82 FR 25362 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Eliminate Requirements That Will Be Duplicative of CAT
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 104 (June 1, 2017)
Federal Register Volume 82, Issue 104 (June 1, 2017)
| Page Range | 25362-25366 | |
| FR Document | 2017-11367 |
[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)] [Notices] [Pages 25362-25366] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11367] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80791; File No. SR-NYSEArca-2017-59] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Eliminate Requirements That Will Be Duplicative of CAT May 26, 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 May 22, 2017, NYSE Arca, Inc. (``NYSE Arca'' or the ``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 Substance of the Proposed Rule Change The Exchange proposes to to delete the Order Audit Trail System (``OATS'') rules in the NYSE Arca Equities Rule 7400 Series (Order Audit Trail System) and amend NYSE Arca Rule 10.2 (Investigations and Regulatory Cooperation) and NYSE Arca Equities Rule 10.2 (Investigations and Regulatory Cooperation) governing submission of Electronic Blue Sheet trading data (``EBS'') as these Rules provide for the collection of information that is duplicative of the data collection requirements of the CAT once the Financial Industry Regulatory Authority (``FINRA'') publishes a notice announcing the date that it will retire its OATS and EBS rules. The proposed change is available on the Exchange's Web site at www.nyse.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 self-regulatory organization 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 those 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 Background Bats BYX Exchange, Inc., Bats BZX Exchange, Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc., BOX Options Exchange LLC, C2 Options Exchange, Incorporated, Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., FINRA, Investors' Exchange LLC, Miami International Securities Exchange, LLC, MIAX PEARL, LLC, NASDAQ BX, Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC,\3\ NASDAQ PHLX LLC, The NASDAQ Stock Market LLC, the New York Stock Exchange LLC, NYSE MKT LLC, NYSE Arca, Inc. and NYSE National, Inc.\4\ (collectively, the ``Participants'') filed with the Commission, pursuant to Section 11A of the Exchange Act \5\ and Rule 608 of Regulation NMS thereunder,\6\ the CAT [[Page 25363]] NMS Plan.\7\ The Participants filed the Plan to comply with Rule 613 of Regulation NMS under the Exchange Act.\8\ The Plan was published for comment in the Federal Register on May 17, 2016,\9\ and approved by the Commission, as modified, on November 15, 2016.\10\ On March 21, 2017, the Commission approved \11\ the Exchange's new NYSE Arca Rule 11.6800 Series and the NYSE Arca Equities Rule 6.6800 Series to implement provisions of the CAT NMS Plan that are applicable to the Exchange's OTP Holders, OTP Firms and ETP Holders, respectively.\12\ --------------------------------------------------------------------------- \3\ ISE Gemini, LLC, ISE Mercury, LLC and International Securities Exchange, LLC have been renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC, and Nasdaq ISE, LLC, respectively. See Securities Exchange Act Release No. 80248 (March 15, 2017), 82 FR 14547 (March 21, 2017) (SR-ISEGemini-2017-13); Securities Exchange Act Release No. 80326 (March 29, 2017), 82 FR 16460 (April 4, 2017) (SR-ISEMercury-2017- 05); and Securities Exchange Act Release No. 80325 (March 29, 2017), 82 FR 16445 (April 4, 2017) (SR-ISE-2017-25). \4\ National Stock Exchange, Inc. has been renamed NYSE National, Inc. See Securities Exchange Act Release No. 79902 (January 30, 2017), 82 FR 9258 (February 3, 2017) (SR-NSX-2016-16). \5\ 15 U.S.C. 78k-1. \6\ 17 CFR 242.608. \7\ See Letter from the Participants to Brent J. Fields, Secretary, Commission, dated September 30, 2014; and Letter from Participants to Brent J. Fields, Secretary, Commission, dated February 27, 2015. On December 24, 2015, the Participants submitted an amendment to the CAT NMS Plan. See Letter from Participants to Brent J. Fields, Secretary, Commission, dated December 23, 2015. \8\ 17 CFR 242.613. \9\ Securities Exchange Act Release No. 77724 (April 27, 2016), 81 FR 30614 (May 17, 2016) (File No. 4-698). \10\ Securities Exchange Act Release No. 79318 (Nov. 15, 2016), 81 FR 84696 (November 23, 2016) (File No. 4-698) (``Approval Order''). \11\ See Securities Exchange Act Release No. 80256 (March 15, 2017), 82 FR 14526 (March 21, 2017) (SR-NYSEArca-2017-03; SR- NYSEArca-2017-04) (Order Approving Proposed Rule Changes to Adopt Consolidated Audit Trail Compliance Rules). \12\ The NYSE Arca Rule 11.6800 Series and the NYSE Arca Equities Rule 6.6800 Series utilize the term ``Industry Member,'' which applies to the Exchange's OTP Holders, OTP Firms and ETP Holders, respectively. Pursuant to NYSE Arca Rule 1.1(q), an ``OTP Holder'' refers to a natural person, in good standing, who has been issued an OTP. An OTP Holder must be a registered broker or dealer pursuant to Section 15 of the Act. Rule 1.1(p) defines ``OTP'' as an Options Trading Permit issued by the Exchange for effecting approved securities transactions on the Exchange. NYSE Arca Equities Rule 1.1(n) defines the term ``ETP Holder'' as a sole proprietorship, partnership, corporation, limited liability company or other organization in good standing that has been issued an ETP. An ETP Holder must be a registered broker or dealer pursuant to Section 15 of the Act. NYSE Arca Equities Rule 1.1(m) defines ``ETP'' as an Equity Trading Permit issued by the Exchange for effecting approved securities transactions on the Exchange. --------------------------------------------------------------------------- The Plan is designed to create, implement and maintain a CAT that would capture customer and order event information for orders in NMS Securities and OTC Equity Securities, across all markets, from the time of order inception through routing, cancellation, modification, or execution in a single consolidated data source. Pursuant to Appendix C of the CAT NMS Plan, each Participant is required to conduct analyses of which of its existing trade and order data rules and systems require the collection of information that is duplicative of information collected for the CAT.\13\ In addition, among other things, Section C.9 of Appendix C to the Plan, as modified by the Commission, requires each Participant to ``file with the SEC the relevant rule change filing to eliminate or modify its duplicative rules within six (6) months of the SEC's approval of the CAT NMS Plan.'' \14\ The Plan notes that ``the elimination of such rules and the retirement of such systems [will] be effective at such time as CAT Data meets minimum standards of accuracy and reliability.'' \15\ --------------------------------------------------------------------------- \13\ Appendix C of CAT NMS Plan, Approval Order at 85010. \14\ Id. \15\ Id. --------------------------------------------------------------------------- After conducting its analysis of its rules in accordance with the CAT NMS Plan, the Exchange has determined that the information collected pursuant to the OATS and EBS rules is intended to be collected by CAT. Therefore, the Exchange believes that the NYSE Arca Equities Rule 7400 Series will no longer be necessary once FINRA publishes notice announcing the date it will retire its OATS rules. Similarly, the Exchange believes that it will be necessary to clarify how the Exchange will request data under NYSE Arca Rule 10.2 and NYSE Arca Equities Rule 10.2 after members are reporting to the CAT. Accordingly, the Exchange proposes to amend NYSE Arca Rule 10.2 and NYSE Arca Equities Rule 10.2 to add a new subsection (E) to Commentary .01 clarifying how the Exchange will request data under these rules after member organizations are reporting to the CAT once FINRA publishes notice announcing the date it will retire its OATS rules. Discussed below is a description of the duplicative rule requirements as well as the timeline for eliminating the duplicative rules. If the Commission approves the proposed rule change, the rule text will be effective; however, the amendments will not be implemented until FINRA publishes a notice announcing the date that it will retire its OATS rules, at which time the Exchange will publish a regulatory notice announcing implementation date of the proposed rule change. As discussed below, FINRA will publish its notice once the CAT achieves certain specific accuracy and reliability standards and FINRA has determined that its usage of the CAT Data has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow FINRA to continue to meet its surveillance obligations,\16\ and confirmed that the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. --------------------------------------------------------------------------- \16\ As noted in the Participants' September 23, 2016 response to comment letters on the Plan, the Participants ``worked to keep [the CAT] gap analyses up-to-date by including newly-added data fields in these duplicative systems, such as the new OATS data fields related to the tick size pilot and ATS order book changes, in the gap analyses.'' Letter from Participants to Brent J. Fields, Secretary, Commission, dated September 23, 2016, at 21. The Participants noted that they ``will work with the Plan Processor and the industry to develop detailed Technical Specifications to ensure that by the time Industry Members are required to report to the CAT, the CAT will include all data elements necessary to facilitate the rapid retirement of duplicative systems.'' Id. --------------------------------------------------------------------------- Duplicative OATS Requirements The NYSE Arca Equities Rule 7400 Series consists of NYSE Arca Equities Rules 7410 through 7470 and sets forth the recording and reporting requirements of the OATS Rules. The OATS Rules require all Exchange member organizations and associated persons to record in electronic form and report to FINRA, on a daily basis, certain information with respect to orders originated, received, transmitted, modified, canceled, or executed by members in all NMS stocks, as that term is defined in Rule 600(b)(47) of Regulation NMS,\17\ traded on the Exchange, including NYSE-listed securities. This information is used by FINRA staff to conduct surveillance and investigations of member firms for violations of FINRA rules and federal securities laws. The Exchange has determined that the requirements of the NYSE Arca Equities Rule 7400 Series are duplicative of information available in the CAT and thus will no longer be necessary once the CAT is operational. --------------------------------------------------------------------------- \17\ 17 CFR 242.600(B)(47). --------------------------------------------------------------------------- The Participants have provided OATS technical specifications to the Plan Processor for the CAT for use in developing the Technical Specifications for the CAT, and the Participants are working with the Plan Processor to include the necessary OATS data elements in the CAT Technical Specifications. Accordingly, the Exchange proposes to eliminate its OATS Rules in accordance with the proposed timeline discussed below. Timeline for Elimination of Duplicative Rules The CAT NMS Plan states that the elimination of rules that are duplicative of the requirements of the CAT and the retirement of the related systems should be effective at such time as CAT Data meets minimum standards of accuracy and reliability.\18\ As discussed in more detail in its rule filing, FINRA believes that OATS may be retired at a date after all Industry Members are reporting to the CAT when the proposed error rate thresholds have been met, and FINRA has determined that its usage of the CAT [[Page 25364]] Data has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow FINRA to continue to meet its surveillance obligations, and confirmed that the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan.\19\ --------------------------------------------------------------------------- \18\ Appendix C of CAT NMS Plan, Approval Order at 85010. \19\ See SR-FINRA-2017-013. --------------------------------------------------------------------------- The CAT NMS Plan requires that a rule filing to eliminate a duplicative rule address whether ``the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.'' \20\ FINRA believes that there is no effective way to retire OATS until all current OATS reporters are reporting to the CAT. As discussed in FINRA's filing, FINRA believes that having data from those Small Industry Members currently reporting to OATS available two years after the Effective Date would substantially facilitate a more expeditious retirement of OATS and therefore supports an amendment to the Plan that would require current OATS Reporters that are ``Small Industry Members'' to report two years after the Effective Date (instead of three).\21\ --------------------------------------------------------------------------- \20\ Id. [sic] \21\ See SR-FINRA-2017-013. FINRA has represented that it intends to work with the other Participants to submit a proposed amendment to the Plan to require Small Industry Members that are OATS Reporters to report two years after the Effective Date. --------------------------------------------------------------------------- The CAT NMS Plan also requires that this rule filing address ``whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.'' \22\ --------------------------------------------------------------------------- \22\ Id. [sic] --------------------------------------------------------------------------- FINRA believes that a single cut-over from OATS to CAT is highly preferable to a firm-by-firm approach and is not proposing to exempt members from the OATS requirements on a firm-by-firm basis. FINRA believes that that the overall accuracy and reliability thresholds for the CAT described above [sic] would need to be met under any conditions before firms could stop reporting to OATS. Moreover, as discussed above [sic], FINRA supports amending the Plan to accelerate the reporting requirements for Small Industry Members that are OATS Reporters to report on the same timeframe as all other OATS Reporters. If such an amendment were approved by the Commission, there would be no need to exempt members from OATS requirements on a firm-by-firm basis.\23\ --------------------------------------------------------------------------- \23\ Id. --------------------------------------------------------------------------- The CAT NMS Plan also requires that a rule filing to eliminate a duplicative rule to provide ``specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.'' \24\ As discussed in Section A.3.(b) of Appendix C to the CAT NMS Plan, the Participants established an initial Error Rate, as defined in the Plan, of 5% on initially submitted data (i.e., data as submitted by a CAT Reporter before any required corrections are performed). The Participants noted in the Plan that their expectation was that ``error rates after reprocessing of error corrections will be de minimis.'' \25\ The Participants based this Error Rate on their consideration of ``current and historical OATS Error Rates, the magnitude of new reporting requirements on the CAT Reporters and the fact that many CAT Reporters may have never been obligated to report data to an audit trail.'' \26\ --------------------------------------------------------------------------- \24\ Id. [sic] \25\ See CAT NMS Plan, Appendix C, Section A.3(b), at n.102. \26\ Id. --------------------------------------------------------------------------- As set forth in its filing, FINRA believes that, when assessing the accuracy and reliability of the data for the purposes of retiring OATS, the error thresholds should be measured in more granular ways and should also include minimum error rates of post-correction data, which represents the data most likely to be used by FINRA to conduct surveillance. To ensure the CAT's accuracy and reliability, FINRA is thus proposing that, before OATS could be retired, the CAT would generally need to achieve a sustained error rate for Industry Member reporting in each of the categories below for a period of at least 180 days of 5% or lower, measured on a pre-correction or as-submitted basis and 2% or lower on a post-correction basis (measured at T+5).\27\ FINRA is proposing to measure the 5% pre-correction and 2% post-correction thresholds by averaging the error rate across the period, not require a 5% pre-correction and 2% post-correction maximum each day for 180 consecutive days. FINRA believes that measuring each of the thresholds over the course of 180 days will ensure that the CAT consistently meets minimum accuracy and reliability thresholds for Industry Member reporting while also ensuring that single-day measurements do not unduly affect the overall measurements.\28\ Consequently, FINRA is proposing to use error rates in four categories, measured separately for options and for equities, to assess whether the threshold pre- and post-correction error rates are being met.\29\ --------------------------------------------------------------------------- \27\ The Plan requires that the Plan Processor must ensure that regulators have access to corrected and linked order and Customer data by 8:00 a.m. Eastern Time on T+5. See CAT NMS Plan, Appendix C, Section A.2(a). \28\ See SR-FINRA-2017-013. \29\ The categories are (1) rejection rates and data validations; (2) intra-firm linkages; (3) order linkage rates; and (4) Exchange and TRF/ORF match rates. --------------------------------------------------------------------------- In addition to these minimum error rates before OATS can be retired FINRA believes that during the minimum 180-day period during which the thresholds are calculated, FINRA's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow the Exchange to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. The Exchange believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.\30\ --------------------------------------------------------------------------- \30\ See SR-FINRA-2017-013. --------------------------------------------------------------------------- NYSE Arca Rule 10.2 and NYSE Arca Equities Rule 10.2 In addition to the OATS rules, NYSE Arca Rule 10.2 and NYSE Arca Equities Rule 10.2 will also be affected by the implementation of the CAT. NYSE Arca Rule 10.2 and NYSE Arca Equities Rule 10.2 provide for the automated submission of equities trading data and options trading data, respectively, upon request (commonly referred to as ``blue sheet'' data) using the EBS system. Once broker-dealer reporting to the CAT has begun, the CAT will contain much of the data the Participants would otherwise have requested via the EBS system for purposes of NMS Securities and OTC Equity Securities. Consequently, the Exchange will not need to use the EBS system or request information pursuant to NYSE Arca Rule 10.2 and NYSE Arca Equities Rule 10.2 for NMS Securities or OTC Equity Securities for time periods after CAT reporting has begun if the appropriate accuracy and reliability thresholds are achieved, including an acceptable accuracy rate for customer and account [[Page 25365]] information. However, NYSE Arca Rule 10.2 and NYSE Arca Equities Rule 10.2 cannot be completely eliminated upon the CAT achieving the appropriate thresholds because Exchange staff may still need to request for trading activity occurring before an OTP Holder, OTP Firm and ETP Holder was reporting to the CAT.\31\ In addition, NYSE Arca Rule 10.2 and NYSE Arca Equities Rule 10.2 applies to information regarding transactions involving securities that will not be reportable to the CAT, such as fixed-income securities; thus, the rule must remain in effect with respect to those transactions until those transactions are captured in the CAT. --------------------------------------------------------------------------- \31\ Firms are required to maintain the trade information for pre-CAT transactions in equities and options pursuant to applicable rules, such as books and records retention requirements, for the relevant time period, which is generally three or six years depending upon the record. See 17 CFR 240.17a-3(a), 240.17a-4. --------------------------------------------------------------------------- The proposed rule change proposes to add a new subsection (E) to Commentary .01 of each Rule to clarify how the Exchange will request data under these rules after member organizations are reporting to the CAT. Specifically, the proposed new subsection (E) to Commentary .01 of NYSE Arca Rule 10.2 and NYSE Arca Equities Rule 10.2 will note that the Exchange will request information under each Rule only if the information is not available in the CAT because, for example, the transactions in question occurred before the firm was reporting information to the CAT or involved securities that are not reportable to the CAT. In essence, under the new Supplementary Material, the Exchange will make requests under these rules if and only if the information is not otherwise available through the CAT. However, as noted above, FINRA believes that the CAT must meet certain minimum accuracy and reliability standards before FINRA could rely on the CAT Data to replace existing regulatory tools, including EBS. Consequently, the proposed Supplementary Material will be implemented only after FINRA publishes its notice after the CAT achieves the thresholds set forth above with respect to OATS and an accuracy rate for customer and account information of 95% for pre- corrected data and 98% for post-correction data. In addition, as discussed above, FINRA can rely on CAT Data to replace EBS requests only after FINRA has determined that its usage of the CAT Data over a 180-day period has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow FINRA to continue to meet its surveillance obligations, and confirmed that the CAT Plan Processor is fulfilling its obligations under the CAT NMS Plan. As noted, if the Commission approves the proposed rule change, the Exchange will announce the implementation date of the proposed rule change in a regulatory notice that will be published once FINRA publishes a notice announcing the date that it will retire its EBS rules, which FINRA will do once it concludes the thresholds for accuracy and reliability described above have been met and that the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\32\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\33\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and 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. --------------------------------------------------------------------------- \32\ 15 U.S.C. 78f(b). \33\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the Exchange believes that the proposed rule change implements, supports, interprets or clarifies the provisions of the Plan, and is designed to assist the Exchange and its Members in meeting regulatory obligations pursuant to, and milestones established by, the Plan. In approving the Plan, the SEC noted that it ``is necessary and appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets, to remove impediments to, and perfect the mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.'' \34\ To the extent that this proposal implements, interprets or clarifies the Plan and applies specific requirements to Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act. --------------------------------------------------------------------------- \34\ Approval Order, 81 FR at 84697. --------------------------------------------------------------------------- The Exchange also believes that adding a preamble to each current Rule impacted by the Plan would remove impediments to and perfect the mechanism of a free and open market and a national market system by adding clarity and transparency to the Exchange's rules, reducing potential confusion, and making the Exchange's rules easier to navigate and understand. 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 change is not designed to address any competitive issue but rather implement provisions of the CAT NMS Plan, and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be 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 Number SR-NYSEArca-2017-59 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. [[Page 25366]] All submissions should refer to File Number SR-NYSEArca-2017-59. 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 such 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-NYSEArca-2017-59, and should be submitted on or before June 22, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\35\ --------------------------------------------------------------------------- \35\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-11367 Filed 5-31-17; 8:45 am] BILLING CODE 8011-01-P
![25362 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices
III. Date of Effectiveness of the inspection and copying at the principal (‘‘FINRA’’) publishes a notice
Proposed Rule Change and Timing for office of the Exchange. All comments announcing the date that it will retire its
Commission Action received will be posted without change; OATS and EBS rules. The proposed
Within 45 days of the date of the Commission does not edit personal change is available on the Exchange’s
publication of this notice in the Federal identifying information from Web site at www.nyse.com, at the
Register or within such longer period (i) submissions. You should submit only principal office of the Exchange, and at
as the Commission may designate up to information that you wish to make the Commission’s Public Reference
available publicly. All submissions Room.
90 days of such date if it finds such
should refer to File Number SR–
longer period to be appropriate and II. Self-Regulatory Organization’s
BatsEDGX–2017–23 and should be
publishes its reasons for so finding or Statement of the Purpose of, and
submitted on or before June 22, 2017.
(ii) as to which the Exchange consents, Statutory Basis for, the Proposed Rule
the Commission will: (a) by order For the Commission, by the Division of Change
approve or disapprove such proposed Trading and Markets, pursuant to delegated
authority.29 In its filing with the Commission, the
rule change, or (b) institute proceedings
to determine whether the proposed rule Eduardo A. Aleman, self-regulatory organization included
change should be disapproved. Assistant Secretary. statements concerning the purpose of,
[FR Doc. 2017–11371 Filed 5–31–17; 8:45 am] and basis for, the proposed rule change
IV. Solicitation of Comments BILLING CODE 8011–01–P and discussed any comments it received
Interested persons are invited to on the proposed rule change. The text
submit written data, views, and of those statements may be examined at
arguments concerning the foregoing, SECURITIES AND EXCHANGE the places specified in Item IV below.
including whether the proposal is COMMISSION The Exchange has prepared summaries,
consistent with the Act. Comments may set forth in sections A, B, and C below,
[Release No. 34–80791; File No. SR–
be submitted by any of the following NYSEArca–2017–59] of the most significant parts of such
methods: statements.
Self-Regulatory Organizations; NYSE A. Self-Regulatory Organization’s
Electronic Comments Arca, Inc.; Notice of Filing of Proposed Statement of the Purpose of, and the
• Use the Commission’s Internet Rule Change To Eliminate Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ Requirements That Will Be Duplicative Change
rules/sro.shtml); or of CAT
• Send an email to rule- 1. Purpose
comments@sec.gov. Please include File May 26, 2017.
Pursuant to Section 19(b)(1) of the Background
Number SR–BatsEDGX–2017–23 on the
subject line. Securities Exchange Act of 1934 Bats BYX Exchange, Inc., Bats BZX
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Exchange, Inc., Bats EDGA Exchange,
Paper Comments notice is hereby given that on May 22, Inc., Bats EDGX Exchange, Inc., BOX
• Send paper comments in triplicate 2017, NYSE Arca, Inc. (‘‘NYSE Arca’’ or Options Exchange LLC, C2 Options
to Secretary, Securities and Exchange the ‘‘Exchange’’) filed with the Exchange, Incorporated, Chicago Board
Commission, 100 F Street NE., Securities and Exchange Commission Options Exchange, Incorporated,
Washington, DC 20549–1090. (‘‘SEC’’ or ‘‘Commission’’) the proposed Chicago Stock Exchange, Inc., FINRA,
rule change as described in Items I, II, Investors’ Exchange LLC, Miami
All submissions should refer to File
and III below, which Items have been International Securities Exchange, LLC,
Number SR–BatsEDGX–2017–23. This
prepared by the Exchange. The MIAX PEARL, LLC, NASDAQ BX, Inc.,
file number should be included on the
Commission is publishing this notice to Nasdaq GEMX, LLC, Nasdaq ISE, LLC,
subject line if email is used. To help the
solicit comments on the proposed rule Nasdaq MRX, LLC,3 NASDAQ PHLX
Commission process and review your
change from interested persons. LLC, The NASDAQ Stock Market LLC,
comments more efficiently, please use
only one method. The Commission will I. Self-Regulatory Organization’s the New York Stock Exchange LLC,
post all comments on the Commission’s Statement of the Terms of Substance of NYSE MKT LLC, NYSE Arca, Inc. and
Internet Web site (http://www.sec.gov/ the Proposed Rule Change NYSE National, Inc.4 (collectively, the
rules/sro.shtml). Copies of the The Exchange proposes to to delete ‘‘Participants’’) filed with the
submission, all subsequent the Order Audit Trail System (‘‘OATS’’) Commission, pursuant to Section 11A of
amendments, all written statements rules in the NYSE Arca Equities Rule the Exchange Act 5 and Rule 608 of
with respect to the proposed rule 7400 Series (Order Audit Trail System) Regulation NMS thereunder,6 the CAT
change that are filed with the and amend NYSE Arca Rule 10.2
Commission, and all written (Investigations and Regulatory
3 ISE Gemini, LLC, ISE Mercury, LLC and
communications relating to the International Securities Exchange, LLC have been
Cooperation) and NYSE Arca Equities renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC,
proposed rule change between the Rule 10.2 (Investigations and Regulatory and Nasdaq ISE, LLC, respectively. See Securities
Commission and any person, other than Cooperation) governing submission of Exchange Act Release No. 80248 (March 15, 2017),
those that may be withheld from the Electronic Blue Sheet trading data 82 FR 14547 (March 21, 2017) (SR–ISEGemini–
public in accordance with the 2017–13); Securities Exchange Act Release No.
(‘‘EBS’’) as these Rules provide for the 80326 (March 29, 2017), 82 FR 16460 (April 4,
provisions of 5 U.S.C. 552, will be
mstockstill on DSK30JT082PROD with NOTICES
collection of information that is 2017) (SR–ISEMercury–2017–05); and Securities
available for Web site viewing and duplicative of the data collection Exchange Act Release No. 80325 (March 29, 2017),
printing in the Commission’s Public requirements of the CAT once the 82 FR 16445 (April 4, 2017) (SR–ISE–2017–25).
4 National Stock Exchange, Inc. has been renamed
Reference Room, 100 F Street NE., Financial Industry Regulatory Authority NYSE National, Inc. See Securities Exchange Act
Washington, DC 20549, on official Release No. 79902 (January 30, 2017), 82 FR 9258
business days between the hours of 29 17 CFR 200.30–3(a)(12). (February 3, 2017) (SR–NSX–2016–16).
10:00 a.m. and 3:00 p.m. Copies of such 1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78k–1.
filing will also be available for 2 17 CFR 240.19b–4. 6 17 CFR 242.608.
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![Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices 25363
NMS Plan.7 The Participants filed the modified by the Commission, requires confirmed that the Plan Processor is
Plan to comply with Rule 613 of each Participant to ‘‘file with the SEC sufficiently meeting all of its obligations
Regulation NMS under the Exchange the relevant rule change filing to under the CAT NMS Plan.
Act.8 The Plan was published for eliminate or modify its duplicative rules
Duplicative OATS Requirements
comment in the Federal Register on within six (6) months of the SEC’s
May 17, 2016,9 and approved by the approval of the CAT NMS Plan.’’ 14 The The NYSE Arca Equities Rule 7400
Commission, as modified, on November Plan notes that ‘‘the elimination of such Series consists of NYSE Arca Equities
15, 2016.10 On March 21, 2017, the rules and the retirement of such systems Rules 7410 through 7470 and sets forth
Commission approved 11 the Exchange’s [will] be effective at such time as CAT the recording and reporting
new NYSE Arca Rule 11.6800 Series Data meets minimum standards of requirements of the OATS Rules. The
and the NYSE Arca Equities Rule 6.6800 accuracy and reliability.’’ 15 OATS Rules require all Exchange
Series to implement provisions of the After conducting its analysis of its member organizations and associated
CAT NMS Plan that are applicable to rules in accordance with the CAT NMS persons to record in electronic form and
the Exchange’s OTP Holders, OTP Firms Plan, the Exchange has determined that report to FINRA, on a daily basis,
and ETP Holders, respectively.12 the information collected pursuant to certain information with respect to
The Plan is designed to create, the OATS and EBS rules is intended to orders originated, received, transmitted,
implement and maintain a CAT that be collected by CAT. Therefore, the modified, canceled, or executed by
would capture customer and order event Exchange believes that the NYSE Arca members in all NMS stocks, as that term
information for orders in NMS Equities Rule 7400 Series will no longer is defined in Rule 600(b)(47) of
Securities and OTC Equity Securities, be necessary once FINRA publishes Regulation NMS,17 traded on the
across all markets, from the time of notice announcing the date it will retire Exchange, including NYSE-listed
order inception through routing, its OATS rules. Similarly, the Exchange securities. This information is used by
cancellation, modification, or execution believes that it will be necessary to FINRA staff to conduct surveillance and
in a single consolidated data source. clarify how the Exchange will request investigations of member firms for
Pursuant to Appendix C of the CAT data under NYSE Arca Rule 10.2 and violations of FINRA rules and federal
NMS Plan, each Participant is required NYSE Arca Equities Rule 10.2 after securities laws. The Exchange has
to conduct analyses of which of its members are reporting to the CAT. determined that the requirements of the
existing trade and order data rules and Accordingly, the Exchange proposes to NYSE Arca Equities Rule 7400 Series
systems require the collection of amend NYSE Arca Rule 10.2 and NYSE are duplicative of information available
information that is duplicative of Arca Equities Rule 10.2 to add a new in the CAT and thus will no longer be
information collected for the CAT.13 In subsection (E) to Commentary .01 necessary once the CAT is operational.
addition, among other things, Section The Participants have provided OATS
clarifying how the Exchange will
C.9 of Appendix C to the Plan, as technical specifications to the Plan
request data under these rules after
Processor for the CAT for use in
member organizations are reporting to
7 See Letter from the Participants to Brent J. developing the Technical Specifications
the CAT once FINRA publishes notice
Fields, Secretary, Commission, dated September 30, for the CAT, and the Participants are
2014; and Letter from Participants to Brent J. Fields, announcing the date it will retire its
working with the Plan Processor to
Secretary, Commission, dated February 27, 2015. OATS rules. Discussed below is a include the necessary OATS data
On December 24, 2015, the Participants submitted description of the duplicative rule
an amendment to the CAT NMS Plan. See Letter elements in the CAT Technical
from Participants to Brent J. Fields, Secretary, requirements as well as the timeline for Specifications. Accordingly, the
Commission, dated December 23, 2015. eliminating the duplicative rules. Exchange proposes to eliminate its
8 17 CFR 242.613. If the Commission approves the
OATS Rules in accordance with the
9 Securities Exchange Act Release No. 77724
proposed rule change, the rule text will proposed timeline discussed below.
(April 27, 2016), 81 FR 30614 (May 17, 2016) (File be effective; however, the amendments
No. 4–698).
10 Securities Exchange Act Release No. 79318 will not be implemented until FINRA Timeline for Elimination of Duplicative
(Nov. 15, 2016), 81 FR 84696 (November 23, 2016) publishes a notice announcing the date Rules
(File No. 4–698) (‘‘Approval Order’’). that it will retire its OATS rules, at The CAT NMS Plan states that the
11 See Securities Exchange Act Release No. 80256
which time the Exchange will publish a elimination of rules that are duplicative
(March 15, 2017), 82 FR 14526 (March 21, 2017)
(SR–NYSEArca–2017–03; SR–NYSEArca–2017–04) regulatory notice announcing of the requirements of the CAT and the
(Order Approving Proposed Rule Changes to Adopt implementation date of the proposed retirement of the related systems should
Consolidated Audit Trail Compliance Rules). rule change. As discussed below, FINRA be effective at such time as CAT Data
12 The NYSE Arca Rule 11.6800 Series and the
will publish its notice once the CAT meets minimum standards of accuracy
NYSE Arca Equities Rule 6.6800 Series utilize the
term ‘‘Industry Member,’’ which applies to the
achieves certain specific accuracy and and reliability.18 As discussed in more
Exchange’s OTP Holders, OTP Firms and ETP reliability standards and FINRA has detail in its rule filing, FINRA believes
Holders, respectively. Pursuant to NYSE Arca Rule determined that its usage of the CAT that OATS may be retired at a date after
1.1(q), an ‘‘OTP Holder’’ refers to a natural person, Data has not revealed material issues
in good standing, who has been issued an OTP. An
all Industry Members are reporting to
OTP Holder must be a registered broker or dealer that have not been corrected, confirmed the CAT when the proposed error rate
pursuant to Section 15 of the Act. Rule 1.1(p) that the CAT includes all data necessary thresholds have been met, and FINRA
defines ‘‘OTP’’ as an Options Trading Permit issued to allow FINRA to continue to meet its has determined that its usage of the CAT
by the Exchange for effecting approved securities surveillance obligations,16 and
transactions on the Exchange. NYSE Arca Equities
Rule 1.1(n) defines the term ‘‘ETP Holder’’ as a sole Commission, dated September 23, 2016, at 21. The
14 Id. Participants noted that they ‘‘will work with the
proprietorship, partnership, corporation, limited
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liability company or other organization in good 15 Id. Plan Processor and the industry to develop detailed
standing that has been issued an ETP. An ETP 16 As noted in the Participants’ September 23, Technical Specifications to ensure that by the time
Holder must be a registered broker or dealer 2016 response to comment letters on the Plan, the Industry Members are required to report to the CAT,
pursuant to Section 15 of the Act. NYSE Arca Participants ‘‘worked to keep [the CAT] gap the CAT will include all data elements necessary
Equities Rule 1.1(m) defines ‘‘ETP’’ as an Equity analyses up-to-date by including newly-added data to facilitate the rapid retirement of duplicative
Trading Permit issued by the Exchange for effecting fields in these duplicative systems, such as the new systems.’’ Id.
approved securities transactions on the Exchange. 17 17 CFR 242.600(B)(47).
OATS data fields related to the tick size pilot and
13 Appendix C of CAT NMS Plan, Approval Order ATS order book changes, in the gap analyses.’’ 18 Appendix C of CAT NMS Plan, Approval Order
at 85010. Letter from Participants to Brent J. Fields, Secretary, at 85010.
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![25364 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices
Data has not revealed material issues by the Commission, there would be no of 180 days will ensure that the CAT
that have not been corrected, confirmed need to exempt members from OATS consistently meets minimum accuracy
that the CAT includes all data necessary requirements on a firm-by-firm basis.23 and reliability thresholds for Industry
to allow FINRA to continue to meet its The CAT NMS Plan also requires that Member reporting while also ensuring
surveillance obligations, and confirmed a rule filing to eliminate a duplicative that single-day measurements do not
that the Plan Processor is sufficiently rule to provide ‘‘specific accuracy and unduly affect the overall
meeting all of its obligations under the reliability standards that will determine measurements.28 Consequently, FINRA
CAT NMS Plan.19 when duplicative systems will be is proposing to use error rates in four
The CAT NMS Plan requires that a retired, including, but not limited to, categories, measured separately for
rule filing to eliminate a duplicative whether the attainment of a certain options and for equities, to assess
rule address whether ‘‘the availability of Error Rate should determine when a whether the threshold pre- and post-
certain data from Small Industry system duplicative of the CAT can be correction error rates are being met.29
Members two years after the Effective retired.’’ 24 As discussed in Section In addition to these minimum error
Date would facilitate a more expeditious A.3.(b) of Appendix C to the CAT NMS rates before OATS can be retired FINRA
retirement of duplicative systems.’’ 20 Plan, the Participants established an believes that during the minimum 180-
FINRA believes that there is no effective initial Error Rate, as defined in the Plan, day period during which the thresholds
way to retire OATS until all current of 5% on initially submitted data (i.e., are calculated, FINRA’s use of the data
OATS reporters are reporting to the data as submitted by a CAT Reporter in the CAT must confirm that (i) usage
CAT. As discussed in FINRA’s filing, before any required corrections are over that time period has not revealed
FINRA believes that having data from performed). The Participants noted in material issues that have not been
those Small Industry Members currently the Plan that their expectation was that corrected, (ii) the CAT includes all data
reporting to OATS available two years ‘‘error rates after reprocessing of error necessary to allow the Exchange to
after the Effective Date would corrections will be de minimis.’’ 25 The continue to meet its surveillance
substantially facilitate a more Participants based this Error Rate on obligations, and (iii) the Plan Processor
expeditious retirement of OATS and their consideration of ‘‘current and is sufficiently meeting all of its
therefore supports an amendment to the historical OATS Error Rates, the obligations under the CAT NMS Plan.
Plan that would require current OATS magnitude of new reporting The Exchange believes this time period
Reporters that are ‘‘Small Industry requirements on the CAT Reporters and to use the CAT Data is necessary to
Members’’ to report two years after the the fact that many CAT Reporters may reveal any errors that may manifest
Effective Date (instead of three).21 have never been obligated to report data themselves only after surveillance
The CAT NMS Plan also requires that to an audit trail.’’ 26 patterns and other queries have been
this rule filing address ‘‘whether As set forth in its filing, FINRA run and to confirm that the Plan
individual Industry Members can be believes that, when assessing the Processor is meeting its obligations and
exempted from reporting to duplicative accuracy and reliability of the data for performing its functions adequately.30
systems once their CAT reporting meets the purposes of retiring OATS, the error
specified accuracy and reliability thresholds should be measured in more NYSE Arca Rule 10.2 and NYSE Arca
standards, including, but not limited to, granular ways and should also include Equities Rule 10.2
ways in which establishing cross-system minimum error rates of post-correction In addition to the OATS rules, NYSE
regulatory functionality or integrating data, which represents the data most Arca Rule 10.2 and NYSE Arca Equities
data from existing systems and the CAT likely to be used by FINRA to conduct Rule 10.2 will also be affected by the
would facilitate such Individual surveillance. To ensure the CAT’s implementation of the CAT. NYSE Arca
Industry Member exemptions.’’ 22 accuracy and reliability, FINRA is thus Rule 10.2 and NYSE Arca Equities Rule
FINRA believes that a single cut-over proposing that, before OATS could be 10.2 provide for the automated
from OATS to CAT is highly preferable retired, the CAT would generally need submission of equities trading data and
to a firm-by-firm approach and is not to achieve a sustained error rate for options trading data, respectively, upon
proposing to exempt members from the Industry Member reporting in each of request (commonly referred to as ‘‘blue
OATS requirements on a firm-by-firm the categories below for a period of at sheet’’ data) using the EBS system.
basis. FINRA believes that that the least 180 days of 5% or lower, measured Once broker-dealer reporting to the
overall accuracy and reliability on a pre-correction or as-submitted basis CAT has begun, the CAT will contain
thresholds for the CAT described above and 2% or lower on a post-correction much of the data the Participants would
[sic] would need to be met under any basis (measured at T+5).27 FINRA is otherwise have requested via the EBS
conditions before firms could stop proposing to measure the 5% pre- system for purposes of NMS Securities
reporting to OATS. Moreover, as correction and 2% post-correction and OTC Equity Securities.
discussed above [sic], FINRA supports thresholds by averaging the error rate Consequently, the Exchange will not
amending the Plan to accelerate the across the period, not require a 5% pre- need to use the EBS system or request
reporting requirements for Small correction and 2% post-correction information pursuant to NYSE Arca
Industry Members that are OATS maximum each day for 180 consecutive Rule 10.2 and NYSE Arca Equities Rule
Reporters to report on the same days. FINRA believes that measuring 10.2 for NMS Securities or OTC Equity
timeframe as all other OATS Reporters. each of the thresholds over the course Securities for time periods after CAT
If such an amendment were approved reporting has begun if the appropriate
23 Id.
accuracy and reliability thresholds are
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19 See SR–FINRA–2017–013. 24 Id. [sic]
20 Id. [sic] 25 See
achieved, including an acceptable
CAT NMS Plan, Appendix C, Section
21 See SR–FINRA–2017–013. FINRA has A.3(b), at n.102. accuracy rate for customer and account
represented that it intends to work with the other 26 Id.
28 See SR–FINRA–2017–013.
Participants to submit a proposed amendment to 27 The Plan requires that the Plan Processor must
the Plan to require Small Industry Members that are ensure that regulators have access to corrected and 29 The categories are (1) rejection rates and data
OATS Reporters to report two years after the linked order and Customer data by 8:00 a.m. validations; (2) intra-firm linkages; (3) order linkage
Effective Date. Eastern Time on T+5. See CAT NMS Plan, rates; and (4) Exchange and TRF/ORF match rates.
22 Id. [sic] Appendix C, Section A.2(a). 30 See SR–FINRA–2017–013.
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![25366 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices
All submissions should refer to File Exchange, LLC (‘‘MIAX Options’’ or A. Self-Regulatory Organization’s
Number SR–NYSEArca–2017–59. This ‘‘Exchange’’) filed with the Securities Statement of the Purpose of, and the
file number should be included on the and Exchange Commission (‘‘SEC’’ or Statutory Basis for, the Proposed Rule
subject line if email is used. To help the ‘‘Commission’’) the proposed rule Change
Commission process and review your change as described in Items I, II, and 1. Purpose
comments more efficiently, please use III below, which Items have been
only one method. The Commission will Bats BYX Exchange, Inc., Bats BZX
prepared by the Exchange. The
post all comments on the Commission’s Exchange, Inc., Bats EDGA Exchange,
Commission is publishing this notice to
Internet Web site (http://www.sec.gov/ Inc., Bats EDGX Exchange, Inc., BOX
solicit comments on the proposed rule Options Exchange LLC, C2 Options
rules/sro.shtml). Copies of the
change from interested persons. Exchange, Incorporated, Chicago Board
submission, all subsequent
amendments, all written statements I. Self-Regulatory Organization’s Options Exchange, Incorporated,
with respect to the proposed rule Statement of the Terms of Substance of Chicago Stock Exchange, Inc., Financial
change that are filed with the the Proposed Rule Change Industry Regulatory Authority, Inc.
Commission, and all written (‘‘FINRA’’), Investors’ Exchange LLC,
communications relating to the The Exchange is filing a proposal to Miami International Securities
proposed rule change between the amend MIAX Options Rule 607, Exchange, LLC, MIAX PEARL, LLC,
Commission and any person, other than Securities Accounts and Orders of NASDAQ BX, Inc., Nasdaq GEMX, LLC,
those that may be withheld from the Market Makers (‘‘Rule 607’’ or the Nasdaq ISE, LLC, Nasdaq MRX, LLC,4
public in accordance with the ‘‘Position Reporting Rule’’) by adding NASDAQ PHLX LLC, The NASDAQ
provisions of 5 U.S.C. 552, will be new Interpretation and Policy .01 to Stock Market LLC, New York Stock
available for Web site viewing and Rule 607, and MIAX Options Rule 804, Exchange LLC, NYSE MKT LLC, NYSE
printing in the Commission’s Public Automated Submission of Trade Data Arca, Inc. and NYSE National, Inc.5
Reference Room, 100 F Street NE., (collectively, the ‘‘Participants’’) filed
(‘‘Rule 804’’ or the ‘‘EBS Rule’’ and
Washington, DC 20549 on official with the Commission, pursuant to
together with the Position Reporting
business days between the hours of Section 11A of the Exchange Act 6 and
Rule, the ‘‘CAT Duplicative Rules’’) by Rule 608 of Regulation NMS
10:00 a.m. and 3:00 p.m. Copies of such adding new Interpretation and Policy
filing also will be available for thereunder,7 the CAT NMS Plan.8 The
.01 to Rule 804, as the CAT Duplicative Participants filed the Plan to comply
inspection and copying at the principal
office of the Exchange. All comments Rules provide for the collection of with Rule 613 of Regulation NMS under
received will be posted without change; information that is duplicative of the the Exchange Act. The Plan was
the Commission does not edit personal data collection requirements of the published for comment in the Federal
identifying information from consolidated audit trail (‘‘CAT’’) Register on May 17, 2016,9 and
submissions. You should submit only adopted pursuant to the National approved by the Commission, as
information that you wish to make Market System Plan Governing the modified, on November 15, 2016.10 The
available publicly. All submissions Consolidated Audit Trail (the ‘‘CAT Plan is designed to create, implement
should refer to File Number SR– NMS Plan’’ or ‘‘Plan’’).3 and maintain a CAT that would capture
NYSEArca–2017–59, and should be The text of the proposed rule change customer and order event information
submitted on or before June 22, 2017. for orders in NMS Securities and OTC
is available on the Exchange’s Web site
Equity Securities, across all markets,
For the Commission, by the Division of at http://www.miaxoptions.com/rule-
Trading and Markets, pursuant to delegated from the time of order inception through
filings, at MIAX’s principal office, and routing, cancellation, modification, or
authority.35 at the Commission’s Public Reference
Eduardo A. Aleman, execution in a single consolidated data
Room. source. Pursuant to Appendix C of the
Assistant Secretary.
II. Self-Regulatory Organization’s CAT NMS Plan, each Participant is
[FR Doc. 2017–11367 Filed 5–31–17; 8:45 am]
BILLING CODE 8011–01–P
Statement of the Purpose of, and
4 ISE Gemini, LLC, ISE Mercury, LLC and
Statutory Basis for, the Proposed Rule International Securities Exchange, LLC have been
Change renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC,
SECURITIES AND EXCHANGE and Nasdaq ISE, LLC, respectively. See Securities
COMMISSION In its filing with the Commission, the Exchange Act Rel. No. 80248 (Mar. 15, 2017), 82 FR
Exchange included statements 14547 (Mar. 21, 2017); Securities Exchange Act Rel.
[Release No. 34–80790; File No. SR–MIAX– No. 80326 (Mar. 29, 2017), 82 FR 16460 (Apr. 4,
concerning the purpose of and basis for 2017); and Securities Exchange Act Rel. No. 80325
2017–20]
the proposed rule change and discussed (Mar. 29, 2017), 82 FR 16445 (Apr. 4, 2017).
5 National Stock Exchange, Inc. has been renamed
Self-Regulatory Organizations; Miami any comments it received on the
NYSE National, Inc. See Securities Exchange Act
International Securities Exchange, proposed rule change. The text of these Rel. No. 79902 (Jan. 30, 2017), 82 FR 9258 (Feb. 3,
LLC; Notice of Filing of Proposed Rule statements may be examined at the 2017).
Change To Eliminate Requirements places specified in Item IV below. The 6 15 U.S.C. 78k–1.
7 17 CFR 242.608.
That Will Be Duplicative of CAT Exchange has prepared summaries, set
8 See Letter from the Participants to Brent J.
forth in sections A, B, and C below, of
May 26, 2017. Fields, Secretary, Commission, dated September 30,
the most significant aspects of such 2014; and Letter from Participants to Brent J. Fields,
Pursuant to Section 19(b)(1) of the
statements. Secretary, Commission, dated February 27, 2015.
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Securities Exchange Act of 1934 On December 24, 2015, the Participants submitted
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 an amendment to the CAT NMS Plan. See Letter
notice is hereby given that on May 15, from Participants to Brent J. Fields, Secretary,
Commission, dated December 23, 2015.
2017, Miami International Securities 9 See Securities Exchange Act Release No. 77724
3 Unless otherwise specified, capitalized terms
(Apr. 27, 2016), 81 FR 30614 (May 17, 2016).
35 17 CFR 200.30–3(a)(12). used in this rule filing are defined as set forth 10 See Securities Exchange Act Rel. No. 79318
1 15 U.S.C. 78s(b)(1). herein, or in the CAT Compliance Rule Series or in (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016)
2 17 CFR 240.19b–4. the CAT NMS Plan. (‘‘Approval Order’’).
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Document Created: 2017-06-01 03:04:46
Document Modified: 2017-06-01 03:04:46
| 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 25362 |
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