82 FR 25369 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change for a New NYSE Arca Rule 11.6900 and a New NYSE Arca Equities Rule 6.6900 To Establish the Procedures for Resolving Potential Disputes Related to CAT Fees Charged to Industry Members
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 104 (June 1, 2017)
Federal Register Volume 82, Issue 104 (June 1, 2017)
| Page Range | 25369-25374 | |
| FR Document | 2017-11357 |
[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)] [Notices] [Pages 25369-25374] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11357] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80781; File No. SR-NYSEArca-2017-60] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change for a New NYSE Arca Rule 11.6900 and a New NYSE Arca Equities Rule 6.6900 To Establish the Procedures for Resolving Potential Disputes Related to CAT Fees Charged to Industry Members May 26, 2017. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'' or the ``Exchange Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on May 16, 2017, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (``SEC'' or the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes a new NYSE Arca Rule 11.6900 and a new NYSE Arca Equities Rule 6.6900 to establish [[Page 25370]] the procedures for resolving potential disputes related to CAT Fees charged to Industry Members.\4\ 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. --------------------------------------------------------------------------- \4\ Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth herein or in the Consolidated Audit Trail Funding Fees sections of the NYSE Arca Options Fee Schedule and the NYSE Arca Equities Fee Schedule, the NYSE Arca and NYSE Arca Equities CAT Compliance Rule Series or in the CAT NMS Plan. --------------------------------------------------------------------------- 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 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., Financial Industry Regulatory Authority, 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,\5\ NASDAQ PHLX LLC, The NASDAQ Stock Market LLC, New York Stock Exchange LLC, NYSE MKT LLC, NYSE Arca, Inc. and NYSE National, Inc.\6\ (collectively, the ``Participants'') filed with the Commission, pursuant to Section 11A of the Exchange Act \7\ and Rule 608 of Regulation NMS thereunder,\8\ the National Market System Plan Governing the Consolidated Audit Trail (the ``CAT NMS Plan'' or ``Plan'').\9\ The Participants filed the Plan to comply with Rule 613 of Regulation NMS under the Exchange Act. The Plan was published for comment in the Federal Register on May 17, 2016,\10\ and approved by the Commission, as modified, on November 15, 2016.\11\ The Plan is designed to create, implement and maintain a consolidated audit trail (``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. The Plan accomplishes this by creating CAT NMS, LLC (the ``Company''), of which each Participant is a member, to operate the CAT.\12\ Under the CAT NMS Plan, the Operating Committee of the Company (``Operating Committee'') has discretion to establish funding for the Company to operate the CAT, including establishing fees that the Participants will pay, and establishing fees for Industry Members that will be implemented by the Participants (``CAT Fees'').\13\ The Participants are required to file with the SEC under Section 19(b) of the Exchange Act any such CAT Fees applicable to Industry Members that the Operating Committee approves.\14\ Accordingly, the Exchange filed a proposed rule change with the SEC to adopt the Consolidated Audit Trail Funding Fees, which will require Industry Members that are Exchange members to pay the CAT Fees determined by the Operating Committee.\15\ The Exchange submits this rule filing to adopt a new NYSE Arca Rule 11.6900 and a new NYSE Arca Equities Rule 6.6900 to establish the procedures for resolving potential disputes related to CAT Fees charged to Industry Members. Proposed Rule 11.6900 would apply to Industry Members of the Exchange's options market and proposed Rule 6.6900 would apply to Industry Members of the Exchange's equities markets. Proposed Rule 11.6900 is described below. --------------------------------------------------------------------------- \5\ 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 Nos. 80248 (March 15, 2017), 82 FR 14547 (March 21, 2017); 80326 (March 29, 2017), 82 FR 16460 (April 4, 2017); and 80325 (March 29, 2017), 82 FR 16445 (April 4, 2017). \6\ 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). \7\ 15 U.S.C. 78k-1. \8\ 17 CFR 242.608. \9\ 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. \10\ Securities Exchange Act Release No. 77724 (April 27, 2016), 81 FR 30614 (May 17, 2016). \11\ Securities Exchange Act Release No. 79318 (November 15, 2016), 81 FR 84696 (November 23, 2016) (``Approval Order''). \12\ The Plan also serves as the limited liability company agreement for the Company. \13\ Section 11.1(b) of the CAT NMS Plan. \14\ Section 11.1(b) of the CAT NMS Plan. \15\ See SR-NYSEArca-2017-52, filed on May 10, 2017. --------------------------------------------------------------------------- (1) Definitions Paragraph (a) of proposed Rule 11.6900 sets forth the definitions for proposed Rule 11.6900. Paragraph (a)(1) of proposed Rule 11.6900 states that, for purposes of Rule 11.6900, the terms ``CAT NMS Plan'', ``Industry Member'', ``Operating Committee'', and ``Participant'' are defined as set forth in the Rule 11.6810 (Consolidated Audit Trail-- Definitions), and the term ``CAT Fee'' is defined in the Consolidated Audit Trail Funding Fees section of the NYSE Arca Options Fee Schedule. In addition, the Exchange proposes to add paragraph (a)(2) to proposed Rule 11.6900. New paragraph (a)(2) would define the term ``Subcommittee'' to mean a subcommittee designated by the Operating Committee pursuant to the CAT NMS Plan. This definition is the same substantive definition as set forth in Section 1.1 of the CAT NMS Plan. (2) Fee Dispute Resolution Section 11.5 of the CAT NMS Plan requires Participants to adopt rules requiring that disputes with respect to fees charged to Industry Members pursuant to the CAT NMS Plan be determined by the Operating Committee or Subcommittee. Section 11.5 of the CAT NMS Plan also states that decisions by the Operating Committee or Subcommittee on such matters will be binding on Industry Members, without prejudice to the right of any Industry Member to seek redress from the SEC pursuant to SEC Rule 608 or in any other appropriate forum. The Exchange proposes to adopt paragraph (b) of proposed Rule 11.6900. Paragraph (b) of proposed Rule 11.6900 states that disputes initiated by an Industry Member with respect to CAT Fees charged to such Industry Member pursuant to the Consolidated Audit Trail Funding Fees, including disputes related to the designated tier and the fee calculated pursuant to such tier, will be resolved by the Operating Committee, or a Subcommittee designated by the Operating Committee, of the CAT NMS Plan, pursuant to the Fee Dispute Resolution Procedures adopted pursuant to the CAT NMS Plan and set forth in paragraph (c) of proposed Rule 11.6900. Decisions on such matters will be binding on Industry Members, [[Page 25371]] without prejudice to the rights of any such Industry Member to seek redress from the SEC or in any other appropriate forum. The Operating Committee has adopted ``Fee Dispute Resolution Procedures'' governing the manner in which disputes regarding CAT Fees charged pursuant to the Consolidated Audit Trail Funding Fees will be addressed. These Fee Dispute Resolution Procedures, as they relate to Industry Members, are set forth in paragraph (c) of proposed Rule 11.6900. Specifically, the Fee Dispute Resolution Procedures provide the procedure for Industry Members that dispute CAT Fees charged to such Industry Member pursuant to one or more of the Participants' Consolidated Audit Trail Funding Fees Rules, including disputes related to the designated tier and the fee calculated pursuant to such tier, to apply for an opportunity to be heard and to have the CAT Fees charged to such Industry Member reviewed. Under these Procedures, an Industry Member that disputes CAT Fees charged to such Industry Member and that desires to have an opportunity to be heard with respect to such disputed CAT Fees must file a written application with the Company within 15 business days after being notified of such disputed CAT Fees. The application must identify the disputed CAT Fees, state the specific reasons why the applicant takes exception to such CAT Fees, and set forth the relief sought. In addition, if the applicant intends to submit any additional documents, statements, arguments or other material in support of the application, the same should be so stated and identified. The Company will refer applications for hearing and review promptly to the Subcommittee designated by the Operating Committee pursuant to Section 4.12 of the CAT NMS Plan with responsibility for conducting the reviews of CAT Fee disputes pursuant to these Procedures. This Subcommittee will be referred to as the Fee Review Subcommittee. The members of the Fee Review Subcommittee will be subject to the provisions of Section 4.3(d) of the CAT NMS Plan regarding recusal and Conflicts of Interest. The Fee Review Subcommittee will keep a record of the proceedings. The Fee Review Subcommittee will hold hearings promptly. The Fee Review Subcommittee will set a hearing date. The parties to the hearing will furnish the Fee Review Subcommittee with all materials relevant to the proceedings at least 72 hours prior to the date of the hearing. Each party will have the right to inspect and copy the other party's materials prior to the hearing. The parties to the hearing will consist of the applicant and a representative of the Company who will present the reasons for the action taken by the Company that allegedly aggrieved the applicant. The applicant is entitled to be accompanied, represented and advised by counsel at all stages of the proceedings. The Fee Review Subcommittee will determine all questions concerning the admissibility of evidence and will otherwise regulate the conduct of the hearing. Each of the parties will be permitted to make an opening statement, present witnesses and documentary evidence, cross examine opposing witnesses and present closing arguments orally or in writing as determined by the Fee Review Subcommittee. The Fee Review Subcommittee also will have the right to question all parties and witnesses to the proceeding. The Fee Review Subcommittee must keep a record of the hearing. The formal rules of evidence will not apply. The Fee Review Subcommittee must set forth its decision in writing and send the written decision to the parties to the proceeding. Such decisions will contain the reasons supporting the conclusions of the Fee Review Subcommittee. The decision of the Fee Review Subcommittee will be subject to review by the Operating Committee either on its own motion within 20 business days after issuance of the decision or upon written request submitted by the applicant within 15 business days after issuance of the decision. The applicant's petition must be in writing and must specify the findings and conclusions to which the applicant objects, together with the reasons for such objections. Any objection to a decision not specified in writing will be considered to have been abandoned and may be disregarded. Parties may petition to submit a written argument to the Operating Committee and may request an opportunity to make an oral argument before the Operating Committee. The Operating Committee will have sole discretion to grant or deny either request. The Operating Committee will conduct the review. The review will be made upon the record and will be made after such further proceedings, if any, as the Operating Committee may order. Based upon such record, the Operating Committee may affirm, reverse or modify, in whole or in part, the decision of the Fee Review Subcommittee. The decision of the Operating Committee will be in writing, will be sent to the parties to the proceeding and will be final. The Procedures state that a final decision regarding the disputed CAT Fees by the Operating Committee, or the Fee Review Subcommittee (if there is no review by the Operating Committee), must be provided within 90 days of the date on which the Industry Member filed a written application regarding disputed CAT Fees with the Company. The Operating Committee may extend the 90-day time limit at its discretion. In addition, the Procedures state that any notices or other documents may be served upon the applicant either personally or by leaving the same at its, his or her place of business or by deposit in the United States post office, postage prepaid, by registered or certified mail, addressed to the applicant at its, his or her last known business or residence address. The Procedures also state that any time limits imposed under the Procedures for the submission of answers, petitions or other materials may be extended by permission of the Operating Committee. All papers and documents relating to review by the Fee Review Subcommittee or the Operating Committee must be submitted to the Fee Review Subcommittee or Operating Committee, as applicable. The Procedures also note that decisions on such CAT Fee disputes made pursuant to these Procedures will be binding on Industry Members, without prejudice to the rights of any such Industry Member to seek redress from the SEC or in any other appropriate forum. Finally, an Industry Member that files a written application with the Company regarding disputed CAT Fees in accordance with these Procedures is not required to pay such disputed CAT Fees until the dispute is resolved in accordance with these Procedures, including any review by the SEC or in any other appropriate forum. For these purposes, the disputed CAT Fees means the amount of the invoiced CAT Fees that the Industry Member has asserted pursuant to these Procedures that such Industry Member does not owe to the Company. The Industry Member must pay any invoiced CAT Fees that are not disputed CAT Fees when due as set forth in the original invoice. Once the dispute regarding CAT Fees is resolved pursuant to these Procedures, if it is determined that the Industry Member owes any of the disputed CAT Fees, then the Industry Member must pay such disputed CAT Fees that are owed as well as interest on such disputed CAT Fees from the original due date (that is, 30 days after [[Page 25372]] receipt of the original invoice of such CAT Fees) until such disputed CAT Fees are paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law. The Exchange also proposes to adopt new NYSE Arca Equities Rule 6.6900 that would be substantially the same as proposed NYSE Arca Rule 11.6900. Like its NYSE Arca counterpart, paragraph (a) of proposed NYSE Arca Equities Rule 6.6900 sets forth the definitions for proposed Rule 6.6900. Paragraph (a)(1) of proposed Rule 6.6900 states that, for purposes of Rule 6.6900, the terms ``CAT NMS Plan'', ``Industry Member'', ``Operating Committee'', and ``Participant'' are defined as set forth in the Rule 6.6810 (Consolidated Audit Trail--Definitions), and the term ``CAT Fee'' is defined in the Consolidated Audit Trail Funding Fees section of the NYSE Arca Equities Fee Schedule. In addition, the Exchange proposes to add paragraph (a)(2) to proposed Rule 6.6900. New paragraph (a)(2) would define the term ``Subcommittee'' to mean a subcommittee designated by the Operating Committee pursuant to the CAT NMS Plan. This definition is the same substantive definition as set forth in Section 1.1 of the CAT NMS Plan. Like its NYSE Arca counterpart, paragraph (b) of proposed Rule 6.6900 states that disputes initiated by an Industry Member with respect to CAT Fees charged to such Industry Member pursuant to the Consolidated Audit Trail Funding Fees, including disputes related to the designated tier and the fee calculated pursuant to such tier, will be resolved by the Operating Committee, or a Subcommittee designated by the Operating Committee, of the CAT NMS Plan, pursuant to the Fee Dispute Resolution Procedures adopted pursuant to the CAT NMS Plan and set forth in paragraph (c) of proposed Rule 6.6900. As discussed above, the Operating Committee has adopted ``Fee Dispute Resolution Procedures'' governing the manner in which disputes regarding CAT Fees charged pursuant to the Consolidated Audit Trail Funding Fees will be addressed. These Fee Dispute Resolution Procedures, as they relate to Industry Members, are set forth in paragraph (c) of proposed Rule 6.6900, and are identical to those set forth in paragraph (c) of proposed NYSE Arca Rule 11.6900. The Fee Dispute Resolution Procedures provide the procedure for Industry Members that dispute CAT Fees charged to such Industry Member pursuant to one or more of the Participants' Consolidated Audit Trail Funding Fees Rules, including disputes related to the designated tier and the fee calculated pursuant to such tier, to apply for an opportunity to be heard and to have the CAT Fees charged to such Industry Member reviewed. As described above for paragraph (c) of proposed NYSE Arca Rule 11.6900, under the Fee Dispute Resolution Procedures, an Industry Member that disputes CAT Fees charged to such Industry Member and that desires to have an opportunity to be heard with respect to such disputed CAT Fees must file a written application with the Company within 15 business days after being notified of such disputed CAT Fees. The application must identify the disputed CAT Fees, state the specific reasons why the applicant takes exception to such CAT Fees, and set forth the relief sought. In addition, if the applicant intends to submit any additional documents, statements, arguments or other material in support of the application, the same should be so stated and identified. The Company will refer applications for hearing and review promptly to the Subcommittee designated by the Operating Committee pursuant to Section 4.12 of the CAT NMS Plan with responsibility for conducting the reviews of CAT Fee disputes pursuant to these Procedures. This Subcommittee will be referred to as the Fee Review Subcommittee. The members of the Fee Review Subcommittee will be subject to the provisions of Section 4.3(d) of the CAT NMS Plan regarding recusal and Conflicts of Interest. The Fee Review Subcommittee will keep a record of the proceedings. The Fee Review Subcommittee will hold hearings promptly. The Fee Review Subcommittee will set a hearing date. The parties to the hearing will furnish the Fee Review Subcommittee with all materials relevant to the proceedings at least 72 hours prior to the date of the hearing. Each party will have the right to inspect and copy the other party's materials prior to the hearing. The parties to the hearing will consist of the applicant and a representative of the Company who will present the reasons for the action taken by the Company that allegedly aggrieved the applicant. The applicant is entitled to be accompanied, represented and advised by counsel at all stages of the proceedings. The Fee Review Subcommittee will determine all questions concerning the admissibility of evidence and will otherwise regulate the conduct of the hearing. Each of the parties will be permitted to make an opening statement, present witnesses and documentary evidence, cross examine opposing witnesses and present closing arguments orally or in writing as determined by the Fee Review Subcommittee. The Fee Review Subcommittee also will have the right to question all parties and witnesses to the proceeding. The Fee Review Subcommittee must keep a record of the hearing. The formal rules of evidence will not apply. The Fee Review Subcommittee must set forth its decision in writing and send the written decision to the parties to the proceeding. Such decisions will contain the reasons supporting the conclusions of the Fee Review Subcommittee. The decision of the Fee Review Subcommittee will be subject to review by the Operating Committee either on its own motion within 20 business days after issuance of the decision or upon written request submitted by the applicant within 15 business days after issuance of the decision. The applicant's petition must be in writing and must specify the findings and conclusions to which the applicant objects, together with the reasons for such objections. Any objection to a decision not specified in writing will be considered to have been abandoned and may be disregarded. Parties may petition to submit a written argument to the Operating Committee and may request an opportunity to make an oral argument before the Operating Committee. The Operating Committee will have sole discretion to grant or deny either request. The Operating Committee will conduct the review. The review will be made upon the record and will be made after such further proceedings, if any, as the Operating Committee may order. Based upon such record, the Operating Committee may affirm, reverse or modify, in whole or in part, the decision of the Fee Review Subcommittee. The decision of the Operating Committee will be in writing, will be sent to the parties to the proceeding and will be final. The Procedures state that a final decision regarding the disputed CAT Fees by the Operating Committee, or the Fee Review Subcommittee (if there is no review by the Operating Committee), must be provided within 90 days of the date on which the Industry Member filed a written application regarding disputed CAT Fees with the Company. The Operating Committee may extend the 90-day time limit at its discretion. In addition, the Procedures state that any notices or other documents may be served upon the applicant either [[Page 25373]] personally or by leaving the same at its, his or her place of business or by deposit in the United States post office, postage prepaid, by registered or certified mail, addressed to the applicant at its, his or her last known business or residence address. The Procedures also state that any time limits imposed under the Procedures for the submission of answers, petitions or other materials may be extended by permission of the Operating Committee. All papers and documents relating to review by the Fee Review Subcommittee or the Operating Committee must be submitted to the Fee Review Subcommittee or Operating Committee, as applicable. The Procedures also note that decisions on such CAT Fee disputes made pursuant to these Procedures will be binding on Industry Members, without prejudice to the rights of any such Industry Member to seek redress from the SEC or in any other appropriate forum. Finally, an Industry Member that files a written application with the Company regarding disputed CAT Fees in accordance with these Procedures is not required to pay such disputed CAT Fees until the dispute is resolved in accordance with these Procedures, including any review by the SEC or in any other appropriate forum. For these purposes, the disputed CAT Fees means the amount of the invoiced CAT Fees that the Industry Member has asserted pursuant to these Procedures that such Industry Member does not owe to the Company. The Industry Member must pay any invoiced CAT Fees that are not disputed CAT Fees when due as set forth in the original invoice. Once the dispute regarding CAT Fees is resolved pursuant to these Procedures, if it is determined that the Industry Member owes any of the disputed CAT Fees, then the Industry Member must pay such disputed CAT Fees that are owed as well as interest on such disputed CAT Fees from the original due date (that is, 30 days after receipt of the original invoice of such CAT Fees) until such disputed CAT Fees are paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b)(5) of the Act,\16\ which require, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers, and Section 6(b)(8) of the Act,\17\ which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f(b)(5). \17\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange believes that this proposal is consistent with the Act because it implements, interprets or clarifies Section 11.5 of the Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan ``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.'' \18\ To the extent that this proposal implements, interprets or clarifies the Plan and applies specific requirements to Industry 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. --------------------------------------------------------------------------- \18\ Approval Order at 84697. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that the proposed rule change implements Section 11.5 of the CAT NMS Plan approved by the Commission, and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan. Similarly, all national securities exchanges and FINRA are proposing this proposed rule to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive rule filing, and, therefore, it does not raise competition issues between and among the exchanges and FINRA. 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 within such longer period 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-2017-60 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2017-60. 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 [[Page 25374]] 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-2017-60, and should be submitted on or before June 22, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-11357 Filed 5-31-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices 25369
impediments to, and perfect the C. Self-Regulatory Organization’s available for Web site viewing and
mechanism of a national market system, Statement on Comments on the printing in the Commission’s Public
or is otherwise in furtherance of the Proposed Rule Change Received From Reference Room, 100 F Street NE.,
purposes of the Act.’’ 21 As this proposal Members, Participants, or Others Washington, DC 20549 on official
implements the Plan, the Exchange Written comments were neither business days between the hours of
believes that this proposal furthers the 10:00 a.m. and 3:00 p.m. Copies of such
solicited nor received.
objectives of the Plan, as identified by filing also will be available for
the SEC, and is therefore consistent with III. Date of Effectiveness of the inspection and copying at the principal
the Exchange Act. Proposed Rule Change and Timing for office of the Exchange. All comments
Commission Action received will be posted without change;
Moreover, the purpose of the the Commission does not edit personal
proposed rule change is to amend rules Within 45 days of the date of
publication of this notice in the Federal identifying information from
that require the submission of submissions. You should submit only
Register or within such longer period (i)
duplicative data to the Exchange. The information that you wish to make
as the Commission may designate up to
elimination of such duplicative available publicly. All submissions
90 days of such date if it finds such
requirements will reduce unnecessary should refer to File Number SR–MIAX–
longer period to be appropriate and
costs and other compliance burdens for publishes its reasons for so finding or 2017–20, and should be submitted on or
the Exchange and its Members, and (ii) as to which the Exchange consents, before June 22, 2017.
therefore, will enhance the efficiency of the Commission shall: (a) By order For the Commission, by the Division of
the securities markets. Furthermore, the approve or disapprove such proposed Trading and Markets, pursuant to delegated
Exchange believes that the approach set authority.23
rule change, or (b) institute proceedings
forth in the proposed rule change strikes to determine whether the proposed rule Eduardo A. Aleman,
the appropriate balance between change should be disapproved. Assistant Secretary.
ensuring that the Exchange is able to [FR Doc. 2017–11366 Filed 5–31–17; 8:45 am]
continue to fulfill its statutory IV. Solicitation of Comments BILLING CODE 8011–01–P
obligation to protect investors and the Interested persons are invited to
public interest by ensuring its submit written data, views, and
surveillance of market activity remains arguments concerning the foregoing, SECURITIES AND EXCHANGE
accurate and effective while also including whether the proposed rule COMMISSION
establishing a reasonable timeframe for change is consistent with the Act. [Release No. 34–80781; File No. SR–
elimination or modification of its rules Comments may be submitted by any of NYSEArca–2017–60]
that will be rendered duplicative after the following methods:
implementation of the CAT. Self-Regulatory Organizations; NYSE
Electronic Comments Arca, Inc.; Notice of Filing of Proposed
B. Self-Regulatory Organization’s • Use the Commission’s Internet Rule Change for a New NYSE Arca
Statement on Burden on Competition comment form (http://www.sec.gov/ Rule 11.6900 and a New NYSE Arca
rules/sro.shtml); or Equities Rule 6.6900 To Establish the
Section 6(b)(8) of the Exchange Act 22 • Send an email to rule- Procedures for Resolving Potential
requires that Exchange rules not impose comments@sec.gov. Please include File Disputes Related to CAT Fees Charged
any burden on competition that is not Number SR–MIAX–2017–20 on the to Industry Members
necessary or appropriate. The Exchange subject line.
does not believe that the proposed rule May 26, 2017.
Paper Comments Pursuant to Section 19(b)(1) 1 of the
change will result in any burden on
competition that is not necessary or • Send paper comments in triplicate Securities Exchange Act of 1934 (‘‘Act’’
appropriate in furtherance of the to Brent J. Fields, Secretary, Securities or the ‘‘Exchange Act’’) 2 and Rule 19b–
purposes of the Exchange Act. The and Exchange Commission, 100 F Street 4 thereunder,3 notice is hereby given
NE., Washington, DC 20549–1090. that, on May 16, 2017, NYSE Arca, Inc.
Exchange notes that the proposed rule
(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
change implements the requirements of All submissions should refer to File
with the Securities and Exchange
the CAT NMS Plan approved by the Number SR–MIAX–2017–20. This file
Commission (‘‘SEC’’ or the
Commission regarding the elimination number should be included on the
‘‘Commission’’) the proposed rule
of rules and systems that are duplicative subject line if email is used. To help the
change as described in Items I and II
the CAT, and is designed to assist the Commission process and review your
below, which Items have been prepared
Exchange in meeting its regulatory comments more efficiently, please use
by the self-regulatory organization. The
obligations pursuant to the Plan. only one method. The Commission will
Commission is publishing this notice to
Similarly, all exchanges and FINRA are post all comments on the Commission’s
solicit comments on the proposed rule
proposing the elimination of their EBS Internet Web site (http://www.sec.gov/
change from interested persons.
and other CAT duplicative rules to rules/sro.shtml). Copies of the
submission, all subsequent I. Self-Regulatory Organization’s
implement the requirements of the CAT
amendments, all written statements Statement of the Terms of Substance of
NMS Plan. Therefore, this is not a
with respect to the proposed rule the Proposed Rule Change
competitive rule filing and, therefore, it
change that are filed with the
mstockstill on DSK30JT082PROD with NOTICES
does not raise competition issues The Exchange proposes a new NYSE
Commission, and all written Arca Rule 11.6900 and a new NYSE
between and among the self-regulatory communications relating to the
organizations and/or their members. Arca Equities Rule 6.6900 to establish
proposed rule change between the
Commission and any person, other than 23 17 CFR 200.30–3(a)(12).
those that may be withheld from the 1 15 U.S.C.78s (b)(1).
21 Approval Order at 84697. public in accordance with the 2 15 U.S.C. 78a.
22 15 U.S.C. 78f(b)(8) provisions of 5 U.S.C. 552, will be 3 17 CFR 240.19b–4.
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![25374 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices
office of the Exchange. All comments related systems by Regulatory Circular Rule 608 of Regulation NMS
received will be posted without change; that will be published once the options thereunder,7 the CAT NMS Plan.8 The
the Commission does not edit personal exchanges determine the thresholds for Participants filed the Plan to comply
identifying information from accuracy and reliability described below with Rule 613 of Regulation NMS under
submissions. You should submit only have been met and that the Plan the Exchange Act. The Plan was
information that you wish to make Processor for CAT is sufficiently published for comment in the Federal
available publicly. All submissions meeting all of its obligations under the Register on May 17, 2016,9 and
should refer to File Number SR– CAT NMS Plan. approved by the Commission, as
NYSEArca–2017–60, and should be The text of the proposed rule change modified, on November 15, 2016.10 The
submitted on or before June 22, 2017. is available at the Exchange’s Web site Plan is designed to create, implement
at www.bats.com, at the principal office and maintain a CAT that would capture
For the Commission, by the Division of
Trading and Markets, pursuant to delegated of the Exchange, and at the customer and order event information
authority.19 Commission’s Public Reference Room. for orders in NMS Securities and OTC
Eduardo A. Aleman, II. Self-Regulatory Organization’s Equity Securities, across all markets,
Assistant Secretary. Statement of the Purpose of, and from the time of order inception through
Statutory Basis for, the Proposed Rule routing, cancellation, modification, or
[FR Doc. 2017–11357 Filed 5–31–17; 8:45 am]
Change execution in a single consolidated data
BILLING CODE 8011–01–P
source. Pursuant to Appendix C of the
In its filing with the Commission, the CAT NMS Plan, each Participant is
Exchange included statements required to conduct analyses of which
SECURITIES AND EXCHANGE concerning the purpose of and basis for of its existing trade and order data rules
COMMISSION the proposed rule change and discussed and systems require the collection of
[Release No. 34–80796; File No. SR– any comments it received on the information that is duplicative of
BatsBZX–2017–37] proposed rule change. The text of these information collected for the CAT.11 In
statements may be examined at the addition, among other things, Section
Self-Regulatory Organizations; Bats places specified in Item IV below. The C.9 of Appendix C to the Plan, as
BZX Exchange, Inc.; Notice of Filing of Exchange has prepared summaries, set modified by the Commission, requires
Proposed Rule Change To Eliminate forth in Sections A, B, and C below, of each Participant to ‘‘file with the SEC
Requirements That Will Be Duplicative the most significant parts of such the relevant rule change filing to
of CAT statements. eliminate or modify its duplicative rules
May 26, 2017. (A) Self-Regulatory Organization’s within six (6) months of the SEC’s
Statement of the Purpose of, and approval of the CAT NMS Plan.’’ 12 The
Pursuant to Section 19(b)(1) of the Plan notes that ‘‘the elimination of such
Securities Exchange Act of 1934 (the Statutory Basis for, the Proposed Rule
Change rules and the retirement of such systems
‘‘Act’’) 1 and Rule 19b–4 thereunder,2 [will] be effective at such time as CAT
notice is hereby given that on May 15, 1. Purpose Data meets minimum standards of
2017, Bats BZX Exchange, Inc. (the accuracy and reliability.’’ 13
Bats BYX Exchange, Inc., Bats BZX
‘‘Exchange’’ or ‘‘BZX’’) filed with the After conducting its analysis of its
Exchange, Inc., Bats EDGA Exchange,
Securities and Exchange Commission Inc., Bats EDGX Exchange, Inc., BOX rules in accordance with the CAT NMS
(‘‘Commission’’) the proposed rule Options Exchange LLC, C2 Options Plan, the Exchange determined Rules
change as described in Items I, II, and Exchange, Incorporated, Chicago Board 22.7 and 24.4 require the reporting of
III below, which Items have been Options Exchange, Incorporated, information intended to be collected by
prepared by the Exchange. The Chicago Stock Exchange, Inc., Financial the CAT. Therefore, the Exchange
Commission is publishing this notice to Industry Regulatory Authority, Inc. believes those provisions will no longer
solicit comments on the proposed rule (‘‘FINRA’’), Investors’ Exchange LLC, be necessary once the CAT is
change from interested persons. Miami International Securities operational and proposes to modify
I. Self-Regulatory Organization’s Exchange, LLC, MIAX PEARL, LLC, those Rules as described below.
Statement of the Terms of Substance of NASDAQ BX, Inc., Nasdaq GEMX, LLC, Additionally, the Exchange describes
the Proposed Rule Change Nasdaq ISE, LLC, Nasdaq MRX, LLC,4 below additional reporting requirements
NASDAQ PHLX LLC, The NASDAQ that it may reduce for which no rule
The Exchange filed a proposal to changes are necessary. These changes
Stock Market LLC, New York Stock
modify requirements for the collection will be implemented in accordance with
Exchange LLC, NYSE MKT LLC, NYSE
of information that is duplicative of the timeline described below.
Arca, Inc. and NYSE National, Inc.5
information intended to be collected for
(collectively, the ‘‘Participants’’) filed
the consolidated audit trail (‘‘CAT’’) 7 17 CFR 242.608.
with the Commission, pursuant to
adopted pursuant to the National 8 See Letter from the Participants to Brent J.
Section 11A of the Exchange Act 6 and Fields, Secretary, Commission, dated September 30,
Market System Plan Governing the
2014; and Letter from Participants to Brent J. Fields,
Consolidated Audit Trail (the ‘‘CAT 4 ISE Gemini, LLC, ISE Mercury, LLC and Secretary, Commission, dated February 27, 2015.
NMS Plan’’ or ‘‘Plan’’).3 The Exchange International Securities Exchange, LLC have been On December 24, 2015, the Participants submitted
will announce the implementation date renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC, an amendment to the CAT NMS Plan. See Letter
of the proposed rule change and and Nasdaq ISE, LLC, respectively. See Securities from Participants to Brent J. Fields, Secretary,
Exchange Act Rel. No. 80248 (Mar. 15, 2017), 82 FR Commission, dated December 23, 2015.
effective date of the retirement of any
mstockstill on DSK30JT082PROD with NOTICES
14547 (Mar. 21, 2017); Securities Exchange Act Rel. 9 Securities Exchange Act Rel. No. 77724 (Apr.
No. 80326 (Mar. 29, 2017), 82 FR 16460 (Apr. 4, 27, 2016), 81 FR 30614 (May 17, 2016).
19 17 CFR 200.30–3(a)(12). 2017); and Securities Exchange Act Rel. No. 80325 10 Securities Exchange Act Rel. No. 79318 (Nov.
1 15 U.S.C. 78s(b)(1). (Mar. 29, 2017), 82 FR 16445 (Apr. 4, 2017). 15, 2016), 81 FR 84696 (Nov. 23, 2016) (‘‘Approval
2 17 CFR 240.19b–4. 5 National Stock Exchange, Inc. has been renamed Order’’).
3 Unless otherwise specified, capitalized terms NYSE National, Inc. See Securities Exchange Act 11 Appendix C of CAT NMS Plan, Approval Order
used in this rule filing are defined as set forth Rel. No. 79902 (Jan. 30, 2017), 82 FR 9258 (Feb. 3, at 85010.
herein, or in the CAT Compliance Rule Series or in 2017). 12 Id.
the CAT NMS Plan. 6 15 U.S.C. 78k–1. 13 Id.
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Document Created: 2017-06-01 03:04:58
Document Modified: 2017-06-01 03:04:58
| 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 25369 |
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