[Federal Register Volume 81, Number 154 (Wednesday, August 10, 2016)]
[Notices]
[Pages 52917-52920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18908]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78477; File No. 4-668]
Joint Industry Plan; Notice of Filing and Immediate Effectiveness
of Amendment No. 4 to the National Market System Plan Governing the
Process of Selecting a Plan Processor and Developing a Plan for the
Consolidated Audit Trail by BATS Exchange, Inc., BATS-Y Exchange, Inc.,
BOX Options Exchange LLC, C2 Options Exchange, Incorporated, Chicago
Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc.,
EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory
Authority, Inc., International Securities Exchange, LLC, ISE Gemini,
LLC, ISE Mercury, LLC, Miami International Securities Exchange LLC,
NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, The NASDAQ Stock Market LLC,
National Stock Exchange, Inc., New York Stock Exchange LLC, NYSE MKT
LLC, and NYSE Arca, Inc.
August 4, 2016.
I. Introduction
Pursuant to Section 11A of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that,
on July 14, 2016, BATS Exchange, Inc., BATS-Y Exchange, Inc., BOX
Options Exchange LLC, C2 Options Exchange, Incorporated, Chicago Board
Options Exchange, Incorporated, Chicago Stock Exchange, Inc., EDGA
Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory
Authority, Inc., International Securities Exchange, LLC,
[[Page 52918]]
ISE Gemini, LLC, ISE Mercury, Miami International Securities Exchange
LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, The NASDAQ Stock Market
LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, NYSE
MKT LLC, and NYSE Arca, Inc. (collectively, ``SROs'' or
``Participants''), filed with the Securities and Exchange Commission
(the ``Commission'') a proposal to amend the Plan Governing the Process
of Selecting a Plan Processor and Developing a Plan for the
Consolidated Audit Trail (the ``Selection Plan'').\3\
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\1\ 15 U.S.C. 78k-1.
\2\ 17 CFR 242.608.
\3\ See Letter from the Participants to Brent J. Fields,
Secretary, Commission, dated July 13, 2016.
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The SROs propose to amend the Selection Plan to add the Investors'
Exchange, LLC (``IEX'') as a Participant to the Selection Plan. The
SROs also propose to replace references in the Plan to ``Nasdaq OMX BX,
Inc.'', ``NASDAQ OMX PHLX LLC'', ``BATS Exchange, Inc.'', ``BATS-Y
Exchange, Inc.'', ``EDGA Exchange, Inc.'', and ``EDGX Exchange, Inc.''
with references to ``NASDAQ BX, Inc.'', ``NASDAQ PHLX LLC'', ``Bats BZX
Exchange, Inc.'', ``Bats BYX Exchange, Inc.'', ``Bats EDGA Exchange,
Inc.'', and ``Bats EDGX Exchange, Inc.'', respectively. In each case,
the relevant exchange filed proposed rule changes to implement the name
change.\4\ A copy of the proposed amendment to the Selection Plan
(``Amendment No. 4'') is attached as Exhibit A hereto. The Commission
is publishing this notice to solicit comments from interested persons
on proposed Amendment No. 4 to the Selection Plan.
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\4\ Securities Exchange Act Release Nos. 76656 (December 15.
2015), 80 FR 79381 (December 21, 2015) (for NASDAQ BX, Inc.); 76654
(December 15, 2015), 80 FR 79396 (December 21, 2015) (for NASDAQ
PHLX LLC); 77307 (March 7, 2016), 81 FR 12996 (March 11, 2016) (for
Bats BZX Exchange, Inc.); 77308, 81 FR 12975 (March 11, 2016) (for
Bats BYX Exchange, Inc.); 77299, 81 FR 12759 (March 10, 2016) (for
Bats EDGA Exchange, Inc.); and 77298 (March 4, 2016), 81 FR 12757
(March 10, 2016) (for Bats EDGX Exchange, Inc.).
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II. Description of the Plan
Set forth in this Section II is the statement of the purpose of
Amendment No. 4 to the Selection Plan, along with the information
required by Rule 608(a)(4) and (5) under the Exchange Act,\5\ as
prepared and submitted by the SROs to the Commission.\6\
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\5\ See 17 CFR 242.608(a)(4) and (a)(5).
\6\ See Letter from the SROs to Brent J. Fields, Secretary,
Commission, dated July 13, 2016.
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* * * * *
Background
The Selection Plan was initially filed with the Commission on
September 4, 2013,\7\ approved on February 21, 2014,\8\ and
subsequently amended three times.\9\ The Selection Plan governs the
process for how the Participants will evaluate and select a Plan
Processor and develop the National Market System Plan Governing the
Consolidated Audit Trail Pursuant to Rule 613 of Regulation NMS under
the Exchange Act (``CAT NMS Plan'').
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\7\ See Securities Exchange Act Release No. 70892 (November 15,
2013), 78 FR 69910 (November 21, 2013).
\8\ See Securities Exchange Act Release No. 71596 (February 21,
2014), 79 FR 11152 (February 27, 2014).
\9\ See Securities Exchange Act Release No. 75192 (June 17,
2015), 80 FR. 36028 (June 23, 2015); Securities Exchange Act Release
No. 75980 (September 24, 2015), 80 FR 58796 (September 30, 2015);
and Securities Exchange Act Release No. 77917 (May 25, 2016), 81 FR
35072 (June 1, 2016).
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Requirements Pursuant to Rule 608(a)
A. Description of the Amendments to the Selection Plan
On June 17, 2016, the Commission approved IEX's registration as a
national securities exchange pursuant to Section 6 of the Exchange
Act.\10\ Pursuant to Section II(B) of the Selection Plan, the
Participants propose amending the Selection Plan to add IEX as a
Participant thereto. Section II(B) of the Selection Plan states:
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\10\ See Securities Exchange Act Release No. 78101 (June 17,
2016), 81 FR 41142 (June 23, 2016).
Any entity approved by the SEC as a national securities exchange
or national securities association under the Exchange Act after the
effectiveness of the Plan shall become a Participant by satisfying
each of the following requirements: (1) effecting an amendment to
the Plan by executing a copy of the Plan as then in effect (with the
only change being the addition of the new Participant's name in
Section II of the Plan) and submitting such amendment to the SEC for
approval; and (2) providing each then-current Participant with a
copy of such executed Plan. The amendment shall be effective when it
is approved by the SEC in accordance with SEC Rule 608 or otherwise
becomes effective pursuant to SEC Rule 608.\11\
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\11\ See Selection Plan, Section II(B), available at
www.catnmsplan.com.
Accordingly, IEX has executed a copy of the Selection Plan as currently
in effect, with the addition of IEX's name to Section II of the
Selection Plan, and provided each existing Participant a copy of the
executed Selection Plan. With this submission, the Participants submit
the executed Selection Plan to the Commission for approval on behalf of
IEX. A copy of the executed version of the Selection Plan is attached
hereto.\12\
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\12\ See Exhibit B.
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The Participants also propose to amend the Selection Plan to
replace references to ``NASDAQ OMX BX, Inc.'', ``NASDAQ OMX PHLX LLC'',
``BATS Exchange, Inc.'', ``BATS-Y Exchange, Inc.'', ``EDGA Exchange,
Inc.'', and ``EDGX Exchange, Inc.'' with references to ``NASDAQ BX,
Inc.'', ``NASDAQ PHLX LLC'', ``Bats BZX Exchange, Inc.'', ``Bats BYX
Exchange, Inc.'', ``Bats EDGA Exchange, Inc.'', and ``Bats EDGX
Exchange, Inc.'', respectively. In each case, the relevant exchange
filed proposed rule changes to implement the name change.\13\
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\13\ See note 4, supra.
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The proposed amendments to the text of the Selection Plan are set
forth in Exhibit A.
B. Governing or Constituent Documents
Not applicable.
C. Implementation of Amendment
The terms of the proposed amendment will become effective upon
filing pursuant to Rule 608(b)(3)(iii) of the Exchange Act because it
involves solely technical or ministerial matters. At any time within
sixty days of the filing of this amendment, the Commission may
summarily abrogate the amendment and require that it be refiled
pursuant to paragraph (b)(1) of Rule 608,\14\ if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors or the maintenance of fair
and orderly markets, to remove impediments to, and perfect the
mechanisms of, a national market system or otherwise in furtherance of
the purposes of the Exchange Act.
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\14\ The Commission notes that if it abrogated an amendment, the
Commission could require the amendment to be refiled in accordance
with subparagraph (a)(1) of Rule 608. See 17 CFR 242.608(b)(3)(iii).
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D. Development and Implementation Phases
Not applicable.
E. Analysis of Impact on Competition
Not applicable.
F. Written Understanding or Agreements Relating to Interpretation of,
or Participation in, Plan
Not applicable.
G. Statement That the Amendments Have Been Approved by the Plan
Sponsors
The Selection Plan provides that, except with respect to the
addition of new Participants, amendments to the Selection Plan shall be
effected by
[[Page 52919]]
means of a written amendment that: (1) sets forth the change, addition,
or deletion; (2) is executed by over two-thirds of the Participants;
and (3) is approved by the SEC pursuant to Rule 608, or otherwise
becomes effective under Rule 608.\15\ The proposed amendment has been
executed by all of the Participants and has consequently been approved
by the SROs.
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\15\ See Notice of Selection Plan, supra note 5.
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With respect to new Participants, an amendment to the Selection
Plan may be effected by the new national securities exchange or
national securities association in accordance with Section II of the
Selection Plan. As discussed above, IEX has executed the existing
version of the Selection Plan, with IEX's name added to Section II,
provided each existing Participant a copy of the executed Selection
Plan, and is providing the Commission with a copy of the executed
version with this submission.
H. Terms and Conditions of Access
Not applicable.
I. Method of Determination and Imposition, and Amount of, Fees and
Charges
Not applicable.
J. Method and Frequency of Processor Evaluation
Not applicable.
K. Dispute Resolution
Not applicable.
III. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the Amendment No.
4 to the Selection Plan 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 4-668 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number 4-668. 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 Amendment to the Plan that are filed
with the Commission, and all written communications relating to the
Amendment to the 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 10:00 a.m. and
3:00 p.m. Copies of the submission will also be available for
inspection and copying at the Participants' principal offices. 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 4-668 and should be submitted
on or before August 31, 2016.
By the Commission.
Robert W. Errett,
Deputy Secretary.
Exhibit A
Proposed Amendment Text
Additions italicized; deletions bracketed.
Plan Processor Evaluation and Selection Plan
II. Participants
(A) List of Participants
The Participants are as follows:
(1) [BATS] Bats BYX Exchange, Inc.
(2) [BATS Y-Exchange,] Bats BZX Exchange, Inc.
(3) Bats EDGA Exchange, Inc.
(4) Bats EDGX Exchange, Inc.
([3] 5) BOX Options Exchange LLC
([4] 6) C2 Options Exchange, Incorporated
([5] 7) Chicago Board Options Exchange, Incorporated
([6] 8) Chicago Stock Exchange, Inc.
[(7) EDGA Exchange, Inc.]
[(8) EDGX Exchange, Inc.]
(9) Financial Industry Regulatory Authority, Inc.
(10) International Securities Exchange, LLC
(11) Investors' Exchange, LLC
([11] 12) ISE Gemini, LLC
([12] 13) ISE Mercury, LLC
([13] 14) Miami International Securities Exchange LLC
([14] 15) NASDAQ [OMX] BX, Inc.
([15] 16) NASDAQ [OMX] PHLX LLC
([16] 17) The Nasdaq Stock Market LLC
([17] 18) National Stock Exchange, Inc.
([18] 19) New York Stock Exchange LLC
([19] 20) NYSE MKT LLC
([20] 21) NYSE Arca, Inc.
* * * * *
BATS BYX EXCHANGE, INC.
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BATS EDGA EXCHANGE, INC.
BY:--------------------------------------------------------------------
BOX OPTIONS EXCHANGE LLC
BY:--------------------------------------------------------------------
CHICAGO BOARD OPTIONS EXCHANGE, INCORPORATED
BY:--------------------------------------------------------------------
[EDGA EXCHANGE, INC.]
BY:--------------------------------------------------------------------
FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC.
BY:--------------------------------------------------------------------
[ISE GEMINI, LLC] INVESTORS' EXCHANGE, LLC
BY:--------------------------------------------------------------------
BATS BZX [Y-EXCHANGE] EXCHANGE, INC.
BY:--------------------------------------------------------------------
BATS EDGA EXCHANGE, INC.
BY:--------------------------------------------------------------------
C2 OPTIONS EXCHANGE, INCORPORATED
BY:--------------------------------------------------------------------
CHICAGO STOCK EXCHANGE, INC.
BY:--------------------------------------------------------------------
[EDGA EXCHANGE, INC.]
BY:--------------------------------------------------------------------
INTERNATIONAL SECURITIES EXCHANGE, LLC
BY:--------------------------------------------------------------------
[ISE GEMINI, LLC] ISE
BY:--------------------------------------------------------------------
[MIAMI INTERNATIONAL SECURITIES EXCHANGE LLC] ISE MERCURY, LLC
BY:--------------------------------------------------------------------
NASDAQ [OMX PHLX LLC] BX, INC.
BY:--------------------------------------------------------------------
[NATIONAL STOCK EXCHANGE, INC.] THE NASDAQ STOCK MARKET LLC
BY:--------------------------------------------------------------------
[NYSE MKT LLC] NEW YORK STOCK EXCHANGE LLC
BY:--------------------------------------------------------------------
NYSE ARCA, INC.
BY:--------------------------------------------------------------------
[NASDAQ OMX BX, INC.] MIAMI INTERNATIONAL SECURITIES EXCHANGE LLC
BY:--------------------------------------------------------------------
[THE] NASDAQ PHLX [STOCK MARKET] LLC
BY:--------------------------------------------------------------------
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[NEW YORK STOCK EXCHANGE LLC] NATIONAL STOCK EXCHANGE, INC.
BY:--------------------------------------------------------------------
NYSE MKT LLC [ARCA, INC.]
BY:--------------------------------------------------------------------
[FR Doc. 2016-18908 Filed 8-9-16; 8:45 am]
BILLING CODE 8011-01-P