82 FR 61615 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 6.42, Minimum Increments for Bids and Offers, To Extend the Penny Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 248 (December 28, 2017)

Page Range		61615-61617
FR Document		2017-27995
Federal Register, Volume 82 Issue 248 (Thursday, December 28, 2017)
[Federal Register Volume 82, Number 248 (Thursday, December 28, 2017)]
[Notices]
[Pages 61615-61617]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27995]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82375; File No. SR-CBOE-2017-078]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 
6.42, Minimum Increments for Bids and Offers, To Extend the Penny Pilot 
Program

December 21, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on December 14, 2017, Cboe Exchange, Inc. (the ``Exchange'' or 
``Cboe Options'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 6.42 by extending the Penny 
Pilot Program through June 30, 2018.
    (additions are underlined; deletions are [bracketed])
* * * * *

Cboe Exchange, Inc.

Rules

* * * * *

Rule 6.42. Minimum Increments for Bids and Offers

    The Board of Directors may establish minimum increments for options 
traded on the Exchange. When the Board of Directors determines to 
change the minimum increments, the Exchange will designate such change 
as a stated policy, practice, or interpretation with respect to the 
administration of Rule 6.42 within the meaning of subparagraph (3)(A) 
of subsection 19(b) of the Exchange Act and will file a rule change for 
effectiveness upon filing with the Commission. Until such time as the 
Board of Directors makes a change to the minimum increments, the 
following minimum increments shall apply to options traded on the 
Exchange:
    (1) No change.
    (2) No change.
    (3) The decimal increments for bids and offers for all series of 
the option classes participating in the Penny Pilot Program are: $0.01 
for all option series quoted below $3 (including LEAPS), and $0.05 for 
all option series $3 and above (including LEAPS). For QQQQs, IWM, and 
SPY, the minimum increment is $0.01 for all option series. The Exchange 
may replace any option class participating in the Penny Pilot Program 
that has been delisted with the next most actively-traded, multiply-
listed option class, based on national average daily volume in the 
preceding six calendar months, that is not yet included in the Pilot 
Program. Any replacement class would be added on the second trading day 
following [July 1, 2017]January 1, 2018. The Penny Pilot shall expire 
on [December 31, 2017]June 30, 2018.
    (4) No change.
    . . . Interpretations and Policies:
    .01-.04 No change.
* * * * *
    The text of the proposed rule change is also available on the 
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, 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 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 Penny Pilot Program (the ``Pilot Program'') is scheduled to 
expire on December 31, 2017. The Exchange proposes to extend the Pilot 
Program until June 30, 2017. The Exchange believes that extending the 
Pilot Program will allow for further analysis of the Pilot Program and 
a determination of how the Pilot Program should be structured in the 
future.
    During this extension of the Pilot Program, the Exchange proposes 
that it may replace any option class that is currently included in the 
Pilot Program and that has been delisted with the next most actively 
traded, multiply listed option class that is not yet participating in 
the Pilot Program (``replacement class''). Any replacement class would 
be determined based on national average daily volume in the preceding 
six months,\5\ and would be added on the second trading day following 
January 1, 2018. The Exchange will employ the same parameters to 
prospective replacement classes as approved and applicable in 
determining the existing classes in the Pilot Program, including 
excluding high-priced underlying securities.\6\ The Exchange will 
announce to its Trading Permit Holders by circular any replacement 
classes in the Pilot Program.
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    \5\ The month immediately preceding a replacement class's 
addition to the Pilot Program (i.e., December) would not be used for 
purposes of the six-month analysis. Thus, a replacement class to be 
added on the second trading day following January 1, 2018, would be 
identified based on The Option Clearing Corporation's trading volume 
data from June 1, 2017 through November 30, 2017.
    \6\ See Securities Exchange Act Release No. 60864 (October 22, 
2009), 74 FR 55876 (October 29, 2009) (SR-CBOE-2009-76).
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    The Exchange is specifically authorized to act jointly with the 
other options exchanges participating in the Pilot Program in 
identifying any replacement class.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\7\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \8\ requirements that the rules of

[[Page 61616]]

an exchange be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitation 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. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \9\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers. In particular, the proposed 
rule change allows for an extension of the Pilot Program for the 
benefit of market participants.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ Id.
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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 that is not necessary or appropriate 
in furtherance of the purposes of the Act.
    Specifically, the Exchange believes that, by extending the 
expiration of the Pilot Program, the proposed rule change will allow 
for further analysis of the Pilot Program and a determination of how 
the Program should be structured in the future. In doing so, the 
proposed rule change will also serve to promote regulatory clarity and 
consistency, thereby reducing burdens on the marketplace and 
facilitating investor protection. In addition, the Exchange has been 
authorized to act jointly in extending the Pilot Program and believes 
the other exchanges will be filing similar extensions.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 
Because the 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 prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6)(iii) thereunder.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 15 U.S.C. 78s(b)(3)(A).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative prior to 30 days after the date of the filing.\13\ 
However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest because doing so will 
allow the Pilot Program to continue without interruption in a manner 
that is consistent with the Commission's prior approval of the 
extension and expansion of the Pilot Program and will allow the 
Exchange and the Commission additional time to analyze the impact of 
the Pilot Program.\15\ Accordingly, the Commission designates the 
proposed rule change as operative upon filing with the Commission.\16\
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    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change along with a 
brief description and the text of 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 pre-filing requirement.
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ See Securities Exchange Act Release No. 61061 (November 24, 
2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44). See 
also supra note 5.
    \16\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 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) \17\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \17\ 15 U.S.C. 78s(b)(2)(B).
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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-CBOE-2017-078 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-CBOE-2017-078. 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 website (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 website 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. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-CBOE-2017-078 and

[[Page 61617]]

should be submitted on or before January 18, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-27995 Filed 12-27-17; 8:45 am]
 BILLING CODE 8011-01-P
61616 Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Notices

an exchange be designed to prevent investors or the public interest; (ii) under Section 19(b)(2)(B) 17 of the Act to
fraudulent and manipulative acts and impose any significant burden on determine whether the proposed rule
practices, to promote just and equitable competition; and (iii) become operative change should be approved or
principles of trade, to foster cooperation prior to 30 days from the date on which disapproved.
and coordination with persons engaged it was filed, or such shorter time as the
IV. Solicitation of Comments
in regulating, clearing, settling, Commission may designate if consistent
processing information with respect to, with the protection of investors and the Interested persons are invited to
and facilitation transactions in public interest, the proposed rule submit written data, views, and
securities, to remove impediments to change has become effective pursuant to arguments concerning the foregoing,
and perfect the mechanism of a free and Section 19(b)(3)(A) of the Act 12 and including whether the proposed rule
open market and a national market Rule 19b–4(f)(6)(iii) thereunder. change is consistent with the Act.
system, and, in general, to protect A proposed rule change filed under Comments may be submitted by any of
investors and the public interest. Rule 19b–4(f)(6) normally does not the following methods:
Additionally, the Exchange believes the become operative prior to 30 days after Electronic Comments
proposed rule change is consistent with the date of the filing.13 However,
the Section 6(b)(5) 9 requirement that pursuant to Rule 19b–4(f)(6)(iii),14 the • Use the Commission’s internet
the rules of an exchange not be designed Commission may designate a shorter comment form (http://www.sec.gov/
to permit unfair discrimination between time if such action is consistent with the rules/sro.shtml); or
customers, issuers, brokers, or dealers. protection of investors and the public • Send an email to rule-comments@
In particular, the proposed rule change interest. The Exchange has asked the sec.gov. Please include File Number SR–
allows for an extension of the Pilot Commission to waive the 30-day CBOE–2017–078 on the subject line.
Program for the benefit of market operative delay so that the proposal may Paper Comments
participants. become operative immediately upon
filing. The Commission believes that • Send paper comments in triplicate
B. Self-Regulatory Organization’s to Secretary, Securities and Exchange
Statement on Burden on Competition waiving the 30-day operative delay is
consistent with the protection of Commission, 100 F Street NE,
The Exchange does not believe that investors and the public interest Washington, DC 20549–1090.
the proposed rule change will impose because doing so will allow the Pilot All submissions should refer to File
any burden on competition that is not Program to continue without Number SR–CBOE–2017–078. This file
necessary or appropriate in furtherance interruption in a manner that is number should be included on the
of the purposes of the Act. consistent with the Commission’s prior subject line if email is used. To help the
Specifically, the Exchange believes Commission process and review your
approval of the extension and expansion
that, by extending the expiration of the comments more efficiently, please use
of the Pilot Program and will allow the
Pilot Program, the proposed rule change only one method. The Commission will
Exchange and the Commission
will allow for further analysis of the post all comments on the Commission’s
additional time to analyze the impact of
Pilot Program and a determination of internet website (http://www.sec.gov/
the Pilot Program.15 Accordingly, the
how the Program should be structured rules/sro.shtml). Copies of the
Commission designates the proposed
in the future. In doing so, the proposed submission, all subsequent
rule change as operative upon filing
rule change will also serve to promote amendments, all written statements
with the Commission.16
regulatory clarity and consistency, with respect to the proposed rule
thereby reducing burdens on the At any time within 60 days of the
filing of the proposed rule change, the change that are filed with the
marketplace and facilitating investor Commission, and all written
protection. In addition, the Exchange Commission summarily may
temporarily suspend such rule change if communications relating to the
has been authorized to act jointly in proposed rule change between the
extending the Pilot Program and it appears to the Commission that such
action is necessary or appropriate in the Commission and any person, other than
believes the other exchanges will be those that may be withheld from the
filing similar extensions. public interest, for the protection of
investors, or otherwise in furtherance of public in accordance with the
C. Self-Regulatory Organization’s the purposes of the Act. If the provisions of 5 U.S.C. 552, will be
Statement on Comments on the Commission takes such action, the available for website viewing and
Proposed Rule Change Received From Commission shall institute proceedings printing in the Commission’s Public
Members, Participants or Others Reference Room, 100 F Street NE,
Washington, DC 20549, on official
The Exchange neither solicited nor 12 15 U.S.C. 78s(b)(3)(A).
business days between the hours of
received comments on the proposed 13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the 10:00 a.m. and 3:00 p.m. Copies of the
rule change.
Commission written notice of the Exchange’s intent filing also will be available for
III. Date of Effectiveness of the to file the proposed rule change along with a brief inspection and copying at the principal
description and the text of the proposed rule
Proposed Rule Change and Timing for change, at least five business days prior to the date
office of the Exchange. All comments
Commission Action of filing of the proposed rule change, or such received will be posted without change.
The Exchange has filed the proposed shorter time as designated by the Commission. The Persons submitting comments are
Exchange has satisfied this pre-filing requirement. cautioned that we do not redact or edit
rule change pursuant to Section 14 17 CFR 240.19b–4(f)(6)(iii).
personal identifying information from
sradovich on DSK3GMQ082PROD with NOTICES

19(b)(3)(A)(iii) of the Act 10 and Rule 15 See Securities Exchange Act Release No. 61061

19b–4(f)(6) thereunder.11 Because the (November 24, 2009), 74 FR 62857 (December 1,
comment submissions. You should
proposed rule change does not: (i) 2009) (SR–NYSEArca–2009–44). See also supra submit only information that you wish
Significantly affect the protection of note 5. to make available publicly. All
16 For purposes only of waiving the operative
submissions should refer to File
delay for this proposal, the Commission has Number SR–CBOE–2017–078 and
9 Id.
considered the proposed rule’s impact on
10 15 U.S.C. 78s(b)(3)(A)(iii). efficiency, competition, and capital formation. See
11 17 CFR 240.19b–4(f)(6). 15 U.S.C. 78c(f). 17 15 U.S.C. 78s(b)(2)(B).

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Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Notices 61617

should be submitted on or before rule changes, as amended in each II. Description of the Proposed Rule
January 18, 2018. instance by Amendment No. 1.4 Changes as Previously Modified by
For the Commission, by the Division of On July 20, 2017, the Clearing Amendment Nos. 1 and 3, and Notice
Trading and Markets, pursuant to delegated Agencies each filed Amendment No. 2 of Filing Amendment No. 6
authority.18 to their respective proposed rule A. Proposed Rule Changes as Previously
Eduardo A. Aleman, changes, as previously modified by Modified by Amendment Nos. 1 and 3
Assistant Secretary. Amendment No. 1. On July 21, 2017, the The Clearing Agencies propose to
[FR Doc. 2017–27995 Filed 12–27–17; 8:45 am] Clearing Agencies each filed adopt the Clearing Agency Liquidity
BILLING CODE 8011–01–P Amendment No. 3 to their respective Risk Management Framework
proposed rule changes to supersede and (‘‘Framework’’) of the Clearing
replace Amendment No. 2 in its Agencies. The Framework would
SECURITIES AND EXCHANGE entirety, due to a technical defect of outline the regulatory requirements that
COMMISSION Amendment No. 2. The proposed rule would be applicable to each Clearing
changes, as modified in each instance Agency with respect to liquidity risk
[Release No. 34–82377; File Nos. SR–DTC– by Amendment No. 3, were published management, and would be owned and
2017–004; SR–NSCC–2017–005; SR–FICC– managed by the Liquidity Product Risk
for comment in the Federal Register on
2017–008] Unit (‘‘LPRU’’) of DTCC.8
July 28, 2017, and the Commission
instituted proceedings under Section The Framework would, generally, set
Self-Regulatory Organizations; The forth the Clearing Agencies’ liquidity
Depository Trust Company; National 19(b)(2)(B) of the Act 5 to determine
resources and liquidity risk
Securities Clearing Corporation; Fixed whether to approve or disapprove the
management practices, to include
Income Clearing Corporation; Notice of proposed rule changes.6 On October 16,
measurement and monitoring of their
Filing of Amendment No. 4, Notice of 2017, the Commission designated a respective liquidity risks.9 More
Filing Amendment No. 5, Notice of longer period on the proceedings to specifically, the Framework would
Filing Amendment No. 6, and Order determine whether to approve or describe FICC and NSCC’s liquidity risk
Granting Accelerated Approval of disapprove the proposed rule changes, management strategy and objectives,
Proposed Rule Changes, as Modified as modified by Amendment Nos. 1 and which are to maintain sufficient liquid
by Amendment Nos. 1, 3 and 6, To 3.7 The Commission did not receive any resources to meet the potential amount
Adopt the Clearing Agency Liquidity comment letters on the proposed rule of funding required to settle outstanding
Risk Management Framework changes, as modified by Amendment transactions of a defaulting Member, or
December 21, 2017. Nos. 1 and 3. affiliated family (‘‘Affiliated Family’’) of
On December 15, 2017, the Clearing Members, in a timely manner.10 For
I. Introduction DTC, the Framework would describe
Agencies each filed Amendment No. 4
On April 6, 2017, The Depository to their respective proposed rule how DTC’s liquidity management
Trust Company (‘‘DTC’’), National strategy and controls are designed to
changes, as discussed below. On the
Securities Clearing Corporation maintain sufficient available liquid
same day, the Clearing Agencies each
(‘‘NSCC’’), and Fixed Income Clearing resources to complete system-wide
filed Amendment No. 5 to their settlement on each business day with a
Corporation (‘‘FICC,’’ each a ‘‘Clearing respective proposed rule changes to high degree of confidence,
Agency,’’ and collectively, the ‘‘Clearing supersede and replace Amendment No. notwithstanding the failure to settle of
Agencies’’), filed with the Securities and 4 in its entirety, due to technical errors a Participant or Affiliated Family of
Exchange Commission (‘‘Commission’’) of Amendment No. 4. On December 18, Participants.11 The Framework would
proposed rule changes SR–DTC–2017– 2017, Clearing Agencies each filed also state that DTC operates on a fully
004, SR–NSCC–2017–005, and SR– Amendment No. 6 to their respective collateralized basis.12
FICC–2017–008, respectively, pursuant proposed rule changes to supersede and Although the Clearing Agencies
to Section 19(b)(1) of the Securities replace Amendment No. 5 in its would consider the Framework to be a
Exchange Act of 1934 (‘‘Act’’) 1 and Rule rule of each Clearing Agency, the
entirety. The Commission is publishing
19b–4 thereunder.2 proposed changes do not require any
this notice to solicit comments on
On April 13, 2017, the Clearing Amendment No. 6 from interested changes to the Rules, By-laws and
Agencies each filed Amendment No. 1 persons and is approving on an Organization Certificate of DTC (‘‘DTC
to their respective proposed rule Rules’’), the FICC Government
accelerated basis the proposed rule
changes. Amendment No. 1 made Securities Division (‘‘GSD’’) Rulebook
changes, as modified by Amendment
technical corrections to each Exhibit 5 (‘‘GSD Rules’’), the FICC Mortgage-
of the proposed rule change filings. The Nos. 1, 3, and 6 (hereinafter, ‘‘Amended
proposed rule changes, as modified in Proposed Rule Changes’’). 8 The parent company of the Clearing Agencies is

each instance by Amendment No. 1, The Depository Trust & Clearing Corporation
were published for comment in the (‘‘DTCC’’). DTCC operates on a shared services
4 Securities Exchange Act Release No. 80877
model with respect to the Clearing Agencies. Most
Federal Register on April 25, 2017.3 On (June 7, 2017), 82 FR 27094 (June 13, 2017) (SR– corporate functions are established and managed on
June 7, 2017, the Commission DTC–2017–004, SR–NSCC–2017–005, SR–FICC– an enterprise-wide basis pursuant to intercompany
designated a longer period for 2017–008). agreements under which it is generally DTCC that
provides a relevant service to a Clearing Agency.
Commission Action on the proposed 5 15 U.S.C. 78s(b)(2)(B).
sradovich on DSK3GMQ082PROD with NOTICES

6 Securities Exchange Act Release No. 81194 (July
Notice, 82 FR at 19121.
9 Id.
18 17 CFR 200.30–3(a)(12). 24, 2017), 82 FR 35241 (July 28, 2017) (SR–DTC– 10 FICC and NSCC refer to their participants as
1 15 U.S.C. 78s(b)(1). 2017–004, SR–NSCC–2017–005, SR–FICC–2017– ‘‘Members,’’ while DTC refers to its participants as
2 17 CFR 240.19b–4. 008) (‘‘Order Instituting Proceedings’’). ‘‘Participants.’’ These terms are defined in the
7 Securities Exchange Act Release No. 81885 respective rules of each of the Clearing Agencies.
3 Securities Exchange Act Release No. 80489

(April 19, 2017), 82 FR 19120 (April 25, 2017) (SR– (October 20, 2017), 82 FR 48857 (October 20, 2017) Notice, 82 FR at 19121.
(SR–DTC–2017–004, SR–NSCC–2017–005, SR– 11 Id.
DTC–2017–004, SR–NSCC–2017–005, SR–FICC–
2017–008) (‘‘Notice’’). FICC–2017–008). 12 Id.

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Document Created: 2017-12-28 00:43:58
Document Modified: 2017-12-28 00:43:58
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 61615