82 FR 31364 - Self-Regulatory Organizations; LCH SA; Order Approving Proposed Rule Change, as Amended by Amendment No. 1 Thereto, To Add Rules Related to the Clearing of CDX.NA.HY CDS
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 128 (July 6, 2017)
Federal Register Volume 82, Issue 128 (July 6, 2017)
| Page Range | 31364-31366 | |
| FR Document | 2017-14239 |
[Federal Register Volume 82, Number 128 (Thursday, July 6, 2017)] [Notices] [Pages 31364-31366] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-14239] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81056; File No. SR-LCH SA-2017-005] Self-Regulatory Organizations; LCH SA; Order Approving Proposed Rule Change, as Amended by Amendment No. 1 Thereto, To Add Rules Related to the Clearing of CDX.NA.HY CDS June 30, 2017. I. Introduction On April 28, 2017, Banque Centrale de Compensation, which conducts business under the name LCH SA (``LCH SA''), filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change (SR-LCH SA-2017-005) to amend LCH SA's CDS Margin Framework and CDSClear Default Fund Methodology in order to permit LCH SA to clear CDS contracts on the CDX.NA.HY index. On May 5, 2017, LCH SA filed Amendment No. 1.\3\ The proposed rule change was published in the Federal Register on May 17, 2017.\4\ The Commission received no comment letters regarding the proposed change. For the reasons discussed below, the Commission is approving the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ LCH SA filed Amendment No. 1 to replace the initial filing in its entirety in order to clarify certain changes to the CDSClear Margin Framework. \4\ Securities Exchange Act Release No. 34-80666 (May 11, 2017), 82 FR 22699 (May 17, 2017) (SR-LCH SA-2017-005) (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change LCH SA has proposed various changes to its CDS Margin Framework and CDSClear Default Fund Methodology for the purpose of permitting LCH SA to clear CDS contracts on the CDX.NA.HY index. A. Changes to CDS Margin Framework With respect to the CDS Margin Framework, LCH SA proposed to amend the short charge component of its margin methodology to provide a description of the purpose of the short charge, noting that it is intended to account for the probability of a credit event occurring during the period from the default of a Clearing Member to liquidation of the defaulting Clearing Member's portfolio, as well as to adjust the method for calculating the short charge to account for CDX.NA.HY index contracts. Under its current CDS Margin Framework, LCH SA calculates the short charge component by taking the larger of (1) a ``Global Short Charge,'' derived from the Clearing Member's top net short exposure with respect to any CDS contract and its top net short exposure among the three ``riskiest'' reference entities (of any type), i.e. those that are most likely to default, in the Clearing Member's portfolio, and (2) the top two net short exposures with respect to CDS contracts on senior financial entities.\5\ LCH SA believes that high yield entities are risker than senior financial entities, and as a result it proposed to introduce a ``High Yield Short Charge'' that would replace the top two net short exposures to CDS on senior financial entities in its approach to calculating the short charge.\6\ Consequently, the short charge under the proposed rule change would be the greater of (1) the ``Global Short Charge,'' as described above, and (2) a ``High Yield Short Charge,'' calculated from a member's top net short exposure (with respect to high yield CDS) and its top two net short exposures among the three ``riskiest'' reference entities in the high yield category in the Clearing Member's portfolio.\7\ --------------------------------------------------------------------------- \5\ Notice, 82 FR at 22700. \6\ Id. \7\ Id. --------------------------------------------------------------------------- LCH SA also proposed to make certain conforming changes throughout Section 4.1.1 of the CDS Margin Framework, which describes the ``net short exposure'' calculation, to refer to CDX.NA.HY contracts, as well as to clarify that in order to calculate margin in Euros, all US dollar denominated variables are converted to Euros utilizing the current USD/ Euro foreign exchange rate and calibrated haircut based upon historical data. Furthermore, LCH SA proposed conforming changes to Section 4.1.2 of the CDS Margin Framework, which describes the ``top exposure'' component of the short charge and Section 4.1.3 of the CDS Margin Framework, which describes the process by which LCH SA identifies the ``riskiest'' entities (of any type) in determining the short charge, to incorporate terms for CDX.NA.HY index contracts and to clarify the calculation as it applies to high yield indices. LCH SA also proposed clarifying changes to Section 4.1.4 of the CDS Margin Framework to summarize the calculation for the short charge amount.\8\ --------------------------------------------------------------------------- \8\ Id. --------------------------------------------------------------------------- LCH SA proposed to amend the CDS Margin Framework by deleting Section 4.3 in its entirety because the substance of that section would be contained in other sections of the CDS Margin Framework as a result of the proposed changes described above.\9\ --------------------------------------------------------------------------- \9\ Id. --------------------------------------------------------------------------- In addition, LCH SA also proposed to amend Section 5.1 of the CDS Margin Framework, which sets forth the wrong way risk (``WWR'') component of LCH SA's margin methodology. According to LCH SA, the current approach leverages the short charge framework by calculating the top two net short exposures of financial entities in a Clearing Member's portfolio following the calculation described above for the short charge margin. LCH SA then compares these top two net short exposures of financial entities to the Global Short Charge and imposes the [[Page 31365]] greater of those two as the short charge, which addresses the WWR arising from the correlation between a Clearing Member default and the default(s) of the top two financial entities in the Clearing Member's portfolio.\10\ The proposed rule change amends Section 5.1 of the CDS Margin Framework to make the WWR component more explicit, such that, when the top two net short exposures in respect of financial entities exceeds the short charge margin, as amended to equal the greater of the Global Short Charge and the High Yield Short Charge, LCH SA will charge the incremental amount that is attributable to the top two financial entities as part of the WWR Margin.\11\ --------------------------------------------------------------------------- \10\ Id. \11\ Id. --------------------------------------------------------------------------- LCH SA further proposed to amend a heading in Section 3 and a table in Section 3.1.1 to clarify that the summary of the margin framework also applies to CDX HY contracts. Additional conforming changes in the CDS Margin Framework were proposed with respect to Sections 5, 6, 8, 10, and 11 of the CDS Margin Framework to clarify that the those sections also apply to high yield indices.\12\ --------------------------------------------------------------------------- \12\ Id. --------------------------------------------------------------------------- B. Changes to CDSClear Default Fund Methodology LCH SA also proposed changes to its CDSClear Default Fund Methodology. Specifically, LCH SA proposed to amend Section 2.3 of the CDSClear Default Fund Methodology to modify the existing stressed short charge. Under its current approach, LCH SA calculates a stressed short charge, which equals the greater of (1) the top net short exposure plus the top two net short exposures among the three entities most likely to default in the Clearing Member's portfolio, and (2) the top two net short exposures which are senior financial entities plus the top net short exposures among the three riskiest senior financial entities in the Clearing Member's portfolio. Under the proposed rule change, LCH SA will take the default of high yield entities into account and add a third prong to the stressed short charge calculation which will take the greater of (1) and (2) as described above in this paragraph, or (3) the top two net short exposures which are high yield entities plus the top two net short exposures among the three high yield entities most likely to default in the Clearing Member's portfolio.\13\ --------------------------------------------------------------------------- \13\ Id. --------------------------------------------------------------------------- Finally, LCH SA also proposed to amend Section 3.8 of the CDSClear Default Fund Methodology, which describes the correlation between index families and series, to reflect that additional data will be used.\14\ --------------------------------------------------------------------------- \14\ Id. --------------------------------------------------------------------------- III. Discussion and Commission Findings Section 19(b)(2)(C) of the Act \15\ directs the Commission to approve a proposed rule of a self-regulatory organization if the Commission finds that such proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to such organization. Section 17A(b)(3)(F) of the Act \16\ requires, in relevant part, that the rules of a registered clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts, and transactions. Rule 17Ad-22(b)(2) \17\ requires, in relevant part, a registered clearing agency that performs central counterparty services to establish, implement, maintain and enforce written policies and procedures reasonably designed to use margin requirements to limit its credit exposures to participants under normal market conditions and use risk-based models and parameters to set margin requirements. Rule 17Ad-22(b)(3) \18\ requires, in relevant part, a registered clearing agency that performs central counterparty services to establish, implement, maintain and enforce written policies and procedures reasonably designed to maintain additional financial resources sufficient to withstand, at a minimum, a default by the two participant families to which it has the largest exposures in extreme but plausible market conditions where such registered clearing agency acts as a central counterparty for security- based swaps. Rule 17Ad-22(e)(4)(i) and (ii) \19\ require a covered clearing agency to establish, implement, maintain and enforce written policies and procedures reasonably designed to maintain sufficient financial resources to cover its credit exposure to each participant fully with a high degree of confidence, and for a covered clearing agency involved in activities with a more complex risk profile,\20\ maintaining additional financial resources at the minimum to enable it to cover a wide range of foreseeable stress scenarios that include, but are not limited to, the default of the two participant families that would potentially cause the largest aggregate credit exposure for the covered clearing agency in extreme but plausible market conditions. Finally, Rule 17Ad-22(e)(6)(i) \21\ requires a covered clearing agency that provides central counterparty services to establish, implement, maintain and enforce written policies and procedures reasonably designed to cover its credit exposures to its participants by establishing a risk-based margin system that, at a minimum considers, and produces margin levels commensurate with, the risks and particular attributes of each relevant product, portfolio and market. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(2)(C). \16\ 15 U.S.C. 78q-1(b)(3)(F). \17\ 17 CFR 240.17Ad-22(b)(2). \18\ 17 CFR 240.17Ad-22(b)(3). \19\ 17 CFR 240.17Ad-22(e)(4)(i) and (ii). \20\ Rule 17Ad-22(a)(4)(i) defines a covered clearing agency involved in activities with a more complex risk profile as a clearing agency registered with the Commission under Section 17A of the Act that provides central counterparty services for security- based swaps. See 17 CFR 240.17Ad-22(a)(4)(i). \21\ 17 CFR 240.17Ad-22(e)(6)(i). --------------------------------------------------------------------------- The Commission finds that the proposed rule change, which amends LCH SA's CDS Margin Framework and CDSClear Default Fund Methodology to permit LCH SA to clear CDS contracts on the CDX.NA.HY index, is consistent with Section 17A of the Act and the applicable provisions of Rule 17Ad-22 thereunder. By amending its CDS Margin Framework, LCH SA amends the approach to its short charge component of its margin methodology to consider the specific risks associated with, and incorporate parameters addressing the risks, associated with clearing contracts on the CDX.NA.HY index, and as a result, LCH SA will be able to calculate margin requirements to cover its exposures associated with clearing contracts on the CDX.NA.HY index. Therefore, the Commission finds that the proposed rule changes are consistent with Rule 17Ad- 22(b)(2), 17Ad-22(e)(4)(i), and 17Ad-22(e)(6)(i). Additionally, by amending its CDSClear Default Fund Methodology to change the manner in which it calculates its short charge to consider the risks introduced by clearing contracts on the CDX.NA.HY index, the Commission believes that LCH SA will be able to more appropriately calculate and maintain the financial resources necessary to cover the default of by the two participant families to which it has the largest exposures in extreme but plausible market conditions. Therefore, the Commission finds that the proposed rule change is consistent with the requirements of Rule 17Ad-22(b)(3) and Rule 17Ad-22(e)(4)(ii). Because the proposed rule change amends LCH SA's CDS Margin Framework and CDSClear Default Fund Methodology in such a manner as to [[Page 31366]] allow LCH SA to more appropriately take into consideration the risks associated with clearing contracts on the CDX.NA.HY index, and to collect margin and other financial resources that reflect such risks, the Commission believes that the proposed changes are designed to promote the prompt and accurate clearance and settlement of such contracts. As a result, the Commission finds that the proposed rule changes are consistent with Section 17A(b)(3)(F) of the Act. IV. Conclusion It is therefore ordered pursuant to Section 19(b)(2) of the Act that the proposed rule change (SR-LCH SA-2017-005), as amended by Amendment No. 1, be, and hereby is, approved.\22\ --------------------------------------------------------------------------- \22\ In approving the proposed rule change, the Commission considered the proposal's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). For the Commission by the Division of Trading and Markets, pursuant to delegated authority.\23\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2017-14239 Filed 7-5-17; 8:45 am] BILLING CODE 8011-01-P
![31364 Federal Register / Vol. 82, No. 128 / Thursday, July 6, 2017 / Notices
for’’ their CCLF contribution 87 fails to pursuant to Section 19(b)(1) of the approach to calculating the short
account for the fact that the proposal Securities Exchange Act of 1934 charge.6 Consequently, the short charge
also requires FICC to conduct its own (‘‘Act’’) 1 and Rule 19b-4 thereunder,2 a under the proposed rule change would
due diligence. Specifically, FICC would proposed rule change (SR–LCH SA– be the greater of (1) the ‘‘Global Short
confirm that Netting Members have 2017–005) to amend LCH SA’s CDS Charge,’’ as described above, and (2) a
sufficient information to understand Margin Framework and CDSClear ‘‘High Yield Short Charge,’’ calculated
and manage their liquidity risks and to Default Fund Methodology in order to from a member’s top net short exposure
meet its commitments to provide permit LCH SA to clear CDS contracts (with respect to high yield CDS) and its
liquidity. Therefore, the Commission on the CDX.NA.HY index. On May 5, top two net short exposures among the
believes that the proposal is consistent 2017, LCH SA filed Amendment No. 1.3 three ‘‘riskiest’’ reference entities in the
with Rule 17Ad–22(e)(7)(iv). The proposed rule change was high yield category in the Clearing
Finally, Rule 17Ad–22(e)(7)(v) under published in the Federal Register on Member’s portfolio.7
the Exchange Act requires policies and May 17, 2017.4 The Commission LCH SA also proposed to make
procedures for maintaining and testing received no comment letters regarding certain conforming changes throughout
with each liquidity provider, to the the proposed change. For the reasons Section 4.1.1 of the CDS Margin
extent practicable, FICC’s procedures discussed below, the Commission is Framework, which describes the ‘‘net
and operational capacity for accessing approving the proposed rule change. short exposure’’ calculation, to refer to
its relevant liquid resources. As CDX.NA.HY contracts, as well as to
described above, under the proposal, II. Description of the Proposed Rule clarify that in order to calculate margin
FICC would test its operational Change in Euros, all US dollar denominated
procedures for invoking a CCLF Event LCH SA has proposed various variables are converted to Euros
and require Netting Members to changes to its CDS Margin Framework utilizing the current USD/Euro foreign
participate in such tests. Therefore, the and CDSClear Default Fund exchange rate and calibrated haircut
Commission believes that the proposal Methodology for the purpose of based upon historical data.
is consistent with Rule 17Ad– permitting LCH SA to clear CDS Furthermore, LCH SA proposed
22(e)(7)(v). contracts on the CDX.NA.HY index. conforming changes to Section 4.1.2 of
A. Changes to CDS Margin Framework the CDS Margin Framework, which
IV. Conclusion
describes the ‘‘top exposure’’
It is therefore noticed, pursuant to With respect to the CDS Margin component of the short charge and
Section 806(e)(1)(I) of the Clearing Framework, LCH SA proposed to amend Section 4.1.3 of the CDS Margin
Supervision Act,88 that the Commission the short charge component of its Framework, which describes the process
DOES NOT OBJECT to advance notice margin methodology to provide a by which LCH SA identifies the
SR–FICC–2017–802 and that FICC description of the purpose of the short ‘‘riskiest’’ entities (of any type) in
hereby is AUTHORIZED to implement charge, noting that it is intended to determining the short charge, to
the change as of the date of this notice account for the probability of a credit incorporate terms for CDX.NA.HY index
or the date of an order by the event occurring during the period from contracts and to clarify the calculation
Commission approving proposed rule the default of a Clearing Member to as it applies to high yield indices. LCH
change SR–FICC–2017–002 that reflects liquidation of the defaulting Clearing SA also proposed clarifying changes to
the changes that are consistent with this Member’s portfolio, as well as to adjust Section 4.1.4 of the CDS Margin
Advance Notice, whichever is later. the method for calculating the short Framework to summarize the
By the Commission. charge to account for CDX.NA.HY index calculation for the short charge
Jill M. Peterson, contracts. Under its current CDS Margin amount.8
Assistant Secretary.
Framework, LCH SA calculates the short LCH SA proposed to amend the CDS
charge component by taking the larger Margin Framework by deleting Section
[FR Doc. 2017–14145 Filed 7–5–17; 8:45 am]
of (1) a ‘‘Global Short Charge,’’ derived 4.3 in its entirety because the substance
BILLING CODE 8011–01–P
from the Clearing Member’s top net of that section would be contained in
short exposure with respect to any CDS other sections of the CDS Margin
SECURITIES AND EXCHANGE contract and its top net short exposure Framework as a result of the proposed
COMMISSION among the three ‘‘riskiest’’ reference changes described above.9
entities (of any type), i.e. those that are In addition, LCH SA also proposed to
[Release No. 34–81056; File No. SR–LCH most likely to default, in the Clearing amend Section 5.1 of the CDS Margin
SA–2017–005] Member’s portfolio, and (2) the top two Framework, which sets forth the wrong
net short exposures with respect to CDS way risk (‘‘WWR’’) component of LCH
Self-Regulatory Organizations; LCH
contracts on senior financial entities.5 SA’s margin methodology. According to
SA; Order Approving Proposed Rule
LCH SA believes that high yield entities LCH SA, the current approach leverages
Change, as Amended by Amendment
are risker than senior financial entities, the short charge framework by
No. 1 Thereto, To Add Rules Related to
and as a result it proposed to introduce calculating the top two net short
the Clearing of CDX.NA.HY CDS
a ‘‘High Yield Short Charge’’ that would exposures of financial entities in a
June 30, 2017. replace the top two net short exposures Clearing Member’s portfolio following
to CDS on senior financial entities in its the calculation described above for the
I. Introduction
short charge margin. LCH SA then
sradovich on DSK3GMQ082PROD with NOTICES
On April 28, 2017, Banque Centrale 1 15
U.S.C. 78s(b)(1). compares these top two net short
de Compensation, which conducts 2 17
CFR 240.19b–4. exposures of financial entities to the
3 LCH SA filed Amendment No. 1 to replace the
business under the name LCH SA (‘‘LCH Global Short Charge and imposes the
initial filing in its entirety in order to clarify certain
SA’’), filed with the Securities and changes to the CDSClear Margin Framework.
Exchange Commission (‘‘Commission’’), 4 Securities Exchange Act Release No. 34–80666 6 Id.
7 Id.
(May 11, 2017), 82 FR 22699 (May 17, 2017) (SR–
87 Ronin Letter at 2. LCH SA–2017–005) (‘‘Notice’’). 8 Id.
88 12 U.S.C. 5465(e)(1)(I). 5 Notice, 82 FR at 22700. 9 Id.
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![31366 Federal Register / Vol. 82, No. 128 / Thursday, July 6, 2017 / Notices
allow LCH SA to more appropriately I. Self-Regulatory Organization’s ‘‘Participants’’) filed with the
take into consideration the risks Statement of the Terms of Substance of Commission, pursuant to Section 11A of
associated with clearing contracts on the the Proposed Rule Change the Exchange Act 6 and Rule 608 of
CDX.NA.HY index, and to collect FINRA is proposing to adopt FINRA Regulation NMS thereunder,7 the
margin and other financial resources Rule 6898 (Consolidated Audit Trail— National Market System Plan Governing
that reflect such risks, the Commission Fee Dispute Resolution) to establish the the Consolidated Audit Trail (the ‘‘CAT
believes that the proposed changes are procedures for resolving potential NMS Plan’’ or ‘‘Plan’’).8 The
designed to promote the prompt and disputes related to CAT Fees charged to Participants filed the Plan to comply
accurate clearance and settlement of Industry Members.3 with Rule 613 of Regulation NMS under
The text of the proposed rule change the Exchange Act.9 The Plan was
such contracts. As a result, the
is available on FINRA’s Web site at published for comment in the Federal
Commission finds that the proposed
http://www.finra.org, at the principal Register on May 17, 2016,10 and
rule changes are consistent with Section approved by the Commission, as
17A(b)(3)(F) of the Act. office of FINRA, and at the
Commission’s Public Reference Room. modified, on November 15, 2016.11 The
IV. Conclusion Plan is designed to create, implement
II. Self-Regulatory Organization’s and maintain a consolidated audit trail
It is therefore ordered pursuant to Statement of the Purpose of, and (‘‘CAT’’) that would capture customer
Section 19(b)(2) of the Act that the Statutory Basis for, the Proposed Rule and order event information for orders
proposed rule change (SR–LCH SA– Change in NMS Securities and OTC Equity
2017–005), as amended by Amendment In its filing with the Commission, Securities, across all markets, from the
No. 1, be, and hereby is, approved.22 FINRA included statements concerning time of order inception through routing,
the purpose of and basis for the cancellation, modification, or execution
For the Commission by the Division of
proposed rule change and discussed any in a single consolidated data source.
Trading and Markets, pursuant to delegated
comments it received on the proposed The Plan accomplishes this by creating
authority.23
rule change. The text of these statements CAT NMS, LLC (the ‘‘Company’’), of
Brent J. Fields, may be examined at the places specified which each Participant is a member, to
Secretary. in Item IV below. FINRA has prepared operate the CAT.12 Under the CAT NMS
[FR Doc. 2017–14239 Filed 7–5–17; 8:45 am] summaries, set forth in sections A, B, Plan, the Operating Committee of the
BILLING CODE 8011–01–P and C below, of the most significant Company (‘‘Operating Committee’’) has
aspects of such statements. discretion to establish funding for the
Company to operate the CAT, including
A. Self-Regulatory Organization’s
SECURITIES AND EXCHANGE establishing fees that the Participants
Statement of the Purpose of, and the
COMMISSION will pay, and establishing fees for
Statutory Basis for, the Proposed Rule
Industry Members that will be
Change
[Release No. 34–81053; File No. SR–FINRA– implemented by the Participants (‘‘CAT
2017–020] 1. Purpose Fees’’).13 The Participants are required
Bats BYX Exchange, Inc., Bats BZX to file with the SEC under Section 19(b)
Self-Regulatory Organizations; Exchange, Inc., Bats EDGA Exchange, of the Exchange Act any such CAT Fees
Financial Industry Regulatory Inc., Bats EDGX Exchange, Inc., BOX applicable to Industry Members that the
Authority, Inc.; Notice of Filing of a Options Exchange LLC, C2 Options Operating Committee approves.14
Proposed Rule Change To Adopt Exchange, Incorporated, Chicago Board Accordingly, FINRA has filed a
FINRA Rule 6898 (Consolidated Audit Options Exchange, Incorporated, proposed rule change with the SEC to
Trail—Fee Dispute Resolution) Chicago Stock Exchange, Inc., FINRA, adopt the Consolidated Audit Trail
Investors’ Exchange LLC, Miami Funding Fees, which will require
June 29, 2017. International Securities Exchange, LLC, Industry Members that are FINRA
MIAX PEARL, LLC, NASDAQ BX, Inc., members to pay the CAT Fees
Pursuant to the provisions of Section
Nasdaq GEMX, LLC, Nasdaq ISE, LLC, determined by the Operating
19(b)(1) of the Securities Exchange Act Committee.15 FINRA submits this
of 1934 (‘‘Act’’ or the ‘‘Exchange Act’’) 1 Nasdaq MRX, LLC,4 NASDAQ PHLX
LLC, The NASDAQ Stock Market LLC,
and Rule 19b-4 thereunder,2 notice is 6 15 U.S.C. 78k–1.
New York Stock Exchange LLC, NYSE
hereby given that, on June 19, 2017, 7 17 CFR 242.608.
MKT LLC, NYSE Arca, Inc. and NYSE
Financial Industry Regulatory National, Inc.5 (collectively, the
8 See Letter from the Participants to Brent J.
Authority, Inc. (‘‘FINRA’’) filed with the Fields, Secretary, Commission, dated September 30,
2014; and Letter from Participants to Brent J. Fields,
Securities and Exchange Commission 3 Unless otherwise specified, capitalized terms
Secretary, Commission, dated February 27, 2015.
(‘‘SEC’’ or the ‘‘Commission’’) the used in this rule filing are defined as set forth On December 23, 2015, the Participants submitted
proposed rule change as described in herein or in the Consolidated Audit Trail Funding an amendment to the CAT NMS Plan. See Letter
Fees Rule, the CAT Compliance Rule Series or in from Participants to Brent J. Fields, Secretary,
Items I and II below, which Items have the CAT NMS Plan. Commission, dated December 23, 2015.
been prepared by FINRA. The 4 ISE Gemini, LLC, ISE Mercury, LLC and 9 17 CFR 242.613.
Commission is publishing this notice to International Securities Exchange, LLC have been 10 Securities Exchange Act Release No. 77724
renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC,
solicit comments on the proposed rule and Nasdaq ISE, LLC, respectively. See Securities
(April 27, 2016), 81 FR 30614 (May 17, 2016).
11 Securities Exchange Act Release No. 79318
change from interested persons. Exchange Act Release No. 80248 (March 15, 2017),
sradovich on DSK3GMQ082PROD with NOTICES
(November 15, 2016), 81 FR 84696 (November 23,
82 FR 14547 (March 21, 2017); Securities Exchange
2016) (‘‘Approval Order’’).
22 In approving the proposed rule change, the Act Release No. 80326 (March 29, 2017), 82 FR 12 The Plan also serves as the limited liability
16460 (April 4, 2017); and Securities Exchange Act
Commission considered the proposal’s impact on company agreement for the Company.
Release No. 80325 (March 29, 2017), 82 FR 16445
efficiency, competition, and capital formation. 15 13 Section 11.1(b) of the CAT NMS Plan.
(April 4, 2017).
U.S.C. 78c(f). 5 National Stock Exchange, Inc. has been renamed 14 See supra note 12 [sic].
23 17 CFR 200.30–3(a)(12).
NYSE National, Inc. See Securities Exchange Act 15 See Securities Exchange Act Release No. 80710
1 15 U.S.C. 78s(b)(1).
Release No. 79902 (January 30, 2017), 82 FR 9258 (May 17, 2017), 82 FR 23629 [sic] (May 23, 2017)
2 17 CFR 240.19b–4. (February 3, 2017). (SR–FINRA–2017–011).
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Document Created: 2017-07-06 01:05:12
Document Modified: 2017-07-06 01:05:12
| Category | Regulatory Information | |
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| FR Citation | 82 FR 31364 |
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