83 FR 49449 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing of Proposed Rule Change To Modify Rule 961 Regarding the Give Up of a Clearing Member by ATP Holders and Conforming Changes to Rule 933NY

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 190 (October 1, 2018)

Page Range		49449-49451
FR Document		2018-21233
Federal Register, Volume 83 Issue 190 (Monday, October 1, 2018)
[Federal Register Volume 83, Number 190 (Monday, October 1, 2018)]
[Notices]
[Pages 49449-49451]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21233]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84285; File No. SR-NYSEAMER-2018-44]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing of Proposed Rule Change To Modify Rule 961 Regarding the Give Up 
of a Clearing Member by ATP Holders and Conforming Changes to Rule 
933NY

September 25, 2018.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on September 11, 2018, NYSE American LLC (the ``Exchange'' 
or ``NYSE American'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I 
and II below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify Rule 961 regarding the Give Up of a 
Clearing Member by ATP Holders and proposes conforming changes to Rule 
933NY. The proposed rule change is available on the Exchange's website 
at www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

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

1. Purpose
    The purpose of this filing is to modify Rule 961 regarding the Give 
Up of a Clearing Member \4\ by ATP Holders and to make conforming 
changes to Rule 933NY.
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    \4\ Rule 900.2NY(11) defines ``Clearing Member'' as an Exchange 
ATP Holder which has been admitted to membership in the Options 
Clearing Corporation pursuant to the provisions of the Rules of the 
Options Clearing Corporation.
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Rule 961: Current Process To Give Up a Clearing Member
    In 2015, the Exchange adopted its current ``give up'' procedure for 
ATP Holders executing transactions on the Exchange.\5\ Per Rule 961, an 
ATP Holder may give up a ``Designated Give Up'' or its ``Guarantor,'' 
as defined in the Rule and described below.
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    \5\ See Securities and Exchange Act Release No. 75642 (August 7, 
2015), 80 FR 48594 (August 13, 2015) (SR-NYSEMKT-2015-55).
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    The Rule defines ``Designated Give Up'' as any Clearing Member that 
an ATP Holder (other than a Market Maker \6\) identifies to the 
Exchange, in writing, as a Clearing Member the ATP Holder requests the 
ability to give up. To designate a ``Designated Give Up,'' an ATP 
Holder must submit written notification to the Exchange. Specifically, 
the Exchange uses a standardized form (``Notification Form''). An ATP 
Holder may currently designate any Clearing Member as a Designated Give 
Up. Additionally, there is no minimum or maximum number of Designated 
Give Ups that an ATP Holder must identify. Similarly, should an ATP 
Holder no longer want the ability to give up a particular Designated 
Give Up, the ATP Holder informs the Exchange in writing.
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    \6\ For purposes of this rule, references to ``Market Maker'' 
refer to ATP Holders acting in the capacity of a Market Maker and 
include all Exchange Market Maker capacities e.g., Lead Market 
Makers. As explained below, Market Makers give up Guarantors that 
have executed a Letter of Guarantee on behalf of the Marker Maker, 
pursuant to Rule 932NY; Market Makers need not give up Designated 
Give Ups.
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    Rule 961 also requires that the Exchange notify a Clearing Member, 
in writing and as soon as practicable, of each ATP Holder that has 
identified it as a Designated Give Up. However, the Exchange will not 
accept any instructions from a Clearing Member to prohibit an ATP 
Holder from designating the Clearing Member as a Designated Give Up. 
Additionally, there is no subjective evaluation of an ATP Holder's list 
of Designated Give Ups by the Exchange. The Rule does, however, provide 
that a Designated Give Up may determine to not accept a trade on which 
its name was given up so long as it believes in good faith that it has 
a valid reason not to accept the trade.\7\
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    \7\ See Rule 961(f)(1) (setting forth procedures for rejecting a 
trade). An example of a valid reason to reject a trade may be that 
the Designated Give Up does not have a customer for that particular 
trade.
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    The Rule defines ``Guarantor'' as a Clearing Member that has issued 
a Letter of Guarantee or Letter of Authorization for the executing ATP 
Holder, pursuant to Rules of the Exchange \8\ that is in effect at the 
time of the execution of the applicable trade. An executing ATP Holder 
may give up its Guarantor without such Guarantor being a ``Designated 
Give Up.'' Additionally, Rule 924NY provides that a Letter of Guarantee 
is required to be issued and filed by each Clearing Member through 
which a Market Maker clears transactions. Accordingly, a Market Maker 
is enabled to give up only a Guarantor that had executed a Letter of 
Guarantee on its behalf pursuant to Rule 924NY; a Market Maker does not 
need to identify any Designated Give Ups. Like Designated Give Ups, 
Guarantors likewise have the ability to reject a trade.\9\
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    \8\ See Rule 924NY (Letters of Guarantees); Rule 932NY (Letters 
of Authorization).
    \9\ See Rule 961(f)(2) (providing that a Guarantor may ``change 
the give up to another Clearing Member that has agreed to be the 
give up on the subject trade, provided such Clearing Member has 
notified the Exchange and the executing ATP Holder in writing of its 
intent to accept the trade'').
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    Beginning in early 2018, certain Clearing Firms (in conjunction 
with the Securities Industry and Financial Markets Association 
(``SIFMA'')) expressed concerns related to the process by which 
executing brokers on U.S. options exchanges (the ``Exchanges'') are 
allowed to designate or `give up' a clearing firm for purposes of 
clearing particular transactions. The SIFMA-affiliated Clearing Members 
indicated that the Federal Reserve has

[[Page 49450]]

recently identified the current give-up process as a significant source 
of risk for clearing firms. SIFMA-affiliated Clearing Members 
subsequently requested that the Exchanges alleviate this risk by 
amending Exchange rules governing the give up process.\10\
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    \10\ Cboe Exchange, Inc. (``CBOE'') recently filed to amend its 
give up procedure to require CBOE Trading Permit Holders (each a 
``TPH'') to receive written authorization from a Clearing TPH 
(``CTPH'') before it may give up that CTPH. See Securities and 
Exchange Act Release No. 83872 (August 17, 2018), 83 FR 42751 
(August 23, 2018) (SR-CBOE-2018-55). The Exchange's proposal leads 
to the same result of providing Clearing Members the ability to 
control risk, but it differs in process.
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Proposed Amendment to Rules 961 and 933NY
    The Exchange proposes to amend Rule 961 to provide a means for a 
Designated Give Up to opt out of acting as the give up for certain ATP 
Holders. As proposed, Rule 961(b)(4) would be revised to provide that 
the Exchange would ``accept instruction from a Clearing Member not to 
permit an ATP Holder to designate the Clearing Member as the Designated 
Give Up.'' The Exchange further proposes to add language to Rule 
961(b)(7) to provide that ``[i]f a Clearing Member no longer wants to 
be a Designated Give Up of a particular ATP Holder, the Clearing Member 
must notify the Exchange, in a form and manner prescribed by the 
Exchange.'' In practice, a Clearing Member that has been designated as 
the Designated Give Up need only tell the Exchange that it refuses this 
designation.
    Consistent with this proposed change, the Exchange also proposes to 
amend Rule 933NY(f) regarding the responsibilities of Floor Brokers to 
maintain error accounts ``for the purposes of correcting bona fide 
errors, as provided in Rule 960.'' As proposed, the Exchange would 
specify that ``it will not be a violation of this provision if a trade 
is transferred away from an error account through the CMTA process at 
OCC.'' \11\ This additional language would enable an executing ATP 
Holder that has executed an order to CMTA that order through its own 
clearing relationship. For example, assume a Floor Broker executes a 
trade giving up Firm A (a Clearing Member that is one of its Designated 
Give Ups) and, after the execution, the Floor Broker is informed that a 
portion of the trade needs to be changed to give-up Firm B (a Clearing 
Member that is not one of the Floor Broker's Designated Give Ups). The 
proposed language would enable the Floor Broker to CMTA the trade to 
Firm B through its own clearing arrangement (i.e., error account/Letter 
of Authorization) rather than nullifying or busting the trade.
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    \11\ See proposed Rule 933NY(f).
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Implementation
    The Exchange proposes to announce the implementation date of the 
proposed rule change via Trader Notice, to be published no later than 
thirty (30) days following Commission approval. The implementation date 
will be no later than sixty (60) days following Commission approval. 
This additional time would afford the Exchange and ATP Holders the time 
to make any changes current give up designations.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \12\ of 
the Act, in general, and furthers the objectives of Section 
6(b)(5),\13\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanisms of a free and open 
market and a national market system.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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    Particularly, as discussed above, several Clearing Firms affiliated 
with SIFMA have recently expressed concerns relating to the current 
give up process that permits ATP Holders to identify any Clearing 
Members as a Designated Give Up for purposes of clearing particular 
transactions. Also, as noted above, the Clearing Members have relayed 
that the Federal Reserve has recently identified the current give-up 
process (i.e., a process that lacks authorization) as a significant 
source of risk for clearing firms. The Exchange believes the proposed 
changes to Rule 961 would help alleviate this risk by enabling Clearing 
Members to refuse to act as a Designated Give Up for certain ATP 
Holders, which would afford Clearing Members a measure of control. The 
Exchange believes its proposal addresses concerns raised by Clearing 
Members, while maintaining the basic give up process. The Exchange does 
not anticipate Clearing Members to routinely refuse the role of 
Designated Give Up, but rather to utilize this option only when there 
is a valid reason and good faith basis to do so. The Exchange notes 
that Clearing Member would still have the ability to reject trades on 
an ad hoc basis for ATP Holders for which it has not refused to be a 
Designated Give Up. Accordingly, the Exchange believes the proposed 
rule change is reasonable and continues to provide certainty that a 
Clearing Member would be responsible for a trade, which protects 
investors and the public interest.
    The Exchange also believes that the proposed change to Rule 933NY 
would protect investors because it would permit an executing ATP Holder 
to utilize its error account to CMTA an order through its own clearing 
relationship. This would preserve executions while accommodating the 
proposed rule change that could result in an executing ATP Holder not 
being permissioned to for a particular give-up.
    Thus, this proposal would foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system.

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

    The Exchange does not believe that this proposed rule change would 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange does not believe 
that the proposed rule change would impose an unnecessary burden on 
intramarket competition because it would apply equally to all similarly 
situated ATP Holders. The Exchange also notes that, should the proposed 
changes make the Exchange more attractive for trading, market 
participants trading on other exchanges can always elect to become ATP 
Holders on the Exchange to take advantage of the trading opportunities.

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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or

[[Page 49451]]

    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEAMER-2018-44 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAMER-2018-44. 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 website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549, on official business days between the hours of 10 a.m. and 3 
p.m. Copies of the filing also will be available for inspection and 
copying at the principal office of the Exchange. All comments received 
will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEAMER-2018-44, and should be 
submitted on or before October 22, 2018.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21233 Filed 9-28-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Notices 49449

Section 17A of the Act 86 and the rules II. Self-Regulatory Organization’s Holder must identify. Similarly, should
and regulations thereunder. Statement of the Purpose of, and an ATP Holder no longer want the
It Is Therefore Ordered, pursuant to Statutory Basis for, the Proposed Rule ability to give up a particular Designated
Section 19(b)(2) of the Act, that Change Give Up, the ATP Holder informs the
proposed rule change SR–FICC–2018– In its filing with the Commission, the Exchange in writing.
self-regulatory organization included Rule 961 also requires that the
007 be, and hereby is, APPROVED.87
statements concerning the purpose of, Exchange notify a Clearing Member, in
For the Commission, by the Division of writing and as soon as practicable, of
and basis for, the proposed rule change
Trading and Markets, pursuant to delegated each ATP Holder that has identified it
and discussed any comments it received
authority.88 as a Designated Give Up. However, the
on the proposed rule change. The text
Eduardo A. Aleman, of those statements may be examined at Exchange will not accept any
Assistant Secretary. the places specified in Item IV below. instructions from a Clearing Member to
[FR Doc. 2018–21235 Filed 9–28–18; 8:45 am] The Exchange has prepared summaries, prohibit an ATP Holder from
set forth in sections A, B, and C below, designating the Clearing Member as a
BILLING CODE 8011–01–P
Designated Give Up. Additionally, there
of the most significant parts of such
is no subjective evaluation of an ATP
statements.
Holder’s list of Designated Give Ups by
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s the Exchange. The Rule does, however,
COMMISSION Statement of the Purpose of, and the provide that a Designated Give Up may
Statutory Basis for, the Proposed Rule determine to not accept a trade on
[Release No. 34–84285; File No. SR– Change which its name was given up so long as
NYSEAMER–2018–44] it believes in good faith that it has a
1. Purpose
valid reason not to accept the trade.7
Self-Regulatory Organizations; NYSE The purpose of this filing is to modify The Rule defines ‘‘Guarantor’’ as a
American LLC; Notice of Filing of Rule 961 regarding the Give Up of a Clearing Member that has issued a
Proposed Rule Change To Modify Rule Clearing Member 4 by ATP Holders and Letter of Guarantee or Letter of
961 Regarding the Give Up of a to make conforming changes to Rule Authorization for the executing ATP
Clearing Member by ATP Holders and 933NY. Holder, pursuant to Rules of the
Conforming Changes to Rule 933NY Exchange 8 that is in effect at the time
Rule 961: Current Process To Give Up
a Clearing Member of the execution of the applicable trade.
September 25, 2018. An executing ATP Holder may give up
Pursuant to Section 19(b)(1) 1 of the In 2015, the Exchange adopted its its Guarantor without such Guarantor
Securities Exchange Act of 1934 (the current ‘‘give up’’ procedure for ATP being a ‘‘Designated Give Up.’’
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Holders executing transactions on the Additionally, Rule 924NY provides that
notice is hereby given that, on Exchange.5 Per Rule 961, an ATP Holder a Letter of Guarantee is required to be
September 11, 2018, NYSE American may give up a ‘‘Designated Give Up’’ or issued and filed by each Clearing
LLC (the ‘‘Exchange’’ or ‘‘NYSE its ‘‘Guarantor,’’ as defined in the Rule Member through which a Market Maker
American’’) filed with the Securities and described below. clears transactions. Accordingly, a
The Rule defines ‘‘Designated Give Market Maker is enabled to give up only
and Exchange Commission (the
Up’’ as any Clearing Member that an a Guarantor that had executed a Letter
‘‘Commission’’) the proposed rule
ATP Holder (other than a Market of Guarantee on its behalf pursuant to
change as described in Items I and II
Maker 6) identifies to the Exchange, in Rule 924NY; a Market Maker does not
below, which Items have been prepared
writing, as a Clearing Member the ATP need to identify any Designated Give
by the self-regulatory organization. The
Holder requests the ability to give up. Ups. Like Designated Give Ups,
Commission is publishing this notice to
To designate a ‘‘Designated Give Up,’’ Guarantors likewise have the ability to
solicit comments on the proposed rule
an ATP Holder must submit written reject a trade.9
change from interested persons.
notification to the Exchange. Beginning in early 2018, certain
I. Self-Regulatory Organization’s Specifically, the Exchange uses a Clearing Firms (in conjunction with the
Statement of the Terms of Substance of standardized form (‘‘Notification Securities Industry and Financial
the Proposed Rule Change Form’’). An ATP Holder may currently Markets Association (‘‘SIFMA’’))
designate any Clearing Member as a expressed concerns related to the
The Exchange proposes to modify Designated Give Up. Additionally, there process by which executing brokers on
Rule 961 regarding the Give Up of a is no minimum or maximum number of U.S. options exchanges (the
Clearing Member by ATP Holders and Designated Give Ups that an ATP ‘‘Exchanges’’) are allowed to designate
proposes conforming changes to Rule or ‘give up’ a clearing firm for purposes
933NY. The proposed rule change is 4 Rule 900.2NY(11) defines ‘‘Clearing Member’’ as
of clearing particular transactions. The
available on the Exchange’s website at an Exchange ATP Holder which has been admitted SIFMA-affiliated Clearing Members
to membership in the Options Clearing Corporation
www.nyse.com, at the principal office of pursuant to the provisions of the Rules of the indicated that the Federal Reserve has
the Exchange, and at the Commission’s Options Clearing Corporation.
Public Reference Room. 5 See Securities and Exchange Act Release No. 7 See Rule 961(f)(1) (setting forth procedures for

75642 (August 7, 2015), 80 FR 48594 (August 13, rejecting a trade). An example of a valid reason to
86 15 2015) (SR–NYSEMKT–2015–55). reject a trade may be that the Designated Give Up
U.S.C. 78q–1. does not have a customer for that particular trade.
amozie on DSK3GDR082PROD with NOTICES

6 For purposes of this rule, references to ‘‘Market
87 In approving the proposed rule change, the 8 See Rule 924NY (Letters of Guarantees); Rule
Maker’’ refer to ATP Holders acting in the capacity
Commission considered the proposal’s impact on 932NY (Letters of Authorization).
of a Market Maker and include all Exchange Market
efficiency, competition, and capital formation. 15
Maker capacities e.g., Lead Market Makers. As 9 See Rule 961(f)(2) (providing that a Guarantor
U.S.C. 78c(f).
88 17 CFR 200.30–3(a)(12).
explained below, Market Makers give up Guarantors may ‘‘change the give up to another Clearing
that have executed a Letter of Guarantee on behalf Member that has agreed to be the give up on the
1 15 U.S.C. 78s(b)(1).
of the Marker Maker, pursuant to Rule 932NY; subject trade, provided such Clearing Member has
2 15 U.S.C. 78a.
Market Makers need not give up Designated Give notified the Exchange and the executing ATP
3 17 CFR 240.19b–4. Ups. Holder in writing of its intent to accept the trade’’).

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49450 Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Notices

recently identified the current give-up Firm B through its own clearing Up. Accordingly, the Exchange believes
process as a significant source of risk for arrangement (i.e., error account/Letter of the proposed rule change is reasonable
clearing firms. SIFMA-affiliated Authorization) rather than nullifying or and continues to provide certainty that
Clearing Members subsequently busting the trade. a Clearing Member would be
requested that the Exchanges alleviate responsible for a trade, which protects
Implementation
this risk by amending Exchange rules investors and the public interest.
governing the give up process.10 The Exchange proposes to announce
The Exchange also believes that the
the implementation date of the
Proposed Amendment to Rules 961 and proposed change to Rule 933NY would
proposed rule change via Trader Notice,
933NY protect investors because it would
to be published no later than thirty (30)
permit an executing ATP Holder to
The Exchange proposes to amend days following Commission approval.
utilize its error account to CMTA an
Rule 961 to provide a means for a The implementation date will be no
order through its own clearing
Designated Give Up to opt out of acting later than sixty (60) days following
relationship. This would preserve
as the give up for certain ATP Holders. Commission approval. This additional
As proposed, Rule 961(b)(4) would be time would afford the Exchange and executions while accommodating the
revised to provide that the Exchange ATP Holders the time to make any proposed rule change that could result
would ‘‘accept instruction from a changes current give up designations. in an executing ATP Holder not being
Clearing Member not to permit an ATP permissioned to for a particular give-up.
2. Statutory Basis Thus, this proposal would foster
Holder to designate the Clearing
Member as the Designated Give Up.’’ The proposed rule change is cooperation and coordination with
The Exchange further proposes to add consistent with Section 6(b) 12 of the persons engaged in facilitating
language to Rule 961(b)(7) to provide Act, in general, and furthers the transactions in securities, and remove
that ‘‘[i]f a Clearing Member no longer objectives of Section 6(b)(5),13 in impediments to and perfect the
wants to be a Designated Give Up of a particular, in that it is designed to mechanism of a free and open market
particular ATP Holder, the Clearing prevent fraudulent and manipulative and a national market system.
Member must notify the Exchange, in a acts and practices, to promote just and
equitable principles of trade, to foster B. Self-Regulatory Organization’s
form and manner prescribed by the Statement on Burden on Competition
Exchange.’’ In practice, a Clearing cooperation and coordination with
Member that has been designated as the persons engaged in facilitating The Exchange does not believe that
Designated Give Up need only tell the transactions in securities, and to remove this proposed rule change would
Exchange that it refuses this impediments to and perfect the impose any burden on competition not
designation. mechanisms of a free and open market necessary or appropriate in furtherance
Consistent with this proposed change, and a national market system. of the purposes of the Act. The
the Exchange also proposes to amend Particularly, as discussed above, Exchange does not believe that the
Rule 933NY(f) regarding the several Clearing Firms affiliated with proposed rule change would impose an
responsibilities of Floor Brokers to SIFMA have recently expressed unnecessary burden on intramarket
maintain error accounts ‘‘for the concerns relating to the current give up competition because it would apply
purposes of correcting bona fide errors, process that permits ATP Holders to equally to all similarly situated ATP
as provided in Rule 960.’’ As proposed, identify any Clearing Members as a Holders. The Exchange also notes that,
the Exchange would specify that ‘‘it will Designated Give Up for purposes of should the proposed changes make the
not be a violation of this provision if a clearing particular transactions. Also, as Exchange more attractive for trading,
trade is transferred away from an error noted above, the Clearing Members have market participants trading on other
account through the CMTA process at relayed that the Federal Reserve has exchanges can always elect to become
OCC.’’ 11 This additional language recently identified the current give-up ATP Holders on the Exchange to take
would enable an executing ATP Holder process (i.e., a process that lacks advantage of the trading opportunities.
that has executed an order to CMTA that authorization) as a significant source of
order through its own clearing risk for clearing firms. The Exchange C. Self-Regulatory Organization’s
relationship. For example, assume a believes the proposed changes to Rule Statement on Comments on the
Floor Broker executes a trade giving up 961 would help alleviate this risk by Proposed Rule Change Received From
Firm A (a Clearing Member that is one enabling Clearing Members to refuse to Members, Participants, or Others
of its Designated Give Ups) and, after act as a Designated Give Up for certain No written comments were solicited
the execution, the Floor Broker is ATP Holders, which would afford or received with respect to the proposed
informed that a portion of the trade Clearing Members a measure of control. rule change.
needs to be changed to give-up Firm B The Exchange believes its proposal
(a Clearing Member that is not one of addresses concerns raised by Clearing III. Date of Effectiveness of the
the Floor Broker’s Designated Give Ups). Members, while maintaining the basic Proposed Rule Change and Timing for
The proposed language would enable give up process. The Exchange does not Commission Action
the Floor Broker to CMTA the trade to anticipate Clearing Members to
routinely refuse the role of Designated Within 45 days of the date of
10 Cboe Exchange, Inc. (‘‘CBOE’’) recently filed to Give Up, but rather to utilize this option publication of this notice in the Federal
amend its give up procedure to require CBOE only when there is a valid reason and Register or within such longer period
Trading Permit Holders (each a ‘‘TPH’’) to receive
good faith basis to do so. The Exchange up to 90 days (i) as the Commission may
amozie on DSK3GDR082PROD with NOTICES

written authorization from a Clearing TPH designate if it finds such longer period
(‘‘CTPH’’) before it may give up that CTPH. See notes that Clearing Member would still
Securities and Exchange Act Release No. 83872 have the ability to reject trades on an ad to be appropriate and publishes its
(August 17, 2018), 83 FR 42751 (August 23, 2018) hoc basis for ATP Holders for which it reasons for so finding or (ii) as to which
(SR–CBOE–2018–55). The Exchange’s proposal
has not refused to be a Designated Give the self-regulatory organization
leads to the same result of providing Clearing consents, the Commission will:
Members the ability to control risk, but it differs in
process. 12 15 U.S.C. 78f(b). (A) By order approve or disapprove
11 See proposed Rule 933NY(f). 13 15 U.S.C. 78f(b)(5). the proposed rule change, or

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(B) institute proceedings to determine For the Commission, by the Division of (Catalog of Federal Domestic Assistance
whether the proposed rule change Trading and Markets, pursuant to delegated Number 59008)
should be disapproved. authority.14
James Rivera,
Eduardo A. Aleman,
IV. Solicitation of Comments Assistant Secretary.
Associate Administrator for Disaster
Assistance.
Interested persons are invited to [FR Doc. 2018–21233 Filed 9–28–18; 8:45 am]
[FR Doc. 2018–21251 Filed 9–28–18; 8:45 am]
submit written data, views, and BILLING CODE 8011–01–P
arguments concerning the foregoing, BILLING CODE 8025–01–P

including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of SMALL BUSINESS ADMINISTRATION
SMALL BUSINESS ADMINISTRATION
the following methods:
[Disaster Declaration #15698 and #15699;
Electronic Comments [Disaster Declaration #15696 and #15697; South Carolina Disaster Number SC–00054]
• Use the Commission’s internet NORTH CAROLINA Disaster Number NC–
00099] Presidential Declaration of a Major
comment form (http://www.sec.gov/
rules/sro.shtml); or Disaster for the State of South Carolina
Presidential Declaration Amendment of
• Send an email to rule-comments@ a Major Disaster for the State of North AGENCY: U.S. Small Business
sec.gov. Please include File Number SR– Carolina
NYSEAMER–2018–44 on the subject Administration.
line. AGENCY: U.S. Small Business ACTION: Notice.

Paper Comments Administration.
SUMMARY: This is a Notice of the
• Send paper comments in triplicate ACTION: Amendment 2. Presidential declaration of a major
to Secretary, Securities and Exchange disaster for the State of South Carolina
SUMMARY: This is an amendment of the (FEMA–4394–DR), dated 09/21/2018.
Commission, 100 F Street NE,
Presidential declaration of a major Incident: Hurricane Florence.
Washington, DC 20549–1090.
disaster for the State of North Carolina
All submissions should refer to File Incident Period: 09/08/2018 and
(FEMA—4393—DR), dated 09/14/2018.
Number SR–NYSEAMER–2018–44. This continuing.
Incident: Hurricane Florence.
file number should be included on the DATES: Issued on 09/21/2018.
subject line if email is used. To help the Incident Period: 09/07/2018 and
continuing. Physical Loan Application Deadline
Commission process and review your
Date: 11/20/2018.
comments more efficiently, please use DATES: Issued on 09/24/2018. Economic Injury (EIDL) Loan
only one method. The Commission will Physical Loan Application Deadline Application Deadline Date: 06/21/2019.
post all comments on the Commission’s Date: 11/13/2018.
internet website (http://www.sec.gov/ ADDRESSES: Submit completed loan
Economic Injury (EIDL) Loan applications to: U.S. Small Business
rules/sro.shtml). Copies of the Application Deadline Date: 06/14/2019.
submission, all subsequent Administration, Processing and
amendments, all written statements ADDRESSES: Submit completed loan Disbursement Center, 14925 Kingsport
with respect to the proposed rule applications to: U.S. Small Business Road, Fort Worth, TX 76155.
change that are filed with the Administration, Processing and FOR FURTHER INFORMATION CONTACT:
Commission, and all written Disbursement Center, 14925 Kingsport A. Escobar, Office of Disaster
communications relating to the Road, Fort Worth, TX 76155. Assistance, U.S. Small Business
proposed rule change between the FOR FURTHER INFORMATION CONTACT: Administration, 409 3rd Street SW,
Commission and any person, other than A. Escobar, Office of Disaster Suite 6050, Washington, DC 20416,
those that may be withheld from the Assistance, U.S. Small Business (202) 205–6734.
public in accordance with the Administration, 409 3rd Street SW, SUPPLEMENTARY INFORMATION: Notice is
provisions of 5 U.S.C. 552, will be Suite 6050, Washington, DC 20416, hereby given that as a result of the
available for website viewing and (202) 205–6734. President’s major disaster declaration on
printing in the Commission’s Public SUPPLEMENTARY INFORMATION: The notice 09/21/2018, applications for disaster
Reference Room, 100 F Street NE, of the President’s major disaster loans may be filed at the address listed
Washington, DC 20549, on official declaration for the State of NORTH above or other locally announced
business days between the hours of 10 CAROLINA, dated 09/14/2018, is locations.
a.m. and 3 p.m. Copies of the filing also hereby amended to include the The following areas have been
will be available for inspection and following areas as adversely affected by determined to be adversely affected by
copying at the principal office of the the disaster: the disaster:
Exchange. All comments received will Primary Counties (Physical Damage and
be posted without change. Persons Primary Counties (Physical Damage and
Economic Injury Loans): Hoke, Economic Injury Loans): Dillon,
submitting comments are cautioned that Hyde, Johnston, Lee, Moore, Pitt,
we do not redact or edit personal Horry, Marion, Marlboro.
Richmond, Scotland, Wilson. Contiguous Counties (Economic Injury
identifying information from comment
Contiguous Counties (Economic Injury Loans Only):
submissions. You should submit only
Loans Only):
amozie on DSK3GDR082PROD with NOTICES

information that you wish to make South Carolina: Chesterfield,
available publicly. All submissions North Carolina: Anson, Dare, Darlington, Florence, Georgetown,
should refer to File Number SR– Edgecombe, Franklin, Montgomery, Williamsburg.
NYSEAMER–2018–44, and should be Nash, Randolph, Stanly, Tyrrell. North Carolina: Anson, Brunswick,
submittedon or before October 22, 2018. South Carolina: Chesterfield. Columbus, Richmond, Robeson,
All other information in the original Scotland.
14 17 CFR 200.30–3(a)(12). declaration remains unchanged. The Interest Rates are:

VerDate Sep<11>2014 17:50 Sep 28, 2018 Jkt 247001 PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 E:\FR\FM\01OCN1.SGM 01OCN1
Document Created: 2018-09-29 04:26:41
Document Modified: 2018-09-29 04:26:41
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		83 FR 49449