsel, Securities
received will be posted without change; Industry and Financial Markets Association, dated
Securities Act Amendments of 1975, Pub. L. 94–29
(June 4, 1975), grants the Commission flexibility to the Commission does not edit personal March 2, 2017; Mike Nichols, Chief Executive
determine what type of proceeding—either oral or identifying information from Officer, Bond Dealers of America, dated March 2,
notice and opportunity for written comments—is submissions. You should submit only 2017; Paige W. Pierce, President and Chief
appropriate for consideration of a particular Executive Officer, RW Smith, dated March 3, 2017;
information that you wish to make and James J. Angel, Associate Professor of Finance,
proposal by a self-regulatory organization. See
Securities Act Amendments of 1975, Senate Comm. available publicly. All submissions Georgetown University, McDonough School of
on Banking, Housing & Urban Affairs, S. Rep. No. Business, dated March 7, 2017.
75, 94th Cong., 1st Sess. 30 (1975). 28 See supra note 4. 5 15 U.S.C. 78s(b)(2).
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![Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Notices 22045
granted an extension of time for the at www.batstrading.com, at the clearance and settlement of any
Commission to act on this filing until principal office of the Exchange, and at transactions executed by the Member on
May 10, 2017. On May 1, 2017, the the Commission’s Public Reference the Exchange.
MSRB withdrew the proposed rule Room. Thus, while not all Members are
change (SR–MSRB–2017–01). Clearing Members, all Members are
II. Self-Regulatory Organization’s required to either clear their own
For the Commission, pursuant to delegated Statement of the Purpose of, and
authority.6 transactions or to have in place a
Statutory Basis for, the Proposed Rule relationship with a Clearing Member’s
Eduardo A. Aleman, Change
Assistant Secretary.
that has agreed to clear transactions on
In its filing with the Commission, the their behalf (or on behalf of any
[FR Doc. 2017–09526 Filed 5–10–17; 8:45 am]
Exchange included statements Sponsored Participants 8 for which the
BILLING CODE 8011–01–P concerning the purpose of and basis for Member is a Sponsoring Member 9) in
the proposed rule change and discussed order to conduct business on the
any comments it received on the Exchange. Each Member that transacts
SECURITIES AND EXCHANGE proposed rule change. The text of these through a Clearing Member on the
COMMISSION statements may be examined at the Exchange is required to execute a Letter
[Release No. 34–80611; File No. SR– places specified in Item IV below. The of Guarantee which codifies the
BatsBZX–2017–24] Exchange has prepared summaries, set relationship between the Member and
forth in Sections A, B, and C below, of the Clearing Member as it relates to the
Self-Regulatory Organizations; Bats the most significant parts of such Exchange, and provides the Exchange
BZX Exchange, Inc.; Notice of Filing statements. with notice of which Clearing Members
and Immediate Effectiveness of a have relationships with which
Proposed Rule Change to Rule 11.15 of A. Self-Regulatory Organization’s
Statement of the Purpose of, and the Members. Because the Clearing Member
Bats BZX Exchange, Inc. To Authorize that guarantees the Member’s
the Exchange To Share a User’s Risk Statutory Basis for, the Proposed Rule
Change transactions on the Exchange has a
Settings With the Clearing Member financial interest in understanding the
That Clears Transactions on Behalf of 1. Purpose risk settings utilized within the
the User System 10 by the Member, the Exchange
The Exchange is proposing to update
May 5, 2017. Rule 11.15, Clearance and Settlement; is proposing to amend Rule 11.15 to
Pursuant to Section 19(b)(1) of the Anonymity, to authorize the Exchange authorize the Exchange to share any of
Securities Exchange Act of 1934 (the to share any of the User’s risk settings the User’s risk settings (as described
‘‘Act’’),1 and Rule 19b–4 thereunder,2 with the Clearing Member that clears below) with the Clearing Member that
notice is hereby given that on April 24, transactions on behalf of the User, and clears transactions on behalf of the User.
2017, Bats BZX Exchange, Inc. (the to capitalize the term ‘‘Clearing The proposal would provide the
‘‘Exchange’’ or ‘‘BZX’’) filed with the Member’’. Exchange with authority to directly
Securities and Exchange Commission Current Exchange Rule 11.15 requires provide Clearing Members with
(‘‘Commission’’) the proposed rule that all transactions passing through the information that would otherwise be
change as described in Items I and II facilities of the Exchange shall be available to such Clearing Members by
below, which Items have been prepared cleared and settled through a Qualified virtue of their relationship with the
by the Exchange. The Exchange has Clearing Agency 6 using a continuous respective Users (i.e., such Clearing
designated this proposal as a ‘‘non- net settlement system. This requirement Members could instead require each
controversial’’ proposed rule change may be satisfied by direct participation, User to provide such information as a
pursuant to Section 19(b)(3)(A) of the use of direct clearing services, or by condition to continuing to clear
Act 3 and Rule 19b–4(f)(6) thereunder,4 entry into a correspondent clearing transactions for such Users). At this
which renders it effective upon filing arrangement with another Member that time, the Exchange offers a variety of
with the Commission. The Commission clears trades through a Qualified risk settings related to the size of an
is publishing this notice to solicit Clearing Agency (‘‘Clearing Member’’). order (e.g., maximum notional value per
comments on the proposed rule change Rule 11.15 provides that if a Member order and maximum shares per order),
from interested persons. clears transactions through another the order type (e.g., pre-market, post-
Member that is a Clearing Member,7 market, short sales and ISOs), restricted
I. Self-Regulatory Organization’s securities, easy to borrow securities, and
Statement of the Terms of Substance of such Clearing Member shall affirm to
the Proposed Rule Change the Exchange in writing, through letter 8 A Sponsored Participant is defined as ‘‘a person
of authorization, letter of guarantee or which has entered into a sponsorship arrangement
The Exchange filed a proposal to other agreement acceptable to the with a Sponsoring Member pursuant to Rule 11.3.’’
amend Rule 11.15 to authorize the Exchange, its agreement to assume See Exchange Rule 1.5(x).
Exchange to share a User’s 5 risk settings responsibility for clearing and settling 9 A Sponsoring Member is defined as ‘‘a broker-
with the Clearing Member that clears any and all trades executed by the dealer that has been issued a membership by the
transactions on behalf of the User. Exchange who has been designated by a Sponsored
Member designating it as its clearing Participant to execute, clear and settle transactions
The text of the proposed rule change firm. The rules of any such clearing resulting from the System. The Sponsoring Member
is available at the Exchange’s Web site agency shall govern with respect to the shall be either (i) a clearing firm with membership
asabaliauskas on DSK3SPTVN1PROD with NOTICES
in a clearing agency registered with the Commission
6 17 CFR 200.30–3(a)(12). that maintains facilities through which transactions
6 Qualified Clearing Agency is defined as ‘‘a
1 15 may be cleared or (ii) a correspondent firm with a
U.S.C. 78s(b)(1). clearing agency registered with the Commission
2 17 CFR 240.19b–4.
clearing arrangement with any such clearing firm.’’
pursuant to Section 17A of the Act that is deemed See Exchange Rule 1.5(y).
3 15 U.S.C. 78s(b)(3)(A).
qualified by the Exchange.’’ See Exchange Rule 10 System is defined as ‘‘the electronic
4 17 CFR 240.19b–4(f)(6). 1.5(u). communications and trading facility designated by
5 A User is defined as ‘‘any Member or Sponsored 7 The Exchange notes that it also proposes to the Board through which securities orders of Users
Participant who is authorized to obtain access to the amend Rule 11.15(a) to capitalize the term are consolidated for ranking, execution and, when
System pursuant to Rule 11.3.’’ See Exchange Rule ‘‘Clearing Member’’ to ensure consistency within applicable, routing away.’’ See Exchange Rule
1.5(cc). Exchange Rules. 1.5(aa).
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Document Created: 2017-05-11 00:15:15
Document Modified: 2017-05-11 00:15:15
| 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 22044 |
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