82_FR_9832 82 FR 9807 - 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, the 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 Concerning Options-Related Market Surveillance

82 FR 9807 - 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, the 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 Concerning Options-Related Market Surveillance

SECURITIES AND EXCHANGE COMMISSION

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

Page Range9807-9813
FR Document2017-02548

Federal Register, Volume 82 Issue 25 (Wednesday, February 8, 2017)
[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9807-9813]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02548]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79930; File No. 4-551]


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, the 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 Concerning 
Options-Related Market Surveillance

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 31, 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''), the 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'').
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    \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.
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    \3\ 15 U.S.C. 78s(g)(1).
    \4\ 15 U.S.C. 78q(d).
    \5\ 15 U.S.C. 78s(g)(2).
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    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.
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    \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).
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    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 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).
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    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).
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II. The Plan

    On December 11, 2007, the Commission declared effective the 
Participating Organizations' Plan for allocating regulatory 
responsibilities pursuant to Rule 17d-2.\11\ On April 11, 2008, the 
Commission approved an amendment to the Plan to include NASDAQ as a 
participant.\12\ On October 9, 2008, the Commission approved an 
amendment to the Plan to clarify that the term Regulatory 
Responsibility for options position limits includes the examination 
responsibilities for the delta hedging exemption.\13\ On February 25, 
2010, the Commission approved an 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,

[[Page 9808]]

and the Boston Stock Exchange, Inc. to the NASDAQ OMX BX, Inc.\14\ On 
May 11, 2012, the Commission approved an amendment to the Plan to add 
BOX as a participant to the Plan.\15\ On December 5, 2012, the 
Commission approved an amendment to the Plan to add MIAX as a 
participant to the Plan.\16\ On July 26, 2013, the Commission approved 
an amendment to the Plan to add Topaz Exchange, LLC as a Participant to 
the Plan.\17\ On October 29, 2015, the Commission approved an amendment 
to add EDGX as a Participant to the Plan and to change the name of 
Topaz Exchange, LLC to ISE Gemini, LLC.\18\ On February 16, 2016, the 
Commission approved an amendment to add ISE Mercury, LLC as a 
Participant to the Plan.\19\
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    \11\ See Securities Exchange Act Release No. 56941 (December 11, 
2007), 72 FR 71723 (December 18, 2007) (File No. 4-551).
    \12\ See Securities Exchange Act Release No. 57649 (April 11, 
2008), 73 FR 20976 (April 17, 2008) (File No. 4-551).
    \13\ See Securities Exchange Act Release No. 58765 (October 9, 
2008), 73 FR 62344 (October 20, 2008) (File No. 4-551).
    \14\ See Securities Exchange Act Release No. 61588 (February 25, 
2010), 75 FR 9970 (March 4, 2010) (File No. 4-551).
    \15\ See Securities Exchange Act Release No. 66975 (May 11, 
2012), 77 FR 29712 (May 18, 2010) (File No. 4-551).
    \16\ See Securities Exchange Act Release No. 68362 (December 5, 
2012), 77 FR 73719 (December 11, 2012) (File No. 4-551).
    \17\ See Securities Exchange Act Release No. 70052 (July 26, 
2013), 78 FR 46665 (August 1, 2013) (File No. 4-551).
    \18\ See Securities Exchange Act Release No. 76310 (October 29, 
2015), 80 FR 68354 (November 4, 2015) (File No. 4-551).
    \19\ See Securities Exchange Act Release No. 77149 (February 16, 
2016), 81 FR 8781 (February 22, 2016) (File No. 4-551).
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    The Plan is designed to reduce regulatory duplication for common 
members by allocating regulatory responsibility for certain options-
related market surveillance matters among the Participating 
Organizations. Generally, under the Plan, a Participating Organization 
will serve as the Designated Options Surveillance Regulator (``DOSR'') 
for each common member assigned to it and will assume regulatory 
responsibility with respect to that common member's compliance with 
applicable common rules for certain accounts. When an SRO has been 
named as a common member's DOSR, all other SROs to which the common 
member belongs will be relieved of regulatory responsibility for that 
common member, pursuant to the terms of the Plan, with respect to the 
applicable common rules specified in Exhibit A to the Plan.

III. Proposed Amendment to the Plan

    On January 31, 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 NYSE MKT LLC, BATSBZX EXCHANGE, INC., EDGX 
EXCHANGE INC., BOX OPTIONS EXCHANGE LLC, NASDAQ[OMX] BX, INC., C2 
OPTIONS EXCHANGE, INCORPORATED, THE CHICAGO BOARD OPTIONS EXCHANGE, 
INCORPORATED, 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 [OMX]PHLX 
[INC]LLC, MIAMI INTERNATIONAL SECURITIES EXCHANGE, LLC, AND MIAX PEARL, 
LLC PURSUANT TO RULE 17d-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934
    This agreement (this ``Agreement''), by and among NYSE MKT LLC 
(``MKT''), [BATS]Bats BZX Exchange, Inc., (``Bats[ATS]''), the Bats 
EDGX Exchange, Inc. (``EDGX''), the C2 Options Exchange, Incorporated 
(``C2''), the Chicago Board Options Exchange, Incorporated (``CBOE''), 
the International Securities Exchange, LLC (``ISE''), Financial 
Industry Regulatory Authority, Inc. (``FINRA''), NYSE Arca, Inc. 
(``Arca''), The NASDAQ Stock Market LLC (``Nasdaq''), BOX Options 
Exchange LLC (``BOX''), NASDAQ [OMX]BX, Inc. (``BX''), NASDAQ [OMX]PHLX 
[Inc.]LLC (``PHLX''), Miami International Securities Exchange, LLC 
(``MIAX''), ISE Gemini, LLC (``Gemini''), [and]ISE Mercury, LLC 
(``Mercury''), and MIAX PEARL, LLC (``MIAX PEARL''), is made this 10th 
day of October 2007, and as amended the 31st day of March 2008, the 1st 
day of October 2008, the 3rd day of February 2010, the 25th day of 
April 2012, and the 19th day of November 2012, and the 30th day of May 
2013, and the 16th day of October 2015, and the 29th day of January 
2016, and the 23rd day of January 2017, pursuant to Section 17(d) of 
the Securities Exchange Act of 1934, as amended (the ``Exchange Act''), 
and Rule 17d-2 thereunder (``Rule 17d-2''), which allows for a joint 
plan among self-regulatory organizations (``SROs'') to allocate 
regulatory obligations with respect to brokers or dealers that are 
members of two or more of the parties to this Agreement (``Common 
Members''). MKT, Bats[ATS], C2, CBOE, EDGX, ISE Gemini, ISE, ISE 
Mercury, FINRA, Arca, Nasdaq, BOX, BX, PHLX, [and]MIAX, and MIAX PEARL 
are collectively referred to herein as the ``Participants'' and 
individually, each a ``Participant.'' This Agreement shall be 
administered by a committee known as the Options Surveillance Group 
(the ``OSG'' or ``Group''), as described in Section V hereof. Unless 
defined in this Agreement or the context otherwise requires, the terms 
used herein shall have the meanings assigned thereto by the Exchange 
Act and the rules and regulations thereunder.
    Whereas, the Participants desire to eliminate regulatory 
duplication with respect to SRO market surveillance of Common Member 
\1\ activities with regard to certain common rules relating to listed 
options (``Options''); and
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    \1\ In the case of the BX and BOX, members are those persons who 
are Options Participants (as defined in the BOX Options Exchange LLC 
Rules and NASDAQ [OMX] BX, Inc. Rules).
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    Whereas, for this purpose, the Participants desire to execute and 
file this Agreement with the Securities and Exchange Commission (the 
``SEC'' or ``Commission'') pursuant to Rule 17d-2.
    Now, therefore, in consideration of the mutual covenants contained 
in this Agreement, the Participants agree as follows:
    I. Except as otherwise provided in this Agreement, each Participant 
shall assume Regulatory Responsibility (as defined below) for the 
Common Members that are allocated or assigned to such Participant in 
accordance with the terms of this Agreement and shall be relieved of 
its Regulatory Responsibility as to the remaining Common Members. For 
purposes of this Agreement, a Participant shall be considered to be the 
Designated Options Surveillance Regulator (``DOSR'') for each Common 
Member that is allocated to it in accordance with Section VII.
    II. As used in this Agreement, the term ``Regulatory 
Responsibility'' shall mean surveillance, investigation and enforcement 
responsibilities relating to compliance by the Common Members with such 
Options rules of the Participants as the Participants shall determine 
are substantially similar and shall approve from time to time, insofar 
as such rules relate to market surveillance (collectively, the ``Common 
Rules''). For the purposes of this Agreement the list of Common Rules 
is attached as Exhibit A hereto, which may only be amended upon 
unanimous written agreement by the Participants. The DOSR assigned to 
each Common Member shall assume Regulatory Responsibility with regard 
to that Common Member's compliance with the applicable Common Rules for 
certain accounts.\2\ A DOSR may perform its

[[Page 9809]]

Regulatory Responsibility or enter an agreement to transfer or assign 
such responsibilities to a national securities exchange registered with 
the SEC under Section 6(a) of the Exchange Act or a national securities 
association registered with the SEC under Section 15A of the Exchange 
Act. A DOSR may not transfer or assign its Regulatory Responsibility to 
an association registered for the limited purpose of regulating the 
activities of members who are registered as brokers or dealers in 
security futures products.
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    \2\ Certain accounts shall include customer (``C'' as classified 
by the Options Clearing Corporation (``OCC'')) and firm (``F'' as 
classified by OCC) accounts, as well as other accounts, such as 
market maker accounts as the Participants shall, from time to time, 
identify as appropriate to review.
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    The term ``Regulatory Responsibility'' does not include, and each 
Participant shall retain full responsibility with respect to:
    (a) Surveillance, investigative and enforcement responsibilities 
other than those included in the definition of Regulatory 
Responsibility;
    (b) any aspects of the rules of a Participant that are not 
substantially similar to the Common Rules or that are allocated for a 
separate surveillance purpose under any other agreement made pursuant 
to Rule 17d-2. Any such aspects of a Common Rule will be noted as 
excluded on Exhibit A. With respect to options position limits, the 
term Regulatory Responsibility shall include examination 
responsibilities for the delta hedging exemption. Specifically, the 
Participants intend that FINRA will conduct examinations for delta 
hedging for all Common Members that are members of FINRA 
notwithstanding the fact that FINRA's position limit rule is, in some 
cases, limited to only firms that are not members of an options 
exchange (i.e., access members). In such cases, FINRA's examinations 
for delta hedging options position limit violations will be for the 
identical or substantively similar position limit rule(s) of the other 
Participant(s). Examinations for delta hedging for Common Members that 
are non-FINRA members will be conducted by the same Participant 
conducting position limit surveillance. The allocation of Common 
Members to DOSRs for surveillance of compliance with options position 
limits and other agreed to Common Rules is provided in Exhibit B. The 
allocation of Common Members to DOSRs for examinations of the delta 
hedging exemption under the options position limits rules is provided 
in Exhibit C.
    III. Each year within 30 days of the anniversary date of the 
commencement of operation of this Agreement, or more frequently if 
required by changes in the rules of a Participant, each Participant 
shall submit to the other Participants, through the Chair of the OSG, 
an updated list of Common Rules for review. This updated list may add 
Common Rules to Exhibit A, shall delete from Exhibit A rules of that 
Participant that are no longer identical or substantially similar to 
the Common Rules, and shall confirm that the remaining rules of the 
Participant included on Exhibit A continue to be identically or 
substantially similar to the Common Rules. Within 30 days from the date 
that each Participant has received revisions to Exhibit A from the 
Chair of the OSG, each Participant shall confirm in writing to the 
Chair of the OSG whether that Participant's rules listed in Exhibit A 
are Common Rules.
    IV. Apparent violation of another Participant's rules discovered by 
a DOSR, but which rules are not within the scope of the discovering 
DOSR's Regulatory Responsibility, shall be referred to the relevant 
Participant for such action as is deemed appropriate by that 
Participant. Notwithstanding the foregoing, nothing contained herein 
shall preclude a DOSR in its discretion from requesting that another 
Participant conduct an investigative or enforcement proceeding 
(``Proceeding'') on a matter for which the requesting DOSR has 
Regulatory Responsibility. If such other Participant agrees, the 
Regulatory Responsibility in such case shall be deemed transferred to 
the accepting Participant and confirmed in writing by the Participants 
involved. Additionally, nothing in this Agreement shall prevent another 
Participant on whose market potential violative activity took place 
from conducting its own Proceeding on a matter. The Participant 
conducting the Proceeding shall advise the assigned DOSR. Each 
Participant agrees, upon request, to make available promptly all 
relevant files, records and/or witnesses necessary to assist another 
Participant in a Proceeding.
    V. The OSG shall be composed of one representative designated by 
each of the Participants (a ``Representative''). Each Participant shall 
also designate one or more persons as its alternate representative(s) 
(an ``Alternate Representative''). In the absence of the 
Representative, the Alternate Representative shall assume the powers, 
duties and responsibilities of the Representative. Each Participant may 
at any time replace its Representative and/or its Alternate 
Representative to the Group.\3\ A majority of the OSG shall constitute 
a quorum and, unless otherwise required, the affirmative vote of a 
majority of the Representatives present (in person, by telephone or by 
written consent) shall be necessary to constitute action by the Group. 
The Group will have a Chair, Vice Chair and Secretary. A different 
Participant will assume each position on a rotating basis for a one-
year term. In the event that a Participant replaces a Representative 
who is acting as Chair, Vice Chair or Secretary, the newly appointed 
Representative shall assume the position of Chair, Vice Chair, or 
Secretary (as applicable) vacated by the Participant's former 
Representative. In the event a Participant cannot fulfill its duties as 
Chair, the Participant serving as Vice Chair shall substitute for the 
Chair and complete the subject unfulfilled term. All notices and other 
communications for the OSG are to be sent in care of the Chair and, as 
appropriate, to each Representative.
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    \3\ A Participant must give notice to the Chair of the Group of 
such a change.
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    VI. The OSG shall determine the times and locations of Group 
meetings, provided that the Chair, acting alone, may also call a 
meeting of the Group 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 to the meeting 
date. Representatives shall always be given the option of participating 
in any meeting telephonically at their own expense rather than in 
person.
    VII. No less frequently than every two years, in such manner as the 
Group deems appropriate, the OSG shall allocate Common Members that 
conduct an Options business among the Participants (``Allocation''), 
and the Participant to which a Common Member is allocated will serve as 
the DOSR for that Common Member. Any Allocation shall be based on the 
following principles, except to the extent all affected Participants 
consent to one or more different principles:
    (a) The OSG may not allocate a Common Member to a Participant 
unless the Common Member is a member of that Participant.
    (b) To the extent practicable, Common Members that conduct an 
Options business shall be allocated among the Participants of which 
they are members in such manner as to equalize as nearly as possible 
the allocation among such Participants, provided that no Common Members 
shall be allocated to FINRA. For example, if sixteen Common Members 
that conduct an Options business are members only of three 
Participants, none of which is FINRA, those Common Members shall be 
allocated among the three Participants such that no Participant is 
allocated

[[Page 9810]]

more than six such members and no Participant is allocated less than 
five such members. If, in the previous example, one of the three 
Participants is FINRA, the sixteen Common Members would be allocated 
evenly between the remaining Participants, so that the two non-FINRA 
Participants would be allocated eight Common Members each.
    (c) To the extent practicable, Allocation shall take into account 
the amount of Options activity conducted by each Common Member in order 
to most evenly divide the Common Members with the largest amount of 
activity among the Participants of which they are members. Allocation 
will also take into account similar allocations pursuant to other plans 
or agreements to which the Common Members are party to maintain 
consistency in oversight of the Common Members.\4\
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    \4\ For example, if one Participant was allocated a Common 
Member by another regulatory group that Participant would be 
assigned to be the DOSR of that Common Member, unless there is good 
cause not to make that assignment.
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    (d) To the extent practicable, Allocation of Common Members to 
Participants will be rotated among the applicable Participants such 
that a Common Member shall not be allocated to a Participant to which 
that Common Member was allocated within the previous two years. The 
assignment of DOSRs pursuant to the Allocation is attached as Exhibit B 
hereto, and will be updated from time to time to reflect Common Member 
Allocation changes.
    (e) The Group may reallocate Common Members from time-to-time, as 
it deems appropriate.
    (f) Whenever a Common Member ceases to be a member of its DOSR, the 
DOSR shall promptly inform the Group, which shall review the matter and 
allocate the Common Member to another Participant.
    (g) A DOSR may request that a Common Member to which it is assigned 
be reallocated to another Participant by giving 30 days written notice 
to the Chair of the OSG. The Group, in its discretion, may approve such 
request and reallocate the Common Member to another Participant.
    (h) All determinations by the Group with respect to Allocation 
shall be made by the affirmative vote of a majority of the Participants 
that, at the time of such determination, share the applicable Common 
Member being allocated; a Participant shall not be entitled to vote on 
any Allocation relating to a Common Member unless the Common Member is 
a member of such Participant.
    VIII. Each DOSR shall conduct routine surveillance reviews to 
detect violations of the applicable Common Rules by each Common Member 
allocated to it with a frequency (daily, weekly, monthly, quarterly, 
semi-annually or annually as noted on Exhibit A) not less than that 
determined by the Group. The other Participants agree that, upon 
request, relevant information in their respective files relative to a 
Common Member will be made available to the applicable DOSR. In 
addition, each Participant shall provide, to the extent not otherwise 
already provided, information pertaining to its surveillance program 
that would be relevant to FINRA or the Participant(s) conducting 
routine examinations for the delta hedging exemption.
    At each meeting of the OSG, each Participant shall be prepared to 
report on the status of its surveillance program for the previous 
quarter and any period prior thereto that has not previously been 
reported to the Group. In the event a DOSR believes it will not be able 
to complete its Regulatory Responsibility for its allocated Common 
Members, it will so advise the Group in writing promptly. The Group 
will undertake to remedy this situation by reallocating the subject 
Common Members among the remaining Participants. In such instance, the 
Group may determine to impose a regulatory fee for services provided to 
the DOSR that was unable to fulfill its Regulatory Responsibility.
    IX. Each Participant will, upon request, promptly furnish a copy of 
the report or applicable portions thereof relating to any investigation 
made pursuant to the provisions of this Agreement to each other 
Participant of which the Common Member under investigation is a member.
    X. Each Participant will routinely populate a common database, to 
be accessed by the Group relating to any formal regulatory action taken 
during the course of a Proceeding with respect to the Common Rules 
concerning a Common Member.
    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, to any Participant to the attention of that 
Participant's Representative, to the Participant's principal place of 
business or by email at such address as the Representative shall have 
filed in writing with the Chair.
    XII. The costs incurred by each Participant in discharging its 
Regulatory Responsibility under this Agreement are not reimbursable. 
However, any of the Participants may agree that one or more will 
compensate the other(s) for costs incurred.
    XIII. The Participants shall notify the Common Members of this 
Agreement by means of a uniform joint notice approved by the Group. 
Each Participant will notify the Common Members that have been 
allocated to it that such Participant will serve as DOSR for that 
Common Member.
    XIV. This Agreement shall be effective upon approval of the 
Commission. This Agreement may only be amended in writing duly approved 
by each Participant. All amendments to this Agreement, excluding 
changes to Exhibits A, B and C, must be filed with and approved by the 
Commission.
    XV. Any Participant may manifest its intention to cancel its 
participation in this Agreement at any time upon providing written 
notice to (i) the Group six months prior to the date of such 
cancellation, or such other period as all the Participants may agree, 
and (ii) the Commission. Upon receipt of the notice the Group shall 
allocate, in accordance with the provisions of this Agreement, those 
Common Members for which the canceling Participant was the DOSR. The 
canceling Participant shall retain its Regulatory Responsibility and 
other rights, privileges and duties pursuant to this Agreement until 
the Group has completed the reallocation as described above, and the 
Commission has approved the cancellation.
    XVI. 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, or such other period as all the 
Participants may agree. Such termination will become effective upon 
Commission approval.
    XVII. Participation in the Group shall be strictly limited to the 
Participants and no other party shall have any right to attend or 
otherwise participate in the Group except with the unanimous approval 
of all Participants. Notwithstanding the foregoing, any national 
securities exchange registered with the SEC under Section 6(a) of the 
Act or any national securities association registered with the SEC 
under section 15A of the Act may become a Participant to this Agreement 
provided that: (i) Such applicant has adopted rules substantially 
similar to the Common Rules, and received approval thereof from the 
SEC; (ii) such applicant has provided each Participant

[[Page 9811]]

with a signed statement whereby the applicant agrees to be bound by the 
terms of this Agreement to the same effect as though it had originally 
signed this Agreement and (iii) an amended agreement reflecting the 
addition of such applicant as a Participant has been filed with and 
approved by the Commission.
    XVIII. This Agreement is wholly separate from the multiparty 
Agreement made pursuant to Rule 17d-2 by and among the NYSE MKT LLC, 
the [BATS]Bats BZX Exchange, Inc., BOX Options Exchange, LLC, the C2 
Options Exchange, Inc., the Chicago Board Options Exchange, Inc., the 
International Securities Exchange, LLC, Financial Industry Regulatory 
Authority, The NASDAQ Stock Market LLC, the New York Stock Exchange, 
LLC, the NYSE Arca, Inc., the NASDAQ [OMX]BX, Inc., the NASDAQ [OMX] 
PHLX LLC, Miami International Securities Exchange, LLC, ISE Gemini, 
LLC, ISE Mercury, LLC, and Bats EDGX Exchange, Inc. involving the 
allocation of regulatory responsibilities with respect to common 
members for compliance with common rules relating to the conduct by 
broker-dealers of accounts for listed options or index warrants entered 
into on [October 8, 2015]February 16, 2016, and as may be amended from 
time to time.
Limitation of Liability
    No Participant nor the Group 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 Regulatory 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 its respective directors, governors, 
officers, employees or representatives. No warranties, express or 
implied, are made by the Participants, individually or as a group, or 
by the OSG with respect to any Regulatory Responsibility to be 
performed hereunder.
Relief From Responsibility
    Pursuant to Section 17(d)(1)(A) of the Exchange Act and Rule 17d-2, 
the Participants join in requesting the Commission, upon its approval 
of this Agreement or any part thereof, to relieve the Participants that 
are party to this Agreement and are not the DOSR as to a Common Member 
of any and all Regulatory Responsibility with respect to the matters 
allocated to the DOSR.
* * * * *

Exhibit A

Options Surveillance Group 17d-2 Agreement

COMMON RULES as of January 23, 2017[29, 2016]

              Violation I--Expiring Exercise Declarations (EED)--for Listed and FLEX Equity Options
----------------------------------------------------------------------------------------------------------------
                SRO                     Description of rule       Exchange rule No.       Frequency of review
----------------------------------------------------------------------------------------------------------------
[BATS]Bats........................  Exercise of Options         Rule 23.1............  At Expiration.
                                     Contracts.
BOX...............................  Exercise of Options         Rule 9000............  At Expiration.
                                     Contracts.
C2................................  Exercise of Options         Rule 11.1............  At Expiration.
                                     Contracts.
CBOE..............................  Exercise of Options         Rule 11.1............  At Expiration.
                                     Contracts.
EDGX..............................  Exercise of Options         Rule 23.1............  At Expiration.
                                     Contracts.
FINRA.............................  Exercise of Options         Rule 2360(b)(23).....  At Expiration.
                                     Contracts.
ISE...............................  Exercise of Options         Rule 1100............  At Expiration.
                                     Contracts.
ISE Gemini........................  Exercise of Options         Rule 1100............  At Expiration.
                                     Contracts.
ISE Mercury.......................  Exercise of Options         Rule 1100............  At Expiration.
                                     Contracts.
MIAX..............................  Exercise of Options         Rule 700.............  At Expiration.
                                     Contracts.
MIAX PEARL........................  Exercise of Options         Rule 700.............  At Expiration.
                                     Contracts.
Nasdaq............................  Exercise of Options         Ch. VIII, Sect.1.....  At Expiration.
                                     Contracts.
Nasdaq [OMX]BX....................  Exercise of Options         Ch. VII, Sect.1......  At Expiration.
                                     Contracts.
Nasdaq [OMX]PHLX..................  Exercise of Equity Options  Rule 1042............  At Expiration.
                                     Contracts.
NYSE Arca.........................  Exercise of Options         Rule 6.24............  At Expiration.
                                     Contracts.
NYSE MKT..........................  Exercise of Options         Rule 980.............  At Expiration.
                                     Contracts.
----------------------------------------------------------------------------------------------------------------


                          Violation II--Position Limits (PL)--for Listed Equity Options
----------------------------------------------------------------------------------------------------------------
                                     Description of rule  (for
                SRO                   review as they apply to     Exchange rule No.       Frequency of review
                                                PL)
----------------------------------------------------------------------------------------------------------------
[BATS]Bats........................  Position Limits...........  Rule 18.7............  Daily.
                                    Exemptions from Position..  Rule 18.8............  As Needed.
                                    Liquidation Positions.....  Rule 18.11...........  As Needed.
BOX...............................  Position Limits...........  Rule 3120............  Daily.
                                    Exemptions from Position    Rule 3130............  As Needed.
                                     Limits.
                                    Liquidation Positions.....  Rule 3160............  As Needed.
C2................................  Position Limits...........  Rule 4.11............  Daily.
                                    Liquidation of Positions..  Rule 4.14............  As Needed.
CBOE..............................  Position Limits...........  Rule 4.11............  Daily.
                                    Liquidation of Positions..  Rule 4.14............  As Needed.
EDGX..............................  Position Limits...........  Rule 18.7............  Daily.
                                    Exemptions from Position..  Rule 18.8............  As Needed.
                                    Liquidation Positions.....  Rule 18.11...........  As Needed.
FINRA.............................  Position Limits...........  Rule 2860(b)(3)......  Daily.
                                    Liquidation of Positions    Rule 2860(b)(6)......  As Needed.
                                     and Restrictions on
                                     Access.
ISE...............................  Position Limits...........  Rule 412.............  Daily.
                                    Exemptions from Position    Rule 413.............  As Needed.
                                     Limits.
                                    Liquidating Positions.....  Rule 416.............  As Needed.

[[Page 9812]]

 
ISE Gemini........................  Position Limits...........  Rule 412.............  Daily.
                                    Exemptions from Position    Rule 413.............  As Needed.
                                     Limits.
                                    Liquidating Positions.....  Rule 416.............  As Needed.
ISE Mercury.......................  Position Limits...........  Rule 412.............  Daily.
                                    Exemptions from Position    Rule 413.............  As Needed.
                                     Limits.
                                    Liquidating Positions.....  Rule 416.............  As Needed.
MIAX..............................  Position Limits...........  Rule 307.............  Daily.
                                    Exemptions from Position    Rule 308.............  As Needed.
                                     Limits.
                                    Liquidating Positions.....  Rule 311.............  As Needed.
MIAX Pearl........................  Position Limits...........  Rule 307.............  Daily.
                                    Exemptions from Position    Rule 308.............  As Needed.
                                     Limits.
                                    Liquidating Positions.....  Rule 311.............  As Needed.
Nasdaq............................  Position Limits...........  Ch. III, Sect. 7.....  Daily.
                                    Exemptions from Position    Ch. III, Sect. 8.....  As Needed.
                                     Limits.
                                    Liquidating Positions.....  Ch. III, Sect. 11....  As Needed.
Nasdaq [OMX]BX....................  Position Limits...........  Ch. III, Sect. 7.....  Daily.
                                    Exemptions from Position    Ch. III, Sect. 8.....  As Needed.
                                     Limits.
                                    Liquidating Positions.....  Ch. III, Sect. 11....  As Needed.
Nasdaq [OMX]PHLX..................  Position Limits...........  Rule 1001............  Daily.
                                    Liquidation of Position...  Rule 1004............  As Needed.
NYSE Arca.........................  Position Limits...........  Rule 6.8.............  Daily.
                                    Liquidation of Position...  Rule 6.7.............  As Needed.
NYSE MKT..........................  Position Limits...........  Rule 904.............  Daily.
                                    Liquidating Positions.....  Rule 907.............  As Needed.
----------------------------------------------------------------------------------------------------------------


     Violation III--Large Options Position Report (LOPR)--for Listed and FLEX Equity Options and ETF Options
----------------------------------------------------------------------------------------------------------------
                                     Description of rule  (for
                SRO                   review as they apply to     Exchange rule No.       Frequency of review
                                               LOPR)
----------------------------------------------------------------------------------------------------------------
[BATS]Bats........................  Reports Related to          Rule 18.10...........  Yearly.
                                     Position Limits.
BOX...............................  Reports Related to          Rule 3150............  Yearly.
                                     Position Limits.
C2................................  Reports Related to          Rule 4.13(a).........  Yearly.
                                     Position Limits.
                                    Reports Related to          Rule 4.13(b).........  Yearly.
                                     Position Limits.
                                    Reports Related to          Rule 4.13(d).........  Yearly.
                                     Position Limits.
CBOE..............................  Reports Related to          Rule 4.13(a).........  Yearly.
                                     Position Limits.
                                    Reports Related to          Rule 4.13(b).........  Yearly.
                                     Position Limits.
                                    Reports Related to          Rule 4.13(d).........  Yearly.
                                     Position Limits.
EDGX..............................  Reports Related to          Rule 18.10...........  Yearly.
                                     Position Limits.
FINRA.............................  Options...................  Rule 2360(b)(5)......  Yearly.
ISE...............................  Reports Related to          Rule 415.............  Yearly.
                                     Position Limits.
ISE Gemini........................  Reports Related to          Rule 415.............  Yearly.
                                     Position Limits.
ISE Mercury.......................  Reports Related to          Rule 415.............  Yearly.
                                     Position Limits.
MIAX..............................  Reports Related to          Rule 310.............  Yearly.
                                     Position Limits.
MIAX PEARL........................  Reports Related to          Rule 310.............  Yearly.
                                     Position Limits.
Nasdaq............................  Reports Related to          Ch. III, Sect. 10....  Yearly.
                                     Position Limits.
Nasdaq [OMX]BX....................  Reports Related to          Ch. III, Sect. 10....  Yearly.
                                     Position Limits.
Nasdaq [OMX]PHLX..................  Reporting of Options        Rule 1003............  Yearly.
                                     Positions.
NYSE Arca.........................  Reporting of Options        Rule 6.6.............  Yearly.
                                     Positions.
NYSE MKT..........................  Reporting of Options        Rule 906.............  Yearly.
                                     Positions.
----------------------------------------------------------------------------------------------------------------


                       Violation IV: Options Clearing Corporation (OCC) Adjustment Process
----------------------------------------------------------------------------------------------------------------
                                     Description of rule  (as
                                         they apply to OCC
                SRO                     Adjustments/By-laws       Exchange rule No.       Frequency of review
                                    Article V, Section 1.01(a)
                                             and .02))
----------------------------------------------------------------------------------------------------------------
[BATS]Bats........................  Adherence to Law..........  Rule 18.1............  Yearly.
BOX...............................  Adherence to Law..........  Rule 3010............  Yearly.
C2................................  Adherence to Law..........  Rule 4.2.............  Yearly.
CBOE..............................  Adherence to Law..........  Rule 4.2.............  Yearly.
EDGX..............................  Adherence to Law..........  Rule 18.1............  Yearly.
FINRA.............................  Violation of By-Laws and    Rule 2360(b)(21).....  Yearly.
                                     Rules of FINRA or The OCC.
ISE...............................  Adherence to Law..........  Rule 401.............  Yearly.
ISE Gemini........................  Adherence to Law..........  Rule 401.............  Yearly.
ISE Mercury.......................  Adherence to Law..........  Rule 401.............  Yearly.
MIAX..............................  Adherence to Law..........  Rule 300.............  Yearly.
MIAX PEARL........................  Adherence to Law..........  Rule 300.............  Yearly.
Nasdaq............................  Adherence to Law..........  Ch. III, Sect. 1.....  Yearly.
Nasdaq [OMX]BX....................  Adherence to Law..........  Ch. III, Sect. 1.....  Yearly.

[[Page 9813]]

 
Nasdaq [OMX]PHLX..................  Violation of By-Laws and    Rule 1050............  Yearly.
                                     Rules of OCC.
NYSE Arca.........................  Adherence to Law and Good   Rule 11.1............  Yearly.
                                     Business Practice.
NYSE MKT..........................  Business Conduct..........  Rule 16..............  Yearly.
----------------------------------------------------------------------------------------------------------------

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 4-551 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 4-551. 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 MKT, Bats, C2, CBOE, EDGX, Gemini, 
ISE, ISE Mercury, FINRA, Arca, NASDAQ, BOX, BX, Phlx, MIAX, 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 4-551 
and should be submitted on or before March 1, 2017.

V. Discussion

    The Commission continues to believe that the Plan, as proposed to 
be amended, 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 market surveillance 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.\20\ In 
addition, the Commission notes that the prior version of this Plan was 
published for comment, and the Commission did not receive any comments 
thereon.\21\ Finally, the Commission does not believe that the 
amendment to the Plan raises any new regulatory issues that the 
Commission has not previously considered.
---------------------------------------------------------------------------

    \20\ 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).
    \21\ See Securities Exchange Act Release No. 77149 (February 16, 
2016), 81 FR 8781 (February 22, 2016) (File No. 4-551).
---------------------------------------------------------------------------

VI. Conclusion

    This order gives effect to the amended Plan submitted to the 
Commission that is contained in File No. 4-551.
    It is therefore ordered, pursuant to Section 17(d) of the Act, that 
the Plan, as amended by and between MKT, Bats, C2, CBOE, EDGX, Gemini, 
ISE, ISE Mercury, FINRA, Arca, NASDAQ, BOX, BX, Phlx, MIAX, and MIAX 
PEARL filed with the Commission pursuant to Rule 17d-2 on January 31, 
2017 is hereby approved and declared effective.
    It is further ordered that those SRO participants that are not the 
DOSR as to a particular common member are relieved of those regulatory 
responsibilities allocated to the common member's DOSR under the 
amended Plan to the extent of such allocation.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
---------------------------------------------------------------------------

    \22\ 17 CFR 200.30-3(a)(34).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-02548 Filed 2-7-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                               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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                                                    9808                       Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

                                                    and the Boston Stock Exchange, Inc. to                  follows (additions are italicized;                    ‘‘Participants’’ and individually, each a
                                                    the NASDAQ OMX BX, Inc.14 On May                        deletions are [bracketed]):                           ‘‘Participant.’’ This Agreement shall be
                                                    11, 2012, the Commission approved an                    *     *    *     *     *                              administered by a committee known as
                                                    amendment to the Plan to add BOX as                                                                           the Options Surveillance Group (the
                                                    a participant to the Plan.15 On December                AGREEMENT BY AND AMONG NYSE                           ‘‘OSG’’ or ‘‘Group’’), as described in
                                                    5, 2012, the Commission approved an                     MKT LLC, BATSBZX EXCHANGE, INC.,                      Section V hereof. Unless defined in this
                                                    amendment to the Plan to add MIAX as                    EDGX EXCHANGE INC., BOX OPTIONS                       Agreement or the context otherwise
                                                    a participant to the Plan.16 On July 26,                EXCHANGE LLC, NASDAQ[OMX] BX,                         requires, the terms used herein shall
                                                    2013, the Commission approved an                        INC., C2 OPTIONS EXCHANGE,                            have the meanings assigned thereto by
                                                    amendment to the Plan to add Topaz                      INCORPORATED, THE CHICAGO                             the Exchange Act and the rules and
                                                    Exchange, LLC as a Participant to the                   BOARD OPTIONS EXCHANGE,                               regulations thereunder.
                                                    Plan.17 On October 29, 2015, the                        INCORPORATED, THE                                        Whereas, the Participants desire to
                                                    Commission approved an amendment to                     INTERNATIONAL SECURITIES                              eliminate regulatory duplication with
                                                    add EDGX as a Participant to the Plan                   EXCHANGE, LLC, ISE GEMINI, LLC,                       respect to SRO market surveillance of
                                                    and to change the name of Topaz                         ISE MERCURY, LLC, FINANCIAL                           Common Member 1 activities with
                                                                                                            INDUSTRY REGULATORY                                   regard to certain common rules relating
                                                    Exchange, LLC to ISE Gemini, LLC.18
                                                                                                            AUTHORITY, INC., NYSE ARCA, INC.,                     to listed options (‘‘Options’’); and
                                                    On February 16, 2016, the Commission
                                                                                                            THE NASDAQ STOCK MARKET LLC,                             Whereas, for this purpose, the
                                                    approved an amendment to add ISE
                                                                                                            NASDAQ [OMX]PHLX [INC]LLC,                            Participants desire to execute and file
                                                    Mercury, LLC as a Participant to the
                                                                                                            MIAMI INTERNATIONAL SECURITIES                        this Agreement with the Securities and
                                                    Plan.19
                                                                                                            EXCHANGE, LLC, AND MIAX PEARL,                        Exchange Commission (the ‘‘SEC’’ or
                                                       The Plan is designed to reduce                       LLC PURSUANT TO RULE 17d–2                            ‘‘Commission’’) pursuant to Rule 17d–2.
                                                    regulatory duplication for common                       UNDER THE SECURITIES EXCHANGE                            Now, therefore, in consideration of
                                                    members by allocating regulatory                        ACT OF 1934                                           the mutual covenants contained in this
                                                    responsibility for certain options-related                                                                    Agreement, the Participants agree as
                                                    market surveillance matters among the                      This agreement (this ‘‘Agreement’’),               follows:
                                                    Participating Organizations. Generally,                 by and among NYSE MKT LLC                                I. Except as otherwise provided in this
                                                    under the Plan, a Participating                         (‘‘MKT’’), [BATS]Bats BZX Exchange,                   Agreement, each Participant shall
                                                    Organization will serve as the                          Inc., (‘‘Bats[ATS]’’), the Bats EDGX                  assume Regulatory Responsibility (as
                                                    Designated Options Surveillance                         Exchange, Inc. (‘‘EDGX’’), the C2                     defined below) for the Common
                                                    Regulator (‘‘DOSR’’) for each common                    Options Exchange, Incorporated (‘‘C2’’),              Members that are allocated or assigned
                                                    member assigned to it and will assume                   the Chicago Board Options Exchange,                   to such Participant in accordance with
                                                    regulatory responsibility with respect to               Incorporated (‘‘CBOE’’), the                          the terms of this Agreement and shall be
                                                    that common member’s compliance                         International Securities Exchange, LLC                relieved of its Regulatory Responsibility
                                                    with applicable common rules for                        (‘‘ISE’’), Financial Industry Regulatory              as to the remaining Common Members.
                                                                                                            Authority, Inc. (‘‘FINRA’’), NYSE Arca,               For purposes of this Agreement, a
                                                    certain accounts. When an SRO has
                                                                                                            Inc. (‘‘Arca’’), The NASDAQ Stock                     Participant shall be considered to be the
                                                    been named as a common member’s
                                                                                                            Market LLC (‘‘Nasdaq’’), BOX Options                  Designated Options Surveillance
                                                    DOSR, all other SROs to which the
                                                                                                            Exchange LLC (‘‘BOX’’), NASDAQ                        Regulator (‘‘DOSR’’) for each Common
                                                    common member belongs will be
                                                                                                            [OMX]BX, Inc. (‘‘BX’’), NASDAQ                        Member that is allocated to it in
                                                    relieved of regulatory responsibility for
                                                                                                            [OMX]PHLX [Inc.]LLC (‘‘PHLX’’), Miami                 accordance with Section VII.
                                                    that common member, pursuant to the
                                                                                                            International Securities Exchange, LLC                   II. As used in this Agreement, the
                                                    terms of the Plan, with respect to the
                                                                                                            (‘‘MIAX’’), ISE Gemini, LLC (‘‘Gemini’’),             term ‘‘Regulatory Responsibility’’ shall
                                                    applicable common rules specified in
                                                                                                            [and]ISE Mercury, LLC (‘‘Mercury’’),                  mean surveillance, investigation and
                                                    Exhibit A to the Plan.
                                                                                                            and MIAX PEARL, LLC (‘‘MIAX                           enforcement responsibilities relating to
                                                    III. Proposed Amendment to the Plan                     PEARL’’), is made this 10th day of                    compliance by the Common Members
                                                                                                            October 2007, and as amended the 31st                 with such Options rules of the
                                                      On January 31, 2017, the parties                      day of March 2008, the 1st day of                     Participants as the Participants shall
                                                    submitted a proposed amendment to the                   October 2008, the 3rd day of February                 determine are substantially similar and
                                                    Plan. The primary purpose of the                        2010, the 25th day of April 2012, and                 shall approve from time to time, insofar
                                                    amendment is to add MIAX PEARL as                       the 19th day of November 2012, and the                as such rules relate to market
                                                    a Participant to the Plan. The text of the              30th day of May 2013, and the 16th day                surveillance (collectively, the ‘‘Common
                                                    proposed amended 17d–2 plan is as                       of October 2015, and the 29th day of                  Rules’’). For the purposes of this
                                                                                                            January 2016, and the 23rd day of                     Agreement the list of Common Rules is
                                                       14 See Securities Exchange Act Release No. 61588
                                                                                                            January 2017, pursuant to Section 17(d)               attached as Exhibit A hereto, which may
                                                    (February 25, 2010), 75 FR 9970 (March 4, 2010)         of the Securities Exchange Act of 1934,               only be amended upon unanimous
                                                    (File No. 4–551).
                                                       15 See Securities Exchange Act Release No. 66975     as amended (the ‘‘Exchange Act’’), and                written agreement by the Participants.
                                                    (May 11, 2012), 77 FR 29712 (May 18, 2010) (File        Rule 17d–2 thereunder (‘‘Rule 17d–2’’),               The DOSR assigned to each Common
                                                    No. 4–551).                                             which allows for a joint plan among                   Member shall assume Regulatory
                                                       16 See Securities Exchange Act Release No. 68362
                                                                                                            self-regulatory organizations (‘‘SROs’’)              Responsibility with regard to that
                                                    (December 5, 2012), 77 FR 73719 (December 11,           to allocate regulatory obligations with               Common Member’s compliance with the
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                                                    2012) (File No. 4–551).
                                                       17 See Securities Exchange Act Release No. 70052     respect to brokers or dealers that are                applicable Common Rules for certain
                                                    (July 26, 2013), 78 FR 46665 (August 1, 2013) (File     members of two or more of the parties                 accounts.2 A DOSR may perform its
                                                    No. 4–551).                                             to this Agreement (‘‘Common
                                                       18 See Securities Exchange Act Release No. 76310
                                                                                                            Members’’). MKT, Bats[ATS], C2, CBOE,                   1 In the case of the BX and BOX, members are

                                                    (October 29, 2015), 80 FR 68354 (November 4, 2015)      EDGX, ISE Gemini, ISE, ISE Mercury,                   those persons who are Options Participants (as
                                                    (File No. 4–551).                                                                                             defined in the BOX Options Exchange LLC Rules
                                                       19 See Securities Exchange Act Release No. 77149     FINRA, Arca, Nasdaq, BOX, BX, PHLX,                   and NASDAQ [OMX] BX, Inc. Rules).
                                                    (February 16, 2016), 81 FR 8781 (February 22, 2016)     [and]MIAX, and MIAX PEARL are                           2 Certain accounts shall include customer (‘‘C’’ as

                                                    (File No. 4–551).                                       collectively referred to herein as the                classified by the Options Clearing Corporation



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                                                                               Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices                                            9809

                                                    Regulatory Responsibility or enter an                   rules of a Participant, each Participant              otherwise required, the affirmative vote
                                                    agreement to transfer or assign such                    shall submit to the other Participants,               of a majority of the Representatives
                                                    responsibilities to a national securities               through the Chair of the OSG, an                      present (in person, by telephone or by
                                                    exchange registered with the SEC under                  updated list of Common Rules for                      written consent) shall be necessary to
                                                    Section 6(a) of the Exchange Act or a                   review. This updated list may add                     constitute action by the Group. The
                                                    national securities association registered              Common Rules to Exhibit A, shall delete               Group will have a Chair, Vice Chair and
                                                    with the SEC under Section 15A of the                   from Exhibit A rules of that Participant              Secretary. A different Participant will
                                                    Exchange Act. A DOSR may not transfer                   that are no longer identical or                       assume each position on a rotating basis
                                                    or assign its Regulatory Responsibility                 substantially similar to the Common                   for a one-year term. In the event that a
                                                    to an association registered for the                    Rules, and shall confirm that the                     Participant replaces a Representative
                                                    limited purpose of regulating the                       remaining rules of the Participant                    who is acting as Chair, Vice Chair or
                                                    activities of members who are registered                included on Exhibit A continue to be                  Secretary, the newly appointed
                                                    as brokers or dealers in security futures               identically or substantially similar to               Representative shall assume the
                                                    products.                                               the Common Rules. Within 30 days                      position of Chair, Vice Chair, or
                                                       The term ‘‘Regulatory Responsibility’’               from the date that each Participant has               Secretary (as applicable) vacated by the
                                                    does not include, and each Participant                  received revisions to Exhibit A from the              Participant’s former Representative. In
                                                    shall retain full responsibility with                   Chair of the OSG, each Participant shall              the event a Participant cannot fulfill its
                                                    respect to:                                             confirm in writing to the Chair of the                duties as Chair, the Participant serving
                                                       (a) Surveillance, investigative and                  OSG whether that Participant’s rules                  as Vice Chair shall substitute for the
                                                    enforcement responsibilities other than                 listed in Exhibit A are Common Rules.                 Chair and complete the subject
                                                    those included in the definition of                        IV. Apparent violation of another                  unfulfilled term. All notices and other
                                                    Regulatory Responsibility;                              Participant’s rules discovered by a                   communications for the OSG are to be
                                                       (b) any aspects of the rules of a                    DOSR, but which rules are not within                  sent in care of the Chair and, as
                                                    Participant that are not substantially                  the scope of the discovering DOSR’s                   appropriate, to each Representative.
                                                    similar to the Common Rules or that are                 Regulatory Responsibility, shall be                      VI. The OSG shall determine the
                                                    allocated for a separate surveillance                   referred to the relevant Participant for              times and locations of Group meetings,
                                                    purpose under any other agreement                       such action as is deemed appropriate by               provided that the Chair, acting alone,
                                                    made pursuant to Rule 17d–2. Any such                   that Participant. Notwithstanding the                 may also call a meeting of the Group in
                                                    aspects of a Common Rule will be noted                  foregoing, nothing contained herein                   the event the Chair determines that
                                                    as excluded on Exhibit A. With respect                  shall preclude a DOSR in its discretion               there is good cause to do so. To the
                                                    to options position limits, the term                    from requesting that another Participant              extent reasonably possible, notice of any
                                                    Regulatory Responsibility shall include                 conduct an investigative or enforcement               meeting shall be given at least ten
                                                    examination responsibilities for the                    proceeding (‘‘Proceeding’’) on a matter               business days prior to the meeting date.
                                                    delta hedging exemption. Specifically,                  for which the requesting DOSR has                     Representatives shall always be given
                                                    the Participants intend that FINRA will                 Regulatory Responsibility. If such other              the option of participating in any
                                                    conduct examinations for delta hedging                  Participant agrees, the Regulatory                    meeting telephonically at their own
                                                    for all Common Members that are                         Responsibility in such case shall be                  expense rather than in person.
                                                    members of FINRA notwithstanding the                    deemed transferred to the accepting                      VII. No less frequently than every two
                                                    fact that FINRA’s position limit rule is,               Participant and confirmed in writing by               years, in such manner as the Group
                                                    in some cases, limited to only firms that               the Participants involved. Additionally,              deems appropriate, the OSG shall
                                                    are not members of an options exchange                  nothing in this Agreement shall prevent               allocate Common Members that conduct
                                                    (i.e., access members). In such cases,                  another Participant on whose market                   an Options business among the
                                                    FINRA’s examinations for delta hedging                  potential violative activity took place               Participants (‘‘Allocation’’), and the
                                                    options position limit violations will be               from conducting its own Proceeding on                 Participant to which a Common Member
                                                                                                            a matter. The Participant conducting the              is allocated will serve as the DOSR for
                                                    for the identical or substantively similar
                                                                                                            Proceeding shall advise the assigned                  that Common Member. Any Allocation
                                                    position limit rule(s) of the other
                                                                                                            DOSR. Each Participant agrees, upon                   shall be based on the following
                                                    Participant(s). Examinations for delta
                                                                                                            request, to make available promptly all               principles, except to the extent all
                                                    hedging for Common Members that are
                                                                                                            relevant files, records and/or witnesses              affected Participants consent to one or
                                                    non-FINRA members will be conducted
                                                                                                            necessary to assist another Participant               more different principles:
                                                    by the same Participant conducting                                                                               (a) The OSG may not allocate a
                                                    position limit surveillance. The                        in a Proceeding.
                                                                                                               V. The OSG shall be composed of one                Common Member to a Participant
                                                    allocation of Common Members to                                                                               unless the Common Member is a
                                                    DOSRs for surveillance of compliance                    representative designated by each of the
                                                                                                            Participants (a ‘‘Representative’’). Each             member of that Participant.
                                                    with options position limits and other                                                                           (b) To the extent practicable, Common
                                                    agreed to Common Rules is provided in                   Participant shall also designate one or
                                                                                                            more persons as its alternate                         Members that conduct an Options
                                                    Exhibit B. The allocation of Common                                                                           business shall be allocated among the
                                                    Members to DOSRs for examinations of                    representative(s) (an ‘‘Alternate
                                                                                                            Representative’’). In the absence of the              Participants of which they are members
                                                    the delta hedging exemption under the                                                                         in such manner as to equalize as nearly
                                                    options position limits rules is provided               Representative, the Alternate
                                                                                                            Representative shall assume the powers,               as possible the allocation among such
                                                    in Exhibit C.                                                                                                 Participants, provided that no Common
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                                                       III. Each year within 30 days of the                 duties and responsibilities of the
                                                                                                            Representative. Each Participant may at               Members shall be allocated to FINRA.
                                                    anniversary date of the commencement                                                                          For example, if sixteen Common
                                                    of operation of this Agreement, or more                 any time replace its Representative and/
                                                                                                            or its Alternate Representative to the                Members that conduct an Options
                                                    frequently if required by changes in the                                                                      business are members only of three
                                                                                                            Group.3 A majority of the OSG shall
                                                                                                            constitute a quorum and, unless                       Participants, none of which is FINRA,
                                                    (‘‘OCC’’)) and firm (‘‘F’’ as classified by OCC)
                                                    accounts, as well as other accounts, such as market
                                                                                                                                                                  those Common Members shall be
                                                    maker accounts as the Participants shall, from time       3 A Participant must give notice to the Chair of    allocated among the three Participants
                                                    to time, identify as appropriate to review.             the Group of such a change.                           such that no Participant is allocated


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                                                    9810                       Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

                                                    more than six such members and no                       each Common Member allocated to it                       XIII. The Participants shall notify the
                                                    Participant is allocated less than five                 with a frequency (daily, weekly,                      Common Members of this Agreement by
                                                    such members. If, in the previous                       monthly, quarterly, semi-annually or                  means of a uniform joint notice
                                                    example, one of the three Participants is               annually as noted on Exhibit A) not less              approved by the Group. Each
                                                    FINRA, the sixteen Common Members                       than that determined by the Group. The                Participant will notify the Common
                                                    would be allocated evenly between the                   other Participants agree that, upon                   Members that have been allocated to it
                                                    remaining Participants, so that the two                 request, relevant information in their                that such Participant will serve as DOSR
                                                    non-FINRA Participants would be                         respective files relative to a Common                 for that Common Member.
                                                    allocated eight Common Members each.                    Member will be made available to the                     XIV. This Agreement shall be effective
                                                       (c) To the extent practicable,                       applicable DOSR. In addition, each                    upon approval of the Commission. This
                                                    Allocation shall take into account the                  Participant shall provide, to the extent              Agreement may only be amended in
                                                    amount of Options activity conducted                    not otherwise already provided,                       writing duly approved by each
                                                    by each Common Member in order to                       information pertaining to its                         Participant. All amendments to this
                                                    most evenly divide the Common                           surveillance program that would be                    Agreement, excluding changes to
                                                    Members with the largest amount of                      relevant to FINRA or the Participant(s)               Exhibits A, B and C, must be filed with
                                                    activity among the Participants of which                conducting routine examinations for the               and approved by the Commission.
                                                    they are members. Allocation will also                  delta hedging exemption.                                 XV. Any Participant may manifest its
                                                    take into account similar allocations                      At each meeting of the OSG, each                   intention to cancel its participation in
                                                    pursuant to other plans or agreements to                Participant shall be prepared to report               this Agreement at any time upon
                                                    which the Common Members are party                      on the status of its surveillance program             providing written notice to (i) the Group
                                                    to maintain consistency in oversight of                 for the previous quarter and any period               six months prior to the date of such
                                                    the Common Members.4                                    prior thereto that has not previously                 cancellation, or such other period as all
                                                       (d) To the extent practicable,                       been reported to the Group. In the event              the Participants may agree, and (ii) the
                                                    Allocation of Common Members to                         a DOSR believes it will not be able to                Commission. Upon receipt of the notice
                                                    Participants will be rotated among the                  complete its Regulatory Responsibility                the Group shall allocate, in accordance
                                                    applicable Participants such that a                     for its allocated Common Members, it                  with the provisions of this Agreement,
                                                    Common Member shall not be allocated                    will so advise the Group in writing                   those Common Members for which the
                                                    to a Participant to which that Common                                                                         canceling Participant was the DOSR.
                                                                                                            promptly. The Group will undertake to
                                                    Member was allocated within the                                                                               The canceling Participant shall retain its
                                                                                                            remedy this situation by reallocating the
                                                    previous two years. The assignment of                                                                         Regulatory Responsibility and other
                                                                                                            subject Common Members among the
                                                    DOSRs pursuant to the Allocation is                                                                           rights, privileges and duties pursuant to
                                                                                                            remaining Participants. In such
                                                    attached as Exhibit B hereto, and will be                                                                     this Agreement until the Group has
                                                                                                            instance, the Group may determine to
                                                    updated from time to time to reflect                                                                          completed the reallocation as described
                                                                                                            impose a regulatory fee for services
                                                    Common Member Allocation changes.                                                                             above, and the Commission has
                                                       (e) The Group may reallocate                         provided to the DOSR that was unable
                                                                                                                                                                  approved the cancellation.
                                                    Common Members from time-to-time, as                    to fulfill its Regulatory Responsibility.                XVI. The cancellation of its
                                                    it deems appropriate.                                      IX. Each Participant will, upon                    participation in this Agreement by any
                                                       (f) Whenever a Common Member                         request, promptly furnish a copy of the               Participant shall not terminate this
                                                    ceases to be a member of its DOSR, the                  report or applicable portions thereof                 Agreement as to the remaining
                                                    DOSR shall promptly inform the Group,                   relating to any investigation made                    Participants. This Agreement will only
                                                    which shall review the matter and                       pursuant to the provisions of this                    terminate following notice to the
                                                    allocate the Common Member to                           Agreement to each other Participant of                Commission, in writing, by the then
                                                    another Participant.                                    which the Common Member under                         Participants that they intend to
                                                       (g) A DOSR may request that a                        investigation is a member.                            terminate the Agreement and the
                                                    Common Member to which it is                               X. Each Participant will routinely                 expiration of the applicable notice
                                                    assigned be reallocated to another                      populate a common database, to be                     period. Such notice shall be given at
                                                    Participant by giving 30 days written                   accessed by the Group relating to any                 least six months prior to the intended
                                                    notice to the Chair of the OSG. The                     formal regulatory action taken during                 date of termination, or such other period
                                                    Group, in its discretion, may approve                   the course of a Proceeding with respect               as all the Participants may agree. Such
                                                    such request and reallocate the Common                  to the Common Rules concerning a                      termination will become effective upon
                                                    Member to another Participant.                          Common Member.                                        Commission approval.
                                                       (h) All determinations by the Group                     XI. Any written notice required or                    XVII. Participation in the Group shall
                                                    with respect to Allocation shall be made                permitted to be given under this                      be strictly limited to the Participants
                                                    by the affirmative vote of a majority of                Agreement shall be deemed given if sent               and no other party shall have any right
                                                    the Participants that, at the time of such              by certified mail, return receipt                     to attend or otherwise participate in the
                                                    determination, share the applicable                     requested, to any Participant to the                  Group except with the unanimous
                                                    Common Member being allocated; a                        attention of that Participant’s                       approval of all Participants.
                                                    Participant shall not be entitled to vote               Representative, to the Participant’s                  Notwithstanding the foregoing, any
                                                    on any Allocation relating to a Common                  principal place of business or by email               national securities exchange registered
                                                    Member unless the Common Member is                      at such address as the Representative                 with the SEC under Section 6(a) of the
                                                    a member of such Participant.                           shall have filed in writing with the                  Act or any national securities
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                                                       VIII. Each DOSR shall conduct routine                Chair.                                                association registered with the SEC
                                                    surveillance reviews to detect violations                  XII. The costs incurred by each                    under section 15A of the Act may
                                                    of the applicable Common Rules by                       Participant in discharging its Regulatory             become a Participant to this Agreement
                                                                                                            Responsibility under this Agreement are               provided that: (i) Such applicant has
                                                      4 For example, if one Participant was allocated a
                                                                                                            not reimbursable. However, any of the                 adopted rules substantially similar to
                                                    Common Member by another regulatory group that
                                                    Participant would be assigned to be the DOSR of
                                                                                                            Participants may agree that one or more               the Common Rules, and received
                                                    that Common Member, unless there is good cause          will compensate the other(s) for costs                approval thereof from the SEC; (ii) such
                                                    not to make that assignment.                            incurred.                                             applicant has provided each Participant


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                                                                                         Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices                                                                                        9811

                                                    with a signed statement whereby the                                      of regulatory responsibilities with                                    directors, governors, officers, employees
                                                    applicant agrees to be bound by the                                      respect to common members for                                          or representatives. No warranties,
                                                    terms of this Agreement to the same                                      compliance with common rules relating                                  express or implied, are made by the
                                                    effect as though it had originally signed                                to the conduct by broker-dealers of                                    Participants, individually or as a group,
                                                    this Agreement and (iii) an amended                                      accounts for listed options or index                                   or by the OSG with respect to any
                                                    agreement reflecting the addition of                                     warrants entered into on [October 8,                                   Regulatory Responsibility to be
                                                    such applicant as a Participant has been                                 2015]February 16, 2016, and as may be                                  performed hereunder.
                                                    filed with and approved by the                                           amended from time to time.
                                                    Commission.                                                                                                                                     Relief From Responsibility
                                                       XVIII. This Agreement is wholly                                       Limitation of Liability
                                                                                                                                                                                                      Pursuant to Section 17(d)(1)(A) of the
                                                    separate from the multiparty Agreement                                     No Participant nor the Group nor any                                 Exchange Act and Rule 17d–2, the
                                                    made pursuant to Rule 17d–2 by and                                       of their respective directors, governors,                              Participants join in requesting the
                                                    among the NYSE MKT LLC, the                                              officers, employees or representatives                                 Commission, upon its approval of this
                                                    [BATS]Bats BZX Exchange, Inc., BOX                                       shall be liable to any other Participant                               Agreement or any part thereof, to relieve
                                                    Options Exchange, LLC, the C2 Options                                    in this Agreement for any liability, loss                              the Participants that are party to this
                                                    Exchange, Inc., the Chicago Board                                        or damage resulting from or claimed to                                 Agreement and are not the DOSR as to
                                                    Options Exchange, Inc., the                                              have resulted from any delays,                                         a Common Member of any and all
                                                    International Securities Exchange, LLC,                                  inaccuracies, errors or omissions with                                 Regulatory Responsibility with respect
                                                    Financial Industry Regulatory                                            respect to the provision of Regulatory                                 to the matters allocated to the DOSR.
                                                    Authority, The NASDAQ Stock Market                                       Responsibility as provided hereby or for
                                                    LLC, the New York Stock Exchange,                                        the failure to provide any such                                        *     *     *     *    *
                                                    LLC, the NYSE Arca, Inc., the NASDAQ                                     Regulatory Responsibility, except with                                 Exhibit A
                                                    [OMX]BX, Inc., the NASDAQ [OMX]                                          respect to such liability, loss or damages
                                                    PHLX LLC, Miami International                                            as shall have been suffered by one or                                  Options Surveillance Group 17d–2
                                                    Securities Exchange, LLC, ISE Gemini,                                    more of the Participants and caused by                                 Agreement
                                                    LLC, ISE Mercury, LLC, and Bats EDGX                                     the willful misconduct of one or more                                  COMMON RULES as of January 23,
                                                    Exchange, Inc. involving the allocation                                  of the other Participants or its respective                            2017[29, 2016]

                                                                        VIOLATION I—EXPIRING EXERCISE DECLARATIONS (EED)—FOR LISTED AND FLEX EQUITY OPTIONS
                                                                                                                                                                                                                                                    Frequency
                                                                       SRO                                                          Description of rule                                                 Exchange rule No.                            of review

                                                    [BATS]Bats ..............................         Exercise     of   Options Contracts ...............................................        Rule 23.1 ...............................     At   Expiration.
                                                    BOX .........................................     Exercise     of   Options Contracts ...............................................        Rule 9000 ..............................      At   Expiration.
                                                    C2 ............................................   Exercise     of   Options Contracts ...............................................        Rule 11.1 ...............................     At   Expiration.
                                                    CBOE ......................................       Exercise     of   Options Contracts ...............................................        Rule 11.1 ...............................     At   Expiration.
                                                    EDGX ......................................       Exercise     of   Options Contracts ...............................................        Rule 23.1 ...............................     At   Expiration.
                                                    FINRA ......................................      Exercise     of   Options Contracts ...............................................        Rule 2360(b)(23) ....................         At   Expiration.
                                                    ISE ...........................................   Exercise     of   Options Contracts ...............................................        Rule 1100 ..............................      At   Expiration.
                                                    ISE Gemini ..............................         Exercise     of   Options Contracts ...............................................        Rule 1100 ..............................      At   Expiration.
                                                    ISE Mercury ............................          Exercise     of   Options Contracts ...............................................        Rule 1100 ..............................      At   Expiration.
                                                    MIAX ........................................     Exercise     of   Options Contracts ...............................................        Rule 700 ................................     At   Expiration.
                                                    MIAX PEARL ...........................            Exercise     of   Options Contracts ...............................................        Rule 700 ................................     At   Expiration.
                                                    Nasdaq ....................................       Exercise     of   Options Contracts ...............................................        Ch. VIII, Sect.1 ......................       At   Expiration.
                                                    Nasdaq [OMX]BX ....................               Exercise     of   Options Contracts ...............................................        Ch. VII, Sect.1 .......................       At   Expiration.
                                                    Nasdaq [OMX]PHLX ...............                  Exercise     of   Equity Options Contracts ....................................            Rule 1042 ..............................      At   Expiration.
                                                    NYSE Arca ..............................          Exercise     of   Options Contracts ...............................................        Rule 6.24 ...............................     At   Expiration.
                                                    NYSE MKT ..............................           Exercise     of   Options Contracts ...............................................        Rule 980 ................................     At   Expiration.


                                                                                                      VIOLATION II—POSITION LIMITS (PL)—FOR LISTED EQUITY OPTIONS
                                                                                                                                   Description of rule                                                                                              Frequency
                                                                       SRO                                                                                                                              Exchange rule No.
                                                                                                                           (for review as they apply to PL)                                                                                          of review

                                                    [BATS]Bats ..............................         Position Limits ........................................................................   Rule   18.7 ...............................   Daily.
                                                                                                      Exemptions from Position ......................................................            Rule   18.8 ...............................   As Needed.
                                                                                                      Liquidation Positions ..............................................................       Rule   18.11 .............................    As Needed.
                                                    BOX .........................................     Position Limits ........................................................................   Rule   3120 ..............................    Daily.
                                                                                                      Exemptions from Position Limits ............................................               Rule   3130 ..............................    As Needed.
                                                                                                      Liquidation Positions ..............................................................       Rule   3160 ..............................    As Needed.
                                                    C2 ............................................   Position Limits ........................................................................   Rule   4.11 ...............................   Daily.
                                                                                                      Liquidation of Positions ..........................................................        Rule   4.14 ...............................   As Needed.
                                                    CBOE ......................................       Position Limits ........................................................................   Rule   4.11 ...............................   Daily.
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                      Liquidation of Positions ..........................................................        Rule   4.14 ...............................   As Needed.
                                                    EDGX ......................................       Position Limits ........................................................................   Rule   18.7 ...............................   Daily.
                                                                                                      Exemptions from Position ......................................................            Rule   18.8 ...............................   As Needed.
                                                                                                      Liquidation Positions ..............................................................       Rule   18.11 .............................    As Needed.
                                                    FINRA ......................................      Position Limits ........................................................................   Rule   2860(b)(3) ......................      Daily.
                                                                                                      Liquidation of Positions and Restrictions on Access .............                          Rule   2860(b)(6) ......................      As Needed.
                                                    ISE ...........................................   Position Limits ........................................................................   Rule   412 ................................   Daily.
                                                                                                      Exemptions from Position Limits ............................................               Rule   413 ................................   As Needed.
                                                                                                      Liquidating Positions ..............................................................       Rule   416 ................................   As Needed.



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                                                    9812                                 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

                                                                                         VIOLATION II—POSITION LIMITS (PL)—FOR LISTED EQUITY OPTIONS—Continued
                                                                                                                                   Description of rule                                                                                              Frequency
                                                                       SRO                                                                                                                                  Exchange rule No.
                                                                                                                           (for review as they apply to PL)                                                                                          of review

                                                    ISE Gemini ..............................         Position Limits ........................................................................      Rule 412 ................................    Daily.
                                                                                                      Exemptions from Position Limits ............................................                  Rule 413 ................................    As Needed.
                                                                                                      Liquidating Positions ..............................................................          Rule 416 ................................    As Needed.
                                                    ISE Mercury ............................          Position Limits ........................................................................      Rule 412 ................................    Daily.
                                                                                                      Exemptions from Position Limits ............................................                  Rule 413 ................................    As Needed.
                                                                                                      Liquidating Positions ..............................................................          Rule 416 ................................    As Needed.
                                                    MIAX ........................................     Position Limits ........................................................................      Rule 307 ................................    Daily.
                                                                                                      Exemptions from Position Limits ............................................                  Rule 308 ................................    As Needed.
                                                                                                      Liquidating Positions ..............................................................          Rule 311 ................................    As Needed.
                                                    MIAX Pearl ..............................         Position Limits ........................................................................      Rule 307 ................................    Daily.
                                                                                                      Exemptions from Position Limits ............................................                  Rule 308 ................................    As Needed.
                                                                                                      Liquidating Positions ..............................................................          Rule 311 ................................    As Needed.
                                                    Nasdaq ....................................       Position Limits ........................................................................      Ch. III, Sect. 7 ........................    Daily.
                                                                                                      Exemptions from Position Limits ............................................                  Ch. III, Sect. 8 ........................    As Needed.
                                                                                                      Liquidating Positions ..............................................................          Ch. III, Sect. 11 ......................     As Needed.
                                                    Nasdaq [OMX]BX ....................               Position Limits ........................................................................      Ch. III, Sect. 7 ........................    Daily.
                                                                                                      Exemptions from Position Limits ............................................                  Ch. III, Sect. 8 ........................    As Needed.
                                                                                                      Liquidating Positions ..............................................................          Ch. III, Sect. 11 ......................     As Needed.
                                                    Nasdaq [OMX]PHLX ...............                  Position Limits ........................................................................      Rule 1001 ..............................     Daily.
                                                                                                      Liquidation of Position ............................................................          Rule 1004 ..............................     As Needed.
                                                    NYSE Arca ..............................          Position Limits ........................................................................      Rule 6.8 .................................   Daily.
                                                                                                      Liquidation of Position ............................................................          Rule 6.7 .................................   As Needed.
                                                    NYSE MKT ..............................           Position Limits ........................................................................      Rule 904 ................................    Daily.
                                                                                                      Liquidating Positions ..............................................................          Rule 907 ................................    As Needed.


                                                     VIOLATION III—LARGE OPTIONS POSITION REPORT (LOPR)—FOR LISTED AND FLEX EQUITY OPTIONS AND ETF OPTIONS
                                                                                                                                   Description of rule                                                                                              Frequency
                                                                       SRO                                                                                                                                  Exchange rule No.
                                                                                                                         (for review as they apply to LOPR)                                                                                          of review

                                                    [BATS]Bats ..............................         Reports Related to Position Limits .........................................                  Rule 18.10 .............................     Yearly.
                                                    BOX .........................................     Reports Related to Position Limits .........................................                  Rule 3150 ..............................     Yearly.
                                                    C2 ............................................   Reports Related to Position Limits .........................................                  Rule 4.13(a) ...........................     Yearly.
                                                                                                      Reports Related to Position Limits .........................................                  Rule 4.13(b) ...........................     Yearly.
                                                                                                      Reports Related to Position Limits .........................................                  Rule 4.13(d) ...........................     Yearly.
                                                    CBOE ......................................       Reports Related to Position Limits .........................................                  Rule 4.13(a) ...........................     Yearly.
                                                                                                      Reports Related to Position Limits .........................................                  Rule 4.13(b) ...........................     Yearly.
                                                                                                      Reports Related to Position Limits .........................................                  Rule 4.13(d) ...........................     Yearly.
                                                    EDGX ......................................       Reports Related to Position Limits .........................................                  Rule 18.10 .............................     Yearly.
                                                    FINRA ......................................      Options ...................................................................................   Rule 2360(b)(5) ......................       Yearly.
                                                    ISE ...........................................   Reports Related to Position Limits .........................................                  Rule 415 ................................    Yearly.
                                                    ISE Gemini ..............................         Reports Related to Position Limits .........................................                  Rule 415 ................................    Yearly.
                                                    ISE Mercury ............................          Reports Related to Position Limits .........................................                  Rule 415 ................................    Yearly.
                                                    MIAX ........................................     Reports Related to Position Limits .........................................                  Rule 310 ................................    Yearly.
                                                    MIAX PEARL ...........................            Reports Related to Position Limits .........................................                  Rule 310 ................................    Yearly.
                                                    Nasdaq ....................................       Reports Related to Position Limits .........................................                  Ch. III, Sect. 10 ......................     Yearly.
                                                    Nasdaq [OMX]BX ....................               Reports Related to Position Limits .........................................                  Ch. III, Sect. 10 ......................     Yearly.
                                                    Nasdaq [OMX]PHLX ...............                  Reporting of Options Positions ..............................................                 Rule 1003 ..............................     Yearly.
                                                    NYSE Arca ..............................          Reporting of Options Positions ..............................................                 Rule 6.6 .................................   Yearly.
                                                    NYSE MKT ..............................           Reporting of Options Positions ..............................................                 Rule 906 ................................    Yearly.


                                                                                         VIOLATION IV: OPTIONS CLEARING CORPORATION (OCC) ADJUSTMENT PROCESS
                                                                                                                                Description of rule                                                                                                 Frequency
                                                                       SRO                                        (as they apply to OCC Adjustments/By-laws                                                 Exchange rule No.                        of review
                                                                                                                       Article V, Section 1.01(a) and .02))

                                                    [BATS]Bats ..............................         Adherence to Law ..................................................................           Rule 18.1 ...............................    Yearly.
                                                    BOX .........................................     Adherence to Law ..................................................................           Rule 3010 ..............................     Yearly.
                                                    C2 ............................................   Adherence to Law ..................................................................           Rule 4.2 .................................   Yearly.
                                                    CBOE ......................................       Adherence to Law ..................................................................           Rule 4.2 .................................   Yearly.
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    EDGX ......................................       Adherence to Law ..................................................................           Rule 18.1 ...............................    Yearly.
                                                    FINRA ......................................      Violation of By-Laws and Rules of FINRA or The OCC ........                                   Rule 2360(b)(21) ....................        Yearly.
                                                    ISE ...........................................   Adherence to Law ..................................................................           Rule 401 ................................    Yearly.
                                                    ISE Gemini ..............................         Adherence to Law ..................................................................           Rule 401 ................................    Yearly.
                                                    ISE Mercury ............................          Adherence to Law ..................................................................           Rule 401 ................................    Yearly.
                                                    MIAX ........................................     Adherence to Law ..................................................................           Rule 300 ................................    Yearly.
                                                    MIAX PEARL ...........................            Adherence to Law ..................................................................           Rule 300 ................................    Yearly.
                                                    Nasdaq ....................................       Adherence to Law ..................................................................           Ch. III, Sect. 1 ........................    Yearly.
                                                    Nasdaq [OMX]BX ....................               Adherence to Law ..................................................................           Ch. III, Sect. 1 ........................    Yearly.



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                                                                                   Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices                                                                               9813

                                                                         VIOLATION IV: OPTIONS CLEARING CORPORATION (OCC) ADJUSTMENT PROCESS—Continued
                                                                                                                        Description of rule                                                                                          Frequency
                                                                     SRO                                  (as they apply to OCC Adjustments/By-laws                                          Exchange rule No.                        of review
                                                                                                               Article V, Section 1.01(a) and .02))

                                                    Nasdaq [OMX]PHLX ...............           Violation of By-Laws and Rules of OCC ................................                Rule 1050 ..............................     Yearly.
                                                    NYSE Arca ..............................   Adherence to Law and Good Business Practice ...................                       Rule 11.1 ...............................    Yearly.
                                                    NYSE MKT ..............................    Business Conduct ..................................................................   Rule 16 ..................................   Yearly.



                                                    IV. Solicitation of Comments                                    MKT, Bats, C2, CBOE, EDGX, Gemini,                                  undue delay.20 In addition, the
                                                      Interested persons are invited to                             ISE, ISE Mercury, FINRA, Arca,                                      Commission notes that the prior version
                                                    submit written data, views, and                                 NASDAQ, BOX, BX, Phlx, MIAX, and                                    of this Plan was published for comment,
                                                    arguments concerning the foregoing.                             MIAX PEARL. All comments received                                   and the Commission did not receive any
                                                    Comments may be submitted by any of                             will be posted without change; the                                  comments thereon.21 Finally, the
                                                    the following methods:                                          Commission does not edit personal                                   Commission does not believe that the
                                                                                                                    identifying information from                                        amendment to the Plan raises any new
                                                    Electronic Comments                                             submissions. You should submit only                                 regulatory issues that the Commission
                                                      • Use the Commission’s Internet                               information that you wish to make                                   has not previously considered.
                                                    comment form (http://www.sec.gov/                               available publicly. All submissions
                                                                                                                                                                                        VI. Conclusion
                                                    rules/sro.shtml); or                                            should refer to File Number 4–551 and
                                                      • Send an email to rule-                                      should be submitted on or before March                                 This order gives effect to the amended
                                                    comments@sec.gov. Please include File                           1, 2017.                                                            Plan submitted to the Commission that
                                                    Number 4–551 on the subject line.                               V. Discussion                                                       is contained in File No. 4–551.
                                                    Paper Comments                                                                                                                         It is therefore ordered, pursuant to
                                                                                                                       The Commission continues to believe                              Section 17(d) of the Act, that the Plan,
                                                       • Send paper comments in triplicate                          that the Plan, as proposed to be                                    as amended by and between MKT, Bats,
                                                    to Secretary, Securities and Exchange                           amended, is an achievement in                                       C2, CBOE, EDGX, Gemini, ISE, ISE
                                                    Commission, 100 F Street NE.,                                   cooperation among the SRO                                           Mercury, FINRA, Arca, NASDAQ, BOX,
                                                    Washington, DC 20549–1090.                                      participants. The Plan, as amended, will                            BX, Phlx, MIAX, and MIAX PEARL filed
                                                    All submissions should refer to File                            reduce unnecessary regulatory                                       with the Commission pursuant to Rule
                                                    Number 4–551. This file number should                           duplication by allocating to the                                    17d–2 on January 31, 2017 is hereby
                                                    be included on the subject line if email                        designated SRO the responsibility for                               approved and declared effective.
                                                    is used. To help the Commission                                 certain options-related market
                                                                                                                    surveillance matters that would                                        It is further ordered that those SRO
                                                    process and review your comments                                                                                                    participants that are not the DOSR as to
                                                    more efficiently, please use only one                           otherwise be performed by multiple
                                                                                                                    SROs. The Plan promotes efficiency by                               a particular common member are
                                                    method. The Commission will post all
                                                                                                                    reducing costs to firms that are members                            relieved of those regulatory
                                                    comments on the Commission’s Internet
                                                                                                                    of more than one of the SRO                                         responsibilities allocated to the common
                                                    Web site (http://www.sec.gov/rules/
                                                                                                                    participants. In addition, because the                              member’s DOSR under the amended
                                                    sro.shtml). Copies of the submission, all
                                                                                                                    SRO participants coordinate their                                   Plan to the extent of such allocation.
                                                    subsequent amendments, all written
                                                    statements with respect to the proposed                         regulatory functions in accordance with                               For the Commission, by the Division of
                                                    plan that are filed with the Commission,                        the Plan, the Plan promotes, and will                               Trading and Markets, pursuant to delegated
                                                    and all written communications relating                         continue to promote, investor                                       authority.22
                                                    to the proposed plan between the                                protection. Under paragraph (c) of Rule                             Robert W. Errett,
                                                    Commission and any person, other than                           17d–2, the Commission may, after                                    Deputy Secretary.
                                                    those that may be withheld from the                             appropriate notice and comment,                                     [FR Doc. 2017–02548 Filed 2–7–17; 8:45 am]
                                                    public in accordance with the                                   declare a plan, or any part of a plan,                              BILLING CODE 8011–01–P
                                                    provisions of 5 U.S.C. 552, will be                             effective. In this instance, the
                                                    available for Web site viewing and                              Commission believes that appropriate                                  20 On December 13, 2016, the Commission

                                                    printing in the Commission’s Public                             notice and comment can take place after                             approved MIAX PEARL’s application for
                                                    Reference Room, 100 F Street NE.,                               the proposed amendment is effective.                                registration as a national securities exchange. See
                                                    Washington, DC 20549, on official                               The primary purpose of the amendment                                Securities Exchange Act Release No. 79543, 81 FR
                                                                                                                                                                                        92901 (December 20, 2016).
                                                    business days between the hours of                              is to add MIAX PEARL as a Participant                                 21 See Securities Exchange Act Release No. 77149
                                                    10:00 a.m. and 3:00 p.m. Copies of the                          to the Plan. By declaring it effective                              (February 16, 2016), 81 FR 8781 (February 22, 2016)
                                                    plan also will be available for inspection                      today, the amended Plan can become                                  (File No. 4–551).
                                                    and copying at the principal offices of                         effective and be implemented without                                  22 17 CFR 200.30–3(a)(34).
asabaliauskas on DSK3SPTVN1PROD with NOTICES




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Document Created: 2017-02-08 02:59:40
Document Modified: 2017-02-08 02:59:40
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 9807 

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