82 FR 9804 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Functionality Offered by the Exchange's Options Platform To Adopt Qualified Contingent Cross Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 25 (February 8, 2017)
Federal Register Volume 82, Issue 25 (February 8, 2017)
| Page Range | 9804-9807 | |
| FR Document | 2017-02545 |
[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)] [Notices] [Pages 9804-9807] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-02545] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79942; File No. SR-BatsEDGX-2017-11] Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Functionality Offered by the Exchange's Options Platform To Adopt Qualified Contingent Cross Orders February 2, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on February 1, 2017, Bats EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange filed a proposal related to functionality offered by the Exchange's options platform (``EDGX Options'') to adopt Qualified Contingent Cross Orders, as described below. [[Page 9805]] The text of the proposed rule change is available at the Exchange's Web site at www.bats.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is filing this proposal related to functionality offered by EDGX Options to adopt Qualified Contingent Cross Orders (``QCC Orders''), as described below. Background The purpose of this filing is to adopt rules related to QCC Orders. The proposed rule change is based on the rules of other options exchanges, including an International Securities Exchange (``ISE'') proposal that was previously approved by the Securities and Exchange Commission (``Commission'').\5\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 63955 (February 24, 2011), 76 FR 11533 (March 2, 2011) (SR-ISE-2010-73) (``ISE Approval''). --------------------------------------------------------------------------- The Exchange is currently a party to the Options Order Protection and Locked/Crossed Market Plan (``Linkage Plan''), and has implemented Exchange rules in conjunction with that plan, which are set forth in Chapter XXVII of the Exchange's Rules (the ``Linkage Rules''). Similar to Regulation NMS under the Act, the Linkage Plan requires, among other things, that the Exchange establish, maintain and enforce written policies and procedures that are reasonably designed to prevent ``Trade-Throughs.'' \6\ A Trade-Through is a transaction in an options series at a price that is inferior to the best price available in the market.\7\ The Linkage Plan replaced the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (``Old Linkage Plan''). The Old Linkage Plan provided a limited Trade-Through exemption for ``Block Trades,'' defined to be trades of 500 or more contracts with a premium value of at least $150,000.\8\ However, as with Regulation NMS, the Linkage Plan does not provide a Block Trade exemption. Since its original adoption by the ISE in 2011, QCC has been offered by multiple options exchanges as a limited substitute for the Block Trade exemption.\9\ --------------------------------------------------------------------------- \6\ See Section 5(a) of the Linkage Plan. \7\ See Section 2(21) of the Linkage Plan. \8\ See Old Linkage Plan Sections 2(3) and 8(c)(i)(C). \9\ See ISE Rule 715(j), Supplementary Material .01 to ISE Rule 715 and ISE Rule 721(b); see also CBOE Rule 6.53(u); NASDAQ PHLX Rule 1080(o); NYSE Arca Rule 6.62(bb), Commentary .02 to NYSE Arca Rule 6.62 and NYSE Arca Rule 6.90. --------------------------------------------------------------------------- Proposal Regarding Qualified Contingent Cross Orders The purpose of the proposed change is to provide the Exchange Users \10\ with the ability to submit to the Exchange Qualified Contingent Cross Orders, an order type offered by multiple other options exchanges.\11\ The proposed operation of Qualified Contingent Cross Orders on the Exchange is substantially similar in all material respects to the operation of such orders on such other exchanges. --------------------------------------------------------------------------- \10\ The term ``User'' means any Options Member or Sponsored Participant who is authorized to obtain access to the System pursuant to Rule 11.3 (Access). See Exchange Rule 16.1(a)(63). \11\ See supra, note 9. --------------------------------------------------------------------------- The Exchange proposes to adopt new paragraph (d)(11) to Rule 21.1 to govern the operation of Qualified Contingent Cross Orders. As proposed, a Qualified Contingent Cross Order would be an originating order to buy or sell at least 1,000 standard option contracts that is identified as being part of a qualified contingent trade (as that term is proposed to be defined in paragraph (d)(11)(A) to Rule 21.1), coupled with a contra-side order or orders totaling an equal number of contracts. As proposed, a ``qualified contingent trade'' is a transaction consisting of two or more component orders, executed as agent or principal, where: (i) At least one component is an NMS stock, as defined in Rule 600 of Regulation NMS under the Act; (ii) all components are effected with a product or price contingency that either has been agreed to by all the respective counterparties or arranged for by a broker-dealer as principal or agent; (iii) the execution of one component is contingent upon the execution of all other components at or near the same time; (iv) the specific relationship between the component orders (e.g., the spread between the prices of the component orders) is determined by the time the contingent order is placed; (v) the component orders bear a derivative relationship to one another, represent different classes of shares of the same issuer, or involve the securities of participants in mergers or with intentions to merge that have been announced or cancelled; and (vi) the transaction is fully hedged (without regard to any prior existing position) as a result of other components of the contingent trade. As proposed, Qualified Contingent Cross Orders would be allowed to execute automatically on entry without exposure provided the execution: (i) Is not at the same price as a Priority Customer Order \12\ resting in the EDGX Options Book; \13\ and (ii) is at or between the national best bid or offer (``NBBO''). As such, the Exchange also proposes to specify in proposed Rule 21.1(d)(11)(B) that Rule 22.12, related to exposure of orders on EDGX Options, does not apply to Qualified Contingent Cross Orders. The proposed Rule would also specify that Qualified Contingent Cross Orders will be cancelled if they cannot be executed. Also, pursuant to the proposed rule, Qualified Contingent Cross Orders may only be entered in the standard increments applicable to the options class under Rule 21.5. --------------------------------------------------------------------------- \12\ See Exchange Rule 16.1(a)(45) (defining ``Priority Customer'' and ``Priority Customer Order''). \13\ See Exchange Rule 16.1(a)(9) (defining ``EDGX Options Book''). --------------------------------------------------------------------------- The Exchange will track and monitor QCC Orders to determine which is the originating side of the order and which is the contra-side(s) of the order to ensure that Members are complying with the minimum 1,000 contract size limitation on the originating side of the QCC Order. The Exchange will check to see if Members are aggregating multiple orders to meet the 1,000 contract minimum on the originating side of the trade in violation of the requirements of the rule. The rule requires that the originating side of the trade consist of one party who is submitting a QCC Order for at least 1,000 contracts. The Exchange represents that it will enforce compliance with this portion of the rule by checking to see if a Member breaks up the originating side of the order in a post trade allocation to different clearing firms, allocating less than 1,000 contracts to a party or multiple parties. For example, a Member enters a QCC Order into the system for 1,500 contracts and receives an execution. Subsequent to the execution, the Member allocates the originating side of the order to two different clearing firms [[Page 9806]] on a post trade allocation basis, thereby allocating 500 contracts to one clearing firm and 1,000 contracts to another clearing firm. This type of transaction would not meet the requirements of a QCC Order under the current and proposed rule. With regard to order entry, a Member will have to mark the originating side as the first order in the system and the contra- side(s) as the second. The Exchange will monitor order entries to ensure that Members are properly entering QCC Orders into the system. 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\14\ In particular, the proposal is consistent with Section 6(b)(5) of the Act \15\ because it is designed to offer market participants greater flexibility by allowing such market participant to submit QCC Orders to the EDGX Options Book in the same way they are permitted to send QCC Orders to other options exchanges, thereby promoting just and equitable principles of trade, fostering cooperation and coordination with persons engaged in facilitating transactions in securities, removing impediments to, and perfecting the mechanism of, a free and open market and a national market system. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b). \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The proposed rules are consistent with the protection of investors in that they are designed to prevent Trade-Throughs. In addition, the proposed rule change would promote a free and open market by permitting the Exchange to compete with other options exchanges for these types of orders. In this regard, competition would result in benefits to the investing public, whereas a lack of competition would serve to limit the choices that participants have for execution of their options business. As noted above, the proposed operation of Qualified Contingent Cross Orders on the Exchange is substantially similar in all material respects to the operation of such orders on such other exchanges.\16\ As such, permitting the Exchange to operate on an even playing field relative to other exchanges removes impediments to and to perfects the mechanism for a free and open market and a national market system. --------------------------------------------------------------------------- \16\ See supra, note 9. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change to adopt QCC Orders will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange's proposed functionality is open to all market participants. Further, the proposed rule will allow the Exchange to compete with other options exchanges that currently offer QCC Orders, thus alleviating the burden on competition that would arise if such exchanges were permitted to continue offering such functionality and the Exchange was not. For these reasons, the Exchange does not believe that the proposed rule changes will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act, and believes the proposed change will enhance competition. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. The Exchange has not received any written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (A) Significantly affect the protection of investors or the public interest; (B) impose any significant burden on competition; and (C) by its terms, become operative for 30 days from the date on which it was filed or such shorter time as the Commission may designate it has become effective pursuant to Section 19(b)(3)(A) of the Act \17\ and paragraph (f)(6) of Rule 19b-4 thereunder,\18\ the Exchange has designated this rule filing as non-controversial. The Exchange has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A). \18\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BatsEDGX-2017-11 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BatsEDGX-2017-11. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File [[Page 9807]] Number SR-BatsEDGX-2017-11, and should be submitted on or before March 1, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2017-02545 Filed 2-7-17; 8:45 am] BILLING CODE 8011-01-P
![9804 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices
make clear that its provisions do not III. Date of Effectiveness of the office of the Exchange. All comments
apply to security futures. Proposed Rule Change and Timing for received will be posted without change;
The Exchange is also re-lettering Commission Action the Commission does not edit personal
certain paragraphs in Rule 415 to The proposed rule change will identifying information from
accommodate for the new provisions become operative on February 2, 2017. submissions. You should submit only
that are being added. At any time within 60 days of the date information that you wish to make
of effectiveness of the proposed rule available publicly. All submissions
2. Statutory Basis should refer to File Number SR–CFE–
change, the Commission, after
consultation with the CFTC, may 2017–001, and should be submitted on
The Exchange believes that the or before March 1, 2017.
proposed rule change is consistent with summarily abrogate the proposed rule
Section 6(b) of the Act,4 in general, and change and require that the proposed For the Commission, by the Division of
rule change be refiled in accordance Trading and Markets, pursuant to delegated
furthers the objectives of Sections authority.9
6(b)(5) 5 and 6(b)(7) 6 in particular in with the provisions of Section 19(b)(1)
of the Act.8 Robert W. Errett,
that it is designed:
Deputy Secretary.
• To prevent fraudulent and IV. Solicitation of Comments
[FR Doc. 2017–02536 Filed 2–7–17; 8:45 am]
manipulative acts and practices, Interested persons are invited to BILLING CODE 8011–01–P
• to promote just and equitable submit written data, views, and
principles of trade, and arguments concerning the foregoing,
• to remove impediments to and including whether the proposed rule SECURITIES AND EXCHANGE
perfect the mechanism of a free and change is consistent with the Act. COMMISSION
open market and a national market Comments may be submitted by any of
the following methods: [Release No. 34–79942; File No. SR–
system, and in general, to protect BatsEDGX–2017–11]
investors and the public interest. Electronic Comments
The Exchange believes that the • Use the Commission’s Internet Self-Regulatory Organizations; Bats
proposed rule change would provide comment form (http://www.sec.gov/ EDGX Exchange, Inc.; Notice of Filing
additional guidance to CFE market rules/sro.shtml); or and Immediate Effectiveness of a
participants related to the front running • Send an email to rule-comments@ Proposed Rule Change Related to
of Block Trades. The proposed rule sec.gov. Please include File Number SR– Functionality Offered by the
change would also contribute to CFE–2017–001 on the subject line. Exchange’s Options Platform To Adopt
enhanced protection of CFE’s market Qualified Contingent Cross Orders
and market participants. Paper Comments
February 2, 2017.
• Send paper comments in triplicate
B. Self-Regulatory Organization’s Pursuant to Section 19(b)(1) of the
to Secretary, Securities and Exchange
Statement on Burden on Competition Securities Exchange Act of 1934 (the
Commission, 100 F Street NE.,
‘‘Act’’),1 and Rule 19b–4 thereunder,2
CFE does not believe that the Washington, DC 20549–1090.
notice is hereby given that on February
proposed rule change will impose any All submissions should refer to File 1, 2017, Bats EDGX Exchange, Inc. (the
burden on competition not necessary or Number SR–CFE–2017–001. This file ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
appropriate in furtherance of the number should be included on the Securities and Exchange Commission
purposes of the Act, in that the subject line if email is used. To help the (the ‘‘Commission’’) the proposed rule
proposed rule change is consistent with Commission process and review your change as described in Items I, II, and
similar guidance provided by other comments more efficiently, please use III below, which Items have been
designated contracts markets.7 The only one method. The Commission will prepared by the Exchange. The
Exchange believes that the proposed post all comments on the Commission’s Exchange has designated this proposal
rule change is equitable and not unfairly Internet Web site (http://www.sec.gov/ as a ‘‘non-controversial’’ proposed rule
discriminatory in that the rule rules/sro.shtml). Copies of the change pursuant to Section 19(b)(3)(A)
amendments included in the proposed submission, all subsequent of the Act 3 and Rule 19b–4(f)(6)(iii)
rule change would apply equally to all amendments, all written statements thereunder,4 which renders it effective
market participants. with respect to the proposed rule upon filing with the Commission. The
change that are filed with the Commission is publishing this notice to
C. Self-Regulatory Organization’s Commission, and all written
Statement on Comments on the solicit comments on the proposed rule
communications relating to the change from interested persons.
Proposed Rule Change Received From proposed rule change between the
Members, Participants, or Others Commission and any person, other than I. Self-Regulatory Organization’s
those that may be withheld from the Statement of the Terms of the Substance
No written comments were solicited
public in accordance with the of the Proposed Rule Change
or received with respect to the proposed
rule change. provisions of 5 U.S.C. 552, will be The Exchange filed a proposal related
available for Web site viewing and to functionality offered by the
asabaliauskas on DSK3SPTVN1PROD with NOTICES
4 15 U.S.C. 78f(b).
printing in the Commission’s Public Exchange’s options platform (‘‘EDGX
5 15 U.S.C. 78f(b)(5). Reference Room, 100 F Street NE., Options’’) to adopt Qualified Contingent
6 15 U.S.C. 78f(b)(7). Washington, DC 20549, on official Cross Orders, as described below.
7 These designated contract markets are Chicago business days between the hours of
Mercantile Exchange, Inc. (‘‘CME’’), The Board of 10:00 a.m. and 3:00 p.m. Copies of such 9 17 CFR 200.30–3(a)(73).
Trade of the City of Chicago, Inc., New York filing also will be available for 1 15
Mercantile Exchange, Inc., New York Mercantile U.S.C. 78s(b)(1).
Exchange, Inc., and Commodity Exchange, Inc. See, inspection and copying at the principal 2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
CME Submission No. 16–470 (November 15, 2016),
which is available on the CFTC’s Web site. 8 15 U.S.C. 78s(b)(1). 4 17 CFR 240.19b–4(f)(6)(iii).
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![Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices 9807
Number SR–BatsEDGX–2017–11, and (‘‘PHLX’’), Miami International rules. On its face, Rule 17d–1 deals only
should be submitted on or before March Securities Exchange (‘‘MIAX’’), and with an SRO’s obligations to enforce
1, 2017. MIAX PEARL, LLC (‘‘MIAX PEARL’’) member compliance with financial
For the Commission, by the Division of (collectively, ‘‘Participating responsibility requirements. Rule 17d–1
Trading and Markets, pursuant to delegated Organizations’’ or ‘‘parties’’). does not relieve an SRO from its
authority.19 obligation to examine a common
I. Introduction member for compliance with its own
Robert W. Errett,
Deputy Secretary. Section 19(g)(1) of the Act,3 among rules and provisions of the federal
[FR Doc. 2017–02545 Filed 2–7–17; 8:45 am]
other things, requires every self- securities laws governing matters other
regulatory organization (‘‘SRO’’) than financial responsibility, including
BILLING CODE 8011–01–P
registered as either a national securities sales practices and trading activities and
exchange or national securities practices.
SECURITIES AND EXCHANGE association to examine for, and enforce To address regulatory duplication in
COMMISSION compliance by, its members and persons these and other areas, the Commission
associated with its members with the adopted Rule 17d–2 under the Act.10
[Release No. 34–79930; File No. 4–551] Act, the rules and regulations Rule 17d–2 permits SROs to propose
thereunder, and the SRO’s own rules, joint plans for the allocation of
Program for Allocation of Regulatory regulatory responsibilities with respect
unless the SRO is relieved of this
Responsibilities Pursuant to Rule 17d– to their common members. Under
responsibility pursuant to Section
2; Notice of Filing and Order paragraph (c) of Rule 17d–2, the
17(d) 4 or Section 19(g)(2) 5 of the Act.
Approving and Declaring Effective an Commission may declare such a plan
Amendment to the Plan for the Without this relief, the statutory
obligation of each individual SRO could effective if, after providing for notice
Allocation of Regulatory and comment, it determines that the
Responsibilities Among NYSE MKT result in a pattern of multiple
examinations of broker-dealers that plan is necessary or appropriate in the
LLC, Bats BZX Exchange, Inc., BOX public interest and for the protection of
Options Exchange LLC, C2 Options maintain memberships in more than one
SRO (‘‘common members’’). Such investors, to foster cooperation and
Exchange, Incorporated, the Chicago coordination among the SROs, to
Board Options Exchange, regulatory duplication would add
unnecessary expenses for common remove impediments to, and foster the
Incorporated, the Bats EDGX development of, a national market
Exchange, Inc., the International members and their SROs.
Section 17(d)(1) of the Act 6 was system and a national clearance and
Securities Exchange LLC, ISE Gemini, settlement system, and is in conformity
LLC, ISE Mercury, LLC, Financial intended, in part, to eliminate
unnecessary multiple examinations and with the factors set forth in Section
Industry Regulatory Authority, Inc., 17(d) of the Act. Commission approval
NYSE Arca, Inc., The NASDAQ Stock regulatory duplication.7 With respect to
a common member, Section 17(d)(1) of a plan filed pursuant to Rule 17d–2
Market LLC, NASDAQ BX, Inc., the relieves an SRO of those regulatory
NASDAQ PHLX, Inc., Miami authorizes the Commission, by rule or
order, to relieve an SRO of the responsibilities allocated by the plan to
International Securities Exchange, another SRO.
LLC, and MIAX PEARL Concerning responsibility to receive regulatory
Options-Related Market Surveillance reports, to examine for and enforce II. The Plan
compliance with applicable statutes,
February 2, 2017. On December 11, 2007, the
rules, and regulations, or to perform
Notice is hereby given that the Commission declared effective the
other specified regulatory functions.
Securities and Exchange Commission Participating Organizations’ Plan for
To implement Section 17(d)(1), the allocating regulatory responsibilities
(‘‘Commission’’) has issued an Order, Commission adopted two rules: Rule
pursuant to Section 17(d) of the pursuant to Rule 17d–2.11 On April 11,
17d–1 and Rule 17d–2 under the Act.8 2008, the Commission approved an
Securities Exchange Act of 1934 Rule 17d–1 authorizes the Commission
(‘‘Act’’),1 approving and declaring amendment to the Plan to include
to name a single SRO as the designated NASDAQ as a participant.12 On October
effective an amendment to the plan for examining authority (‘‘DEA’’) to
allocating regulatory responsibility 9, 2008, the Commission approved an
examine common members for amendment to the Plan to clarify that
(‘‘Plan’’) filed on January 31, 2017, compliance with the financial
pursuant to Rule 17d–2 of the Act,2 by the term Regulatory Responsibility for
responsibility requirements imposed by options position limits includes the
NYSE MKT LLC (‘‘MKT’’), Bats BZX the Act, or by Commission or SRO
Exchange, Inc., (‘‘Bats’’), the BOX examination responsibilities for the
rules.9 When an SRO has been named as delta hedging exemption.13 On February
Options Exchange LLC (‘‘BOX’’), C2 a common member’s DEA, all other
Options Exchange, Incorporated (‘‘C2’’), 25, 2010, the Commission approved an
SROs to which the common member amendment to the Plan to add Bats and
the Chicago Board Options Exchange, belongs are relieved of the responsibility
Incorporated (‘‘CBOE’’), the Bats EDGX C2 as SRO participants and to reflect the
to examine the firm for compliance with name changes of the American Stock
Exchange, Inc. (‘‘EDGX’’), the the applicable financial responsibility
International Securities Exchange LLC Exchange LLC to the NYSE Amex LLC,
(‘‘ISE’’), ISE Gemini, LLC (‘‘Gemini’’), 3 15 U.S.C. 78s(g)(1). 10 See Securities Exchange Act Release No. 12935
ISE Mercury, LLC (‘‘ISE Mercury’’), 4 15 U.S.C. 78q(d). (October 28, 1976), 41 FR 49091 (November 8,
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Financial Industry Regulatory 5 15 U.S.C. 78s(g)(2).
1976).
Authority, Inc. (‘‘FINRA’’), NYSE Arca, 6 15 U.S.C. 78q(d)(1). 11 See Securities Exchange Act Release No. 56941
7 See Securities Act Amendments of 1975, Report (December 11, 2007), 72 FR 71723 (December 18,
Inc. (‘‘Arca’’), The NASDAQ Stock
Market LLC (‘‘Nasdaq’’), NASDAQ BX, of the Senate Committee on Banking, Housing, and 2007) (File No. 4–551).
Urban Affairs to Accompany S. 249, S. Rep. No. 94– 12 See Securities Exchange Act Release No. 57649
Inc. (‘‘BX’’), NASDAQ PHLX, Inc. 75, 94th Cong., 1st Session 32 (1975). (April 11, 2008), 73 FR 20976 (April 17, 2008) (File
8 17 CFR 240.17d–1 and 17 CFR 240.17d–2, No. 4–551).
19 17 CFR 200.30–3(a)(12). respectively. 13 See Securities Exchange Act Release No. 58765
1 15 U.S.C. 78q(d). 9 See Securities Exchange Act Release No. 12352 (October 9, 2008), 73 FR 62344 (October 20, 2008)
2 17 CFR 240.17d–2. (April 20, 1976), 41 FR 18808 (May 7, 1976). (File No. 4–551).
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Document Created: 2017-02-08 02:59:26
Document Modified: 2017-02-08 02:59:26
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 9804 |
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