82_FR_25482 82 FR 25378 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Amend Commentary .01 and Commentary .02 to NYSE Arca Equities Rule 5.2(j)(3) To Provide for the Inclusion of Cash in an Index Underlying a Series of Investment Company Units

82 FR 25378 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Amend Commentary .01 and Commentary .02 to NYSE Arca Equities Rule 5.2(j)(3) To Provide for the Inclusion of Cash in an Index Underlying a Series of Investment Company Units

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 104 (June 1, 2017)

Page Range25378-25379
FR Document2017-11255

Federal Register, Volume 82 Issue 104 (Thursday, June 1, 2017)
[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)]
[Notices]
[Pages 25378-25379]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11255]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80777; File No. SR-NYSEArca-2017-30]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a 
Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Amend 
Commentary .01 and Commentary .02 to NYSE Arca Equities Rule 5.2(j)(3) 
To Provide for the Inclusion of Cash in an Index Underlying a Series of 
Investment Company Units

May 25, 2017.

I. Introduction

    On March 29, 2017, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 
(``Act'' or ``Exchange Act'') \2\ and Rule 19b-4 thereunder,\3\ a 
proposed rule change to amend Commentary .01 and Commentary .02 to NYSE 
Arca Equities Rule 5.2(j)(3) to provide for the inclusion of cash in an 
index underlying a series of Investment Company Units. The proposed 
rule change was published for comment in the Federal Register on April 
14, 2017.\4\ On May 10, 2017, the Exchange filed Amendment No. 1 to the 
proposed rule change.\5\ The Commission received no comments on the 
proposed rule change. This order approves the proposed rule change, as 
modified by Amendment No. 1 thereto.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ See Securities Exchange Act Release No. 80415 (April 10, 
2017), 82 FR 18067.
    \5\ In Amendment No. 1, which amended and replaced the proposed 
rule change in its entirety, the Exchange made a technical change to 
the proposed rule text. Amendment No. 1 to the proposed rule change 
is available at: https://www.sec.gov/comments/sr-nysearca-2017-30/nysearca201730-1749397-151677.pdf. Amendment No. 1 is not subject to 
notice and comment because it is a technical amendment that does not 
materially alter the described substance of the proposed rule change 
or raise any novel regulatory issues.
---------------------------------------------------------------------------

II. Description of the Proposal

    Commentary .01(a)(A), Commentary .01 (a)(B), and Commentary .02 to 
NYSE Arca Equities Rule 5.2(j)(3) permit the Exchange to generically 
list Investment Company Units (``Units'') that overlie an index or 
portfolio of US Component Stocks,\6\ Non-US Component Stocks,\7\ US 
Component Stocks and Non-US Component Stocks, and Fixed Income 
Securities \8\ that meets specified criteria. While ``Investment 
Companies,'' \9\ like mutual funds, may hold cash, currently, the 
generic listing criteria of NYSE Arca Equities Rule 5.2(j)(3) do not 
contemplate the generic listing Units overlying an index or portfolio 
with a cash component.
---------------------------------------------------------------------------

    \6\ ``US Component Stock'' is defined in NYSE Arca Equities Rule 
5.2(j)(3) as an equity security that is registered under Sections 
12(b) or 12(g) of the Securities Exchange Act of 1934 or an American 
Depositary Receipt, the underlying equity security of which is 
registered under Sections 12(b) or 12(g) of the Securities Exchange 
Act of 1934.
    \7\ ``Non-US Component Stock'' is defined in NYSE Arca Equities 
Rule 5.2(j)(3) as an equity security that is not registered under 
Sections 12(b) or 12(g) of the Securities Exchange Act of 1934 and 
that is issued by an entity that (a) is not organized, domiciled or 
incorporated in the United States, and (b) is an operating company 
(including Real Estate Investment Trusts and income trusts, but 
excluding investment trusts, unit trusts, mutual funds, and 
derivatives).
    \8\ Commentary .02 to NYSE Arca Equities Rule 5.2(j)(3) defines 
Fixed Income Securities as debt securities that are notes, bonds, 
debentures or evidence of indebtedness that include, but are not 
limited to, U.S. Department of Treasury securities, government-
sponsored entity securities, municipal securities, trust preferred 
securities, supranational debt and debt of a foreign country or a 
subdivision thereof.
    \9\ The term ``Investment Company'' is defined in NYSE Arca 
Equities Rule 5.2(j)(3).
---------------------------------------------------------------------------

    The Exchange proposes to amend Commentary .01 and Commentary .02 to 
NYSE Arca Equities Rule 5.2(j)(3) to permit the generic listing and 
trading of Units overlying an index or portfolio of cash and: (1) US 
Component Stocks; (2) Non-US Component Stocks; (3) US Component Stocks 
and Non-US Component Stocks; and (4) Fixed Income Securities. 
Additionally, the Exchange is not proposing to otherwise amend the 
applicable generic listing criteria, except to specify that the 
following generic listing criteria will not apply to the cash portion 
of the index or portfolio:
     Under proposed Commentary .01(a)(A)(1) through (4) to NYSE 
Arca Equities Rule 5.2(j)(3), the percentage weighting requirements 
would apply only to the US Component Stocks portion of the underlying 
index or portfolio.
     Under proposed Commentary .01 (a)(B)(1) through (4) to 
NYSE Arca Equities Rule 5.2(j)(3), the percentage weighting 
requirements would not apply to the cash component of the underlying 
index or portfolio.
     Under proposed Commentary .02(a)(2), (a)(4), and (a)(6) to 
NYSE Arca Equities Rule 5.2(j)(3) the percentage weighting requirements 
would apply only to the Fixed Income Securities portion of the 
underlying index or portfolio.

The Exchange does not propose any limit to the weighting of cash in an 
index or portfolio underlying a series of Units.\10\ The Commission 
notes that, under a provision of its current rule, the Exchange may 
generically list Units overlying a combination of indexes so long as 
each index satisfies the generic listing criteria.\11\
---------------------------------------------------------------------------

    \10\ See Amendment No. 1, supra note 5, at 6.
    \11\ See Commentary .03 to NYSE Arca Equities Rule 5.2(j)(3).
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change, as modified by Amendment No. 1, is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to a national securities exchange.\12\ In particular, the 
Commission finds that the proposed rule change is consistent with 
Section 6(b)(5) of the Act,\13\ which requires, among other things, 
that the rules of a national securities exchange be designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system and, 
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \12\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that permitting the Exchange to generically 
list Units that overlie an index or portfolio with a cash component may 
enhance competition among generically listed Units, to the benefit of 
investors and the marketplace. Additionally, the Commission believes 
that the generic listing criteria referenced above, applicable only to 
the non-cash portion(s) of the index or portfolio will neither dilute 
the generic listing criteria nor render the indexes or portfolios 
underlying generically listed Units more susceptible to 
manipulation.\14\
---------------------------------------------------------------------------

    \14\ The Commission also notes that the Exchange represents that 
it has in place surveillance procedures that are adequate to 
properly monitor trading in Units in all trading sessions and to 
deter and detect violations of Exchange rules and applicable federal 
securities laws. See Amendment No. 1, supra note 5, at 7.
---------------------------------------------------------------------------

    For the foregoing reasons, the Commission finds that the proposed 
rule change, as modified by Amendment

[[Page 25379]]

No. 1 thereto, is consistent with Section 6(b)(5) of the Act \15\ and 
the rules and regulations thereunder applicable to a national 
securities exchange.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Exchange Act,\16\ that the proposed rule change (SR-NYSEArca-2017-30), 
as modified by Amendment No. 1 thereto, be, and it hereby is, approved.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-11255 Filed 5-31-17; 8:45 am]
BILLING CODE 8011-01-P



                                                  25378                          Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices

                                                    For the Commission, by the Division of                Exchange to generically list Investment                 Equities Rule 5.2(j)(3) the percentage
                                                  Trading and Markets, pursuant to delegated              Company Units (‘‘Units’’) that overlie an               weighting requirements would apply
                                                  authority.29                                            index or portfolio of US Component                      only to the Fixed Income Securities
                                                  Eduardo A. Aleman,                                      Stocks,6 Non-US Component Stocks,7                      portion of the underlying index or
                                                  Assistant Secretary.                                    US Component Stocks and Non-US                          portfolio.
                                                  [FR Doc. 2017–11372 Filed 5–31–17; 8:45 am]             Component Stocks, and Fixed Income                      The Exchange does not propose any
                                                  BILLING CODE 8011–01–P                                  Securities 8 that meets specified criteria.             limit to the weighting of cash in an
                                                                                                          While ‘‘Investment Companies,’’ 9 like                  index or portfolio underlying a series of
                                                                                                          mutual funds, may hold cash, currently,                 Units.10 The Commission notes that,
                                                  SECURITIES AND EXCHANGE                                 the generic listing criteria of NYSE Arca               under a provision of its current rule, the
                                                  COMMISSION                                              Equities Rule 5.2(j)(3) do not                          Exchange may generically list Units
                                                  [Release No. 34–80777; File No. SR–                     contemplate the generic listing Units                   overlying a combination of indexes so
                                                  NYSEArca–2017–30]                                       overlying an index or portfolio with a                  long as each index satisfies the generic
                                                                                                          cash component.                                         listing criteria.11
                                                  Self-Regulatory Organizations; NYSE                        The Exchange proposes to amend
                                                  Arca, Inc.; Order Approving a                           Commentary .01 and Commentary .02 to                    III. Discussion and Commission
                                                  Proposed Rule Change, as Modified by                    NYSE Arca Equities Rule 5.2(j)(3) to                    Findings
                                                  Amendment No. 1 Thereto, To Amend                       permit the generic listing and trading of                  After careful review, the Commission
                                                  Commentary .01 and Commentary .02                       Units overlying an index or portfolio of                finds that the proposed rule change, as
                                                  to NYSE Arca Equities Rule 5.2(j)(3) To                 cash and: (1) US Component Stocks; (2)                  modified by Amendment No. 1, is
                                                  Provide for the Inclusion of Cash in an                 Non-US Component Stocks; (3) US                         consistent with the requirements of the
                                                  Index Underlying a Series of                            Component Stocks and Non-US                             Act and the rules and regulations
                                                  Investment Company Units                                Component Stocks; and (4) Fixed                         thereunder applicable to a national
                                                                                                          Income Securities. Additionally, the                    securities exchange.12 In particular, the
                                                  May 25, 2017.                                           Exchange is not proposing to otherwise                  Commission finds that the proposed
                                                  I. Introduction                                         amend the applicable generic listing                    rule change is consistent with Section
                                                                                                          criteria, except to specify that the                    6(b)(5) of the Act,13 which requires,
                                                     On March 29, 2017, NYSE Arca, Inc.
                                                                                                          following generic listing criteria will not             among other things, that the rules of a
                                                  (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
                                                                                                          apply to the cash portion of the index                  national securities exchange be
                                                  with the Securities and Exchange
                                                                                                          or portfolio:                                           designed to prevent fraudulent and
                                                  Commission (‘‘Commission’’), pursuant                      • Under proposed Commentary
                                                  to Section 19(b)(1) 1 of the Securities                                                                         manipulative acts and practices, to
                                                                                                          .01(a)(A)(1) through (4) to NYSE Arca                   promote just and equitable principles of
                                                  Exchange Act of 1934 (‘‘Act’’ or                        Equities Rule 5.2(j)(3), the percentage
                                                  ‘‘Exchange Act’’) 2 and Rule 19b–4                                                                              trade, to remove impediments to and
                                                                                                          weighting requirements would apply                      perfect the mechanism of a free and
                                                  thereunder,3 a proposed rule change to                  only to the US Component Stocks
                                                  amend Commentary .01 and                                                                                        open market and a national market
                                                                                                          portion of the underlying index or                      system and, in general, to protect
                                                  Commentary .02 to NYSE Arca Equities                    portfolio.
                                                  Rule 5.2(j)(3) to provide for the                                                                               investors and the public interest.
                                                                                                             • Under proposed Commentary .01                         The Commission believes that
                                                  inclusion of cash in an index underlying                (a)(B)(1) through (4) to NYSE Arca
                                                  a series of Investment Company Units.                                                                           permitting the Exchange to generically
                                                                                                          Equities Rule 5.2(j)(3), the percentage                 list Units that overlie an index or
                                                  The proposed rule change was                            weighting requirements would not
                                                  published for comment in the Federal                                                                            portfolio with a cash component may
                                                                                                          apply to the cash component of the                      enhance competition among generically
                                                  Register on April 14, 2017.4 On May 10,                 underlying index or portfolio.                          listed Units, to the benefit of investors
                                                  2017, the Exchange filed Amendment                         • Under proposed Commentary                          and the marketplace. Additionally, the
                                                  No. 1 to the proposed rule change.5 The                 .02(a)(2), (a)(4), and (a)(6) to NYSE Arca
                                                  Commission received no comments on                                                                              Commission believes that the generic
                                                  the proposed rule change. This order                       6 ‘‘US Component Stock’’ is defined in NYSE
                                                                                                                                                                  listing criteria referenced above,
                                                  approves the proposed rule change, as                   Arca Equities Rule 5.2(j)(3) as an equity security
                                                                                                                                                                  applicable only to the non-cash
                                                  modified by Amendment No. 1 thereto.                    that is registered under Sections 12(b) or 12(g) of     portion(s) of the index or portfolio will
                                                                                                          the Securities Exchange Act of 1934 or an American      neither dilute the generic listing criteria
                                                  II. Description of the Proposal                         Depositary Receipt, the underlying equity security      nor render the indexes or portfolios
                                                                                                          of which is registered under Sections 12(b) or 12(g)
                                                     Commentary .01(a)(A), Commentary                     of the Securities Exchange Act of 1934.
                                                                                                                                                                  underlying generically listed Units more
                                                  .01 (a)(B), and Commentary .02 to NYSE                     7 ‘‘Non-US Component Stock’’ is defined in NYSE      susceptible to manipulation.14
                                                  Arca Equities Rule 5.2(j)(3) permit the                 Arca Equities Rule 5.2(j)(3) as an equity security         For the foregoing reasons, the
                                                                                                          that is not registered under Sections 12(b) or 12(g)    Commission finds that the proposed
                                                    29 17
                                                                                                          of the Securities Exchange Act of 1934 and that is      rule change, as modified by Amendment
                                                            CFR 200.30–3(a)(12).                          issued by an entity that (a) is not organized,
                                                    1 15   U.S.C. 78s(b)(1).                              domiciled or incorporated in the United States, and
                                                     2 15 U.S.C. 78a.                                                                                               10 See  Amendment No. 1, supra note 5, at 6.
                                                                                                          (b) is an operating company (including Real Estate
                                                     3 17 CFR 240.19b–4.                                                                                            11 See  Commentary .03 to NYSE Arca Equities
                                                                                                          Investment Trusts and income trusts, but excluding
                                                     4 See Securities Exchange Act Release No. 80415      investment trusts, unit trusts, mutual funds, and       Rule 5.2(j)(3).
                                                  (April 10, 2017), 82 FR 18067.                          derivatives).                                              12 In approving this proposed rule change, the

                                                     5 In Amendment No. 1, which amended and                 8 Commentary .02 to NYSE Arca Equities Rule          Commission has considered the proposed rule’s
                                                  replaced the proposed rule change in its entirety,      5.2(j)(3) defines Fixed Income Securities as debt       impact on efficiency, competition, and capital
mstockstill on DSK30JT082PROD with NOTICES




                                                  the Exchange made a technical change to the             securities that are notes, bonds, debentures or         formation. See 15 U.S.C. 78c(f).
                                                  proposed rule text. Amendment No. 1 to the              evidence of indebtedness that include, but are not         13 15 U.S.C. 78f(b)(5).

                                                  proposed rule change is available at: https://          limited to, U.S. Department of Treasury securities,        14 The Commission also notes that the Exchange

                                                  www.sec.gov/comments/sr-nysearca-2017-30/               government-sponsored entity securities, municipal       represents that it has in place surveillance
                                                  nysearca201730-1749397-151677.pdf. Amendment            securities, trust preferred securities, supranational   procedures that are adequate to properly monitor
                                                  No. 1 is not subject to notice and comment because      debt and debt of a foreign country or a subdivision     trading in Units in all trading sessions and to deter
                                                  it is a technical amendment that does not materially    thereof.                                                and detect violations of Exchange rules and
                                                  alter the described substance of the proposed rule         9 The term ‘‘Investment Company’’ is defined in      applicable federal securities laws. See Amendment
                                                  change or raise any novel regulatory issues.            NYSE Arca Equities Rule 5.2(j)(3).                      No. 1, supra note 5, at 7.



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                                                                                 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices                                                     25379

                                                  No. 1 thereto, is consistent with Section               change is available on the Exchange’s                 NMS Plan’’ or ‘‘Plan’’).9 The
                                                  6(b)(5) of the Act 15 and the rules and                 Web site at www.nyse.com, at the                      Participants filed the Plan to comply
                                                  regulations thereunder applicable to a                  principal office of the Exchange, and at              with Rule 613 of Regulation NMS under
                                                  national securities exchange.                           the Commission’s Public Reference                     the Exchange Act. The Plan was
                                                                                                          Room.                                                 published for comment in the Federal
                                                  IV. Conclusion
                                                                                                                                                                Register on May 17, 2016,10 and
                                                    It is therefore ordered, pursuant to                  II. Self-Regulatory Organization’s                    approved by the Commission, as
                                                  Section 19(b)(2) of the Exchange Act,16                 Statement of the Purpose of, and                      modified, on November 15, 2016.11 The
                                                  that the proposed rule change (SR–                      Statutory Basis for, the Proposed Rule                Plan is designed to create, implement
                                                  NYSEArca–2017–30), as modified by                       Change                                                and maintain a consolidated audit trail
                                                  Amendment No. 1 thereto, be, and it                                                                           (‘‘CAT’’) that would capture customer
                                                  hereby is, approved.                                      In its filing with the Commission, the
                                                                                                                                                                and order event information for orders
                                                                                                          self-regulatory organization included                 in NMS Securities and OTC Equity
                                                    For the Commission, by the Division of                statements concerning the purpose of,
                                                  Trading and Markets, pursuant to delegated                                                                    Securities, across all markets, from the
                                                  authority.17                                            and basis for, the proposed rule change               time of order inception through routing,
                                                  Eduardo A. Aleman,
                                                                                                          and discussed any comments it received                cancellation, modification, or execution
                                                                                                          on the proposed rule change. The text                 in a single consolidated data source.
                                                  Assistant Secretary.
                                                                                                          of those statements may be examined at                The Plan accomplishes this by creating
                                                  [FR Doc. 2017–11255 Filed 5–31–17; 8:45 am]
                                                                                                          the places specified in Item IV below.                CAT NMS, LLC (the ‘‘Company’’), of
                                                  BILLING CODE 8011–01–P
                                                                                                          The Exchange has prepared summaries,                  which each Participant is a member, to
                                                                                                          set forth in sections A, B, and C below,              operate the CAT.12 Under the CAT NMS
                                                  SECURITIES AND EXCHANGE                                 of the most significant parts of such                 Plan, the Operating Committee of the
                                                  COMMISSION                                              statements.                                           Company (‘‘Operating Committee’’) has
                                                                                                          A. Self-Regulatory Organization’s                     discretion to establish funding for the
                                                  [Release No. 34–80782; File No. SR–
                                                  NYSEMKT–2017–31]                                        Statement of the Purpose of, and the                  Company to operate the CAT, including
                                                                                                          Statutory Basis for, the Proposed Rule                establishing fees that the Participants
                                                  Self-Regulatory Organizations; NYSE                     Change                                                will pay, and establishing fees for
                                                  MKT LLC; Notice of Filing of Proposed                                                                         Industry Members that will be
                                                  Rule Change To Adopt Rule 6900 To                       1. Purpose                                            implemented by the Participants (‘‘CAT
                                                  Establish the Procedures for Resolving                                                                        Fees’’).13 The Participants are required
                                                                                                             Bats BYX Exchange, Inc., Bats BZX
                                                  Potential Disputes Related to CAT                       Exchange, Inc., Bats EDGA Exchange,                      9 See Letter from the Participants to Brent J.
                                                  Fees Charged to Industry Members                        Inc., Bats EDGX Exchange, Inc., BOX                   Fields, Secretary, Commission, dated September 30,
                                                  May 26, 2017.                                           Options Exchange LLC, C2 Options                      2014; and Letter from Participants to Brent J. Fields,
                                                                                                          Exchange, Incorporated, Chicago Board                 Secretary, Commission, dated February 27, 2015.
                                                     Pursuant to Section 19(b)(1) 1 of the                                                                      On December 24, 2015, the Participants submitted
                                                  Securities Exchange Act of 1934 (‘‘Act’’                Options Exchange, Incorporated,                       an amendment to the CAT NMS Plan. See Letter
                                                  or the ‘‘Exchange Act’’) 2 and Rule 19b–                Chicago Stock Exchange, Inc., Financial               from Participants to Brent J. Fields, Secretary,
                                                  4 thereunder,3 notice is hereby given                   Industry Regulatory Authority, Inc.                   Commission, dated December 23, 2015.
                                                                                                                                                                   10 Securities Exchange Act Release No. 77724
                                                  that, on May 16, 2017, NYSE MKT LLC                     (‘‘FINRA’’), Investors’ Exchange LLC,
                                                                                                                                                                (April 27, 2016), 81 FR 30614 (May 17, 2016).
                                                  (the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed                Miami International Securities                           11 Securities Exchange Act Release No. 79318
                                                  with the Securities and Exchange                        Exchange, LLC, MIAX PEARL, LLC,                       (November 15, 2016), 81 FR 84696 (November 23,
                                                  Commission (‘‘SEC’’ or the                              NASDAQ BX, Inc., Nasdaq GEMX, LLC,                    2016) (‘‘Approval Order’’).
                                                  ‘‘Commission’’) the proposed rule                       Nasdaq ISE, LLC, Nasdaq MRX, LLC,5                       12 The Plan also serves as the limited liability

                                                                                                          NASDAQ PHLX LLC, The NASDAQ                           company agreement for the Company.
                                                  change as described in Items I and II                                                                            13 Section 11.1(b) of the CAT NMS Plan. Proposed
                                                  below, which Items have been prepared                   Stock Market LLC, New York Stock                      Rule 6900 would be applicable to member
                                                  by the self-regulatory organization. The                Exchange LLC, NYSE MKT LLC, NYSE                      organizations. The term ‘‘member organization’’ is
                                                  Commission is publishing this notice to                 Arca, Inc. and NYSE National, Inc.6                   defined in Rule 24 (Office Rules) as ‘‘a partnership,
                                                  solicit comments on the proposed rule                   (collectively, the ‘‘Participants’’) filed            corporation or such other entity as the Exchange
                                                                                                                                                                may, by Rule, permit to become a member
                                                  change from interested persons.                         with the Commission, pursuant to                      organization, and which meets the qualifications
                                                                                                          Section 11A of the Exchange Act 7 and                 specified in the Rules.’’ The term ‘‘member
                                                  I. Self-Regulatory Organization’s
                                                                                                          Rule 608 of Regulation NMS                            organization’’ is defined in Rule 2(b)(i) (Equities
                                                  Statement of the Terms of Substance of                                                                        Rules) as [sic] a registered broker or dealer (unless
                                                                                                          thereunder,8 the National Market
                                                  the Proposed Rule Change                                                                                      exempt pursuant to the Securities Exchange Act of
                                                                                                          System Plan Governing the                             1934) (the ‘‘Act’’) that is a member of the Financial
                                                     The Exchange proposes to adopt Rule                  Consolidated Audit Trail (the ‘‘CAT                   Industry Regulatory Authority, Inc. (‘‘FINRA’’) or
                                                  6900 (Consolidated Audit Trail—Fee                                                                            another registered securities exchange. Member
                                                  Dispute Resolutions) to establish the                   and Options Fee Schedule, the Exchange’s CAT
                                                                                                                                                                organizations that transact business with public
                                                  procedures for resolving potential                                                                            customers or conduct business on the Floor of the
                                                                                                          Compliance Rule Series or in the CAT NMS Plan.
                                                                                                                                                                Exchange shall at all times be members of FINRA.
                                                  disputes related to CAT Fees charged to                   5 ISE Gemini, LLC, ISE Mercury, LLC and
                                                                                                                                                                A registered broker or dealer must also be approved
                                                  Industry Members.4 The proposed rule                    International Securities Exchange, LLC have been      by the Exchange and authorized to designate an
                                                                                                          renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC,            associated natural person to effect transactions on
                                                    15 15
                                                                                                          and Nasdaq ISE, LLC, respectively. See Securities     the floor of the Exchange or any facility thereof.
                                                          U.S.C. 78f(b)(5).                               Exchange Act Release Nos. 80248 (March 15, 2017),     This term shall include a natural person so
mstockstill on DSK30JT082PROD with NOTICES




                                                    16 15 U.S.C. 78s(b)(2).                               82 FR 14547 (March 21, 2017); 80326 (March 29,        registered, approved and licensed who directly
                                                    17 17 CFR 200.30–3(a)(12).
                                                                                                          2017), 82 FR 16460 (April 4, 2017); and 80325         effects transactions on the floor of the Exchange or
                                                    1 15 U.S.C.78s (b)(1).                                (March 29, 2017), 82 FR 16445 (April 4, 2017).        any facility thereof.’’ The term ‘‘member
                                                    2 15 U.S.C. 78a.                                        6 National Stock Exchange, Inc. has been renamed
                                                                                                                                                                organization’’ also [sic] includes any registered
                                                    3 17 CFR 240.19b–4.                                   NYSE National, Inc. See Securities Exchange Act       broker or dealer that is a member of FINRA or a
                                                    4 Unless otherwise specified, capitalized terms       Release No. 79902 (January 30, 2017), 82 FR 9258      registered securities exchange, consistent with the
                                                  used in this rule filing are defined as set forth       (February 3, 2017).                                   requirements of section 2(b)(i) of this Rule, which
                                                                                                            7 15 U.S.C. 78k–1.
                                                  herein or in the Consolidated Audit Trail Funding                                                             does not own a trading license and agrees to be
                                                  Fees sections of the Exchange’s Equities Price List       8 17 CFR 242.608.                                                                               Continued




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Document Created: 2017-06-01 03:04:47
Document Modified: 2017-06-01 03:04:47
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 25378 

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