82 FR 27736 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Exchange's Authority To Grant Exemptions From the OATS Requirements

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 115 (June 16, 2017)

Page Range		27736-27738
FR Document		2017-12454

Federal Register, Volume 82 Issue 115 (Friday, June 16, 2017)

[Federal Register Volume 82, Number 115 (Friday, June 16, 2017)]
[Notices]
[Pages 27736-27738]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-12454]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80902; File No. SR-NYSEMKT-2017-35]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Extend the
Exchange's Authority To Grant Exemptions From the OATS Requirements

June 12, 2017.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 2, 2017, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'')
filed with the Securities and Exchange Commission (the ``Commission'')
the 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 proposes to amend Rule 7470--Equities (Exemption to
the Order Recording and Data Transmission Requirements) to extend until
November 15, 2019 the ability to exempt certain members from the
recording and order data transmission requirements of Rules 7440--
Equities and 7450--Equities, respectively, for manual orders. 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, of the most
significant parts of such statements.

[[Page 27737]]

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Exchange's Rule 7400 Series consists of Rules 7410--Equities
through 7470--Equities and sets forth the recording and reporting
requirements of the Order Audit Trail System (``OATS'') Rules. The OATS
Rules require all Exchange member organizations and associated persons
to record in electronic form and report to the Financial Industry
Regulatory Authority, Inc. (``FINRA''), on a daily basis, certain
information with respect to orders originated, received, transmitted,
modified, canceled, or executed by members in all NMS stocks, as that
term is defined in Rule 600(b)(47) of Regulation NMS,\3\ traded on the
Exchange. This information is used by FINRA staff to conduct
surveillance and investigations of member firms for violations of FINRA
rules and federal securities laws. Rule 7470--Equities provide the
Exchange with the authority to exempt certain members from the
recording and reporting requirements and from the recording and order
data transmission requirements of Rules 7440--Equities and 7450--
Equities, respectively, for manual orders, if such exemption is
consistent with the protection of investors and the public interest,
and the member organization meets the criteria set forth in paragraph
(a) of the Rule.\4\
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\3\ 17 CFR 242.600(b)(47).
\4\ The criteria are as follows: (1) The member organization and
current control affiliates and associated persons have not been
subject within the last five years to any final disciplinary action,
and within the last ten years to any disciplinary action involving
fraud; (2) the member organization has annual revenues of less than
$2 million; (3) the member organization does not conduct any market
making activities in NMS stocks; (4) the member organization does
not execute principal transactions with its customers (with limited
exception for principal transactions executed pursuant to error
corrections); and (5) the member organization does not conduct
clearing or carrying activities for other firms.
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Rule 7470--Equities contains a sunset provision, which was July 10,
2015. In June 2015, FINRA filed a proposed rule change to extend the
sunset provision until July 10, 2019.\5\ The Exchange proposes to amend
Rule 7470 to extend the provision until November 15, 2019. The proposed
change would correct an oversight in not filing when the sunset
provision [sic] in 2015.
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\5\ See Securities Exchange Act Release No. 75160 (June 11,
2015), 80 FR 34727 (June 17, 2015) (SR-FINRA-2015-016).
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The Exchange believes it would be appropriate to extend the sunset
provision in Rule 7470--Equities to November 15, 2019 rather than the
July 10, 2019 date in the FINRA Rule. At the time FINRA filed its
proposed rule change, the National Market System Plan Governing the
Consolidated Audit Trail (the ``CAT NMS Plan'') \6\ had not been
approved by the Commission. The CAT NMS Plan was approved by the
Commission, as modified, on November 15, 2016.\7\ On March 21, 2017,
the Commission approved the Exchange's new Rule 6800 Series to
implement provisions of the CAT NMS Plan that are applicable to
Exchange member organizations.\8\ Rule 6895(c)(2) requires each
Industry Member that is a Small Industry Member to record and report
the Industry Member Data to the Central Repository by November 15,
2019.
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\6\ Unless otherwise specified, capitalized terms used in this
rule filing are defined as set forth herein or in the CAT NMS Plan.
\7\ Securities Exchange Act Release No. 79318 (November 15,
2016), 81 FR 84696 (November 23, 2016) (Order Approving the National
Market System Plan Governing the Consolidated Audit Trail).
\8\ 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).
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The Exchange believes that extending the sunset provision in Rule
7470 to the same date that all Small Industry Members must report to
the CAT is appropriate and would permit such firms relying on the
exemption to continue to do so provided they meet the criteria to
qualify until that time. The Exchange is not proposing any substantive
changes to the criteria necessary for firms to qualify for an exemption
and notes that all of those member organizations currently reporting to
OATS or relying on an exemption from OATS reporting will be reporting
to the CAT by November 15, 2019.\9\
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\9\ Rule 6895(c)(1) requires each Industry Member (other than a
Small Industry Member) to record and report the Industry Member Data
to the Central Repository by November 15, 2018.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\11\ in particular, because 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, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general to protect investors and the public interest.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes that amending Rule 7470--
Equities to extend until November 15, 2019 the ability to exempt
certain members from the recording and order data transmission
requirements of Rules 7440--Equities and 7450--Equities, respectively,
for manual orders, is consistent with Section 6(b)(5) of the Act \12\
because it would enable the Exchange to exempt manual orders received
by certain small firms from the OATS Rules and avoid imposing
potentially unnecessary expense or hardship on those firms that qualify
for the exemption as they transition to reporting order information to
the CAT Central Repository. As noted, the proposed sunset provision is
the same date that all Small Industry Members must report to the CAT.
Further, the Exchange is not proposing any substantive changes to the
criteria necessary for firms to qualify for an exemption, which will
continue to ensure that only those firms with limited revenue, no
recent final disciplinary actions, and limited business models will
remain eligible for the exemption. The Exchange accordingly believes
that the proposed rule change is consistent with the protection of
investors and the public interest.
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\12\ 15 U.S.C. 78f(b)(5).
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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
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, as noted above,
would enable the Exchange to exempt manual orders received by certain
small firms from the OATS reporting requirements through November 15,
2019, the same date that all Small Industry Members must report to the
CAT, and thereby avoid imposing potentially unnecessary expense or
hardship on those firms that qualify for the exemption as they
transition to reporting order information to the CAT Central
Repository.

[[Page 27738]]

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

No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\15\
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
\15\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
provide the Commission with written notice of its intent to file the
proposed rule change, along with a brief description and the text of
the proposed rule change, at least five business days prior to the
date of filing of the proposed rule change, or such shorter time as
designated by the Commission. The Exchange has complied with this
requirement.
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposed rule change will become operative
immediately upon filing. In support of its request, the Exchange stated
that waiver of the operative delay would continue to enable the
Exchange to grant small firms exemptions from the OATS requirements as
those firms are preparing to report information to the CAT Central
Repository, thereby avoiding potentially unnecessary expense or
hardship on firms that qualify for the exemption.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Absent such action, a small firm that otherwise would qualify for an
exemption would have to comply with the Exchange requirements to record
and report manual orders to OATS because the Exchange would not have
the authority to grant an exemption during the 30-day pre-operative
period. The Commission agrees with the Exchange that waiving the 30-day
operative delay would enable the Exchange, in appropriate cases, to
prevent unnecessary expense being imposed on small firms. Therefore,
the Commission hereby waives the operative delay and designates the
proposed rule change operative upon filing.\16\
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\16\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) of the Act \17\ to determine whether the proposed
rule change should be approved or disapproved.
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\17\ 15 U.S.C. 78s(b)(2)(B).
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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 rule-comments@sec.gov. Please include
File Number SR-NYSEMKT-2017-35 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-NYSEMKT-2017-35. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEMKT-2017-35 and should
be submitted on or before July 7, 2017.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Eduardo A. Aleman,
Assistant Secretary.
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\18\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2017-12454 Filed 6-15-17; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Notices 27737

A. Self-Regulatory Organization’s The Exchange believes it would be and to remove impediments to and
Statement of the Purpose of, and the appropriate to extend the sunset perfect the mechanism of a free and
Statutory Basis for, the Proposed Rule provision in Rule 7470—Equities to open market and a national market
Change November 15, 2019 rather than the July system, and, in general to protect
10, 2019 date in the FINRA Rule. At the investors and the public interest.
1. Purpose time FINRA filed its proposed rule
In particular, the Exchange believes
The Exchange’s Rule 7400 Series change, the National Market System
Plan Governing the Consolidated Audit that amending Rule 7470—Equities to
consists of Rules 7410—Equities extend until November 15, 2019 the
through 7470—Equities and sets forth Trail (the ‘‘CAT NMS Plan’’) 6 had not
been approved by the Commission. The ability to exempt certain members from
the recording and reporting the recording and order data
requirements of the Order Audit Trail CAT NMS Plan was approved by the
Commission, as modified, on November transmission requirements of Rules
System (‘‘OATS’’) Rules. The OATS
15, 2016.7 On March 21, 2017, the 7440—Equities and 7450—Equities,
Rules require all Exchange member
organizations and associated persons to Commission approved the Exchange’s respectively, for manual orders, is
record in electronic form and report to new Rule 6800 Series to implement consistent with Section 6(b)(5) of the
the Financial Industry Regulatory provisions of the CAT NMS Plan that Act 12 because it would enable the
Authority, Inc. (‘‘FINRA’’), on a daily are applicable to Exchange member Exchange to exempt manual orders
basis, certain information with respect organizations.8 Rule 6895(c)(2) requires received by certain small firms from the
to orders originated, received, each Industry Member that is a Small OATS Rules and avoid imposing
transmitted, modified, canceled, or Industry Member to record and report potentially unnecessary expense or
executed by members in all NMS stocks, the Industry Member Data to the Central hardship on those firms that qualify for
as that term is defined in Rule Repository by November 15, 2019. the exemption as they transition to
The Exchange believes that extending reporting order information to the CAT
600(b)(47) of Regulation NMS,3 traded
the sunset provision in Rule 7470 to the
on the Exchange. This information is Central Repository. As noted, the
same date that all Small Industry
used by FINRA staff to conduct proposed sunset provision is the same
Members must report to the CAT is
surveillance and investigations of date that all Small Industry Members
appropriate and would permit such
member firms for violations of FINRA must report to the CAT. Further, the
firms relying on the exemption to
rules and federal securities laws. Rule Exchange is not proposing any
continue to do so provided they meet
7470—Equities provide the Exchange the criteria to qualify until that time. substantive changes to the criteria
with the authority to exempt certain The Exchange is not proposing any necessary for firms to qualify for an
members from the recording and substantive changes to the criteria exemption, which will continue to
reporting requirements and from the necessary for firms to qualify for an ensure that only those firms with
recording and order data transmission exemption and notes that all of those limited revenue, no recent final
requirements of Rules 7440—Equities member organizations currently disciplinary actions, and limited
and 7450—Equities, respectively, for reporting to OATS or relying on an business models will remain eligible for
manual orders, if such exemption is exemption from OATS reporting will be the exemption. The Exchange
consistent with the protection of reporting to the CAT by November 15, accordingly believes that the proposed
investors and the public interest, and 2019.9 rule change is consistent with the
the member organization meets the
criteria set forth in paragraph (a) of the 2. Statutory Basis protection of investors and the public
Rule.4 interest.
The Exchange believes that the
Rule 7470—Equities contains a sunset proposed rule change is consistent with B. Self-Regulatory Organization’s
provision, which was July 10, 2015. In Section 6(b) of the Act,10 in general, and Statement on Burden on Competition
June 2015, FINRA filed a proposed rule furthers the objectives of Section 6(b)(5)
change to extend the sunset provision of the Act,11 in particular, because it is The Exchange does not believe that
until July 10, 2019.5 The Exchange designed to prevent fraudulent and the proposed rule change will impose
proposes to amend Rule 7470 to extend manipulative acts and practices, to any burden on competition that is not
the provision until November 15, 2019. promote just and equitable principles of necessary or appropriate in furtherance
The proposed change would correct an trade, to foster cooperation and of the purposes of the Act. The
oversight in not filing when the sunset coordination with persons engaged in proposed change is not designed to
provision [sic] in 2015. facilitating transactions in securities, address any competitive issue but
rather, as noted above, would enable the
6 Unless otherwise specified, capitalized terms
3 17 CFR 242.600(b)(47). Exchange to exempt manual orders
used in this rule filing are defined as set forth
4 The criteria are as follows: (1) The member
herein or in the CAT NMS Plan.
received by certain small firms from the
organization and current control affiliates and 7 Securities Exchange Act Release No. 79318 OATS reporting requirements through
associated persons have not been subject within the
last five years to any final disciplinary action, and (November 15, 2016), 81 FR 84696 (November 23, November 15, 2019, the same date that
within the last ten years to any disciplinary action 2016) (Order Approving the National Market all Small Industry Members must report
involving fraud; (2) the member organization has System Plan Governing the Consolidated Audit
Trail). to the CAT, and thereby avoid imposing
annual revenues of less than $2 million; (3) the
member organization does not conduct any market
8 See Securities Exchange Act Release No. 80256 potentially unnecessary expense or
making activities in NMS stocks; (4) the member (March 15, 2017), 82 FR 14526 (March 21, 2017) hardship on those firms that qualify for
sradovich on DSK3GMQ082PROD with NOTICES

organization does not execute principal transactions (SR–NYSEMKT–2017–02) (Order Approving the exemption as they transition to
with its customers (with limited exception for Proposed Rule Changes to Adopt Consolidated
Audit Trail Compliance Rules). reporting order information to the CAT
principal transactions executed pursuant to error
corrections); and (5) the member organization does 9 Rule 6895(c)(1) requires each Industry Member Central Repository.
not conduct clearing or carrying activities for other (other than a Small Industry Member) to record and
firms. report the Industry Member Data to the Central
5 See Securities Exchange Act Release No. 75160 Repository by November 15, 2018.
10 15 U.S.C. 78f(b).
(June 11, 2015), 80 FR 34727 (June 17, 2015) (SR–
FINRA–2015–016). 11 15 U.S.C. 78f(b)(5). 12 15 U.S.C. 78f(b)(5).

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27738 Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Notices

C. Self-Regulatory Organization’s the Exchange, in appropriate cases, to those that may be withheld from the
Statement on Comments on the prevent unnecessary expense being public in accordance with the
Proposed Rule Change Received From imposed on small firms. Therefore, the provisions of 5 U.S.C. 552, will be
Members, Participants, or Others Commission hereby waives the available for Web site viewing and
No written comments were solicited operative delay and designates the printing in the Commission’s Public
or received with respect to the proposed proposed rule change operative upon Reference Room, 100 F Street NE.,
rule change. filing.16 Washington, DC 20549 on official
At any time within 60 days of the business days between the hours of
III. Date of Effectiveness of the filing of such proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the
Proposed Rule Change and Timing for Commission summarily may filing also will be available for
Commission Action temporarily suspend such rule change if inspection and copying at the principal
The Exchange has filed the proposed it appears to the Commission that such office of the Exchange. All comments
rule change pursuant to Section action is necessary or appropriate in the received will be posted without change;
19(b)(3)(A)(iii) of the Act 13 and Rule public interest, for the protection of the Commission does not edit personal
19b–4(f)(6) thereunder.14 Because the investors, or otherwise in furtherance of identifying information from
proposed rule change does not: (i) the purposes of the Act. If the submissions. You should submit only
Significantly affect the protection of Commission takes such action, the information that you wish to make
investors or the public interest; (ii) Commission shall institute proceedings available publicly. All submissions
impose any significant burden on under Section 19(b)(2)(B) of the Act 17 to should refer to File Number SR–
competition; and (iii) become operative determine whether the proposed rule NYSEMKT–2017–35 and should be
prior to 30 days from the date on which change should be approved or submitted on or before July 7, 2017.
it was filed, or such shorter time as the disapproved. For the Commission, by the Division of
Commission may designate, if IV. Solicitation of Comments Trading and Markets, pursuant to delegated
consistent with the protection of authority.18
Interested persons are invited to Eduardo A. Aleman,
investors and the public interest, the submit written data, views, and
proposed rule change has become Assistant Secretary.
arguments concerning the foregoing,
effective pursuant to Section 19(b)(3)(A) including whether the proposed rule [FR Doc. 2017–12454 Filed 6–15–17; 8:45 am]
of the Act and Rule 19b–4(f)(6)(iii) change is consistent with the Act. BILLING CODE 8011–01–P
thereunder.15 Comments may be submitted by any of
The Exchange has asked the the following methods:
Commission to waive the 30-day SECURITIES AND EXCHANGE
operative delay so that the proposed Electronic Comments COMMISSION
rule change will become operative • Use the Commission’s Internet
immediately upon filing. In support of Submission for OMB Review;
comment form (http://www.sec.gov/ Comment Request
its request, the Exchange stated that rules/sro.shtml); or
waiver of the operative delay would • Send an email to rule-comments@ Upon Written Request, Copies Available
continue to enable the Exchange to grant sec.gov. Please include File Number SR– From: Securities and Exchange
small firms exemptions from the OATS NYSEMKT–2017–35 on the subject line. Commission, Office of FOIA Services,
requirements as those firms are 100 F Street NE., Washington, DC
preparing to report information to the Paper Comments
20549–2736
CAT Central Repository, thereby • Send paper comments in triplicate
Extension:
avoiding potentially unnecessary to Secretary, Securities and Exchange Rule 15c2–11; SEC File No. 270–196, OMB
expense or hardship on firms that Commission, 100 F Street NE., Control No. 3235–0202
qualify for the exemption. Washington, DC 20549–1090.
Notice is hereby given that, pursuant
The Commission believes that All submissions should refer to File to the Paperwork Reduction Act of 1995
waiving the 30-day operative delay is Number SR–NYSEMKT–2017–35. This (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
consistent with the protection of file number should be included on the Securities and Exchange Commission
investors and the public interest. Absent subject line if email is used. To help the (‘‘Commission’’) has submitted to the
such action, a small firm that otherwise Commission process and review your Office of Management and Budget
would qualify for an exemption would comments more efficiently, please use (‘‘OMB’’) a request for approval of
have to comply with the Exchange only one method. The Commission will extension of the previously approved
requirements to record and report post all comments on the Commission’s collection of information provided for in
manual orders to OATS because the Internet Web site (http://www.sec.gov/ Rule 15c2–11, (17 CFR 240.15c2–11),
Exchange would not have the authority rules/sro.shtml). Copies of the under the Securities Exchange Act of
to grant an exemption during the 30-day submission, all subsequent 1934 (15 U.S.C. 78a et seq.) (‘‘Exchange
pre-operative period. The Commission amendments, all written statements Act’’).
agrees with the Exchange that waiving with respect to the proposed rule Rule 15c2–11 under the Exchange Act
the 30-day operative delay would enable change that are filed with the regulates the initiation or resumption of
Commission, and all written quotations in a quotation medium by a
13 15 U.S.C. 78s(b)(3)(A)(iii). communications relating to the broker-dealer for over-the-counter
14 17 CFR 240.19b–4(f)(6). proposed rule change between the
sradovich on DSK3GMQ082PROD with NOTICES

15 In addition, Rule 19b–4(f)(6)(iii) requires the
(‘‘OTC’’) securities. The Rule was
Exchange to provide the Commission with written
Commission and any person, other than designed primarily to prevent certain
notice of its intent to file the proposed rule change, manipulative and fraudulent trading
16 For purposes only of waiving the 30-day
along with a brief description and the text of the schemes that had arisen in connection
proposed rule change, at least five business days operative delay, the Commission has also
considered the proposed rule’s impact on
with the distribution and trading of
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the efficiency, competition, and capital formation. See unregistered securities issued by shell
Commission. The Exchange has complied with this 15 U.S.C. 78c(f).
requirement. 17 15 U.S.C. 78s(b)(2)(B). 18 17 CFR 200.30–3(a)(12).

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Document Created: 2017-06-16 00:52:38
Document Modified: 2017-06-16 00:52:38

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 27736