82 FR 25429 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Eliminate Requirements That Will Be Duplicative of CAT
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 104 (June 1, 2017)
Federal Register Volume 82, Issue 104 (June 1, 2017)
| Page Range | 25429-25433 | |
| FR Document | 2017-11373 |
[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)] [Notices] [Pages 25429-25433] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11373] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80797; File No. SR-CBOE-2017-041] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Eliminate Requirements That Will Be Duplicative of CAT May 26, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on May 15, 2017, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify requirements for the collection of information that is duplicative of information intended to be collected for the consolidated audit trail (``CAT'') adopted pursuant to the National Market System Plan Governing the Consolidated Audit Trail (the ``CAT NMS Plan'' or ``Plan'').\3\ The Exchange will announce the implementation date of the proposed rule change and effective date of the retirement of any related systems by Regulatory Circular that will be published once the options exchanges determine the thresholds for accuracy and reliability described below have been met and that the Plan Processor for CAT is sufficiently meeting all of its obligations under the CAT NMS Plan. --------------------------------------------------------------------------- \3\ Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth herein, or in the CAT Compliance Rule Series or in the CAT NMS Plan. --------------------------------------------------------------------------- The text of the proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and 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. [[Page 25430]] (``FINRA''), Investors' Exchange LLC, Miami International Securities Exchange, LLC, MIAX PEARL, LLC, NASDAQ BX, Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC,\4\ NASDAQ PHLX LLC, The NASDAQ Stock Market LLC, New York Stock Exchange LLC, NYSE MKT LLC, NYSE Arca, Inc. and NYSE National, Inc.\5\ (collectively, the ``Participants'') filed with the Commission, pursuant to Section 11A of the Exchange Act \6\ and Rule 608 of Regulation NMS thereunder,\7\ the CAT NMS Plan.\8\ 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,\9\ and approved by the Commission, as modified, on November 15, 2016.\10\ The Plan is designed to create, implement and maintain a CAT that would capture customer and order event information for orders in NMS Securities and OTC Equity Securities, across all markets, from the time of order inception through routing, cancellation, modification, or execution in a single consolidated data source. Pursuant to Appendix C of the CAT NMS Plan, each Participant is required to conduct analyses of which of its existing trade and order data rules and systems require the collection of information that is duplicative of information collected for the CAT.\11\ In addition, among other things, Section C.9 of Appendix C to the Plan, as modified by the Commission, requires each Participant to ``file with the SEC the relevant rule change filing to eliminate or modify its duplicative rules within six (6) months of the SEC's approval of the CAT NMS Plan.'' \12\ The Plan notes that ``the elimination of such rules and the retirement of such systems [will] be effective at such time as CAT Data meets minimum standards of accuracy and reliability.'' \13\ --------------------------------------------------------------------------- \4\ 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 Rel. No. 80248 (Mar. 15, 2017), 82 FR 14547 (Mar. 21, 2017); Securities Exchange Act Rel. No. 80326 (Mar. 29, 2017), 82 FR 16460 (Apr. 4, 2017); and Securities Exchange Act Rel. No. 80325 (Mar. 29, 2017), 82 FR 16445 (Apr. 4, 2017). \5\ National Stock Exchange, Inc. has been renamed NYSE National, Inc. See Securities Exchange Act Rel. No. 79902 (Jan. 30, 2017), 82 FR 9258 (Feb. 3, 2017). \6\ 15 U.S.C. 78k-1. \7\ 17 CFR 242.608. \8\ 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. \9\ Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614 (May 17, 2016). \10\ Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (``Approval Order''). \11\ Appendix C of CAT NMS Plan, Approval Order at 85010. \12\ Id. \13\ Id. --------------------------------------------------------------------------- After conducting its analysis of its rules in accordance with the CAT NMS Plan, the Exchange determined Rule 6.24 includes references to COATS, which will be retired in accordance with the proposed timeline discussed below, and Rules 6.24(c), 8.9(b) and 15.7 require the reporting of information intended to be collected by the CAT. Therefore, the Exchange believes those provisions will no longer be necessary once the CAT is operational and proposes to modify those Rules as described below. Additionally, the Exchange describes below additional reporting requirements that it may reduce for which no rule changes are necessary. These changes will be implemented in accordance with the timeline described below. (1) COATS The options exchanges utilize consolidated options audit trail system (``COATS'') to collect and review data regarding options orders, quotes and transactions. The Participants have provided COATS technical specifications to the Plan Processor for the CAT for use in developing the Technical Specifications for the CAT, and the Participants are working with the Plan Processor to include the necessary COATS data elements in the CAT Technical Specifications. Accordingly, although the Technical Specifications for the CAT have not yet been finalized, the Exchange and the other options exchanges propose to eliminate COATS in accordance with the proposed timeline discussed below. The Exchange adopted certain provisions of Rule 6.24 to implement certain reporting requirements related to COATS.\14\ Rule 6.24(a) states the Exchange has undertaken with the options exchanges to develop COATS to provide an accurate, time-sequenced record of electronic and other orders, quotations, and transactions in certain option classes listed on the Exchange. CBOE proposes to delete this provision. --------------------------------------------------------------------------- \14\ COATS was developed to comply with an order of the Commission requiring CBOE, in coordination with other exchanges, to ``design and implement'' a consolidated audit trail to ``enable the options exchanges to reconstruct markets promptly, effectively surveil them and enforce order handling, firm quote, trade reporting and other rules.'' See Section IV.B.e.(v) of the Commission's Order Instituting Public Administrative Proceedings Pursuant to Sections 19(h)(1) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions (the ``Order''). See Securities Exchange Act Release No. 43268 (September 11, 2000) and Administrative Proceeding File No. 3-10282. As noted, the Plan is designed to create, implement and maintain a CAT that would capture customer and order event information for orders in NMS Securities and OTC Equity Securities, across all markets, from the time of order inception through routing, cancellation, modification, or execution in a single consolidated data source. CBOE has already adopted rules to enforce compliance by its Industry Members, as applicable, with the provisions of the Plan. See CBOE Chapter VI, Section F. Once the CAT is fully operational, it will be appropriate to delete certain provisions of CBOE rules implemented to comply with the Order as duplicative of the CAT. Accordingly, the Exchange believes that it would continue to be in compliance with the requirements of the Order once the CAT is fully operational and the COATS rule is modified. --------------------------------------------------------------------------- Rule 6.24(c) requires a Trading Permit Holder transmitting from the floor a report of the execution of an order to record the time at which a report of such execution is received by such Trading Permit Holder. CAT will require Trading Permit Holders to record the time at which they report an execution.\15\ Therefore, this rule provision is duplicative of CAT requirements, and the Exchange proposes to delete it. --------------------------------------------------------------------------- \15\ See Chapter VI, Section F. --------------------------------------------------------------------------- Interpretations and Policies .01 and .03 through .06 state certain forms and functionality must comply with the requirements of COATS, and that the Exchange will maintain data for orders exempt from systematization requirements of Rule 6.24 in the same format as COATS data is maintained. As COATS will be retired, and data will be collected in a format that complies with the requirements of CAT, the proposed rule change replaces the references to COATS with references to CAT, as well as makes other nonsubstantive changes to conform the language throughout. (2) Market-Maker Equity Order Reports Rule 8.9(b) \16\ requires Market-Makers, upon request of the Exchange and in the prescribed form, report to the Exchange every order entered by the Market-Maker for the purchase or sale of (i) a security underlying options traded on the Exchange, or (ii) a security convertible into or exchangeable for such underlying security, as well as opening and closing positions in all such securities held in each account reported pursuant to Rule 8.9(a). The report pertaining to orders must include the terms of each order, identification of the brokerage firms through which the [[Page 25431]] orders were entered, the times of entry or cancellation, the times report of execution were received and, if all or part of the order was executed, the quantity and execution price. CAT will require Market- Makers to report order information for such securities. Therefore, this rule provision as it relates to order reports is duplicative of CAT requirements, and the Exchange proposes to delete it. CAT does not require reporting of positions, so the Exchange will maintain the position reporting requirement in Rule 8.9(b). The Exchange also proposes a conforming change to the rule name and Interpretation and Policy .07. --------------------------------------------------------------------------- \16\ The Exchange recently submitted a rule filing to amend Rule 8.9(b), which was filed for immediate effectiveness. See SR-CBOE- 2017-042. This proposed rule change reflects the amended rule text in that filing. --------------------------------------------------------------------------- (3) EBS Rule 15.7 is the Exchange's rule regarding the automated submission of specific trading data to the Exchange upon request using the Electronic Blue Sheet (``EBS'') system. Rule 15.7 requires a Trading Permit Holder to submit the trade data elements specified in the Rule in such automated format as may be prescribed by the Exchange from time to time, in regard to such transaction or transactions that are the subject of a particular request for information made by the Exchange. The Rule sets forth in paragraphs (a) and (b) the data elements required if the transaction was a proprietary transaction or if it was effected for a customer account, respectively. Paragraph (c) provides a Trading Permit Holder must submit such other information as may from time to time be required. Paragraph (d) permits the Exchange to grant exceptions from these requirements in such cases and for such time periods as it deems appropriate. The Exchange proposes to amend Rule 15.7 to state it will request information under the Rule only if the information is not available in the CAT because, for example, the transactions in question occurred before the firm was reporting information to the CAT or involved securities that are not reportable to the CAT. In essence, under the proposed rule change, the Exchange will make requests under Rule 15.7 if and only if the information is not otherwise available through the CAT.\17\ --------------------------------------------------------------------------- \17\ The proposed rule change also capitalizes the first word of paragraph (a). --------------------------------------------------------------------------- Once broker-dealer reporting to the CAT has begun, the CAT will contain the data the Participants would otherwise have requested via the EBS system for purposes of NMS Securities and OTC Equity Securities. Consequently, the Exchange will not need to use the EBS system or request information pursuant to Rule 15.7 for NMS Securities or OTC Equity Securities for time periods after CAT reporting has begun if the appropriate accuracy and reliability thresholds are achieved, including an acceptable accuracy rate for customer and account information. However, Rule 15.7 cannot be completely eliminated immediately upon the CAT achieving the appropriate thresholds because Exchange staff may still need to request information pursuant to Rule 15.7 for trading activity occurring before a member was reporting to the CAT.\18\ In addition, Rule 15.7 applies to information regarding transactions involving securities that will not be reportable to the CAT, such as fixed-income securities; thus, the rule must remain in effect with respect to those transactions indefinitely or until those transactions are captured in the CAT. --------------------------------------------------------------------------- \18\ Firms are required to maintain the trade information for pre-CAT transactions in equities and options pursuant to applicable rules, such as books and records retention requirements, for the relevant time period, which is generally three or six years depending upon the record. See 17 CFR 240.17a-3(a), 240.17a-4. --------------------------------------------------------------------------- (4) Other Reports Various other CBOE Rules require Trading Permit Holders to report information to the Exchange upon request.\19\ While the Exchange believes it is necessary to retain these Rules to ensure it has access to the necessary data to perform its regulatory duties and meet its surveillance obligations, it expects it will need to make fewer information requests pursuant to these Rule once Trading Permit Holders begin reporting to the CAT and accuracy and reliability standards are met. --------------------------------------------------------------------------- \19\ See, e.g., Rule 17.2, Interpretation and Policy .04. --------------------------------------------------------------------------- In connection with these Rules requiring Trading Permit Holders to report information to the Exchange upon request, Trading Permit Holders must currently submit to the Exchange stock transaction information for each Qualified Contingent Cross order executed at CBOE. CAT will require Trading Permit Holders to report stock transaction information. Therefore, the Exchange intends to eliminate this reporting requirement in accordance with the proposed timeline below. (5) Timeline for Elimination of Duplicative Rules The CAT NMS Plan states that the elimination of rules that are duplicative of the requirements of the CAT and the retirement of the related systems should be effective at such time as CAT Data meets minimum standards of accuracy and reliability.\20\ As discussed in more detail below, the Exchange believes the Rule provisions and related systems described above may be retired at a date after all Industry Members are reporting to the CAT when the proposed error rate thresholds have been met, and the Exchange has determined that its usage of the CAT Data has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow the Exchange to continue to meet its surveillance obligations, and confirmed that the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. --------------------------------------------------------------------------- \20\ Id. [sic] --------------------------------------------------------------------------- The Exchange believes the proposed rule changes should not be effective until all Participants and Industry Members that report data pursuant to the Rules described above are reporting comparable data to the CAT. In this way, the Exchange will continue to have access to the necessary data to perform its regulatory duties. The CAT NMS Plan requires that a rule filing to eliminate a duplicative rule address whether ``the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.'' \21\ The Exchange believes COATS should not be retired until all Participants and Industry Members that report data to COATS are reporting comparable data to the CAT. While the early submission of options data to the CAT by Small Industry Members could expedite the retirement of COATS, the Exchange believes that it premature [sic] to consider such a change and that additional analysis would be necessary to determine whether such early reporting by Small Industry Members would be feasible. --------------------------------------------------------------------------- \21\ Id. --------------------------------------------------------------------------- The CAT NMS Plan requires that this rule filing address ``whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.'' \22\ The Exchange believes that a single cut-over from the reporting requirements described above to CAT is highly preferable to a firm-by-firm approach and is not proposing to exempt members from such reporting requirements on a firm-by-firm basis. The Exchange believes that providing [[Page 25432]] such individual exemptions to Industry Members would be inefficient, more costly, and less reliable than the single cut-over. Providing individual exemptions would require the options exchanges to create, for a brief temporary period, a cross-system regulatory function and to integrate data from reports received pursuant to the above requirements and the CAT to avoid creating any regulatory gaps as a result of such exemptions. Such a function would be costly to create and would give rise to a greater likelihood of data errors or other issues. Given the limited time in which such exemptions would be necessary, the Exchange does not believe that such exemptions would be an appropriate use of limited resources. --------------------------------------------------------------------------- \22\ Id. --------------------------------------------------------------------------- The CAT NMS Plan also requires that a rule filing to eliminate a duplicative rule to provide ``specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.'' \23\ The Exchange believes that it is critical that the CAT Data be sufficiently accurate and reliable for the Exchange to perform the regulatory functions that it now performs using the information it receives pursuant to the reporting requirements described above. Accordingly, the Exchange believes that the CAT Data should meet specific quantitative error rates, as well as certain qualitative requirements. --------------------------------------------------------------------------- \23\ Id. --------------------------------------------------------------------------- The Exchange believes (and the other options exchanges with respect to COATS and EBS) believe that, before reporting requirements may be modified or eliminated, as applicable, and related systems may be retired, the CAT would need to achieve a sustained error rate for a period of at least 180 days of 5% or lower measured on a pre-correction or as-submitted basis, and 2% or lower on a post-correction basis (measured at T+5).\24\ The Exchange proposes to measure the 5% pre- correction and 2% post-correction thresholds by averaging the error rate across the period, not require a 5% pre-correction and 2% post- correction maximum each day for 180 consecutive days. The Exchange believes that measuring each of the thresholds over the course of 180 days will ensure that the CAT consistently meets minimum accuracy and reliability thresholds while also ensuring that single-day measurements do not unduly affect the overall measurements. The Exchange proposes to measure the appropriate error rates in the aggregate, rather than firm- by-firm. In addition, with respect to COATS, the Exchange proposes to measure the error rates for options only, not equity securities, as only options are subject to COATS. The 2% and 5% error rates are in line with the proposed retirement threshold for FINRA's Order Audit Trail System (``OATS''). --------------------------------------------------------------------------- \24\ The Plan requires that the Plan Processor must ensure that regulators have access to corrected and linked order and Customer data by 8:00 a.m. Eastern Time on T+5. See CAT NMS Plan, at C-15. --------------------------------------------------------------------------- In addition to these minimum error rates before reporting requirements may be modified or eliminated, as applicable, and related systems may be retired, the Exchange believes that during the minimum 180-day period during which the thresholds are calculated, the Exchange's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow the Exchange to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. The Exchange believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately. If the Commission approves the proposed rule change, the Exchange will announce the date for modification or elimination, as applicable, of reporting requirements and retirement of related systems and the implementation date of the proposed rule change via Regulatory Circular that will be published once the Exchange (and other options exchanges with respect to COATS and EBS) determines that the thresholds for accuracy and reliability described above have been met and that the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b)(5) of the Exchange Act,\25\ which requires, among other things, that Exchange 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 dealer. The Exchange believes that this proposal is consistent with the Exchange Act because it fulfills the obligation in the CAT NMS Plan for the Exchange to submit a proposed rule change to eliminate or modify duplicative rules. 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.'' \26\ As this proposal implements the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act. --------------------------------------------------------------------------- \25\ 15 U.S.C. 78f(b)(5). \26\ Approval Order at 84697. --------------------------------------------------------------------------- Moreover, the purpose of the proposed rule change is to amend rules that require the submission of duplicative data to the Exchange. The elimination of such duplicative requirements will reduce unnecessary costs and other compliance burdens for the Exchange and its Trading Permit Holders, and therefore, will enhance the efficiency of the securities markets. Furthermore, the Exchange believes that the approach set forth in the proposed rule change strikes the appropriate balance between ensuring that the Exchange is able to continue to fulfill its statutory obligation to protect investors and the public interest by ensuring its surveillance of market activity remains accurate and effective while also establishing a reasonable timeframe for elimination or modification of its rules that will be rendered duplicative after implementation of the CAT. B. Self-Regulatory Organization's Statement on Burden on Competition Section 6(b)(8) of the Exchange Act \27\ requires that Exchange Rules not impose any burden on competition that is not necessary or appropriate. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act. The Exchange notes that the proposed rule change implements the requirements of the CAT NMS Plan approved by the Commission regarding the elimination of rules and systems that are duplicative the CAT, and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan. Similarly, all exchanges and FINRA are [[Page 25433]] proposing the elimination of reporting requirements related to COATS and EBS, as well as other duplicative rules, 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 self-regulatory organizations and/or their members. --------------------------------------------------------------------------- \27\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Although written comments on the proposed rule change were not solicited, the Exchange received comments from two commenters, the Financial Information Forum (``FIF'') and the Securities Industry and Financial Markets Association (``SIFMA''), regarding the retirement of systems related to the CAT.\28\ In its comment letters, with regard to the retirement of duplicative systems more generally, FIF recommended that the Participants continue the effort to incorporate current reporting obligations into the CAT in order to replace existing reportable systems with the CAT. In addition, FIF further recommended that, once a CAT Reporter achieved satisfactory reporting data quality, the CAT Reporter should be exempt from reporting to any duplicative reporting systems. FIF believed that these recommendations ``would serve both an underlying regulatory objective of more immediate and accurate access to data as well as an industry objective of reduced costs and burdens of regulatory oversight.'' \29\ In its comments about EBS specifically, FIF stated that the retirement of the EBS requirements should be a high priority, and that the CAT should be designed to include the requisite data elements to permit the rapid retirement of EBS.\30\ Similarly, SIFMA stated that ``the establishment of the CAT must be accompanied by the prompt elimination of duplicative systems,'' and ``recommend[ed] that the initial technical specifications be designed to facilitate the immediate retirement of . . . duplicative reporting systems.'' \31\ --------------------------------------------------------------------------- \28\ Letter from William H. Hebert, FIF, to Participants re: Milestone for Participants' rule change filings to eliminate/modify duplicative rules (Apr. 12, 2017) (``FIF Letter''); Letter from William H. Hebert, FIF, to Brent J. Fields, SEC re: Milestone for Participants' rule change filings to eliminate/modify duplicative rules (Apr. 12, 2017); and Letter from Kenneth E. Bentsen, Jr., SIFMA, to Participants re: Selection of Thesys as CAT Processor (Apr. 4, 2017) (``SIFMA Letter'') at 2. \29\ FIF Letter at 2. \30\ FIF Letter at 2. \31\ SIFMA Letter at 2. --------------------------------------------------------------------------- As discussed above, the Exchange agrees with the commenters that the reporting requirements proposed to be modified or eliminated should be replaced by the CAT reporting requirements as soon as accurate and reliable CAT Data is available. To this end, the Exchange anticipates that the CAT will be designed to collect the data necessary to permit the modification or elimination, as applicable, of these reporting requirements and the retirement of related systems. However, as discussed above, the Exchange disagrees with the recommendation to provide individual exemptions to those CAT Reporters who obtain satisfactory data reporting quality. 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 Exchange consents, the Commission will: A. By order approve or disapprove such 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-CBOE-2017-041 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-CBOE-2017-041. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2017-041 and should be submitted on or before June 22, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\32\ --------------------------------------------------------------------------- \32\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-11373 Filed 5-31-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices 25429
reporting requirements should be submission, all subsequent solicit comments on the proposed rule
replaced by the CAT reporting amendments, all written statements change from interested persons.
requirements as soon as accurate and with respect to the proposed rule
I. Self-Regulatory Organization’s
reliable CAT Data is available. To this change that are filed with the
Statement of the Terms of Substance of
end, FINRA anticipates that the CAT Commission, and all written
the Proposed Rule Change
will be designed to collect the data communications relating to the
necessary to permit the retirement of proposed rule change between the The Exchange proposes to modify
OATS. As discussed above, FINRA Commission and any person, other than requirements for the collection of
disagrees with the recommendation to those that may be withheld from the information that is duplicative of
provide individual exemptions to those public in accordance with the information intended to be collected for
CAT Reporters who obtain satisfactory provisions of 5 U.S.C. 552, will be the consolidated audit trail (‘‘CAT’’)
data reporting quality; however, FINRA available for Web site viewing and adopted pursuant to the National
supports amendments to the CAT NMS printing in the Commission’s Public Market System Plan Governing the
Plan that would accelerate reporting for Reference Room, 100 F Street NE., Consolidated Audit Trail (the ‘‘CAT
Small Industry Members that are Washington, DC 20549, on official NMS Plan’’ or ‘‘Plan’’).3 The Exchange
currently reporting to OATS to facilitate business days between the hours of will announce the implementation date
the retirement of OATS. 10:00 a.m. and 3:00 p.m. Copies of such of the proposed rule change and
filing also will be available for effective date of the retirement of any
III. Date of Effectiveness of the related systems by Regulatory Circular
inspection and copying at the principal
Proposed Rule Change and Timing for that will be published once the options
office of FINRA. All comments received
Commission Action exchanges determine the thresholds for
will be posted without change; the
Within 45 days of the date of Commission does not edit personal accuracy and reliability described below
publication of this notice in the Federal identifying information from have been met and that the Plan
Register or within such longer period (i) submissions. You should submit only Processor for CAT is sufficiently
as the Commission may designate up to information that you wish to make meeting all of its obligations under the
90 days of such date if it finds such available publicly. All submissions CAT NMS Plan.
longer period to be appropriate and should refer to File Number SR–FINRA– The text of the proposed rule change
publishes its reasons for so finding or 2017–013 and should be submitted on is available on the Exchange’s Web site
(ii) as to which the self-regulatory or before June 22, 2017. (http://www.cboe.com/AboutCBOE/
organization consents, the Commission CBOELegalRegulatoryHome.aspx), at
For the Commission, by the Division of
will: the Exchange’s Office of the Secretary,
Trading and Markets, pursuant to delegated
(A) By order approve or disapprove authority.42 and at the Commission’s Public
such proposed rule change, or Reference Room.
Eduardo A. Aleman,
(B) institute proceedings to determine
whether the proposed rule change Assistant Secretary. II. Self-Regulatory Organization’s
should be disapproved. [FR Doc. 2017–11359 Filed 5–31–17; 8:45 am] Statement of the Purpose of, and
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Change
Interested persons are invited to In its filing with the Commission, the
submit written data, views, and SECURITIES AND EXCHANGE Exchange included statements
arguments concerning the foregoing, COMMISSION concerning the purpose of and basis for
including whether the proposed rule the proposed rule change and discussed
[Release No. 34–80797; File No. SR–CBOE–
change is consistent with the Act. 2017–041] any comments it received on the
Comments may be submitted by any of proposed rule change. The text of these
the following methods: Self-Regulatory Organizations; statements may be examined at the
Electronic Comments Chicago Board Options Exchange, places specified in Item IV below. The
Incorporated; Notice of Filing of Exchange has prepared summaries, set
• Use the Commission’s Internet Proposed Rule Change To Eliminate forth in sections A, B, and C below, of
comment form (http://www.sec.gov/ Requirements That Will Be Duplicative the most significant aspects of such
rules/sro.shtml); or of CAT statements.
• Send an email to rule-comments@
sec.gov. Please include File Number SR– May 26, 2017. A. Self-Regulatory Organization’s
FINRA–2017–013 on the subject line. Pursuant to Section 19(b)(1) of the Statement of the Purpose of, and
Securities Exchange Act of 1934 (the Statutory Basis for, the Proposed Rule
Paper Comments Change
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate notice is hereby given that on May 15, 1. Purpose
to Secretary, Securities and Exchange 2017, Chicago Board Options Exchange,
Commission, 100 F Street NE., Bats BYX Exchange, Inc., Bats BZX
Incorporated (the ‘‘Exchange’’ or
Washington, DC 20549–1090. Exchange, Inc., Bats EDGA Exchange,
‘‘CBOE’’) filed with the Securities and
All submissions should refer to File Inc., Bats EDGX Exchange, Inc., BOX
Exchange Commission (the
Number SR–FINRA–2017–013. This file Options Exchange LLC, C2 Options
‘‘Commission’’) the proposed rule
number should be included on the Exchange, Incorporated, Chicago Board
change as described in Items I, II, and
mstockstill on DSK30JT082PROD with NOTICES
subject line if email is used. To help the Options Exchange, Incorporated,
III below, which Items have been
Commission process and review your Chicago Stock Exchange, Inc., Financial
prepared by the Exchange. The
comments more efficiently, please use Industry Regulatory Authority, Inc.
Commission is publishing this notice to
only one method. The Commission will 3 Unless otherwise specified, capitalized terms
post all comments on the Commission’s 42 17 CFR 200.30–3(a)(12). used in this rule filing are defined as set forth
Internet Web site (http://www.sec.gov/ 1 15 U.S.C. 78s(b)(1).
herein, or in the CAT Compliance Rule Series or in
rules/sro.shtml). Copies of the 2 17 CFR 240.19b–4. the CAT NMS Plan.
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![25430 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices
(‘‘FINRA’’), Investors’ Exchange LLC, approval of the CAT NMS Plan.’’ 12 The Exchange has undertaken with the
Miami International Securities Plan notes that ‘‘the elimination of such options exchanges to develop COATS to
Exchange, LLC, MIAX PEARL, LLC, rules and the retirement of such systems provide an accurate, time-sequenced
NASDAQ BX, Inc., Nasdaq GEMX, LLC, [will] be effective at such time as CAT record of electronic and other orders,
Nasdaq ISE, LLC, Nasdaq MRX, LLC,4 Data meets minimum standards of quotations, and transactions in certain
NASDAQ PHLX LLC, The NASDAQ accuracy and reliability.’’ 13 option classes listed on the Exchange.
Stock Market LLC, New York Stock After conducting its analysis of its CBOE proposes to delete this provision.
Exchange LLC, NYSE MKT LLC, NYSE rules in accordance with the CAT NMS Rule 6.24(c) requires a Trading Permit
Arca, Inc. and NYSE National, Inc.5 Plan, the Exchange determined Rule Holder transmitting from the floor a
(collectively, the ‘‘Participants’’) filed 6.24 includes references to COATS, report of the execution of an order to
with the Commission, pursuant to which will be retired in accordance record the time at which a report of
Section 11A of the Exchange Act 6 and with the proposed timeline discussed such execution is received by such
Rule 608 of Regulation NMS below, and Rules 6.24(c), 8.9(b) and 15.7 Trading Permit Holder. CAT will
thereunder,7 the CAT NMS Plan.8 The require the reporting of information require Trading Permit Holders to
Participants filed the Plan to comply intended to be collected by the CAT. record the time at which they report an
with Rule 613 of Regulation NMS under Therefore, the Exchange believes those execution.15 Therefore, this rule
the Exchange Act. The Plan was provisions will no longer be necessary provision is duplicative of CAT
published for comment in the Federal once the CAT is operational and requirements, and the Exchange
Register on May 17, 2016,9 and proposes to modify those Rules as proposes to delete it.
approved by the Commission, as described below. Additionally, the Interpretations and Policies .01 and
modified, on November 15, 2016.10 The Exchange describes below additional .03 through .06 state certain forms and
Plan is designed to create, implement reporting requirements that it may functionality must comply with the
and maintain a CAT that would capture reduce for which no rule changes are requirements of COATS, and that the
customer and order event information necessary. These changes will be Exchange will maintain data for orders
for orders in NMS Securities and OTC implemented in accordance with the exempt from systematization
Equity Securities, across all markets, timeline described below. requirements of Rule 6.24 in the same
from the time of order inception through format as COATS data is maintained. As
routing, cancellation, modification, or (1) COATS
COATS will be retired, and data will be
execution in a single consolidated data The options exchanges utilize collected in a format that complies with
source. Pursuant to Appendix C of the consolidated options audit trail system the requirements of CAT, the proposed
CAT NMS Plan, each Participant is (‘‘COATS’’) to collect and review data rule change replaces the references to
required to conduct analyses of which regarding options orders, quotes and COATS with references to CAT, as well
of its existing trade and order data rules transactions. The Participants have as makes other nonsubstantive changes
and systems require the collection of provided COATS technical to conform the language throughout.
information that is duplicative of specifications to the Plan Processor for
information collected for the CAT.11 In the CAT for use in developing the (2) Market-Maker Equity Order Reports
addition, among other things, Section Technical Specifications for the CAT, Rule 8.9(b) 16 requires Market-Makers,
C.9 of Appendix C to the Plan, as and the Participants are working with upon request of the Exchange and in the
modified by the Commission, requires the Plan Processor to include the prescribed form, report to the Exchange
each Participant to ‘‘file with the SEC necessary COATS data elements in the every order entered by the Market-
the relevant rule change filing to CAT Technical Specifications. Maker for the purchase or sale of (i) a
eliminate or modify its duplicative rules Accordingly, although the Technical security underlying options traded on
within six (6) months of the SEC’s Specifications for the CAT have not yet the Exchange, or (ii) a security
4 ISE Gemini, LLC, ISE Mercury, LLC and
been finalized, the Exchange and the convertible into or exchangeable for
International Securities Exchange, LLC have been
other options exchanges propose to such underlying security, as well as
renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC, eliminate COATS in accordance with opening and closing positions in all
and Nasdaq ISE, LLC, respectively. See Securities the proposed timeline discussed below. such securities held in each account
Exchange Act Rel. No. 80248 (Mar. 15, 2017), 82 FR The Exchange adopted certain reported pursuant to Rule 8.9(a). The
14547 (Mar. 21, 2017); Securities Exchange Act Rel.
No. 80326 (Mar. 29, 2017), 82 FR 16460 (Apr. 4,
provisions of Rule 6.24 to implement report pertaining to orders must include
2017); and Securities Exchange Act Rel. No. 80325 certain reporting requirements related to the terms of each order, identification of
(Mar. 29, 2017), 82 FR 16445 (Apr. 4, 2017). COATS.14 Rule 6.24(a) states the the brokerage firms through which the
5 National Stock Exchange, Inc. has been renamed
NYSE National, Inc. See Securities Exchange Act 12 Id. Equity Securities, across all markets, from the time
Rel. No. 79902 (Jan. 30, 2017), 82 FR 9258 (Feb. 3, 13 Id. of order inception through routing, cancellation,
2017). 14 COATS was developed to comply with an order modification, or execution in a single consolidated
6 15 U.S.C. 78k–1.
of the Commission requiring CBOE, in coordination data source. CBOE has already adopted rules to
7 17 CFR 242.608.
with other exchanges, to ‘‘design and implement’’ enforce compliance by its Industry Members, as
8 See Letter from the Participants to Brent J. applicable, with the provisions of the Plan. See
a consolidated audit trail to ‘‘enable the options
Fields, Secretary, Commission, dated September 30, exchanges to reconstruct markets promptly, CBOE Chapter VI, Section F. Once the CAT is fully
2014; and Letter from Participants to Brent J. Fields, effectively surveil them and enforce order handling, operational, it will be appropriate to delete certain
Secretary, Commission, dated February 27, 2015. firm quote, trade reporting and other rules.’’ See provisions of CBOE rules implemented to comply
On December 24, 2015, the Participants submitted Section IV.B.e.(v) of the Commission’s Order with the Order as duplicative of the CAT.
an amendment to the CAT NMS Plan. See Letter Instituting Public Administrative Proceedings Accordingly, the Exchange believes that it would
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from Participants to Brent J. Fields, Secretary, Pursuant to Sections 19(h)(1) of the Securities continue to be in compliance with the requirements
Commission, dated December 23, 2015. Exchange Act of 1934, Making Findings and of the Order once the CAT is fully operational and
9 Securities Exchange Act Rel. No. 77724 (Apr. the COATS rule is modified.
Imposing Remedial Sanctions (the ‘‘Order’’). See
27, 2016), 81 FR 30614 (May 17, 2016). Securities Exchange Act Release No. 43268 15 See Chapter VI, Section F.
10 Securities Exchange Act Rel. No. 79318 (Nov. 16 The Exchange recently submitted a rule filing
(September 11, 2000) and Administrative
15, 2016), 81 FR 84696 (Nov. 23, 2016) (‘‘Approval Proceeding File No. 3–10282. As noted, the Plan is to amend Rule 8.9(b), which was filed for
Order’’). designed to create, implement and maintain a CAT immediate effectiveness. See SR–CBOE–2017–042.
11 Appendix C of CAT NMS Plan, Approval Order that would capture customer and order event This proposed rule change reflects the amended
at 85010. information for orders in NMS Securities and OTC rule text in that filing.
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orders were entered, the times of entry NMS Securities or OTC Equity detail below, the Exchange believes the
or cancellation, the times report of Securities for time periods after CAT Rule provisions and related systems
execution were received and, if all or reporting has begun if the appropriate described above may be retired at a date
part of the order was executed, the accuracy and reliability thresholds are after all Industry Members are reporting
quantity and execution price. CAT will achieved, including an acceptable to the CAT when the proposed error rate
require Market-Makers to report order accuracy rate for customer and account thresholds have been met, and the
information for such securities. information. However, Rule 15.7 cannot Exchange has determined that its usage
Therefore, this rule provision as it be completely eliminated immediately of the CAT Data has not revealed
relates to order reports is duplicative of upon the CAT achieving the appropriate material issues that have not been
CAT requirements, and the Exchange thresholds because Exchange staff may corrected, confirmed that the CAT
proposes to delete it. CAT does not still need to request information includes all data necessary to allow the
require reporting of positions, so the pursuant to Rule 15.7 for trading Exchange to continue to meet its
Exchange will maintain the position activity occurring before a member was surveillance obligations, and confirmed
reporting requirement in Rule 8.9(b). reporting to the CAT.18 In addition, Rule that the Plan Processor is sufficiently
The Exchange also proposes a 15.7 applies to information regarding meeting all of its obligations under the
conforming change to the rule name and transactions involving securities that CAT NMS Plan.
Interpretation and Policy .07. will not be reportable to the CAT, such The Exchange believes the proposed
as fixed-income securities; thus, the rule rule changes should not be effective
(3) EBS until all Participants and Industry
must remain in effect with respect to
Rule 15.7 is the Exchange’s rule those transactions indefinitely or until Members that report data pursuant to
regarding the automated submission of those transactions are captured in the the Rules described above are reporting
specific trading data to the Exchange CAT. comparable data to the CAT. In this
upon request using the Electronic Blue way, the Exchange will continue to have
Sheet (‘‘EBS’’) system. Rule 15.7 (4) Other Reports access to the necessary data to perform
requires a Trading Permit Holder to Various other CBOE Rules require its regulatory duties.
submit the trade data elements specified Trading Permit Holders to report The CAT NMS Plan requires that a
in the Rule in such automated format as information to the Exchange upon rule filing to eliminate a duplicative
may be prescribed by the Exchange from request.19 While the Exchange believes rule address whether ‘‘the availability of
time to time, in regard to such it is necessary to retain these Rules to certain data from Small Industry
transaction or transactions that are the ensure it has access to the necessary Members two years after the Effective
subject of a particular request for data to perform its regulatory duties and Date would facilitate a more expeditious
information made by the Exchange. The meet its surveillance obligations, it retirement of duplicative systems.’’ 21
Rule sets forth in paragraphs (a) and (b) expects it will need to make fewer The Exchange believes COATS should
the data elements required if the information requests pursuant to these not be retired until all Participants and
transaction was a proprietary Rule once Trading Permit Holders begin Industry Members that report data to
transaction or if it was effected for a reporting to the CAT and accuracy and COATS are reporting comparable data to
customer account, respectively. reliability standards are met. the CAT. While the early submission of
Paragraph (c) provides a Trading Permit In connection with these Rules options data to the CAT by Small
Holder must submit such other requiring Trading Permit Holders to Industry Members could expedite the
information as may from time to time be report information to the Exchange retirement of COATS, the Exchange
required. Paragraph (d) permits the upon request, Trading Permit Holders believes that it premature [sic] to
Exchange to grant exceptions from these must currently submit to the Exchange consider such a change and that
requirements in such cases and for such stock transaction information for each additional analysis would be necessary
time periods as it deems appropriate. Qualified Contingent Cross order to determine whether such early
The Exchange proposes to amend executed at CBOE. CAT will require reporting by Small Industry Members
Rule 15.7 to state it will request Trading Permit Holders to report stock would be feasible.
information under the Rule only if the transaction information. Therefore, the The CAT NMS Plan requires that this
information is not available in the CAT Exchange intends to eliminate this rule filing address ‘‘whether individual
because, for example, the transactions in reporting requirement in accordance Industry Members can be exempted
question occurred before the firm was with the proposed timeline below. from reporting to duplicative systems
reporting information to the CAT or (5) Timeline for Elimination of once their CAT reporting meets
involved securities that are not Duplicative Rules specified accuracy and reliability
reportable to the CAT. In essence, under standards, including, but not limited to,
The CAT NMS Plan states that the ways in which establishing cross-system
the proposed rule change, the Exchange
elimination of rules that are duplicative regulatory functionality or integrating
will make requests under Rule 15.7 if
of the requirements of the CAT and the data from existing systems and the CAT
and only if the information is not
retirement of the related systems should would facilitate such Individual
otherwise available through the CAT.17
Once broker-dealer reporting to the be effective at such time as CAT Data Industry Member exemptions.’’ 22 The
CAT has begun, the CAT will contain meets minimum standards of accuracy Exchange believes that a single cut-over
the data the Participants would and reliability.20 As discussed in more from the reporting requirements
otherwise have requested via the EBS 18 Firms are required to maintain the trade
described above to CAT is highly
preferable to a firm-by-firm approach
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system for purposes of NMS Securities information for pre-CAT transactions in equities
and OTC Equity Securities. and options pursuant to applicable rules, such as and is not proposing to exempt
Consequently, the Exchange will not books and records retention requirements, for the members from such reporting
relevant time period, which is generally three or six requirements on a firm-by-firm basis.
need to use the EBS system or request years depending upon the record. See 17 CFR
information pursuant to Rule 15.7 for 240.17a–3(a), 240.17a–4. The Exchange believes that providing
19 See, e.g., Rule 17.2, Interpretation and Policy
17 The proposed rule change also capitalizes the .04. 21 Id.
first word of paragraph (a). 20 Id. [sic] 22 Id.
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![Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices 25433
proposing the elimination of reporting As discussed above, the Exchange submission, all subsequent
requirements related to COATS and agrees with the commenters that the amendments, all written statements
EBS, as well as other duplicative rules, reporting requirements proposed to be with respect to the proposed rule
to implement the requirements of the modified or eliminated should be change that are filed with the
CAT NMS Plan. Therefore, this is not a replaced by the CAT reporting Commission, and all written
competitive rule filing and, therefore, it requirements as soon as accurate and communications relating to the
does not raise competition issues reliable CAT Data is available. To this proposed rule change between the
between and among the self-regulatory end, the Exchange anticipates that the Commission and any person, other than
organizations and/or their members. CAT will be designed to collect the data those that may be withheld from the
necessary to permit the modification or public in accordance with the
C. Self-Regulatory Organization’s
elimination, as applicable, of these provisions of 5 U.S.C. 552, will be
Statement on Comments on the
reporting requirements and the available for Web site viewing and
Proposed Rule Change Received From
retirement of related systems. However, printing in the Commission’s Public
Members, Participants, or Others
as discussed above, the Exchange Reference Room, 100 F Street NE.,
Although written comments on the disagrees with the recommendation to Washington, DC 20549 on official
proposed rule change were not solicited, provide individual exemptions to those business days between the hours of
the Exchange received comments from CAT Reporters who obtain satisfactory 10:00 a.m. and 3:00 p.m. Copies of the
two commenters, the Financial data reporting quality. filing also will be available for
Information Forum (‘‘FIF’’) and the inspection and copying at the principal
III. Date of Effectiveness of the
Securities Industry and Financial office of the Exchange. All comments
Proposed Rule Change and Timing for
Markets Association (‘‘SIFMA’’), received will be posted without change;
Commission Action
regarding the retirement of systems the Commission does not edit personal
related to the CAT.28 In its comment Within 45 days of the date of identifying information from
letters, with regard to the retirement of publication of this notice in the Federal submissions. You should submit only
duplicative systems more generally, FIF Register or within such longer period information that you wish to make
recommended that the Participants up to 90 days (i) as the Commission may available publicly. All submissions
continue the effort to incorporate designate if it finds such longer period should refer to File Number SR–CBOE–
current reporting obligations into the to be appropriate and publishes its 2017–041 and should be submitted on
CAT in order to replace existing reasons for so finding or (ii) as to which or before June 22, 2017.
reportable systems with the CAT. In the Exchange consents, the Commission
For the Commission, by the Division of
addition, FIF further recommended that, will: Trading and Markets, pursuant to delegated
A. By order approve or disapprove authority.32
once a CAT Reporter achieved
such proposed rule change, or
satisfactory reporting data quality, the Eduardo A. Aleman,
B. Institute proceedings to determine
CAT Reporter should be exempt from Assistant Secretary.
whether the proposed rule change
reporting to any duplicative reporting [FR Doc. 2017–11373 Filed 5–31–17; 8:45 am]
should be disapproved.
systems. FIF believed that these BILLING CODE 8011–01–P
recommendations ‘‘would serve both an IV. Solicitation of Comments
underlying regulatory objective of more Interested persons are invited to
immediate and accurate access to data submit written data, views, and SECURITIES AND EXCHANGE
as well as an industry objective of arguments concerning the foregoing, COMMISSION
reduced costs and burdens of regulatory including whether the proposed rule
oversight.’’ 29 In its comments about [Release No. 34–80771; File No. SR–MRX–
change is consistent with the Act. 2017–05]
EBS specifically, FIF stated that the Comments may be submitted by any of
retirement of the EBS requirements the following methods: Self-Regulatory Organizations; Nasdaq
should be a high priority, and that the MRX, LLC; Notice of Filing and
CAT should be designed to include the Electronic Comments
Immediate Effectiveness of Proposed
requisite data elements to permit the • Use the Commission’s Internet Rule Change To Amend
rapid retirement of EBS.30 Similarly, comment form (http://www.sec.gov/ Supplementary Material .03 to Rule 713
SIFMA stated that ‘‘the establishment of rules/sro.shtml); or
the CAT must be accompanied by the • Send an email to rule-comments@ May 25, 2017.
prompt elimination of duplicative sec.gov. Please include File Number SR– Pursuant to Section 19(b)(1) of the
systems,’’ and ‘‘recommend[ed] that the CBOE–2017–041 on the subject line. Securities Exchange Act of 1934
initial technical specifications be (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Paper Comments
designed to facilitate the immediate notice is hereby given that on May 19,
retirement of . . . duplicative reporting • Send paper comments in triplicate 2017, Nasdaq MRX, LLC (‘‘MRX’’ or
systems.’’ 31 to Secretary, Securities and Exchange ‘‘Exchange’’) filed with the Securities
Commission, 100 F Street NE., and Exchange Commission
28 Letter from William H. Hebert, FIF, to Washington, DC 20549–1090. (‘‘Commission’’) the proposed rule
Participants re: Milestone for Participants’ rule All submissions should refer to File change as described in Items I, II, and
change filings to eliminate/modify duplicative rules Number SR–CBOE–2017–041. This file
(Apr. 12, 2017) (‘‘FIF Letter’’); Letter from William
III, below, which Items have been
number should be included on the prepared by the Exchange. The
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H. Hebert, FIF, to Brent J. Fields, SEC re: Milestone
for Participants’ rule change filings to eliminate/ subject line if email is used. To help the Commission is publishing this notice to
modify duplicative rules (Apr. 12, 2017); and Letter Commission process and review your solicit comments on the proposed rule
from Kenneth E. Bentsen, Jr., SIFMA, to comments more efficiently, please use
Participants re: Selection of Thesys as CAT
change from interested persons.
Processor (Apr. 4, 2017) (‘‘SIFMA Letter’’) at 2. only one method. The Commission will
29 FIF Letter at 2. post all comments on the Commission’s 32 17 CFR 200.30–3(a)(12).
30 FIF Letter at 2. Internet Web site (http://www.sec.gov/ 1 15 U.S.C. 78s(b)(1).
31 SIFMA Letter at 2. rules/sro.shtml). Copies of the 2 17 CFR 240.19b–4.
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Document Created: 2017-06-01 03:04:54
Document Modified: 2017-06-01 03:04:54
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 25429 |
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