83_FR_17273 83 FR 17198 - Order Granting Application by MIAX PEARL, LLC for Exemption Pursuant to Section 36(a) of the Exchange Act From the Rule Filing Requirements of Section 19(b) of the Exchange Act With Respect to Certain Rules Incorporated by Reference

83 FR 17198 - Order Granting Application by MIAX PEARL, LLC for Exemption Pursuant to Section 36(a) of the Exchange Act From the Rule Filing Requirements of Section 19(b) of the Exchange Act With Respect to Certain Rules Incorporated by Reference

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 75 (April 18, 2018)

Page Range17198-17200
FR Document2018-08054

Federal Register, Volume 83 Issue 75 (Wednesday, April 18, 2018) 
[Federal Register Volume 83, Number 75 (Wednesday, April 18, 2018)]
[Notices]
[Pages 17198-17200]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08054]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83040]


Order Granting Application by MIAX PEARL, LLC for Exemption 
Pursuant to Section 36(a) of the Exchange Act From the Rule Filing 
Requirements of Section 19(b) of the Exchange Act With Respect to 
Certain Rules Incorporated by Reference

April 12, 2018.
    MIAX PEARL, LLC (``MIAX PEARL'' or ``Exchange'') has filed with the 
Securities and Exchange Commission (``Commission'') an application for 
an exemption under Section 36(a)(1) of the Securities Exchange Act of 
1934 (``Exchange Act'') \1\ from the rule filing requirements of 
Section 19(b) of the

[[Page 17199]]

Exchange Act \2\ with respect to certain rules of the Miami 
International Securities Exchange, LLC (``MIAX Options'' \3\) that the 
Exchange seeks to incorporate by reference. Section 36 of the Exchange 
Act authorizes the Commission to conditionally or unconditionally 
exempt any person, security, or transaction, or any class thereof, from 
any provision of the Exchange Act or rule thereunder, if necessary or 
appropriate in the public interest and consistent with the protection 
of investors.
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    \1\ 15 U.S.C. 78mm(a)(1).
    \2\ 15 U.S.C. 78s(b).
    \3\ The Commission notes that MIAX PEARL referred to the Miami 
International Securities Exchange, LLC as ``MIAX Options'' in its 
application for an exemption under Section 36(a)(1) of the Exchange 
Act. See Letter from Dimitriy Kotov, Counsel, MIAX PEARL, to Brent 
J. Fields, Secretary, Commission, dated March 14, 2018 (``Exemptive 
Request''). References herein to the rules of MIAX Options are to 
the rules of the Miami International Securities Exchange, LLC.
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    On September 27, 2017, the Commission approved a proposed rule 
change by MIAX Options to adopt new Chapter XVIII comprising MIAX 
Options Rules 1801-1812 (``MIAX Options Index Options Rules''), to 
accommodate the trading of index options by MIAX Options members and 
establish generic listing standards and maintenance standards to permit 
MIAX Options to list ``broad-based'' and ``narrow-based'' index options 
pursuant to Rule 19b-4(e) under the Act.\4\ On February 8, 2018, MIAX 
PEARL filed a proposed rule change with the Commission to incorporate 
by reference, in new Chapter XVIII of the MIAX PEARL rulebook, the 
rules contained in MIAX Options Chapter XVIII.\5\
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    \4\ See 17 CFR 240.19b-4(e). See also Securities Exchange Act 
Release No. 81739 (February 2, 2017), 82 FR 46111 (October 3, 2017). 
The proposed rule change also made related changes to other rules in 
the MIAX Options rulebook. See id.
    \5\ See Securities Exchange Act Release No. 82756 (February 21, 
2018), 83 FR 8538 (February 27, 2018). MIAX PEARL's proposed rule 
change was approved by the Commission on April 12, 2018. See 
Securities Exchange Act Release No. 83039.
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    MIAX PEARL has requested, pursuant to Rule 0-12 under the Exchange 
Act,\6\ that the Commission grant the Exchange an exemption from the 
rule filing requirements of Section 19(b) of the Exchange Act for 
changes to MIAX PEARL Chapter XVIII that are effected solely by virtue 
of a change to Chapter XVIII of the MIAX Options rules. Specifically, 
MIAX PEARL requests that it be permitted to incorporate by reference 
changes made to each MIAX Options Index Options Rule that is cross-
referenced in the MIAX PEARL Chapter XVIII rules,\7\ without the need 
for the Exchange to file separately the same proposed rule changes 
pursuant to Section 19(b) of the Exchange Act.\8\ By virtue of these 
incorporations by reference, MIAX PEARL members will comply with the 
MIAX Options Index Options Rules by complying with the MIAX Options 
rules referenced in the MIAX PEARL Chapter XVIII rules.\9\ The Exchange 
states that the MIAX Options rules the Exchange seeks to incorporate by 
reference are categories of rules that are regulatory in nature. The 
Exchange has agreed to provide written notice to its members whenever 
MIAX Options proposes a change to Chapter XVIII of its Rules.\10\
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    \6\ 17 CFR 240.0-12.
    \7\ MIAX PEARL Chapter XVIII states ``[t]he rules contained in 
MIAX Options Exchange Chapter XVIII, as such rules may be in effect 
from time to time (the `Chapter XVIII Rules'), are hereby 
incorporated by reference into this MIAX PEARL Chapter XVIII, and 
are thus MIAX PEARL Rules and thereby applicable to MIAX PEARL 
Members.''
    \8\ See Exemptive Request, supra note 3, at 2.
    \9\ Id.
    \10\ The Exchange states that it will provide such notice on its 
website in the same section it uses to post its own proposed rule 
change filings pursuant to Rule 19b-4(l). See 17 CFR 240.19b-4(l). 
In addition, the Exchange states that its website will also include 
a link to the MIAX Options website where the proposed rule change 
filings are located. See Exemptive Request, supra note 3, at 2.
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    The Exchange believes this exemption is appropriate in the public 
interest and consistent with the protection of investors because it 
will promote more efficient use of the Exchange's and the Commission's 
resources by avoiding duplicative rule filings based on simultaneous 
changes to identical rules sought by more than one self-regulatory 
organization (``SRO''),\11\ and because it will result in the 
Exchange's rules being consistent with the relevant cross-referenced 
MIAX Options rules.
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    \11\ Id.
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    The Commission has issued exemptions similar to the Exchange's 
request.\12\ In granting one such exemption in 2010, the Commission 
repeated a prior, 2004 Commission statement that it would consider 
similar future exemption requests from other SROs, provided that:
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    \12\ See, e.g., Securities Exchange Act Release Nos. 76998 
(January 29, 2016), 81 FR 6066, 6083-84 (February 4, 2016) (order 
granting application for registration as a national securities 
exchange of ISE Mercury, LLC (now known as Nasdaq MRX, LLC) and 
exemptive request relating to rules of the International Securities 
Exchange, LLC (now known as Nasdaq ISE, LLC) (``ISE'') incorporated 
by reference, including index options rules); 70050 (July 26, 2013), 
78 FR 46622, 46642 (August 1, 2013) (order granting application for 
registration as a national securities exchange of Topaz Exchange, 
LLC (now known as Nasdaq GEMX, LLC) and exemptive request relating 
to rules of ISE incorporated by reference, including index options 
rules); 61152 (December 10, 2009), 74 FR 66699, 66709-10 (December 
16, 2009) (order granting application for registration as a national 
securities exchange of C2 Options Exchange, Incorporated (``C2'') 
and exemptive request relating to rules of the Chicago Board Options 
Exchange, Incorporated (``CBOE'') incorporated by reference, 
including index options rules). See also, e.g., Securities Exchange 
Act Release No. 61534 (February 18, 2010), 75 FR 8760 (February 25, 
2010) (order granting BATS Exchange, Inc.'s exemptive request 
relating to rules incorporated by reference by the BATS Exchange 
Options Market rules) (``BATS Options Market Order'').
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     An SRO wishing to incorporate rules of another SRO by 
reference has submitted a written request for an order exempting it 
from the requirement in Section 19(b) of the Exchange Act to file 
proposed rule changes relating to the rules incorporated by reference, 
has identified the applicable originating SRO(s), together with the 
rules it wants to incorporate by reference, and otherwise has complied 
with the procedural requirements set forth in the Commission's release 
governing procedures for requesting exemptive orders pursuant to Rule 
0-12 under the Exchange Act; \13\
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    \13\ See 17 CFR 240.0-12 and Securities Exchange Act Release No. 
39624 (February 5, 1998), 63 FR 8101 (February 18, 1998) 
(``Commission Procedures for Filing Applications for Orders for 
Exemptive Relief Pursuant to Section 36 of the Exchange Act; Final 
Rule'').
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     The incorporating SRO has requested incorporation of 
categories of rules (rather than individual rules within a category) 
that are not trading rules (e.g., the SRO has requested incorporation 
of rules such as margin, suitability, or arbitration); and
     The incorporating SRO has reasonable procedures in place 
to provide written notice to its members each time a change is proposed 
to the incorporated rules of another SRO.\14\
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    \14\ See BATS Options Market Order, supra note 12 (citing 
Securities Exchange Act Release No. 49260 (February 17, 2004), 69 FR 
8500 (February 24, 2004) (order granting exemptive request relating 
to rules incorporated by reference by several SROs) (``2004 
Order'')).
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    The Commission believes that the Exchange has satisfied each of 
these conditions. The Commission also believes that granting the 
Exchange an exemption from the rule filing requirements under Section 
19(b) of the Exchange Act will promote efficient use of Commission and 
Exchange resources by avoiding duplicative rule filings based on 
simultaneous changes to identical rule text sought by more than one 
SRO.\15\ The Commission therefore finds it appropriate in the public 
interest and consistent with the protection of investors to exempt the 
Exchange from the rule filing requirements under Section 19(b) of the 
Exchange Act with respect to the above-described rules it has 
incorporated by reference. This exemption is

[[Page 17200]]

conditioned upon the Exchange promptly providing written notice to its 
members whenever MIAX Options changes a rule that the Exchange has 
incorporated by reference.
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    \15\ See BATS Options Market Order, supra note 12, 75 FR at 
8761; see also 2004 Order, supra note 14, 69 FR at 8502.
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    Accordingly, It is ordered, pursuant to Section 36 of the Exchange 
Act,\16\ that the Exchange is exempt from the rule filing requirements 
of Section 19(b) of the Exchange Act solely with respect to changes to 
the rules identified in its request that incorporate by reference 
certain MIAX Options rules that are the result of changes to such MIAX 
Options' rules, provided that the Exchange promptly provides written 
notice to its members whenever MIAX Options proposes to change a rule 
that the Exchange has incorporated by reference.
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    \16\ 15 U.S.C. 78mm.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(76).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08054 Filed 4-17-18; 8:45 am]
BILLING CODE 8011-01-P

17198 Federal Register / Vol. 83, No. 75 / Wednesday, April 18, 2018 / Notices Replacement Chargers ........... $75 each. change applies to all TPHs that lose or only one method. The Commission will Replacement adapters and $50 each. damage the above-mentioned PAR post all comments on the Commission’s protective cases. related hardware. The Exchange also internet website (http://www.sec.gov/ 2. Statutory Basis notes the proposed rule change is not rules/sro.shtml). Copies of the intended for competitive purposes, but submission, all subsequent The Exchange believes the proposed rather because the Exchange no longer amendments, all written statements rule change is consistent with the wishes to subsidize TPHs for items they with respect to the proposed rule Securities Exchange Act of 1934 (the lose or break. change that are filed with the ‘‘Act’’) and the rules and regulations Commission, and all written thereunder applicable to the Exchange C. Self-Regulatory Organization’s communications relating to the and, in particular, the requirements of Statement on Comments on the proposed rule change between the Section 6(b) of the Act.3 Specifically, Proposed Rule Change Received From Commission and any person, other than the Exchange believes the proposed rule Members, Participants, or Others those that may be withheld from the change is consistent with the Section The Exchange neither solicited nor public in accordance with the 6(b)(5) 4 requirements that the rules of received comments on the proposed provisions of 5 U.S.C. 552, will be an exchange be designed to prevent rule change. available for website viewing and fraudulent and manipulative acts and printing in the Commission’s Public practices, to promote just and equitable III. Date of Effectiveness of the Proposed Rule Change and Timing for Reference Room, 100 F Street NE, principles of trade, to foster cooperation Washington, DC 20549 on official and coordination with persons engaged Commission Action business days between the hours of in regulating, clearing, settling, The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the processing information with respect to, effective pursuant to Section 19(b)(3)(A) filing also will be available for and facilitating transactions in of the Act 6 and paragraph (f) of Rule inspection and copying at the principal securities, to remove impediments to 19b–4 7 thereunder. At any time within office of the Exchange. All comments and perfect the mechanism of a free and 60 days of the filing of the proposed rule received will be posted without change. open market and a national market change, the Commission summarily may Persons submitting comments are system, and, in general, to protect temporarily suspend such rule change if cautioned that we do not redact or edit investors and the public interest. it appears to the Commission that such personal identifying information from Additionally, the Exchange believes the action is necessary or appropriate in the comment submissions. You should proposed rule change is consistent with public interest, for the protection of submit only information that you wish Section 6(b)(4) of the Act,5 which investors, or otherwise in furtherance of to make available publicly. All requires that Exchange rules provide for the purposes of the Act. If the submissions should refer to File the equitable allocation of reasonable Commission takes such action, the Number SR–CBOE–2018–028 and dues, fees, and other charges among its Commission will institute proceedings should be submitted on or before May Trading Permit Holders and other to determine whether the proposed rule 9, 2018. persons using its facilities. change should be approved or The Exchange believes the proposed disapproved. For the Commission, by the Division of rule change is reasonable because the Trading and Markets, pursuant to delegated IV. Solicitation of Comments authority.8 amount of fees assessed reflect the approximate cost to the Exchange to Interested persons are invited to Eduardo A. Aleman, provide those items to TPHs. The submit written data, views, and Assistant Secretary. Exchange believes it’s equitable and not arguments concerning the foregoing, [FR Doc. 2018–08056 Filed 4–17–18; 8:45 am] unfairly discriminatory because TPHs including whether the proposed rule BILLING CODE 8011–01–P that lose these items or damage these change is consistent with the Act. items from non-normal wear or tear Comments may be submitted by any of should be responsible for the cost of the following methods: SECURITIES AND EXCHANGE replacement. The Exchange believes the COMMISSION Electronic Comments proposed fees will encourage TPHs to [Release No. 34–83040] take proper care of the above-mentioned • Use the Commission’s internet PAR related hardware. As noted above, comment form (http://www.sec.gov/ Order Granting Application by MIAX the Exchange will still provide the rules/sro.shtml); or PEARL, LLC for Exemption Pursuant initial items free of charge and will also • Send an email to rule-comments@ to Section 36(a) of the Exchange Act not charge TPHs to replace defective sec.gov. Please include File Number SR– From the Rule Filing Requirements of items (that were not the result of non- CBOE–2018–028 on the subject line. Section 19(b) of the Exchange Act With normal wear and tear). Paper Comments Respect to Certain Rules Incorporated by Reference B. Self-Regulatory Organization’s • Send paper comments in triplicate Statement on Burden on Competition to Secretary, Securities and Exchange April 12, 2018. The Exchange does not believe that Commission, 100 F Street NE, MIAX PEARL, LLC (‘‘MIAX PEARL’’ the proposed rule change will impose Washington, DC 20549–1090. or ‘‘Exchange’’) has filed with the any burden on intramarket or All submissions should refer to File Securities and Exchange Commission intermarket competition that is not Number SR–CBOE–2018–028. This file (‘‘Commission’’) an application for an amozie on DSK30RV082PROD with NOTICES necessary or appropriate in furtherance number should be included on the exemption under Section 36(a)(1) of the of the purposes of the Act. The subject line if email is used. To help the Securities Exchange Act of 1934 Exchange notes that the proposed rule Commission process and review your (‘‘Exchange Act’’) 1 from the rule filing comments more efficiently, please use requirements of Section 19(b) of the 3 15 U.S.C. 78f(b). 4 15 U.S.C. 78f(b)(5). 6 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 200.30–3(a)(12). 5 15 U.S.C. 78f(b)(4). 7 17 CFR 240.19b–4(f). 1 15 U.S.C. 78mm(a)(1). VerDate Sep<11>2014 17:31 Apr 17, 2018 Jkt 244001 PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 E:\FR\FM\18APN1.SGM 18APN1

Federal Register / Vol. 83, No. 75 / Wednesday, April 18, 2018 / Notices 17199 Exchange Act 2 with respect to certain for the Exchange to file separately the exemption in 2010, the Commission rules of the Miami International same proposed rule changes pursuant to repeated a prior, 2004 Commission Securities Exchange, LLC (‘‘MIAX Section 19(b) of the Exchange Act.8 By statement that it would consider similar Options’’ 3) that the Exchange seeks to virtue of these incorporations by future exemption requests from other incorporate by reference. Section 36 of reference, MIAX PEARL members will SROs, provided that: the Exchange Act authorizes the comply with the MIAX Options Index • An SRO wishing to incorporate Commission to conditionally or Options Rules by complying with the rules of another SRO by reference has unconditionally exempt any person, MIAX Options rules referenced in the submitted a written request for an order security, or transaction, or any class MIAX PEARL Chapter XVIII rules.9 The exempting it from the requirement in thereof, from any provision of the Exchange states that the MIAX Options Section 19(b) of the Exchange Act to file Exchange Act or rule thereunder, if rules the Exchange seeks to incorporate proposed rule changes relating to the necessary or appropriate in the public by reference are categories of rules that rules incorporated by reference, has interest and consistent with the are regulatory in nature. The Exchange identified the applicable originating protection of investors. has agreed to provide written notice to SRO(s), together with the rules it wants On September 27, 2017, the its members whenever MIAX Options to incorporate by reference, and Commission approved a proposed rule proposes a change to Chapter XVIII of otherwise has complied with the change by MIAX Options to adopt new its Rules.10 procedural requirements set forth in the Chapter XVIII comprising MIAX The Exchange believes this exemption Commission’s release governing Options Rules 1801–1812 (‘‘MIAX is appropriate in the public interest and procedures for requesting exemptive Options Index Options Rules’’), to consistent with the protection of orders pursuant to Rule 0–12 under the accommodate the trading of index investors because it will promote more Exchange Act; 13 options by MIAX Options members and efficient use of the Exchange’s and the • The incorporating SRO has establish generic listing standards and Commission’s resources by avoiding requested incorporation of categories of maintenance standards to permit MIAX duplicative rule filings based on rules (rather than individual rules Options to list ‘‘broad-based’’ and simultaneous changes to identical rules within a category) that are not trading ‘‘narrow-based’’ index options pursuant sought by more than one self-regulatory rules (e.g., the SRO has requested to Rule 19b–4(e) under the Act.4 On organization (‘‘SRO’’),11 and because it incorporation of rules such as margin, February 8, 2018, MIAX PEARL filed a will result in the Exchange’s rules being suitability, or arbitration); and proposed rule change with the • The incorporating SRO has consistent with the relevant cross- Commission to incorporate by reference, reasonable procedures in place to referenced MIAX Options rules. in new Chapter XVIII of the MIAX provide written notice to its members The Commission has issued PEARL rulebook, the rules contained in each time a change is proposed to the exemptions similar to the Exchange’s MIAX Options Chapter XVIII.5 incorporated rules of another SRO.14 request.12 In granting one such The Commission believes that the MIAX PEARL has requested, pursuant to Rule 0–12 under the Exchange Act,6 Exchange has satisfied each of these XVIII, as such rules may be in effect from time to that the Commission grant the Exchange time (the ‘Chapter XVIII Rules’), are hereby conditions. The Commission also an exemption from the rule filing incorporated by reference into this MIAX PEARL believes that granting the Exchange an requirements of Section 19(b) of the Chapter XVIII, and are thus MIAX PEARL Rules and exemption from the rule filing thereby applicable to MIAX PEARL Members.’’ requirements under Section 19(b) of the Exchange Act for changes to MIAX 8 See Exemptive Request, supra note 3, at 2. PEARL Chapter XVIII that are effected 9 Id. Exchange Act will promote efficient use solely by virtue of a change to Chapter 10 The Exchange states that it will provide such of Commission and Exchange resources XVIII of the MIAX Options rules. notice on its website in the same section it uses to by avoiding duplicative rule filings Specifically, MIAX PEARL requests that post its own proposed rule change filings pursuant based on simultaneous changes to it be permitted to incorporate by to Rule 19b-4(l). See 17 CFR 240.19b–4(l). In identical rule text sought by more than addition, the Exchange states that its website will reference changes made to each MIAX also include a link to the MIAX Options website one SRO.15 The Commission therefore Options Index Options Rule that is where the proposed rule change filings are located. finds it appropriate in the public cross-referenced in the MIAX PEARL See Exemptive Request, supra note 3, at 2. interest and consistent with the Chapter XVIII rules,7 without the need 11 Id. protection of investors to exempt the 12 See, e.g., Securities Exchange Act Release Nos. Exchange from the rule filing 76998 (January 29, 2016), 81 FR 6066, 6083–84 2 15 U.S.C. 78s(b). (February 4, 2016) (order granting application for requirements under Section 19(b) of the 3 The Commission notes that MIAX PEARL registration as a national securities exchange of ISE Exchange Act with respect to the above- referred to the Miami International Securities described rules it has incorporated by Mercury, LLC (now known as Nasdaq MRX, LLC) Exchange, LLC as ‘‘MIAX Options’’ in its and exemptive request relating to rules of the reference. This exemption is application for an exemption under Section 36(a)(1) International Securities Exchange, LLC (now known of the Exchange Act. See Letter from Dimitriy as Nasdaq ISE, LLC) (‘‘ISE’’) incorporated by Kotov, Counsel, MIAX PEARL, to Brent J. Fields, relating to rules incorporated by reference by the reference, including index options rules); 70050 Secretary, Commission, dated March 14, 2018 BATS Exchange Options Market rules) (‘‘BATS (July 26, 2013), 78 FR 46622, 46642 (August 1, (‘‘Exemptive Request’’). References herein to the Options Market Order’’). 2013) (order granting application for registration as rules of MIAX Options are to the rules of the Miami 13 See 17 CFR 240.0–12 and Securities Exchange a national securities exchange of Topaz Exchange, International Securities Exchange, LLC. Act Release No. 39624 (February 5, 1998), 63 FR 4 See 17 CFR 240.19b–4(e). See also Securities LLC (now known as Nasdaq GEMX, LLC) and exemptive request relating to rules of ISE 8101 (February 18, 1998) (‘‘Commission Procedures Exchange Act Release No. 81739 (February 2, 2017), incorporated by reference, including index options for Filing Applications for Orders for Exemptive 82 FR 46111 (October 3, 2017). The proposed rule rules); 61152 (December 10, 2009), 74 FR 66699, Relief Pursuant to Section 36 of the Exchange Act; change also made related changes to other rules in 66709–10 (December 16, 2009) (order granting Final Rule’’). the MIAX Options rulebook. See id. application for registration as a national securities 14 See BATS Options Market Order, supra note 12 amozie on DSK30RV082PROD with NOTICES 5 See Securities Exchange Act Release No. 82756 exchange of C2 Options Exchange, Incorporated (citing Securities Exchange Act Release No. 49260 (February 21, 2018), 83 FR 8538 (February 27, (‘‘C2’’) and exemptive request relating to rules of (February 17, 2004), 69 FR 8500 (February 24, 2004) 2018). MIAX PEARL’s proposed rule change was the Chicago Board Options Exchange, Incorporated (order granting exemptive request relating to rules approved by the Commission on April 12, 2018. See (‘‘CBOE’’) incorporated by reference, including incorporated by reference by several SROs) (‘‘2004 Securities Exchange Act Release No. 83039. index options rules). See also, e.g., Securities Order’’)). 6 17 CFR 240.0–12. 15 See BATS Options Market Order, supra note Exchange Act Release No. 61534 (February 18, 7 MIAX PEARL Chapter XVIII states ‘‘[t]he rules 2010), 75 FR 8760 (February 25, 2010) (order 12, 75 FR at 8761; see also 2004 Order, supra note contained in MIAX Options Exchange Chapter granting BATS Exchange, Inc.’s exemptive request 14, 69 FR at 8502. VerDate Sep<11>2014 17:31 Apr 17, 2018 Jkt 244001 PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 E:\FR\FM\18APN1.SGM 18APN1

17200 Federal Register / Vol. 83, No. 75 / Wednesday, April 18, 2018 / Notices conditioned upon the Exchange Reporting System (‘‘RTRS’’) to reflect Background promptly providing written notice to its the re-engineered RTRS and modernize The MSRB is enhancing certain RTRS members whenever MIAX Options and consolidate the RTRS information components, including improving changes a rule that the Exchange has facility (‘‘RTRS IF’’) (‘‘proposed rule business continuity and connectivity incorporated by reference. change’’). The MSRB has filed the services to RTRS and migrating Accordingly, It is ordered, pursuant to proposed rule change under Section subscription products to encrypted Section 36 of the Exchange Act,16 that 19(b)(3)(A)(iii) of the Act 3 and Rule solutions.6 The purpose of the proposed the Exchange is exempt from the rule 19b-4(f)(6) 4 thereunder, as a rule change is to revise the RTRS IF to filing requirements of Section 19(b) of noncontroversial rule change that reflect this re-engineering of RTRS and the Exchange Act solely with respect to renders the proposal effective upon to modernize and consolidate the RTRS changes to the rules identified in its filing. The proposed rule change would IF. request that incorporate by reference be made operative on May 29, 2018. Since the re-engineering would result certain MIAX Options rules that are the The text of the proposed rule change in revisions to the RTRS IF, the MSRB result of changes to such MIAX Options’ is available on the MSRB’s website at took the opportunity to perform a rules, provided that the Exchange www.msrb.org/Rules-and- comprehensive review of the RTRS IF to promptly provides written notice to its Interpretations/SEC-Filings/2018- evaluate whether it sufficiently and members whenever MIAX Options Filings.aspx, at the MSRB’s principal clearly describes the basic functionality proposes to change a rule that the office, and at the Commission’s Public and operation of RTRS. The MSRB Exchange has incorporated by reference. Reference Room. believes that dealers, submitters 7 and For the Commission, by the Division of subscribers 8 benefit from this Trading and Markets, pursuant to delegated II. Self-Regulatory Organization’s Statement of the Purpose of, and information being provided in a concise authority.17 and organized manner. Eduardo A. Aleman, Statutory Basis for, the Proposed Rule Assistant Secretary. Change Proposed Amendments to the RTRS Information Facility [FR Doc. 2018–08054 Filed 4–17–18; 8:45 am] In its filing with the Commission, the BILLING CODE 8011–01–P MSRB included statements concerning (i) Subscriber Connectivity Changes the purpose of and basis for the The RTRS IF sets forth RTRS proposed rule change and discussed any subscribers’ options for connecting to SECURITIES AND EXCHANGE comments it received on the proposed the RTRS Real-Time Transaction Data COMMISSION rule change. The text of these statements Subscription Service (‘‘Real-Time [Release No. 34–83038; File No. SR–MSRB– may be examined at the places specified Service’’). Currently, subscribers have 2018–02] in Item IV below. The MSRB has the option to connect to the Real-Time prepared summaries, set forth in Service either over the internet or by Self-Regulatory Organizations; Sections A, B, and C below, of the most leased line. As part of the re- Municipal Securities Rulemaking significant aspects of such statements. engineering, the MSRB will require that Board; Notice of Filing and Immediate subscribers to the Real-Time Service Effectiveness of a Proposed Rule A. Self-Regulatory Organization’s Statement of the Purpose of, and utilize the internet to connect to RTRS. Change to the MSRB’s Facility for the As a result, subscribers will no longer be Real-Time Transaction Reporting Statutory Basis for, the Proposed Rule Change able to use leased lines for the Real- System Time Service. April 12, 2018. 1. Purpose With respect to messaging with RTRS, Pursuant to Section 19(b)(1) of the MSRB Rule G–14, on transaction subscribers currently must use either Securities Exchange Act of 1934 (the reporting, requires brokers, dealers and the MQ Series messaging software or a ‘‘Act’’ or ‘‘Exchange Act’’) 1 and Rule municipal securities dealers (‘‘dealers’’) Transmission Control Protocol (‘‘TCP’’) 19b–4 thereunder,2 notice is hereby to report executed transactions in Socket connection. As part of the re- given that on April 2, 2018 the municipal securities to RTRS within 15 engineering, the MSRB will offer Municipal Securities Rulemaking Board minutes of the time of trade, with subscribers a new web service as an (the ‘‘MSRB’’ or ‘‘Board’’) filed with the limited exceptions. RTRS disseminates option for messaging with RTRS and Securities and Exchange Commission information about transactions retire the MQ Series messaging software. (‘‘Commission’’) the proposed rule occurring in the municipal securities Moreover, the MSRB will require that change as described in Items I, II, and market to RTRS subscription services, any TCP socket connections utilized for III below, which Items have been including to the MSRB’s Electonic messaging with RTRS are secure. prepared by the MSRB. The Municipal Market Access System The MSRB is implementing these Commission is publishing this notice to (EMMA®). The RTRS IF sets forth the subscriber connectivity changes to solicit comments on the proposed rule improve business continuity by material aspects of the operation of change from interested persons. allowing for more efficient failovers to RTRS by describing the basic I. Self-Regulatory Organization’s functionality of, and the high-level 6 The MSRB has reported the enhancements to Statement of the Terms of Substance of parameters by which the MSRB RTRS components to the SEC consistent with the Proposed Rule Change operates, RTRS. The proposed rule Regulation Systems Compliance and Integrity. See change consists of amendments to the Exchange Act Release No. 73639 (November 19, The MSRB filed with the Commission RTRS IF.5 2014), 79 FR 72251 (December 5, 2014). amozie on DSK30RV082PROD with NOTICES a proposed rule change to the MSRB’s 7 As defined in Rule G–14, a submitter means a facility for the Real-Time Transaction dealer, or service bureau acting on behalf of a 3 15 U.S.C. 78s(b)(3)(A)(iii). dealer, that has been authorized to interface with 4 17 CFR 240.19b–4(f)(6). RTRS for the purposes of entering transaction data 16 15 U.S.C. 78mm. 5 The RTRS facility is currently available on the into the system. 17 17 CFR 200.30–3(a)(76). MSRB’s website at http://www.msrb.org/Rules-and- 8 Subscriber refers to an individual or entity that 1 15 U.S.C. 78s(b)(1). Interpretations/MSRB-Rules/Facilities/RTRS- receives RTRS data through an MSRB subscription 2 17 CFR 240.19b–4. Facility.aspx. service. VerDate Sep<11>2014 17:31 Apr 17, 2018 Jkt 244001 PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 E:\FR\FM\18APN1.SGM 18APN1


Document Created: 2018-04-18 02:59:50
Document Modified: 2018-04-18 02:59:50
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 Citation83 FR 17198 
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