82 FR 25439 - Self-Regulatory Organizations; NYSE MKT LLC; 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 | 25439-25443 | |
| FR Document | 2017-11370 |
[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)] [Notices] [Pages 25439-25443] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11370] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80794; File No. SR-NYSEMKT-2017-30] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change To Eliminate Requirements That Will Be Duplicative of CAT May 26, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on May 22, 2017, NYSE MKT LLC (``NYSE MKT'' or the ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to delete the Order Audit Trail System (``OATS'') rules in the Rule 7400--Equities Series (Order Audit Trail System) and amend Rule 8211 of the Office Rules (Automated Submission of Trading Data Requested by the Exchange) governing submission of Electronic Blue Sheet trading data (``EBS'') as these Rules provide for the collection of information that is duplicative of the data collection requirements of the CAT once the Financial Industry Regulatory Authority (``FINRA'') publishes a notice announcing the date that it will retire its OATS and EBS rules. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, [[Page 25440]] of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose Background Bats BYX Exchange, Inc., Bats BZX Exchange, Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc., BOX Options Exchange LLC, C2 Options Exchange, Incorporated, Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., FINRA, Investors' Exchange LLC, Miami International Securities Exchange, LLC, MIAX PEARL, LLC, NASDAQ BX, Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC,\3\ NASDAQ PHLX LLC, The NASDAQ Stock Market LLC, the New York Stock Exchange LLC, the Exchange, NYSE Arca, Inc. and NYSE National, Inc.\4\ (collectively, the ``Participants'') filed with the Commission, pursuant to Section 11A of the Exchange Act \5\ and Rule 608 of Regulation NMS thereunder,\6\ the CAT NMS Plan.\7\ The Participants filed the Plan to comply with Rule 613 of Regulation NMS under the Exchange Act.\8\ The Plan was published for comment in the Federal Register on May 17, 2016,\9\ and approved by the Commission, as modified, on November 15, 2016.\10\ On March 21, 2017, the Commission approved \11\ the Exchange's new Rule 6800 Series to implement provisions of the CAT NMS Plan that are applicable to Exchange member organizations.\12\ --------------------------------------------------------------------------- \3\ ISE Gemini, LLC, ISE Mercury, LLC and International Securities Exchange, LLC have been renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC, and Nasdaq ISE, LLC, respectively. See Securities Exchange Act Release No. 80248 (March 15, 2017), 82 FR 14547 (March 21, 2017) (SR-ISEGemini-2017-13); Securities Exchange Act Release No. 80326 (March 29, 2017), 82 FR 16460 (April 4, 2017) (SR-ISEMercury-2017- 05); and Securities Exchange Act Release No. 80325 (March 29, 2017), 82 FR 16445 (April 4, 2017) (SR-ISE-2017-25). \4\ National Stock Exchange, Inc. has been renamed NYSE National, Inc. See Securities Exchange Act Release No. 79902 (January 30, 2017), 82 FR 9258 (February 3, 2017) (SR-NSX-2016-16). \5\ 15 U.S.C. 78k-1. \6\ 17 CFR 242.608. \7\ See Letter from the Participants to Brent J. Fields, Secretary, Commission, dated September 30, 2014; and Letter from Participants to Brent J. Fields, Secretary, Commission, dated February 27, 2015. On December 24, 2015, the Participants submitted an amendment to the CAT NMS Plan. See Letter from Participants to Brent J. Fields, Secretary, Commission, dated December 23, 2015. \8\ 17 CFR 242.613. \9\ Securities Exchange Act Release No. 77724 (April 27, 2016), 81 FR 30614 (May 17, 2016) (File No. 4-698). \10\ Securities Exchange Act Release No. 79318 (Nov. 15, 2016), 81 FR 84696 (November 23, 2016) (File No. 4-698) (``Approval Order''). \11\ See Securities Exchange Act Release No. 80256 (March 15, 2017), 82 FR 14526 (March 21, 2017) (SR-NYSEMKT-2017-02) (Order Approving Proposed Rule Changes to Adopt Consolidated Audit Trail Compliance Rules). \12\ The Rule 6800 Series applies to Exchange member organizations. The term ``member organization'' means a ``registered broker or dealer (unless exempt pursuant to the Securities Exchange Act of 1934) (the ``Act'') that is a member of FINRA or another registered securities exchange. Member organizations that transact business with public customers or conduct business on the Floor of the Exchange shall at all times be members of FINRA. A registered broker or dealer must also be approved by the Exchange and authorized to designate an associated natural person to effect transactions on the floor of the Exchange or any facility thereof. This term shall include a natural person so registered, approved and licensed who directly effects transactions on the floor of the Exchange or any facility thereof.'' See Rule 2(b)(i)--Equities. The term ``member organization'' also includes any registered broker or dealer that is a member of FINRA or a registered securities exchange which does not own a trading license and agrees to be regulated by the Exchange as a member organization and which the Exchange has agreed to regulate. See Rule 2(b)(ii)--Equities. See also Rule 0-- Equities (making clear that the proposed rule applies to transactions conducted on the Equities Trading Systems). --------------------------------------------------------------------------- The Plan is designed to create, implement and maintain a CAT that would capture customer and order event information for orders in NMS Securities and OTC Equity Securities, across all markets, from the time of order inception through routing, cancellation, modification, or execution in a single consolidated data source. Pursuant to Appendix C of the CAT NMS Plan, each Participant is required to conduct analyses of which of its existing trade and order data rules and systems require the collection of information that is duplicative of information collected for the CAT.\13\ In addition, among other things, Section C.9 of Appendix C to the Plan, as modified by the Commission, requires each Participant to ``file with the SEC the relevant rule change filing to eliminate or modify its duplicative rules within six (6) months of the SEC's approval of the CAT NMS Plan.'' \14\ The Plan notes that ``the elimination of such rules and the retirement of such systems [will] be effective at such time as CAT Data meets minimum standards of accuracy and reliability.'' \15\ --------------------------------------------------------------------------- \13\ Appendix C of CAT NMS Plan, Approval Order at 85010. \14\ Id. \15\ Id. --------------------------------------------------------------------------- After conducting its analysis of its rules in accordance with the CAT NMS Plan, the Exchange has determined that the information collected pursuant to the OATS and EBS rules is intended to be collected by CAT. Therefore, the Exchange believes that the Rule 7400-- Equities Series will no longer be necessary once FINRA publishes notice announcing the date it will retire its OATS rules. Similarly, the Exchange believes that it will be necessary to clarify how the Exchange will request EBS data under Rule 8211 after members are reporting to the CAT. Accordingly, the Exchange proposes to amend Rule 8211 to add new Supplementary Material clarifying how the Exchange will request data under these rules after member organizations are reporting to the CAT once FINRA publishes notice announcing the date it will retire its OATS rules. Discussed below is a description of the duplicative rule requirements as well as the timeline for eliminating the duplicative rules. If the Commission approves the proposed rule change, the rule text will be effective; however, the amendments will not be implemented until FINRA publishes a notice announcing the date that it will retire its OATS rules, at which time the Exchange will publish a regulatory notice announcing implementation date of the proposed rule change. As discussed below, FINRA will publish its notice once the CAT achieves certain specific accuracy and reliability standards and FINRA has determined that its usage of the CAT Data has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow FINRA to continue to meet its surveillance obligations,\16\ and confirmed that the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. --------------------------------------------------------------------------- \16\ As noted in the Participants' September 23, 2016 response to comment letters on the Plan, the Participants ``worked to keep [the CAT] gap analyses up-to-date by including newly-added data fields in these duplicative systems, such as the new OATS data fields related to the tick size pilot and ATS order book changes, in the gap analyses.'' Letter from Participants to Brent J. Fields, Secretary, Commission, dated September 23, 2016, at 21. The Participants noted that they ``will work with the Plan Processor and the industry to develop detailed Technical Specifications to ensure that by the time Industry Members are required to report to the CAT, the CAT will include all data elements necessary to facilitate the rapid retirement of duplicative systems.'' Id. --------------------------------------------------------------------------- Duplicative OATS Requirements The Exchange's Rule 7400 Series consists of Rules 7410--Equities through 7470--Equities and sets forth the recording and reporting requirements of the OATS Rules. The OATS Rules require all Exchange member organizations and associated persons to record in electronic form and report to FINRA, on a daily basis, certain information with respect to orders originated, received, transmitted, modified, canceled, or executed by [[Page 25441]] members in all NMS stocks, as that term is defined in Rule 600(b)(47) of Regulation NMS,\17\ traded on the Exchange, including NYSE-listed securities. This information is used by FINRA staff to conduct surveillance and investigations of member firms for violations of FINRA rules and federal securities laws. The Exchange has determined that the requirements of the Rule 7400--Equities Series are duplicative of information available in the CAT and thus will no longer be necessary once the CAT is operational. --------------------------------------------------------------------------- \17\ 17 CFR 242.600(B)(47). --------------------------------------------------------------------------- The Participants have provided OATS technical specifications to the Plan Processor for the CAT for use in developing the Technical Specifications for the CAT, and the Participants are working with the Plan Processor to include the necessary OATS data elements in the CAT Technical Specifications. Accordingly, the Exchange proposes to eliminate its OATS Rules in accordance with the proposed timeline discussed below. Timeline for Elimination of Duplicative Rules The CAT NMS Plan states that the elimination of rules that are duplicative of the requirements of the CAT and the retirement of the related systems should be effective at such time as CAT Data meets minimum standards of accuracy and reliability.\18\ As discussed in more detail in its rule filing, FINRA believes that OATS may be retired at a date after all Industry Members are reporting to the CAT when the proposed error rate thresholds have been met, and FINRA has determined that its usage of the CAT Data has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow FINRA to continue to meet its surveillance obligations, and confirmed that the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan.\19\ --------------------------------------------------------------------------- \18\ Appendix C of CAT NMS Plan, Approval Order at 85010. \19\ See SR-FINRA-2017-013. --------------------------------------------------------------------------- The CAT NMS Plan requires that a rule filing to eliminate a duplicative rule address whether ``the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.'' \20\ FINRA believes that there is no effective way to retire OATS until all current OATS reporters are reporting to the CAT. As discussed in FINRA's filing, FINRA believes that having data from those Small Industry Members currently reporting to OATS available two years after the Effective Date would substantially facilitate a more expeditious retirement of OATS and therefore supports an amendment to the Plan that would require current OATS Reporters that are ``Small Industry Members'' to report two years after the Effective Date (instead of three).\21\ --------------------------------------------------------------------------- \20\ Id. [sic]. \21\ See SR-FINRA-2017-013. FINRA has represented that it intends to work with the other Participants to submit a proposed amendment to the Plan to require Small Industry Members that are OATS Reporters to report two years after the Effective Date. --------------------------------------------------------------------------- The CAT NMS Plan also requires that this rule filing address ``whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.'' \22\ --------------------------------------------------------------------------- \22\ Id. [sic]. --------------------------------------------------------------------------- FINRA believes that a single cut-over from OATS to CAT is highly preferable to a firm-by-firm approach and is not proposing to exempt members from the OATS requirements on a firm-by-firm basis. FINRA believes that that the overall accuracy and reliability thresholds for the CAT described above [sic] would need to be met under any conditions before firms could stop reporting to OATS. Moreover, as discussed above [sic], FINRA supports amending the Plan to accelerate the reporting requirements for Small Industry Members that are OATS Reporters to report on the same timeframe as all other OATS Reporters. If such an amendment were approved by the Commission, there would be no need to exempt members from OATS requirements on a firm-by-firm basis.\23\ --------------------------------------------------------------------------- \23\ Id. --------------------------------------------------------------------------- The CAT NMS Plan also requires that a rule filing to eliminate a duplicative rule to provide ``specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.'' \24\ As discussed in Section A.3.(b) of Appendix C to the CAT NMS Plan, the Participants established an initial Error Rate, as defined in the Plan, of 5% on initially submitted data (i.e., data as submitted by a CAT Reporter before any required corrections are performed). The Participants noted in the Plan that their expectation was that ``error rates after reprocessing of error corrections will be de minimis.'' \25\ The Participants based this Error Rate on their consideration of ``current and historical OATS Error Rates, the magnitude of new reporting requirements on the CAT Reporters and the fact that many CAT Reporters may have never been obligated to report data to an audit trail.'' \26\ --------------------------------------------------------------------------- \24\ Id. [sic]. \25\ See CAT NMS Plan, Appendix C, Section A.3(b), at n.102. \26\ Id. --------------------------------------------------------------------------- As set forth in its filing, FINRA believes that, when assessing the accuracy and reliability of the data for the purposes of retiring OATS, the error thresholds should be measured in more granular ways and should also include minimum error rates of post-correction data, which represents the data most likely to be used by FINRA to conduct surveillance. To ensure the CAT's accuracy and reliability, FINRA is thus proposing that, before OATS could be retired, the CAT would generally need to achieve a sustained error rate for Industry Member reporting in each of the categories below for a period of at least 180 days of 5% or lower, measured on a pre-correction or as-submitted basis and 2% or lower on a post-correction basis (measured at T+5).\27\ FINRA is proposing to measure the 5% pre-correction and 2% post-correction thresholds by averaging the error rate across the period, not require a 5% pre-correction and 2% post-correction maximum each day for 180 consecutive days. FINRA believes that measuring each of the thresholds over the course of 180 days will ensure that the CAT consistently meets minimum accuracy and reliability thresholds for Industry Member reporting while also ensuring that single-day measurements do not unduly affect the overall measurements.\28\ Consequently, FINRA is proposing to use error rates in four categories, measured separately for options and for equities, to assess whether the threshold pre- and post-correction error rates are being met.\29\ --------------------------------------------------------------------------- \27\ The Plan requires that the Plan Processor must ensure that regulators have access to corrected and linked order and Customer data by 8:00 a.m. Eastern Time on T+5. See CAT NMS Plan, Appendix C, Section A.2(a). \28\ See SR-FINRA-2017-013. \29\ The categories are (1) rejection rates and data validations; (2) intra-firm linkages; (3) order linkage rates; and (4) Exchange and TRF/ORF match rates. --------------------------------------------------------------------------- In addition to these minimum error rates before OATS can be retired FINRA believes that during the minimum 180-day period during which the thresholds are calculated, FINRA's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been [[Page 25442]] corrected, (ii) the CAT includes all data necessary to allow the Exchange to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. The Exchange believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.\30\ --------------------------------------------------------------------------- \30\ See SR-FINRA-2017-013. --------------------------------------------------------------------------- Rule 8211 In addition to the OATS rules, Rule 8211 will also be affected by the implementation of the CAT. Rule 8211 is the Exchange's rule regarding the automated submission of specific trading data to the Exchange upon request (commonly referred to as ``blue sheet'' data) using the EBS system. Once broker-dealer reporting to the CAT has begun, the CAT will contain much of the data the Participants would otherwise have requested via the EBS system for purposes of NMS Securities and OTC Equity Securities. Consequently, the Exchange will not need to use the EBS system or request information pursuant to Rule 8211 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 8211 cannot be completely eliminated upon the CAT achieving the appropriate thresholds because Exchange staff may still need to request information pursuant to Rule 8211 for trading activity occurring before a member organization was reporting to the CAT.\31\ In addition, the Rule 8211 applies to information regarding transactions involving securities that will not be reportable to the CAT, such as fixed-income securities; thus, the rule must remain in effect with respect to those transactions until those transactions are captured in the CAT. --------------------------------------------------------------------------- \31\ Firms are required to maintain the trade information for pre-CAT transactions in equities and options pursuant to applicable rules, such as books and records retention requirements, for the relevant time period, which is generally three or six years depending upon the record. See 17 CFR 240.17a-3(a), 240.17a-4. --------------------------------------------------------------------------- The proposed rule change proposes to add new Supplementary Material to the Rule 8211 to clarify how the Exchange will request data under these rules after member organizations are reporting to the CAT. Specifically, the proposed Supplementary Material to the Rule 8211 will note that the Exchange will request information under Rule 8211 only if the information is not available in the CAT because, for example, the transactions in question occurred before the firm was reporting information to the CAT or involved securities that are not reportable to the CAT. In essence, under the new Supplementary Material, the Exchange will make requests under these rules if and only if the information is not otherwise available through the CAT. However, as noted above, FINRA believes that the CAT must meet certain minimum accuracy and reliability standards before FINRA could rely on the CAT Data to replace existing regulatory tools, including EBS. Consequently, the proposed Supplementary Material will be implemented only after FINRA publishes its notice after the CAT achieves the thresholds set forth above with respect to OATS and an accuracy rate for customer and account information of 95% for pre- corrected data and 98% for post-correction data. In addition, as discussed above, FINRA can rely on CAT Data to replace EBS requests only after FINRA has determined that its usage of the CAT Data over a 180-day period has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow FINRA to continue to meet its surveillance obligations, and confirmed that the CAT Plan Processor is fulfilling its obligations under the CAT NMS Plan. As noted, if the Commission approves the proposed rule change, the Exchange will announce the implementation date of the proposed rule change in a regulatory notice that will be published once FINRA publishes a notice announcing the date that it will retire its EBS rules, which FINRA will do once it concludes the thresholds for accuracy and reliability described above have been met and that the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\32\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\33\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \32\ 15 U.S.C. 78f(b). \33\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the Exchange believes that the proposed rule change implements, supports, interprets or clarifies the provisions of the Plan, and is designed to assist the Exchange and its Members in meeting regulatory obligations pursuant to, and milestones established by, the Plan. In approving the Plan, the SEC noted that it ``is necessary and appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets, to remove impediments to, and perfect the mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.'' \34\ To the extent that this proposal implements, interprets or clarifies the Plan and applies specific requirements to Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act. --------------------------------------------------------------------------- \34\ Approval Order, 81 FR at 84697. --------------------------------------------------------------------------- The Exchange also believes that adding a preamble to each current Rule impacted by the Plan would remove impediments to and perfect the mechanism of a free and open market and a national market system by adding clarity and transparency to the Exchange's rules, reducing potential confusion, and making the Exchange's rules easier to navigate and understand. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is not designed to address any competitive issue but rather implement provisions of the CAT NMS Plan, and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. [[Page 25443]] III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEMKT-2017-30 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEMKT-2017-30. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEMKT-2017-30, and should be submitted on or before June 22, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\35\ --------------------------------------------------------------------------- \35\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-11370 Filed 5-31-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices 25439
B. Self-Regulatory Organization’s • Send an email to rule-comments@ SECURITIES AND EXCHANGE
Statement on Burden on Competition sec.gov. Please include File Number SR– COMMISSION
Section 6(b)(8) of the Exchange Act 23 PEARL–2017–23 on the subject line.
[Release No. 34–80794; File No. SR–
requires that Exchange rules not impose Paper Comments NYSEMKT–2017–30]
any burden on competition that is not
necessary or appropriate. The Exchange • Send paper comments in triplicate Self-Regulatory Organizations; NYSE
does not believe that the proposed rule to Brent J. Fields, Secretary, Securities MKT LLC; Notice of Filing of Proposed
change will result in any burden on and Exchange Commission, 100 F Street Rule Change To Eliminate
competition that is not necessary or NE., Washington, DC 20549–1090. Requirements That Will Be Duplicative
appropriate in furtherance of the of CAT
purposes of the Exchange Act. The All submissions should refer to File
Number SR–PEARL–2017–23. This file May 26, 2017.
Exchange notes that the proposed rule Pursuant to Section 19(b)(1) of the
change implements the requirements of number should be included on the
subject line if email is used. To help the Securities Exchange Act of 1934
the CAT NMS Plan approved by the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Commission regarding the elimination Commission process and review your
notice is hereby given that on May 22,
of rules and systems that are duplicative comments more efficiently, please use
2017, NYSE MKT LLC (‘‘NYSE MKT’’ or
the CAT, and is designed to assist the only one method. The Commission will
the ‘‘Exchange’’) filed with the
Exchange in meeting its regulatory post all comments on the Commission’s Securities and Exchange Commission
obligations pursuant to the Plan. Internet Web site (http://www.sec.gov/ (‘‘SEC’’ or ‘‘Commission’’) the proposed
Similarly, all exchanges and FINRA are rules/sro.shtml). Copies of the rule change as described in Items I, II,
proposing the elimination of their EBS submission, all subsequent and III below, which Items have been
and other CAT duplicative rules to amendments, all written statements prepared by the Exchange. The
implement the requirements of the CAT with respect to the proposed rule Commission is publishing this notice to
NMS Plan. Therefore, this is not a change that are filed with the solicit comments on the proposed rule
competitive rule filing and, therefore, it Commission, and all written change from interested persons.
does not raise competition issues communications relating to the
between and among the self-regulatory proposed rule change between the I. Self-Regulatory Organization’s
organizations and/or their members. Statement of the Terms of Substance of
Commission and any person, other than
the Proposed Rule Change
C. Self-Regulatory Organization’s those that may be withheld from the
Statement on Comments on the public in accordance with the The Exchange proposes to delete the
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be Order Audit Trail System (‘‘OATS’’)
Members, Participants, or Others available for Web site viewing and rules in the Rule 7400—Equities Series
printing in the Commission’s Public (Order Audit Trail System) and amend
Written comments were neither Rule 8211 of the Office Rules
solicited nor received. Reference Room, 100 F Street NE.,
Washington, DC 20549 on official (Automated Submission of Trading Data
III. Date of Effectiveness of the Requested by the Exchange) governing
business days between the hours of
Proposed Rule Change and Timing for submission of Electronic Blue Sheet
10:00 a.m. and 3:00 p.m. Copies of such
Commission Action trading data (‘‘EBS’’) as these Rules
filing also will be available for provide for the collection of information
Within 45 days of the date of inspection and copying at the principal that is duplicative of the data collection
publication of this notice in the Federal office of the Exchange. All comments requirements of the CAT once the
Register or within such longer period (i) received will be posted without change; Financial Industry Regulatory Authority
as the Commission may designate up to the Commission does not edit personal (‘‘FINRA’’) publishes a notice
90 days of such date if it finds such identifying information from announcing the date that it will retire its
longer period to be appropriate and submissions. You should submit only OATS and EBS rules. The proposed rule
publishes its reasons for so finding or information that you wish to make change is available on the Exchange’s
(ii) as to which the Exchange consents, available publicly. All submissions Web site at www.nyse.com, at the
the Commission shall: (a) By order should refer to File Number SR– principal office of the Exchange, and at
approve or disapprove such proposed PEARL–2017–23, and should be the Commission’s Public Reference
rule change, or (b) institute proceedings submitted on or before June 22, 2017. Room.
to determine whether the proposed rule
change should be disapproved. For the Commission, by the Division of II. Self-Regulatory Organization’s
Trading and Markets, pursuant to delegated Statement of the Purpose of, and
IV. Solicitation of Comments authority.24 Statutory Basis for, the Proposed Rule
Interested persons are invited to Eduardo A. Aleman, Change
submit written data, views, and Assistant Secretary. In its filing with the Commission, the
arguments concerning the foregoing, [FR Doc. 2017–11368 Filed 5–31–17; 8:45 am] self-regulatory organization included
including whether the proposed rule BILLING CODE 8011–01–P statements concerning the purpose of,
change is consistent with the Act. and basis for, the proposed rule change
Comments may be submitted by any of and discussed any comments it received
the following methods: on the proposed rule change. The text
mstockstill on DSK30JT082PROD with NOTICES
Electronic Comments of those statements may be examined at
the places specified in Item IV below.
• Use the Commission’s Internet The Exchange has prepared summaries,
comment form (http://www.sec.gov/ set forth in sections A, B, and C below,
rules/sro.shtml); or
1 15 U.S.C. 78s(b)(1).
23 15 U.S.C. 78f(b)(8). 24 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 18:32 May 31, 2017 Jkt 241001 PO 00000 Frm 00216 Fmt 4703 Sfmt 4703 E:\FR\FM\01JNN1.SGM 01JNN1](https://thefederalregister.org/doc/82_FR_25543/page/1.svg)
![25440 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices
of the most significant parts of such new Rule 6800 Series to implement necessary once FINRA publishes notice
statements. provisions of the CAT NMS Plan that announcing the date it will retire its
are applicable to Exchange member OATS rules. Similarly, the Exchange
A. Self-Regulatory Organization’s
organizations.12 believes that it will be necessary to
Statement of the Purpose of, and the The Plan is designed to create, clarify how the Exchange will request
Statutory Basis for, the Proposed Rule implement and maintain a CAT that EBS data under Rule 8211 after
Change would capture customer and order event members are reporting to the CAT.
1. Purpose information for orders in NMS Accordingly, the Exchange proposes to
Background Securities and OTC Equity Securities, amend Rule 8211 to add new
across all markets, from the time of Supplementary Material clarifying how
Bats BYX Exchange, Inc., Bats BZX order inception through routing, the Exchange will request data under
Exchange, Inc., Bats EDGA Exchange, cancellation, modification, or execution these rules after member organizations
Inc., Bats EDGX Exchange, Inc., BOX in a single consolidated data source. are reporting to the CAT once FINRA
Options Exchange LLC, C2 Options Pursuant to Appendix C of the CAT publishes notice announcing the date it
Exchange, Incorporated, Chicago Board NMS Plan, each Participant is required will retire its OATS rules. Discussed
Options Exchange, Incorporated, to conduct analyses of which of its below is a description of the duplicative
Chicago Stock Exchange, Inc., FINRA, existing trade and order data rules and rule requirements as well as the
Investors’ Exchange LLC, Miami systems require the collection of timeline for eliminating the duplicative
International Securities Exchange, LLC, information that is duplicative of rules.
MIAX PEARL, LLC, NASDAQ BX, Inc., information collected for the CAT.13 In If the Commission approves the
Nasdaq GEMX, LLC, Nasdaq ISE, LLC, addition, among other things, Section proposed rule change, the rule text will
Nasdaq MRX, LLC,3 NASDAQ PHLX C.9 of Appendix C to the Plan, as be effective; however, the amendments
LLC, The NASDAQ Stock Market LLC, modified by the Commission, requires will not be implemented until FINRA
the New York Stock Exchange LLC, the each Participant to ‘‘file with the SEC publishes a notice announcing the date
Exchange, NYSE Arca, Inc. and NYSE the relevant rule change filing to that it will retire its OATS rules, at
National, Inc.4 (collectively, the eliminate or modify its duplicative rules which time the Exchange will publish a
‘‘Participants’’) filed with the within six (6) months of the SEC’s regulatory notice announcing
Commission, pursuant to Section 11A of approval of the CAT NMS Plan.’’ 14 The implementation date of the proposed
the Exchange Act 5 and Rule 608 of Plan notes that ‘‘the elimination of such rule change. As discussed below, FINRA
Regulation NMS thereunder,6 the CAT rules and the retirement of such systems will publish its notice once the CAT
NMS Plan.7 The Participants filed the [will] be effective at such time as CAT achieves certain specific accuracy and
Plan to comply with Rule 613 of Data meets minimum standards of reliability standards and FINRA has
Regulation NMS under the Exchange accuracy and reliability.’’ 15 determined that its usage of the CAT
Act.8 The Plan was published for After conducting its analysis of its Data has not revealed material issues
comment in the Federal Register on rules in accordance with the CAT NMS that have not been corrected, confirmed
May 17, 2016,9 and approved by the Plan, the Exchange has determined that that the CAT includes all data necessary
Commission, as modified, on November the information collected pursuant to to allow FINRA to continue to meet its
15, 2016.10 On March 21, 2017, the the OATS and EBS rules is intended to surveillance obligations,16 and
Commission approved 11 the Exchange’s be collected by CAT. Therefore, the confirmed that the Plan Processor is
Exchange believes that the Rule 7400— sufficiently meeting all of its obligations
3 ISE Gemini, LLC, ISE Mercury, LLC and
Equities Series will no longer be under the CAT NMS Plan.
International Securities Exchange, LLC have been
renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC, Duplicative OATS Requirements
and Nasdaq ISE, LLC, respectively. See Securities Proposed Rule Changes to Adopt Consolidated
Exchange Act Release No. 80248 (March 15, 2017), Audit Trail Compliance Rules). The Exchange’s Rule 7400 Series
12 The Rule 6800 Series applies to Exchange
82 FR 14547 (March 21, 2017) (SR–ISEGemini– consists of Rules 7410—Equities
2017–13); Securities Exchange Act Release No. member organizations. The term ‘‘member
organization’’ means a ‘‘registered broker or dealer
through 7470—Equities and sets forth
80326 (March 29, 2017), 82 FR 16460 (April 4,
2017) (SR–ISEMercury–2017–05); and Securities (unless exempt pursuant to the Securities Exchange the recording and reporting
Exchange Act Release No. 80325 (March 29, 2017), Act of 1934) (the ‘‘Act’’) that is a member of FINRA requirements of the OATS Rules. The
82 FR 16445 (April 4, 2017) (SR–ISE–2017–25). or another registered securities exchange. Member OATS Rules require all Exchange
4 National Stock Exchange, Inc. has been renamed organizations that transact business with public
customers or conduct business on the Floor of the member organizations and associated
NYSE National, Inc. See Securities Exchange Act
Release No. 79902 (January 30, 2017), 82 FR 9258 Exchange shall at all times be members of FINRA. persons to record in electronic form and
(February 3, 2017) (SR–NSX–2016–16). A registered broker or dealer must also be approved report to FINRA, on a daily basis,
5 15 U.S.C. 78k–1. by the Exchange and authorized to designate an certain information with respect to
associated natural person to effect transactions on
6 17 CFR 242.608.
the floor of the Exchange or any facility thereof. orders originated, received, transmitted,
7 See Letter from the Participants to Brent J.
This term shall include a natural person so modified, canceled, or executed by
Fields, Secretary, Commission, dated September 30, registered, approved and licensed who directly
2014; and Letter from Participants to Brent J. Fields, effects transactions on the floor of the Exchange or 16 As noted in the Participants’ September 23,
Secretary, Commission, dated February 27, 2015. any facility thereof.’’ See Rule 2(b)(i)—Equities. The 2016 response to comment letters on the Plan, the
On December 24, 2015, the Participants submitted term ‘‘member organization’’ also includes any Participants ‘‘worked to keep [the CAT] gap
an amendment to the CAT NMS Plan. See Letter registered broker or dealer that is a member of analyses up-to-date by including newly-added data
from Participants to Brent J. Fields, Secretary, FINRA or a registered securities exchange which fields in these duplicative systems, such as the new
Commission, dated December 23, 2015. does not own a trading license and agrees to be
8 17 CFR 242.613.
OATS data fields related to the tick size pilot and
regulated by the Exchange as a member ATS order book changes, in the gap analyses.’’
mstockstill on DSK30JT082PROD with NOTICES
9 Securities Exchange Act Release No. 77724 organization and which the Exchange has agreed to Letter from Participants to Brent J. Fields, Secretary,
(April 27, 2016), 81 FR 30614 (May 17, 2016) (File regulate. See Rule 2(b)(ii)—Equities. See also Rule Commission, dated September 23, 2016, at 21. The
No. 4–698). 0—Equities (making clear that the proposed rule Participants noted that they ‘‘will work with the
10 Securities Exchange Act Release No. 79318 applies to transactions conducted on the Equities Plan Processor and the industry to develop detailed
(Nov. 15, 2016), 81 FR 84696 (November 23, 2016) Trading Systems). Technical Specifications to ensure that by the time
13 Appendix C of CAT NMS Plan, Approval Order
(File No. 4–698) (‘‘Approval Order’’). Industry Members are required to report to the CAT,
11 See Securities Exchange Act Release No. 80256 at 85010. the CAT will include all data elements necessary
14 Id.
(March 15, 2017), 82 FR 14526 (March 21, 2017) to facilitate the rapid retirement of duplicative
(SR–NYSEMKT–2017–02) (Order Approving 15 Id. systems.’’ Id.
VerDate Sep<11>2014 18:32 May 31, 2017 Jkt 241001 PO 00000 Frm 00217 Fmt 4703 Sfmt 4703 E:\FR\FM\01JNN1.SGM 01JNN1](https://thefederalregister.org/doc/82_FR_25543/page/2.svg)
![Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices 25441
members in all NMS stocks, as that term reporting to OATS available two years ‘‘error rates after reprocessing of error
is defined in Rule 600(b)(47) of after the Effective Date would corrections will be de minimis.’’ 25 The
Regulation NMS,17 traded on the substantially facilitate a more Participants based this Error Rate on
Exchange, including NYSE-listed expeditious retirement of OATS and their consideration of ‘‘current and
securities. This information is used by therefore supports an amendment to the historical OATS Error Rates, the
FINRA staff to conduct surveillance and Plan that would require current OATS magnitude of new reporting
investigations of member firms for Reporters that are ‘‘Small Industry requirements on the CAT Reporters and
violations of FINRA rules and federal Members’’ to report two years after the the fact that many CAT Reporters may
securities laws. The Exchange has Effective Date (instead of three).21 have never been obligated to report data
determined that the requirements of the The CAT NMS Plan also requires that to an audit trail.’’ 26
Rule 7400—Equities Series are this rule filing address ‘‘whether As set forth in its filing, FINRA
duplicative of information available in individual Industry Members can be believes that, when assessing the
the CAT and thus will no longer be exempted from reporting to duplicative accuracy and reliability of the data for
necessary once the CAT is operational. systems once their CAT reporting meets the purposes of retiring OATS, the error
The Participants have provided OATS specified accuracy and reliability thresholds should be measured in more
technical specifications to the Plan standards, including, but not limited to, granular ways and should also include
Processor for the CAT for use in ways in which establishing cross-system minimum error rates of post-correction
developing the Technical Specifications regulatory functionality or integrating data, which represents the data most
for the CAT, and the Participants are data from existing systems and the CAT likely to be used by FINRA to conduct
working with the Plan Processor to would facilitate such Individual surveillance. To ensure the CAT’s
include the necessary OATS data Industry Member exemptions.’’ 22 accuracy and reliability, FINRA is thus
elements in the CAT Technical FINRA believes that a single cut-over proposing that, before OATS could be
Specifications. Accordingly, the from OATS to CAT is highly preferable retired, the CAT would generally need
Exchange proposes to eliminate its to a firm-by-firm approach and is not to achieve a sustained error rate for
OATS Rules in accordance with the proposing to exempt members from the Industry Member reporting in each of
proposed timeline discussed below. OATS requirements on a firm-by-firm the categories below for a period of at
basis. FINRA believes that that the least 180 days of 5% or lower, measured
Timeline for Elimination of Duplicative overall accuracy and reliability on a pre-correction or as-submitted basis
Rules thresholds for the CAT described above and 2% or lower on a post-correction
The CAT NMS Plan states that the [sic] would need to be met under any basis (measured at T+5).27 FINRA is
elimination of rules that are duplicative conditions before firms could stop proposing to measure the 5% pre-
of the requirements of the CAT and the reporting to OATS. Moreover, as correction and 2% post-correction
retirement of the related systems should discussed above [sic], FINRA supports thresholds by averaging the error rate
be effective at such time as CAT Data amending the Plan to accelerate the across the period, not require a 5% pre-
meets minimum standards of accuracy reporting requirements for Small correction and 2% post-correction
and reliability.18 As discussed in more Industry Members that are OATS maximum each day for 180 consecutive
detail in its rule filing, FINRA believes Reporters to report on the same days. FINRA believes that measuring
that OATS may be retired at a date after timeframe as all other OATS Reporters. each of the thresholds over the course
all Industry Members are reporting to If such an amendment were approved of 180 days will ensure that the CAT
the CAT when the proposed error rate by the Commission, there would be no consistently meets minimum accuracy
thresholds have been met, and FINRA need to exempt members from OATS and reliability thresholds for Industry
has determined that its usage of the CAT requirements on a firm-by-firm basis.23 Member reporting while also ensuring
Data has not revealed material issues The CAT NMS Plan also requires that that single-day measurements do not
that have not been corrected, confirmed a rule filing to eliminate a duplicative unduly affect the overall
that the CAT includes all data necessary rule to provide ‘‘specific accuracy and measurements.28 Consequently, FINRA
to allow FINRA to continue to meet its reliability standards that will determine is proposing to use error rates in four
surveillance obligations, and confirmed when duplicative systems will be categories, measured separately for
that the Plan Processor is sufficiently retired, including, but not limited to, options and for equities, to assess
meeting all of its obligations under the whether the attainment of a certain whether the threshold pre- and post-
CAT NMS Plan.19 Error Rate should determine when a correction error rates are being met.29
The CAT NMS Plan requires that a system duplicative of the CAT can be In addition to these minimum error
rule filing to eliminate a duplicative retired.’’ 24 As discussed in Section rates before OATS can be retired FINRA
rule address whether ‘‘the availability of A.3.(b) of Appendix C to the CAT NMS believes that during the minimum 180-
certain data from Small Industry Plan, the Participants established an day period during which the thresholds
Members two years after the Effective initial Error Rate, as defined in the Plan, are calculated, FINRA’s use of the data
Date would facilitate a more expeditious of 5% on initially submitted data (i.e., in the CAT must confirm that (i) usage
retirement of duplicative systems.’’ 20 data as submitted by a CAT Reporter over that time period has not revealed
before any required corrections are material issues that have not been
FINRA believes that there is no effective
way to retire OATS until all current performed). The Participants noted in
25 See CAT NMS Plan, Appendix C, Section
OATS reporters are reporting to the the Plan that their expectation was that A.3(b), at n.102.
CAT. As discussed in FINRA’s filing, 26 Id.
mstockstill on DSK30JT082PROD with NOTICES
21 See SR–FINRA–2017–013. FINRA has
FINRA believes that having data from 27 The Plan requires that the Plan Processor must
represented that it intends to work with the other ensure that regulators have access to corrected and
those Small Industry Members currently Participants to submit a proposed amendment to linked order and Customer data by 8:00 a.m.
the Plan to require Small Industry Members that are Eastern Time on T+5. See CAT NMS Plan,
17 17 CFR 242.600(B)(47). OATS Reporters to report two years after the Appendix C, Section A.2(a).
18 Appendix C of CAT NMS Plan, Approval Order Effective Date. 28 See SR–FINRA–2017–013.
at 85010. 22 Id. [sic].
29 The categories are (1) rejection rates and data
19 See SR–FINRA–2017–013. 23 Id.
validations; (2) intra-firm linkages; (3) order linkage
20 Id. [sic]. 24 Id. [sic]. rates; and (4) Exchange and TRF/ORF match rates.
VerDate Sep<11>2014 18:32 May 31, 2017 Jkt 241001 PO 00000 Frm 00218 Fmt 4703 Sfmt 4703 E:\FR\FM\01JNN1.SGM 01JNN1](https://thefederalregister.org/doc/82_FR_25543/page/3.svg)
![Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices 25443
III. Date of Effectiveness of the filing also will be available for below have been met and that the Plan
Proposed Rule Change and Timing for inspection and copying at the principal Processor is sufficiently meeting all of
Commission Action office of the Exchange. All comments its obligations under the CAT NMS
Within 45 days of the date of received will be posted without change; Plan. The proposed rule change is
publication of this notice in the Federal the Commission does not edit personal available on the Exchange’s Web site at
Register or up to 90 days (i) as the identifying information from www.nyse.com, at the principal office of
Commission may designate if it finds submissions. You should submit only the Exchange, and at the Commission’s
information that you wish to make Public Reference Room.
such longer period to be appropriate
available publicly. All submissions
and publishes its reasons for so finding II. Self-Regulatory Organization’s
should refer to File Number SR–
or (ii) as to which the self-regulatory Statement of the Purpose of, and
NYSEMKT–2017–30, and should be
organization consents, the Commission Statutory Basis for, the Proposed Rule
submitted on or before June 22, 2017.
will: Change
(A) By order approve or disapprove For the Commission, by the Division of
the proposed rule change, or Trading and Markets, pursuant to delegated In its filing with the Commission, the
authority.35 self-regulatory organization included
(B) institute proceedings to determine
whether the proposed rule change statements concerning the purpose of,
Eduardo A. Aleman, and basis for, the proposed rule change
should be disapproved.
Assistant Secretary. and discussed any comments it received
IV. Solicitation of Comments [FR Doc. 2017–11370 Filed 5–31–17; 8:45 am] on the proposed rule change. The text
Interested persons are invited to BILLING CODE 8011–01–P of those statements may be examined at
submit written data, views, and the places specified in Item IV below.
arguments concerning the foregoing, The Exchange has prepared summaries,
including whether the proposed rule SECURITIES AND EXCHANGE set forth in sections A, B, and C below,
change is consistent with the Act. COMMISSION of the most significant parts of such
Comments may be submitted by any of [Release No. 34–80793; File No. SR– statements.
the following methods: NYSEMKT–2017–29] A. Self-Regulatory Organization’s
Electronic Comments Statement of the Purpose of, and the
Self-Regulatory Organizations; NYSE
Statutory Basis for, the Proposed Rule
• Use the Commission’s Internet MKT LLC; Notice of Filing of Proposed
Change
comment form (http://www.sec.gov/ Rule Change To Eliminate
rules/sro.shtml); or Requirements That Will Be Duplicative 1. Purpose
• Send an email to rule- of CAT Background
comments@sec.gov. Please include File
May 26, 2017. Bats BYX Exchange, Inc., Bats BZX
Number SR–NYSEMKT–2017–30 on the
Pursuant to Section 19(b)(1) of the Exchange, Inc., Bats EDGA Exchange,
subject line.
Securities Exchange Act of 1934 Inc., Bats EDGX Exchange, Inc., BOX
Paper Comments (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Options Exchange LLC, C2 Options
• Send paper comments in triplicate notice is hereby given that on May 15, Exchange, Incorporated, CBOE, Chicago
to Brent J. Fields, Secretary, Securities 2017, NYSE MKT LLC (‘‘NYSE MKT’’ or Stock Exchange, Inc., Financial Industry
and Exchange Commission, 100 F Street the ‘‘Exchange’’) filed with the Regulatory Authority, Inc. (‘‘FINRA’’),
NE., Washington, DC 20549–1090. Securities and Exchange Commission Investors’ Exchange LLC, Miami
(‘‘SEC’’ or ‘‘Commission’’) the proposed International Securities Exchange, LLC,
All submissions should refer to File
rule change as described in Items I, II, MIAX PEARL, LLC, NASDAQ BX, Inc.,
Number SR–NYSEMKT–2017–30. This
and III below, which Items have been Nasdaq GEMX, LLC, Nasdaq ISE, LLC,
file number should be included on the
prepared by the Exchange. The Nasdaq MRX, LLC,3 NASDAQ PHLX
subject line if email is used. To help the
Commission is publishing this notice to LLC, The NASDAQ Stock Market LLC,
Commission process and review your
solicit comments on the proposed rule New York Stock Exchange LLC, the
comments more efficiently, please use
change from interested persons. Exchange, NYSE Arca, Inc. and NYSE
only one method. The Commission will
post all comments on the Commission’s I. Self-Regulatory Organization’s National, Inc.4 (collectively, the
Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of ‘‘Participants’’) filed with the
rules/sro.shtml). Copies of the the Proposed Rule Change Commission, pursuant to Section 11A of
submission, all subsequent The Exchange proposes to delete the Exchange Act 5 and Rule 608 of
amendments, all written statements subsections (a)(1)–(13) of Rule 956NY Regulation NMS thereunder,6 the CAT
with respect to the proposed rule (Record of Orders) of the Options Rules
change that are filed with the as these Rules collect information for
3 ISE Gemini, LLC, ISE Mercury, LLC and
Commission, and all written International Securities Exchange, LLC have been
the consolidated options audit trail renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC,
communications relating to the system (‘‘COATS’’) that are duplicative and Nasdaq ISE, LLC, respectively. See Securities
proposed rule change between the of the data collection requirements of Exchange Act Release No. 80248 (March 15, 2017),
Commission and any person, other than the CAT NMS Plan. The Exchange will 82 FR 14547 (March 21, 2017) (SR–ISEGemini–
those that may be withheld from the 2017–13); Securities Exchange Act Release No.
announce the date for the retirement of 80326 (March 29, 2017), 82 FR 16460 (April 4,
public in accordance with the
mstockstill on DSK30JT082PROD with NOTICES
COATS in a regulatory notice that will 2017) (SR–ISEMercury–2017–05); and Securities
provisions of 5 U.S.C. 552, will be be published once the options Exchange Act Release No. 80325 (March 29, 2017),
available for Web site viewing and exchanges determine that the thresholds 82 FR 16445 (April 4, 2017) (SR–ISE–2017–25).
4 National Stock Exchange, Inc. has been renamed
printing in the Commission’s Public for accuracy and reliability described NYSE National, Inc. See Securities Exchange Act
Reference Room, 100 F Street NE., Release No. 79902 (January 30, 2017), 82 FR 9258
Washington, DC 20549 on official 35 17 CFR 200.30–3(a)(12). (February 3, 2017) (SR–NSX–2016–16).
business days between the hours of 1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78k–1.
10:00 a.m. and 3:00 p.m. Copies of such 2 17 CFR 240.19b–4. 6 17 CFR 242.608.
VerDate Sep<11>2014 18:32 May 31, 2017 Jkt 241001 PO 00000 Frm 00220 Fmt 4703 Sfmt 4703 E:\FR\FM\01JNN1.SGM 01JNN1](https://thefederalregister.org/doc/82_FR_25543/page/5.svg)
Document Created: 2017-06-01 03:05:00
Document Modified: 2017-06-01 03:05:00
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 25439 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR