[Federal Register Volume 78, Number 183 (Friday, September 20, 2013)]
[Rules and Regulations]
[Pages 57786-57788]
[FR Doc No: 2013-22547]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2013-0350; Directorate Identifier 2012-SW-050-AD;
Amendment 39-17583; AD 2013-19-01]
RIN 2120-AA64

Airworthiness Directives; AgustaWestland S.p.A. Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for
AgustaWestland S.p.A. (AgustaWestland) Model A119 and AW119 MKII
helicopters to require inspecting the pilot and co-pilot doors to
ensure that the windows are properly bonded within the doors. If the
windows are not properly bonded, the AD requires applying bonding to
the windows, the seals, and the window frames of the pilot and co-pilot
doors. This AD was prompted by the loss of a pilot-door window during a
test flight. The actions of this AD are intended to ensure the windows
do not detach from the doors, potentially injuring persons on the
ground and damaging the helicopter's tailboom and the tail rotor
blades.

DATES: This AD is effective October 25, 2013.
    The Director of the Federal Register approved the incorporation by
reference of a certain document listed in this AD as of October 25,
2013.

ADDRESSES: For service information identified in this AD, contact
AgustaWestland, Customer Support & Services, Via Per Tornavento 15,
21019 Somma Lombardo (VA) Italy, ATTN: Giovanni Cecchelli; telephone
39-0331-711133; fax 39 0331 711180; or at http://www.agustawestland.com/technical-bullettins. You may review the
referenced service information at the FAA, Office of the Regional
Counsel, Southwest Region, 2601 Meacham Blvd., Room 663, Fort Worth,
Texas 76137.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov or in person at the Docket Operations Office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this AD, the foreign authority's AD,
any incorporated-by-reference service information, the economic
evaluation, any comments received, and other information. The street
address for the Docket Operations Office (phone:<PHONE_NUMBER>) is U.S.
Department of Transportation, Docket Operations Office, M-30, West
Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE.,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Sharon Miles, Aviation Safety
Engineer, Regulations and Policy Group, Rotorcraft Directorate, FAA,
2601 Meacham Blvd., Fort Worth, Texas 76137; telephone<PHONE_NUMBER>;
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    On April 25, 2013, at 78 FR 24367, the Federal Register published
our notice of proposed rulemaking (NPRM), which proposed to amend 14
CFR part 39 to include an AD that would apply to AgustaWestland Model
A119 and AW119 MKII helicopters, serial numbers up to and including
14781. The NPRM proposed to require inspecting the pilot and co-pilot
doors to ensure that the windows are properly bonded within the doors.
If the windows are not properly bonded, the NPRM proposed applying
bonding to the windows, the seals, and the window frames of the pilot
and co-pilot doors. The proposed requirements were intended to ensure
the windows do not detach from the doors, potentially injuring persons
on the ground and damaging the helicopter's tailboom and the tail rotor
blades.
    The NPRM was prompted by EASA AD No. 2012-0058, dated April 3,
2012, issued by the European Aviation Safety Agency (EASA), which is
the Technical Agent for the Member States of the European Union. EASA
issued AD No. 2012-0058 to correct an unsafe condition for
AgustaWestland Model A119 and AW119 MKII helicopters. EASA advises that
the pilot-door window detached during a test flight of an AW119 MKII
helicopter. The occupant was not injured, and the helicopter was not
damaged.
    According to EASA, an investigation revealed that a ``lack of the
bonding of the seal both to the window and to the door structure''
caused the window's detachment. To address this unsafe condition,
AugustaWestland issued Bollettino Tecnico (BT) 119-47, dated March 29,
2012, and EASA issued AD 2012-0058 to require an inspection of the
bonding in the pilot and co-pilot door windows and, if there is no
bonding, applying bonding.
    If this condition is not corrected, it could lead to detachment of
the

windows from the pilot- and co-pilot doors, potentially injuring
persons on the ground and damaging the helicopter, EASA advises.

Comments

    We gave the public the opportunity to participate in developing
this AD, but we received no comments on the NPRM (78 FR 24367, April
25, 2013).

FAA's Determination

    These helicopters have been approved by the aviation authority of
Italy and are approved for operation in the United States. Pursuant to
our bilateral agreement with Italy, EASA, its technical representative,
has notified us of the unsafe condition described in the EASA AD. We
are issuing this AD because we evaluated all information provided by
EASA and determined the unsafe condition exists and is likely to exist
or develop on other helicopters of these same type designs and that air
safety and the public interest require adopting the AD requirements as
proposed.

Related Service Information

    We reviewed BT 119-47 for all AgustaWestland A119 and AW119 MKII
helicopters, which contains procedures to ensure that the pilot- and
co-pilot door windows are correctly bonded.

Costs of Compliance

    We estimate that this AD affects 65 helicopters of U.S. Registry
and that labor costs average $85 an hour. Based on these estimates, we
expect the following costs:
     Inspecting for bonding between the seals and the windows
in the internal and external sides of the junction areas requires a 0.5
work-hour for a labor cost of about $43. No parts are needed, so the
cost for the U.S. fleet totals $2,795.
     Adding the bonding material if needed requires about 1.5
work-hours for a labor cost of about $128. The cost of materials is
negligible.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on helicopters identified in this
rulemaking action.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866;
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979);
    (3) Will not affect intrastate aviation in Alaska to the extent
that it justifies making a regulatory distinction; and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared an economic evaluation of the estimated costs to comply
with this AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

2013-19-01 AgustaWestland S.p.A.: Amendment 39-17583; Docket No.
FAA-2013-0350; Directorate Identifier 2012-SW-050-AD.

 (a) Applicability

    This AD applies to AgustaWestland S.p.A. (AgustaWestland) Model
A119 and AW119 MKII helicopters, serial numbers up to and including
14781, certificated in any category.

(b) Unsafe Condition

    This AD defines the unsafe condition as a window detaching from
the pilot or co-pilot doors, which could result in damage to the
helicopter and injury to persons on the ground.

(c) Effective Date

    This AD becomes effective October 25, 2013.

(d) Compliance

    You are responsible for performing each action required by this
AD within the specified compliance time unless it has already been
accomplished prior to that time.

(e) Required Actions

    Within the next 50 hours time-in-service (TIS) or within the
next five months, whichever comes first:
    (1) Visually inspect the pilot and co-pilot doors by referencing
Figure 1 of AugustaWestland Bollettino Tecnico 119-47, dated March
29, 2012 (BT), to determine whether there is bonding between the
seal (3) and the window (4) in the internal and external side of the
seal's junction area.
    (2) If there is no bonding, before further flight, apply bonding
to the windows, seals, and window frames in accordance with the
Compliance Instructions, paragraphs 5 through 20, of the BT.

 (f) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Safety Management Group, FAA, may approve AMOCs
for this AD. Send your proposal to: Sharon Miles, Aviation Safety
Engineer, Rotorcraft Directorate, FAA, 2601 Meacham Blvd., Fort
Worth, Texas 76137; telephone<PHONE_NUMBER>; email
<EMAIL_ADDRESS>    (2) For operations conducted under a 14 CFR part 119 operating
certificate or under 14 CFR part 91, subpart K, we suggest that you
notify your principal inspector, or lacking a principal inspector,
the manager of the local flight standards district office or
certificate holding district office, before operating any aircraft
complying with this AD through an AMOC.

(g) Additional Information

    The subject of this AD is addressed in European Aviation Safety
Agency (EASA) AD No. 2012-0058, dated April 3, 2012. You may view
the EASA AD on the Internet at http://www.regulations.gov in Docket
No. FAA-2013-0350.

(h) Subject

    Joint Aircraft Service Component (JASC) Code: 5610, Flight
Compartment Windows.

 (i) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) AgustaWestland Bollettino Tecnico 119-47, dated March 29,
2012.
    (ii) Reserved.

    (3) For AgustaWestland service information identified in this
AD, contact AgustaWestland, Customer Support & Services, Via Per
Tornavento 15, 21019 Somma Lombardo (VA) Italy, ATTN: Giovanni
Cecchelli; telephone 39- 0331-711133; fax 39 0331 711180; or at
http://www.agustawestland.com/technical-bullettins.
    (4) You may view this service information at FAA, Office of the
Regional Counsel, Southwest Region, 2601 Meacham Blvd., Room 663,
Fort Worth, Texas 76137. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Fort Worth, Texas, on September 9, 2013.
Kim Smith,
Directorate Manager, Rotorcraft Directorate, Aircraft Certification
Service.
[FR Doc. 2013-22547 Filed 9-19-13; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 84, Number 224 (Wednesday, November 20, 2019)]
[Notices]
[Pages 64064-64066]
[FR Doc No: 2019-25164]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2017-0720; FRL-10001-76]

Pesticide Registration Review; Pesticide Dockets Opened for
Review and Comment; Notice of Availability

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: This notice announces the availability of the EPA's
preliminary work plans for the following chemicals: Pyrimethanil and
saflufenacil. With this document, the EPA is opening the public comment
period for registration review for these chemicals. This notice also
announces the availability of EPA's draft ecological risk assessment
for the pesticide pyrimethanil and opens a 60-day public comment period
on the draft risk assessment. EPA is also announcing that it will not
be opening a docket, nor conducting registration review for
meptyldinocap.

DATES: Comments must be received on or before January 21, 2020.

ADDRESSES: Submit your comments, to the docket identification (ID)
number for the specific pesticide of interest provided in the Table in
Unit IV, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments. Do not submit
electronically any information you consider to be Confidential Business
Information (CBI) or other information whose disclosure is restricted
by statute.
     Mail: OPP Docket, Environmental Protection Agency Docket
Center (EPA/DC), (28221T), 1200 Pennsylvania Ave. NW, Washington, DC
20460-0001.
     Hand Delivery: To make special arrangements for hand
delivery or delivery of boxed information, please follow the
instructions at http://www.epa.gov/dockets/contacts.html.
    Additional instructions on commenting or visiting the docket, along
with more information about dockets generally, are available at http://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT:
    For pesticide specific information, contact: The Chemical Review
Manager for the pesticide of interest identified in the Table in Unit
IV.
    For general questions on the registration review program, contact:
Melanie Biscoe, Pesticide Re-Evaluation Division (7508P), Office of
Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania
Ave. NW, Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>;
email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This action is directed to the public in general and may be of
interest to a wide range of stakeholders including environmental, human
health, farm

worker, and agricultural advocates; the chemical industry; pesticide
users; and members of the public interested in the sale, distribution,
or use of pesticides. Since others also may be interested, the agency
has not attempted to describe all the specific entities that may be
affected by this action. If you have any questions regarding the
applicability of this action to a particular entity, consult the
Chemical Review Manager identified in the Table in Unit IV.

B. What should I consider as I prepare my comments for the EPA?

    1. Submitting CBI. Do not submit this information to the EPA
through regulations.gov or email. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD-ROM that you mail to the EPA, mark the outside of the disk or CD-ROM
as CBI and then identify electronically within the disk or CD-ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
    2. Tips for preparing your comments. When preparing and submitting
your comments, see the commenting tips at http://www.epa.gov/dockets/comments.html.

II. Background

    Registration review is the EPA's periodic review of pesticide
registrations to ensure that each pesticide continues to satisfy the
statutory standard for registration, that is, the pesticide can perform
its intended function without unreasonable adverse effects on human
health or the environment. Registration review dockets contain
information that will assist the public in understanding the types of
information and issues that the agency may consider during the course
of registration reviews. As part of the registration review process,
the Agency has completed preliminary workplans for all pesticides
listed in the Table in Unit IV. Through this program, the EPA is
ensuring that each pesticide's registration is based on current
scientific and other knowledge, including its effects on human health
and the environment.

III. Authority

    The EPA is conducting its registration review of the chemicals
listed in the Table in Unit IV pursuant to section 3(g) of the Federal
Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Procedural
Regulations for Registration Review at 40 CFR part 155, subpart C.
Section 3(g) of FIFRA provides, among other things, that the
registrations of pesticides are to be reviewed every 15 years. Under
FIFRA, a pesticide product may be registered or remain registered only
if it meets the statutory standard for registration given in FIFRA
section 3(c)(5) (7 U.S.C. 136a(c)(5)). When used in accordance with
widespread and commonly recognized practice, the pesticide product must
perform its intended function without unreasonable adverse effects on
the environment; that is, without any unreasonable risk to man or the
environment, or a human dietary risk from residues that result from the
use of a pesticide in or on food.

IV. Registration Reviews

A. What action is the agency taking?

    A pesticide's registration review begins when the agency
establishes a docket for the pesticide's registration review case and
opens the docket for public review and comment. Pursuant to 40 CFR
155.50, this notice announces the availability of the EPA's preliminary
work plans for the pesticides shown in the following table and opens a
60-day public comment period on the work plans. This notice also
announces the availability of EPA's draft ecological risk assessment
for the pesticide pyrimethanil and opens a 60-day public comment period
on the draft risk assessment.

----------------------------------------------------------------------------------------------------------------
  Registration review case name and                                                Chemical review manager and
               number                               Docket ID No.                      contact information
----------------------------------------------------------------------------------------------------------------
Pyrimethanil Case 7059..............  EPA-HQ-OPP-2019-0380.....................  Lauren Bailey,
<EMAIL_ADDRESS>(703)
                                                                                347-0374.
Saflufenacil Case 7278..............  EPA-HQ-OPP-2019-0524.....................  Jonathan Williams,
<EMAIL_ADDRESS><PHONE_NUMBER>.
----------------------------------------------------------------------------------------------------------------

    EPA is also announcing that it will not be opening a docket, nor
taking public comments for meptyldinocap. Meptyldinocap is a fungicide
used on grapes abroad, and a tolerance was established in 2009 for
residues of meptyldinocap on grapes imported into the United States.
There are have been no changes since the initial tolerance decision and
no changes to the tolerance or tolerance definition are being proposed.
Meptyldinocap does not have any products registered in the United
States under FIFRA section 3, therefore meptyldinocap is not scheduled
for review under the registration review program.

B. Docket Content

    The registration review docket contains information that the agency
may consider in the course of the registration review. The agency may
include information from its files including, but not limited to, the
following information:
     An overview of the registration review case status.
     A list of current product registrations and registrants.
     Federal Register notices regarding any pending
registration actions.
     Federal Register notices regarding current or pending
tolerances.
     Risk assessments.
     Bibliographies concerning current registrations.
     Summaries of incident data.
     Any other pertinent data or information.
    Each docket contains a document summarizing what the agency
currently knows about the pesticide case and a preliminary work plan
for anticipated data and assessment needs. Additional documents provide
more detailed information. During this public comment period, the
agency is asking that interested persons identify any additional
information they believe the agency should consider during the
registration reviews of these pesticides. The agency identifies in each
docket the areas where public comment is specifically requested, though
comment in any area is welcome.
    The registration review final rule at 40 CFR 155.50(b) provides for
a minimum 60-day public comment period on all preliminary registration
review work plans. This comment period is intended to provide an
opportunity for public input and a mechanism for initiating any
necessary changes to a pesticide's workplan. All comments should be
submitted using the methods in ADDRESSES and must be received by the
EPA on or before the closing date. These comments will become part of
the docket for the pesticides included in the Table in Unit IV.
Comments received after the close of the comment period will be marked
``late.'' The EPA is not

required to consider these late comments.
    The agency will carefully consider all comments received by the
closing date and may provide a ``Response to Comments Memorandum'' in
the docket. The final registration review work plan will explain the
effect that any comments had on the final work plan and provide the
agency's response to significant comments.
    Background on the registration review program is provided at:
http://www.epa.gov/pesticide-reevaluation.

    Authority: 7 U.S.C. 136 et seq.

    Dated: October 29, 2019.
Mary Reaves,
Acting Director, Pesticide Re-Evaluation Division, Office of Pesticide
Programs.
[FR Doc. 2019-25164 Filed 11-19-19; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 81, Number 198 (Thursday, October 13, 2016)]
[Notices]
[Pages 70728-70735]
[FR Doc No: 2016-24709]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79057; File No. 4-705]

Program for Allocation of Regulatory Responsibilities Pursuant to
Rule 17d-2; Notice of Filing and Order Approving and Declaring
Effective a Proposed Plan for the Allocation of Regulatory
Responsibilities Between the Financial Industry Regulatory Authority,
Inc., Bats BZX Exchange, Inc., Bats BYX Exchange, Inc., Bats EDGA
Exchange, Inc., and Bats EDGX Exchange, Inc.

October 6, 2016.
    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 a plan for allocating regulatory responsibility (``Plan'')
filed on September 30, 2016, pursuant to Rule 17d-2 of the Act,\2\ by
the Financial Industry Regulatory Authority, Inc. (``FINRA''), Bats BZX
Exchange, Inc. (``BZX''), Bats BYX Exchange, Inc. (``BYX''), Bats EDGA
Exchange, Inc. (``EDGA''), and Bats EDGX Exchange, Inc. (``EDGX'')
(each, a ``Participating Organization,'' or ``Bats Exchange,'' and
together, the ``Participating Organizations,'' ``the Bats Exchanges,''
or the ``Parties''). The Plan replaces and supersedes the agreement
between FINRA and BZX dated August 25, 2008; \3\ the agreement between
FINRA and BYX dated September 3, 2010; \4\ the agreement between FINRA
and EDGX dated March 31, 2010; \5\ and the agreement between FINRA and
EDGA dated March 31, 2010.\6\
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    \1\ 15 U.S.C. 78q(d).
    \2\ 17 CFR 240.17d-2.
    \3\ See Securities Exchange Act Release No. 58563 (September 17,
2008), 73 FR 55180 (September 24, 2008) (File No. 4-569) (notice of
filing of proposed plan). See also Securities Exchange Act Release
No. 58818 (October 20, 2008), 73 FR 63752 (October 27, 2008) (File
No. 4-569) (order approving proposed plan).
    \4\ See Securities Exchange Act Release No. 62935 (September 17,
2010), 75 FR 57998 (September 23, 2010) (File No. 4-613) (notice of
filing of proposed plan). See also Securities Exchange Act Release
No. 63102 (October 14, 2010), 75 FR 64765 (October 20, 2010) (File
No. 4-613) (order approving proposed plan).
    \5\ See Securities Exchange Act Release No. 61861 (April 7,
2010), 75 FR 18920 (April 13, 2010) (File No. 4-598) (notice of
filing of proposed plan). See also Securities Exchange Act Release
No. 62079 (May 11, 2010), 75 FR 28080 (May 19, 2010) (File No. 4-
598) (order approving proposed plan).
    \6\ See Securities Exchange Act Release No. 61860 (April 7,
2010), 75 FR 18915 (April 13, 2010) (File No. 4-597) (notice of
filing of proposed plan). See also Securities Exchange Act Release
No. 62078 (May 11, 2010), 75 FR 28078 (May 19, 2010) (File No. 4-
597) (order approving proposed plan).
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I. Introduction

    Section 19(g)(1) of the Securities Exchange Act of 1934
(``Act''),\7\ 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) or Section 19(g)(2) of the Act.\8\ 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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    \7\ 15 U.S.C. 78s(g)(1).
    \8\ 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2), respectively.
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    Section 17(d)(1) of the Act \9\ was intended, in part, to eliminate
unnecessary multiple examinations and regulatory duplication.\10\ 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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    \9\ 15 U.S.C. 78q(d)(1).
    \10\ 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.\11\ 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.\12\ 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- 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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    \11\ 17 CFR 240.17d-1 and 17 CFR 240.17d-2, respectively.
    \12\ 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.\13\ 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 appropriate 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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    \13\ See Securities Exchange Act Release No. 12935 (October 28,
1976), 41 FR 49091 (November 8, 1976).
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II. Proposed Plan

    The proposed 17d-2 Plan is intended to reduce regulatory
duplication for firms that are common members of a Bats Exchange and
FINRA.\14\ Pursuant to the proposed 17d-2 Plan, FINRA would assume
certain examination and enforcement responsibilities for common members
with respect to certain applicable laws, rules, and regulations. The
Plan replaces and supersedes the individual agreements between FINRA
and each Bats Exchange \15\ and is intended to reduce the
administrative burden associated with maintaining four separate plans.
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    \14\ See Paragraph 1(c) of the proposed 17d-2 Plan.
    \15\ See supra notes 3-6.

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    The text of the Plan delineates the proposed regulatory
responsibilities with respect to the Parties. Included in the proposed
Plan is an exhibit (the ``Bats BZX Exchange, Inc. (``BZX''), Bats BYX
Exchange, Inc. (``BYX''), Bats EDGA Exchange, Inc. (``EDGA''), and Bats
EDGX Exchange, Inc. (``EDGX'') Rules Certification for 17d-2 Agreement
with FINRA,'' referred to herein as the ``Certification'') that lists
every rule of the Bats Exchanges, and select federal securities laws,
rules, and regulations, for which FINRA would bear responsibility under
the Plan for overseeing and enforcing with respect to members of the
Bats Exchanges that are also members of FINRA and the associated
persons therewith (``Common Members'').
    Specifically, under the 17d-2 Plan, FINRA would assume examination
and enforcement responsibility relating to compliance by Common Members
with the rules of each Bats Exchange that are substantially similar to
the applicable rules of FINRA,\16\ as well as any provisions of the
federal securities laws and the rules and regulations thereunder
delineated in the Certification (``Common Rules''). In the event that a
Common Member is the subject of an investigation relating to a
transaction on a Bats Exchange, the plan acknowledges that the Bats
Exchange may, in its discretion, exercise concurrent jurisdiction and
responsibility for such matter.\17\
---------------------------------------------------------------------------

    \16\ See paragraph 1(b) of the proposed 17d-2 Plan (defining
Common Rules). See also paragraph 1(f) of the proposed 17d-2 Plan
(defining Regulatory Responsibilities). Paragraph 2 of the Plan
provides that annually, or more frequently as required by changes in
either the Bats Exchanges rules or FINRA rules, the parties shall
review and update, if necessary, the list of Common Rules. Further,
paragraph 3 of the Plan provides that the Bats Exchanges shall
furnish FINRA with a list of Common Members, and shall update the
list no less frequently than once each calendar quarter.
    \17\ See paragraph 6 of the proposed 17d-2 Plan.
---------------------------------------------------------------------------

    Under the Plan, each Bats Exchange would retain full responsibility
for surveillance and enforcement with respect to trading activities or
practices involving the Bats Exchange's own marketplace, including,
without limitation, registration pursuant to its applicable rules of
associated persons (i.e., registration rules that are not Common
Rules); its duties as a DEA pursuant to Rule 17d-1 under the Act; and
any rules of the Bats Exchange that are not Common Rules, except for
the Bats Exchanges rules for any broker-dealer subsidiary of the Bats
Exchanges' parent company, Bats Global Markets, Inc.\18\ Apparent
violations of any the Bats Exchanges rules by any broker-dealer
subsidiary of Bats Global Markets will be processed by, and enforcement
proceedings in respect thereto will be conducted by, FINRA.\19\
---------------------------------------------------------------------------

    \18\ See paragraph 2 of the proposed 17d-2 Plan.
    \19\ See paragraph 6 of the proposed 17d-2 Plan.
---------------------------------------------------------------------------

    The text of the proposed 17d-2 Plan is as follows:

AGREEMENT BETWEEN FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC., BATS
BZX EXCHANGE, INC., BATS BYX EXCHANGE, INC., BATS EDGA EXCHANGE, INC.,
AND BATS EDGX EXCHANGE, INC. PURSUANT TO RULE 17d-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

    This Agreement, by and between the Financial Industry Regulatory
Authority, Inc. (``FINRA''), Bats BZX Exchange, Inc. (``BZX''), Bats
BYX Exchange, Inc. (``BYX''), Bats EDGA Exchange, Inc. (``EDGA''), and
Bats EDGX Exchange, Inc. (``EDGX'') (collectively, the ``Bats
Exchanges'' and each a ``Bats Exchange'') is made this 30th day of
September, 2016 (the ``Agreement''), pursuant to Section 17(d) of the
Securities Exchange Act of 1934 (the ``Exchange Act'') and Rule 17d-2
thereunder, which permits agreements between self-regulatory
organizations to allocate regulatory responsibility to eliminate
regulatory duplication. FINRA and the Bats Exchanges may be referred to
individually as a ``party'' and together as the ``parties.'' Upon
approval by the Securities and Exchange Commission (``Commission'' or
``SEC'') this Agreement shall replace and supersede the agreement
between FINRA and BZX dated August 25, 2008; the agreement between
FINRA and BYX dated September 3, 2010; the agreement between FINRA and
EDGA dated March 31, 2010; and the agreement between FINRA and EDGX
dated March 31, 2010.
    Whereas, FINRA and the Bats Exchanges desire to reduce duplication
in the examination and surveillance of their Common Members (as defined
herein) and in the filing and processing of certain registration and
membership records; and
    Whereas, FINRA and the Bats Exchanges desire to execute an
agreement covering such subjects pursuant to the provisions of Rule
17d-2 under the Exchange Act and to file such agreement with the
Commission for its approval.
    Now, therefore, in consideration of the mutual covenants contained
hereinafter, FINRA and each Bats Exchange hereby agree as follows:
    1. Definitions. Unless otherwise defined in this Agreement or the
context otherwise requires, the terms used in this Agreement shall have
the same meaning as they have under the Exchange Act and the rules and
regulations thereunder. As used in this Agreement, the following terms
shall have the following meanings:
    (a) ``Bats Exchanges Rules'' or ``FINRA Rules'' shall mean: (i) The
rules of each Bats Exchange, or (ii) the rules of FINRA, respectively,
as the rules of an exchange or association are defined in Exchange Act
Section 3(a)(27).
    (b) ``Common Rules'' shall mean the rules of each Bats Exchange
that are substantially similar to the applicable FINRA Rules and
certain provisions of the Exchange Act and SEC rules set forth on
Exhibit 1 in that examination or surveillance for compliance with such
provisions and rules would not require FINRA to develop one or more new
examination or surveillance standards, modules, procedures, or criteria
in order to analyze the application of the provision or rule, or a
Common Member's activity, conduct, or output in relation to such
provision or rule; provided, however, Common Rules shall not include
the application of the SEC, each Bats Exchange or FINRA rules as they
pertain to violations of insider trading activities, which is covered
by a separate 17d-2 Agreement by and among Bats Exchange, Inc., Bats-Y
Exchange, Inc., Chicago Board Options Exchange, Incorporated, Chicago
Stock Exchange, Inc., EDGA Exchange Inc., EDGX Exchange Inc., Financial
Industry Regulatory Authority, Inc., NASDAQ OMX BX, Inc., NASDAQ OMX
PHLX LLC, The NASDAQ Stock Market LLC, National Stock Exchange, Inc.,
New York Stock Exchange, LLC, NYSE Amex LLC, and NYSE Arca Inc.
effective December 16, 2011, as may be amended from time to time.
    (c) ``Common Members'' shall mean those Bats Exchange members that
are also members of FINRA and the associated persons therewith.
    (d) ``Effective Date'' shall have the meaning set forth in
paragraph 13.
    (e) ``Enforcement Responsibilities'' shall mean the conduct of
appropriate proceedings, in accordance with FINRA's Code of Procedure
and other applicable FINRA procedural rules, to determine whether
violations of Common Rules have occurred, and if such violations are
deemed to have occurred, the imposition of appropriate sanctions as
specified under FINRA's Code of Procedure and sanctions guidelines.
    (f) ``Regulatory Responsibilities'' shall mean the examination
responsibilities, surveillance responsibilities and Enforcement
Responsibilities relating to

compliance by the Common Members with the Common Rules and the
provisions of the Exchange Act and the rules and regulations
thereunder, and other applicable laws, rules and regulations, each as
set forth on Exhibit 1 attached hereto.
    2. Regulatory Responsibilities. FINRA shall assume Regulatory
Responsibilities for Common Members. Attached as Exhibit 1 to this
Agreement and made part hereof, each Bats Exchange furnished FINRA with
a current list of Common Rules and certified to FINRA that such rules
that are Bats Exchanges Rules are substantially similar to the
corresponding FINRA Rules (the ``Certification''). FINRA hereby agrees
that the rules listed in the Certification are Common Rules as defined
in this Agreement. Each year following the Effective Date of this
Agreement, or more frequently if required by changes in either the
rules of any Bats Exchange or FINRA, the Bats Exchanges shall submit an
updated list of Common Rules to FINRA for review which shall add Bats
Exchanges Rules not included in the current list of Common Rules that
qualify as Common Rules as defined in this Agreement; delete Bats
Exchanges Rules included in the current list of Common Rules that no
longer qualify as Common Rules as defined in this Agreement; and
confirm that the remaining rules on the current list of Common Rules
continue to be Bats Exchanges Rules that qualify as Common Rules as
defined in this Agreement. Within 30 days of receipt of such updated
list, FINRA shall confirm in writing whether the rules listed in any
updated list are Common Rules as defined in this Agreement.
Notwithstanding anything herein to the contrary, it is explicitly
understood that the term ``Regulatory Responsibilities'' does not
include, and each Bats Exchange shall retain full responsibility for
(unless otherwise addressed by separate agreement or rule)
(collectively, the ``Retained Responsibilities'') the following:
    (a) Surveillance, examination, investigation and enforcement with
respect to trading activities or practices involving each Bats
Exchange's own marketplace for rules that are not Common Rules;
    (b) registration pursuant to its applicable rules of associated
persons (i.e., registration rules that are not Common Rules);
    (c) discharge of its duties and obligations as a Designated
Examining Authority pursuant to Rule 17d-1 under the Exchange Act; and
    (d) any Bats Exchanges Rules that are not Common Rules, except for
any Bats Exchanges Rules for any broker-dealer subsidiary of Bats
Global Markets, Inc., as provided in paragraph 6.
    3. Common Members. Prior to the Effective Date, each Bats Exchange
shall furnish FINRA with a current list of Common Members, which shall
be updated no less frequently than once each quarter.
    4. No Charge. There shall be no charge to the Bats Exchanges by
FINRA for performing the Regulatory Responsibilities under this
Agreement except as otherwise agreed by the parties, either herein or
in a separate agreement.
    5. Reassignment of Regulatory Responsibilities. Notwithstanding any
provision hereof, this Agreement shall be subject to any statute, or
any rule or order of the Commission, or industry agreement,
restructuring the regulatory framework of the securities industry or
reassigning Regulatory Responsibilities between self-regulatory
organizations. To the extent such action is inconsistent with this
Agreement, such action shall supersede the provisions hereof to the
extent necessary for them to be properly effectuated and the provisions
hereof in that respect shall be null and void.
    6. Notification of Violations. In the event that FINRA becomes
aware of apparent violations of any Bats Exchanges Rules, which are not
listed as Common Rules, discovered pursuant to the performance of the
Regulatory Responsibilities assumed hereunder, FINRA shall notify the
Bats Exchanges of those apparent violations for such response as the
Bats Exchanges deem appropriate. In the event that any of the Bats
Exchanges becomes aware of apparent violations of any Common Rules,
discovered pursuant to the performance of the Retained
Responsibilities, the applicable Bats Exchange shall notify FINRA of
those apparent violations and such matters shall be handled by FINRA as
provided in this Agreement. With respect to apparent violations of any
Bats Exchanges Rules by any broker-dealer subsidiary of Bats Global
Markets, Inc., FINRA shall not make referrals to the Bats Exchanges
pursuant to this paragraph 6. Such apparent violations shall be
processed by, and enforcement proceedings in respect thereto will be
conducted by, FINRA as provided in this Agreement. Each party agrees to
make available promptly all files, records and witnesses necessary to
assist the other in its investigation or proceedings. Apparent
violations of Common Rules, FINRA Rules, federal securities laws, and
rules and regulations thereunder, shall be processed by, and
enforcement proceedings in respect thereto shall be conducted by FINRA
as provided hereinbefore; provided, however, that in the event a Common
Member is the subject of an investigation relating to a transaction on
a Bats Exchange, the Bats Exchange may in its discretion assume
concurrent jurisdiction and responsibility.
    7. Continued Assistance.
    (a) FINRA shall make available to the Bats Exchanges all
information obtained by FINRA in the performance by it of the
Regulatory Responsibilities hereunder with respect to the Common
Members subject to this Agreement. In particular, and not in limitation
of the foregoing, FINRA shall furnish the Bats Exchanges any
information it obtains about Common Members which reflects adversely on
their financial condition. The Bats Exchanges shall make available to
FINRA any information coming to its attention that reflects adversely
on the financial condition of Common Members or indicates possible
violations of applicable laws, rules or regulations by such firms.
    (b) The parties agree that documents or information shared shall be
held in confidence, and used only for the purposes of carrying out
their respective regulatory obligations. The parties shall not assert
regulatory or other privileges as against another with respect to
documents or information that is required to be shared pursuant to this
Agreement.
    (c) The sharing of documents or information between the parties
pursuant to this Agreement shall not be deemed a waiver as against
third parties of regulatory or other privileges relating to the
discovery of documents or information.
    8. Statutory Disqualifications. When FINRA becomes aware of a
statutory disqualification as defined in the Exchange Act with respect
to a Common Member, FINRA shall determine pursuant to Sections 15A(g)
and/or Section 6(c) of the Exchange Act the acceptability or continued
applicability of the person to whom such disqualification applies and
keep the Bats Exchanges advised of its actions in this regard for such
subsequent proceedings as the Bats Exchanges may initiate.
    9. Customer Complaints. The Bats Exchanges shall forward to FINRA
copies of all customer complaints involving Common Members received by
the Bats Exchanges relating to FINRA's Regulatory Responsibilities
under this Agreement. It shall be FINRA's responsibility to review and

take appropriate action in respect to such complaints.
    10. Advertising. FINRA shall assume responsibility to review the
advertising of Common Members subject to the Agreement, provided that
such material is filed with FINRA in accordance with FINRA's filing
procedures and is accompanied with any applicable filing fees set forth
in FINRA Rules.
    11. No Restrictions on Regulatory Action. Nothing contained in this
Agreement shall restrict or in any way encumber the right of any party
to conduct its own independent or concurrent investigation, examination
or enforcement proceeding of or against Common Members, as any party,
in its sole discretion, shall deem appropriate or necessary.
    12. Termination. This Agreement may be terminated by the Bats
Exchanges or FINRA at any time upon the approval of the Commission
after one (1) year's written notice to the other party, except as
provided in paragraph 4.
    13. Effective Date. This Agreement shall be effective upon approval
of the Commission.
    14. Arbitration. In the event of a dispute among the parties as to
the operation of this Agreement, the Bats Exchanges and FINRA hereby
agree that any such dispute shall be settled by arbitration in
Washington, DC in accordance with the rules of the American Arbitration
Association then in effect, or such other procedures as the parties may
mutually agree upon. Judgment on the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction. Each
party acknowledges that the timely and complete performance of its
obligations pursuant to this Agreement is critical to the business and
operations of the other parties. In the event of a dispute between the
parties, the parties shall continue to perform their respective
obligations under this Agreement in good faith during the resolution of
such dispute unless and until this Agreement is terminated in
accordance with its provisions. Nothing in this Section 14 shall
interfere with a party's right to terminate this Agreement as set forth
herein.
    15. Notification of Members. The Bats Exchanges and FINRA shall
notify Common Members of this Agreement after the Effective Date by
means of a uniform joint notice.
    16. Amendment. This Agreement may be amended in writing duly
approved by each party. All such amendments must be filed with and
approved by the Commission before they become effective.
    17. Limitation of Liability. Neither FINRA nor any Bats Exchange
nor any of their respective directors, governors, officers or employees
shall be liable to the other parties to 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 Responsibilities as provided hereby or for the
failure to provide any such responsibility, except with respect to such
liability, loss or damages as shall have been suffered by one or the
other of FINRA or any Bats Exchange and caused by the willful
misconduct of the other party or their respective directors, governors,
officers or employees. No warranties, express or implied, are made by
FINRA or any Bats Exchange with respect to any of the responsibilities
to be performed by each of them hereunder.
    18. Relief from Responsibility. Pursuant to Sections 17(d)(1)(A)
and 19(g) of the Exchange Act and Rule 17d-2 thereunder, FINRA and the
Bats Exchanges join in requesting the Commission, upon its approval of
this Agreement or any part thereof, to relieve the Bats Exchanges of
any and all responsibilities with respect to matters allocated to FINRA
pursuant to this Agreement; provided, however, that this Agreement
shall not be effective until the Effective Date.
    19. Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the
remaining terms and provisions of this Agreement or affecting the
validity or enforceability of any of the terms or provisions of this
Agreement in any other jurisdiction.
    20. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and such
counterparts together shall constitute one and the same instrument.

Exhibit 1

Bats BZX Exchange, Inc. (``BZX''), Bats BYX Exchange, Inc. (``BYX''),
Bats EDGA Exchange, Inc. (``EDGA''), and Bats EDGX Exchange, Inc.
(``EDGX'') Rules Certification for 17d-2 Agreement With FINRA

    Each Bats Exchange hereby certifies that the requirements contained
in the rules listed below are identical to, or substantially similar
to, the comparable FINRA Rule, NASD Rule, Exchange Act provision or SEC
Rule identified (``Common Rules'').

----------------------------------------------------------------------------------------------------------------
                                                                                FINRA rule, NASD
                                                                                rule,  Exchange
            BZX rule:                  BYX rule:          EDGA rule:          EDGX rule:       Act Provision or
                                                                                SEC rule:
----------------------------------------------------------------------------------------------------------------
Rule 2.5 Restrictions,            Rule 2.5            Rule 2.5            Rule 2.5            FINRA Rule
 Interpretation and Policy .02     Restrictions,       Restrictions,       Restrictions,       1250(a)(1)-(4)
 Continuing Education              Interpretation      Interpretation      Interpretation      Continuing
 Requirements .                   and Policy .02      and Policy .02      and Policy .02      Education
                                   Continuing          Continuing          Continuing          Requirements.\1\
                                   Education           Education           Education
                                   Requirements .     Requirements .     Requirements .
Rule 2.5 Restrictions,            Rule 2.5            Rule 2.5            Rule 2.5            FINRA By-Laws of
 Interpretation and Policy .04     Restrictions,       Restrictions,       Restrictions,       the Corporation,
 Termination of Employment.        Interpretation      Interpretation      Interpretation      Article V,
                                   and Policy .04      and Policy .04      and Policy .04      Section 3
                                   Termination of      Termination of      Termination of      Notification by
                                   Employment.         Employment.         Employment.         Member to the
                                                                                Corporation and
                                                                                Associated Person
                                                                                of Termination;
                                                                                Amendments to
                                                                                Notification.
Rule 2.6(g) Application           Rule 2.6(g)         Rule 2.6(g)         Rule 2.6(g)         FINRA By-Laws of
 Procedures for Membership or to   Application         Application         Application         the Corporation,
 become an Associated Person of    Procedures for      Procedures for      Procedures for      Article IV,
 a Member .                       Membership or to    Membership or to    Membership or to    Section 1(c)
                                   become an           become an           become an           Application for
                                   Associated Person   Associated Person   Associated Person   Membership.
                                   of a Member .      of a Member .      of a Member .
Rule 3.1 Business Conduct of      Rule 3.1 Business   Rule 3.1 Business   Rule 3.1 Business   FINRA Rule 2010
 Members *.                        Conduct of          Conduct of          Conduct of          Standards of
                                   Members *.          Members *.          Members *.          Commercial Honor
                                                                                and Principles of
                                                                                Trade.*
Rule 3.2 Violations Prohibited *  Rule 3.2            Rule 3.2            Rule 3.2            FINRA Rule 2010
                                   Violations          Violations          Violations          Standards of
                                   Prohibited *.       Prohibited *.       Prohibited *.       Commercial Honor
                                                                                and Principles of
                                                                                Trade and FINRA
                                                                                Rule 3110
                                                                                Supervision.* \2\

Rule 3.3 Use of Fraudulent        Rule 3.3 Use of     Rule 3.3 Use of     Rule 3.3 Use of     FINRA Rule 2020
 Devices *.                        Fraudulent          Fraudulent          Fraudulent          Use of
                                   Devices *.          Devices *.          Devices *.          Manipulative,
                                                                                Deceptive or
                                                                                Other Fraudulent
                                                                                Devices.*
Rule 3.5 Communications with the  Rule 3.5            Rule 3.5            Rule 3.5            FINRA Rule 2210
 Public.                           Communications      Communications      Communications      Communications
                                   with the Public.    with the Public.    with the Public.    with the Public.
Rule 3.6 Fair Dealing with        Rule 3.6 Fair       Rule 3.6 Fair       Rule 3.6 Fair       FINRA Rule 2020
 Customers.                        Dealing with        Dealing with        Dealing with        Use of
                                   Customers.          Customers.          Customers.          Manipulative,
                                                                                Deceptive or
                                                                                Other Fraudulent
                                                                                Devices.* \3\
Rule 3.7(a) Recommendations to    Rule 3.7(a)         Rule 3.7(a)         Rule 3.7(a)         FINRA Rule 2111(a)
 Customers.                        Recommendations     Recommendations     Recommendations     Suitability.
                                   to Customers.       to Customers.       to Customers.
Rule 3.8(a) The Prompt Receipt    Rule 3.8(a) The     Rule 3.8(a) The     Rule 3.8(a) The     FINRA Rule 11860
 and Delivery of Securities.       Prompt Receipt      Prompt Receipt      Prompt Receipt      COD Orders.
                                   and Delivery of     and Delivery of     and Delivery of
                                   Securities.         Securities.         Securities.
Rule 3.8(b) The Prompt Receipt    Rule 3.8(b) The     Rule 3.8(b) The     Rule 3.8(b) The     SEC Regulation
 and Delivery of Securities.       Prompt Receipt      Prompt Receipt      Prompt Receipt      SHO.
                                   and Delivery of     and Delivery of     and Delivery of
                                   Securities.         Securities.         Securities.
Rule 3.9 Charges for Services     Rule 3.9 Charges    Rule 3.9 Charges    Rule 3.9 Charges    FINRA Rule 2122
 Performed.                        for Services        for Services        for Services        Charges for
                                   Performed.          Performed.          Performed.          Services
                                                                                Performed.
Rule 3.10 Use of Information....  Rule 3.10 Use of    Rule 3.10 Use of    Rule 3.10 Use of    FINRA Rule 2060
                                   Information.        Information.        Information.        Use of
                                                                                Information
                                                                                Obtained in
                                                                                Fiduciary
                                                                                Capacity.
Rule 3.11 Publication of          Rule 3.11           Rule 3.11           Rule 3.11           FINRA Rule 5210
 Transactions and Quotations .    Publication of      Publication of      Publication of      Publication of
                                   Transactions and    Transactions and    Transactions and    Transactions and
                                   Quotations .       Quotations .       Quotations .       Quotations.
Rule 3.12 Offers at Stated        Rule 3.12 Offers    Rule 3.12 Offers    Rule 3.12 Offers    FINRA Rule 5220
 Prices.                           at Stated Prices.   at Stated Prices.   at Stated Prices.   Offers at Stated
                                                                                Prices.
Rule 3.13 Payment Designed to     Rule 3.13 Payment   Rule 3.13 Payments  Rule 3.13 Payments  FINRA Rule 5230
 Influence Market Prices, Other    Designed to         Involving           Involving           Payments
 than Paid Advertising.            Influence Market    Publications that   Publications that   Involving
                                   Prices, Other       Influence the       Influence the       Publications that
                                   than Paid           Market Price of a   Market Price of a   Influence the
                                   Advertising.        Security.           Security.           Market Price of a
                                                                                Security.
Rule 3.14 Disclosure on           Rule 3.14           Rule 3.14           Rule 3.14           FINRA Rule 2232(a)
 Confirmations.                    Disclosure on       Disclosure on       Disclosure on       Customer
                                   Confirmations.      Confirmations.      Confirmations.      Confirmations and
                                                                                SEC Rule 10b-10
                                                                                Confirmation of
                                                                                Transactions.
Rule 3.15 Disclosure of Control.  Rule 3.15           Rule 3.15           Rule 3.15           FINRA Rule 2262
                                   Disclosure of       Disclosure of       Disclosure of       Disclosure of
                                   Control.            Control.            Control.            Control
                                                                                Relationship With
                                                                                Issuer.
Rule 3.16 Discretionary Accounts  Rule 3.16           Rule 3.16           Rule 3.16           NASD Rule 2510
                                   Discretionary       Discretionary       Discretionary       Discretionary
                                   Accounts.           Accounts.           Accounts.           Accounts.\4\
Rule 3.17 Customer's Securities   Rule 3.17           Rule 3.17           Rule 3.17           FINRA Rule 2150(a)
 or Funds.                         Customer's          Customer's          Customer's          Improper Use of
                                   Securities or       Securities or       Securities or       Customers'
                                   Funds.              Funds.              Funds.              Securities or
                                                                                Funds;
                                                                                Prohibition
                                                                                Against
                                                                                Guarantees and
                                                                                Sharing in
                                                                                Accounts--Imprope
                                                                                r Use.
Rule 3.18 Prohibition Against     Rule 3.18           Rule 3.18           Rule 3.18           FINRA Rule 2150(b)
 Guarantees.                       Prohibition         Prohibition         Prohibition         Improper Use of
                                   Against             Against             Against             Customers'
                                   Guarantees.         Guarantees.         Guarantees.         Securities or
                                                                                Funds;
                                                                                Prohibition
                                                                                Against
                                                                                Guarantees and
                                                                                Sharing in
                                                                                Accounts--Prohibi
                                                                                tion Against
                                                                                Guarantees.
Rule 3.19 Sharing in Accounts;    Rule 3.19 Sharing   Rule 3.19 Sharing   Rule 3.19 Sharing   FINRA Rule
 Extent Permissible.               in Accounts;        in Accounts;        in Accounts;        2150(c)(1)
                                   Extent              Extent              Extent              Improper Use of
                                   Permissible.        Permissible.        Permissible.        Customers'
                                                                                Securities or
                                                                                Funds;
                                                                                Prohibition
                                                                                Against
                                                                                Guarantees and
                                                                                Sharing in
                                                                                Accounts--Sharing
                                                                                in Accounts;
                                                                                Extent
                                                                                Permissible.
Rule 3.21(a)-(f) Customer         Rule 3.21(a)-(f)    Rule 3.21(a)-(f)    Rule 3.21(a)-(f)    FINRA Rule 2265
 Disclosures.                      Customer            Customer            Customer            Extended Hours
                                   Disclosures.        Disclosures.        Disclosures.        Trading Risk
                                                                                Disclosure.
Rule 3.22 Influencing or          Rule 3.22           Rule 3.20           Rule 3.20           FINRA Rule 3220
 Rewarding Employees of Others.    Influencing or      Influencing or      Influencing or      Influencing or
                                   Rewarding           Rewarding           Rewarding           Rewarding
                                   Employees of        Employees of        Employees of        Employees of
                                   Others.             Others.             Others.             Others.
Rule 3.23 Telemarketing.........  Rule 3.23           Rule 3.26           Rule 3.26           FINRA Rule 3230
                                   Telemarketing.      Telemarketing.      Telemarketing.      Telemarketing.
Rule 4.1 Requirements...........  Rule 4.1            Rule 4.1            Rule 4.1            Section 17 of the
                                   Requirements.       Requirements.       Requirements.       Exchange Act and
                                                                                the rules
                                                                                thereunder.* \5\
Rule 4.3 Record of Written        Rule 4.3 Record of  Rule 4.3 Record of  Rule 4.3 Record of  FINRA Rule 4513
 Complaints.                       Written             Written             Written             Records of
                                   Complaints.         Complaints.         Complaints.         Written Customer
                                                                                Complaints.
Rule 5.1 Written Procedures.....  Rule 5.1 Written    Rule 5.1 Written    Rule 5.1 Written    FINRA Rule
                                   Procedures.         Procedures.         Procedures.         3110(b)(1)
                                                                                Supervision-
                                                                                Written
                                                                                Procedures.* \6\
Rule 5.2 Responsibility of        Rule 5.2            Rule 5.2            Rule 5.2            FINRA Rule 3110
 Members.                          Responsibility of   Responsibility of   Responsibility of   (a)(4) and (b)(4)
                                   Members.            Members.            Members.            Supervision--Supe
                                                                                rvisory System/
                                                                                Written
                                                                                Procedures--Revie
                                                                                w of
                                                                                Correspondence
                                                                                and Internal
                                                                                Communications.*

Rule 5.3 Records................  Rule 5.3 Records..  Rule 5.3 Records..  Rule 5.3 Records..  FINRA Rule 3110
                                                                                Supervision.*
Rule 5.4 Review of Activities...  Rule 5.4 Review of  Rule 5.4 Review of  Rule 5.4 Review of  FINRA Rule 3110(c)
                                   Activities.         Activities.         Activities.         and (d)
                                                                                Supervision--Inte
                                                                                rnal Inspections/
                                                                                Transaction
                                                                                Review and
                                                                                Investigation.*
Rule 5.6 Anti-Money Laundering    Rule 5.6 Anti-      Rule 5.6 Anti-      Rule 5.6 Anti-      FINRA Rule 3310
 Compliance Program .             Money Laundering    Money Laundering    Money Laundering    Anti-Money
                                   Compliance          Compliance          Compliance          Laundering
                                   Program .          Program .          Program .          Compliance
                                                                                Program.
Rule 9.3 Predispute Arbitration   Rule 9.3            Rule 9.3            Rule 9.3            FINRA Rule 2268
 Agreements.                       Predispute          Predispute          Predispute          Requirements When
                                   Arbitration         Arbitration         Arbitration         Using Predispute
                                   Agreements.         Agreements.         Agreements.         Arbitration
                                                                                Agreements for
                                                                                Customer
                                                                                Accounts.
Rule 11.18(e)(3) & (4) Trading    Rule 11.18(e)(3) &  Rule 11.16(e)(3) &  Rule 11.16(e)(3) &  FINRA Rule
 Halts Due to Extraordinary        (4) Trading Halts   (4) Trading Halts   (4) Trading Halts   6190(a)(1) & (2)
 Market Volatility.                Due to              Due to              Due to              Compliance with
                                   Extraordinary       Extraordinary       Extraordinary       Regulation NMS
                                   Market Volatility.  Market Volatility.  Market Volatility.  Plan to Address
                                                                                Extraordinary
                                                                                Market
                                                                                Volatility.
Rule 11.19(a) Short Sales        Rule 11.19(a)       Rule 11.10(a)(5)    Rule 11.10(a)(5)    FINRA Rule 6182
 [supcaret][supcaret].             Short Sales        Order Execution-    Order Execution-    Trade Reporting
                                   [supcaret][supcar   Short Sales        Short Sales        of Short
                                   et].                [supcaret][supcar   [supcaret][supcar   Sales.[supcaret][
                                                       et].                et].                supcaret]
Rule 12.1 Market Manipulation **  Rule 12.1 Market    Rule 12.1 Market    Rule 12.1 Market    FINRA Rule 6140
                                   Manipulation **.    Manipulation **.    Manipulation **.    Other Trading
                                                                                Practices.**
Rule 12.2 Fictitious              Rule 12.2           Rule 12.2           Rule 12.2           FINRA Rule 6140
 Transactions **.                  Fictitious          Fictitious          Fictitious          Other Trading
                                   Transactions **.    Transactions **.    Transactions **.    Practices.**
Rule 12.3 Excessive Sales by a    Rule 12.3           Rule 12.3           Rule 12.3           FINRA Rule 6140(c)
 Member **.                        Excessive Sales     Excessive Sales     Excessive Sales     Other Trading
                                   by a Member **.     by a Member **.     by a Member **.     Practices.**
Rule 12.4 Manipulative            Rule 12.4           Rule 12.4           Rule 12.4           FINRA Rule 6140(d)
 Transactions **.                  Manipulative        Manipulative        Manipulative        Other Trading
                                   Transactions **.    Transactions **.    Transactions **.    Practices.**
Rule 12.5 Dissemination of False  Rule 12.5           Rule 12.5           Rule 12.5           FINRA Rule 6140(e)
 Information **.                   Dissemination of    Dissemination of    Dissemination of    Other Trading
                                   False Information   False Information   False Information   Practices.**
                                   **.                 **.                 **.
Rule 12.6 Prohibition Against     Rule 12.6           Rule 12.6           Rule 12.6           FINRA Rule 5320
 Trading Ahead of Customer         Prohibition         Prohibition         Prohibition         Prohibition
 Orders [supcaret][supcaret].      Against Trading     Against Trading     Against Trading     Against Trading
                                   Ahead of Customer   Ahead of Customer   Ahead of Customer   Ahead of Customer
                                   Orders              Orders              Orders              Orders.[supcaret]
                                   [supcaret][supcar   [supcaret][supcar   [supcaret][supcar   [supcaret]
                                   et].                et].                et].
Rule 12.9 Trade Shredding.......  Rule 12.9 Trade     Rule 12.9 Trade     Rule 12.9 Trade     FINRA Rule 5290
                                   Shredding.          Shredding.          Shredding.          Order Entry and
                                                                                Execution
                                                                                Practices.
Rule 12.11 Best Execution         Rule 12.11 Best     Rule 12.11 Best     Rule 12.11 Best     FINRA Rule 5310
 [supcaret][supcaret].             Execution           Execution           Execution           Best Execution
                                   [supcaret][supcar   [supcaret][supcar   [supcaret][supcar   and
                                   et].                et].                et].                Interpositioning.
                                                                                [supcaret][supcar
                                                                                et]
Rule 12.13 Trading Ahead of       Rule 12.13 Trading  Rule 12.13 Trading  Rule 12.13 Trading  FINRA Rule 5280
 Research Reports                  Ahead of Research   Ahead of Research   Ahead of Research   Trading Ahead of
 [supcaret][supcaret].             Reports             Reports             Reports             Research
                                   [supcaret][supcar   [supcaret][supcar   [supcaret][supcar   Reports.[supcaret
                                   et].                et].                et].                ][supcaret]
Rule 12.14(a) Front Running of    Rule 12.14(a)       Rule 12.14(a)       Rule 12.14(a)       FINRA Rule 5270
 Block Transactions                Front Running of    Front Running of    Front Running of    Front Running of
 [supcaret][supcaret].             Block               Block               Block               Block
                                   Transactions        Transactions        Transactions        Transactions.[sup
                                   [supcaret][supcar   [supcaret][supcar   [supcaret][supcar   caret][supcaret]
                                   et].                et].                et].
Rule 13.2 Failure to Deliver and  Rule 13.2 Failure   Rule 13.2 Short     Rule 13.2 Short     Regulation SHO
 Failure to Receive.               to Deliver and      Sale Borrowing      Sale Borrowing      Rules 200 and
                                   Failure to          and Delivery        and Delivery        203.
                                   Receive.            Requirements.       Requirements.
Rule 13.3(a), (b), (d) and        Rule 13.3(a), (b),  Rule 13.3(a), (b),  Rule 13.3(a), (b),  FINRA Rule 2251
 Interpretation and Policy .01     (d) and             (d) and             (d) and             Processing and
 Forwarding of Proxy and Other     Interpretation      Interpretation      Interpretation      Forwarding of
 Issuer-Related Materials; Proxy   and Policy .01      and Policy .01      and Policy .01      Proxy and Other
 Voting.                           Forwarding of       Forwarding of       Forwarding of       Issuer-Related
                                   Proxy and Other     Proxy and Other     Proxy and Other     Materials.
                                   Issuer-Related      Issuer-Related      Issuer-Related
                                   Materials; Proxy    Materials.          Materials.
                                   Voting.
----------------------------------------------------------------------------------------------------------------
In addition, the following provisions shall be part of this 17d-2 Agreement:
Securities Exchange Act of 1934 (``SEA''):
Section 15(g)
SEC Rules under the SEA:
SEC Rule 200 of Regulation SHO--Definition of ``Short Sale'' and Marking Requirements [supcaret][supcaret]
SEC Rule 201 of Regulation SHO--Circuit Breaker [supcaret][supcaret]
SEC Rule 203 of Regulation SHO--Borrowing and Delivery Requirements [supcaret][supcaret]
SEA Rule 204 of Regulation SHO--Close-Out Requirement [supcaret][supcaret]
SEC Rule 101 of Regulation M--Activities by Distribution Participants [supcaret][supcaret]
SEC Rule 102 of Regulation M--Activities by Issuers and Selling Security Holders During a Distribution
 [supcaret][supcaret]
SEC Rule 103 of Regulation M--Nasdaq Passive Market Making [supcaret][supcaret]
SEC Rule 104 of Regulation M--Stabilizing and Other Activities in Connection with an Offering
 [supcaret][supcaret]
SEC Rule 105 of Regulation M--Short Selling in Connection With a Public Offering [supcaret][supcaret]
SEC Rules 17a-3/17a-4--Records to be made by Certain Exchange Members, Brokers, and Dealers/Records to be
 Preserved by Certain Exchange Members, Brokers, and Dealers *
----------------------------------------------------------------------------------------------------------------
  FINRA shall not have Regulatory Responsibilities regarding notification or reporting to the Bats Exchanges
  and to the extent any exercise of discretion is not the same.
* FINRA shall not have any Regulatory Responsibilities for these rules as they pertain to violations of insider
  trading activities, which is covered by a separate 17d-2 Agreement by and among Bats Exchange, Inc., Bats-Y
  Exchange, Inc., Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange
  Inc., EDGX Exchange Inc., Financial Industry Regulatory Authority, Inc., NASDAQ OMX BX, Inc., NASDAQ OMX PHLX
  LLC, The NASDAQ Stock Market LLC, National Stock Exchange, Inc., New York Stock Exchange, LLC, NYSE Amex LLC,
  and NYSE Arca Inc. effective December 16, 2011, as may be amended from time to time.
** FINRA shall not have Regulatory Responsibilities for these rules as they pertain to trading practices
  involving securities that do not meet the definition of NMS stock as defined in Rule 600(b)(47) of Regulation
  NMS. As of the current date, Bats Exchanges do not trade any non-NMS stock.
[supcaret][supcaret] FINRA shall perform the surveillance responsibilities for the double caret rules. These
  rules may be cited by FINRA in both the context of this Agreement and the Regulatory Services Agreement.
\1\ FINRA shall only have Regulatory Responsibilities to the extent that the allowance for additional time for a
  registered person to satisfy the regulatory element is consistently granted.

\2\ FINRA shall only have Regulatory Responsibilities regarding the first phrase of the Bats Exchanges rules
  regarding prohibitions from violating the Securities Exchange Act of 1934 and the rules and regulations
  thereunder; responsibility for the remainder of the rule shall remain with the Bats Exchanges.
\3\ FINRA shall not have Regulatory Responsibilities regarding .01 of each Bats Exchange Rule 3.6.
\4\ FINRA shall not have Regulatory Responsibilities for the Bats Exchanges' Rule to the extent the exception in
  NASD Rule 2510(d)(2) applies.
\5\ FINRA shall not have Regulatory Responsibilities regarding requirements to keep records ``in conformity with
  . . . Exchange Rules;'' responsibility for such requirement remains with the Bats Exchanges.
\6\ FINRA shall not have Regulatory Responsibilities regarding requirements to assure compliance with the Bats
  Exchange Rules; responsibility for such requirement remains with each Bats Exchange.

III. 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_ADDRESS>Please include
File Number 4-705 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 4-705. 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 FINRA, BZX, BYX, EDGX, and EDGA.
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 4-705 and should
be submitted on or before November 3, 2016.

IV. Discussion

    The Commission finds that the proposed Plan is consistent with the
factors set forth in Section 17(d) of the Act \20\ and Rule 17d-2(c)
thereunder \21\ in that the proposed Plan is necessary or appropriate
in the public interest and for the protection of investors, fosters
cooperation and coordination among SROs, and removes impediments to and
fosters the development of the national market system. In particular,
the Commission notes that the proposed Plan replaces and supersedes
each of the original bilateral Plans between FINRA and a Bats Exchange
without materially altering the core terms of any of the Plans. The
Bats Exchanges, which all are under the common control of Bats Global
Markets, Inc., have substantively identical Common Rules among
themselves. The Parties have now proposed to add additional rules to
the list of Common Rules and have used this opportunity to also combine
their separate bilateral 17d-2 Plans into a combined plan among all of
the Parties.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78q(d).
    \21\ 17 CFR 240.17d-2(c).
---------------------------------------------------------------------------

    Because the proposed combined Plan preserves the general framework
of each of the current bilateral Plans, and adds a number of additional
Common Rules to the Regulatory Responsibilities assumed by FINRA under
the Plans, the Commission believes that the proposed combined Plan
should continue to reduce unnecessary regulatory duplication by
allocating to FINRA certain examination and enforcement
responsibilities for Common Members that would otherwise be performed
by each Bats Exchange and FINRA. Accordingly, the proposed Plan
promotes efficiency by reducing costs to Common Members. Furthermore,
because the Bats Exchanges and FINRA will coordinate their regulatory
functions in accordance with the Plan, the Plan should promote investor
protection.
    The Commission notes that when it granted the application of each
of the Bats Exchanges for registration as a national securities
exchange, the Commission conditioned the operation of each Bats
Exchange on the satisfaction of several requirements.\22\ One of those
requirements was the effectiveness of an agreement pursuant to Rule
17d-2 between FINRA and the Bats Exchange that allocates to FINRA
regulatory responsibility for certain specified matters.\23\ The
original bilateral 17d-2 Plans represents the Bats Exchanges' effort to
satisfy that prerequisite, and the proposed combined Plan preserves the
general framework of each of the current bilateral plans while
expanding the list of Common Rules allocated under the agreement.
---------------------------------------------------------------------------

    \22\ See Securities Exchange Act Release Nos. 58375 (August 18,
2008), 73 FR 49498 (August 21, 2008) (File No. 10-182) (order
granting BZX's application for registration as a national securities
exchange); 62716 (August 13, 2010), 75 FR 51295 (August 19, 2010)
(File No. 10-198) (order granting BYX's application for registration
as a national securities exchange); 61698 (March 12, 2010), 75 FR
13151 (March 18, 2010) (File No. 10-194) (order granting EDGA's
application for registration as a national securities exchange);
61698 (March 12, 2010), 75 FR 13151 (March 18, 2010) (File No. 10-
196) (order granting EDGX's application for registration as a
national securities exchange).
    \23\ See id.
---------------------------------------------------------------------------

    The Commission notes that, under the Plan, the Bats Exchanges and
FINRA have allocated regulatory responsibility for those rules of the
Bats Exchanges, set forth on the Certification, that are substantially
similar to the applicable FINRA rules in that examination for
compliance with such provisions and rules would not require FINRA to
develop one or more new examination standards, modules, procedures, or
criteria in order to analyze the application of the rule, or a Common
Member's activity, conduct, or output in relation to such rule. In
addition, under the Plan, FINRA would assume regulatory responsibility
for certain provisions of the federal securities laws and the rules and
regulations thereunder that are set forth in the Certification. The
Common Rules covered by the Plan are specifically listed in the
Certification, as may be amended by the Parties from time to time.
    Under the Plan, each Bats Exchange would retain full responsibility
for surveillance and enforcement with respect to trading activities or
practices involving the Bats Exchange's own marketplace, including,
without limitation, registration pursuant to its applicable rules of
associated persons (i.e., registration rules that are not Common
Rules); its duties as a DEA pursuant to Rule 17d-1 under the Act; and
any Bats Exchange rules that are not Common Rules, except for the Bats
Exchange rules for any broker-dealer

subsidiary of Bats Global Markets, Inc.\24\ Apparent violations of any
Bats Exchanges rules by any broker-dealer subsidiary of Bats Global
Markets, Inc. will be processed by, and enforcement proceedings in
respect thereto will be conducted by, FINRA.\25\ The effect of these
provisions is that regulatory oversight and enforcement
responsibilities for any broker-dealer subsidiary of Bats Global
Markets, Inc., which is the parent company of the Bats Exchanges, will
be vested with FINRA. These provisions should help avoid any potential
conflicts of interest that could arise if a Bats Exchange was primarily
responsible for regulating its affiliated broker-dealers.
---------------------------------------------------------------------------

    \24\ See paragraph 2 of the proposed 17d-2 Plan.
    \25\ See paragraph 6 of the proposed 17d-2 Plan.
---------------------------------------------------------------------------

    According to the Plan, the Bats Exchanges will review the
Certification, at least annually, or more frequently if required by
changes in either the rules of the Bats Exchanges or FINRA, and, if
necessary, submit to FINRA an updated list of Common Rules to add the
Bats Exchanges rules not included on the then-current list of Common
Rules that are substantially similar to FINRA rules; delete the Bats
Exchanges rules included in the then-current list of Common Rules that
are no longer substantially similar to FINRA rules; and confirm that
the remaining rules on the list of Common Rules continue to be the Bats
Exchanges rules that are substantially similar to FINRA rules.\26\
FINRA will then confirm in writing whether the rules listed in any
updated list are Common Rules as defined in the Plan. Under the Plan,
each Bats Exchange will also provide FINRA with a current list of
Common Members and shall update the list no less frequently than once
each quarter.\27\
---------------------------------------------------------------------------

    \26\ See paragraph 2 of the proposed 17d-2 Plan.
    \27\ See paragraph 3 of the proposed 17d-2 Plan.
---------------------------------------------------------------------------

    The Commission is hereby declaring effective a plan that, among
other things, allocates regulatory responsibility to FINRA for the
oversight and enforcement of all the Bats Exchanges rules that are
substantially similar to the rules of FINRA for Common Members of the
Bats Exchanges and FINRA. Therefore, modifications to the Certification
need not be filed with the Commission as an amendment to the Plan,
provided that the Parties are only adding to, deleting from, or
confirming changes to the Bats Exchanges rules in the Certification in
conformance with the definition of Common Rules provided in the Plan.
However, should the Parties decide to add a rule of the Bats Exchanges
to the Certification that is not substantially similar to a FINRA rule;
delete a rule of the Bats Exchanges from the Certification that is
substantially similar to a FINRA rule; or leave on the Certification a
rule of the Bats Exchange that is no longer substantially similar to a
FINRA rule, then such a change would constitute an amendment to the
Plan, which must be filed with the Commission pursuant to Rule 17d-2
under the Act and noticed for public comment.\28\
---------------------------------------------------------------------------

    \28\ The Commission also notes that the addition to or deletion
from the Certification of any federal securities laws, rules, and
regulations for which FINRA would bear responsibility under the Plan
for examining, and enforcing compliance by, Common Members, also
would constitute an amendment to the Plan.
---------------------------------------------------------------------------

    The Plan also permits the Bats Exchanges and FINRA to terminate the
Plan, subject to notice.\29\ The Commission notes, however, that while
the Plan permits the Parties to terminate the Plan, the Parties cannot
by themselves reallocate the regulatory responsibilities set forth in
the Plan, since Rule 17d-2 under the Act requires that any allocation
or re-allocation of regulatory responsibilities be filed with the
Commission.\30\
---------------------------------------------------------------------------

    \29\ See paragraph 12 of the proposed 17d-2 Plan.
    \30\ The Commission notes that paragraph 12 of the Plan reflects
the fact that FINRA's responsibilities under the Plan will continue
in effect until the Commission approves any termination of the Plan.
---------------------------------------------------------------------------

    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 plan is effective.
In particular, the purpose of the proposed Plan is to consolidate, for
administrative ease, the separate bilateral Plans between FINRA and
each Bats Exchange into one combined Plan. The Commission notes that
the original bilateral Plans between FINRA and each Bats Exchange were
published for comment and the Commission did not receive any comments
thereon.\31\ Further, as noted above, the proposed combined Plan
preserves the general framework of each of the current bilateral Plans
while expanding the list of Common Rules allocated under the agreement.
Accordingly, the Commission believes that the proposed plan does not
raise any new regulatory issues that the Commission has not previously
considered, and therefore believes that the Plan should become
effective without any undue delay.
---------------------------------------------------------------------------

    \31\ See supra notes 3-6.
---------------------------------------------------------------------------

V. Conclusion

    This Order gives effect to the Plan filed with the Commission in
File No. 4-705. The Parties shall notify all members affected by the
Plan of their rights and obligations under the Plan.
    It is therefore ordered, pursuant to Section 17(d) of the Act, that
the Plan in File No. 4-705, between FINRA, BZX, BYX, EDGA, and EDGX,
filed pursuant to Rule 17d-2 under the Act, is approved and declared
effective.
    It is further ordered that BZX, BYX, EDGA, and EDGX are relieved of
those responsibilities allocated to FINRA under the Plan in File No. 4-
705.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
---------------------------------------------------------------------------

    \32\ 17 CFR 200.30-3(a)(34).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-24709 Filed 10-12-16; 8:45 am]
BILLING CODE 8011-01-P