[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)]
[Notices]
[Pages 69745-69748]
[FR Doc No: 2015-28520]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76342; File No. SR-NYSEARCA-2015-96]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Requiring Certain
ETP Holders To Participate in Business Continuity and Disaster Recovery
Plans Testing in Connection With Regulation Systems Compliance and
Integrity

November 4, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on October 26, 2015, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.

---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to require certain ETP HoldersSec. \4\ to
participate in business continuity and disaster recovery plans (``BC/DR
Plans'') testing in connection with Regulation Systems Compliance and
Integrity (``Regulation SCI'').\5\ The text of the proposed rule change
is available on the Exchange's Web site at www.nyse.com, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
---------------------------------------------------------------------------

    \4\ Pursuant to NYSE Arca Equities Rule 1.1(n), the term ``ETP
Holder'' refers to a sole proprietorship, partnership, corporation,
limited liability company or other organization in good standing
that has been issued an ETP. An ETP Holder must be a registered
broker or dealer pursuant to Section 15 of the Act. NYSE Arca
Equities Rule 1.1(m) defines ``ETP'' as an Equity Trading Permit
issued by the Exchange for effecting approved securities
transactions on the Exchange.
    \5\ See Securities Exchange Act Release No. 73639 (November 19,
2014), 79 FR 72252 (December 5, 2014) (``SCI Adopting Release'').
---------------------------------------------------------------------------

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

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

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

1. Purpose
    As adopted by the Commission, Regulation SCI applies to certain
self-regulatory organizations (including the Exchange), alternative
trading systems (``ATSs''), plan processors, and exempt clearing
agencies (collectively, ``SCI entities''), and will require these SCI
entities to comply with requirements with respect to the automated
systems central to the performance of their regulated activities. Among
the requirements of Regulation SCI is Rule 1001(a)(2)(v), which
requires the Exchange and other SCI entities to maintain ``[b]usiness
continuity and disaster recovery plans that include maintaining backup
and recovery capabilities sufficiently resilient and geographically
diverse and that are reasonably designed to achieve next business day
resumption of trading and two-hour resumption of critical SCI systems
following a wide-scale disruption.'' \6\ As a matter of course, the
Exchange has put extensive time and resources toward planning for
system failures and already maintains robust BC/DR plans consistent
with the proposed rule. As set forth below, in connection with
Regulation SCI, the Exchange is proposing to require certain ETP
Holders to participate in testing of the operation of the Exchange's
BC/DR plans.
---------------------------------------------------------------------------

    \6\ 17 CFR 242.1001(a)(2)(v).
---------------------------------------------------------------------------

    With respect to an SCI entity's BC/DR plans, including its backup
systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI
entity to: ``[e]stablish standards for the designation of those members
or participants that the SCI entity reasonably determines are, taken as
a whole, the minimum necessary for the maintenance of fair and orderly
markets in the event of the activation of such plans.'' \7\ Paragraph
(b) of Rule 1004 further requires each SCI entity to ``[d]esignate
members or participants pursuant to the standards established in
paragraph (a) of [Rule 1004] and require participation by such
designated members or participants in scheduled functional and
performance testing of the operation of such plans, in the manner and
frequency specified by the SCI entity, provided that such frequency
shall not be less than once every 12 months.'' \8\
---------------------------------------------------------------------------

    \7\ 17 CFR 242.1004(a).
    \8\ 17 CFR 242.1004(b).
---------------------------------------------------------------------------

    To comply with Rule 1004 of Regulation SCI, the Exchange proposes
to amend current Rule 2.2,\9\ governing mandatory testing of Exchange
backup systems as described below. The requirements of revised Rule 2.2
would apply to ETP Holders that transact on the Exchange's equities
market.
---------------------------------------------------------------------------

    \9\ Current Rule 2.2 requires each ETP Holder that has an
electronic interface with the Exchange to participate in industry
testing of computer systems designed to ascertain decimal pricing
conversion compatibility of such computer systems for the
implementation of decimal trading. The Exchange proposes to delete
the text of the current rule as it is obsolete and no longer
applicable.
---------------------------------------------------------------------------

    First, in paragraph (a) of revised Rule 2.2, the Exchange proposes
to establish standards for the designation of ETP Holders that the
Exchange reasonably determines are, taken as a whole, the minimum
necessary for the maintenance of fair and orderly markets in the event
of the activation of the Exchange's business continuity and disaster
recovery plans.
    Second, in paragraph (b) of revised Rule 2.2, the Exchange proposes
to specify that ETP Holders that are designated pursuant to paragraph
(a) of revised Rule 2.2 would be required to participate in scheduled
functional and performance testing of the Exchange's business
continuity and disaster recovery plans, which shall not be less than
once every 12 months.
    Third, in paragraph (c) of revised Rule 2.2, the Exchange proposes
to make clear that Lead Market Makers \10\ that have been determined by
the Exchange to contribute a meaningful percentage of the Exchange's
overall volume, measured on a quarterly or monthly basis, will be
required to participate in scheduled functional and performance
testing. The Exchange further proposes that it may also consider other
factors in determining the ETP Holders that will be required to
participate in scheduled functional and performance testing, including
average daily volume traded on the Exchange measured on a quarterly or
monthly basis, or ETP Holders who collectively account for a certain
percentage of market share on the Exchange.
---------------------------------------------------------------------------

    \10\ The term ``Lead Market Maker'' means a registered Market
Maker that is the exclusive Designated Market Maker in listings for
which the Corporation is the primary market. See Rule 1.1(ccc).
---------------------------------------------------------------------------

    Fourth, in paragraph (d) of revised Rule 2.2, the Exchange proposes
that at least three (3) months prior to a scheduled functional and
performance testing of the Exchange's business continuity and disaster
recovery plans, the Exchange will publish the criteria to be used by
the Exchange to determine which ETP Holders will be required to
participate in such testing and notify those ETP Holders that are
required to participate based on such criteria.\11\ The Exchange
believes that the proposed notice requirements are necessary to provide
ETP Holders with proper advance notice in the event they become subject
to the proposed rule. The proposed timeframes would also provide ETP
Holders with adequate time to prepare for the testing, including any
systems changes needed, to connect to the Exchange's backup systems.
---------------------------------------------------------------------------

    \11\ The Exchange will publish the initial notice to OTP Holders
no later than November 3, 2015.
---------------------------------------------------------------------------

    Finally, in paragraph (e) of revised Rule 2.2, the Exchange
proposes to make clear that ETP Holders not designated pursuant to
standards established in paragraph (a) of revised Rule 2.2 are
permitted to connect to the Exchange's backup systems and may
participate in testing of such systems. Proposed paragraph (e) is
consistent with Regulation SCI, which encourages

``SCI entities to permit non-designated members or participants to
participate in the testing of the SCE entity's BC/DR plans if they
request to do so.'' \12\
---------------------------------------------------------------------------

    \12\ See SCI Adopting Release, supra note 5 at 72350.
---------------------------------------------------------------------------

    The Exchange notes that it encourages all ETP Holders to connect to
the Exchange's backup systems and to participate in testing of such
systems. However, in adopting the requirements in revised Rule 2.2, the
rule will subject only those ETP Holders to mandatory testing that the
Exchange believes are, taken as a whole, the minimum necessary to
maintain fair and orderly markets. The Exchange believes that
designating ETP Holders to participate in mandatory testing because
they, for example, account for a significant portion of the Exchange's
overall volume or maintain exclusive responsibilities with respect to
Exchange-listed securities is a reasonable means to ensure the
maintenance of a fair and orderly market on the Exchange.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\13\ in general, and furthers the
objectives of Sections 6(b)(5) of the Act,\14\ in particular, because
it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to, and
perfect the mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposal will ensure that the ETP Holders necessary to ensure
the maintenance of a fair and orderly market are properly designated
consistent with Rule 1004 of Regulation SCI. Specifically, as proposed,
the Exchange will adopt clear and objective criteria with respect to
the designation of ETP Holders that are required to participate in the
testing of the Exchange's BC/DR plans, as well as appropriate
notification regarding such designation. As set forth in the SCI
Adopting Release, ``SROs have the authority, and legal responsibility,
under Section 6 of the Exchange Act, to adopt and enforce rules
(including rules to comply with Regulation SCI's requirements relating
to BC/DR testing) applicable to their members or participants that are
designed to, among other things, foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest.'' \15\ The Exchange believes
that this proposal is consistent with such authority and legal
responsibility.
---------------------------------------------------------------------------

    \15\ See SCI Adopting Release, supra note 5 at 72350.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the proposal
is not a competitive proposal but rather is necessary for the
Exchange's compliance with Regulation SCI.

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

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

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \17\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \18\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\19\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------

    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest
as it will allow the Exchange to incorporate changes required under
Regulation SCI, such as establishing standards for designating BCP/DR
participants, prior to the November 3, 2015 compliance date.
Accordingly, the Commission designates the proposed rule change to be
operative upon filing.\20\
---------------------------------------------------------------------------

    \20\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \21\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEARCA-2015-96 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEARCA-2015-96. 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 rule change that are filed with the Commission, and all
written communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site viewing and printing in the Commission's Public
Reference Section, 100 F Street NE., Washington, DC 20549-1090. Copies
of the filing will also be available for inspection and copying at the
NYSE's principal office and on its Internet Web site at www.nyse.com.
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 SR-NYSEARCA-2015-
96 and should be submitted on or before December 1, 2015.

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

    \22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-28520 Filed 11-9-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: November 29, 2010 (Volume 75, Number 228)]
[Notices]
[Page 73069]
[DOCID:fr29no10-65]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

 [Project No. 13855-000]

 NortHydro, LLC; Notice of Preliminary Permit Application
Accepted for Filing and Soliciting Comments, Motions To Intervene, and
Competing Applications

November 18, 2010.
    On October 1, 2010, and supplemented on November 16, 2010,
NortHydro, LLC filed an application for a preliminary permit pursuant
to section 4(f) of the Federal Power Act (FPA), proposing to study the
feasibility of the Boulder Creek Water Power Project (Boulder Creek
project) to be located on Boulder Creek in the vicinity of Bonner's
Ferry, Idaho and Troy, Montana in Boundary County, Idaho and Lincoln
County, Montana. The sole purpose of a preliminary permit, if issued,
is to grant the permit holder priority to file a license application
during the permit term. A preliminary permit does not authorize the
permit holder to perform any land-disturbing activities or otherwise
enter upon lands or waters owned by others without the owners' express
permission.
    The proposed project will consist of the following: (1) A 6-foot-
high, 75-foot-long reinforced concrete diversion and inlet structure on
Boulder Creek; (2) an impoundment of less than 1 acre-foot; (3) an
8,500-foot-long, 4.5-foot-diameter pressurized HDPE penstock from the
intake structure to the powerhouse; (4) a powerhouse containing one or
more turbines with a total installed capacity of 4.3 megawatts; (5) a
concrete or rip-rap-lined tailrace channel to return flows from the
powerhouse to Boulder Creek; (6) an approximately 5-mile-long, 115 kV
transmission line which will tie into an undetermined interconnection;
and (7) appurtenant facilities. The estimated annual generation of the
Boulder Creek project would be 15.75 gigawatt-hours.
    Applicant Contact: Darius Ruen, NortHydro, LLC, 3201 Huetter Rd
Suite 102, Coeur d'Alene, ID 83814; phone:<PHONE_NUMBER>.
    FERC Contact: Ryan Hansen<PHONE_NUMBER>.
    Deadline for filing comments, motions to intervene, competing
applications (without notices of intent), or notices of intent to file
competing applications: 60 days from the issuance of this notice.
Competing applications and notices of intent must meet the requirements
of 18 CFR 4.36. Comments, motions to intervene, notices of intent, and
competing applications may be filed electronically via the Internet.
See 18 CFR 385.2001(a)(1)(iii) and the instructions on the Commission's
Web site http: //www.ferc.gov/docs-filing/efiling.asp. Commenters can
submit brief comments up to 6,000 characters, without prior
registration, using the eComment system at http://www.ferc.gov/docs-
filing/ecomment.asp. You must include your name and contact information
at the end of your comments. For assistance, please contact FERC Online
Support. Although the Commission strongly encourages electronic filing,
documents may also be paper-filed. To paper-file, mail an original and
seven copies to: Kimberly D. Bose, Secretary, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426.
    More information about this project, including a copy of the
application, can be viewed or printed on the ``eLibrary'' link of
Commission's Web site at http://www.ferc.gov/docs-filing/elibrary.asp.
Enter the docket number (P-13855-000) in the docket number field to
access the document. For assistance, contact FERC Online Support.

Kimberly D. Bose,
Secretary.
[FR Doc. 2010-29841 Filed 11-26-10; 8:45 am]
BILLING CODE 6717-01-P