82_FR_26634 82 FR 26526 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing of a Proposed Rule Change To Adopt Exchange Rule 1713 Consolidated Audit Trail-Fee Dispute Resolution

82 FR 26526 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing of a Proposed Rule Change To Adopt Exchange Rule 1713 Consolidated Audit Trail-Fee Dispute Resolution

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 108 (June 7, 2017)

Page Range26526-26529
FR Document2017-11748

Federal Register, Volume 82 Issue 108 (Wednesday, June 7, 2017)
[Federal Register Volume 82, Number 108 (Wednesday, June 7, 2017)]
[Notices]
[Pages 26526-26529]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11748]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80837; File No. SR-MIAX-2017-24]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing of a Proposed Rule Change To Adopt 
Exchange Rule 1713 Consolidated Audit Trail--Fee Dispute Resolution

June 1, 2017.
    Pursuant to the provisions of section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'' or the ``Exchange Act'') \1\ and Rule 
19b-4 thereunder,\2\ notice is hereby given that, on May 23, 2017, 
Miami International Securities Exchange, LLC (``MIAX Options'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or the ``Commission'') a proposed rule change as described in 
Items I and II 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to adopt Exchange Rule 1713 
(Consolidated Audit Trail--Fee Dispute Resolution) to establish the 
procedures for resolving potential disputes related to CAT Fees charged 
to Industry Members.\3\ The text of the proposed rule change is 
available on the Exchange's Web site at http://www.miaxoptions.com/rule-filings, at MIAX's principal office, and at the Commission's 
Public Reference Room.
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    \3\ Unless otherwise specified, capitalized terms used in this 
rule filing are defined as set forth herein or in the Consolidated 
Audit Trail Funding Fees Rule, the CAT Compliance Rule Series or in 
the CAT NMS Plan.
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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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Bats BYX Exchange, Inc., Bats BZX Exchange, Inc., Bats EDGA 
Exchange, Inc., Bats EDGX Exchange, Inc., BOX Options Exchange LLC, C2 
Options Exchange, Incorporated, Chicago Board Options Exchange, 
Incorporated, Chicago Stock Exchange, Inc., Financial Industry 
Regulatory Authority, Inc. (``FINRA''), Investors' Exchange LLC, Miami 
International Securities Exchange, LLC, MIAX PEARL, LLC, NASDAQ BX, 
Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC,\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 National Market System Plan Governing the 
Consolidated Audit Trail (the ``CAT NMS Plan'' or ``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 consolidated audit trail (``CAT'') that would 
capture customer and order event information for orders in NMS 
Securities and OTC Equity Securities, across all markets, from the time 
of order inception through routing, cancellation, modification, or 
execution in a single consolidated data source. The Plan accomplishes 
this by creating CAT NMS, LLC (the ``Company''), of which each 
Participant is a member, to operate the CAT.\11\ Under the CAT NMS 
Plan, the Operating Committee of the Company (``Operating Committee'') 
has discretion to establish funding for the Company to operate the CAT, 
including establishing fees that the Participants will pay, and 
establishing fees for Industry Members that will be implemented by the 
Participants (``CAT Fees'').\12\ The Participants are required to file 
with the SEC under section 19(b) of the Exchange Act any such CAT Fees 
applicable to Industry Members that the Operating Committee 
approves.\13\ Accordingly, the Exchange has filed with the SEC to adopt 
the Consolidated Audit Trail Funding Fees, which will require Industry 
Members that are Exchange members to pay the CAT Fees determined by the 
Operating Committee.\14\ The Exchange submits this rule filing to adopt 
Rule 1713 (Consolidated Audit Trail--Fee Dispute Resolution) to 
establish the procedures for resolving potential disputes related to 
CAT Fees charged to Industry Members. Proposed Rule 1713 is described 
below.
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    \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\ See Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 
81 FR 30614 (May 17, 2016).
    \10\ See Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 
81 FR 84696 (Nov. 23, 2016) (``Approval Order'').
    \11\ The Plan also serves as the limited liability company 
agreement for the Company.
    \12\ Section 11.1(b) of the CAT NMS Plan.
    \13\ Id.
    \14\ See Securities Exchange Act Rel. No. 80675 (May 15, 2017), 
82 FR 23100 (May 19, 2017) (SR-MIAX-2017-18).
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(1) Definitions
    Paragraph (a) of Proposed Rule 1713 sets forth the definitions for 
Proposed Rule 1713. Paragraph (a)(1) of Proposed Rule 1713 states that, 
for purposes of

[[Page 26527]]

Rule 1713, the terms ``CAT NMS Plan'', ``Industry Member'', ``Operating 
Committee'', and ``Participant'' are defined as set forth in the Rule 
1701 (Consolidated Audit Trail Compliance Rule--Definitions), and the 
term ``CAT Fee'' is defined as set forth in the Consolidated Audit 
Trail Funding Fees. In addition, the Exchange proposes to add paragraph 
(a)(2) to Proposed Rule 1713. New paragraph (a)(2) would define the 
term ``Subcommittee'' to mean a subcommittee designated by the 
Operating Committee pursuant to the CAT NMS Plan. This definition is 
the same substantive definition as set forth in section 1.1 of the CAT 
NMS Plan.
(2) Fee Dispute Resolution
    Section 11.5 of the CAT NMS Plan requires Participants to adopt 
rules requiring that disputes with respect to fees charged to Industry 
Members pursuant to the CAT NMS Plan be determined by the Operating 
Committee or Subcommittee. Section 11.5 of the CAT NMS Plan also states 
that decisions by the Operating Committee or Subcommittee on such 
matters shall be binding on Industry Members, without prejudice to the 
right of any Industry Member to seek redress from the SEC pursuant to 
SEC Rule 608 or in any other appropriate forum. The Exchange proposes 
to adopt paragraph (b) of Proposed Rule 1713. Paragraph (b) of Proposed 
Rule 1713 states that disputes initiated by an Industry Member with 
respect to CAT Fees charged to such Industry Member pursuant to the 
Consolidated Audit Trail Funding Fees, including disputes related to 
the designated tier and the fee calculated pursuant to such tier, shall 
be resolved by the Operating Committee, or a Subcommittee designated by 
the Operating Committee, of the CAT NMS Plan, pursuant to the Fee 
Dispute Resolution Procedures adopted pursuant to the CAT NMS Plan and 
set forth in paragraph (c) of Proposed Rule 1713. Decisions on such 
matters shall be binding on Industry Members, without prejudice to the 
rights of any such Industry Member to seek redress from the SEC or in 
any other appropriate forum.
    The Operating Committee has adopted ``Fee Dispute Resolution 
Procedures'' governing the manner in which disputes regarding CAT Fees 
charged pursuant to the Consolidated Audit Trail Funding Fees will be 
addressed. These Fee Dispute Resolution Procedures, as they relate to 
Industry Members, are set forth in paragraph (c) of Proposed Rule 1713. 
Specifically, the Fee Dispute Resolution Procedures provide the 
procedure for Industry Members that dispute CAT Fees charged to such 
Industry Member pursuant to one or more of the Participants' 
Consolidated Audit Trail Funding Fees Rules, including disputes related 
to the designated tier and the fee calculated pursuant to such tier, to 
apply for an opportunity to be heard and to have the CAT Fees charged 
to such Industry Member reviewed. The Procedures are modeled after the 
adverse action procedures adopted by various exchanges,\15\ and will be 
posted on the Web site for the CAT NMS Plan Web site.\16\
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    \15\ See, e.g., Chapter X of BATS BZX Exchange, Inc. (Adverse 
Action); and Chapter X of NYSE National, Inc. (Adverse Action).
    \16\ The CAT NMS Plan Web site is www.catnmsplan.com.
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    Under these Procedures, an Industry Member that disputes CAT Fees 
charged to such Industry Member and that desires to have an opportunity 
to be heard with respect to such disputed CAT Fees must file a written 
application with the Company within 15 business days after being 
notified of such disputed CAT Fees. The application must identify the 
disputed CAT Fees, state the specific reasons why the applicant takes 
exception to such CAT Fees, and set forth the relief sought. In 
addition, if the applicant intends to submit any additional documents, 
statements, arguments or other material in support of the application, 
the same should be so stated and identified.
    The Company will refer applications for hearing and review promptly 
to the Subcommittee designated by the Operating Committee pursuant to 
section 4.12 of the CAT NMS Plan with responsibility for conducting the 
reviews of CAT Fee disputes pursuant to these Procedures. This 
Subcommittee will be referred to as the Fee Review Subcommittee. The 
members of the Fee Review Subcommittee will be subject to the 
provisions of section 4.3(d) of the CAT NMS Plan regarding recusal and 
Conflicts of Interest. The Fee Review Subcommittee will keep a record 
of the proceedings.
    The Fee Review Subcommittee will hold hearings promptly. The Fee 
Review Subcommittee will set a hearing date. The parties to the hearing 
shall furnish the Fee Review Subcommittee with all materials relevant 
to the proceedings at least 72 hours prior to the date of the hearing. 
Each party will have the right to inspect and copy the other party's 
materials prior to the hearing.
    The parties to the hearing will consist of the applicant and a 
representative of the Company who shall present the reasons for the 
action taken by the Company that allegedly aggrieved the applicant. The 
applicant is entitled to be accompanied, represented and advised by 
counsel at all stages of the proceedings.
    The Fee Review Subcommittee will determine all questions concerning 
the admissibility of evidence and will otherwise regulate the conduct 
of the hearing. Each of the parties will be permitted to make an 
opening statement, present witnesses and documentary evidence, cross 
examine opposing witnesses and present closing arguments orally or in 
writing as determined by the Fee Review Subcommittee. The Fee Review 
Subcommittee also will have the right to question all parties and 
witnesses to the proceeding. The Fee Review Subcommittee must keep a 
record of the hearing. The formal rules of evidence will not apply.
    The Fee Review Subcommittee must set forth its decision in writing 
and send the written decision to the parties to the proceeding. Such 
decisions will contain the reasons supporting the conclusions of the 
Fee Review Subcommittee.
    The decision of the Fee Review Subcommittee will be subject to 
review by the Operating Committee either on its own motion within 20 
business days after issuance of the decision or upon written request 
submitted by the applicant within 15 business days after issuance of 
the decision. The applicant's petition must be in writing and must 
specify the findings and conclusions to which the applicant objects, 
together with the reasons for such objections. Any objection to a 
decision not specified in writing will be considered to have been 
abandoned and may be disregarded. Parties may petition to submit a 
written argument to the Operating Committee and may request an 
opportunity to make an oral argument before the Operating Committee. 
The Operating Committee will have sole discretion to grant or deny 
either request.
    The Operating Committee will conduct the review. The review will be 
made upon the record and will be made after such further proceedings, 
if any, as the Operating Committee may order. Based upon such record, 
the Operating Committee may affirm, reverse or modify, in whole or in 
part, the decision of the Fee Review Subcommittee. The decision of the 
Operating Committee will be in writing, will be sent to the parties to 
the proceeding and will be final.
    The Procedures state that a final decision regarding the disputed 
CAT Fees by the Operating Committee, or the

[[Page 26528]]

Fee Review Subcommittee (if there is no review by the Operating 
Committee), must be provided within 90 days of the date on which the 
Industry Member filed a written application regarding disputed CAT Fees 
with the Company. The Operating Committee may extend the 90-day time 
limit at its discretion.
    In addition, the Procedures state that any notices or other 
documents may be served upon the applicant either personally or by 
leaving the same at its, his or her place of business or by deposit in 
the United States post office, postage prepaid, by registered or 
certified mail, addressed to the applicant at its, his or her last 
known business or residence address. The Procedures also state that any 
time limits imposed under the Procedures for the submission of answers, 
petitions or other materials may be extended by permission of the 
Operating Committee. All papers and documents relating to review by the 
Fee Review Subcommittee or the Operating Committee must be submitted to 
the Fee Review Subcommittee or Operating Committee, as applicable.
    The Procedures also note that decisions on such CAT Fee disputes 
made pursuant to these Procedures will be binding on Industry Members, 
without prejudice to the rights of any such Industry Member to seek 
redress from the SEC or in any other appropriate forum.
    Finally, an Industry Member that files a written application with 
the Company regarding disputed CAT Fees in accordance with these 
Procedures is not required to pay such disputed CAT Fees until the 
dispute is resolved in accordance with these Procedures, including any 
review by the SEC or in any other appropriate forum. For these 
purposes, the disputed CAT Fees means the amount of the invoiced CAT 
Fees that the Industry Member has asserted pursuant to these Procedures 
that such Industry Member does not owe to the Company. The Industry 
Member must pay any invoiced CAT Fees that are not disputed CAT Fees 
when due as set forth in the original invoice.
    Once the dispute regarding CAT Fees is resolved pursuant to these 
Procedures, if it is determined that the Industry Member owes any of 
the disputed CAT Fees, then the Industry Member must pay such disputed 
CAT Fees that are owed as well as interest on such disputed CAT Fees 
from the original due date (that is, 30 days after receipt of the 
original invoice of such CAT Fees) until such disputed CAT Fees are 
paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 
300 basis points, or (ii) the maximum rate permitted by applicable law.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \17\ in general, and furthers the 
provisions of section 6(b)(5) of the Act \18\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanisms of a free and open market and a national market system and, 
in general, to protect investors and the public interest, and is not 
designed to permit unfair discrimination between customers, issuers, 
brokers and dealers. The Exchange believes that the proposed rule 
change is consistent with the provisions of section 6(b)(4) of the 
Act,\19\ which requires that Exchange rules provide for the equitable 
allocation of reasonable dues, fees, and other charges among members, 
issuers and other persons using its facilities.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
    \19\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that this proposal is consistent with the Act 
because it implements, interprets or clarifies section 11.5 of the 
Plan, and is designed to assist the Exchange and its Industry Members 
in meeting regulatory obligations pursuant to the Plan. In approving 
the Plan, the SEC noted that the Plan ``is necessary and appropriate in 
the public interest, for the protection of investors and the 
maintenance of fair and orderly markets, to remove impediments to, and 
perfect the mechanism of a national market system, or is otherwise in 
furtherance of the purposes of the Act.'' \20\ To the extent that this 
proposal implements, interprets or clarifies the Plan and applies 
specific requirements to Industry Members, the Exchange believes that 
this proposal furthers the objectives of the Plan, as identified by the 
SEC, and is therefore consistent with the Act.
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    \20\ Approval Order at 84697.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    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 Act. The Exchange 
notes that the proposed rule change implements section 11.5 of the CAT 
NMS Plan approved by the Commission, and is designed to assist the 
Exchange in meeting its regulatory obligations pursuant to the Plan. 
Similarly, all national securities exchanges and FINRA are proposing 
this proposed rule to implement the requirements of the CAT NMS Plan. 
Therefore, this is not a competitive rule filing, and, therefore, it 
does not raise competition issues between and among the exchanges and 
FINRA.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

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 Comments

     Use 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-MIAX-2017-24 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-MIAX-2017-24. 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/

[[Page 26529]]

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-
MIAX-2017-24, and should be submitted on or before June 28, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-11748 Filed 6-6-17; 8:45 am]
BILLING CODE 8011-01-P



                                                26526                         Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Notices

                                                inspection and copying at the principal                 Web site at http://                                      Participants filed the Plan to comply
                                                office of the Exchange. All comments                    www.miaxoptions.com/rule-filings, at                     with Rule 613 of Regulation NMS under
                                                received will be posted without change;                 MIAX’s principal office, and at the                      the Exchange Act. The Plan was
                                                the Commission does not edit personal                   Commission’s Public Reference Room.                      published for comment in the Federal
                                                identifying information from                                                                                     Register on May 17, 2016,9 and
                                                submissions. You should submit only                     II. Self-Regulatory Organization’s
                                                                                                                                                                 approved by the Commission, as
                                                information that you wish to make                       Statement of the Purpose of, and
                                                                                                                                                                 modified, on November 15, 2016.10 The
                                                available publicly. All submissions                     Statutory Basis for, the Proposed Rule
                                                                                                                                                                 Plan is designed to create, implement
                                                should refer to File Number SR–CBOE–                    Change
                                                                                                                                                                 and maintain a consolidated audit trail
                                                2017–043, and should be submitted on                      In its filing with the Commission, the                 (‘‘CAT’’) that would capture customer
                                                or before June 28, 2017.                                Exchange included statements                             and order event information for orders
                                                  For the Commission, by the Division of                concerning the purpose of and basis for                  in NMS Securities and OTC Equity
                                                Trading and Markets, pursuant to delegated              the proposed rule change and discussed                   Securities, across all markets, from the
                                                authority.21                                            any comments it received on the                          time of order inception through routing,
                                                Eduardo A. Aleman,                                      proposed rule change. The text of these                  cancellation, modification, or execution
                                                Assistant Secretary.                                    statements may be examined at the                        in a single consolidated data source.
                                                [FR Doc. 2017–11743 Filed 6–6–17; 8:45 am]              places specified in Item IV below. The                   The Plan accomplishes this by creating
                                                BILLING CODE 8011–01–P
                                                                                                        Exchange has prepared summaries, set                     CAT NMS, LLC (the ‘‘Company’’), of
                                                                                                        forth in sections A, B, and C below, of                  which each Participant is a member, to
                                                                                                        the most significant aspects of such                     operate the CAT.11 Under the CAT NMS
                                                SECURITIES AND EXCHANGE                                 statements.                                              Plan, the Operating Committee of the
                                                COMMISSION                                              A. Self-Regulatory Organization’s                        Company (‘‘Operating Committee’’) has
                                                                                                        Statement of the Purpose of, and the                     discretion to establish funding for the
                                                [Release No. 34–80837; File No. SR–MIAX–
                                                2017–24]                                                Statutory Basis for, the Proposed Rule                   Company to operate the CAT, including
                                                                                                        Change                                                   establishing fees that the Participants
                                                Self-Regulatory Organizations; Miami                                                                             will pay, and establishing fees for
                                                International Securities Exchange LLC;                  1. Purpose                                               Industry Members that will be
                                                Notice of Filing of a Proposed Rule                        Bats BYX Exchange, Inc., Bats BZX                     implemented by the Participants (‘‘CAT
                                                Change To Adopt Exchange Rule 1713                      Exchange, Inc., Bats EDGA Exchange,                      Fees’’).12 The Participants are required
                                                Consolidated Audit Trail—Fee Dispute                    Inc., Bats EDGX Exchange, Inc., BOX                      to file with the SEC under section 19(b)
                                                Resolution                                              Options Exchange LLC, C2 Options                         of the Exchange Act any such CAT Fees
                                                                                                        Exchange, Incorporated, Chicago Board                    applicable to Industry Members that the
                                                June 1, 2017.                                                                                                    Operating Committee approves.13
                                                   Pursuant to the provisions of section                Options Exchange, Incorporated,
                                                                                                        Chicago Stock Exchange, Inc., Financial                  Accordingly, the Exchange has filed
                                                19(b)(1) of the Securities Exchange Act                                                                          with the SEC to adopt the Consolidated
                                                of 1934 (‘‘Act’’ or the ‘‘Exchange Act’’) 1             Industry Regulatory Authority, Inc.
                                                                                                        (‘‘FINRA’’), Investors’ Exchange LLC,                    Audit Trail Funding Fees, which will
                                                and Rule 19b–4 thereunder,2 notice is                                                                            require Industry Members that are
                                                hereby given that, on May 23, 2017,                     Miami International Securities
                                                                                                        Exchange, LLC, MIAX PEARL, LLC,                          Exchange members to pay the CAT Fees
                                                Miami International Securities                                                                                   determined by the Operating
                                                Exchange, LLC (‘‘MIAX Options’’ or the                  NASDAQ BX, Inc., Nasdaq GEMX, LLC,
                                                                                                        Nasdaq ISE, LLC, Nasdaq MRX, LLC,4                       Committee.14 The Exchange submits
                                                ‘‘Exchange’’) filed with the Securities                                                                          this rule filing to adopt Rule 1713
                                                and Exchange Commission (‘‘SEC’’ or                     NASDAQ PHLX LLC, The NASDAQ
                                                                                                        Stock Market LLC, New York Stock                         (Consolidated Audit Trail—Fee Dispute
                                                the ‘‘Commission’’) a proposed rule                                                                              Resolution) to establish the procedures
                                                change as described in Items I and II                   Exchange LLC, NYSE MKT LLC, NYSE
                                                                                                        Arca, Inc. and NYSE National, Inc.5                      for resolving potential disputes related
                                                below, which Items have been prepared                                                                            to CAT Fees charged to Industry
                                                by the Exchange. The Commission is                      (collectively, the ‘‘Participants’’) filed
                                                                                                        with the Commission, pursuant to                         Members. Proposed Rule 1713 is
                                                publishing this notice to solicit                                                                                described below.
                                                comments on the proposed rule change                    section 11A of the Exchange Act 6 and
                                                from interested persons.                                Rule 608 of Regulation NMS                               (1) Definitions
                                                                                                        thereunder,7 the National Market
                                                I. Self-Regulatory Organization’s                       System Plan Governing the                                  Paragraph (a) of Proposed Rule 1713
                                                Statement of the Terms of Substance of                  Consolidated Audit Trail (the ‘‘CAT                      sets forth the definitions for Proposed
                                                the Proposed Rule Change                                NMS Plan’’ or ‘‘Plan’’).8 The                            Rule 1713. Paragraph (a)(1) of Proposed
                                                                                                                                                                 Rule 1713 states that, for purposes of
                                                   The Exchange is filing a proposal to
                                                                                                          4 ISE Gemini, LLC, ISE Mercury, LLC and
                                                adopt Exchange Rule 1713                                                                                         Secretary, Commission, dated February 27, 2015.
                                                                                                        International Securities Exchange, LLC have been
                                                (Consolidated Audit Trail—Fee Dispute                   renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC,               On December 24, 2015, the Participants submitted
                                                Resolution) to establish the procedures                 and Nasdaq ISE, LLC, respectively. See Securities        an amendment to the CAT NMS Plan. See Letter
                                                for resolving potential disputes related                Exchange Act Rel. No. 80248 (Mar. 15, 2017), 82 FR       from Participants to Brent J. Fields, Secretary,
                                                                                                        14547 (Mar. 21, 2017); Securities Exchange Act Rel.      Commission, dated December 23, 2015.
                                                to CAT Fees charged to Industry                                                                                     9 See Securities Exchange Act Rel. No. 77724
                                                                                                        No. 80326 (Mar. 29, 2017), 82 FR 16460 (Apr. 4,
                                                Members.3 The text of the proposed rule                 2017); and Securities Exchange Act Rel. No. 80325        (Apr. 27, 2016), 81 FR 30614 (May 17, 2016).
                                                change is available on the Exchange’s                   (Mar. 29, 2017), 82 FR 16445 (Apr. 4, 2017).                10 See Securities Exchange Act Rel. No. 79318
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                          5 National Stock Exchange, Inc. has been renamed       (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016)
                                                  21 17 CFR 200.30–3(a)(12).                            NYSE National, Inc. See Securities Exchange Act          (‘‘Approval Order’’).
                                                  1 15 U.S.C. 78s(b)(1).                                Rel. No. 79902 (Jan. 30, 2017), 82 FR 9258 (Feb. 3,         11 The Plan also serves as the limited liability

                                                  2 17 CFR 240.19b–4.                                   2017).                                                   company agreement for the Company.
                                                  3 Unless otherwise specified, capitalized terms         6 15 U.S.C. 78k–1.                                        12 Section 11.1(b) of the CAT NMS Plan.
                                                                                                          7 17 CFR 242.608.                                         13 Id.
                                                used in this rule filing are defined as set forth
                                                herein or in the Consolidated Audit Trail Funding         8 See Letter from the Participants to Brent J.            14 See Securities Exchange Act Rel. No. 80675

                                                Fees Rule, the CAT Compliance Rule Series or in         Fields, Secretary, Commission, dated September 30,       (May 15, 2017), 82 FR 23100 (May 19, 2017) (SR–
                                                the CAT NMS Plan.                                       2014; and Letter from Participants to Brent J. Fields,   MIAX–2017–18).



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                                                                              Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Notices                                            26527

                                                Rule 1713, the terms ‘‘CAT NMS Plan’’,                  Industry Members that dispute CAT                      reasons for the action taken by the
                                                ‘‘Industry Member’’, ‘‘Operating                        Fees charged to such Industry Member                   Company that allegedly aggrieved the
                                                Committee’’, and ‘‘Participant’’ are                    pursuant to one or more of the                         applicant. The applicant is entitled to be
                                                defined as set forth in the Rule 1701                   Participants’ Consolidated Audit Trail                 accompanied, represented and advised
                                                (Consolidated Audit Trail Compliance                    Funding Fees Rules, including disputes                 by counsel at all stages of the
                                                Rule—Definitions), and the term ‘‘CAT                   related to the designated tier and the fee             proceedings.
                                                Fee’’ is defined as set forth in the                    calculated pursuant to such tier, to                      The Fee Review Subcommittee will
                                                Consolidated Audit Trail Funding Fees.                  apply for an opportunity to be heard                   determine all questions concerning the
                                                In addition, the Exchange proposes to                   and to have the CAT Fees charged to                    admissibility of evidence and will
                                                add paragraph (a)(2) to Proposed Rule                   such Industry Member reviewed. The                     otherwise regulate the conduct of the
                                                1713. New paragraph (a)(2) would                        Procedures are modeled after the                       hearing. Each of the parties will be
                                                define the term ‘‘Subcommittee’’ to                     adverse action procedures adopted by                   permitted to make an opening
                                                mean a subcommittee designated by the                   various exchanges,15 and will be posted                statement, present witnesses and
                                                Operating Committee pursuant to the                     on the Web site for the CAT NMS Plan                   documentary evidence, cross examine
                                                CAT NMS Plan. This definition is the                    Web site.16                                            opposing witnesses and present closing
                                                same substantive definition as set forth                  Under these Procedures, an Industry                  arguments orally or in writing as
                                                in section 1.1 of the CAT NMS Plan.                     Member that disputes CAT Fees charged                  determined by the Fee Review
                                                                                                        to such Industry Member and that                       Subcommittee. The Fee Review
                                                (2) Fee Dispute Resolution                                                                                     Subcommittee also will have the right to
                                                                                                        desires to have an opportunity to be
                                                  Section 11.5 of the CAT NMS Plan                      heard with respect to such disputed                    question all parties and witnesses to the
                                                requires Participants to adopt rules                    CAT Fees must file a written application               proceeding. The Fee Review
                                                requiring that disputes with respect to                 with the Company within 15 business                    Subcommittee must keep a record of the
                                                fees charged to Industry Members                        days after being notified of such                      hearing. The formal rules of evidence
                                                pursuant to the CAT NMS Plan be                         disputed CAT Fees. The application                     will not apply.
                                                determined by the Operating Committee                   must identify the disputed CAT Fees,                      The Fee Review Subcommittee must
                                                or Subcommittee. Section 11.5 of the                    state the specific reasons why the                     set forth its decision in writing and send
                                                CAT NMS Plan also states that decisions                 applicant takes exception to such CAT                  the written decision to the parties to the
                                                by the Operating Committee or                           Fees, and set forth the relief sought. In              proceeding. Such decisions will contain
                                                Subcommittee on such matters shall be                   addition, if the applicant intends to                  the reasons supporting the conclusions
                                                binding on Industry Members, without                                                                           of the Fee Review Subcommittee.
                                                                                                        submit any additional documents,
                                                prejudice to the right of any Industry                                                                            The decision of the Fee Review
                                                                                                        statements, arguments or other material
                                                Member to seek redress from the SEC                                                                            Subcommittee will be subject to review
                                                                                                        in support of the application, the same
                                                pursuant to SEC Rule 608 or in any                                                                             by the Operating Committee either on
                                                                                                        should be so stated and identified.
                                                other appropriate forum. The Exchange                                                                          its own motion within 20 business days
                                                                                                          The Company will refer applications                  after issuance of the decision or upon
                                                proposes to adopt paragraph (b) of
                                                                                                        for hearing and review promptly to the                 written request submitted by the
                                                Proposed Rule 1713. Paragraph (b) of
                                                                                                        Subcommittee designated by the                         applicant within 15 business days after
                                                Proposed Rule 1713 states that disputes
                                                                                                        Operating Committee pursuant to                        issuance of the decision. The applicant’s
                                                initiated by an Industry Member with
                                                                                                        section 4.12 of the CAT NMS Plan with                  petition must be in writing and must
                                                respect to CAT Fees charged to such
                                                Industry Member pursuant to the                         responsibility for conducting the                      specify the findings and conclusions to
                                                Consolidated Audit Trail Funding Fees,                  reviews of CAT Fee disputes pursuant                   which the applicant objects, together
                                                including disputes related to the                       to these Procedures. This Subcommittee                 with the reasons for such objections.
                                                designated tier and the fee calculated                  will be referred to as the Fee Review                  Any objection to a decision not
                                                pursuant to such tier, shall be resolved                Subcommittee. The members of the Fee                   specified in writing will be considered
                                                by the Operating Committee, or a                        Review Subcommittee will be subject to                 to have been abandoned and may be
                                                Subcommittee designated by the                          the provisions of section 4.3(d) of the                disregarded. Parties may petition to
                                                Operating Committee, of the CAT NMS                     CAT NMS Plan regarding recusal and                     submit a written argument to the
                                                Plan, pursuant to the Fee Dispute                       Conflicts of Interest. The Fee Review                  Operating Committee and may request
                                                Resolution Procedures adopted                           Subcommittee will keep a record of the                 an opportunity to make an oral
                                                pursuant to the CAT NMS Plan and set                    proceedings.                                           argument before the Operating
                                                forth in paragraph (c) of Proposed Rule                   The Fee Review Subcommittee will                     Committee. The Operating Committee
                                                1713. Decisions on such matters shall be                hold hearings promptly. The Fee                        will have sole discretion to grant or
                                                binding on Industry Members, without                    Review Subcommittee will set a hearing                 deny either request.
                                                prejudice to the rights of any such                     date. The parties to the hearing shall                    The Operating Committee will
                                                Industry Member to seek redress from                    furnish the Fee Review Subcommittee                    conduct the review. The review will be
                                                the SEC or in any other appropriate                     with all materials relevant to the                     made upon the record and will be made
                                                forum.                                                  proceedings at least 72 hours prior to                 after such further proceedings, if any, as
                                                  The Operating Committee has                           the date of the hearing. Each party will               the Operating Committee may order.
                                                adopted ‘‘Fee Dispute Resolution                        have the right to inspect and copy the                 Based upon such record, the Operating
                                                Procedures’’ governing the manner in                    other party’s materials prior to the                   Committee may affirm, reverse or
                                                which disputes regarding CAT Fees                       hearing.                                               modify, in whole or in part, the decision
                                                charged pursuant to the Consolidated                      The parties to the hearing will consist
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                                                                                                                                                               of the Fee Review Subcommittee. The
                                                Audit Trail Funding Fees will be                        of the applicant and a representative of               decision of the Operating Committee
                                                addressed. These Fee Dispute                            the Company who shall present the                      will be in writing, will be sent to the
                                                Resolution Procedures, as they relate to                                                                       parties to the proceeding and will be
                                                                                                          15 See, e.g., Chapter X of BATS BZX Exchange,
                                                Industry Members, are set forth in                                                                             final.
                                                                                                        Inc. (Adverse Action); and Chapter X of NYSE
                                                paragraph (c) of Proposed Rule 1713.                    National, Inc. (Adverse Action).                          The Procedures state that a final
                                                Specifically, the Fee Dispute Resolution                  16 The CAT NMS Plan Web site is                      decision regarding the disputed CAT
                                                Procedures provide the procedure for                    www.catnmsplan.com.                                    Fees by the Operating Committee, or the


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                                                26528                         Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Notices

                                                Fee Review Subcommittee (if there is no                 300 basis points, or (ii) the maximum                  CAT NMS Plan approved by the
                                                review by the Operating Committee),                     rate permitted by applicable law.                      Commission, and is designed to assist
                                                must be provided within 90 days of the                                                                         the Exchange in meeting its regulatory
                                                                                                        2. Statutory Basis
                                                date on which the Industry Member                                                                              obligations pursuant to the Plan.
                                                filed a written application regarding                      The Exchange believes that the                      Similarly, all national securities
                                                disputed CAT Fees with the Company.                     proposed rule change is consistent with                exchanges and FINRA are proposing
                                                The Operating Committee may extend                      section 6(b) of the Act 17 in general, and             this proposed rule to implement the
                                                the 90-day time limit at its discretion.                furthers the provisions of section 6(b)(5)             requirements of the CAT NMS Plan.
                                                   In addition, the Procedures state that               of the Act 18 in particular, in that it is             Therefore, this is not a competitive rule
                                                any notices or other documents may be                   designed to prevent fraudulent and                     filing, and, therefore, it does not raise
                                                served upon the applicant either                        manipulative acts and practices, to                    competition issues between and among
                                                personally or by leaving the same at its,               promote just and equitable principles of               the exchanges and FINRA.
                                                his or her place of business or by                      trade, to foster cooperation and
                                                                                                        coordination with persons engaged in                   C. Self-Regulatory Organization’s
                                                deposit in the United States post office,                                                                      Statement on Comments on the
                                                postage prepaid, by registered or                       facilitating transactions in securities, to
                                                                                                        remove impediments to and perfect the                  Proposed Rule Change Received From
                                                certified mail, addressed to the                                                                               Members, Participants, or Others
                                                applicant at its, his or her last known                 mechanisms of a free and open market
                                                business or residence address. The                      and a national market system and, in                     Written comments were neither
                                                Procedures also state that any time                     general, to protect investors and the                  solicited nor received.
                                                limits imposed under the Procedures for                 public interest, and is not designed to
                                                                                                                                                               III. Date of Effectiveness of the
                                                the submission of answers, petitions or                 permit unfair discrimination between
                                                                                                                                                               Proposed Rule Change and Timing for
                                                other materials may be extended by                      customers, issuers, brokers and dealers.
                                                                                                                                                               Commission Action
                                                permission of the Operating Committee.                  The Exchange believes that the
                                                All papers and documents relating to                    proposed rule change is consistent with                   Within 45 days of the date of
                                                review by the Fee Review Subcommittee                   the provisions of section 6(b)(4) of the               publication of this notice in the Federal
                                                or the Operating Committee must be                      Act,19 which requires that Exchange                    Register or within such longer period
                                                submitted to the Fee Review                             rules provide for the equitable                        up to 90 days (i) as the Commission may
                                                Subcommittee or Operating Committee,                    allocation of reasonable dues, fees, and               designate if it finds such longer period
                                                as applicable.                                          other charges among members, issuers                   to be appropriate and publishes its
                                                   The Procedures also note that                        and other persons using its facilities.                reasons for so finding or (ii) as to which
                                                decisions on such CAT Fee disputes                         The Exchange believes that this                     the Exchange consents, the Commission
                                                made pursuant to these Procedures will                  proposal is consistent with the Act                    will:
                                                                                                        because it implements, interprets or                      (A) By order approve or disapprove
                                                be binding on Industry Members,
                                                                                                        clarifies section 11.5 of the Plan, and is             such proposed rule change, or
                                                without prejudice to the rights of any
                                                                                                        designed to assist the Exchange and its                   (B) institute proceedings to determine
                                                such Industry Member to seek redress
                                                                                                        Industry Members in meeting regulatory                 whether the proposed rule change
                                                from the SEC or in any other
                                                                                                        obligations pursuant to the Plan. In                   should be disapproved.
                                                appropriate forum.
                                                   Finally, an Industry Member that files               approving the Plan, the SEC noted that                 IV. Solicitation of Comments
                                                a written application with the Company                  the Plan ‘‘is necessary and appropriate
                                                                                                        in the public interest, for the protection               Interested persons are invited to
                                                regarding disputed CAT Fees in                                                                                 submit written data, views, and
                                                accordance with these Procedures is not                 of investors and the maintenance of fair
                                                                                                        and orderly markets, to remove                         arguments concerning the foregoing,
                                                required to pay such disputed CAT Fees                                                                         including whether the proposed rule
                                                until the dispute is resolved in                        impediments to, and perfect the
                                                                                                        mechanism of a national market system,                 change is consistent with the Act.
                                                accordance with these Procedures,                                                                              Comments may be submitted by any of
                                                including any review by the SEC or in                   or is otherwise in furtherance of the
                                                                                                        purposes of the Act.’’ 20 To the extent                the following methods:
                                                any other appropriate forum. For these
                                                purposes, the disputed CAT Fees means                   that this proposal implements,                         Electronic Comments
                                                                                                        interprets or clarifies the Plan and
                                                the amount of the invoiced CAT Fees                                                                              • Use the Commission’s Internet
                                                that the Industry Member has asserted                   applies specific requirements to
                                                                                                                                                               comment form (http://www.sec.gov/
                                                pursuant to these Procedures that such                  Industry Members, the Exchange
                                                                                                                                                               rules/sro.shtml); or
                                                                                                        believes that this proposal furthers the
                                                Industry Member does not owe to the                                                                              • Send an email to rule-comments@
                                                Company. The Industry Member must                       objectives of the Plan, as identified by
                                                                                                                                                               sec.gov. Please include File Number SR–
                                                pay any invoiced CAT Fees that are not                  the SEC, and is therefore consistent with
                                                                                                                                                               MIAX–2017–24 on the subject line.
                                                disputed CAT Fees when due as set                       the Act.
                                                forth in the original invoice.                                                                                 Paper Comments
                                                                                                        B. Self-Regulatory Organization’s
                                                   Once the dispute regarding CAT Fees                  Statement on Burden on Competition                       • Send paper comments in triplicate
                                                is resolved pursuant to these                                                                                  to Secretary, Securities and Exchange
                                                                                                          The Exchange does not believe that
                                                Procedures, if it is determined that the                                                                       Commission, 100 F Street NE.,
                                                                                                        the proposed rule change will result in
                                                Industry Member owes any of the                                                                                Washington, DC 20549–1090.
                                                                                                        any burden on competition that is not
                                                disputed CAT Fees, then the Industry                    necessary or appropriate in furtherance                All submissions should refer to File
                                                Member must pay such disputed CAT                                                                              Number SR–MIAX–2017–24. This file
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                                                                                                        of the purposes of the Act. The
                                                Fees that are owed as well as interest on               Exchange notes that the proposed rule                  number should be included on the
                                                such disputed CAT Fees from the                         change implements section 11.5 of the                  subject line if email is used. To help the
                                                original due date (that is, 30 days after                                                                      Commission process and review your
                                                receipt of the original invoice of such                   17 15 U.S.C. 78f(b).                                 comments more efficiently, please use
                                                CAT Fees) until such disputed CAT                         18 15 U.S.C. 78f(b)(5).                              only one method. The Commission will
                                                Fees are paid at a per annum rate equal                   19 15 U.S.C. 78f(b)(4).                              post all comments on the Commission’s
                                                to the lesser of (i) the Prime Rate plus                  20 Approval Order at 84697.                          Internet Web site (http://www.sec.gov/


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                                                                               Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Notices                                                     26529

                                                rules/sro.shtml). Copies of the                         comments on the proposed rule change                   Arca, Inc. and NYSE National, Inc.5
                                                submission, all subsequent                              from interested persons.                               (collectively, the ‘‘Participants’’) filed
                                                amendments, all written statements                                                                             with the Commission, pursuant to
                                                                                                        I. Self-Regulatory Organization’s
                                                with respect to the proposed rule                                                                              Section 11A of the Exchange Act 6 and
                                                                                                        Statement of the Terms of Substance of
                                                change that are filed with the                                                                                 Rule 608 of Regulation NMS
                                                                                                        the Proposed Rule Change
                                                Commission, and all written                                                                                    thereunder,7 the National Market
                                                communications relating to the                             The Exchange filed a proposal to                    System Plan Governing the
                                                proposed rule change between the                        adopt Rule 4.17 (Consolidated Audit                    Consolidated Audit Trail (the ‘‘CAT
                                                Commission and any person, other than                   Trail—Fee Dispute Resolution) to                       NMS Plan’’ or ‘‘Plan’’).8 The
                                                those that may be withheld from the                     establish the procedures for resolving                 Participants filed the Plan to comply
                                                public in accordance with the                           potential disputes related to CAT Fees                 with Rule 613 of Regulation NMS under
                                                provisions of 5 U.S.C. 552, will be                     charged to Industry Members.3                          the Exchange Act. The Plan was
                                                available for Web site viewing and                         The text of the proposed rule change                published for comment in the Federal
                                                printing in the Commission’s Public                     is available at the Exchange’s Web site                Register on May 17, 2016,9 and
                                                Reference Room, 100 F Street NE.,                       at www.bats.com, at the principal office               approved by the Commission, as
                                                Washington, DC 20549, on official                       of the Exchange, and at the                            modified, on November 15, 2016.10 The
                                                business days between the hours of                      Commission’s Public Reference Room.                    Plan is designed to create, implement
                                                10:00 a.m. and 3:00 p.m. Copies of the                  II. Self-Regulatory Organization’s                     and maintain a consolidated audit trail
                                                filing also will be available for                       Statement of the Purpose of, and                       (‘‘CAT’’) that would capture customer
                                                inspection and copying at the principal                 Statutory Basis for, the Proposed Rule                 and order event information for orders
                                                office of the Exchange. All comments                    Change                                                 in NMS Securities and OTC Equity
                                                received will be posted without change;                                                                        Securities, across all markets, from the
                                                                                                           In its filing with the Commission, the              time of order inception through routing,
                                                the Commission does not edit personal
                                                                                                        Exchange included statements                           cancellation, modification, or execution
                                                identifying information from
                                                                                                        concerning the purpose of and basis for                in a single consolidated data source.
                                                submissions. You should submit only
                                                                                                        the proposed rule change and discussed                 The Plan accomplishes this by creating
                                                information that you wish to make
                                                                                                        any comments it received on the                        CAT NMS, LLC (the ‘‘Company’’), of
                                                available publicly. All submissions
                                                                                                        proposed rule change. The text of these                which each Participant is a member, to
                                                should refer to File Number SR–MIAX–
                                                                                                        statements may be examined at the                      operate the CAT.11 Under the CAT NMS
                                                2017–24, and should be submitted on or
                                                                                                        places specified in Item IV below. The                 Plan, the Operating Committee of the
                                                before June 28, 2017.
                                                                                                        Exchange has prepared summaries, set                   Company (‘‘Operating Committee’’) has
                                                  For the Commission, by the Division of                forth in Sections A, B, and C below, of
                                                Trading and Markets, pursuant to delegated                                                                     discretion to establish funding for the
                                                                                                        the most significant parts of such                     Company to operate the CAT, including
                                                authority.21                                            statements.
                                                Eduardo A. Aleman,                                                                                             establishing fees that the Participants
                                                                                                        A. Self-Regulatory Organization’s                      will pay, and establishing fees for
                                                Assistant Secretary.
                                                                                                        Statement of the Purpose of, and                       Industry Members that will be
                                                [FR Doc. 2017–11748 Filed 6–6–17; 8:45 am]
                                                                                                        Statutory Basis for, the Proposed Rule                 implemented by the Participants (‘‘CAT
                                                BILLING CODE 8011–01–P
                                                                                                        Change                                                 Fees’’).12 The Participants are required
                                                                                                                                                               to file with the SEC under Section 19(b)
                                                                                                        1. Purpose                                             of the Exchange Act any such CAT Fees
                                                SECURITIES AND EXCHANGE                                    Bats BYX Exchange, Inc., Bats BZX                   applicable to Industry Members that the
                                                COMMISSION                                              Exchange, Inc., Bats EDGA Exchange,                    Operating Committee approves.13
                                                [Release No. 34–80833; File No. SR–                     Inc., Bats EDGX Exchange, Inc., BOX                    Accordingly, the Exchange has filed a
                                                BatsEDGX–2017–24]                                       Options Exchange LLC, C2 Options                       proposed rule change with the SEC to
                                                                                                        Exchange, Incorporated, Chicago Board                  adopt the Consolidated Audit Trail
                                                Self-Regulatory Organizations; Bats                     Options Exchange, Incorporated,                        Funding Fees, which will require
                                                EDGX Exchange, Inc.; Notice of Filing                   Chicago Stock Exchange, Inc., Financial                Industry Members that are Members of
                                                of a Proposed Rule Change To Adopt                      Industry Regulatory Authority, Inc.                    the Exchange to pay the CAT Fees
                                                Rule 4.17, Consolidated Audit Trail—                    (‘‘FINRA’’), Investors’ Exchange LLC,
                                                Fee Dispute Resolution                                  Miami International Securities                            5 National Stock Exchange, Inc. has been renamed

                                                                                                        Exchange, LLC, MIAX PEARL, LLC,                        NYSE National, Inc. See Securities Exchange Act
                                                June 1, 2017.                                                                                                  Rel. No. 79902 (Jan. 30, 2017), 82 FR 9258 (Feb. 3,
                                                                                                        NASDAQ BX, Inc., Nasdaq GEMX, LLC,
                                                   Pursuant to Section 19(b)(1) of the                  Nasdaq ISE, LLC, Nasdaq MRX, LLC,4
                                                                                                                                                               2017).
                                                                                                                                                                  6 15 U.S.C. 78k–1.
                                                Securities Exchange Act of 1934 (the                    NASDAQ PHLX LLC, The NASDAQ                               7 17 CFR 242.608.
                                                ‘‘Act’’ or ‘‘Exchange Act’’),1 and Rule                 Stock Market LLC, New York Stock                          8 See Letter from the Participants to Brent J.
                                                19b–4 thereunder,2 notice is hereby                     Exchange LLC, NYSE MKT LLC, NYSE                       Fields, Secretary, Commission, dated September 30,
                                                given that on May 23, 2017, Bats EDGX                                                                          2014; and Letter from Participants to Brent J. Fields,
                                                Exchange, Inc. (the ‘‘Exchange’’ or                       3 Unless otherwise specified, capitalized terms      Secretary, Commission, dated February 27, 2015.
                                                ‘‘EDGX’’) filed with the Securities and                                                                        On December 24, 2015, the Participants submitted
                                                                                                        used in this rule filing are defined as set forth
                                                                                                                                                               an amendment to the CAT NMS Plan. See Letter
                                                Exchange Commission (‘‘Commission’’                     herein, or in the Consolidated Audit Trail Funding
                                                                                                                                                               from Participants to Brent J. Fields, Secretary,
                                                or ‘‘SEC’’) the proposed rule change as                 Fees Rule, the CAT Compliance Rule Series or in
                                                                                                                                                               Commission, dated December 23, 2015.
                                                                                                        the CAT NMS Plan.
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                                                described in Items I and II below, which                  4 ISE Gemini, LLC, ISE Mercury, LLC and
                                                                                                                                                                  9 Securities Exchange Act Rel. No. 77724 (Apr.

                                                Items have been prepared by the                         International Securities Exchange, LLC have been
                                                                                                                                                               27, 2016), 81 FR 30614 (May 17, 2016).
                                                                                                                                                                  10 Securities Exchange Act Rel. No. 79318 (Nov.
                                                Exchange. The Commission is                             renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC,
                                                                                                                                                               15, 2016), 81 FR 84696 (Nov. 23, 2016) (‘‘Approval
                                                publishing this notice to solicit                       and Nasdaq ISE, LLC, respectively. See Securities
                                                                                                                                                               Order’’).
                                                                                                        Exchange Act Rel. No. 80248 (Mar. 15, 2017), 82 FR
                                                                                                                                                                  11 The Plan also serves as the limited liability
                                                                                                        14547 (Mar. 21, 2017); Securities Exchange Act Rel.
                                                  21 17 CFR 200.30–3(a)(12).                                                                                   company agreement for the Company.
                                                                                                        No. 80326 (Mar. 29, 2017), 82 FR 16460 (Apr. 4,
                                                  1 15 U.S.C. 78s(b)(1).                                                                                          12 Section 11.1(b) of the CAT NMS Plan.
                                                                                                        2017); and Securities Exchange Act Rel. No. 80325
                                                  2 17 CFR 240.19b–4.                                   (Mar. 29, 2017), 82 FR 16445 (Apr. 4, 2017).              13 Id.




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Document Created: 2017-06-07 02:00:33
Document Modified: 2017-06-07 02:00:33
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 26526 

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