82 FR 31377 - Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment No. 2 to the National Market System Plan Governing the Consolidated Audit Trail by 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., Investors' Exchange LLC, Miami International Securities Exchange, LLC, MIAX PEARL, LLC, NASDAQ BX, Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC, NASDAQ PHLX LLC, The NASDAQ Stock Market LLC, New York Stock Exchange LLC, NYSE Arca, Inc., NYSE MKT LLC and NYSE National, Inc.; Correction

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 128 (July 6, 2017)

Page Range		31377-31378
FR Document		2017-14199

The Securities and Exchange Commission published a document in the Federal Register on June 20, 2017, concerning a Notice of Filing and Immediate Effectiveness of Amendment No. 2 to the National Market System Plan Governing the Consolidated Audit Trail. The document contained two typographical errors.

Federal Register, Volume 82 Issue 128 (Thursday, July 6, 2017)

[Federal Register Volume 82, Number 128 (Thursday, July 6, 2017)]
[Notices]
[Pages 31377-31378]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14199]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80930A; File No. 4-698]


Joint Industry Plan; Notice of Filing and Immediate Effectiveness 
of Amendment No. 2 to the National Market System Plan Governing the 
Consolidated Audit Trail by 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., Investors' Exchange LLC, Miami 
International Securities Exchange, LLC, MIAX PEARL, LLC, NASDAQ BX, 
Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC, NASDAQ PHLX 
LLC, The NASDAQ Stock Market LLC, New York Stock Exchange LLC, NYSE 
Arca, Inc., NYSE MKT LLC and NYSE National, Inc.; Correction

June 30, 2017.
AGENCY: Securities and Exchange Commission.

ACTION: Notice; correction.

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SUMMARY: The Securities and Exchange Commission published a document in 
the Federal Register on June 20, 2017, concerning a Notice of Filing 
and Immediate Effectiveness of Amendment No. 2 to the National Market 
System Plan Governing the Consolidated Audit Trail. The document 
contained two typographical errors.

FOR FURTHER INFORMATION CONTACT: Jennifer L. Colihan, Special Counsel, 
Division of Trading and Markets, Securities and Exchange Commission, 
100 F Street NE., Washington, DC 20549, (202) 551-5642.

Correction

    In the Federal Register of June 20, 2017, in FR Doc 2017-12771, on 
page 28180, in the first line under the heading ``Introduction'' in the 
second column, correct the date ``May 9, 2017'' instead to ``May 23, 
2017.''
    On page 28180, in footnote 4 in the third column, correct the date 
``May 8, 2017'' instead to ``May 22, 2017.'' Add the following sentence 
after the first sentence of footnote 4, ``The Participants initially 
submitted the amendment on May 9, 2017, but subsequently withdrew the 
amendment

[[Page 31378]]

and refiled the submission on May 23, 2017.''

Brent J. Fields,
Secretary.
[FR Doc. 2017-14199 Filed 7-5-17; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 128 / Thursday, July 6, 2017 / Notices 31377

SECURITIES AND EXCHANGE self-regulatory organization consents, SECURITIES AND EXCHANGE
COMMISSION the Commission shall either approve the COMMISSION
proposed rule change, disapprove the
[Release No. 34–81052; File No. SR–IEX–
2017–11] proposed rule change, or institute [Release No. 34–80930A; File No. 4–698]
proceedings to determine whether the
Self-Regulatory Organizations; proposed rule change should be Joint Industry Plan; Notice of Filing
Investors Exchange LLC; Notice of disapproved. The 45th day after and Immediate Effectiveness of
Designation of a Longer Period for publication of the notice for this Amendment No. 2 to the National
Commission Action on a Proposed proposed rule change was June 12, Market System Plan Governing the
Rule Change To Modify the Manner in 2017. IEX consented to an extension of Consolidated Audit Trail by Bats BYX
Which the Exchange Opens Trading time for the Commission to act on the Exchange, Inc., Bats BZX Exchange,
for Non-IEX-Listed Securities proposal until July 5, 2017.7 The Inc., Bats EDGA Exchange, Inc., Bats
June 29, 2017. Commission is further extending the EDGX Exchange, Inc., BOX Options
On April 13, 2017, the Investors time period for Commission action on Exchange LLC, C2 Options Exchange,
Exchange LLC (‘‘IEX’’ or the the proposed rule change. Incorporated, Chicago Board Options
‘‘Exchange’’) filed with the Securities The Commission finds that it is Exchange, Incorporated, Chicago
and Exchange Commission appropriate to designate a longer period Stock Exchange, Inc., Financial
(‘‘Commission’’), pursuant to Section within which to take action on the Industry Regulatory Authority, Inc.,
19(b)(1) of the Securities Exchange Act proposed rule change so that it has Investors’ Exchange LLC, Miami
of 1934 (‘‘Act’’) 1 and Rule 19b–4 sufficient time to consider the proposed International Securities Exchange,
thereunder,2 a proposed rule change to rule change, as modified by Amendment LLC, MIAX PEARL, LLC, NASDAQ BX,
modify the manner in which the Inc., Nasdaq GEMX, LLC, Nasdaq ISE,
No. 3. Accordingly, the Commission,
Exchange opens trading for non-IEX- LLC, Nasdaq MRX, LLC, NASDAQ
pursuant to Section 19(b)(2) of the Act,8
listed securities beginning at the start of PHLX LLC, The NASDAQ Stock Market
Regular Market Hours and make related designates July 27, 2017, as the date by
which the Commission shall either LLC, New York Stock Exchange LLC,
changes. The proposed rule change was NYSE Arca, Inc., NYSE MKT LLC and
published for comment in the Federal approve or disapprove, or institute
proceedings to determine whether to NYSE National, Inc.; Correction
Register on April 28, 2017.3 On May 19,
2017, IEX filed Amendment No. 1 to the disapprove, the proposed rule change June 30, 2017.
proposal. On June 9, 2017, IEX (File No. SR–IEX–2017–11), as modified
consented to an extension of time for by Amendment No. 3. AGENCY:Securities and Exchange
the Commission to act on the proposal Commission.
For the Commission, by the Division of
until July 5, 2017.4 On June 22, 2017, Trading and Markets, pursuant to delegated ACTION: Notice; correction.
IEX filed Amendment No. 2 to the authority.9
proposal, which superseded and Jill M. Peterson, SUMMARY: The Securities and Exchange
replaced Amendment No. 1 in its Commission published a document in
Assistant Secretary.
entirety. On June 29, 2017, IEX filed the Federal Register on June 20, 2017,
[FR Doc. 2017–14143 Filed 7–5–17; 8:45 am]
Amendment No. 3 to the proposal, concerning a Notice of Filing and
which superseded and replaced BILLING CODE 8011–01–P
Immediate Effectiveness of Amendment
Amendment No. 2 in its entirety.5 The
No. 2 to the National Market System
Commission received no comments on
Plan Governing the Consolidated Audit
the proposed rule change.
Section 19(b)(2) of the Act 6 provides Trail. The document contained two
that within 45 days of the publication of typographical errors.
notice of the filing of a proposed rule FOR FURTHER INFORMATION CONTACT:
change, or within such longer period up Jennifer L. Colihan, Special Counsel,
to 90 days as the Commission may Division of Trading and Markets,
designate if it finds such longer period Securities and Exchange Commission,
to be appropriate and publishes its 100 F Street NE., Washington, DC
reasons for so finding or as to which the 20549, (202) 551–5642.
1 15 U.S.C.78s(b)(1). Correction
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 80514 In the Federal Register of June 20,
(April 24, 2017), 82 FR 19763. 2017, in FR Doc 2017–12771, on page
4 See letter from Claudia Crowley, Chief
28180, in the first line under the
Regulatory Officer, IEX, to Richard Holley,
Assistant Director, Division of Trading and Markets, heading ‘‘Introduction’’ in the second
Commission, dated June 9, 2017. column, correct the date ‘‘May 9, 2017’’
5 Amendment No. 3 revised the proposal to (i)
instead to ‘‘May 23, 2017.’’
provide additional clarity regarding the process for
determining the Opening Match Price; (ii) modify On page 28180, in footnote 4 in the
sradovich on DSK3GMQ082PROD with NOTICES

the definition of ‘‘Cross Tie Breaker’’ to account for third column, correct the date ‘‘May 8,
a scenario involving securities in Test Groups Two 2017’’ instead to ‘‘May 22, 2017.’’ Add
and Three of the Plan to Implement a Tick Size
Pilot Program; and (iii) correct certain typographical the following sentence after the first
errors. Amendment No. 3 also revised the proposal sentence of footnote 4, ‘‘The
to fix an error in the proposed rule text in Participants initially submitted the
7 See supra note 4.
Amendment No. 2 and correct additional
typographical errors. 8 15 U.S.C. 78s(b)(2). amendment on May 9, 2017, but
6 15 U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(31). subsequently withdrew the amendment

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31378 Federal Register / Vol. 82, No. 128 / Thursday, July 6, 2017 / Notices

and refiled the submission on May 23, would (1) change the time that FICC settles all SBO-Destined Transactions,
2017.’’ treats itself as the settlement Trade-for-Trade Transactions, and
counterparty for SBO-Destined Trades 5 Specified Pool Trades, as proposed; (2)
Brent J. Fields,
to the time of trade comparison, which establishing the ‘‘Do Not Allocate’’
Secretary.
is earlier in the lifecycle of the trade (‘‘DNA’’) process, which would allow
[FR Doc. 2017–14199 Filed 7–5–17; 8:45 am] than the current practice; (2) change the Clearing Members 10 to offset SBON
BILLING CODE 8011–01–P time that FICC novates 6 and treats itself Trades 11 and Trade-for-Trade
as the settlement counterparty for Transactions; (3) establishing the
Trade-for-Trade Transactions 7 to the ‘‘Expanded Pool Netting’’ process,
SECURITIES AND EXCHANGE time of trade comparison, which is which would net Pool Instructs 12
COMMISSION earlier in the lifecycle of the trade than stemming from SBON Trades and
[Release No. 34–81051; File No. SR–FICC– the current practice; (3) regarding Trade-for-Trade Transactions to arrive at
2017–012] Specified Pool Trades,8 novate and a single net position per counterparty in
establish FICC as the settlement a particular Pool Number 13 for next-day
Self-Regulatory Organizations; Fixed counterparty at the time of trade delivery; (4) eliminating the ‘‘give-up’’
Income Clearing Corporation; Order comparison; and (4) regarding process for Brokered Transactions,14 as
Approving a Proposed Rule Change to Stipulated Trades 9 (a new proposed the process would become obsolete once
the Mortgage-Backed Securities trade type), guarantee, novate, and FICC novates and settles all such
Division Clearing Rules Regarding establish FICC as the settlement transactions, as proposed; and (5)
Fixed Income Clearing Corporation’s counterparty at the time of trade amending the components of the Cash
(1) Time of Novation, (2) Treatment of comparison. Settlement 15 calculation to reflect the
Itself as the Settlement Counterparty The Proposed Rule Change also changes above.
for Certain Transaction Types, and (3) includes several changes to the MBSD Finally, the Proposed Rule Change
Proposal to Implement New Processes Rules regarding the operational would modify FICC’s Real-Time Trade
to Promote Operational Efficiencies for processes for clearing MBSD trades. Matching (‘‘RTTM’’) system to remove
Its Clearing Members These changes include (1) eliminating size restrictions on SBO-Destined
June 29, 2017.
the Notification of Settlement process Trades. Since trade size submission
regarding trades that currently settle
I. Introduction bilaterally, as the process would become 10 The term ‘‘Clearing Member’’ means any entity

obsolete once FICC novates and directly admitted into MBSD membership pursuant to
On May 15, 2017, Fixed Income MBSD Rule 2A. MBSD Rule 1, supra note 4.
Clearing Corporation (‘‘FICC’’) filed 11 The proposed MBSD Rules would use the term
5 The Proposed Rule Change would add the new
with the Securities and Exchange ‘‘SBON Trades’’ to signify obligations that result
defined term ‘‘SBO’’ to define the settlement from the TBA Netting process. Such obligations
Commission (‘‘Commission’’) proposed balance orders that constitute the net positions of would reflect FICC as the settlement counterparty.
rule change SR–FICC–2017–012, a Clearing Member as a result of the TBA Netting 12 The term ‘‘Pool Instruct’’ is defined in FICC’s
pursuant to Section 19(b)(1) of the process. Notice, 82 FR at 23860. The term ‘‘SBO-
Destined Trade’’ means a ‘‘To-Be-Announced’’ MBS Pool Netting User Guide to mean ‘‘[a]n input
Securities Exchange Act of 1934 (‘‘TBA’’) transaction intended for TBA Netting. used by a [M]ember to submit pool details directly
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2 MBSD Rule 1, supra note 4. TBA transactions are into [FICC’s Real-Time Trade Matching System]
(hereinafter, ‘‘Proposed Rule Change’’). trades for which the actual identities of and/or the pool netting for bilateral matching and assignment
number of pools underlying each trade are to a corresponding open TBA position as a
The Proposed Rule Change was prerequisite to pool netting. FICC MBS Pool Netting
unknown at the time of trade execution. See Notice,
published for comment in the Federal 82 FR at 23854. ‘‘TBA Netting’’ means the netting User Guide, available at http://www.dtcc.com/
Register on May 24, 2017.3 The service that FICC provides to Clearing Members in clearing-services/ficc-mbsd/ficc-mbsd-user-
Commission received no comments to connection with TBA transactions. MBSD Rule 1, documentation.
13 The term ‘‘Pool Number’’ is defined in FICC’s
the Proposed Rule Change. This order supra note 4. The MBSD settlement balance order
(‘‘SBO’’) system nets trades within the same MBS Pool Netting User Guide to mean a ‘‘[u]nique
approves the Proposed Rule Change. mortgage backed security (‘‘MBS’’) product, coupon number assigned by the industry to identify the
rate, maturity, and settlement date. The SBO system pool (in addition to the pool CUSIP [(i.e., the
II. Description of the Proposed Rule provides netting efficiencies, eliminating the need Committee on Uniform Securities Identification
Change for Clearing Members to settle all but the resulting Procedures identifying number for a security)],
net buy and sell obligations. since the pool CUSIP is not always known at the
The Proposed Rule Change consists of 6 Novation terminates the obligations between time of issuance).’’ FICC MBS Pool Netting User
modifications to FICC’s Mortgage- Clearing Members to deliver, receive, and make Guide, supra note 12.
Backed Securities Division (‘‘MBSD’’) payments to each other, and replaces those 14 The term ‘‘Brokered Transaction’’ means any

Clearing Rules (‘‘MBSD Rules’’).4 obligations with identical obligations between the ‘‘give-up’’ transaction calling for the delivery of a
Specifically, the Proposed Rule Change Clearing Members and FICC. MBSD Rule 5 Section security for which data has been submitted to FICC
13, supra note 4. by Members, in transactions to which a Broker is
7 The term ‘‘Trade-for-Trade Transaction’’ means a party. MBSD Rule 1, supra note 4. FICC operates
1 15 U.S.C. 78s(b)(1). a TBA transaction submitted to FICC that is not its brokered business on a ‘‘give-up’’ basis, which
2 17 CFR 240.19b–4. intended for TBA Netting. MBSD Rule 1, supra note means that MBSD discloses (i.e., ‘‘gives-up’’) the
3 Securities Exchange Act Release No. 80716 (May identity of each Dealer (i.e., a Member that is in the
4. Entities use Trade-for-Trade Transactions either
18, 2017), 82 FR 23852 (May 24, 2017) (SR–FICC– by choice or for trades that are not eligible for business of buying and selling Securities as
2017–012) (‘‘Notice’’). netting. principal, either directly or through a Broker.) to a
4 FICC is comprised of two divisions, MBSD and 8 The term ‘‘Specified Pool Trade’’ means a trade Brokered Transaction after a period of time. MBSD
the Government Securities Division (‘‘GSD’’). MBSD in which all required pool data, including the pool Rule 1; Rule 5 Section 7, supra note 4.
provides, among other things, clearance and number to be delivered upon settlement are agreed 15 The term ‘‘Cash Settlement’’ refers to the

settlement for trades in mortgage-backed securities. by the counterparties at the time of trade execution. payment each business day by FICC to a Member
GSD provides, among other things, clearance and MBSD Rule 1, supra note 4. or by a Member to FICC pursuant to Rule 11. MBSD
sradovich on DSK3GMQ082PROD with NOTICES

settlement for trades in U.S. government debt 9 A ‘‘Stipulated Trade’’ is a trade in which pools Rule 1, supra note 4. Cash Settlement is a daily
issues. MBSD and GSD maintain separate sets of allocated and delivered against the trade must process of generating a single net credit or debit
rules, margin models, and clearing funds. The satisfy certain conditions that are agreed upon by cash amount at the ‘‘Aggregated Account’’ level
Proposed Rule Change relates solely to the MBSD the parties at the time of trade execution. See (i.e., either a single account linked to an aggregate
Rules. Capitalized terms used and not otherwise Notice, 82 FR at 23856. Trades carrying stipulations ID or a set of accounts linked to an aggregate ID for
defined shall have the meaning assigned to such may reflect terms that include, but are not limited the processing of transactions.) Clearing Members’
terms in the MBSD Rules or the FICC MBSD EPN to issuance year, issuance month, weighted average Cash Settlement obligations are calculated on a net
Rules, as applicable, available at http:// coupon, weighted average maturity and/or weighted basis at the aggregate ID level. MBSD Rule 1, supra
www.dtcc.com/en/legal/rules-and-procedures. average loan age, etc. note 4.

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Document Created: 2017-07-06 01:04:56
Document Modified: 2017-07-06 01:04:56

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
Action		Notice; correction.
Contact		Jennifer L. Colihan, Special Counsel, Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549, (202) 551-5642.
FR Citation		82 FR 31377