82 FR 43059 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend Its Price List
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 176 (September 13, 2017)
Federal Register Volume 82, Issue 176 (September 13, 2017)
| Page Range | 43059-43061 | |
| FR Document | 2017-19376 |
[Federal Register Volume 82, Number 176 (Wednesday, September 13, 2017)] [Notices] [Pages 43059-43061] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-19376] [[Page 43059]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81547; File No. SR-NYSEAMER-2017-11] Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend Its Price List September 7, 2017. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on August 29, 2017, NYSE American LLC (the ``Exchange'' or ``NYSE American'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self- regulatory organization. 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\ 15 U.S.C. 78a. \3\ 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 amend its Price List to (1) delete fees and credits that are not applicable to trading on the Pillar trading platform, and (2) prorate Port Fees to the number of trading days in a billing month that a port is utilized. The Exchange proposes to implement the rule change on September 1, 2017. The proposed 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. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Price List to (1) delete fees and credits that are not applicable to trading on the Pillar trading platform, and (2) prorate Port Fees to the number of trading days in a billing month that a port is utilized. The Exchange proposes to implement the rule change on September 1, 2017. Deletion of Non-Pillar Fees and Credits To effect its transition of cash equities trading to Pillar, the Exchange amended its Price List to adopt a new pricing model for trading on the Pillar platform.\4\ Because specified transaction fees and credits applicable to trading cash equities on a Floor-based trading platform are not applicable to trading on Pillar, the Exchange designated certain fees and credits with the following preamble: ``The following Fees and Credits are not Applicable to Trading on the Pillar Trading Platform.'' \5\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release Nos. [sic] 81228 (July 27, 2017), 82 FR 36012 (August 2, 2017) (SR-NYSEMKT-2017-43). \5\ See id., 82 FR at 36012-13. --------------------------------------------------------------------------- On July 24, 2017, the Exchange transitioned all cash equities trading to the Pillar platform. Because transaction fees and credits that are not applicable to trading on the Pillar trading platform are now obsolete, the Exchange proposes to delete the following fees and credits in their entirety: \6\ --------------------------------------------------------------------------- \6\ The Exchange proposes to delete these fees and credits in their entirety, including (1) the section headings of all of credits and fees being deleted, (2) all associated footnotes, and (3) the recently added preamble. ---------------------------------------------------------------------------Equity Transaction Fees and Credits for Listed Securities and the following subheadings: [cir] Transactions in Securities with a Per Share Price of $1.00 or More; [cir] Transactions in Securities with a Per Share Price Below $1.00; [cir] Fees and Credits Applicable to Designated Market Makers on Transactions in Securities with a Per Share Price of $1.00 or more; [cir] Fees and Credits Applicable to Designated Market Makers on Transactions in Securities with a Per Share Price below $1.00; [cir] Credits Applicable to Supplemental Liquidity Providers; and [cir] Fees and Credits Applicable to Executions in the Retail Liquidity Program. Transaction Fees and Credits For Non-ETP Securities Traded Pursuant to Unlisted Trading Privileges and the following subheadings: [cir] Fees and Credits applicable to Market Participants; [cir] Fees and Credits applicable to Designated Market Makers (DMMs); [cir] Fees and Credits applicable to Supplemental Liquidity Providers (SLPs); and [cir] Fees and Credits Applicable to Executions in the Retail Liquidity Program. Transaction Fees and Credits For ETPs Traded Pursuant to Unlisted Trading Privileges and the following subheadings: [cir] Fees and Credits applicable to Market Participants; [cir] Fees and Credits applicable to DMMs; [cir] Fees and Credits applicable to SLPs; [cir] Fees and Credits Applicable to Executions in the Retail Liquidity Program; and [cir] Crossing Sessions Port Fees. * * * * * The Exchange proposes to delete the following additional fees as being inapplicable to trading on Pillar: [cir] Risk Management Gateway (``RMG''); [cir] Equipment fees; [cir] Radio Paging Service; [cir] Financial Vendor Services; [cir] Cellular Phones; [cir] Booth Telephone System; [cir] Service Charges; and [cir] System Processing Fees, comprising fees for the Online Comparison System (OCS) and Merged Order Report. The RMG is no longer supported in Pillar and the various equipment fees relate to trading cash equities on a Floor-based trading platform, and are thus obsolete. Similarly, the Exchange no longer utilizes OCS or makes Merged Order Reports available. The Exchange also proposes to delete footnotes 17-19 designated as ``Reserved'' in the ``CRD Fees for Member Organizations that are not FINRA Members'' section of the Price List. The Exchange believes it would reduce confusion and promote transparency to delete footnotes that do not have any substantive content. The Exchange also proposes a technical, non-substantive amendment to replace the heading ``Pillar Trading Platform'' with ``NYSE American Trading Fees and Credits.'' Proration of Port Fees Until October 1, 2017, the Exchange is not charging market participants for the use of order/quote entry ports or for the [[Page 43060]] use of drop copy ports.\7\ Thereafter, a $250 per port per month fee will apply for order/quote entry and drop copy ports. --------------------------------------------------------------------------- \7\ Order/quote entry ports provide connectivity to the Exchange's trading systems for entry of orders and/or quotes. Drop copy ports allow for the receipt of ``drop copies'' of order or transaction information. --------------------------------------------------------------------------- The Exchange proposes to amend the Price List to add a footnote to the heading of Section V (Port Fees) providing that port fees for order/quote entry and drop copies will be prorated to the number of trading days in a billing month. * * * * * The proposed changes are not otherwise intended to address any other issues, and the Exchange is not aware of any problems that member organizations would have in complying with the proposed change. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\8\ in general, and furthers the objectives of Section 6(b)(4) \9\ of the Act, in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange also believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,\10\ in particular in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to, and perfect the mechanism of, a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(4). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that its proposed rule change to eliminate fees and credits that are not applicable to trading on Pillar would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would eliminate fees and credits that are now obsolete. Eliminating obsolete fees and credits would reduce potential confusion and add transparency and clarity to the Exchange's rules, thereby ensuring that members, regulators, and the public can more easily navigate and understand the Exchange's rulebook. The Exchange also believes that prorating the fees for order/quote entry and drop copy ports is reasonable because it would provide a nexus between the Exchange's charge for use of its ports and the number of trading days in a billing month that the market participant utilizes the applicable port. The Exchange believes that the proposed prorating of monthly port fees rebate is equitable and not unfairly discriminatory because it directly ties the monthly port fees to the number of trading days in that billing month. The Exchange also believes that the proposed prorating is equitable and not unfairly discriminatory because all market participants utilizing ports to connect to the Exchange would be treated the same. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\11\ the Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not intended to address any competitive issues, but rather it is designed to eliminate obsolete fees and credits. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees and rebates to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees and credits in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. As a result of all of these considerations, the Exchange does not believe that the proposed changes will impair the ability of member organizations or competing order execution venues to maintain their competitive standing in the financial markets. 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 foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule 19b-4 \13\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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) \14\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEAMER-2017-11 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEAMER-2017-11. 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 [[Page 43061]] 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-NYSEAMER-2017-11 and should be submitted on or before October 4, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Eduardo A. Aleman, Assistant Secretary. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2017-19376 Filed 9-12-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices 43059
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Æ Fees and Credits applicable to
COMMISSION Statement of the Purpose of, and the Market Participants;
Statutory Basis for, the Proposed Rule Æ Fees and Credits applicable to
[Release No. 34–81547; File No. SR– Change Designated Market Makers (DMMs);
NYSEAMER–2017–11] 1. Purpose Æ Fees and Credits applicable to
Supplemental Liquidity Providers
The Exchange proposes to amend its (SLPs); and
Self-Regulatory Organizations; NYSE
Price List to (1) delete fees and credits
American LLC; Notice of Filing and Æ Fees and Credits Applicable to
that are not applicable to trading on the
Immediate Effectiveness of Proposed Executions in the Retail Liquidity
Pillar trading platform, and (2) prorate
Change To Amend Its Price List Program.
Port Fees to the number of trading days
in a billing month that a port is utilized. • Transaction Fees and Credits For
September 7, 2017. ETPs Traded Pursuant to Unlisted
The Exchange proposes to implement
Pursuant to Section 19(b)(1) 1 of the the rule change on September 1, 2017. Trading Privileges and the following
Securities Exchange Act of 1934 (the subheadings:
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Deletion of Non-Pillar Fees and Credits Æ Fees and Credits applicable to
notice is hereby given that, on August To effect its transition of cash equities Market Participants;
29, 2017, NYSE American LLC (the trading to Pillar, the Exchange amended Æ Fees and Credits applicable to
‘‘Exchange’’ or ‘‘NYSE American’’) filed its Price List to adopt a new pricing DMMs;
with the Securities and Exchange model for trading on the Pillar Æ Fees and Credits applicable to
Commission (the ‘‘Commission’’) the platform.4 Because specified transaction SLPs;
proposed rule change as described in fees and credits applicable to trading Æ Fees and Credits Applicable to
cash equities on a Floor-based trading Executions in the Retail Liquidity
Items I, II, and III below, which Items
platform are not applicable to trading on Program; and
have been prepared by the self-
Pillar, the Exchange designated certain Æ Crossing Sessions
regulatory organization. The
fees and credits with the following
Commission is publishing this notice to • Port Fees.
preamble: ‘‘The following Fees and
solicit comments on the proposed rule Credits are not Applicable to Trading on * * * * *
change from interested persons. the Pillar Trading Platform.’’ 5 The Exchange proposes to delete the
On July 24, 2017, the Exchange following additional fees as being
I. Self-Regulatory Organization’s
transitioned all cash equities trading to inapplicable to trading on Pillar:
Statement of the Terms of Substance of
the Pillar platform. Because transaction Æ Risk Management Gateway
the Proposed Rule Change
fees and credits that are not applicable (‘‘RMG’’);
The Exchange proposes to amend its to trading on the Pillar trading platform Æ Equipment fees;
Price List to (1) delete fees and credits are now obsolete, the Exchange Æ Radio Paging Service;
that are not applicable to trading on the proposes to delete the following fees Æ Financial Vendor Services;
Pillar trading platform, and (2) prorate and credits in their entirety: 6 Æ Cellular Phones;
Port Fees to the number of trading days • Equity Transaction Fees and Credits Æ Booth Telephone System;
in a billing month that a port is utilized. for Listed Securities and the following
Æ Service Charges; and
The Exchange proposes to implement subheadings:
Æ Transactions in Securities with a Æ System Processing Fees, comprising
the rule change on September 1, 2017. Per Share Price of $1.00 or More; fees for the Online Comparison System
The proposed change is available on the Æ Transactions in Securities with a (OCS) and Merged Order Report.
Exchange’s Web site at www.nyse.com, Per Share Price Below $1.00; The RMG is no longer supported in
at the principal office of the Exchange, Æ Fees and Credits Applicable to Pillar and the various equipment fees
and at the Commission’s Public Designated Market Makers on relate to trading cash equities on a
Reference Room. Transactions in Securities with a Per Floor-based trading platform, and are
Share Price of $1.00 or more; thus obsolete. Similarly, the Exchange
II. Self-Regulatory Organization’s Æ Fees and Credits Applicable to no longer utilizes OCS or makes Merged
Statement of the Purpose of, and Designated Market Makers on Order Reports available.
Statutory Basis for, the Proposed Rule Transactions in Securities with a Per The Exchange also proposes to delete
Change Share Price below $1.00; footnotes 17–19 designated as
Æ Credits Applicable to Supplemental ‘‘Reserved’’ in the ‘‘CRD Fees for
In its filing with the Commission, the
Liquidity Providers; and Member Organizations that are not
self-regulatory organization included Æ Fees and Credits Applicable to FINRA Members’’ section of the Price
statements concerning the purpose of, Executions in the Retail Liquidity List. The Exchange believes it would
and basis for, the proposed rule change Program. reduce confusion and promote
and discussed any comments it received • Transaction Fees and Credits For transparency to delete footnotes that do
on the proposed rule change. The text Non-ETP Securities Traded Pursuant to not have any substantive content.
of those statements may be examined at Unlisted Trading Privileges and the The Exchange also proposes a
the places specified in Item IV below. following subheadings: technical, non-substantive amendment
The Exchange has prepared summaries, to replace the heading ‘‘Pillar Trading
sradovich on DSK3GMQ082PROD with NOTICES
set forth in sections A, B, and C below, 4 See Securities Exchange Act Release Nos. [sic]
Platform’’ with ‘‘NYSE American
of the most significant parts of such 81228 (July 27, 2017), 82 FR 36012 (August 2, 2017)
(SR–NYSEMKT–2017–43). Trading Fees and Credits.’’
statements. 5 See id., 82 FR at 36012–13.
6 The Exchange proposes to delete these fees and
Proration of Port Fees
1 15
credits in their entirety, including (1) the section Until October 1, 2017, the Exchange is
U.S.C. 78s(b)(1).
headings of all of credits and fees being deleted, (2)
2 15 U.S.C. 78a. all associated footnotes, and (3) the recently added
not charging market participants for the
3 17 CFR 240.19b–4. preamble. use of order/quote entry ports or for the
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![Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices 43061
Internet Web site (http://www.sec.gov/ the Federal Register on July 31, 2017.3 proposes in the Proposed Rule Change
rules/sro.shtml). Copies of the The Commission did not receive any to expand the application of the FIS
submission, all subsequent comments on the Proposed Rule Charge to all Members, regardless of a
amendments, all written statements Change. For the reasons discussed Member’s Watch List status, but still
with respect to the proposed rule below, the Commission approves the maintain a higher FIS Charge for
change that are filed with the Proposed Rule Change. Members that present a greater credit
Commission, and all written I. Description of the Proposed Rule risk to NSCC, such as Members on the
communications relating to the Change Watch List.9
proposed rule change between the Currently, in calculating a Watch List
Commission and any person, other than The Proposed Rule Change is a Member’s overall margin charge (i.e., a
those that may be withheld from the proposal by NSCC to further address Watch List Member’s required deposit
public in accordance with the specific wrong-way risk 4 that is present to NSCC’s clearing fund), NSCC
provisions of 5 U.S.C. 552, will be when NSCC acts as central counterparty excludes the Member’s net, unsettled
available for Web site viewing and to a transaction with an NSCC member long position in family-issued securities
printing in the Commission’s Public (‘‘Member’’) where the underlying from the volatility component of the
Reference Room, 100 F Street NE., securities are securities issued by such margin calculation (‘‘VaR Charge’’).10
Washington, DC 20549 on official Member or an affiliate of such Member Instead, for such unsettled long
business days between the hours of (‘‘family-issued securities’’).5 Currently, positions, NSCC calculates the required
10:00 a.m. and 3:00 p.m. Copies of the NSCC applies a targeted margin charge margin (i.e., the FIS Charge) by
filing also will be available for to address the specific wrong-way risk multiplying the position value by a set
inspection and copying at the principal of family-issued securities transactions percentage, which is determined based
office of the Exchange. All comments (‘‘FIS Charge’’) where the Member is on on a Member’s rating on NSCC’s
received will be posted without change; NSCC’s Watch List.6 NSCC believes that internal credit risk rating matrix.11
the Commission does not edit personal Members on the Watch List present a NSCC applies this separate margin
identifying information from higher credit risk (i.e., a greater risk of calculation to deal with specific wrong-
submissions. You should submit only defaulting on their settlement way risk that arises from these positions
information that you wish to make obligations), compared to Members not because NSCC has to liquidate the
available publicly. All submissions on the Watch List.7 As such, the family- unsettled family-issued security long
should refer to File Number SR– issued securities of Members on the positions in the Member’s portfolio to
Watch List currently receive a FIS
NYSEAMER–2017–11 and should be manage the default.12 Given that the
Charge because of the increased credit
submitted on or before October 4, 2017. Member’s default would likely
risk presented by such Members.8 As
For the Commission, by the Division of adversely affect NSCC’s ability to
described in detail below, NSCC
Trading and Markets, pursuant to delegated liquidate such positions at full value
authority.15 3 Securities Exchange Act Release No. 81203 (July
(because the value of the family-issued
Eduardo A. Aleman, 25, 2017), 82 FR 35563 (July 31, 2017) (SR–NSCC– securities will decline in response to the
Assistant Secretary. 2017–010) (‘‘Notice’’). NSCC also filed a related Member’s default), NSCC applies the
advance notice with the Commission pursuant to FIS Charge to try to address the risk of
[FR Doc. 2017–19376 Filed 9–12–17; 8:45 am] Section 806(e)(1) of the Payment, Clearing, and
Settlement Supervision Act of 2010 and Rule 19b–
a shortfall.13 According to NSCC, the
BILLING CODE 8011–01–P
4(n)(1) under the Act. 15 U.S.C. 5465(e)(1) and 17 FIS Charge constitutes a more
CFR 240.19b–4(n)(1). The advance notice was conservative approach to collecting
published in the Federal Register on August 2, margin on family-issued security
SECURITIES AND EXCHANGE 2017. Securities Exchange Act Release No. 81286
COMMISSION (August 2, 2017), 82 FR 37141 (August 8, 2017)
positions than what may be achieved by
(SR–NSCC–2017–804). The Commission did not applying the VaR Charge, which does
receive any comments on that proposal. not recognize the relationship between
[Release No. 34–81550; File No. SR–NSCC– 4 Specific wrong-way risk is the risk that an
the Member and the family-issued
2017–010] exposure to a counterparty is highly likely to
increase when the creditworthiness of that
securities.14
Self-Regulatory Organizations; counterparty is deteriorating. See Principles for Although the risk of default by
National Securities Clearing financial market infrastructures, issued by the Members that are not on the Watch List
Committee on Payment and Settlement Systems and is lower than Members on the Watch
Corporation; Order Approving the Technical Committee of the International
Proposed Rule Change To Expand the Organization of Securities Commissions 47 n.65
9 Id.
Application of the Family-Issued (April 2012), available at http://www.bis.org/publ/
10 Id.
Securities Charge cpss101a.pdf.
5 Notice, 82 at 35563–64. As part of this proposal, 11 Id. More specifically, fixed-income securities
NSCC proposes to define in its rules that, for a that are family-issued securities are charged a rate
September 7, 2017.
given Member, a family-issued security is a security of no less than 80 percent for firms that are rated
On July 10, 2017, National Securities that was issued by such Member or an affiliate of 6 or 7 on the credit risk rating matrix, and no less
such Member. Notice, 82 at 35563. than 40 percent for firms that are rated 5 on the
Clearing Corporation (‘‘NSCC’’) filed 6 Notice, 82 at 35563. As part of its ongoing credit risk rating matrix. Equity securities that are
with the Securities and Exchange monitoring of its membership, NSCC utilizes an family-issued securities are charged a rate of 100
Commission (‘‘Commission’’) proposed internal credit risk rating matrix to rate its risk percent for firms that are rated 6 or 7 on the credit
rule change SR–NSCC–2017–010 exposures to its Members based on a scale from 1 risk rating matrix, and no less than 50 percent for
(the strongest) to 7 (the weakest). Members that fall firms that are rated 5 on the credit risk rating
(‘‘Proposed Rule Change’’) pursuant to matrix. See Section I(B)(1) of Procedure XV of
within the weakest three rating categories (i.e., 5, 6,
sradovich on DSK3GMQ082PROD with NOTICES
Section 19(b)(1) of the Securities and 7) are placed on NSCC’s ‘‘Watch List’’ and, as NSCC’s Rules, available at http://dtcc.com/∼/
Exchange Act of 1934 (‘‘Act’’) 1 and Rule provided under NSCC’s Rules and Procedures media/Files/Downloads/legal/rules/nscc_rules.pdf.
19b–4 thereunder.2 The Proposed Rule (‘‘Rules’’), may be subject to enhanced surveillance 12 Notice, 82 at 35564. In a default scenario, NSCC
Change was published for comment in or additional margin charges. See Section 4 of Rule would receive the family-issued securities from a
2B and Section I(B)(1) of Procedure XV of NSCC’s Member’s guaranteed long transactions and would
Rules, available at http://dtcc.com/∼/media/Files/ have to liquidate the holding to unwind NSCC’s
15 17 CFR 200.30–3(a)(12). Downloads/legal/rules/nscc_rules.pdf. position. Id.
1 15 U.S.C. 78s(b)(1). 7 Notice, 82 at 35564. 13 Id.
2 17 CFR 240.19b–4. 8 Id. 14 Id.
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Document Created: 2017-09-13 00:09:12
Document Modified: 2017-09-13 00:09:12
| Category | Regulatory Information | |
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| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 82 FR 43059 |
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