82 FR 44222 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Order Approving Proposed Rule Change to a Proposal To Amend Rule 1027, Discretionary Accounts, To Conform It More Closely to a Comparable Rule of the Chicago Board Options Exchange (“CBOE”) and To Make Minor Corrections and Clarifications

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 182 (September 21, 2017)

Page Range		44222-44224
FR Document		2017-20087
Federal Register, Volume 82 Issue 182 (Thursday, September 21, 2017)
[Federal Register Volume 82, Number 182 (Thursday, September 21, 2017)]
[Notices]
[Pages 44222-44224]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-20087]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81630; File No. SR-PHLX-2017-56]


Self-Regulatory Organizations; NASDAQ PHLX LLC; Order Approving 
Proposed Rule Change to a Proposal To Amend Rule 1027, Discretionary 
Accounts, To Conform It More Closely to a Comparable Rule of the 
Chicago Board Options Exchange (``CBOE'') and To Make Minor Corrections 
and Clarifications

September 15, 2017.

I. Introduction

    On July 20, 2017, NASDAQ PHLX LLC (``Phlx'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission''), pursuant 
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Exchange 
Act'') \1\ and Rule 19b-4 thereunder,\2\ proposed rule changes to amend 
Phlx Rule 1027 (Discretionary Accounts).
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule changes were published for comment in the Federal 
Register on August 4, 2017.\3\ The public comment period closed on 
August 25, 2017. The Commission received no comments on the proposed 
rule changes. This order approves the proposed rule changes.
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    \3\ See Exchange Act Release No. 81270 (Jul. 31, 2017), 82 FR 
36469 (Aug. 4, 2017) (``Notice'').
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II. Description of the Proposed Rule Changes \4\
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    \4\ The subsequent description of the proposed rule change is 
substantially excerpted from the Exchange's description in the 
Notice. See Notice, 82 FR 36469-71.
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    Rule 1027 generally imposes restrictions and various requirements 
on

[[Page 44223]]

members \5\ and partners and employees of member organizations \6\ 
regarding the exercise of discretionary power with respect to trading 
in options in a customer's accounts. The Exchange proposes to amend 
Rule 1027 in a number of respects to eliminate redundant rule text, 
clarify certain rule text, and conform parts of the rule more closely 
to CBOE Rule 9.10, Discretionary Accounts.\7\
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    \5\ Exchange Rule 1(n) defines ``member'' as a permit holder 
which has not been terminated in accordance with the By-Laws and 
Rules of the Exchange. The Exchange has issued ``Series A-1'' 
permits, which confer on the holder rights and privileges, and 
impose on the holder the obligations, set forth in Exchange Rule 
908. Under Exchange Rule 908(b), a Series A-1 permit may only be 
issued to an individual who is a natural person of at least twenty-
one (21) years of age, or to a corporation meeting the eligibility 
and application requirements set forth in the By-Laws and Rules.
    \6\ Rule 1(o) defines ``member organization'' as ``a 
corporation, partnership (general or limited), limited liability 
partnership, limited liability company, business trust or similar 
organization, transacting business as a broker or a dealer in 
securities and which has the status of a member organization by 
virtue of (i) admission to membership given to it by the Membership 
Department pursuant to the provisions of Rules 900.1 or 900.2 or the 
By-Laws or (ii) the transitional rules adopted by the Exchange 
pursuant to Section 6-4 of the By-Laws.'' Rule 901(a) provides in 
part that ``[t]he Membership Department shall have jurisdiction over 
the issuance of memberships (in respect of members and member 
organizations) and permits and over applications by non-members for 
admission as members.'' Rule 901(c) provides that ``[a]ll 
applications to qualify and register a corporation or other entity 
as a member organization and all applications for reinstatement of 
any qualification or registration of a member organization shall be 
referred to the Membership Department which shall investigate and 
act thereon.''
    \7\ CBOE Rule 9.10 was substantially amended in Securities 
Exchange Act Release No. 56492 (September 21, 2007), 72 FR 54952 
(September 27, 2007) (SR-CBOE-2007-106) to create a supervisory 
structure for options that is similar to that required by New York 
Stock Exchange (``NYSE'') and National Association of Securities 
Dealers (``NASD'') rules. On July 26, 2007, the Commission approved 
a proposed rule change filed by NASD to amend NASD's Certificate of 
Incorporation to reflect its name change to Financial Industry 
Regulatory Authority Inc., or FINRA, in connection with the 
consolidation of the member firm regulatory functions of NASD and 
NYSE Regulation, Inc. See Securities Exchange Act Release No. 56146 
(July 26, 2007).
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Rule 1027(a) Authorization and Approval Required

    Rules 1027(a)(i) and (ii) apply to stock or exchange-traded fund 
share options and foreign currency options, respectively. These 
provisions prohibit the exercise of any discretionary power with 
respect to trading in options contracts in a customer's account unless 
such customer has given prior written authorization with respect to 
such trading and the account has been accepted in writing by a 
designated Registered Options Principal or, in the case of foreign 
currency options, a Foreign Currency Options Principal.
    The Exchange proposes to amend Rule 1027(a)(i) to include index 
options, as their current exclusion from the rule is without a rational 
basis and was likely an oversight. The Exchange also proposes to expand 
the rule to cover member organizations, to be more consistent with the 
comparable CBOE rule which applies to CBOE Trading Permit Holder 
(``TPH'') organizations.\8\ References to Registered Options Principal 
``qualified persons'' or ``qualified individuals'' in Rule 1027(a)(i) 
are proposed to be amended in order to refer only to ``Registered 
Options Principals,'' in order to eliminate needless ambiguity and lack 
of clarity as to who is a Registered Options Principal ``qualified 
person'' or ``qualified individual.'' Additionally, the last two 
sentences of Rule 1027(a)(i) currently provide that every discretionary 
order shall be identified as discretionary at the time of entry, and 
that discretionary accounts shall receive frequent review by a 
Registered Options Principal qualified person specifically delegated 
such responsibilities under Rule 1025, who is not exercising the 
discretionary authority. These sentences are largely duplicative of 
existing Rule 1027(a)(iii) and are therefore proposed to be deleted.
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    \8\ Rule 1027(a)(ii) addresses foreign currency options and has 
no counterpart in CBOE Rule 9.10(a). The Exchange is nevertheless 
proposing to revise Rule 1027(a)(ii) by expanding its scope to 
include member organizations for consistency with Rule 1027(a)(i) in 
terms of extent of coverage of the rule.
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    The Exchange proposes to delete from Rule 1027(a)(iii) a reference 
to ``Compliance Registered Option Principal,'' a term which the 
Exchange no longer uses, and proposes to substitute the term 
``Registered Options Principal.'' It also proposes to amend that 
section by adding language requiring the Registered Options Principal 
providing appropriate supervisory review to be specifically delegated 
such responsibilities under Rule 1025 and not be the Registered Options 
Principal exercising the discretionary review. These changes would 
conform Rule 1027(a)(iii) to the duplicative language deleted from Rule 
1027(a)(i) as described above. The Exchange also proposes to delete the 
last sentence of Rule 1027(a)(iii), which provides that the provisions 
of paragraph (a) shall not apply to discretion as to the price at which 
or the time when an order given by a customer for the purchase or sale 
of a definite number of option contracts in a specified security or 
foreign currency shall be executed. This sentence is largely 
duplicative of existing language in Rule 1027(e), Discretion as to Time 
or Price Excepted. Rule 1027(e), however, is proposed to be amended by 
the addition of a reference to ``foreign currency'' which was present 
in the deleted sentence of Rule 1027(a)(iii).
    The Exchange is proposing no changes to Rule 1027(a)(iv), which 
extends the provisions of Rule 1027 to index warrants, as no changes 
are required.

Rule 1027(c) Prohibited Transactions

    Currently, Rule 1027(c) prohibits members as well as partners, 
officers and employees of a member organization having discretionary 
power over a customer's account from, in the exercise of such 
discretion, executing or causing to be executed therein any purchases 
or sales of option contracts which are excessive in size or frequency 
in view of the financial resources in such account. The prohibition is 
proposed to be reworded, to conform Phlx Rule 1027(c) more closely to 
CBOE Rule 9.10, Discretionary Accounts, section (c). Additionally, the 
rule would be expanded to cover member organizations as well as members 
and partners and employees of member organizations.

Rule 1027(d) Record of Transactions

    Rule 1027(d) currently requires a record to be made of every 
transaction in option contracts in respect to which a member or a 
partner, officer or employee of a member organization has exercised 
discretionary authority, clearly reflecting such fact and indicating 
the name of the customer, the designation and number of the option 
contracts, the premium and the date and time when such transaction was 
effected. The Exchange proposes to reword the rule so that it applies 
to option transactions for an account in respect to which a member or 
member organization or a partner, officer or employee of a member 
organization is vested with any discretionary authority, and to detail 
the required content of the record. The revision proposed for Rule 
1027(d) would conform the rule more closely to CBOE Rule 9.10, 
Discretionary Accounts, section (b), which extends to CBOE TPH 
organizations, except that the Exchange proposes to retain the existing 
requirement that the transaction record clearly reflect that the member 
(or, as the rule is proposed to be amended, member organization) or a 
partner,

[[Page 44224]]

officer or employee of a member organization has exercised 
discretionary authority, as the Exchange believes this to be important 
information with respect to a transaction.

Rule 1027(e) Discretion as to Time or Price Excepted

    As discussed above the Exchange proposes to amend Rule 1027(e), 
which generally excludes price and time discretion from the 
requirements of Rule 1027, to cover foreign currency options. The 
Exchange also proposes to correct an internal cross reference to ``this 
paragraph (d)'' which should read ``this paragraph (e).''

III. Discussion and Commission Findings

    After careful review of the proposed rule change, the Commission 
finds that the proposal is consistent with the requirements of the 
Exchange Act and the rules and regulations thereunder that are 
applicable to a national securities exchange.\9\ Specifically, the 
Commission finds that the proposed rule changes are consistent with 
Section 6(b)(5) of the Exchange Act,\10\ which requires, among other 
things, that the rules of a national securities exchange be designed to 
prevent fraudulent and manipulative acts and practices; to promote just 
and equitable principles of trade; 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. Section 
6(b)(5) also requires that the rules of an exchange not be designed to 
permit unfair discrimination among customers, issuers, brokers, or 
dealers.
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    \9\ In approving this rule change, the Commission has considered 
the rule's impact on efficiency, competition, and capital formation. 
See 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(5).
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    The proposal is designed to ``remove impediments to and perfect the 
mechanism of a free and open market and a national market system, by 
eliminating redundant rule text, clarifying certain rule text, and 
conforming parts of the rule more closely to CBOE Rule 9.10, 
Discretionary Accounts.'' \11\ The Commission notes that Phlx believes 
that harmonizing its rule regarding discretionary accounts with its 
CBOE counterpart will create ``more efficient regulatory compliance by 
members of both exchanges due to reduction of differences in wording 
and consequent potential for inadvertent regulatory noncompliance.'' 
\12\ The Commission further notes that Phlx believes that harmonizing 
Rule 1027 with its CBOE counterpart will ``further the goal of 
harmonized examinations and enforcement of similar rules, thus reducing 
duplicative regulatory efforts'' and thus lowering overall regulatory 
costs imposed on member organizations and, by extension, the general 
public.\13\ The Commission notes that the proposal received no comments 
from the public. Taking into consideration the Exchange's views about 
the proposed amendments, the Commission believes that the proposal will 
promote regulatory efficiency through more streamlined rule text that 
avoids unnecessary redundancy, clarification of the meaning and scope 
of the rule, and greater harmonization of regulatory requirements 
across national securities exchanges, thereby reducing regulatory 
burdens, without undermining strong regulatory protections for 
investors. The Commission believes that the approach proposed by the 
Exchange is appropriate and designed to protect investors and the 
public interest, consistent with Section 6(b)(5) of the Exchange Act. 
For these reasons, the Commission finds that the proposed rule change 
is consistent with the Exchange Act and the rules and regulations 
thereunder.
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    \11\ Notice, 82 FR at 36471.
    \12\ Id.
    \13\ See id.
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IV. Conclusion

    It is therefore ordered pursuant to Section 19(b)(2) \14\ of the 
Exchange Act that the proposal (SR-PHLX-2017-56), be and hereby is 
approved.
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    \14\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-20087 Filed 9-20-17; 8:45 am]
 BILLING CODE 8011-01-P
44222 Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Notices

www.prc.gov. Those who cannot submit II. Docketed Proceeding(s) DATES: Date of notice required under 39
comments electronically should contact 1. Docket No(s).: CP2016–93; Filing U.S.C. 3642(d)(1): September 21, 2017.
the person identified in the FOR FURTHER Title: Notice of United States Postal FOR FURTHER INFORMATION CONTACT:
INFORMATION CONTACT section by Elizabeth A. Reed, 202–268–3179.
Service of Change in Prices Pursuant to
telephone for advice on filing Amendment to Parcel Select Contract SUPPLEMENTARY INFORMATION: The
alternatives. 13; Filing Acceptance Date: September United States Postal Service® hereby
FOR FURTHER INFORMATION CONTACT: 15, 2017; Filing Authority: 39 CFR gives notice that, pursuant to 39 U.S.C.
David A. Trissell, General Counsel, at 3015.5, Public Representative: Matthew 3642 and 3632(b)(3), on September 15,
202–789–6820. R. Ashford; Comments Due: September 2017, it filed with the Postal Regulatory
SUPPLEMENTARY INFORMATION:
25, 2017. Commission a Request of the United
2. Docket No(s).: CP2016–138; Filing States Postal Service to Add First-Class
Table of Contents Title: Notice of United States Postal Package Service Contract 81 to
Service of Change in Prices Pursuant to Competitive Product List. Documents
I. Introduction Amendment to Priority Mail Contract are available at www.prc.gov, Docket
II. Docketed Proceeding(s)
203; Filing Acceptance Date: September Nos. MC2017–203, CP2017–310.
I. Introduction 15, 2017; Filing Authority: 39 CFR
Elizabeth A. Reed,
3015.5, Public Representative: Matthew
The Commission gives notice that the R. Ashford; Comments Due: September Attorney, Corporate and Postal Business Law.
Postal Service filed request(s) for the 25, 2017. [FR Doc. 2017–20063 Filed 9–20–17; 8:45 am]
Commission to consider matters related 3. Docket No(s).: MC2017–203 and BILLING CODE 7710–12–P
to negotiated service agreement(s). The CP2017–310; Filing Title: Request of the
request(s) may propose the addition or United States Postal Service to Add
removal of a negotiated service First-Class Package Service Contract 81 SECURITIES AND EXCHANGE
agreement from the market dominant or to Competitive Product List and Notice COMMISSION
the competitive product list, or the of Filing (Under Seal) of Unredacted
modification of an existing product Governors’ Decision, Contract, and
[Release No. 34–81630; File No. SR–PHLX–
currently appearing on the market 2017–56]
Supporting Data; Filing Acceptance
dominant or the competitive product Date: September 15, 2017; Filing
list. Self-Regulatory Organizations;
Authority: 39 U.S.C. 3642 and 39 CFR NASDAQ PHLX LLC; Order Approving
Section II identifies the docket 3020.30 et seq., Public Representative:
number(s) associated with each Postal Proposed Rule Change to a Proposal
Katalin K. Clendenin; Comments Due: To Amend Rule 1027, Discretionary
Service request, the title of each Postal September 25, 2017.
Service request, the request’s acceptance Accounts, To Conform It More Closely
4. Docket No(s).: CP2017–311; Filing to a Comparable Rule of the Chicago
date, and the authority cited by the Title: Notice of United States Postal
Postal Service for each request. For each Board Options Exchange (‘‘CBOE’’)
Service of Filing a Functionally and To Make Minor Corrections and
request, the Commission appoints an Equivalent Global Expedited Package
officer of the Commission to represent Clarifications
Services 3 Negotiated Service
the interests of the general public in the Agreement and Application for Non- September 15, 2017.
proceeding, pursuant to 39 U.S.C. 505 Public Treatment of Materials Filed
(Public Representative). Section II also I. Introduction
Under Seal; Filing Acceptance Date:
establishes comment deadline(s) September 15, 2017; Filing Authority: 39 On July 20, 2017, NASDAQ PHLX
pertaining to each request. CFR 3015.5, Public Representative: LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with
The public portions of the Postal Katalin K. Clendenin; Comments Due: the Securities and Exchange
Service’s request(s) can be accessed via September 25, 2017. Commission (‘‘Commission’’), pursuant
the Commission’s Web site (http:// This notice will be published in the to Section 19(b)(1) of the Securities
www.prc.gov). Non-public portions of Federal Register. Exchange Act of 1934 (‘‘Exchange
the Postal Service’s request(s), if any, Act’’) 1 and Rule 19b–4 thereunder,2
can be accessed through compliance Stacy L. Ruble, proposed rule changes to amend Phlx
with the requirements of 39 CFR Secretary. Rule 1027 (Discretionary Accounts).
3007.40. [FR Doc. 2017–20129 Filed 9–20–17; 8:45 am] The proposed rule changes were
The Commission invites comments on BILLING CODE 7710–FW–P published for comment in the Federal
whether the Postal Service’s request(s) Register on August 4, 2017.3 The public
in the captioned docket(s) are consistent comment period closed on August 25,
with the policies of title 39. For 2017. The Commission received no
request(s) that the Postal Service states POSTAL SERVICE comments on the proposed rule
concern market dominant product(s), changes. This order approves the
Product Change—First-Class Package proposed rule changes.
applicable statutory and regulatory
Service Negotiated Service Agreement
requirements include 39 U.S.C. 3622, 39 II. Description of the Proposed Rule
U.S.C. 3642, 39 CFR part 3010, and 39 AGENCY: Postal ServiceTM. Changes 4
asabaliauskas on DSKBBXCHB2PROD with NOTICES

CFR part 3020, subpart B. For request(s) ACTION: Notice.
that the Postal Service states concern Rule 1027 generally imposes
competitive product(s), applicable SUMMARY: The Postal Service gives restrictions and various requirements on
statutory and regulatory requirements notice of filing a request with the Postal
1 15 U.S.C. 78s(b)(1).
include 39 U.S.C. 3632, 39 U.S.C. 3633, Regulatory Commission to add a 2 17 CFR 240.19b–4.
39 U.S.C. 3642, 39 CFR part 3015, and domestic shipping services contract to 3 See Exchange Act Release No. 81270 (Jul. 31,
39 CFR part 3020, subpart B. Comment the list of Negotiated Service 2017), 82 FR 36469 (Aug. 4, 2017) (‘‘Notice’’).
deadline(s) for each request appear in Agreements in the Mail Classification 4 The subsequent description of the proposed rule

section II. Schedule’s Competitive Products List. change is substantially excerpted from the

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44224 Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Notices

officer or employee of a member further notes that Phlx believes that SECURITIES AND EXCHANGE
organization has exercised discretionary harmonizing Rule 1027 with its CBOE COMMISSION
authority, as the Exchange believes this counterpart will ‘‘further the goal of
[Release No. 34- 81635; File Nos. SR–DTC–
to be important information with harmonized examinations and 2017–013; SR–NSCC–2017–012; SR–FICC–
respect to a transaction. enforcement of similar rules, thus 2017–016]
Rule 1027(e) Discretion as to Time or reducing duplicative regulatory efforts’’
Price Excepted and thus lowering overall regulatory Self-Regulatory Organizations; The
costs imposed on member organizations Depository Trust Company; National
As discussed above the Exchange Securities Clearing Corporation; Fixed
proposes to amend Rule 1027(e), which and, by extension, the general public.13
The Commission notes that the proposal Income Clearing Corporation; Order
generally excludes price and time Approving Proposed Rule Changes To
discretion from the requirements of Rule received no comments from the public.
Taking into consideration the Adopt the Clearing Agency Risk
1027, to cover foreign currency options. Management Framework
The Exchange also proposes to correct Exchange’s views about the proposed
an internal cross reference to ‘‘this amendments, the Commission believes September 15, 2017.
paragraph (d)’’ which should read ‘‘this that the proposal will promote
paragraph (e).’’ regulatory efficiency through more I. Introduction
streamlined rule text that avoids On July 14, 2017, The Depository
III. Discussion and Commission
unnecessary redundancy, clarification Trust Company (‘‘DTC’’), National
Findings
of the meaning and scope of the rule, Securities Clearing Corporation
After careful review of the proposed and greater harmonization of regulatory (‘‘NSCC’’), and Fixed Income Clearing
rule change, the Commission finds that requirements across national securities Corporation (‘‘FICC,’’ each a ‘‘Clearing
the proposal is consistent with the exchanges, thereby reducing regulatory Agency,’’ and collectively the ‘‘Clearing
requirements of the Exchange Act and Agencies’’), filed with the Securities and
burdens, without undermining strong
the rules and regulations thereunder Exchange Commission (‘‘Commission’’)
regulatory protections for investors. The
that are applicable to a national proposed rule changes SR–DTC–2017–
securities exchange.9 Specifically, the Commission believes that the approach
proposed by the Exchange is 013, SR–NSCC–2017–012, and SR–
Commission finds that the proposed FICC–2017–016, respectively, pursuant
rule changes are consistent with Section appropriate and designed to protect
to Section 19(b)(1) of the Securities
6(b)(5) of the Exchange Act,10 which investors and the public interest,
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
requires, among other things, that the consistent with Section 6(b)(5) of the
19b–4 thereunder.2 The proposed rule
rules of a national securities exchange Exchange Act. For these reasons, the changes were published for comment in
be designed to prevent fraudulent and Commission finds that the proposed the Federal Register on August 2, 2017.3
manipulative acts and practices; to rule change is consistent with the The Commission did not receive any
promote just and equitable principles of Exchange Act and the rules and comment letters on the proposed rule
trade; to remove impediments to and regulations thereunder. changes. For the reasons discussed
perfect the mechanism of a free and below, the Commission approves the
open market and a national market IV. Conclusion
proposed rule changes.
system; and, in general, to protect It is therefore ordered pursuant to
investors and the public interest. II. Description of the Proposed Rule
Section 19(b)(2) 14 of the Exchange Act Changes
Section 6(b)(5) also requires that the that the proposal (SR–PHLX–2017–56),
rules of an exchange not be designed to The proposed rule changes are
be and hereby is approved.
permit unfair discrimination among proposals by the Clearing Agencies to
customers, issuers, brokers, or dealers. For the Commission, by the Division of adopt the Clearing Agency Risk
The proposal is designed to ‘‘remove Trading and Markets, pursuant to delegated Management Framework (‘‘Framework’’)
impediments to and perfect the authority.15 of the Clearing Agencies, as described
mechanism of a free and open market Eduardo A. Aleman, below.
and a national market system, by Assistant Secretary.
eliminating redundant rule text, A. Overview of the Framework
[FR Doc. 2017–20087 Filed 9–20–17; 8:45 am]
clarifying certain rule text, and The Framework would describe how
BILLING CODE 8011–01–P
conforming parts of the rule more each Clearing Agency (i)
closely to CBOE Rule 9.10, comprehensively manages legal, credit,
Discretionary Accounts.’’ 11 The liquidity, operational, general business,
Commission notes that Phlx believes investment, custody, and other risks
that harmonizing its rule regarding that arise in or are borne by it (‘‘Key
discretionary accounts with its CBOE Clearing Agency Risks’’); (ii) manages
counterpart will create ‘‘more efficient risks posed by its participants; 4 (iii)
regulatory compliance by members of
both exchanges due to reduction of 1 15 U.S.C. 78s(b)(1).
differences in wording and consequent 2 17 CFR 240.19b–4.
potential for inadvertent regulatory
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3 Securities Exchange Act Release No. 81248 (July

noncompliance.’’ 12 The Commission 28, 2017), 82 FR 36049 (August 2, 2017) (SR–DTC–
2017–013, SR–NSCC–2017–012, SR–FICC–2017–
016) (‘‘Notice’’).
9 In approving this rule change, the Commission
4 FICC and NSCC refer to their participants as
has considered the rule’s impact on efficiency, ‘‘Members,’’ while DTC refers to its participants as
competition, and capital formation. See 15 U.S.C. ‘‘Participants.’’ These terms are defined in the
78c(f). Clearing Agencies’ Rules. In this filing, as well as
10 15 U.S.C. 78f(b)(5). 13 See id.
in the Framework, ‘‘participant’’ or ‘‘participants’’
11 Notice, 82 FR at 36471. 14 15 U.S.C. 78s(b)(2). refers to both the Members of FICC and NSCC, and
12 Id. 15 17 CFR 200.30–3(a)(12). the Participants of DTC.

VerDate Sep<11>2014 17:52 Sep 20, 2017 Jkt 241001 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 E:\FR\FM\21SEN1.SGM 21SEN1
Document Created: 2018-10-24 14:35:25
Document Modified: 2018-10-24 14:35:25
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 44222