82 FR 8249 - Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 11.26 Regarding the Data Collection Requirements of the Regulation NMS Plan To Implement a Tick Size Pilot Program January 17, 2017

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 14 (January 24, 2017)

Page Range		8249-8252
FR Document		2017-01461
Federal Register, Volume 82 Issue 14 (Tuesday, January 24, 2017)
[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)]
[Notices]
[Pages 8249-8252]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01461]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79806; File No. SR-NSX-2017-01]


Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Amend Exchange Rule 11.26 Regarding the Data Collection Requirements 
of the Regulation NMS Plan To Implement a Tick Size Pilot Program 
January 17, 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 January 6, 2017, National Stock Exchange, Inc. (``NSX'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') a proposed rule change, as described in 
Items I, and II below, which Items have been substantially 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) \4\ thereunder, 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend NSX Rule 11.26(b) and Rule 11.26, 
Interpretations and Policies .08 to modify certain data collection 
requirements of the Regulation NMS Plan to Implement a Tick Size Pilot 
Program (the ``Plan''). The proposed rule change is the same as 
proposed rule changes recently approved or published by the Commission 
for Bats BZX Exchange f/k/a BATS Exchange, Inc. (``BZX'') to amend BZX 
Rule 11.27 which also sets forth amendments to the requirements for the 
Web site data publication requirements pursuant to Appendices B and C 
of the Plan.\5\
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    \5\ See Securities Exchange Act Release No. 79533 (December 13, 
2016), 81 FR 91990 (December 19, 2016) (SR-BatsBZX-2016-82).
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    The text of the proposed rule change is available on the Exchange's 
Web site at www.nsx.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 the 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and statutory 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 parts of 
such statements.

A. Self -Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On August 25, 2014, NYSE Group, Inc., on behalf of BZX, Bats BYX 
Exchange, Inc., f/k/a BATS-Y Exchange,

[[Page 8250]]

Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc., Chicago Stock 
Exchange, Inc., Financial Industry Regulatory Authority, Inc. 
(``FINRA''), NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, the Nasdaq Stock 
Market LLC, New York Stock Exchange LLC (``NYSE''), NYSE MKT LLC, and 
NYSE Arca, Inc. (collectively ``Participants''), filed with the 
Commission, pursuant to Section 11A of the Act \6\ and Rule 608 of 
Regulation NMS thereunder,\7\ the Plan to Implement a Tick Size Pilot 
Program (``Pilot'').\8\ The Participants filed the Plan to comply with 
an order issued by the Commission on June 24, 2014.\9\ The Plan \10\ 
was published for comment in the Federal Register on November 7, 2014 
and was thereafter approved by the Commission, as modified, on May 6, 
2015.\11\ On November 6, 2015, the Commission granted the Participants 
an exemption from implementing the Plan until October 3, 2016.\12\ On 
March 3, 2016, the Commission published an amendment to the Plan adding 
NSX as a Participant.\13\ On September 13, 2016, the Commission 
exempted the Plan Participants from the requirement to fully implement 
the Pilot on October 3, 2016, to permit the Plan Participants to 
implement the pilot on a phased-in basis, as described in the Plan 
Participants' exemptive request.\14\
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    \6\ 15 U.S.C. 78k-1.
    \7\ 17 CFR 242.608.
    \8\ See Letter from Brendon J. Weiss, Vice President, 
Intercontinental Exchange, Inc., to Secretary, Commission, dated 
August 25, 2014.
    \9\ See Securities Exchange Act Release No. 72460 (June 24, 
2014), 79 FR 36840 (June 30, 2014).
    \10\ Unless otherwise specified, capitalized terms used in this 
rule filing are based on the defined terms of the Plan.
    \11\ See Securities Exchange Act Release No. 74892 (May 6, 
2015), 80 FR 27513 (May 13, 2015) (File No. 4-657) (``Approval 
Order'').
    \12\ See Securities Exchange Act Release No. 76382 (November 6, 
2015), 80 FR 70284 (November 13, 2015) (File No. 4-657) (Order 
Granting Exemption From Compliance With the National Market System 
Plan To Implement a Tick Size Pilot Program).
    \13\ See Securities Exchange Act Release No. 77277 (March 3, 
2016), 81 FR 12162 (March 8, 2016).
    \14\ See Letter from David S. Shillman, Associate Director, 
Division of Trading and Markets, Commission, to Eric Swanson, EVP, 
General Counsel and Secretary, Bats Global Markets, Inc., dated 
September 13, 2016; see also Letter from Eric Swanson, EVP, General 
Counsel and Secretary, Bats Global Markets, Inc., to Brent J. 
Fields, Secretary, Commission, dated September 9, 2016.
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    The Plan is designed to allow the Commission, market participants, 
and the public to study and assess the impact of increment conventions 
on the liquidity and trading of the common stocks of small-
capitalization companies. Each Participant is required to comply, and 
to enforce compliance by its member organizations, as applicable, with 
the provisions of the Plan.
    The Exchange adopted rule amendments to implement the requirements 
of the Plan, including relating to the Plan's data collection 
requirements and requirements relating to Web site data 
publication.\15\ Specifically, with respect to the Web site data 
publication requirements pursuant to Section VII and Appendices B and C 
to the Plan, Exchange Rule 11.26(b)(2)(B) provides, among other things, 
that the Exchange shall make the data required by Items I and II of 
Appendix B to the Plan, and collected pursuant to paragraph (b)(2) of 
Rule 11.26, publicly available on the Exchange's Web site on a monthly 
basis at no charge and shall not identify the Trading Center that 
generated the data. Exchange Rule 11.26(b)(3)(C), provides, among other 
things, that the Exchange shall make the data required by Item IV of 
Appendix B to the Plan, and collected pursuant to paragraph (b)(3)(A) 
of Rule 11.26, publicly available on the Exchange Web site on a monthly 
basis at no charge and shall not identify the Trading Center [sic] that 
generated the data. Exchange Rule 11.26(b)(5) provides, among other 
things, that the Exchange shall collect and transmit to the Commission 
data described in Item III of Appendix B of the Plan relating to daily 
Market Maker registration statistics, but does not currently include a 
provision requiring the Exchange to publish such data to its Web site. 
Rule 11.26, Interpretation and Policy .08 provides, among other things, 
that the requirement that the Exchange or the Designated Examining 
Authority (``DEA'') make certain data publicly available on the 
Exchange's or the DEA's Web site pursuant to Appendix B and C to the 
Plan shall commence at the beginning of the Pilot Period.
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    \15\ See Securities Exchange Act Release No. 77483 (March 31, 
2016), 81 FR 20040 (April 6, 2016) (File No. SR-NSX-2016-01); see 
also Securities Exchange Act Release No. 78960 (September 28, 2016), 
81 FR 68476 (October 4, 2016) (File No. SR-NSX-2016-12).
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    The Exchange is proposing amendments to Rule 11.26(b)(2)(B) 
(regarding Appendix B.I and B.II data) and Rule 11.26(b)(3)(C) 
(regarding Appendix B.IV data) to provide that data required to be made 
available on the Exchange's Web site be published within 120 calendar 
days following month end. The Exchange also proposes to add a provision 
to Rule 11.26(b)(5) to state that the Exchange shall make data 
collected under Appendix B.III publicly available on the Exchange's Web 
site within 120 calendar days following month end at no charge.\16\ In 
addition, the proposed amendments to Rule 11.26, Interpretations and 
Policies .08 would provide that, notwithstanding the provisions of 
paragraphs (b)(2)(B), (b)(3)(C), and (b)(5), the Exchange or the DEA 
shall make data for the Pre-Pilot period publicly available on the 
Exchange's or the DEA's Web site pursuant to Appendix B and C to the 
Plan by February 28, 2017.\17\ The purpose of delaying the publication 
of the Web site data is to address confidentiality concerns by 
providing for the passage of additional time between the market 
information reflected in the data and the public availability of such 
information.\18\
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    \16\ The Exchange notes that it does not currently have any 
Market Makers and, therefore, does not currently collect Market 
Maker registration statistics.
    \17\ With respect to data for the Pilot Period, the requirement 
that the Exchange or the DEA make data publicly available on the 
Exchange's or the DEA's Web site pursuant to Appendix B and C to the 
Plan shall continue to commence at the beginning of the Pilot 
Period. Thus, the first Web site publication date for Pilot Period 
data (covering October 2016) would be published on the Exchange's or 
the DEA's Web site by February 28, 2017, which is 120 days following 
the end of October 2016.
    \18\ On November 30, 2016, the Commission granted each 
Participant a limited exemption from the requirement to publish 
certain Pilot data on a monthly basis. For each Participants that is 
the DEA of a Market Maker, the Commission granted a limited 
exemption to allow FINRA to aggregate and publish certain data on 
the FINRA Web site, rather than each Participant that is a DEA of a 
Market Maker publishing such data on its respective Web site. The 
exemptions were granted to the Participants so long as each 
Participant submits proposed rule changes to reflect the exemptions. 
See Letter dated November 30, 2016 from David S. Shillman, Associate 
Directors, Division of Trading and Markets to Ms. Marcia E. Asquith, 
Senior Vice President and Corporate Secretary, FINRA.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \19\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \20\ in particular, in that it is 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 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.
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    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that this proposal is consistent with the Act 
because it is designed to assist the Participants in meeting their 
regulatory obligations pursuant to the Plan and is

[[Page 8251]]

in furtherance of the objectives of the Plan, as identified by the SEC. 
The Exchange further believes that the instant proposal is consistent 
with the Act in that it is designed to address confidentiality concerns 
by permitting the Exchange to delay Web site publication to provide for 
passage of additional time between the market information reflected in 
the data and the public availability of such information.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
notes that the proposed rule change implements the provisions of the 
Plan, and is designed to assist the Participants in meeting their 
regulatory obligations pursuant to the Plan.
    The proposal is intended to address confidentiality concerns that 
may adversely impact competition by permitting the Exchange to delay 
Web site publication to provide for passage of additional time between 
the market information reflected in the data and the public 
availability of such information. The proposal also does not alter the 
information required to be submitted to the Commission.

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

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

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) \21\ of the Exchange Act and 
Rule 19b-4(f)(6) thereunder.\22\
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    \21\ 15 U.S.C. 78(s)(b)(3)(A).
    \22\ 17 CFR 240.19b-4(f)(6). See Securities Exchange Act Release 
No. 58092 (July 3, 2008), 73 FR 40144 (July 11, 2008) (``Commission 
Guidance and Amendment to the Rule Relating to Organization and 
Program Management Concerning Proposed Rule Changes by Self-
Regulatory Organizations'') (the ``Streamlining Release''). As set 
forth in the Streamlining Release, Rule 19b-4(f)(6) permits a 
proposed rule change to become immediately effective to the extent 
such proposal is a proposed rule change to implement provisions of 
an approved national market system plan or a Commission rule. Id. at 
40148.
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    A proposed rule change filed under paragraph (f)(6) of Rule 19b-4 
\23\ normally does not become operative prior to 30 days after the date 
of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\24\ the 
Commission may designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
filed the proposed rule change for immediate effectiveness and has 
requested that the Commission waive the requirement that the proposed 
rule change not become operative for 30 days after the date of the 
filing so that it may become operative immediately.
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    \23\ 17 CFR 240.19b-4(f)(6)(iii).
    \24\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange notes that the proposed rule change implements the 
provisions of the Plan, and is designed to assist the Participants in 
meeting their regulatory obligations pursuant to the Plan. The proposal 
is intended to address confidentiality concerns by permitting the 
Exchange to delay Web site publication to provide for passage of 
additional time between the market information reflected in the data 
and the public availability of such information. The proposal does not 
alter the information required to be submitted to the SEC.
    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it will allow the Exchange to implement proposed changes that 
are intended to address confidentiality concerns. Therefore, the 
Commission hereby waives the 30-day operative delay and designates the 
proposed rule change to be operative as of 6 January, 2017.\25\
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    \25\ For purposes of only waiving the operative delay for this 
rule 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, 
otherwise in furtherance of the purposes of the Act.\26\ If the 
Commission takes such action, the Commission shall institute 
proceedings to determine whether the proposed rule should be approved 
or disapproved.
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    \26\ 15 U.S.C. 78s(b)(3)(C).
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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-NSX-2017-01 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 No. SR-NSX-2017-01. This file 
number should be included in the subject line if email is used. To help 
the Commission process and review 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 a.m. and 3 
p.m. Copies of the filing will also 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-NSX-2017-01 
and should be submitted on or before February 14, 2017.


[[Page 8252]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-01461 Filed 1-23-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Notices 8251

in furtherance of the objectives of the A proposed rule change filed under IV. Solicitation of Comments
Plan, as identified by the SEC. The paragraph (f)(6) of Rule 19b–4 23
Exchange further believes that the normally does not become operative Interested persons are invited to
instant proposal is consistent with the prior to 30 days after the date of the submit written data, views, and
Act in that it is designed to address filing. However, pursuant to Rule 19b– arguments concerning the foregoing,
confidentiality concerns by permitting 4(f)(6)(iii),24 the Commission may including whether the proposed rule
the Exchange to delay Web site designate a shorter time if such action change is consistent with the Act.
publication to provide for passage of is consistent with the protection of Comments may be submitted by any of
additional time between the market investors and the public interest. The the following methods:
information reflected in the data and the Exchange filed the proposed rule change Electronic Comments
public availability of such information. for immediate effectiveness and has
B. Self-Regulatory Organization’s requested that the Commission waive • Use the Commission’s Internet
Statement on Burden on Competition the requirement that the proposed rule comment form (http://www.sec.gov/
change not become operative for 30 days rules/sro.shtml); or
The Exchange does not believe that
the proposed rule change will result in after the date of the filing so that it may • Send an email to rule-comments@
any burden on competition that is not become operative immediately. sec.gov. Please include File Number SR–
necessary or appropriate in furtherance The Exchange notes that the proposed NSX–2017–01 on the subject line.
of the purposes of the Act. The rule change implements the provisions
Paper Comments
Exchange notes that the proposed rule of the Plan, and is designed to assist the
change implements the provisions of the Participants in meeting their regulatory • Send paper comments in triplicate
Plan, and is designed to assist the obligations pursuant to the Plan. The to Brent J. Fields, Secretary, Securities
Participants in meeting their regulatory proposal is intended to address and Exchange Commission, 100 F Street
obligations pursuant to the Plan. confidentiality concerns by permitting NE., Washington, DC 20549–1090.
The proposal is intended to address the Exchange to delay Web site
confidentiality concerns that may publication to provide for passage of All submissions should refer to File No.
adversely impact competition by additional time between the market SR–NSX–2017–01. This file number
permitting the Exchange to delay Web information reflected in the data and the should be included in the subject line
site publication to provide for passage of public availability of such information. if email is used. To help the
additional time between the market The proposal does not alter the Commission process and review
information reflected in the data and the information required to be submitted to comments more efficiently, please use
public availability of such information. only one method. The Commission will
the SEC.
The proposal also does not alter the post all comments on the Commission’s
information required to be submitted to The Commission believes that
Internet Web site (http://www.sec.gov/
the Commission. waiving the 30-day operative delay is
rules/sro.shtml). Copies of the
consistent with the protection of
C. Self-Regulatory Organization’s submission, all subsequent
investors and the public interest
Statement on Comments on the amendments, all written statements
because it will allow the Exchange to
Proposed Rule Change Received From with respect to the proposed rule
implement proposed changes that are
ETP Holders, Participants or Others change that are filed with the
intended to address confidentiality
The Exchange has neither solicited Commission, and all written
concerns. Therefore, the Commission
nor received comments on the proposed communications relating to the
hereby waives the 30-day operative
rule change. delay and designates the proposed rule proposed rule change between the
change to be operative as of 6 January, Commission and any person, other than
III. Date of Effectiveness of the those that may be withheld from the
Proposed Rule Change and Timing for 2017.25
public in accordance with the
Commission Action At any time within 60 days of the provisions of 5 U.S.C. 552, will be
Because the foregoing proposed rule filing of the proposed rule change, the available for Web site viewing and
change does not: (i) Significantly affect Commission summarily may printing in the Commission’s Public
the protection of investors or the public temporarily suspend such rule change if Reference Room, 100 F Street NE.,
interest; (ii) impose any significant it appears to the Commission that such Washington, DC 20549, on official
burden on competition; and (iii) become action is: necessary or appropriate in the business days between the hours of 10
operative for 30 days from the date on public interest, for the protection of a.m. and 3 p.m. Copies of the filing will
which it was filed, or such shorter time investors, otherwise in furtherance of also be available for inspection and
as the Commission may designate, it has the purposes of the Act.26 If the copying at the principal office of the
become effective pursuant to Section Commission takes such action, the Exchange. All comments received will
19(b)(3)(A) 21 of the Exchange Act and Commission shall institute proceedings be posted without change; the
Rule 19b–4(f)(6) thereunder.22 to determine whether the proposed rule
Commission does not edit personal
should be approved or disapproved.
21 15 U.S.C. 78(s)(b)(3)(A). identifying information from
22 17 CFR 240.19b–4(f)(6). See Securities submissions.
an approved national market system plan or a
Exchange Act Release No. 58092 (July 3, 2008), 73
sradovich on DSK3GMQ082PROD with NOTICES

Commission rule. Id. at 40148. You should submit only information
FR 40144 (July 11, 2008) (‘‘Commission Guidance
and Amendment to the Rule Relating to
23 17 CFR 240.19b–4(f)(6)(iii).
that you wish to make available
24 17 CFR 240.19b–4(f)(6)(iii).
Organization and Program Management Concerning publicly. All submissions should refer
25 For purposes of only waiving the operative
Proposed Rule Changes by Self-Regulatory to file number SR–NSX–2017–01 and
Organizations’’) (the ‘‘Streamlining Release’’). As delay for this rule proposal, the Commission has
set forth in the Streamlining Release, Rule 19b– considered the proposed rule’s impact on should be submitted on or before
4(f)(6) permits a proposed rule change to become efficiency, competition, and capital formation. See February 14, 2017.
immediately effective to the extent such proposal is 15 U.S.C. 78c(f).
a proposed rule change to implement provisions of 26 15 U.S.C. 78s(b)(3)(C).

VerDate Sep<11>2014 19:36 Jan 23, 2017 Jkt 241001 PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 E:\FR\FM\24JAN1.SGM 24JAN1
8252 Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Notices

For the Commission, by the Division of A. Self-Regulatory Organization’s TPH customer A, non-TPH customer B
Trading and Markets, pursuant to delegated Statement of the Purpose of, and and non-TPH customer C, PULSe broker
authority.27 Statutory Basis for, the Proposed Rule A (the sending TPH) will be charged a
Eduardo A. Aleman, Change fee of $1500 per month for drop copies
Assistant Secretary. it sends via PULSe to non-TPH
1. Purpose
[FR Doc. 2017–01461 Filed 1–23–17; 8:45 am] customers A, B and C (the receiving
BILLING CODE 8011–01–P
The Exchange proposes to amend its non-TPHs).
Fees Schedule. The Exchange is adding
fees for functionality related to its Non-PULSe-to-PULSe Routing
SECURITIES AND EXCHANGE PULSe workstation. The fees herein will Upon request, the Exchange provides
COMMISSION be effective on January 3, 2017. customers, both TPH and non-TPH, of
By way of background, the PULSe PULSe brokers with the ability to
[Release No. 34–79808; File No. SR–CBOE– workstation is a front-end order entry
2017–004] transmit orders electronically to PULSe
system designed for use with respect to brokers’ PULSe workstations using
Self-Regulatory Organizations; orders that may be sent to the trading order management systems other than
Chicago Board Options Exchange, systems of the Exchange. Exchange PULSe (i.e., non-PULSe-to-PULSe).3
Incorporated; Notice of Filing and Trading Permit Holders (‘‘TPHs’’) may These customers utilize the existing
Immediate Effectiveness of a Proposed also make workstations available to infrastructure of such systems to send
Rule Change To Amend the Fees their customers, which may include orders to their PULSe brokers
Schedule TPHs, non-broker dealer public electronically.
customers and non-TPH broker dealers. The Exchange is proposing a monthly
January 17, 2017. fee payable by TPH customers who
Drop Copies
Pursuant to Section 19(b)(1) of the request non-PULSe-to-PULSe
Securities Exchange Act of 1934 (the Financial Information eXchange
functionality. This fee will allow for the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 (‘‘FIX’’) language-based connectivity,
recoupment of costs of maintaining and
notice is hereby given that on January 3, upon request, provides customers (both
supporting non-PULSe-to-PULSe
2017, Chicago Board Options Exchange, TPH and non-TPH) of TPHs that are
routing functionality. A TPH customer
Incorporated (the ‘‘Exchange’’ or brokers and PULSe users (‘‘PULSe
sending orders electronically to PULSe
‘‘CBOE’’) filed with the Securities and brokers’’) with the ability to receive
brokers through these non-PULSe
Exchange Commission (the ‘‘drop-copy’’ order fill messages from
systems will be charged a fee of $500 a
‘‘Commission’’) the proposed rule their PULSe brokers. These fill messages
month per PULSe broker to which the
change as described in Items I, II, and allow customers to update positions,
customer sends orders. For example, if
III below, which Items have been risk calculations and streamline back-
TPH customer A transmits orders
prepared by the Exchange. The office functions.
electronically through a non-PULSe
Commission is publishing this notice to The Exchange is proposing a monthly
order management terminal to PULSe
solicit comments on the proposed rule fee to be assessed on TPHs who are
workstations of each of PULSe broker A,
change from interested persons. either receiving or sending drop copies
PULSe broker B, and PULSe broker C,
via a PULSe workstation. This fee will
I. Self-Regulatory Organization’s TPH customer A (the sending TPH) will
allow for the recoupment of costs of
Statement of the Terms of Substance of be charged a fee of $1500 per month for
maintaining and supporting drop copy
the Proposed Rule Change the ability to send orders electronically
functionality. Whether the drop copy
to the PULSe workstations of PULSe
The text of the proposed rule change sender or receiver is assessed the fee is
brokers A, B and C.4 The Exchange does
is available on the Exchange’s Web site dependent upon whether the customer
not assess any fee, to the PULSe broker
(http://www.cboe.com/AboutCBOE/ receiving the drop copies is a TPH or
or otherwise, for a non-TPH customer
CBOELegalRegulatoryHome.aspx), at non-TPH.
If a customer receiving drop copies is electing to use non-PULSe-to-PULSe
the Exchange’s Office of the Secretary, routing functionality.
and at the Commission’s Public a TPH, that TPH customer (the receiving
Reference Room. TPH) will be charged a fee of $1000 per FIX Integration Drop Copy Start-Up/
month, per PULSe broker from whom it Cancellation Fees
II. Self-Regulatory Organization’s receives drop copies via PULSe. For
Statement of the Purpose of, and The Exchange is proposing fees for
example, if TPH customer A receives
Statutory Basis for, the Proposed Rule both the start-up and cancellation of the
drop copies from each of PULSe broker
Change FIX integration needed to send and
A, PULSe broker B, and PULSe broker
receive drop copies from PULSe
In its filing with the Commission, the C (all of which are TPHs), TPH A (the
workstations. The Exchange is
Exchange included statements receiving TPH) will be charged a fee of
proposing a one-time fee of $500 to
concerning the purpose of and basis for $3000 per month for receiving drop
recoup the costs required to connect a
the proposed rule change and discussed copies via PULSe from PULSe brokers
new drop copy customer to
any comments it received on the A, B and C (the sending TPHs).
If a customer receiving drop copies is workstations of its PULSe broker(s) and
proposed rule change. The text of these add the drop copy functionality for that
statements may be examined at the a non-TPH, the PULSe broker (the
sending TPH) who sends drop copies customer. Additionally, the Exchange is
places specified in Item IV below. The
via PULSe to that customer will be
sradovich on DSK3GMQ082PROD with NOTICES

Exchange has prepared summaries, set 3 Non-PULSe-to-PULSe routing is an ‘‘add-on’’

forth in sections A, B, and C below, of charged a fee of $500 per month. If that feature to drop copy connectivity. If a TPH or non-
the most significant aspects of such PULSe broker sends drop copies via TPH customer of a PULSe brokers elects to send
statements. PULSe to multiple non-TPH customers, orders through its third-party order management
the PULSe broker will be charged the system to its broker’s PULSe workstations, it must
also elect to have the drop copy connectivity.
27 17 CFR 200.30–3(a)(12). fee for each customer. For example, if 4 In Addition, the TPH customer would be
1 15 U.S.C. 78s(b)(1). PULSe broker A sends drop copies via charged $3,000/month for receiving drop copies
2 17 CFR 240.19b–4. its PULSe workstation to each of non- from the three PULSe brokers, as discussed above.

VerDate Sep<11>2014 19:36 Jan 23, 2017 Jkt 241001 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 E:\FR\FM\24JAN1.SGM 24JAN1
Document Created: 2018-02-01 15:12:17
Document Modified: 2018-02-01 15:12:17
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 8249