82 FR 36037 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay the Effective Date of the TotalView and OpenView Depth-of-Book Products
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 147 (August 2, 2017)
Federal Register Volume 82, Issue 147 (August 2, 2017)
| Page Range | 36037-36039 | |
| FR Document | 2017-16270 |
[Federal Register Volume 82, Number 147 (Wednesday, August 2, 2017)] [Notices] [Pages 36037-36039] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-16270] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81250; File No. SR-NASDAQ-2017-075] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay the Effective Date of the TotalView and OpenView Depth-of-Book Products July 28, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on July 21, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to delay the effective date of the merger of TotalView and OpenView by 31 days, until September 1, 2017. 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 The purpose of this filing is to delay the effective date of the merger of TotalView and OpenView by 31 days, from August 1, 2017, until September 1, 2017. On May 26, 2017, the Exchange filed with the Commission a proposed rule change (``Proposal'') to merge the [[Page 36038]] OpenView depth-of-book product into TotalView, and to amend the Exchange's fees at Rules 7023 and 7026 to reflect the merger of these two products. The SEC published the Proposal in the Federal Register for notice and comment on June 8, 2017.\3\ The comment period expired on July 5, 2017, and no comments have been received. --------------------------------------------------------------------------- \3\ Securities Exchange Act Release No. 80891 (June 8, 2017), 82 FR 27318 (June 14, 2017) (SR-NASDAQ-2017-054). --------------------------------------------------------------------------- The Exchange has recently been informed that certain Distributors will require additional time to modify systems and procedures to accommodate the merger of OpenView into TotalView, and the Exchange has agreed to modify the effective date of the Proposal from August 1, 2017, to September 1, 2017, to allow all Distributors an additional 31 days to prepare for the merger. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\4\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\5\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. All Distributors will be able to use their current systems and procedures to obtain the products that they now purchase during the period of delay, and such service will not be interrupted. Those Distributors that require additional time will be able to implement the merger of OpenView into TotalView, and those Distributors that do not require additional time will not be harmed because they will be able to continue using their current systems and procedures to obtain the products that they purchase. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- 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 not necessary or appropriate in furtherance of the purposes of the Act. The delay will not change the current competitive position of any Distributor because all Distributors will be able to use their current systems and procedures to obtain the products that they purchase. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing 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 for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \6\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\7\ --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A)(iii). \7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 satisfied this requirement. --------------------------------------------------------------------------- In its filing, Nasdaq requests that the Commission waive the 30-day operative delay so that certain of its Distributors will have sufficient time to modify their systems and procedures to accommodate the merger of OpenView into TotalView. The Exchange further represents that Distributors that do not require additional time to modify their systems and procedures will not be harmed by a delayed merger of TotalView and OpenView, because they will be able to continue using their current systems and procedures. Accordingly, the Commission believes that granting a waiver of the operative delay is consistent with the protection of investors and the public interest and therefore designates the proposed rule change to be operative upon filing.\8\ --------------------------------------------------------------------------- \8\ 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). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-NASDAQ-2017-075 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-NASDAQ-2017-075. 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-NASDAQ-2017-075, and should be submitted on or before August 23, 2017. [[Page 36039]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12) and (59). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-16270 Filed 8-1-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 147 / Wednesday, August 2, 2017 / Notices 36037
organizations with consistency across Comments may be submitted by any of SECURITIES AND EXCHANGE
affiliated exchanges, thereby enabling the following methods: COMMISSION
the Exchange to compete with
unaffiliated exchange competitors that Electronic Comments [Release No. 34–81250; File No. SR–
NASDAQ–2017–075]
similarly operate multiple exchanges on • Use the Commission’s Internet
the same trading platforms. comment form (http://www.sec.gov/ Self-Regulatory Organizations; The
C. Self-Regulatory Organization’s rules/sro.shtml); or NASDAQ Stock Market LLC; Notice of
Statement on Comments on the Filing and Immediate Effectiveness of
• Send an email to rule-comments@ Proposed Rule Change To Delay the
Proposed Rule Change Received From sec.gov. Please include File Number SR–
Members, Participants, or Others Effective Date of the TotalView and
NYSE–2017–35 on the subject line. OpenView Depth-of-Book Products
No written comments were solicited Paper Comments
or received with respect to the proposed July 28, 2017.
rule change. • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934
III. Date of Effectiveness of the (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Proposed Rule Change and Timing for and Exchange Commission, 100 F Street
notice is hereby given that on July 21,
Commission Action NE., Washington, DC 20549–1090.
2017, The NASDAQ Stock Market LLC
The Exchange has filed the proposed All submissions should refer to File (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
rule change pursuant to Section Number SR–NYSE–2017–35. This file Securities and Exchange Commission
19(b)(3)(A)(iii) of the Act 17 and Rule number should be included on the (‘‘SEC’’ or ‘‘Commission’’) the proposed
19b–4(f)(6) thereunder.18 Because the subject line if email is used. To help the rule change as described in Items I and
foregoing proposed rule change does Commission process and review your II below, which Items have been
not: (i) Significantly affect the comments more efficiently, please use prepared by the Exchange. The
protection of investors or the public only one method. The Commission will Commission is publishing this notice to
interest; (ii) impose any significant post all comments on the Commission’s solicit comments on the proposed rule
burden on competition; and (iii) become change from interested persons.
Internet Web site (http://www.sec.gov/
operative for 30 days from the date on rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s
which it was filed, or such shorter time submission, all subsequent Statement of the Terms of Substance of
as the Commission may designate, it has amendments, all written statements the Proposed Rule Change
become effective pursuant to Section with respect to the proposed rule The Exchange proposes to delay the
19(b)(3)(A)(iii) of the Act 19 and change that are filed with the effective date of the merger of TotalView
subparagraph (f)(6) Rule 19b–4 Commission, and all written and OpenView by 31 days, until
thereunder.20 communications relating to the September 1, 2017.
At any time within 60 days of the proposed rule change between the
filing of such proposed rule change, the II. Self-Regulatory Organization’s
Commission and any person, other than Statement of the Purpose of, and
Commission summarily may those that may be withheld from the
temporarily suspend such rule change if Statutory Basis for, the Proposed Rule
public in accordance with the Change
it appears to the Commission that such
provisions of 5 U.S.C. 552, will be
action is necessary or appropriate in the In its filing with the Commission, the
available for Web site viewing and
public interest, for the protection of Exchange included statements
investors, or otherwise in furtherance of printing in the Commission’s Public
concerning the purpose of and basis for
the purposes of the Act. If the Reference Room, 100 F Street NE.,
the proposed rule change and discussed
Commission takes such action, the Washington, DC 20549 on official any comments it received on the
Commission shall institute proceedings business days between the hours of proposed rule change. The text of these
under Section 19(b)(2)(B) 21 of the Act to 10:00 a.m. and 3:00 p.m. Copies of the statements may be examined at the
determine whether the proposed rule filing also will be available for places specified in Item IV below. The
change should be approved or inspection and copying at the principal Exchange has prepared summaries, set
disapproved. office of the Exchange. All comments forth in sections A, B, and C below, of
received will be posted without change; the most significant aspects of such
IV. Solicitation of Comments the Commission does not edit personal statements.
Interested persons are invited to identifying information from
submissions. You should submit only A. Self-Regulatory Organization’s
submit written data, views, and
information that you wish to make Statement of the Purpose of, and the
arguments concerning the foregoing,
available publicly. All submissions Statutory Basis for, the Proposed Rule
including whether the proposed rule
should refer to File Number SR–NYSE– Change
change is consistent with the Act.
2017–35 and should be submitted on or 1. Purpose
17 15 U.S.C. 78s(b)(3)(A)(iii). before August 23, 2017. The purpose of this filing is to delay
18 17 CFR 240.19b–4(f)(6).
19 15 U.S.C. 78s(b)(3)(A).
For the Commission, by the Division of the effective date of the merger of
20 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
Trading and Markets, pursuant to delegated TotalView and OpenView by 31 days,
sradovich on DSKBCFCHB2PROD with NOTICES
4(f)(6)(iii) requires the Exchange to give the authority.22 from August 1, 2017, until September 1,
Commission written notice of the Exchange’s intent Eduardo A. Aleman, 2017.
to file the proposed rule change, along with a brief On May 26, 2017, the Exchange filed
description and text of the proposed rule change, Assistant Secretary.
with the Commission a proposed rule
at least five business days prior to the date of filing [FR Doc. 2017–16206 Filed 8–1–17; 8:45 am]
of the proposed rule change, or such shorter time change (‘‘Proposal’’) to merge the
BILLING CODE 8011–01–P
as designated by the Commission. The Exchange
has satisfied this requirement. 1 15 U.S.C. 78s(b)(1).
21 15 U.S.C. 78s(b)(2)(B). 22 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 147 / Wednesday, August 2, 2017 / Notices 36039
For the Commission, by the Division of filed Amendment No. 1 to the proposed procedures, established by MSRB Rule
Trading and Markets, pursuant to delegated rule change (‘‘Amendment No. 1’’).6 The G–12(h).12 In addition, current Rule G–
authority.9 Commission is publishing this notice to 26 requires the use of the automated
Eduardo A. Aleman, solicit comments on Amendment No. 1 customer account transfer service in
Assistant Secretary. to the proposed rule change from place at a registered clearing agency
[FR Doc. 2017–16270 Filed 8–1–17; 8:45 am] interested parties and is approving the registered with the Commission when
BILLING CODE 8011–01–P proposed rule change, as modified by both dealers are direct participants in
Amendment No. 1, on an accelerated the same clearing agency.13 Finally, the
basis. rule contains a provision for enhancing
SECURITIES AND EXCHANGE compliance by requiring submission of
COMMISSION II. Description of Proposed Rule Change transfer instructions to the enforcement
In the Notice of Filing, the MSRB authority with jurisdiction over the
[Release No. 34–81233; File No. SR–MSRB– stated that the purpose of the proposed dealer carrying the account, if the
2017–03] rule change is to modernize Rule G–26 enforcement authority requests such
and promote a uniform customer submission.14
Self-Regulatory Organizations; account transfer standard for all As discussed in the Notice of Filing,
Municipal Securities Rulemaking dealers.7 The MSRB stated that it the MSRB adopted Rule G–26 in 1986
Board; Notice of Filing of Amendment believes that, by including certain as part of an industry-wide initiative to
No. 1 and Order Granting Accelerated provisions parallel to the customer create a uniform customer account
Approval of a Proposed Rule Change, account transfer rules of other SROs, transfer standard by applying a
as Modified by Amendment No. 1, particularly FINRA Rule 11870, in customer account transfer procedure to
Consisting of Proposed Amendments current Rule G–26, the transfer of all dealers that are engaged in municipal
to MSRB Rule G–26, on Customer customer securities account assets will securities activities.15 The uniform
Account Transfers, To Modernize the be more flexible, less burdensome, and standard for all customer account
Rule and Promote a Uniform Customer more efficient, while reducing transfers (i.e., automated and manual
Account Transfer Standard confusion and risk to investors and processes) is largely driven by the
July 27, 2017. allowing them to better move their National Securities Clearing
municipal securities to their dealer of Corporation’s (‘‘NSCC’’) Automated
I. Introduction choice.8 Customer Account Transfer Service
On May 26, 2017, the Municipal As further described by the MSRB in (‘‘ACATS’’).16 The MSRB stated that it
Securities Rulemaking Board (the the Notice of Filing, Rule G–26 requires adopted Rule G–26 in conjunction with
‘‘MSRB’’ or ‘‘Board’’) filed with the dealers to cooperate in the transfer of the adoption of similar rules by other
Securities and Exchange Commission customer accounts and specifies self-regulatory organizations (‘‘SROs’’)—
(the ‘‘SEC’’ or ‘‘Commission’’), pursuant procedures for carrying out the transfer New York Stock Exchange (‘‘NYSE’’)
to Section 19(b)(1) of the Securities process.9 According to the MSRB, such Rule 412 and Financial Industry
Exchange Act of 1934 (‘‘Act’’) 1 and Rule transfers occur when a customer decides Regulatory Authority (‘‘FINRA’’) Rule
19b–4 thereunder,2 a proposed rule to transfer an account from one dealer, 11870.17 The MSRB stated that those
change consisting of proposed the carrying party (i.e., the dealer from rules are not applicable to certain
amendments to MSRB Rule G–26, on which the customer is requesting the accounts at dealers, particularly
account be transferred) to another, the municipal security-only accounts and
customer account transfers, to
receiving party (i.e., the dealer to which accounts at bank dealers.18 Current Rule
modernize the rule and promote a
the customer is requesting the account G–26 governs the municipal security-
uniform customer account transfer
be transferred).10 Moreover, Rule G–26 only customer account transfers
standard for all brokers, dealers,
currently establishes specific time performed by those dealers to ensure
municipal securities brokers and
frames within which the carrying party that all customer account transfers are
municipal securities dealers
is required to transfer a customer subject to regulation that is consistent
(collectively, ‘‘dealers’’) (the ‘‘proposed
account; limits the reasons for which a with the uniform industry standard.
rule change’’). The proposed rule
receiving party may take exception to an Thus, the MSRB noted, in order to
change was published for comment in
account transfer instruction; provides maintain consistency and the uniform
the Federal Register on June 14, 2017.3 standard, the MSRB has, from time to
The Commission received two for the establishment of fail-to-receive
time, modified the requirements of Rule
comment letters on the proposed rule and fail-to-deliver contracts; 11 and
G–26 to conform to certain provisions of
change.4 On July 20, 2017, the MSRB requires that fail contracts be resolved
the parallel FINRA and NYSE customer
responded to those comments 5 and in accordance with MSRB close-out
account transfer rules, as well as to
9 17 available at https://www.sec.gov/comments/sr-msrb-
enhancements made to the ACATS
CFR 200.30–3(a)(12) and (59).
1 15 U.S.C. 78s(b)(1). 2017-03/msrb201703-1871538-156223.pdf. process by NSCC, that had relevance to
2 17 CFR 240.19b–4. 6 Id. In Amendment No. 1, the MSRB proposed to municipal securities.19
3 Securities Exchange Act Release No. 80890 amend the requested implementation date to
provide for a longer implementation period and Residual Credit Positions
(June 7, 2017) (the ‘‘Notice of Filing’’), 82 FR 27307
(June 14, 2017). later effective date by proposing an effective date The MSRB has proposed to update
six months from the date of Commission approval
4 See Letter to Secretary, Commission, from Mike
rather than three months. Rule G–26 to include the transfer of
Nicholas, Chief Executive Officer, Bond Dealers of
sradovich on DSKBCFCHB2PROD with NOTICES
7 See Notice of Filing.
America (‘‘BDA’’), dated July 5, 2017 (the ‘‘BDA 12 See Notice of Filing.
8 Id.
Letter’’); and, Letter to Secretary, Commission, from 13 See
9 Id. Rule G–26(h).
Leslie M. Norwood, Managing Director and 14 See Rule G–26(i).
Associate General Counsel, Securities Industry and 10 Id.
15 See Notice of Filing.
Financial Markets Association (‘‘SIFMA’’), dated 11 The MSRB stated that fail-to-receive and fail-
16 Id.
July 5, 2017 (the ‘‘SIFMA Letter’’). to-deliver contracts are records maintained by the
5 See Letter to Secretary, Commission, from Carl 17 Id.
receiving party and the carrying party, respectively,
18 Id.
E. Tugberk, Assistant General Counsel, MSRB, when a customer account transfer fails. See Notice
dated July 20, 2017 (the ‘‘MSRB Response Letter’’), of Filing. 19 Id.
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Document Created: 2017-08-02 07:09:45
Document Modified: 2017-08-02 07:09:45
| 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 36037 |
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