82_FR_9782 82 FR 9757 - Program for Allocation of Regulatory Responsibilities Pursuant to Rule 17d-2; Notice of Filing and Order Approving and Declaring Effective an Amendment to the Plan for the Allocation of Regulatory Responsibilities Among NYSE MKT LLC, Bats BZX Exchange, Inc., BOX Options Exchange LLC, C2 Options Exchange, Incorporated, the Chicago Board Options Exchange, Incorporated, Bats EDGX Exchange, Inc., the International Securities Exchange LLC, ISE Gemini, LLC, ISE Mercury, LLC, Financial Industry Regulatory Authority, Inc., NYSE Arca, Inc., The NASDAQ Stock Market LLC, NASDAQ BX, Inc., the NASDAQ PHLX, Inc., Miami International Securities Exchange, LLC, and MIAX PEARL, LLC Concerning Options-Related Sales Practice Matters

82 FR 9757 - Program for Allocation of Regulatory Responsibilities Pursuant to Rule 17d-2; Notice of Filing and Order Approving and Declaring Effective an Amendment to the Plan for the Allocation of Regulatory Responsibilities Among NYSE MKT LLC, Bats BZX Exchange, Inc., BOX Options Exchange LLC, C2 Options Exchange, Incorporated, the Chicago Board Options Exchange, Incorporated, Bats EDGX Exchange, Inc., the International Securities Exchange LLC, ISE Gemini, LLC, ISE Mercury, LLC, Financial Industry Regulatory Authority, Inc., NYSE Arca, Inc., The NASDAQ Stock Market LLC, NASDAQ BX, Inc., the NASDAQ PHLX, Inc., Miami International Securities Exchange, LLC, and MIAX PEARL, LLC Concerning Options-Related Sales Practice Matters

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 25 (February 8, 2017)

Page Range9757-9765
FR Document2017-02547

Federal Register, Volume 82 Issue 25 (Wednesday, February 8, 2017)
[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9757-9765]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02547]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79929; File No. S7-966]


Program for Allocation of Regulatory Responsibilities Pursuant to 
Rule 17d-2; Notice of Filing and Order Approving and Declaring 
Effective an Amendment to the Plan for the Allocation of Regulatory 
Responsibilities Among NYSE MKT LLC, Bats BZX Exchange, Inc., BOX 
Options Exchange LLC, C2 Options Exchange, Incorporated, the Chicago 
Board Options Exchange, Incorporated, Bats EDGX Exchange, Inc., the 
International Securities Exchange LLC, ISE Gemini, LLC, ISE Mercury, 
LLC, Financial Industry Regulatory Authority, Inc., NYSE Arca, Inc., 
The NASDAQ Stock Market LLC, NASDAQ BX, Inc., the NASDAQ PHLX, Inc., 
Miami International Securities Exchange, LLC, and MIAX PEARL, LLC 
Concerning Options-Related Sales Practice Matters

February 2, 2017.
    Notice is hereby given that the Securities and Exchange Commission 
(``Commission'') has issued an Order, pursuant to Section 17(d) of the 
Securities Exchange Act of 1934 (``Act''),\1\ approving and declaring 
effective an amendment to the plan for allocating regulatory 
responsibility (``Plan'') filed on January 13, 2017, pursuant to Rule 
17d-2 of the Act,\2\ by NYSE MKT LLC (``MKT''), Bats BZX Exchange, 
Inc., (``Bats''), the BOX Options Exchange LLC (``BOX''), C2 Options 
Exchange, Incorporated (``C2''), the Chicago Board Options Exchange, 
Incorporated (``CBOE''), Bats EDGX Exchange, Inc. (``EDGX''), the 
International Securities Exchange LLC (``ISE''), ISE Gemini, LLC 
(``Gemini''), ISE Mercury, LLC (``ISE Mercury''), Financial Industry 
Regulatory Authority, Inc. (``FINRA''), NYSE Arca, Inc. (``Arca''), The 
NASDAQ Stock Market LLC (``Nasdaq''), NASDAQ BX, Inc. (``BX''), NASDAQ 
PHLX, Inc. (``PHLX''), Miami International Securities Exchange 
(``MIAX''), and MIAX PEARL, LLC (``MIAX PEARL'') (collectively, 
``Participating Organizations'' or ``parties'').
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78q(d).
    \2\ 17 CFR 240.17d-2.
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I. Introduction

    Section 19(g)(1) of the Act,\3\ among other things, requires every 
self-regulatory organization (``SRO'') registered as either a national 
securities exchange or national securities association to examine for, 
and enforce compliance by, its members and persons associated with its 
members with the Act, the rules and regulations thereunder, and the 
SRO's own rules, unless the SRO is relieved of this responsibility 
pursuant to Section 17(d) \4\ or Section 19(g)(2) \5\ of the Act. 
Without this relief, the statutory obligation of each individual SRO 
could result in a pattern of multiple examinations of broker-dealers 
that maintain memberships in more than one SRO (``common members''). 
Such regulatory duplication would add unnecessary expenses for common 
members and their SROs.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(g)(1).
    \4\ 15 U.S.C. 78q(d).
    \5\ 15 U.S.C. 78s(g)(2).
---------------------------------------------------------------------------

    Section 17(d)(1) of the Act \6\ was intended, in part, to eliminate 
unnecessary multiple examinations and regulatory duplication.\7\ With 
respect to a common member, Section 17(d)(1) authorizes the Commission, 
by rule or order, to relieve an SRO of the responsibility to receive 
regulatory reports, to examine for and enforce compliance with 
applicable statutes, rules, and regulations, or to perform other 
specified regulatory functions.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q(d)(1).
    \7\ See Securities Act Amendments of 1975, Report of the Senate 
Committee on Banking, Housing, and Urban Affairs to Accompany S. 
249, S. Rep. No. 94-75, 94th Cong., 1st Session 32 (1975).
---------------------------------------------------------------------------

    To implement Section 17(d)(1), the Commission adopted two rules: 
Rule 17d-1 and Rule 17d-2 under the Act.\8\ Rule 17d-1 authorizes the 
Commission to name a single SRO as the designated examining authority 
(``DEA'') to examine common members for compliance with the financial 
responsibility requirements imposed by the Act, or by Commission or SRO 
rules.\9\ When an SRO has been named as a common member's DEA, all 
other SROs to which the common member belongs are relieved of the 
responsibility to examine the firm for compliance with the applicable 
financial responsibility rules. On its face, Rule 17d-1 deals only

[[Page 9758]]

with an SRO's obligations to enforce member compliance with financial 
responsibility requirements. Rule 17d-1 does not relieve an SRO from 
its obligation to examine a common member for compliance with its own 
rules and provisions of the federal securities laws governing matters 
other than financial responsibility, including sales practices and 
trading activities and practices.
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    \8\ 17 CFR 240.17d-1 and 17 CFR 240.17d-2, respectively.
    \9\ See Securities Exchange Act Release No. 12352 (April 20, 
1976), 41 FR 18808 (May 7, 1976).
---------------------------------------------------------------------------

    To address regulatory duplication in these and other areas, the 
Commission adopted Rule 17d-2 under the Act.\10\ Rule 17d-2 permits 
SROs to propose joint plans for the allocation of regulatory 
responsibilities with respect to their common members. Under paragraph 
(c) of Rule 17d-2, the Commission may declare such a plan effective if, 
after providing for notice and comment, it determines that the plan is 
necessary or appropriate in the public interest and for the protection 
of investors, to foster cooperation and coordination among the SROs, to 
remove impediments to, and foster the development of, a national market 
system and a national clearance and settlement system, and is in 
conformity with the factors set forth in Section 17(d) of the Act. 
Commission approval of a plan filed pursuant to Rule 17d-2 relieves an 
SRO of those regulatory responsibilities allocated by the plan to 
another SRO.
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    \10\ See Securities Exchange Act Release No. 12935 (October 28, 
1976), 41 FR 49091 (November 8, 1976).
---------------------------------------------------------------------------

II. The Plan

    On September 8, 1983, the Commission approved the SRO participants' 
plan for allocating regulatory responsibilities pursuant to Rule 17d-
2.\11\ On May 23, 2000, the Commission approved an amendment to the 
plan that added the ISE as a participant.\12\ On November 8, 2002, the 
Commission approved another amendment that replaced the original plan 
in its entirety and, among other things, allocated regulatory 
responsibilities among all the participants in a more equitable 
manner.\13\ On February 5, 2004, the Commission approved an amendment 
to the plan, primarily to include the BSE, which was establishing a new 
options trading facility to be known as BOX, as an SRO participant.\14\ 
On March 26, 2007, the Commission approved an amendment to the plan 
that, among other things, provided that the National Association of 
Securities Dealers (``NASD'') (n/k/a FINRA) and NYSE are Designated 
Options Examining Authorities under the plan.\15\ On March 12, 2008, 
the Commission approved an amendment to the plan primarily to add 
NASDAQ as an SRO participant.\16\ On June 18, 2008, the Commission 
approved an amendment to the plan primarily to remove the NYSE as a 
Designated Options Examining Authority, leaving FINRA as the sole 
Designated Options Examining Authority for all common members that are 
members of FINRA.\17\ On February 25, 2010, the Commission approved a 
proposed amendment to the plan to add Bats and C2 as SRO participants 
and to reflect the name changes of the American Stock Exchange LLC to 
the NYSE Amex LLC, the Boston Stock Exchange, Inc., to the NASDAQ OMX 
BX, Inc. and the Philadelphia Stock Exchange, Inc. to the NASDAQ OMX 
PHLX, Inc.\18\ On May 11, 2012, the Commission approved an amendment to 
the plan to add BOX as an SRO participant and to amend Section XIII of 
the plan to set forth a revised procedure for adding new participants 
to the plan.\19\ On December 5, 2012, the Commission approved an 
amendment to the plan to add MIAX as an SRO participant, and to change 
the name of NYSE Amex LLC to NYSE MKT LLC.\20\ On July 26, 2013, the 
Commission approved an amendment to the plan to add Topaz Exchange LLC 
as an SRO participant.\21\ On October 29, 2015, the Commission approved 
an amendment to the plan to add EDGX as an SRO participant and to 
change the name of Topaz Exchange, LLC to ISE Gemini, LLC.\22\ On 
February 16, 2016, the Commission approved an amendment to the plan to 
add ISE Mercury, and remove the NYSE, as an SRO participant to the 
Plan.\23\
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    \11\ See Securities Exchange Act Release No. 20158 (September 8, 
1983), 48 FR 41256 (September 14, 1983).
    \12\ See Securities Exchange Act Release No. 42816 (May 23, 
2000), 65 FR 34759 (May 31, 2000).
    \13\ See Securities Exchange Act Release No. 46800 (November 8, 
2002), 67 FR 69774 (November 19, 2002).
    \14\ See Securities Exchange Act Release No. 49197 (February 5, 
2004), 69 FR 7046 (February 12, 2004).
    \15\ See Securities Exchange Act Release No. 55532 (March 26, 
2007), 72 FR 15729 (April 2, 2007).
    \16\ See Securities Exchange Act Release No. 57481 (March 12, 
2008), 73 FR 14507 (March 18, 2008).
    \17\ See Securities Exchange Act Release No. 57987 (June 18, 
2008), 73 FR 36156 (June 25, 2008).
    \18\ See Securities Exchange Act Release No. 61589 (February 25, 
2012), 75 FR 9976 (March 4, 2010).
    \19\ See Securities Exchange Act Release No. 66974 (May 11, 
2012), 77 FR 29705 (May 18, 2012).
    \20\ See Securities Exchange Act Release No. 68363 (December 5, 
2012), 77 FR 73711 (December 11, 2012).
    \21\ See Securities Exchange Act Release No. 70051 (July 26, 
2013), 78 FR 46644 (August 1, 2013).
    \22\ See Securities Exchange Act Release No. 76309 (October 29, 
2015), 80 FR 68361 (November 4, 2015).
    \23\ See Securities Exchange Act Release No. 77148 (February 16, 
2016), 81 FR 8775 (February 22, 2016).
---------------------------------------------------------------------------

    The plan reduces regulatory duplication for a large number of firms 
currently members of two or more of the SRO participants by allocating 
regulatory responsibility for certain options-related sales practice 
matters to one of the SRO participants. Generally, under the plan, the 
SRO participant responsible for conducting options-related sales 
practice examinations of a firm, and investigating options-related 
customer complaints and terminations for cause of associated persons of 
that firm, is known as the firm's ``Designated Options Examining 
Authority'' (``DOEA''). Pursuant to the plan, any other SRO of which 
the firm is a member is relieved of these responsibilities during the 
period in which the firm is assigned to another SRO acting as that 
firm's DOEA.

III. Proposed Amendment to the Plan

    On January 13, 2017, the Parties submitted a proposed amendment to 
the Plan. The primary purpose of the amendment is to add MIAX PEARL as 
a participant to the Plan. The text of the proposed amended 17d-2 plan 
is as follows (additions are italicized; deletions are [bracketed]):
* * * * *
Agreement by and among [BATS]Bats BZX Exchange, Inc., BOX Options 
Exchange, LLC, the Chicago Board Options Exchange, Incorporated, C2 
Options Exchange, Incorporated, the International Securities Exchange, 
LLC, Financial Industry Regulatory Authority, Inc., Miami International 
Securities Exchange, LLC, the NYSE MKT LLC, the NYSE Arca, Inc., The 
NASDAQ Stock Market LLC, NASDAQ [OMX] BX, Inc., the NASDAQ [OMX] PHLX 
LLC, ISE Gemini, LLC, Bats EDGX Exchange, Inc., [and] ISE Mercury, LLC 
and MIAX PEARL, LLC, Pursuant to Rule 17d-2 under the Securities 
Exchange Act of 1934.

    This agreement (``Agreement''), by and among [BATS]Bats BZX 
Exchange, Inc., BOX Options Exchange, LLC, the Chicago Board Options 
Exchange, Incorporated, C2 Options Exchange, Incorporated, the 
International Securities Exchange, LLC, Financial Industry Regulatory 
Authority, Inc. (``FINRA''), Miami International Securities Exchange, 
LLC, The NASDAQ Stock Market LLC (``NASDAQ''), NASDAQ [OMX] BX, Inc., 
the NYSE MKT LLC, the NYSE Arca, Inc., the NASDAQ [OMX] PHLX

[[Page 9759]]

LLC, ISE Gemini, LLC, Bats EDGX Exchange, Inc., [and] ISE Mercury, LLC 
and MIAX PEARL, LLC, hereinafter collectively referred to as the 
Participants, is made this [2nd]13th day of [February]January, 201[6]7, 
pursuant to the provisions of Rule 17d-2 under the Securities Exchange 
Act of 1934 (the ``Exchange Act''), which allows for plans among self-
regulatory organizations to allocate regulatory responsibility. This 
Agreement shall be administered by a committee known as the Options 
Self-Regulatory Council (the ``Council'').
    This Agreement amends and restates the agreement entered into among 
the Participants on [October 8, 2015] February 3, 2016, entitled 
``Agreement by and among BATS Exchange, Inc., BOX Options Exchange, 
LLC, the Chicago Board Options Exchange, Incorporated, C2 Options 
Exchange, Incorporated, the International Securities Exchange, LLC, 
Financial Industry Regulatory Authority, Inc., Miami International 
Securities Exchange, LLC, the New York Stock Exchange LLC, NYSE MKT 
LLC, the NYSE Arca, Inc., the NASDAQ Stock Market LLC, NASDAQ OMX BX, 
Inc., the NASDAQ OMX PHLX, Inc., ISE Gemini, LLC, [and] EDGX Exchange, 
Inc. and ISE Mercury, LLC, Pursuant to Rule 17d-2 under the Securities 
Exchange Act of 1934.''
    Whereas, the Participants are desirous of allocating regulatory 
responsibilities with respect to broker-dealers, and persons associated 
therewith, that are members \1\ of more than one Participant (the 
``Common Members'') and conduct a public business for compliance with 
Common Rules (as hereinafter defined) relating to the conduct by 
broker-dealers of accounts for listed options, index warrants, currency 
index warrants and currency warrants (collectively, ``Covered 
Securities''); and
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    \1\ In the case of BOX Options Exchange, LLC (``BOX''), NASDAQ 
OMX BX, Inc. (``BX'') and NASDAQ members are those persons who are 
options participants (as defined in the BOX, BX and NASDAQ Options 
Market Rules).
---------------------------------------------------------------------------

    Whereas, the Participants are desirous of executing a plan for this 
purpose pursuant to the provisions of Rule 17d-2 and filing such plan 
with the Securities and Exchange Commission (``SEC'' or the 
``Commission'') for its approval;
    Now, therefore, in consideration of the mutual covenants contained 
hereafter, the Participants agree as follows:
    I. As used herein the term Designated Options Examining Authority 
(``DOEA'') shall mean: (1) FINRA insofar as it shall perform Regulatory 
Responsibility (as hereinafter defined) for its broker-dealer members 
that also are members of another Participant or (2) the Designated 
Examination Authority (``DEA'') pursuant to SEC Rule 17d-1 under the 
Securities Exchange Act (``Rule 17d-1'') for a broker-dealer that is a 
member of a more than one Participant (but not a member of FINRA).
    II. As used herein, the term ``Regulatory Responsibility'' shall 
mean the examination and enforcement responsibilities relating to 
compliance by Common Members with the rules of the applicable 
Participant that are substantially similar to the rules of the other 
Participants (the ``Common Rules''), insofar as they apply to the 
conduct of accounts for Covered Securities. A list of the current 
Common Rules of each Participant applicable to the conduct of accounts 
for Covered Securities is attached hereto as Exhibit A. Each year 
within 30 days of the anniversary date of the commencement of operation 
of this Agreement, each Participant shall submit in writing to FINRA 
and each DEA performing as a DOEA for any members of such Participant 
any revisions to Exhibit A reflecting changes in the rules of the 
Participant, and confirm that all other rules of the Participant listed 
in Exhibit A continue to meet the definition of Common Rules as defined 
in this Agreement. Within 30 days from the date that FINRA and each DEA 
performing as a DOEA has received revisions and/or confirmation that no 
change has been made to Exhibit A from all Participants, FINRA and each 
DEA performing as a DOEA shall confirm in writing to each Participant 
whether the rules listed in any updated Exhibit A are Common Rules as 
defined in this Agreement. Notwithstanding anything herein to the 
contrary, it is explicitly understood that the term ``Regulatory 
Responsibility'' does not include, and each of the Participants shall 
(unless allocated pursuant to Rule 17d-2 otherwise than under this 
Agreement) retain full responsibility for, each of the following:
    (a) Surveillance and enforcement with respect to trading activities 
or practices involving its own marketplace, including without 
limitation its rules relating to the rights and obligations of 
specialists and other market makers;
    (b) Registration pursuant to its applicable rules of associated 
persons;
    (c) Discharge of its duties and obligations as a DEA; and
    (d) Evaluation of advertising, responsibility for which shall 
remain with the Participant to which a Common Member submits same for 
approval.
    III. Apparent violations of another Participant's rules discovered 
by a DOEA, but which rules are not within the scope of the discovering 
DOEA's Regulatory Responsibility, shall be referred to the relevant 
Participant for such action as the Participant to which such matter has 
been referred deems appropriate. Notwithstanding the foregoing, nothing 
contained herein shall preclude a DOEA in its discretion from 
requesting that another Participant conduct an enforcement proceeding 
on a matter for which the requesting DOEA has Regulatory 
Responsibility. If such other Participants agree, the Regulatory 
Responsibility in such case shall be deemed transferred to the 
accepting Participant and confirmed in writing by the Participants 
involved. Each Participant agrees, upon request, to make available 
promptly all relevant files, records and/or witnesses necessary to 
assist another Participant in an investigation or enforcement 
proceeding.
    IV. The Council shall be composed of one representative designated 
by each of the Participants. Each Participant shall also designate one 
or more persons as its alternate representative(s). In the absence of 
the representative of a Participant, such alternate representative 
shall have the same powers, duties and responsibilities as the 
representative. Each Participant may, at any time, by notice to the 
then Chair of the Council, replace its representative and/or its 
alternate representative on such Council. A majority of the Council 
shall constitute a quorum and, unless specifically otherwise required, 
the affirmative vote of a majority of the Council members present (in 
person, by telephone or by written consent) shall be necessary to 
constitute action by the Council. The representative from FINRA shall 
serve as Chair of the Council. All notices and other communications for 
the Council shall be sent to it in care of the Chair or to each of the 
representatives.
    V. The Council shall determine the times and locations of Council 
meetings, provided that the Chair, acting alone, may also call a 
meeting of the Council in the event the Chair determines that there is 
good cause to do so. To the extent reasonably possible, notice of any 
meeting shall be given at least ten-business days prior thereto. 
Notwithstanding anything herein to the contrary, representatives shall 
always be given the option of participating in any meeting 
telephonically at their own expense rather than in person.
    VI. FINRA shall have Regulatory Responsibility for all Common 
Members that are members of FINRA. For the

[[Page 9760]]

purpose of fulfilling the Participants' Regulatory Responsibilities for 
Common Members that are not members of FINRA, the Participant that is 
the DEA shall serve as the DOEA. All Participants shall promptly notify 
the DOEAs no later than the next scheduled meeting of any change in 
membership of Common Members. A DOEA may request that a Common Member 
that is allocated to it be reallocated to another DOEA by giving thirty 
days written notice thereof. The DOEAs in their discretion may approve 
such request and reallocate such Common Member to another DOEA.
    VII. Each DOEA shall conduct an examination of each Common Member. 
The Participants agree that, upon request, relevant information in 
their respective files relative to a Common Member will be made 
available to the applicable DOEA. At each meeting of the Council, each 
DOEA shall be prepared to report on the status of its examination 
program for the previous quarter and any period prior thereto that has 
not previously been reported to the Council.
    VIII. Each DOEA will promptly furnish a copy of the Examination 
report, relating to Covered Securities, of any examination made 
pursuant to the provisions of this Agreement to each other Participant 
of which the Common Member examined is a member.
    IX. Each DOEA's Regulatory Responsibility shall for each Common 
Member allocated to it include investigations into terminations ``for 
cause'' of associated persons relating to Covered Securities, unless 
such termination is related solely to another Participant's market. In 
the latter instance, that Participant to whose market the termination 
for cause relates shall discharge Regulatory Responsibility with 
respect to such termination for cause. In connection with a DOEA's 
examination, investigation and/or enforcement proceeding regarding a 
Covered Security-related termination for cause, the other Participants 
of which the Common Member is a member shall furnish, upon request, 
copies of all pertinent materials related thereto in their possession. 
As used in this Section, ``for cause'' shall include, without 
limitation, terminations characterized on Form U5 under the label 
``Permitted to Resign,'' ``Discharge'' or ``Other.''
    X. Each DOEA shall discharge the Regulatory Responsibility for each 
Common Member allocated to it relative to a Covered Securities-related 
customer complaint \2\ unless such complaint is uniquely related to 
another Participant's market. In the latter instance, the DOEA shall 
forward the matter to that Participant to whose market the matter 
relates, and the latter shall discharge Regulatory Responsibility with 
respect thereto. If a Participant receives a customer complaint for a 
Common Member related to a Covered Security for which the Participant 
is not the DOEA, the Participant shall promptly forward a copy of such 
complaint to the DOEA.
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    \2\ For purposes of complaints, they can be reported pursuant to 
Form U4, Form U5 or RE-3 and any amendments thereto.
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    XI. Any written notice required or permitted to be given under this 
Agreement shall be deemed given if sent by certified mail, return 
receipt requested, or by a comparable means of electronic communication 
to each Participant entitled to receipt thereof, to the attention of 
the Participant's representative on the Council at the Participant's 
then principal office or by email at such address as the representative 
shall have filed in writing with the Chair.
    XII. The Participants shall notify the Common Members of this 
Agreement by means of a uniform joint notice approved by the Council.
    XIII. This Agreement may be amended to add a new Participant 
provided that such Participant does not assume Regulatory 
Responsibility, solely by an amendment by FINRA and such new 
Participant. All other Participants expressly consent to allow FINRA to 
add new Participants to this Agreement as provided above. FINRA will 
promptly notify all Participants of any such amendments to add new 
Participants. All other amendments to this Agreement must be approved 
in writing by each Participant. All amendments, including adding a new 
Participant, must be filed with and approved by the SEC before they 
become effective.
    XIV. Any of the Participants may manifest its intention to cancel 
its participation in this Agreement at any time by giving the Council 
written notice thereof at least 90 days prior to the effective date of 
such cancellation. Upon receipt of such notice the Council shall 
allocate, in accordance with the provisions of this Agreement, any 
Common Members for which the petitioning party was the DOEA. Until such 
time as the Council has completed the reallocation described above; the 
petitioning Participant shall retain all its rights, privileges, duties 
and obligations hereunder.
    XV. The cancellation of its participation in this Agreement by any 
Participant shall not terminate this Agreement as to the remaining 
Participants. This Agreement will only terminate following notice to 
the Commission, in writing, by the then Participants that they intend 
to terminate the Agreement and the expiration of the applicable notice 
period. Such notice shall be given at least six months prior to the 
intended date of termination, provided that in the event a notice of 
cancellation is received from a Participant that, assuming the 
effectiveness thereof, would result in there being just one remaining 
member of the Council, notice to the Commission of termination of this 
Agreement shall be given promptly upon the receipt of such notice of 
cancellation, which termination shall be effective upon the 
effectiveness of the cancellation that triggered the notice of 
termination to the Commission.
    XVI. No Participant nor the Council nor any of their respective 
directors, governors, officers, employees or representatives shall be 
liable to any other Participant in this Agreement for any liability, 
loss or damage resulting from or claimed to have resulted from any 
delays, inaccuracies, errors or omissions with respect to the provision 
of Regulatory Responsibility as provided hereby or for the failure to 
provide any such Responsibility, except with respect to such liability, 
loss or damages as shall have been suffered by one or more of the 
Participants and caused by the willful misconduct of one or more of the 
other participants or their respective directors, governors, officers, 
employees or representatives. No warranties, express or implied, are 
made by any or all of the Participants or the Council with respect to 
any Regulatory Responsibility to be performed by each of them 
hereunder.
    XVII. Pursuant to Section 17(d)(1)(A) of the Securities Exchange 
Act of 1934 and Rule 17d-2 promulgated pursuant thereto, the 
Participants join in requesting the Securities and Exchange Commission, 
upon its approval of this Agreement or any part thereof, to relieve 
those Participants which are from time to time participants in this 
Agreement which are not the DOEA as to a Common Member of any and all 
Regulatory Responsibility with respect to the matters allocated to the 
DOEA.
* * * * *

[[Page 9761]]

[February 2, 2016]January 13, 2017

Exhibit A

Rules Enforced Under 17d-2 Agreement

    Pursuant to Section II of the Agreement by and among [BATS]Bats BZX 
Exchange, Inc. (``[BATS]BZX''), BOX Options Exchange, LLC (``BOX''), 
the Chicago Board Options Exchange, Incorporated (``CBOE''), C2 Options 
Exchange, Incorporated (``C2''), the International Securities Exchange, 
LLC (``ISE''), Financial Industry Regulatory Authority, Inc. 
(``FINRA''), Miami International Securities Exchange, LLC (``MIAX''), 
The NASDAQ Stock Market LLC (``NASDAQ''), NASDAQ [OMX] BX, Inc. 
(``BX''), the NYSE MKT LLC (``NYSE MKT''), the NYSE Arca, Inc. (``NYSE 
ARCA''), the NASDAQ [OMX] PHLX LLC (``PHLX''), ISE Gemini, LLC (``ISE 
Gemini''), [and] Bats EDGX Exchange, Inc. (``EDGX''), [and] ISE 
Mercury, LLC (``ISE Mercury'') and MIAX PEARL (``MIAX PEARL'') pursuant 
to Rule 17d-2 under the Securities Exchange Act of 1934 dated [February 
2, 2016] January 13, 2017 (the ``Agreement''), a revised list of the 
current Common Rules of each Participant, as compared to those of 
FINRA, applicable to the conduct of accounts for Covered Securities is 
set forth in this Exhibit A.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
                           Opening of Accounts
------------------------------------------------------------------------
NYSE MKT.....................  Rules 411, 921 and 1101.
[BATS]BZX....................  Rule 26.2.
BOX..........................  Rule 4020.
CBOE.........................  Rule 9.7.
C2 *.........................  CBOE Rule 9.7.
EDGX.........................  Rule 26.2.
ISE..........................  Rule 608.
FINRA........................  Rules 2360(b)(16) and 2352.
MIAX.........................  Rule 1307.
MIAX PEARL...................  Rule 1307.
ISE Gemini...................  Rule 608.
ISE Mercury..................  Rule 608.
PHLX.........................  Rule 1024(b) and (c).\1\
NYSE ARCA....................  Options Rules 9.2(a) and 9.18(b) and
                                Equities Rules 9.18(b) and 8.4.
BX...........................  Chapter XI, Section 7.
NASDAQ.......................  Chapter XI, Section 7.
------------------------------------------------------------------------
                               Supervision
------------------------------------------------------------------------
NYSE MKT.....................  Rules 411, 922 and 1104.
[BATS]BZX....................  Rule 26.3.
BOX..........................  Rule 4030.
CBOE.........................  Rule 9.8. \2\
C2...........................  CBOE Rule 9.8. \2\
EDGX.........................  Rule 26.3.
ISE..........................  Rule 609.
FINRA........................  Rules 2360(b)(20), 2360(b)(17)(B),
                                2360(b)(16)(E), 2355 and 2358.
MIAX.........................  Rule1308.
MIAX PEARL...................  Rule 1308.
ISE Gemini...................  Rule 609.
ISE Mercury..................  Rule 609.
PHLX.........................  Rule 1025.
NYSE ARCA....................  Options Rules 9.2(b) and 9.18(d)(2)(G)
                                and Equities Rule[s 9.18(d)(2)(G) and]
                                8.7.
BX...........................  Chapter XI, Section 8.
NASDAQ.......................  Chapter XI, Section 8.
------------------------------------------------------------------------
                               Suitability
------------------------------------------------------------------------
NYSE MKT.....................  Rules 923 and 1102.
[BATS]BZX....................  Rule 26.4.
BOX..........................  Rule 4040.
CBOE.........................  Rule 9.9.
C2...........................  CBOE Rule 9.9.
EDGX.........................  Rule 26.4.
ISE..........................  Rule 610.
FINRA........................  Rule 2360(b)(19) and 2353.
MIAX.........................  Rule 1309.
MIAX PEARL...................  Rule 1309.
ISE Gemini...................  Rule 610.
ISE Mercury..................  Rule 610.
PHLX.........................  Rule 1026.
NYSE ARCA....................  Options Rule 9.18(c) and Equities Rules
                                9.18(c) and 8.5.
BX...........................  Chapter XI, Section 9.
NASDAQ.......................  Chapter XI, Section 9.
------------------------------------------------------------------------
                         Discretionary Accounts
------------------------------------------------------------------------
NYSE MKT.....................  Rules 421, 924 and 1103.
[BATS]BZX....................  Rule 26.5. \3\
BOX..........................  Rule 4050.

[[Page 9762]]

 
CBOE.........................  Rule 9.10.
C2...........................  CBOE Rule 9.10.
EDGX.........................  Rule 26.5. \3\
ISE..........................  Rule 611.
FINRA........................  Rules 2360(b)(18) and 2354.
MIAX.........................  Rule 1310.
MIAX PEARL...................  Rule 1310.
ISE Gemini...................  Rule 611.
ISE Mercury..................  Rule 611.
PHLX.........................  Rule 1027.
NYSE ARCA....................  Options Rule 9.18(e) and Equities Rules
                                9.18(e) and 8.6.
BX...........................  Chapter XI, Section 10.
NASDAQ.......................  Chapter XI, Section 10.
------------------------------------------------------------------------
                  Customer Communications (Advertising)
------------------------------------------------------------------------
NYSE MKT.....................  Rules 991 and 1106.
[BATS]BZX....................  Rule 26.16.
BOX..........................  Rule 4170.
CBOE.........................  Rule 9.21.
C2...........................  CBOE Rule 9.21.
EDGX.........................  Rule 26.16.
ISE..........................  Rule 623.
FINRA........................  Rules 2220 and 2357.
MIAX.........................  Rule 1322.
MIAX PEARL...................  Rule 1322.
ISE Gemini...................  Rule 623.
ISE Mercury..................  Rule 623.
PHLX.........................  N/A.
NYSE ARCA....................  Options Rules 9.21(a) and 9.21(b).
BX...........................  Chapter XI, Section 22.
NASDAQ.......................  Chapter XI, Section 22.
------------------------------------------------------------------------
                           Customer Complaints
------------------------------------------------------------------------
NYSE MKT.....................  Rules 932 and 1105.
[BATS]BZX....................  Rule 26.17.
BOX..........................  Rule 4190.
CBOE.........................  Rule 9.23.
C2...........................  CBOE Rule 9.23.
EDGX.........................  Rule 26.17.
ISE..........................  Rule 625.
FINRA........................  FINRA Rules 2360(b)(17)(A) and 2356.
MIAX.........................  Rule 1324.
MIAX PEARL...................  Rule 1324.
ISE Gemini...................  Rule 625.
ISE Mercury..................  Rule 625.
PHLX.........................  Rule 1028.
NYSE ARCA....................  Options Rule 9.18(I) and Equities Rules
                                9.18(l) and 8.8.
BX...........................  Chapter XI, Section 24.
NASDAQ.......................  Chapter XI, Section 24.
------------------------------------------------------------------------
                           Customer Statements
------------------------------------------------------------------------
NYSE MKT.....................  Rules 419 and 930.
[BATS]BZX....................  Rule 26.7.
BOX..........................  Rule 4070.
CBOE.........................  Rule 9.12.
C2...........................  CBOE Rule 9.12.
EDGX.........................  Rule 26.7.
ISE..........................  Rules 613.
FINRA........................  Rule 2360(b)(15).
MIAX.........................  Rule 1312.
MIAX PEARL...................  Rule 1312.
ISE Gemini...................  Rule 613.
ISE Mercury..................  Rule 613.
PHLX.........................  Rule 1032.
NYSE ARCA....................  Options Rule 9.18(j) and Equities Rule
                                9.18(j).
BX...........................  Chapter XI, Sections 12.
NASDAQ.......................  Chapter XI, Section 12.
------------------------------------------------------------------------
                              Confirmations
------------------------------------------------------------------------
NYSE MKT.....................  Rule 925.
[BATS]BZX....................  Rule 26.6.
BOX..........................  Rule 4060.
CBOE.........................  Rule 9.11.

[[Page 9763]]

 
C2...........................  CBOE Rule 9.11.
EDGX.........................  Rule 26.6.
ISE..........................  Rule 612.
FINRA........................  Rule 2360(b)(12).
MIAX.........................  Rule 1311.
MIAX PEARL...................  Rule 1311.
ISE Gemini...................  Rule 612.
ISE Mercury..................  Rule 612.
PHLX.........................  Rule 1028.
NYSE ARCA....................  Options Rule 9.18(f) and Equities Rule
                                9.18([j]f).
BX...........................  Chapter XI, Section 11.
NASDAQ.......................  Chapter XI, Section 11.
------------------------------------------------------------------------
                Allocation of Exercise Assignment Notices
------------------------------------------------------------------------
NYSE MKT.....................  Rule 981.
[BATS]BZX....................  Rule 23.2.
BOX..........................  Rule 9010.
CBOE.........................  Rule 11.2.
C2...........................  CBOE Rule 11.2.
EDGX.........................  Rule 23.2.
ISE..........................  Rule 1101.
FINRA........................  Rule 2360(b)(23)(C).
MIAX.........................  Rule 701.
MIAX PEARL...................  Rule 701.
ISE Gemini...................  Rule 1101.
ISE Mercury..................  Rule 1101.
PHLX.........................  Rule 1043.
NYSE ARCA....................  Options Rule 6.25(a).
BX...........................  Chapter VIII, Section 2.
NASDAQ.......................  Chapter VIII, Section 2.
------------------------------------------------------------------------
                          Disclosure Documents
------------------------------------------------------------------------
NYSE MKT.....................  Rules 921 and 926.
[BATS]BZX....................  Rule 26.10.
BOX..........................  Rule 4100.
CBOE.........................  Rule 9.15.
C2...........................  CBOE Rule 9.15.
EDGX.........................  Rule 26.10.
ISE..........................  Rule 616.
FINRA........................  Rule 2360(b)(11).
MIAX.........................  Rule 1315.
MIAX PEARL...................  Rule 1315.
ISE Gemini...................  Rule 616.
ISE Mercury..................  Rule 616.
PHLX.........................  Rule 1024(b)(v), 1029.
NYSE ARCA....................  Options Rule 9.18(g) and Equities Rule
                                9.18(g).
BX...........................  Chapter XI, Section 15.
NASDAQ.......................  Chapter XI, Section 15.
------------------------------------------------------------------------
                 Branch Offices of Member Organizations
------------------------------------------------------------------------
NYSE MKT.....................  Rule 922(d). \4\
BOX..........................  Rule 4010(b).
CBOE.........................  Rule 9.6.
C2...........................  CBOE Rule 9.6.
ISE..........................  Rule 607.
FINRA........................  Rules 2360(b)(20)(B) and 2355.
MIAX.........................  Rule 1306.
MIAX PEARL...................  Rule 1306.
ISE Gemini...................  Rule 607.
ISE Mercury..................  Rule 607.
PHLX.........................  N/A.
NYSE ARCA....................  Options Rule 9.18(m) and Equities Rule
                                9.18(m).
BX...........................  Chapter XI, Section 6.
NASDAQ.......................  Chapter XI, Section 6.
------------------------------------------------------------------------
                     Prohibition Against Guarantees
------------------------------------------------------------------------
NYSE MKT.....................  Rule 390.
[BATS]BZX....................  Rule 26.13.
BOX..........................  Rule 4130.
CBOE.........................  Rule 9.18.
C2...........................  CBOE Rule 9.18.
EDGX.........................  Rule 26.13.
ISE..........................  Rules 619.

[[Page 9764]]

 
FINRA........................  Rule 2150(b).
MIAX.........................  Rule 1318.
MIAX PEARL...................  Rule 1318.
ISE Gemini...................  Rule 619.
ISE Mercury..................  Rule 619.
PHLX.........................  Rule 777.
NYSE ARCA....................  Options Rule 9.1(e) and Equities Rule
                                9.1(e).
BX...........................  Chapter XI, Sections 18 and 19.
NASDAQ.......................  Chapter XI, Sections 18 and 19.
------------------------------------------------------------------------
                           Sharing in Accounts
------------------------------------------------------------------------
NYSE MKT.....................  Rule 390.
[BATS]BZX....................  Rule 26.14. \6\
BOX..........................  Rule 4140.
CBOE.........................  Rule 9.18(b).
C2...........................  CBOE Rule 9.18(b).
EDGX.........................  Rule 26.14, \6\
ISE..........................  Rule 620. \5\
FINRA........................  Rule 2150(c).
MIAX.........................  Rule 1319.
MIAX PEARL...................  Rule 1319.
ISE Gemini...................  Rule 620. \5\
ISE Mercury..................  Rule 620. \5\
PHLX.........................  N/A.
NYSE ARCA....................  Options Rule 9.1(f).
BX...........................  Chapter XI, Section 19. \6\
NASDAQ.......................  Chapter XI, Section 19. \6\
------------------------------------------------------------------------
                           Registration of ROP
------------------------------------------------------------------------
NYSE MKT.....................  Rule 920.
[BATS]BZX....................  Rule 17.2(g)(1), (2), (6) and (7).
BOX..........................  Rule 2020(c)(1), (e)(1) and IM-2040-4 and
                                IM-2040-5(b).
CBOE.........................  Rule 9.2.
C2...........................  CBOE Rule 9.2.
EDGX.........................  Rule 17.2(g)(1), (2), (6) and (7).
ISE..........................  Rule 601.
FINRA........................  NASD Rules 1022(f), IM-1022-1, &
                                1250(a)(1).
MIAX.........................  Rule 1301.
MIAX PEARL...................  Rule 1301.
ISE Gemini...................  Rule 601.
ISE Mercury..................  Rule 601.
PHLX.........................  Rule 1024(a)(i).
NYSE ARCA....................  Options Rule 9.26 and Equities Rule 9.26.
BX...........................  Chapter XI, Section 2 and Chapter II,
                                Section 2(g).
NASDAQ.......................  Chapter XI, Section 2 and Chapter II,
                                Section 2(g).
------------------------------------------------------------------------
                  Certification of Registered Personnel
------------------------------------------------------------------------
NYSE MKT.....................  Rule 920.
[BATS]BZX....................  Rule 2.5 Interpretation .01(c) and
                                11.4(e).
BOX..........................  IM-2040-3.
CBOE.........................  Rule 9.3.
C2...........................  CBOE Rule 9.3.
EDGX.........................  Rule 2.5 Interpretation .01(c) and
                                11.4(e).
ISE..........................  Rule 602.
FINRA........................  NASD Rule 1032(d).
MIAX.........................  Rule 1302.
MIAX PEARL...................  Rule 1302.
ISE Gemini...................  Rule 602.
ISE Mercury..................  Rule 602.
PHLX.........................  Rule 1024.
NYSE ARCA....................  Options Rule 9.27(a) and Equities Rule
                                9.27(a).
BX...........................  Chapter XI, Section 3 and Chapter II,
                                Section 2(h).
NASDAQ.......................  Chapter XI, Section 3 and Chapter II,
                                Section 2(h).
------------------------------------------------------------------------
\1\ FINRA shall not have any Regulatory Responsibility regarding foreign
  currency option requirements specified in any of the PHLX rules in
  this Exhibit A.
\2\ FINRA shall not have any Regulatory Responsibility regarding receipt
  of written reports by April 1 of each year pursuant to CBOE Rule
  9.8(g).
\3\ FINRA shall not have any Regulatory Responsibility to enforce this
  rule as to time and price discretion in institutional accounts.
\4\ FINRA shall only have Regulatory Responsibility for the first
  paragraph and shall not have any Regulatory Responsibility regarding
  the requirements for debt options.
\5\ FINRA shall not have any Regulatory Responsibility regarding ISE's,
  ISE Gemini's and ISE Mercury's requirements to the extent its rule
  does not contain an exception to permit sharing in the profits and
  losses of an account.
\6\ FINRA shall not have any Regulatory Responsibility regarding
  NASDAQ's, BX's, [BATS]BZX's, and EDGX's requirements to the extent
  such rules do not contain an exception addressing immediate family.


[[Page 9765]]

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. 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 S7-966 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 S7-966. This file number 
should be included on the subject line if email is used. To help the 
Commission process and review your comments more efficiently, please 
use only one method. The Commission will post all comments on the 
Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed plan that are filed with the 
Commission, and all written communications relating to the proposed 
plan between the Commission and any person, other than those that may 
be withheld from the public in accordance with the provisions of 5 
U.S.C. 552, will be available for Web site viewing and printing in the 
Commission's Public Reference Room, 100 F Street NE., Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the plan also will be available for inspection and 
copying at the principal offices of FINRA and MIAX PEARL. 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 S7-966 and should be submitted 
on or before March 1, 2017.

V. Discussion

    The Commission continues to believe that the proposed plan is an 
achievement in cooperation among the SRO participants. The Plan, as 
amended, will reduce unnecessary regulatory duplication by allocating 
to the designated SRO the responsibility for certain options-related 
sales practice matters that would otherwise be performed by multiple 
SROs. The plan promotes efficiency by reducing costs to firms that are 
members of more than one of the SRO participants. In addition, because 
the SRO participants coordinate their regulatory functions in 
accordance with the plan, the plan promotes, and will continue to 
promote, investor protection.
    Under paragraph (c) of Rule 17d-2, the Commission may, after 
appropriate notice and comment, declare a plan, or any part of a plan, 
effective. In this instance, the Commission believes that appropriate 
notice and comment can take place after the proposed amendment is 
effective. The primary purpose of the amendment is to add MIAX PEARL as 
a participant to the Plan. By declaring it effective today, the amended 
Plan can become effective and be implemented without undue delay.\24\ 
The Commission notes that the prior version of this plan immediately 
prior to this proposed amendment was published for comment and the 
Commission did not receive any comments thereon.\25\ Furthermore, the 
Commission does not believe that the amendment to the plan raises any 
new regulatory issues that the Commission has not previously 
considered.
---------------------------------------------------------------------------

    \24\ On December 13, 2016, the Commission approved MIAX PEARL's 
application for registration as a national securities exchange. See 
Securities Exchange Act Release No. 79543, 81 FR 92901 (December 20, 
2016).
    \25\ See Securities Exchange Act Release No. 77148 (February 16, 
2016), 81 FR 8775 (February 22, 2016).
---------------------------------------------------------------------------

VI. Conclusion

    This order gives effect to the amended Plan submitted to the 
Commission that is contained in File No. S7-966.
    It is therefore ordered, pursuant to Section 17(d) of the Act, that 
the Plan, as amended, filed with the Commission pursuant to Rule 17d-2 
on January 13, 2017, is hereby approved and declared effective.
    It is further ordered that those SRO participants that are not the 
DOEA as to a particular common member are relieved of those regulatory 
responsibilities allocated to the common member's DOEA under the 
amended Plan to the extent of such allocation.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(34).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-02547 Filed 2-7-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                               Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices                                                   9757

                                                    available in ADAMS under Accession                        Dated at Rockville, Maryland, this 1st day          Securities Exchange (‘‘MIAX’’), and
                                                    No. ML17031A153.                                        of February, 2017.                                    MIAX PEARL, LLC (‘‘MIAX PEARL’’)
                                                                                                              For the U.S. Nuclear Regulatory
                                                      • NRC’s PDR: You may examine and                                                                            (collectively, ‘‘Participating
                                                                                                            Commission.
                                                    purchase copies of public documents at                                                                        Organizations’’ or ‘‘parties’’).
                                                                                                            Daniel S. Collins,
                                                    the NRC’s PDR, Room O1–F21, One                                                                               I. Introduction
                                                    White Flint North, 11555 Rockville                      Director, Division of Material Safety, State,
                                                                                                            Tribal and Rulemaking Programs, Office of               Section 19(g)(1) of the Act,3 among
                                                    Pike, Rockville, Maryland 20852.                        Nuclear Material Safety and Safeguards.
                                                                                                                                                                  other things, requires every self-
                                                    B. Submitting Comments                                  [FR Doc. 2017–02574 Filed 2–7–17; 8:45 am]            regulatory organization (‘‘SRO’’)
                                                                                                            BILLING CODE 7590–01–P                                registered as either a national securities
                                                      Please include Docket ID NRC–2016–
                                                    0227 in the subject line of your                                                                              exchange or national securities
                                                    comment submission, in order to ensure                                                                        association to examine for, and enforce
                                                    that the NRC is able to make your                       SECURITIES AND EXCHANGE                               compliance by, its members and persons
                                                    comment submission available to the                     COMMISSION                                            associated with its members with the
                                                    public in this docket.                                  [Release No. 34–79929; File No. S7–966]               Act, the rules and regulations
                                                      The NRC cautions you not to include                                                                         thereunder, and the SRO’s own rules,
                                                    identifying or contact information that                 Program for Allocation of Regulatory                  unless the SRO is relieved of this
                                                    you do not want publicly disclosed in                   Responsibilities Pursuant to Rule 17d–                responsibility pursuant to Section
                                                    your comment submission. The NRC                        2; Notice of Filing and Order                         17(d) 4 or Section 19(g)(2) 5 of the Act.
                                                    will post all comment submissions at                    Approving and Declaring Effective an                  Without this relief, the statutory
                                                    http://www.regulations.gov as well as                   Amendment to the Plan for the                         obligation of each individual SRO could
                                                    enter the comment submissions into                      Allocation of Regulatory                              result in a pattern of multiple
                                                    ADAMS, and the NRC does not                             Responsibilities Among NYSE MKT                       examinations of broker-dealers that
                                                    routinely edit comment submissions to                   LLC, Bats BZX Exchange, Inc., BOX                     maintain memberships in more than one
                                                    remove identifying or contact                           Options Exchange LLC, C2 Options                      SRO (‘‘common members’’). Such
                                                    information.                                            Exchange, Incorporated, the Chicago                   regulatory duplication would add
                                                      If you are requesting or aggregating                  Board Options Exchange,                               unnecessary expenses for common
                                                    comments from other persons for                         Incorporated, Bats EDGX Exchange,                     members and their SROs.
                                                    submission to the NRC, then you should                  Inc., the International Securities                      Section 17(d)(1) of the Act 6 was
                                                    inform those persons not to include                     Exchange LLC, ISE Gemini, LLC, ISE                    intended, in part, to eliminate
                                                    identifying or contact information that                 Mercury, LLC, Financial Industry                      unnecessary multiple examinations and
                                                    they do not want to be publicly                         Regulatory Authority, Inc., NYSE Arca,                regulatory duplication.7 With respect to
                                                    disclosed in their comment submission.                  Inc., The NASDAQ Stock Market LLC,                    a common member, Section 17(d)(1)
                                                    Your request should state that the NRC                  NASDAQ BX, Inc., the NASDAQ PHLX,                     authorizes the Commission, by rule or
                                                                                                            Inc., Miami International Securities                  order, to relieve an SRO of the
                                                    does not routinely edit comment
                                                                                                            Exchange, LLC, and MIAX PEARL, LLC                    responsibility to receive regulatory
                                                    submissions to remove such information
                                                                                                            Concerning Options-Related Sales                      reports, to examine for and enforce
                                                    before making the comment
                                                                                                            Practice Matters                                      compliance with applicable statutes,
                                                    submissions available to the public or
                                                    entering the comment submissions into                   February 2, 2017.
                                                                                                                                                                  rules, and regulations, or to perform
                                                    ADAMS.                                                                                                        other specified regulatory functions.
                                                                                                               Notice is hereby given that the
                                                                                                                                                                    To implement Section 17(d)(1), the
                                                    II. Further Information                                 Securities and Exchange Commission
                                                                                                                                                                  Commission adopted two rules: Rule
                                                                                                            (‘‘Commission’’) has issued an Order,
                                                       This NUREG provides guidance to                                                                            17d–1 and Rule 17d–2 under the Act.8
                                                                                                            pursuant to Section 17(d) of the
                                                    existing licensees initially distributing               Securities Exchange Act of 1934                       Rule 17d–1 authorizes the Commission
                                                    byproduct material or source material to                (‘‘Act’’),1 approving and declaring                   to name a single SRO as the designated
                                                    persons exempt from the requirements                                                                          examining authority (‘‘DEA’’) to
                                                                                                            effective an amendment to the plan for
                                                    (exempt distribution) for an NRC license                                                                      examine common members for
                                                                                                            allocating regulatory responsibility
                                                    under 10 CFR 30.14, 10 CFR 30.15, 10                                                                          compliance with the financial
                                                                                                            (‘‘Plan’’) filed on January 13, 2017,
                                                    CFR 30.18, 10 CFR 30.19, 10 CFR 30.20,                                                                        responsibility requirements imposed by
                                                                                                            pursuant to Rule 17d–2 of the Act,2 by
                                                    10 CFR 30.21, 10 CFR 30.22, and 10 CFR                                                                        the Act, or by Commission or SRO
                                                                                                            NYSE MKT LLC (‘‘MKT’’), Bats BZX
                                                    40.13(c) and exempt from licensing                                                                            rules.9 When an SRO has been named as
                                                                                                            Exchange, Inc., (‘‘Bats’’), the BOX
                                                    requirements under the equivalent                       Options Exchange LLC (‘‘BOX’’), C2                    a common member’s DEA, all other
                                                    provisions in Agreement State                           Options Exchange, Incorporated (‘‘C2’’),              SROs to which the common member
                                                    regulations. This NUREG also provides                   the Chicago Board Options Exchange,                   belongs are relieved of the responsibility
                                                    guidance to applicants preparing a                      Incorporated (‘‘CBOE’’), Bats EDGX                    to examine the firm for compliance with
                                                    license application to distribute such                  Exchange, Inc. (‘‘EDGX’’), the                        the applicable financial responsibility
                                                    materials. Additionally, this NUREG                     International Securities Exchange LLC                 rules. On its face, Rule 17d–1 deals only
                                                    provides NRC reviewers with criteria for                (‘‘ISE’’), ISE Gemini, LLC (‘‘Gemini’’),                3 15 U.S.C. 78s(g)(1).
                                                    evaluating such a license application.                  ISE Mercury, LLC (‘‘ISE Mercury’’),                     4 15 U.S.C. 78q(d).
                                                    The purpose of this notice is to provide
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                            Financial Industry Regulatory                           5 15 U.S.C. 78s(g)(2).
                                                    the public an opportunity to review and                 Authority, Inc. (‘‘FINRA’’), NYSE Arca,                 6 15 U.S.C. 78q(d)(1).
                                                    comment on draft NUREG–1556,                            Inc. (‘‘Arca’’), The NASDAQ Stock                       7 See Securities Act Amendments of 1975, Report

                                                    Volume 8, Revision 1, ‘‘Consolidated                    Market LLC (‘‘Nasdaq’’), NASDAQ BX,                   of the Senate Committee on Banking, Housing, and
                                                    Guidance About Materials Licenses:                                                                            Urban Affairs to Accompany S. 249, S. Rep. No. 94–
                                                                                                            Inc. (‘‘BX’’), NASDAQ PHLX, Inc.                      75, 94th Cong., 1st Session 32 (1975).
                                                    Program-Specific Guidance About                         (‘‘PHLX’’), Miami International                         8 17 CFR 240.17d–1 and 17 CFR 240.17d–2,
                                                    Exempt Distribution Licenses.’’ These                                                                         respectively.
                                                    comments will be considered in the                        1 15   U.S.C. 78q(d).                                 9 See Securities Exchange Act Release No. 12352

                                                    final version or subsequent revisions.                    2 17   CFR 240.17d–2.                               (April 20, 1976), 41 FR 18808 (May 7, 1976).



                                               VerDate Sep<11>2014   17:36 Feb 07, 2017   Jkt 241001   PO 00000   Frm 00049   Fmt 4703   Sfmt 4703   E:\FR\FM\08FEN1.SGM   08FEN1


                                                    9758                       Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

                                                    with an SRO’s obligations to enforce                    an SRO participant.14 On March 26,                    remove the NYSE, as an SRO participant
                                                    member compliance with financial                        2007, the Commission approved an                      to the Plan.23
                                                    responsibility requirements. Rule 17d–1                 amendment to the plan that, among                        The plan reduces regulatory
                                                    does not relieve an SRO from its                        other things, provided that the National              duplication for a large number of firms
                                                    obligation to examine a common                          Association of Securities Dealers                     currently members of two or more of the
                                                    member for compliance with its own                      (‘‘NASD’’) (n/k/a FINRA) and NYSE are                 SRO participants by allocating
                                                    rules and provisions of the federal                     Designated Options Examining                          regulatory responsibility for certain
                                                    securities laws governing matters other                 Authorities under the plan.15 On March                options-related sales practice matters to
                                                    than financial responsibility, including                12, 2008, the Commission approved an                  one of the SRO participants. Generally,
                                                    sales practices and trading activities and              amendment to the plan primarily to add                under the plan, the SRO participant
                                                    practices.                                              NASDAQ as an SRO participant.16 On                    responsible for conducting options-
                                                                                                            June 18, 2008, the Commission                         related sales practice examinations of a
                                                       To address regulatory duplication in                                                                       firm, and investigating options-related
                                                    these and other areas, the Commission                   approved an amendment to the plan
                                                                                                            primarily to remove the NYSE as a                     customer complaints and terminations
                                                    adopted Rule 17d–2 under the Act.10                                                                           for cause of associated persons of that
                                                    Rule 17d–2 permits SROs to propose                      Designated Options Examining
                                                                                                            Authority, leaving FINRA as the sole                  firm, is known as the firm’s ‘‘Designated
                                                    joint plans for the allocation of                                                                             Options Examining Authority’’
                                                    regulatory responsibilities with respect                Designated Options Examining
                                                                                                            Authority for all common members that                 (‘‘DOEA’’). Pursuant to the plan, any
                                                    to their common members. Under                                                                                other SRO of which the firm is a
                                                    paragraph (c) of Rule 17d–2, the                        are members of FINRA.17 On February
                                                                                                            25, 2010, the Commission approved a                   member is relieved of these
                                                    Commission may declare such a plan                                                                            responsibilities during the period in
                                                    effective if, after providing for notice                proposed amendment to the plan to add
                                                                                                            Bats and C2 as SRO participants and to                which the firm is assigned to another
                                                    and comment, it determines that the                                                                           SRO acting as that firm’s DOEA.
                                                    plan is necessary or appropriate in the                 reflect the name changes of the
                                                    public interest and for the protection of               American Stock Exchange LLC to the                    III. Proposed Amendment to the Plan
                                                    investors, to foster cooperation and                    NYSE Amex LLC, the Boston Stock                          On January 13, 2017, the Parties
                                                    coordination among the SROs, to                         Exchange, Inc., to the NASDAQ OMX                     submitted a proposed amendment to the
                                                    remove impediments to, and foster the                   BX, Inc. and the Philadelphia Stock                   Plan. The primary purpose of the
                                                    development of, a national market                       Exchange, Inc. to the NASDAQ OMX                      amendment is to add MIAX PEARL as
                                                    system and a national clearance and                     PHLX, Inc.18 On May 11, 2012, the                     a participant to the Plan. The text of the
                                                    settlement system, and is in conformity                 Commission approved an amendment to                   proposed amended 17d–2 plan is as
                                                    with the factors set forth in Section                   the plan to add BOX as an SRO                         follows (additions are italicized;
                                                    17(d) of the Act. Commission approval                   participant and to amend Section XIII of              deletions are [bracketed]):
                                                    of a plan filed pursuant to Rule 17d–2                  the plan to set forth a revised procedure
                                                                                                                                                                  *      *    *     *    *
                                                    relieves an SRO of those regulatory                     for adding new participants to the                    Agreement by and among [BATS]Bats
                                                    responsibilities allocated by the plan to               plan.19 On December 5, 2012, the                      BZX Exchange, Inc., BOX Options
                                                    another SRO.                                            Commission approved an amendment to                   Exchange, LLC, the Chicago Board
                                                                                                            the plan to add MIAX as an SRO                        Options Exchange, Incorporated, C2
                                                    II. The Plan                                            participant, and to change the name of                Options Exchange, Incorporated, the
                                                                                                            NYSE Amex LLC to NYSE MKT LLC.20                      International Securities Exchange, LLC,
                                                       On September 8, 1983, the                            On July 26, 2013, the Commission
                                                    Commission approved the SRO                                                                                   Financial Industry Regulatory
                                                                                                            approved an amendment to the plan to                  Authority, Inc., Miami International
                                                    participants’ plan for allocating                       add Topaz Exchange LLC as an SRO
                                                    regulatory responsibilities pursuant to                                                                       Securities Exchange, LLC, the NYSE
                                                                                                            participant.21 On October 29, 2015, the               MKT LLC, the NYSE Arca, Inc., The
                                                    Rule 17d–2.11 On May 23, 2000, the                      Commission approved an amendment to
                                                    Commission approved an amendment to                                                                           NASDAQ Stock Market LLC, NASDAQ
                                                                                                            the plan to add EDGX as an SRO                        [OMX] BX, Inc., the NASDAQ [OMX]
                                                    the plan that added the ISE as a                        participant and to change the name of
                                                    participant.12 On November 8, 2002, the                                                                       PHLX LLC, ISE Gemini, LLC, Bats EDGX
                                                                                                            Topaz Exchange, LLC to ISE Gemini,                    Exchange, Inc., [and] ISE Mercury, LLC
                                                    Commission approved another                             LLC.22 On February 16, 2016, the
                                                    amendment that replaced the original                                                                          and MIAX PEARL, LLC, Pursuant to
                                                                                                            Commission approved an amendment to                   Rule 17d–2 under the Securities
                                                    plan in its entirety and, among other                   the plan to add ISE Mercury, and
                                                    things, allocated regulatory                                                                                  Exchange Act of 1934.
                                                    responsibilities among all the                             14 See Securities Exchange Act Release No. 49197
                                                                                                                                                                     This agreement (‘‘Agreement’’), by
                                                    participants in a more equitable                        (February 5, 2004), 69 FR 7046 (February 12, 2004).   and among [BATS]Bats BZX Exchange,
                                                    manner.13 On February 5, 2004, the                         15 See Securities Exchange Act Release No. 55532   Inc., BOX Options Exchange, LLC, the
                                                    Commission approved an amendment to                     (March 26, 2007), 72 FR 15729 (April 2, 2007).        Chicago Board Options Exchange,
                                                    the plan, primarily to include the BSE,                    16 See Securities Exchange Act Release No. 57481
                                                                                                                                                                  Incorporated, C2 Options Exchange,
                                                                                                            (March 12, 2008), 73 FR 14507 (March 18, 2008).       Incorporated, the International
                                                    which was establishing a new options                       17 See Securities Exchange Act Release No. 57987
                                                    trading facility to be known as BOX, as                 (June 18, 2008), 73 FR 36156 (June 25, 2008).
                                                                                                                                                                  Securities Exchange, LLC, Financial
                                                                                                               18 See Securities Exchange Act Release No. 61589   Industry Regulatory Authority, Inc.
                                                      10 See Securities Exchange Act Release No. 12935      (February 25, 2012), 75 FR 9976 (March 4, 2010).      (‘‘FINRA’’), Miami International
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    (October 28, 1976), 41 FR 49091 (November 8,               19 See Securities Exchange Act Release No. 66974   Securities Exchange, LLC, The
                                                    1976).                                                  (May 11, 2012), 77 FR 29705 (May 18, 2012).           NASDAQ Stock Market LLC
                                                      11 See Securities Exchange Act Release No. 20158         20 See Securities Exchange Act Release No. 68363
                                                                                                                                                                  (‘‘NASDAQ’’), NASDAQ [OMX] BX,
                                                    (September 8, 1983), 48 FR 41256 (September 14,         (December 5, 2012), 77 FR 73711 (December 11,
                                                    1983).                                                  2012).                                                Inc., the NYSE MKT LLC, the NYSE
                                                      12 See Securities Exchange Act Release No. 42816         21 See Securities Exchange Act Release No. 70051   Arca, Inc., the NASDAQ [OMX] PHLX
                                                    (May 23, 2000), 65 FR 34759 (May 31, 2000).             (July 26, 2013), 78 FR 46644 (August 1, 2013).
                                                      13 See Securities Exchange Act Release No. 46800         22 See Securities Exchange Act Release No. 76309     23 See Securities Exchange Act Release No. 77148

                                                    (November 8, 2002), 67 FR 69774 (November 19,           (October 29, 2015), 80 FR 68361 (November 4,          (February 16, 2016), 81 FR 8775 (February 22,
                                                    2002).                                                  2015).                                                2016).



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                                                                               Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices                                            9759

                                                    LLC, ISE Gemini, LLC, Bats EDGX                         hereinafter defined) for its broker-dealer               III. Apparent violations of another
                                                    Exchange, Inc., [and] ISE Mercury, LLC                  members that also are members of                      Participant’s rules discovered by a
                                                    and MIAX PEARL, LLC, hereinafter                        another Participant or (2) the Designated             DOEA, but which rules are not within
                                                    collectively referred to as the                         Examination Authority (‘‘DEA’’)                       the scope of the discovering DOEA’s
                                                    Participants, is made this [2nd]13th day                pursuant to SEC Rule 17d–1 under the                  Regulatory Responsibility, shall be
                                                    of [February]January, 201[6]7, pursuant                 Securities Exchange Act (‘‘Rule 17d–1’’)              referred to the relevant Participant for
                                                    to the provisions of Rule 17d–2 under                   for a broker-dealer that is a member of               such action as the Participant to which
                                                    the Securities Exchange Act of 1934 (the                a more than one Participant (but not a                such matter has been referred deems
                                                    ‘‘Exchange Act’’), which allows for                     member of FINRA).                                     appropriate. Notwithstanding the
                                                    plans among self-regulatory                                II. As used herein, the term                       foregoing, nothing contained herein
                                                    organizations to allocate regulatory                    ‘‘Regulatory Responsibility’’ shall mean              shall preclude a DOEA in its discretion
                                                    responsibility. This Agreement shall be                 the examination and enforcement                       from requesting that another Participant
                                                    administered by a committee known as                    responsibilities relating to compliance               conduct an enforcement proceeding on
                                                    the Options Self-Regulatory Council (the                by Common Members with the rules of                   a matter for which the requesting DOEA
                                                    ‘‘Council’’).                                           the applicable Participant that are                   has Regulatory Responsibility. If such
                                                       This Agreement amends and restates                   substantially similar to the rules of the             other Participants agree, the Regulatory
                                                    the agreement entered into among the                    other Participants (the ‘‘Common                      Responsibility in such case shall be
                                                    Participants on [October 8, 2015]                       Rules’’), insofar as they apply to the                deemed transferred to the accepting
                                                    February 3, 2016, entitled ‘‘Agreement                  conduct of accounts for Covered                       Participant and confirmed in writing by
                                                    by and among BATS Exchange, Inc.,                       Securities. A list of the current Common              the Participants involved. Each
                                                    BOX Options Exchange, LLC, the                          Rules of each Participant applicable to               Participant agrees, upon request, to
                                                    Chicago Board Options Exchange,                         the conduct of accounts for Covered                   make available promptly all relevant
                                                    Incorporated, C2 Options Exchange,                      Securities is attached hereto as                      files, records and/or witnesses necessary
                                                    Incorporated, the International                         Exhibit A. Each year within 30 days of                to assist another Participant in an
                                                    Securities Exchange, LLC, Financial                     the anniversary date of the                           investigation or enforcement
                                                    Industry Regulatory Authority, Inc.,                    commencement of operation of this                     proceeding.
                                                    Miami International Securities                          Agreement, each Participant shall                        IV. The Council shall be composed of
                                                    Exchange, LLC, the New York Stock                       submit in writing to FINRA and each                   one representative designated by each of
                                                    Exchange LLC, NYSE MKT LLC, the                         DEA performing as a DOEA for any                      the Participants. Each Participant shall
                                                    NYSE Arca, Inc., the NASDAQ Stock                       members of such Participant any                       also designate one or more persons as its
                                                    Market LLC, NASDAQ OMX BX, Inc.,                        revisions to Exhibit A reflecting changes             alternate representative(s). In the
                                                    the NASDAQ OMX PHLX, Inc., ISE                          in the rules of the Participant, and                  absence of the representative of a
                                                    Gemini, LLC, [and] EDGX Exchange,                       confirm that all other rules of the                   Participant, such alternate
                                                    Inc. and ISE Mercury, LLC, Pursuant to                  Participant listed in Exhibit A continue              representative shall have the same
                                                    Rule 17d–2 under the Securities                         to meet the definition of Common Rules                powers, duties and responsibilities as
                                                    Exchange Act of 1934.’’                                 as defined in this Agreement. Within 30               the representative. Each Participant
                                                       Whereas, the Participants are desirous               days from the date that FINRA and each                may, at any time, by notice to the then
                                                    of allocating regulatory responsibilities               DEA performing as a DOEA has received                 Chair of the Council, replace its
                                                    with respect to broker-dealers, and                     revisions and/or confirmation that no                 representative and/or its alternate
                                                    persons associated therewith, that are                  change has been made to Exhibit A from                representative on such Council. A
                                                    members 1 of more than one Participant                  all Participants, FINRA and each DEA                  majority of the Council shall constitute
                                                    (the ‘‘Common Members’’) and conduct                    performing as a DOEA shall confirm in                 a quorum and, unless specifically
                                                    a public business for compliance with                   writing to each Participant whether the               otherwise required, the affirmative vote
                                                    Common Rules (as hereinafter defined)                   rules listed in any updated Exhibit A are             of a majority of the Council members
                                                    relating to the conduct by broker-dealers               Common Rules as defined in this                       present (in person, by telephone or by
                                                    of accounts for listed options, index                   Agreement. Notwithstanding anything                   written consent) shall be necessary to
                                                    warrants, currency index warrants and                   herein to the contrary, it is explicitly              constitute action by the Council. The
                                                    currency warrants (collectively,                        understood that the term ‘‘Regulatory                 representative from FINRA shall serve
                                                    ‘‘Covered Securities’’); and                            Responsibility’’ does not include, and                as Chair of the Council. All notices and
                                                       Whereas, the Participants are desirous               each of the Participants shall (unless                other communications for the Council
                                                    of executing a plan for this purpose                    allocated pursuant to Rule 17d–2                      shall be sent to it in care of the Chair
                                                    pursuant to the provisions of Rule 17d–                 otherwise than under this Agreement)                  or to each of the representatives.
                                                    2 and filing such plan with the                         retain full responsibility for, each of the              V. The Council shall determine the
                                                    Securities and Exchange Commission                      following:                                            times and locations of Council meetings,
                                                    (‘‘SEC’’ or the ‘‘Commission’’) for its                    (a) Surveillance and enforcement with              provided that the Chair, acting alone,
                                                    approval;                                               respect to trading activities or practices            may also call a meeting of the Council
                                                       Now, therefore, in consideration of                  involving its own marketplace,                        in the event the Chair determines that
                                                    the mutual covenants contained                          including without limitation its rules                there is good cause to do so. To the
                                                    hereafter, the Participants agree as                    relating to the rights and obligations of             extent reasonably possible, notice of any
                                                    follows:                                                specialists and other market makers;                  meeting shall be given at least ten-
                                                       I. As used herein the term Designated                                                                      business days prior thereto.
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                                                                                                               (b) Registration pursuant to its
                                                    Options Examining Authority (‘‘DOEA’’)                  applicable rules of associated persons;               Notwithstanding anything herein to the
                                                    shall mean: (1) FINRA insofar as it shall                  (c) Discharge of its duties and                    contrary, representatives shall always be
                                                    perform Regulatory Responsibility (as                   obligations as a DEA; and                             given the option of participating in any
                                                                                                               (d) Evaluation of advertising,                     meeting telephonically at their own
                                                       1 In the case of BOX Options Exchange, LLC
                                                                                                            responsibility for which shall remain                 expense rather than in person.
                                                    (‘‘BOX’’), NASDAQ OMX BX, Inc. (‘‘BX’’) and
                                                    NASDAQ members are those persons who are
                                                                                                            with the Participant to which a                          VI. FINRA shall have Regulatory
                                                    options participants (as defined in the BOX, BX and     Common Member submits same for                        Responsibility for all Common Members
                                                    NASDAQ Options Market Rules).                           approval.                                             that are members of FINRA. For the


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                                                    9760                       Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

                                                    purpose of fulfilling the Participants’                 complaint 2 unless such complaint is                  rights, privileges, duties and obligations
                                                    Regulatory Responsibilities for Common                  uniquely related to another Participant’s             hereunder.
                                                    Members that are not members of                         market. In the latter instance, the DOEA                 XV. The cancellation of its
                                                    FINRA, the Participant that is the DEA                  shall forward the matter to that                      participation in this Agreement by any
                                                    shall serve as the DOEA. All                            Participant to whose market the matter                Participant shall not terminate this
                                                    Participants shall promptly notify the                  relates, and the latter shall discharge
                                                                                                                                                                  Agreement as to the remaining
                                                    DOEAs no later than the next scheduled                  Regulatory Responsibility with respect
                                                                                                                                                                  Participants. This Agreement will only
                                                    meeting of any change in membership of                  thereto. If a Participant receives a
                                                                                                                                                                  terminate following notice to the
                                                    Common Members. A DOEA may                              customer complaint for a Common
                                                                                                                                                                  Commission, in writing, by the then
                                                    request that a Common Member that is                    Member related to a Covered Security
                                                                                                                                                                  Participants that they intend to
                                                    allocated to it be reallocated to another               for which the Participant is not the
                                                                                                                                                                  terminate the Agreement and the
                                                    DOEA by giving thirty days written                      DOEA, the Participant shall promptly
                                                    notice thereof. The DOEAs in their                      forward a copy of such complaint to the               expiration of the applicable notice
                                                    discretion may approve such request                     DOEA.                                                 period. Such notice shall be given at
                                                    and reallocate such Common Member to                                                                          least six months prior to the intended
                                                                                                              XI. Any written notice required or                  date of termination, provided that in the
                                                    another DOEA.                                           permitted to be given under this
                                                       VII. Each DOEA shall conduct an                                                                            event a notice of cancellation is received
                                                                                                            Agreement shall be deemed given if sent
                                                    examination of each Common Member.                                                                            from a Participant that, assuming the
                                                                                                            by certified mail, return receipt
                                                    The Participants agree that, upon                                                                             effectiveness thereof, would result in
                                                                                                            requested, or by a comparable means of
                                                    request, relevant information in their                                                                        there being just one remaining member
                                                                                                            electronic communication to each
                                                    respective files relative to a Common                                                                         of the Council, notice to the
                                                                                                            Participant entitled to receipt thereof, to
                                                    Member will be made available to the                                                                          Commission of termination of this
                                                                                                            the attention of the Participant’s
                                                    applicable DOEA. At each meeting of                     representative on the Council at the                  Agreement shall be given promptly
                                                    the Council, each DOEA shall be                         Participant’s then principal office or by             upon the receipt of such notice of
                                                    prepared to report on the status of its                 email at such address as the                          cancellation, which termination shall be
                                                    examination program for the previous                    representative shall have filed in writing            effective upon the effectiveness of the
                                                    quarter and any period prior thereto that               with the Chair.                                       cancellation that triggered the notice of
                                                    has not previously been reported to the                                                                       termination to the Commission.
                                                                                                              XII. The Participants shall notify the
                                                    Council.                                                Common Members of this Agreement by                      XVI. No Participant nor the Council
                                                       VIII. Each DOEA will promptly                        means of a uniform joint notice                       nor any of their respective directors,
                                                    furnish a copy of the Examination                       approved by the Council.                              governors, officers, employees or
                                                    report, relating to Covered Securities, of                                                                    representatives shall be liable to any
                                                                                                              XIII. This Agreement may be amended
                                                    any examination made pursuant to the                                                                          other Participant in this Agreement for
                                                                                                            to add a new Participant provided that
                                                    provisions of this Agreement to each                                                                          any liability, loss or damage resulting
                                                                                                            such Participant does not assume
                                                    other Participant of which the Common                                                                         from or claimed to have resulted from
                                                                                                            Regulatory Responsibility, solely by an
                                                    Member examined is a member.                                                                                  any delays, inaccuracies, errors or
                                                                                                            amendment by FINRA and such new
                                                       IX. Each DOEA’s Regulatory                           Participant. All other Participants                   omissions with respect to the provision
                                                    Responsibility shall for each Common                    expressly consent to allow FINRA to                   of Regulatory Responsibility as provided
                                                    Member allocated to it include                          add new Participants to this Agreement                hereby or for the failure to provide any
                                                    investigations into terminations ‘‘for                  as provided above. FINRA will                         such Responsibility, except with respect
                                                    cause’’ of associated persons relating to               promptly notify all Participants of any               to such liability, loss or damages as
                                                    Covered Securities, unless such                         such amendments to add new                            shall have been suffered by one or more
                                                    termination is related solely to another                Participants. All other amendments to                 of the Participants and caused by the
                                                    Participant’s market. In the latter                     this Agreement must be approved in                    willful misconduct of one or more of the
                                                    instance, that Participant to whose                     writing by each Participant. All                      other participants or their respective
                                                    market the termination for cause relates                amendments, including adding a new                    directors, governors, officers, employees
                                                    shall discharge Regulatory                              Participant, must be filed with and                   or representatives. No warranties,
                                                    Responsibility with respect to such                     approved by the SEC before they                       express or implied, are made by any or
                                                    termination for cause. In connection                    become effective.                                     all of the Participants or the Council
                                                    with a DOEA’s examination,                                                                                    with respect to any Regulatory
                                                    investigation and/or enforcement                          XIV. Any of the Participants may
                                                                                                            manifest its intention to cancel its                  Responsibility to be performed by each
                                                    proceeding regarding a Covered
                                                                                                            participation in this Agreement at any                of them hereunder.
                                                    Security-related termination for cause,
                                                    the other Participants of which the                     time by giving the Council written                      XVII. Pursuant to Section 17(d)(1)(A)
                                                    Common Member is a member shall                         notice thereof at least 90 days prior to              of the Securities Exchange Act of 1934
                                                    furnish, upon request, copies of all                    the effective date of such cancellation.              and Rule 17d–2 promulgated pursuant
                                                    pertinent materials related thereto in                  Upon receipt of such notice the Council               thereto, the Participants join in
                                                    their possession. As used in this                       shall allocate, in accordance with the                requesting the Securities and Exchange
                                                    Section, ‘‘for cause’’ shall include,                   provisions of this Agreement, any                     Commission, upon its approval of this
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    without limitation, terminations                        Common Members for which the                          Agreement or any part thereof, to relieve
                                                    characterized on Form U5 under the                      petitioning party was the DOEA. Until                 those Participants which are from time
                                                    label ‘‘Permitted to Resign,’’                          such time as the Council has completed                to time participants in this Agreement
                                                    ‘‘Discharge’’ or ‘‘Other.’’                             the reallocation described above; the                 which are not the DOEA as to a
                                                                                                            petitioning Participant shall retain all its          Common Member of any and all
                                                       X. Each DOEA shall discharge the
                                                    Regulatory Responsibility for each                                                                            Regulatory Responsibility with respect
                                                                                                              2 For purposes of complaints, they can be
                                                    Common Member allocated to it relative                                                                        to the matters allocated to the DOEA.
                                                                                                            reported pursuant to Form U4, Form U5 or RE–3
                                                    to a Covered Securities-related customer                and any amendments thereto.                           *     *     *     *    *


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                                                                                         Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices                                                    9761

                                                    [February 2, 2016]January 13, 2017                                           International Securities Exchange, LLC              Mercury, LLC (‘‘ISE Mercury’’) and
                                                                                                                                 (‘‘ISE’’), Financial Industry Regulatory            MIAX PEARL (‘‘MIAX PEARL’’)
                                                    Exhibit A
                                                                                                                                 Authority, Inc. (‘‘FINRA’’), Miami                  pursuant to Rule 17d–2 under the
                                                    Rules Enforced Under 17d–2 Agreement                                         International Securities Exchange, LLC              Securities Exchange Act of 1934 dated
                                                                                                                                 (‘‘MIAX’’), The NASDAQ Stock Market                 [February 2, 2016] January 13, 2017 (the
                                                      Pursuant to Section II of the                                              LLC (‘‘NASDAQ’’), NASDAQ [OMX]                      ‘‘Agreement’’), a revised list of the
                                                    Agreement by and among [BATS]Bats                                            BX, Inc. (‘‘BX’’), the NYSE MKT LLC                 current Common Rules of each
                                                    BZX Exchange, Inc. (‘‘[BATS]BZX’’),                                          (‘‘NYSE MKT’’), the NYSE Arca, Inc.                 Participant, as compared to those of
                                                    BOX Options Exchange, LLC (‘‘BOX’’),                                         (‘‘NYSE ARCA’’), the NASDAQ [OMX]                   FINRA, applicable to the conduct of
                                                    the Chicago Board Options Exchange,                                          PHLX LLC (‘‘PHLX’’), ISE Gemini, LLC                accounts for Covered Securities is set
                                                    Incorporated (‘‘CBOE’’), C2 Options                                          (‘‘ISE Gemini’’), [and] Bats EDGX                   forth in this Exhibit A.
                                                    Exchange, Incorporated (‘‘C2’’), the                                         Exchange, Inc. (‘‘EDGX’’), [and] ISE

                                                                                                                                            Opening of Accounts

                                                    NYSE MKT .........................................................            Rules 411, 921 and 1101.
                                                    [BATS]BZX ..........................................................          Rule 26.2.
                                                    BOX ....................................................................      Rule 4020.
                                                    CBOE ..................................................................       Rule 9.7.
                                                    C2 * .....................................................................    CBOE Rule 9.7.
                                                    EDGX ..................................................................       Rule 26.2.
                                                    ISE ......................................................................    Rule 608.
                                                    FINRA .................................................................       Rules 2360(b)(16) and 2352.
                                                    MIAX ...................................................................      Rule 1307.
                                                    MIAX PEARL ......................................................             Rule 1307.
                                                    ISE Gemini ..........................................................         Rule 608.
                                                    ISE Mercury ........................................................          Rule 608.
                                                    PHLX ...................................................................      Rule 1024(b) and (c).1
                                                    NYSE ARCA .......................................................             Options Rules 9.2(a) and 9.18(b) and Equities Rules 9.18(b) and 8.4.
                                                    BX .......................................................................    Chapter XI, Section 7.
                                                    NASDAQ .............................................................          Chapter XI, Section 7.

                                                                                                                                                  Supervision

                                                    NYSE MKT .........................................................            Rules 411, 922 and 1104.
                                                    [BATS]BZX ..........................................................          Rule 26.3.
                                                    BOX ....................................................................      Rule 4030.
                                                    CBOE ..................................................................       Rule 9.8. 2
                                                    C2 .......................................................................    CBOE Rule 9.8. 2
                                                    EDGX ..................................................................       Rule 26.3.
                                                    ISE ......................................................................    Rule 609.
                                                    FINRA .................................................................       Rules 2360(b)(20), 2360(b)(17)(B), 2360(b)(16)(E), 2355 and 2358.
                                                    MIAX ...................................................................      Rule1308.
                                                    MIAX PEARL ......................................................             Rule 1308.
                                                    ISE Gemini ..........................................................         Rule 609.
                                                    ISE Mercury ........................................................          Rule 609.
                                                    PHLX ...................................................................      Rule 1025.
                                                    NYSE ARCA .......................................................             Options Rules 9.2(b) and 9.18(d)(2)(G) and Equities Rule[s 9.18(d)(2)(G) and] 8.7.
                                                    BX .......................................................................    Chapter XI, Section 8.
                                                    NASDAQ .............................................................          Chapter XI, Section 8.

                                                                                                                                                   Suitability

                                                    NYSE MKT .........................................................            Rules 923 and 1102.
                                                    [BATS]BZX ..........................................................          Rule 26.4.
                                                    BOX ....................................................................      Rule 4040.
                                                    CBOE ..................................................................       Rule 9.9.
                                                    C2 .......................................................................    CBOE Rule 9.9.
                                                    EDGX ..................................................................       Rule 26.4.
                                                    ISE ......................................................................    Rule 610.
                                                    FINRA .................................................................       Rule 2360(b)(19) and 2353.
                                                    MIAX ...................................................................      Rule 1309.
                                                    MIAX PEARL ......................................................             Rule 1309.
                                                    ISE Gemini ..........................................................         Rule 610.
                                                    ISE Mercury ........................................................          Rule 610.
                                                    PHLX ...................................................................      Rule 1026.
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                                                    NYSE ARCA .......................................................             Options Rule 9.18(c) and Equities Rules 9.18(c) and 8.5.
                                                    BX .......................................................................    Chapter XI, Section 9.
                                                    NASDAQ .............................................................          Chapter XI, Section 9.

                                                                                                                                           Discretionary Accounts

                                                    NYSE MKT .........................................................            Rules 421, 924 and 1103.
                                                    [BATS]BZX ..........................................................          Rule 26.5. 3
                                                    BOX ....................................................................      Rule 4050.



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                                                    9762                                 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

                                                    CBOE ..................................................................      Rule 9.10.
                                                    C2 .......................................................................   CBOE Rule 9.10.
                                                    EDGX ..................................................................      Rule 26.5. 3
                                                    ISE ......................................................................   Rule 611.
                                                    FINRA .................................................................      Rules 2360(b)(18) and 2354.
                                                    MIAX ...................................................................     Rule 1310.
                                                    MIAX PEARL ......................................................            Rule 1310.
                                                    ISE Gemini ..........................................................        Rule 611.
                                                    ISE Mercury ........................................................         Rule 611.
                                                    PHLX ...................................................................     Rule 1027.
                                                    NYSE ARCA .......................................................            Options Rule 9.18(e) and Equities Rules 9.18(e) and 8.6.
                                                    BX .......................................................................   Chapter XI, Section 10.
                                                    NASDAQ .............................................................         Chapter XI, Section 10.

                                                                                                                                 Customer Communications (Advertising)

                                                    NYSE MKT .........................................................           Rules 991 and 1106.
                                                    [BATS]BZX ..........................................................         Rule 26.16.
                                                    BOX ....................................................................     Rule 4170.
                                                    CBOE ..................................................................      Rule 9.21.
                                                    C2 .......................................................................   CBOE Rule 9.21.
                                                    EDGX ..................................................................      Rule 26.16.
                                                    ISE ......................................................................   Rule 623.
                                                    FINRA .................................................................      Rules 2220 and 2357.
                                                    MIAX ...................................................................     Rule 1322.
                                                    MIAX PEARL ......................................................            Rule 1322.
                                                    ISE Gemini ..........................................................        Rule 623.
                                                    ISE Mercury ........................................................         Rule 623.
                                                    PHLX ...................................................................     N/A.
                                                    NYSE ARCA .......................................................            Options Rules 9.21(a) and 9.21(b).
                                                    BX .......................................................................   Chapter XI, Section 22.
                                                    NASDAQ .............................................................         Chapter XI, Section 22.

                                                                                                                                            Customer Complaints

                                                    NYSE MKT .........................................................           Rules 932 and 1105.
                                                    [BATS]BZX ..........................................................         Rule 26.17.
                                                    BOX ....................................................................     Rule 4190.
                                                    CBOE ..................................................................      Rule 9.23.
                                                    C2 .......................................................................   CBOE Rule 9.23.
                                                    EDGX ..................................................................      Rule 26.17.
                                                    ISE ......................................................................   Rule 625.
                                                    FINRA .................................................................      FINRA Rules 2360(b)(17)(A) and 2356.
                                                    MIAX ...................................................................     Rule 1324.
                                                    MIAX PEARL ......................................................            Rule 1324.
                                                    ISE Gemini ..........................................................        Rule 625.
                                                    ISE Mercury ........................................................         Rule 625.
                                                    PHLX ...................................................................     Rule 1028.
                                                    NYSE ARCA .......................................................            Options Rule 9.18(I) and Equities Rules 9.18(l) and 8.8.
                                                    BX .......................................................................   Chapter XI, Section 24.
                                                    NASDAQ .............................................................         Chapter XI, Section 24.

                                                                                                                                            Customer Statements

                                                    NYSE MKT .........................................................           Rules 419 and 930.
                                                    [BATS]BZX ..........................................................         Rule 26.7.
                                                    BOX ....................................................................     Rule 4070.
                                                    CBOE ..................................................................      Rule 9.12.
                                                    C2 .......................................................................   CBOE Rule 9.12.
                                                    EDGX ..................................................................      Rule 26.7.
                                                    ISE ......................................................................   Rules 613.
                                                    FINRA .................................................................      Rule 2360(b)(15).
                                                    MIAX ...................................................................     Rule 1312.
                                                    MIAX PEARL ......................................................            Rule 1312.
                                                    ISE Gemini ..........................................................        Rule 613.
                                                    ISE Mercury ........................................................         Rule 613.
                                                    PHLX ...................................................................     Rule 1032.
                                                    NYSE ARCA .......................................................            Options Rule 9.18(j) and Equities Rule 9.18(j).
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    BX .......................................................................   Chapter XI, Sections 12.
                                                    NASDAQ .............................................................         Chapter XI, Section 12.

                                                                                                                                                Confirmations

                                                    NYSE MKT .........................................................           Rule   925.
                                                    [BATS]BZX ..........................................................         Rule   26.6.
                                                    BOX ....................................................................     Rule   4060.
                                                    CBOE ..................................................................      Rule   9.11.



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                                                                                         Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices                                    9763

                                                    C2 .......................................................................   CBOE Rule 9.11.
                                                    EDGX ..................................................................      Rule 26.6.
                                                    ISE ......................................................................   Rule 612.
                                                    FINRA .................................................................      Rule 2360(b)(12).
                                                    MIAX ...................................................................     Rule 1311.
                                                    MIAX PEARL ......................................................            Rule 1311.
                                                    ISE Gemini ..........................................................        Rule 612.
                                                    ISE Mercury ........................................................         Rule 612.
                                                    PHLX ...................................................................     Rule 1028.
                                                    NYSE ARCA .......................................................            Options Rule 9.18(f) and Equities Rule 9.18([j]f).
                                                    BX .......................................................................   Chapter XI, Section 11.
                                                    NASDAQ .............................................................         Chapter XI, Section 11.

                                                                                                                                 Allocation of Exercise Assignment Notices

                                                    NYSE MKT .........................................................           Rule 981.
                                                    [BATS]BZX ..........................................................         Rule 23.2.
                                                    BOX ....................................................................     Rule 9010.
                                                    CBOE ..................................................................      Rule 11.2.
                                                    C2 .......................................................................   CBOE Rule 11.2.
                                                    EDGX ..................................................................      Rule 23.2.
                                                    ISE ......................................................................   Rule 1101.
                                                    FINRA .................................................................      Rule 2360(b)(23)(C).
                                                    MIAX ...................................................................     Rule 701.
                                                    MIAX PEARL ......................................................            Rule 701.
                                                    ISE Gemini ..........................................................        Rule 1101.
                                                    ISE Mercury ........................................................         Rule 1101.
                                                    PHLX ...................................................................     Rule 1043.
                                                    NYSE ARCA .......................................................            Options Rule 6.25(a).
                                                    BX .......................................................................   Chapter VIII, Section 2.
                                                    NASDAQ .............................................................         Chapter VIII, Section 2.

                                                                                                                                           Disclosure Documents

                                                    NYSE MKT .........................................................           Rules 921 and 926.
                                                    [BATS]BZX ..........................................................         Rule 26.10.
                                                    BOX ....................................................................     Rule 4100.
                                                    CBOE ..................................................................      Rule 9.15.
                                                    C2 .......................................................................   CBOE Rule 9.15.
                                                    EDGX ..................................................................      Rule 26.10.
                                                    ISE ......................................................................   Rule 616.
                                                    FINRA .................................................................      Rule 2360(b)(11).
                                                    MIAX ...................................................................     Rule 1315.
                                                    MIAX PEARL ......................................................            Rule 1315.
                                                    ISE Gemini ..........................................................        Rule 616.
                                                    ISE Mercury ........................................................         Rule 616.
                                                    PHLX ...................................................................     Rule 1024(b)(v), 1029.
                                                    NYSE ARCA .......................................................            Options Rule 9.18(g) and Equities Rule 9.18(g).
                                                    BX .......................................................................   Chapter XI, Section 15.
                                                    NASDAQ .............................................................         Chapter XI, Section 15.

                                                                                                                                 Branch Offices of Member Organizations

                                                    NYSE MKT .........................................................           Rule 922(d). 4
                                                    BOX ....................................................................     Rule 4010(b).
                                                    CBOE ..................................................................      Rule 9.6.
                                                    C2 .......................................................................   CBOE Rule 9.6.
                                                    ISE ......................................................................   Rule 607.
                                                    FINRA .................................................................      Rules 2360(b)(20)(B) and 2355.
                                                    MIAX ...................................................................     Rule 1306.
                                                    MIAX PEARL ......................................................            Rule 1306.
                                                    ISE Gemini ..........................................................        Rule 607.
                                                    ISE Mercury ........................................................         Rule 607.
                                                    PHLX ...................................................................     N/A.
                                                    NYSE ARCA .......................................................            Options Rule 9.18(m) and Equities Rule 9.18(m).
                                                    BX .......................................................................   Chapter XI, Section 6.
                                                    NASDAQ .............................................................         Chapter XI, Section 6.
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                                                      Prohibition Against Guarantees

                                                    NYSE MKT .........................................................           Rule 390.
                                                    [BATS]BZX ..........................................................         Rule 26.13.
                                                    BOX ....................................................................     Rule 4130.
                                                    CBOE ..................................................................      Rule 9.18.
                                                    C2 .......................................................................   CBOE Rule 9.18.
                                                    EDGX ..................................................................      Rule 26.13.
                                                    ISE ......................................................................   Rules 619.



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                                                    9764                                 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

                                                    FINRA .................................................................      Rule 2150(b).
                                                    MIAX ...................................................................     Rule 1318.
                                                    MIAX PEARL ......................................................            Rule 1318.
                                                    ISE Gemini ..........................................................        Rule 619.
                                                    ISE Mercury ........................................................         Rule 619.
                                                    PHLX ...................................................................     Rule 777.
                                                    NYSE ARCA .......................................................            Options Rule 9.1(e) and Equities Rule 9.1(e).
                                                    BX .......................................................................   Chapter XI, Sections 18 and 19.
                                                    NASDAQ .............................................................         Chapter XI, Sections 18 and 19.

                                                                                                                                            Sharing in Accounts

                                                    NYSE MKT .........................................................           Rule 390.
                                                    [BATS]BZX ..........................................................         Rule 26.14. 6
                                                    BOX ....................................................................     Rule 4140.
                                                    CBOE ..................................................................      Rule 9.18(b).
                                                    C2 .......................................................................   CBOE Rule 9.18(b).
                                                    EDGX ..................................................................      Rule 26.14, 6
                                                    ISE ......................................................................   Rule 620. 5
                                                    FINRA .................................................................      Rule 2150(c).
                                                    MIAX ...................................................................     Rule 1319.
                                                    MIAX PEARL ......................................................            Rule 1319.
                                                    ISE Gemini ..........................................................        Rule 620. 5
                                                    ISE Mercury ........................................................         Rule 620. 5
                                                    PHLX ...................................................................     N/A.
                                                    NYSE ARCA .......................................................            Options Rule 9.1(f).
                                                    BX .......................................................................   Chapter XI, Section 19. 6
                                                    NASDAQ .............................................................         Chapter XI, Section 19. 6

                                                                                                                                            Registration of ROP

                                                    NYSE MKT .........................................................           Rule 920.
                                                    [BATS]BZX ..........................................................         Rule 17.2(g)(1), (2), (6) and (7).
                                                    BOX ....................................................................     Rule 2020(c)(1), (e)(1) and IM–2040–4 and IM–2040–5(b).
                                                    CBOE ..................................................................      Rule 9.2.
                                                    C2 .......................................................................   CBOE Rule 9.2.
                                                    EDGX ..................................................................      Rule 17.2(g)(1), (2), (6) and (7).
                                                    ISE ......................................................................   Rule 601.
                                                    FINRA .................................................................      NASD Rules 1022(f), IM–1022–1, & 1250(a)(1).
                                                    MIAX ...................................................................     Rule 1301.
                                                    MIAX PEARL ......................................................            Rule 1301.
                                                    ISE Gemini ..........................................................        Rule 601.
                                                    ISE Mercury ........................................................         Rule 601.
                                                    PHLX ...................................................................     Rule 1024(a)(i).
                                                    NYSE ARCA .......................................................            Options Rule 9.26 and Equities Rule 9.26.
                                                    BX .......................................................................   Chapter XI, Section 2 and Chapter II, Section 2(g).
                                                    NASDAQ .............................................................         Chapter XI, Section 2 and Chapter II, Section 2(g).

                                                                                                                                   Certification of Registered Personnel

                                                    NYSE MKT .........................................................           Rule 920.
                                                    [BATS]BZX ..........................................................         Rule 2.5 Interpretation .01(c) and 11.4(e).
                                                    BOX ....................................................................     IM–2040–3.
                                                    CBOE ..................................................................      Rule 9.3.
                                                    C2 .......................................................................   CBOE Rule 9.3.
                                                    EDGX ..................................................................      Rule 2.5 Interpretation .01(c) and 11.4(e).
                                                    ISE ......................................................................   Rule 602.
                                                    FINRA .................................................................      NASD Rule 1032(d).
                                                    MIAX ...................................................................     Rule 1302.
                                                    MIAX PEARL ......................................................            Rule 1302.
                                                    ISE Gemini ..........................................................        Rule 602.
                                                    ISE Mercury ........................................................         Rule 602.
                                                    PHLX ...................................................................     Rule 1024.
                                                    NYSE ARCA .......................................................            Options Rule 9.27(a) and Equities Rule 9.27(a).
                                                    BX .......................................................................   Chapter XI, Section 3 and Chapter II, Section 2(h).
                                                    NASDAQ .............................................................         Chapter XI, Section 3 and Chapter II, Section 2(h).
                                                       1 FINRA shall not have any Regulatory Responsibility regarding foreign currency option requirements specified in any of the PHLX rules in this
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    Exhibit A.
                                                       2 FINRA shall not have any Regulatory Responsibility regarding receipt of written reports by April 1 of each year pursuant to CBOE Rule
                                                    9.8(g).
                                                       3 FINRA shall not have any Regulatory Responsibility to enforce this rule as to time and price discretion in institutional accounts.
                                                       4 FINRA shall only have Regulatory Responsibility for the first paragraph and shall not have any Regulatory Responsibility regarding the re-
                                                    quirements for debt options.
                                                       5 FINRA shall not have any Regulatory Responsibility regarding ISE’s, ISE Gemini’s and ISE Mercury’s requirements to the extent its rule does
                                                    not contain an exception to permit sharing in the profits and losses of an account.
                                                       6 FINRA shall not have any Regulatory Responsibility regarding NASDAQ’s, BX’s, [BATS]BZX’s, and EDGX’s requirements to the extent such
                                                    rules do not contain an exception addressing immediate family.



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                                                                               Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices                                                     9765

                                                    IV. Solicitation of Comments                            matters that would otherwise be                       SECURITIES AND EXCHANGE
                                                      Interested persons are invited to                     performed by multiple SROs. The plan                  COMMISSION
                                                    submit written data, views, and                         promotes efficiency by reducing costs to
                                                                                                                                                                  [Release No. 34–79949; File No. SR–
                                                    arguments concerning the foregoing.                     firms that are members of more than one
                                                                                                                                                                  BatsEDGX–2017–08]
                                                    Comments may be submitted by any of                     of the SRO participants. In addition,
                                                    the following methods:                                  because the SRO participants coordinate               Self-Regulatory Organizations; Bats
                                                                                                            their regulatory functions in accordance              EDGX Exchange, Inc.; Notice of Filing
                                                    Electronic Comments                                     with the plan, the plan promotes, and                 of a Proposed Rule Change To Adopt
                                                      • Use the Commission’s Internet                       will continue to promote, investor                    Rules 4.5 Through 4.16 To Implement
                                                    comment form (http://www.sec.gov/                       protection.                                           the Compliance Rule Regarding the
                                                    rules/sro.shtml); or                                       Under paragraph (c) of Rule 17d–2,                 National Market System Plan
                                                      • Send an email to rule-comments@                     the Commission may, after appropriate                 Governing the Consolidated Audit Trail
                                                    sec.gov. Please include File Number S7–                 notice and comment, declare a plan, or
                                                    966 on the subject line.                                                                                      February 2, 2017.
                                                                                                            any part of a plan, effective. In this
                                                                                                            instance, the Commission believes that                   Pursuant to Section 19(b)(1) of the
                                                    Paper Comments                                                                                                Securities Exchange Act of 1934 (the
                                                                                                            appropriate notice and comment can
                                                       • Send paper comments in triplicate                  take place after the proposed                         ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                    to Secretary, Securities and Exchange                   amendment is effective. The primary                   notice is hereby given that on January
                                                    Commission, 100 F Street NE.,                           purpose of the amendment is to add                    30, 2017, Bats EDGX Exchange, Inc. (the
                                                    Washington, DC 20549–1090.                              MIAX PEARL as a participant to the                    ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
                                                    All submissions should refer to File                    Plan. By declaring it effective today, the            Securities and Exchange Commission
                                                    Number S7–966. This file number                         amended Plan can become effective and                 (‘‘Commission’’) the proposed rule
                                                    should be included on the subject line                  be implemented without undue delay.24                 change as described in Items I, II and III
                                                    if email is used. To help the                           The Commission notes that the prior                   below, which Items have been prepared
                                                    Commission process and review your                      version of this plan immediately prior to             by the Exchange.3 The Commission is
                                                    comments more efficiently, please use                   this proposed amendment was                           publishing this notice to solicit
                                                    only one method. The Commission will                    published for comment and the                         comments on the proposed rule change
                                                    post all comments on the Commission’s                   Commission did not receive any                        from interested persons.
                                                    Internet Web site (http://www.sec.gov/                  comments thereon.25 Furthermore, the                  I. Self-Regulatory Organization’s
                                                    rules/sro.shtml). Copies of the                         Commission does not believe that the                  Statement of the Terms of Substance of
                                                    submission, all subsequent                              amendment to the plan raises any new                  the Proposed Rule Change
                                                    amendments, all written statements                      regulatory issues that the Commission
                                                                                                            has not previously considered.                           The Exchange filed a proposal to
                                                    with respect to the proposed plan that
                                                                                                                                                                  adopt Rules 4.5 through 4.16 to
                                                    are filed with the Commission, and all
                                                                                                            VI. Conclusion                                        implement the compliance rule
                                                    written communications relating to the
                                                                                                                                                                  (‘‘Compliance Rule’’) regarding the
                                                    proposed plan between the Commission                       This order gives effect to the amended             National Market System Plan Governing
                                                    and any person, other than those that                   Plan submitted to the Commission that                 the Consolidated Audit Trail (the ‘‘CAT
                                                    may be withheld from the public in                      is contained in File No. S7–966.                      NMS Plan’’ or ‘‘Plan’’).4
                                                    accordance with the provisions of 5                        It is therefore ordered, pursuant to                  The text of the proposed rule change
                                                    U.S.C. 552, will be available for Web                   Section 17(d) of the Act, that the Plan,              is available at the Exchange’s Web site
                                                    site viewing and printing in the                        as amended, filed with the Commission                 at www.bats.com, the principal office of
                                                    Commission’s Public Reference Room,                     pursuant to Rule 17d–2 on January 13,                 the Exchange, and at the Commission’s
                                                    100 F Street NE., Washington, DC                        2017, is hereby approved and declared                 Public Reference Room.
                                                    20549, on official business days                        effective.
                                                    between the hours of 10:00 a.m. and                                                                           II. Self-Regulatory Organization’s
                                                    3:00 p.m. Copies of the plan also will be                  It is further ordered that those SRO               Statement of the Purpose of, and
                                                    available for inspection and copying at                 participants that are not the DOEA as to              Statutory Basis for, the Proposed Rule
                                                    the principal offices of FINRA and                      a particular common member are                        Change
                                                    MIAX PEARL. All comments received                       relieved of those regulatory
                                                                                                            responsibilities allocated to the common                In its filing with the Commission, the
                                                    will be posted without change; the                                                                            Exchange included statements
                                                    Commission does not edit personal                       member’s DOEA under the amended
                                                                                                            Plan to the extent of such allocation.                concerning the purpose of and basis for
                                                    identifying information from                                                                                  the proposed rule change and discussed
                                                    submissions. You should submit only                       For the Commission, by the Division of
                                                                                                                                                                  any comments it received on the
                                                    information that you wish to make                       Trading and Markets, pursuant to delegated
                                                                                                            authority.26                                          proposed rule change. The text of these
                                                    available publicly. All submissions                                                                           statements may be examined at the
                                                    should refer to File Number S7–966 and                  Robert W. Errett,
                                                                                                                                                                  places specified in Item IV below. The
                                                    should be submitted on or before March                  Deputy Secretary.
                                                                                                                                                                  Exchange has prepared summaries, set
                                                    1, 2017.                                                [FR Doc. 2017–02547 Filed 2–7–17; 8:45 am]            forth in Sections A, B, and C below, of
                                                                                                            BILLING CODE 8011–01–P
                                                    V. Discussion
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                                                                                    1 15U.S.C. 78s(b)(1).
                                                      The Commission continues to believe                     24 On  December 13, 2016, the Commission              2 17CFR 240.19b–4.
                                                    that the proposed plan is an                            approved MIAX PEARL’s application for                   3 The Exchange originally filed this proposed rule
                                                    achievement in cooperation among the                    registration as a national securities exchange. See   change on January 17, 2017 under File No. SR–
                                                    SRO participants. The Plan, as                          Securities Exchange Act Release No. 79543, 81 FR      BatsEDGX–2017–06, and the Exchange
                                                                                                            92901 (December 20, 2016).                            subsequently withdrew that filing on January 30,
                                                    amended, will reduce unnecessary                          25 See Securities Exchange Act Release No. 77148    2017 and filed this proposed rule change.
                                                    regulatory duplication by allocating to                 (February 16, 2016), 81 FR 8775 (February 22,           4 Unless otherwise specified, capitalized terms
                                                    the designated SRO the responsibility                   2016).                                                used in this rule filing are defined as set forth
                                                    for certain options-related sales practice                26 17 CFR 200.30–3(a)(34).                          herein or in the CAT NMS Plan.



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Document Created: 2017-02-08 02:59:14
Document Modified: 2017-02-08 02:59:14
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 9757 

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