[Federal Register: January 16, 2009 (Volume 74, Number 11)]
[Notices]
[Page 3056-3057]
[DOCID:fr16ja09-102]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2008-D-0510]

Draft Guidance for Industry: Submission of Laboratory Packages by
Accredited Laboratories; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA) is announcing the
availability of a draft document entitled ``Guidance for Industry:
Submission of Laboratory Packages by Accredited Laboratories.'' The
draft guidance document provides information and recommendations about
accreditation standards for laboratories and the quality and type of
data that accredited laboratories produce to support testing results
submitted to FDA about the admissibility of detained articles offered
for import. We are taking this action under a recommendation made by
the President's Interagency Working Group on Import Safety (Working
Group).

DATES: Although you can comment on any guidance at any time (see 21 CFR
10.115(g)(5)), to ensure that the agency considers your comment on this
draft guidance before it begins work on the final version of the
guidance, submit written or electronic comments on the draft guidance
by April 16, 2009.

ADDRESSES: Submit written requests for single copies of the draft
guidance to the Office of Executive Operations (HFC-2), Food and Drug
Administration, 5600 Fishers Lane, Rockville, MD 20857. Send one self-
addressed adhesive label to assist that office in processing your
requests.
    Submit written comments on the draft guidance to the Division of
Dockets Management (HFA-305), Food and Drug Administration, 5630
Fishers Lane, rm. 1061, Rockville, MD 20852. Submit electronic comments
to http://www.regulations.gov. See the SUPPLEMENTARY INFORMATION
section for electronic access to the draft guidance document.

FOR FURTHER INFORMATION CONTACT: Donna Porter, Division of Field
Science (HFA-141), Office of Regulatory Affairs, Food and Drug
Administration, 5600 Fishers Lane, Rockville, MD 20857,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    FDA is announcing the availability of a draft document entitled
``Guidance for Industry: Submission of Laboratory Packages by
Accredited Laboratories.'' The draft guidance is about accreditation
standards for laboratories and about the quality and type of data that
accredited laboratories should produce in support of testing results
submitted to FDA pertaining to the admissibility of detained articles
offered for import of all product types (i.e., biological products,
drugs, devices, and food) that we regulate. FDA is taking this action
under a recommendation made by the President's Interagency Working
Group on Import Safety (Working Group). The Working Group was to
conduct a comprehensive review of the U.S. import system and identify
ways to further increase the safety of imports entering the country,
and it presented its initial findings to the President on September 10,
2007, in a report entitled ``Protecting American Consumers Every Step
of the Way: A Strategic Framework for Continual Improvement in Import
Safety.''
    On November 6, 2007, the Working Group presented to the President
its Import Safety Action Plan (Action Plan), which contains short- and
long-term recommendations for continuing to improve the safety of
imports entering the United States. The Action Plan recommended that
FDA issue guidance that ``would set standards for the sampling and
testing of imported products, including the use of accredited
laboratories submitting data to FDA to assist in evaluating whether an
appearance of a violation may be resolved.''
    The issuance of the draft guidance is, therefore, consistent with
the Action Plan and also consistent with FDA's good guidance practices
regulation (21 CFR 10.115). The draft guidance, when finalized, will
represent FDA's current thinking on this topic. It does not create or
confer any rights for or on any person and does not operate to bind FDA
or the public. An alternative approach may be used if such approach
satisfies the requirements of the applicable statutes and regulations.

II. Comments

    The draft guidance is being distributed for comment purposes only
and is not intended for implementation at this time. Interested persons
may submit to the Division of Dockets Management (see ADDRESSES)
written or electronic comments regarding the draft guidance. Submit a
single copy of electronic comments or two paper copies of any mailed
comments, except that individuals may submit one paper copy. Comments
are to be identified with the docket number found in brackets in the
heading of this document. A copy of the draft guidance and received
comments are available for public examination in the Division of
Dockets Management between 9 a.m. and 4 p.m., Monday through Friday.
    Please note that on January 15, 2008, the FDA Division of Dockets
Management Web site transitioned to the Federal Dockets Management
System (FDMS). FDMS is a Government-wide, electronic docket management
system. Electronic comments or submissions will be accepted by FDA only
through FDMS at http://www.regulations.gov.

III. Electronic Access

    Persons with access to the Internet may obtain the draft guidance
at either http://www.fda.gov/ora or http://www.regulations.gov.

    Dated: January 9, 2009.
Jeffrey Shuren,
Associate Commissioner for Policy and Planning.
[FR Doc. E9-837 Filed 1-15-09; 8:45 am]

BILLING CODE 4160-01-S


[Federal Register Volume 80, Number 163 (Monday, August 24, 2015)]
[Notices]
[Page 51346]
[FR Doc No: 2015-20906]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Agency Information Collection Activities: Requests for Comments;
Clearance of Renewed Approval of Information Collection: Certification
of Airmen for the Operation of Light-Sport Aircraft

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice and request for comments.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, FAA
invites public comments about our intention to request the Office of
Management and Budget (OMB) approval to renew an information
collection. The Federal Register Notice with a 60-day comment period
soliciting comments on the following collection of information was
published on May 29, 2015. Regulation generates a need for new
designated pilot examiners and designated airworthiness representatives
to support the certification of new light-sport aircraft, pilots,
flight instructors, and ground instructors.

DATES: Written comments should be submitted by September 23, 2015.

ADDRESSES: Interested persons are invited to submit written comments on
the proposed information collection to the Office of Information and
Regulatory Affairs, Office of Management and Budget. Comments should be
addressed to the attention of the Desk Officer, Department of
Transportation/FAA, and sent via electronic mail to
<EMAIL_ADDRESS>or faxed to<PHONE_NUMBER>, or mailed to
the Office of Information and Regulatory Affairs, Office of Management
and Budget, Docket Library, Room 10102, 725 17th Street NW.,
Washington, DC 20503.
    Public Comments Invited: You are asked to comment on any aspect of
this information collection, including (a) Whether the proposed
collection of information is necessary for FAA's performance; (b) the
accuracy of the estimated burden; (c) ways for FAA to enhance the
quality, utility and clarity of the information collection; and (d)
ways that the burden could be minimized without reducing the quality of
the collected information. The agency will summarize and/or include
your comments in the request for OMB's clearance of this information
collection.

FOR FURTHER INFORMATION CONTACT: Ronda Thompson at<PHONE_NUMBER>, or
by email at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:
    OMB Control Number: 2120-0690.
    Title: Certification of Airmen for the Operation of Light-Sport
Aircraft.
    Form Numbers: FAA form 8130-15, 8710-11, 8710-12.
    Type of Review: Renewal of an information collection.
    Background: The Federal Register Notice with a 60-day comment
period soliciting comments on the following collection of information
was published on May 29, 2015 (80 FR 30757). The Final Rule
``Certification of Aircraft and Airmen for the Operation of Light-Sport
Aircraft'' [69 FR 44771] generated a need for new designated pilot
examiners and designated airworthiness representatives to support the
certification of new light-sport aircraft, pilots, flight instructors,
and ground instructors.
    Respondents: Approximately 57,214 respondents.
    Frequency: Information is collected on occasion.
    Estimated Average Burden per Response: 1.27 hours.
    Estimated Total Annual Burden: 39,640 hours.

    Issued in Washington, DC, on August 18, 2015.
Ronda Thompson,
FAA Information Collection Clearance Officer, IT Enterprises Business
Services Division, ASP-110.
[FR Doc. 2015-20906 Filed 8-21-15; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9757-9765]
[FR Doc No: 2017-02547]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79929; File No. S7-966]

Program for Allocation of Regulatory Responsibilities Pursuant to
Rule 17d-2; Notice of Filing and Order Approving and Declaring
Effective an Amendment to the Plan for the Allocation of Regulatory
Responsibilities Among NYSE MKT LLC, Bats BZX Exchange, Inc., BOX
Options Exchange LLC, C2 Options Exchange, Incorporated, the Chicago
Board Options Exchange, Incorporated, Bats EDGX Exchange, Inc., the
International Securities Exchange LLC, ISE Gemini, LLC, ISE Mercury,
LLC, Financial Industry Regulatory Authority, Inc., NYSE Arca, Inc.,
The NASDAQ Stock Market LLC, NASDAQ BX, Inc., the NASDAQ PHLX, Inc.,
Miami International Securities Exchange, LLC, and MIAX PEARL, LLC
Concerning Options-Related Sales Practice Matters

February 2, 2017.
    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 an amendment to the plan for allocating regulatory
responsibility (``Plan'') filed on January 13, 2017, pursuant to Rule
17d-2 of the Act,\2\ by NYSE MKT LLC (``MKT''), Bats BZX Exchange,
Inc., (``Bats''), the BOX Options Exchange LLC (``BOX''), C2 Options
Exchange, Incorporated (``C2''), the Chicago Board Options Exchange,
Incorporated (``CBOE''), Bats EDGX Exchange, Inc. (``EDGX''), the
International Securities Exchange LLC (``ISE''), ISE Gemini, LLC
(``Gemini''), ISE Mercury, LLC (``ISE Mercury''), Financial Industry
Regulatory Authority, Inc. (``FINRA''), NYSE Arca, Inc. (``Arca''), The
NASDAQ Stock Market LLC (``Nasdaq''), NASDAQ BX, Inc. (``BX''), NASDAQ
PHLX, Inc. (``PHLX''), Miami International Securities Exchange
(``MIAX''), and MIAX PEARL, LLC (``MIAX PEARL'') (collectively,
``Participating Organizations'' or ``parties'').
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    \1\ 15 U.S.C. 78q(d).
    \2\ 17 CFR 240.17d-2.
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I. Introduction

    Section 19(g)(1) of the Act,\3\ 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) \4\ or Section 19(g)(2) \5\ of the Act.
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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    \3\ 15 U.S.C. 78s(g)(1).
    \4\ 15 U.S.C. 78q(d).
    \5\ 15 U.S.C. 78s(g)(2).
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    Section 17(d)(1) of the Act \6\ was intended, in part, to eliminate
unnecessary multiple examinations and regulatory duplication.\7\ 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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    \6\ 15 U.S.C. 78q(d)(1).
    \7\ 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.\8\ 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.\9\ 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-1 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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    \8\ 17 CFR 240.17d-1 and 17 CFR 240.17d-2, respectively.
    \9\ 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.\10\ 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 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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    \10\ See Securities Exchange Act Release No. 12935 (October 28,
1976), 41 FR 49091 (November 8, 1976).
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II. The Plan

    On September 8, 1983, the Commission approved the SRO participants'
plan for allocating regulatory responsibilities pursuant to Rule 17d-
2.\11\ On May 23, 2000, the Commission approved an amendment to the
plan that added the ISE as a participant.\12\ On November 8, 2002, the
Commission approved another amendment that replaced the original plan
in its entirety and, among other things, allocated regulatory
responsibilities among all the participants in a more equitable
manner.\13\ On February 5, 2004, the Commission approved an amendment
to the plan, primarily to include the BSE, which was establishing a new
options trading facility to be known as BOX, as an SRO participant.\14\
On March 26, 2007, the Commission approved an amendment to the plan
that, among other things, provided that the National Association of
Securities Dealers (``NASD'') (n/k/a FINRA) and NYSE are Designated
Options Examining Authorities under the plan.\15\ On March 12, 2008,
the Commission approved an amendment to the plan primarily to add
NASDAQ as an SRO participant.\16\ On June 18, 2008, the Commission
approved an amendment to the plan primarily to remove the NYSE as a
Designated Options Examining Authority, leaving FINRA as the sole
Designated Options Examining Authority for all common members that are
members of FINRA.\17\ On February 25, 2010, the Commission approved a
proposed amendment to the plan to add Bats and C2 as SRO participants
and to reflect the name changes of the American Stock Exchange LLC to
the NYSE Amex LLC, the Boston Stock Exchange, Inc., to the NASDAQ OMX
BX, Inc. and the Philadelphia Stock Exchange, Inc. to the NASDAQ OMX
PHLX, Inc.\18\ On May 11, 2012, the Commission approved an amendment to
the plan to add BOX as an SRO participant and to amend Section XIII of
the plan to set forth a revised procedure for adding new participants
to the plan.\19\ On December 5, 2012, the Commission approved an
amendment to the plan to add MIAX as an SRO participant, and to change
the name of NYSE Amex LLC to NYSE MKT LLC.\20\ On July 26, 2013, the
Commission approved an amendment to the plan to add Topaz Exchange LLC
as an SRO participant.\21\ On October 29, 2015, the Commission approved
an amendment to the plan to add EDGX as an SRO participant and to
change the name of Topaz Exchange, LLC to ISE Gemini, LLC.\22\ On
February 16, 2016, the Commission approved an amendment to the plan to
add ISE Mercury, and remove the NYSE, as an SRO participant to the
Plan.\23\
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    \11\ See Securities Exchange Act Release No. 20158 (September 8,
1983), 48 FR 41256 (September 14, 1983).
    \12\ See Securities Exchange Act Release No. 42816 (May 23,
2000), 65 FR 34759 (May 31, 2000).
    \13\ See Securities Exchange Act Release No. 46800 (November 8,
2002), 67 FR 69774 (November 19, 2002).
    \14\ See Securities Exchange Act Release No. 49197 (February 5,
2004), 69 FR 7046 (February 12, 2004).
    \15\ See Securities Exchange Act Release No. 55532 (March 26,
2007), 72 FR 15729 (April 2, 2007).
    \16\ See Securities Exchange Act Release No. 57481 (March 12,
2008), 73 FR 14507 (March 18, 2008).
    \17\ See Securities Exchange Act Release No. 57987 (June 18,
2008), 73 FR 36156 (June 25, 2008).
    \18\ See Securities Exchange Act Release No. 61589 (February 25,
2012), 75 FR 9976 (March 4, 2010).
    \19\ See Securities Exchange Act Release No. 66974 (May 11,
2012), 77 FR 29705 (May 18, 2012).
    \20\ See Securities Exchange Act Release No. 68363 (December 5,
2012), 77 FR 73711 (December 11, 2012).
    \21\ See Securities Exchange Act Release No. 70051 (July 26,
2013), 78 FR 46644 (August 1, 2013).
    \22\ See Securities Exchange Act Release No. 76309 (October 29,
2015), 80 FR 68361 (November 4, 2015).
    \23\ See Securities Exchange Act Release No. 77148 (February 16,
2016), 81 FR 8775 (February 22, 2016).
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    The plan reduces regulatory duplication for a large number of firms
currently members of two or more of the SRO participants by allocating
regulatory responsibility for certain options-related sales practice
matters to one of the SRO participants. Generally, under the plan, the
SRO participant responsible for conducting options-related sales
practice examinations of a firm, and investigating options-related
customer complaints and terminations for cause of associated persons of
that firm, is known as the firm's ``Designated Options Examining
Authority'' (``DOEA''). Pursuant to the plan, any other SRO of which
the firm is a member is relieved of these responsibilities during the
period in which the firm is assigned to another SRO acting as that
firm's DOEA.

III. Proposed Amendment to the Plan

    On January 13, 2017, the Parties submitted a proposed amendment to
the Plan. The primary purpose of the amendment is to add MIAX PEARL as
a participant to the Plan. The text of the proposed amended 17d-2 plan
is as follows (additions are italicized; deletions are [bracketed]):
* * * * *
Agreement by and among [BATS]Bats BZX Exchange, Inc., BOX Options
Exchange, LLC, the Chicago Board Options Exchange, Incorporated, C2
Options Exchange, Incorporated, the International Securities Exchange,
LLC, Financial Industry Regulatory Authority, Inc., Miami International
Securities Exchange, LLC, the NYSE MKT LLC, the NYSE Arca, Inc., The
NASDAQ Stock Market LLC, NASDAQ [OMX] BX, Inc., the NASDAQ [OMX] PHLX
LLC, ISE Gemini, LLC, Bats EDGX Exchange, Inc., [and] ISE Mercury, LLC
and MIAX PEARL, LLC, Pursuant to Rule 17d-2 under the Securities
Exchange Act of 1934.

    This agreement (``Agreement''), by and among [BATS]Bats BZX
Exchange, Inc., BOX Options Exchange, LLC, the Chicago Board Options
Exchange, Incorporated, C2 Options Exchange, Incorporated, the
International Securities Exchange, LLC, Financial Industry Regulatory
Authority, Inc. (``FINRA''), Miami International Securities Exchange,
LLC, The NASDAQ Stock Market LLC (``NASDAQ''), NASDAQ [OMX] BX, Inc.,
the NYSE MKT LLC, the NYSE Arca, Inc., the NASDAQ [OMX] PHLX

LLC, ISE Gemini, LLC, Bats EDGX Exchange, Inc., [and] ISE Mercury, LLC
and MIAX PEARL, LLC, hereinafter collectively referred to as the
Participants, is made this [2nd]13th day of [February]January, 201[6]7,
pursuant to the provisions of Rule 17d-2 under the Securities Exchange
Act of 1934 (the ``Exchange Act''), which allows for plans among self-
regulatory organizations to allocate regulatory responsibility. This
Agreement shall be administered by a committee known as the Options
Self-Regulatory Council (the ``Council'').
    This Agreement amends and restates the agreement entered into among
the Participants on [October 8, 2015] February 3, 2016, entitled
``Agreement by and among BATS Exchange, Inc., BOX Options Exchange,
LLC, the Chicago Board Options Exchange, Incorporated, C2 Options
Exchange, Incorporated, the International Securities Exchange, LLC,
Financial Industry Regulatory Authority, Inc., Miami International
Securities Exchange, LLC, the New York Stock Exchange LLC, NYSE MKT
LLC, the NYSE Arca, Inc., the NASDAQ Stock Market LLC, NASDAQ OMX BX,
Inc., the NASDAQ OMX PHLX, Inc., ISE Gemini, LLC, [and] EDGX Exchange,
Inc. and ISE Mercury, LLC, Pursuant to Rule 17d-2 under the Securities
Exchange Act of 1934.''
    Whereas, the Participants are desirous of allocating regulatory
responsibilities with respect to broker-dealers, and persons associated
therewith, that are members \1\ of more than one Participant (the
``Common Members'') and conduct a public business for compliance with
Common Rules (as hereinafter defined) relating to the conduct by
broker-dealers of accounts for listed options, index warrants, currency
index warrants and currency warrants (collectively, ``Covered
Securities''); and
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    \1\ In the case of BOX Options Exchange, LLC (``BOX''), NASDAQ
OMX BX, Inc. (``BX'') and NASDAQ members are those persons who are
options participants (as defined in the BOX, BX and NASDAQ Options
Market Rules).
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    Whereas, the Participants are desirous of executing a plan for this
purpose pursuant to the provisions of Rule 17d-2 and filing such plan
with the Securities and Exchange Commission (``SEC'' or the
``Commission'') for its approval;
    Now, therefore, in consideration of the mutual covenants contained
hereafter, the Participants agree as follows:
    I. As used herein the term Designated Options Examining Authority
(``DOEA'') shall mean: (1) FINRA insofar as it shall perform Regulatory
Responsibility (as hereinafter defined) for its broker-dealer members
that also are members of another Participant or (2) the Designated
Examination Authority (``DEA'') pursuant to SEC Rule 17d-1 under the
Securities Exchange Act (``Rule 17d-1'') for a broker-dealer that is a
member of a more than one Participant (but not a member of FINRA).
    II. As used herein, the term ``Regulatory Responsibility'' shall
mean the examination and enforcement responsibilities relating to
compliance by Common Members with the rules of the applicable
Participant that are substantially similar to the rules of the other
Participants (the ``Common Rules''), insofar as they apply to the
conduct of accounts for Covered Securities. A list of the current
Common Rules of each Participant applicable to the conduct of accounts
for Covered Securities is attached hereto as Exhibit A. Each year
within 30 days of the anniversary date of the commencement of operation
of this Agreement, each Participant shall submit in writing to FINRA
and each DEA performing as a DOEA for any members of such Participant
any revisions to Exhibit A reflecting changes in the rules of the
Participant, and confirm that all other rules of the Participant listed
in Exhibit A continue to meet the definition of Common Rules as defined
in this Agreement. Within 30 days from the date that FINRA and each DEA
performing as a DOEA has received revisions and/or confirmation that no
change has been made to Exhibit A from all Participants, FINRA and each
DEA performing as a DOEA shall confirm in writing to each Participant
whether the rules listed in any updated Exhibit A are Common Rules as
defined in this Agreement. Notwithstanding anything herein to the
contrary, it is explicitly understood that the term ``Regulatory
Responsibility'' does not include, and each of the Participants shall
(unless allocated pursuant to Rule 17d-2 otherwise than under this
Agreement) retain full responsibility for, each of the following:
    (a) Surveillance and enforcement with respect to trading activities
or practices involving its own marketplace, including without
limitation its rules relating to the rights and obligations of
specialists and other market makers;
    (b) Registration pursuant to its applicable rules of associated
persons;
    (c) Discharge of its duties and obligations as a DEA; and
    (d) Evaluation of advertising, responsibility for which shall
remain with the Participant to which a Common Member submits same for
approval.
    III. Apparent violations of another Participant's rules discovered
by a DOEA, but which rules are not within the scope of the discovering
DOEA's Regulatory Responsibility, shall be referred to the relevant
Participant for such action as the Participant to which such matter has
been referred deems appropriate. Notwithstanding the foregoing, nothing
contained herein shall preclude a DOEA in its discretion from
requesting that another Participant conduct an enforcement proceeding
on a matter for which the requesting DOEA has Regulatory
Responsibility. If such other Participants agree, the Regulatory
Responsibility in such case shall be deemed transferred to the
accepting Participant and confirmed in writing by the Participants
involved. Each Participant agrees, upon request, to make available
promptly all relevant files, records and/or witnesses necessary to
assist another Participant in an investigation or enforcement
proceeding.
    IV. The Council shall be composed of one representative designated
by each of the Participants. Each Participant shall also designate one
or more persons as its alternate representative(s). In the absence of
the representative of a Participant, such alternate representative
shall have the same powers, duties and responsibilities as the
representative. Each Participant may, at any time, by notice to the
then Chair of the Council, replace its representative and/or its
alternate representative on such Council. A majority of the Council
shall constitute a quorum and, unless specifically otherwise required,
the affirmative vote of a majority of the Council members present (in
person, by telephone or by written consent) shall be necessary to
constitute action by the Council. The representative from FINRA shall
serve as Chair of the Council. All notices and other communications for
the Council shall be sent to it in care of the Chair or to each of the
representatives.
    V. The Council shall determine the times and locations of Council
meetings, provided that the Chair, acting alone, may also call a
meeting of the Council in the event the Chair determines that there is
good cause to do so. To the extent reasonably possible, notice of any
meeting shall be given at least ten-business days prior thereto.
Notwithstanding anything herein to the contrary, representatives shall
always be given the option of participating in any meeting
telephonically at their own expense rather than in person.
    VI. FINRA shall have Regulatory Responsibility for all Common
Members that are members of FINRA. For the

purpose of fulfilling the Participants' Regulatory Responsibilities for
Common Members that are not members of FINRA, the Participant that is
the DEA shall serve as the DOEA. All Participants shall promptly notify
the DOEAs no later than the next scheduled meeting of any change in
membership of Common Members. A DOEA may request that a Common Member
that is allocated to it be reallocated to another DOEA by giving thirty
days written notice thereof. The DOEAs in their discretion may approve
such request and reallocate such Common Member to another DOEA.
    VII. Each DOEA shall conduct an examination of each Common Member.
The Participants agree that, upon request, relevant information in
their respective files relative to a Common Member will be made
available to the applicable DOEA. At each meeting of the Council, each
DOEA shall be prepared to report on the status of its examination
program for the previous quarter and any period prior thereto that has
not previously been reported to the Council.
    VIII. Each DOEA will promptly furnish a copy of the Examination
report, relating to Covered Securities, of any examination made
pursuant to the provisions of this Agreement to each other Participant
of which the Common Member examined is a member.
    IX. Each DOEA's Regulatory Responsibility shall for each Common
Member allocated to it include investigations into terminations ``for
cause'' of associated persons relating to Covered Securities, unless
such termination is related solely to another Participant's market. In
the latter instance, that Participant to whose market the termination
for cause relates shall discharge Regulatory Responsibility with
respect to such termination for cause. In connection with a DOEA's
examination, investigation and/or enforcement proceeding regarding a
Covered Security-related termination for cause, the other Participants
of which the Common Member is a member shall furnish, upon request,
copies of all pertinent materials related thereto in their possession.
As used in this Section, ``for cause'' shall include, without
limitation, terminations characterized on Form U5 under the label
``Permitted to Resign,'' ``Discharge'' or ``Other.''
    X. Each DOEA shall discharge the Regulatory Responsibility for each
Common Member allocated to it relative to a Covered Securities-related
customer complaint \2\ unless such complaint is uniquely related to
another Participant's market. In the latter instance, the DOEA shall
forward the matter to that Participant to whose market the matter
relates, and the latter shall discharge Regulatory Responsibility with
respect thereto. If a Participant receives a customer complaint for a
Common Member related to a Covered Security for which the Participant
is not the DOEA, the Participant shall promptly forward a copy of such
complaint to the DOEA.
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    \2\ For purposes of complaints, they can be reported pursuant to
Form U4, Form U5 or RE-3 and any amendments thereto.
---------------------------------------------------------------------------

    XI. Any written notice required or permitted to be given under this
Agreement shall be deemed given if sent by certified mail, return
receipt requested, or by a comparable means of electronic communication
to each Participant entitled to receipt thereof, to the attention of
the Participant's representative on the Council at the Participant's
then principal office or by email at such address as the representative
shall have filed in writing with the Chair.
    XII. The Participants shall notify the Common Members of this
Agreement by means of a uniform joint notice approved by the Council.
    XIII. This Agreement may be amended to add a new Participant
provided that such Participant does not assume Regulatory
Responsibility, solely by an amendment by FINRA and such new
Participant. All other Participants expressly consent to allow FINRA to
add new Participants to this Agreement as provided above. FINRA will
promptly notify all Participants of any such amendments to add new
Participants. All other amendments to this Agreement must be approved
in writing by each Participant. All amendments, including adding a new
Participant, must be filed with and approved by the SEC before they
become effective.
    XIV. Any of the Participants may manifest its intention to cancel
its participation in this Agreement at any time by giving the Council
written notice thereof at least 90 days prior to the effective date of
such cancellation. Upon receipt of such notice the Council shall
allocate, in accordance with the provisions of this Agreement, any
Common Members for which the petitioning party was the DOEA. Until such
time as the Council has completed the reallocation described above; the
petitioning Participant shall retain all its rights, privileges, duties
and obligations hereunder.
    XV. The cancellation of its participation in this Agreement by any
Participant shall not terminate this Agreement as to the remaining
Participants. This Agreement will only terminate following notice to
the Commission, in writing, by the then Participants that they intend
to terminate the Agreement and the expiration of the applicable notice
period. Such notice shall be given at least six months prior to the
intended date of termination, provided that in the event a notice of
cancellation is received from a Participant that, assuming the
effectiveness thereof, would result in there being just one remaining
member of the Council, notice to the Commission of termination of this
Agreement shall be given promptly upon the receipt of such notice of
cancellation, which termination shall be effective upon the
effectiveness of the cancellation that triggered the notice of
termination to the Commission.
    XVI. No Participant nor the Council nor any of their respective
directors, governors, officers, employees or representatives shall be
liable to any other Participant in 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 Responsibility 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 more of the
Participants and caused by the willful misconduct of one or more of the
other participants or their respective directors, governors, officers,
employees or representatives. No warranties, express or implied, are
made by any or all of the Participants or the Council with respect to
any Regulatory Responsibility to be performed by each of them
hereunder.
    XVII. Pursuant to Section 17(d)(1)(A) of the Securities Exchange
Act of 1934 and Rule 17d-2 promulgated pursuant thereto, the
Participants join in requesting the Securities and Exchange Commission,
upon its approval of this Agreement or any part thereof, to relieve
those Participants which are from time to time participants in this
Agreement which are not the DOEA as to a Common Member of any and all
Regulatory Responsibility with respect to the matters allocated to the
DOEA.
* * * * *

[February 2, 2016]January 13, 2017

Exhibit A

Rules Enforced Under 17d-2 Agreement

    Pursuant to Section II of the Agreement by and among [BATS]Bats BZX
Exchange, Inc. (``[BATS]BZX''), BOX Options Exchange, LLC (``BOX''),
the Chicago Board Options Exchange, Incorporated (``CBOE''), C2 Options
Exchange, Incorporated (``C2''), the International Securities Exchange,
LLC (``ISE''), Financial Industry Regulatory Authority, Inc.
(``FINRA''), Miami International Securities Exchange, LLC (``MIAX''),
The NASDAQ Stock Market LLC (``NASDAQ''), NASDAQ [OMX] BX, Inc.
(``BX''), the NYSE MKT LLC (``NYSE MKT''), the NYSE Arca, Inc. (``NYSE
ARCA''), the NASDAQ [OMX] PHLX LLC (``PHLX''), ISE Gemini, LLC (``ISE
Gemini''), [and] Bats EDGX Exchange, Inc. (``EDGX''), [and] ISE
Mercury, LLC (``ISE Mercury'') and MIAX PEARL (``MIAX PEARL'') pursuant
to Rule 17d-2 under the Securities Exchange Act of 1934 dated [February
2, 2016] January 13, 2017 (the ``Agreement''), a revised list of the
current Common Rules of each Participant, as compared to those of
FINRA, applicable to the conduct of accounts for Covered Securities is
set forth in this Exhibit A.

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

------------------------------------------------------------------------
                           Opening of Accounts
------------------------------------------------------------------------
NYSE MKT.....................  Rules 411, 921 and 1101.
[BATS]BZX....................  Rule 26.2.
BOX..........................  Rule 4020.
CBOE.........................  Rule 9.7.
C2 *.........................  CBOE Rule 9.7.
EDGX.........................  Rule 26.2.
ISE..........................  Rule 608.
FINRA........................  Rules 2360(b)(16) and 2352.
MIAX.........................  Rule 1307.
MIAX PEARL...................  Rule 1307.
ISE Gemini...................  Rule 608.
ISE Mercury..................  Rule 608.
PHLX.........................  Rule 1024(b) and (c).\1\
NYSE ARCA....................  Options Rules 9.2(a) and 9.18(b) and
                                Equities Rules 9.18(b) and 8.4.
BX...........................  Chapter XI, Section 7.
NASDAQ.......................  Chapter XI, Section 7.
------------------------------------------------------------------------
                               Supervision
------------------------------------------------------------------------
NYSE MKT.....................  Rules 411, 922 and 1104.
[BATS]BZX....................  Rule 26.3.
BOX..........................  Rule 4030.
CBOE.........................  Rule 9.8. \2\
C2...........................  CBOE Rule 9.8. \2\
EDGX.........................  Rule 26.3.
ISE..........................  Rule 609.
FINRA........................  Rules 2360(b)(20), 2360(b)(17)(B),
                                2360(b)(16)(E), 2355 and 2358.
MIAX.........................  Rule1308.
MIAX PEARL...................  Rule 1308.
ISE Gemini...................  Rule 609.
ISE Mercury..................  Rule 609.
PHLX.........................  Rule 1025.
NYSE ARCA....................  Options Rules 9.2(b) and 9.18(d)(2)(G)
                                and Equities Rule[s 9.18(d)(2)(G) and]
                                8.7.
BX...........................  Chapter XI, Section 8.
NASDAQ.......................  Chapter XI, Section 8.
------------------------------------------------------------------------
                               Suitability
------------------------------------------------------------------------
NYSE MKT.....................  Rules 923 and 1102.
[BATS]BZX....................  Rule 26.4.
BOX..........................  Rule 4040.
CBOE.........................  Rule 9.9.
C2...........................  CBOE Rule 9.9.
EDGX.........................  Rule 26.4.
ISE..........................  Rule 610.
FINRA........................  Rule 2360(b)(19) and 2353.
MIAX.........................  Rule 1309.
MIAX PEARL...................  Rule 1309.
ISE Gemini...................  Rule 610.
ISE Mercury..................  Rule 610.
PHLX.........................  Rule 1026.
NYSE ARCA....................  Options Rule 9.18(c) and Equities Rules
                                9.18(c) and 8.5.
BX...........................  Chapter XI, Section 9.
NASDAQ.......................  Chapter XI, Section 9.
------------------------------------------------------------------------
                         Discretionary Accounts
------------------------------------------------------------------------
NYSE MKT.....................  Rules 421, 924 and 1103.
[BATS]BZX....................  Rule 26.5. \3\
BOX..........................  Rule 4050.

CBOE.........................  Rule 9.10.
C2...........................  CBOE Rule 9.10.
EDGX.........................  Rule 26.5. \3\
ISE..........................  Rule 611.
FINRA........................  Rules 2360(b)(18) and 2354.
MIAX.........................  Rule 1310.
MIAX PEARL...................  Rule 1310.
ISE Gemini...................  Rule 611.
ISE Mercury..................  Rule 611.
PHLX.........................  Rule 1027.
NYSE ARCA....................  Options Rule 9.18(e) and Equities Rules
                                9.18(e) and 8.6.
BX...........................  Chapter XI, Section 10.
NASDAQ.......................  Chapter XI, Section 10.
------------------------------------------------------------------------
                  Customer Communications (Advertising)
------------------------------------------------------------------------
NYSE MKT.....................  Rules 991 and 1106.
[BATS]BZX....................  Rule 26.16.
BOX..........................  Rule 4170.
CBOE.........................  Rule 9.21.
C2...........................  CBOE Rule 9.21.
EDGX.........................  Rule 26.16.
ISE..........................  Rule 623.
FINRA........................  Rules 2220 and 2357.
MIAX.........................  Rule 1322.
MIAX PEARL...................  Rule 1322.
ISE Gemini...................  Rule 623.
ISE Mercury..................  Rule 623.
PHLX.........................  N/A.
NYSE ARCA....................  Options Rules 9.21(a) and 9.21(b).
BX...........................  Chapter XI, Section 22.
NASDAQ.......................  Chapter XI, Section 22.
------------------------------------------------------------------------
                           Customer Complaints
------------------------------------------------------------------------
NYSE MKT.....................  Rules 932 and 1105.
[BATS]BZX....................  Rule 26.17.
BOX..........................  Rule 4190.
CBOE.........................  Rule 9.23.
C2...........................  CBOE Rule 9.23.
EDGX.........................  Rule 26.17.
ISE..........................  Rule 625.
FINRA........................  FINRA Rules 2360(b)(17)(A) and 2356.
MIAX.........................  Rule 1324.
MIAX PEARL...................  Rule 1324.
ISE Gemini...................  Rule 625.
ISE Mercury..................  Rule 625.
PHLX.........................  Rule 1028.
NYSE ARCA....................  Options Rule 9.18(I) and Equities Rules
                                9.18(l) and 8.8.
BX...........................  Chapter XI, Section 24.
NASDAQ.......................  Chapter XI, Section 24.
------------------------------------------------------------------------
                           Customer Statements
------------------------------------------------------------------------
NYSE MKT.....................  Rules 419 and 930.
[BATS]BZX....................  Rule 26.7.
BOX..........................  Rule 4070.
CBOE.........................  Rule 9.12.
C2...........................  CBOE Rule 9.12.
EDGX.........................  Rule 26.7.
ISE..........................  Rules 613.
FINRA........................  Rule 2360(b)(15).
MIAX.........................  Rule 1312.
MIAX PEARL...................  Rule 1312.
ISE Gemini...................  Rule 613.
ISE Mercury..................  Rule 613.
PHLX.........................  Rule 1032.
NYSE ARCA....................  Options Rule 9.18(j) and Equities Rule
                                9.18(j).
BX...........................  Chapter XI, Sections 12.
NASDAQ.......................  Chapter XI, Section 12.
------------------------------------------------------------------------
                              Confirmations
------------------------------------------------------------------------
NYSE MKT.....................  Rule 925.
[BATS]BZX....................  Rule 26.6.
BOX..........................  Rule 4060.
CBOE.........................  Rule 9.11.

C2...........................  CBOE Rule 9.11.
EDGX.........................  Rule 26.6.
ISE..........................  Rule 612.
FINRA........................  Rule 2360(b)(12).
MIAX.........................  Rule 1311.
MIAX PEARL...................  Rule 1311.
ISE Gemini...................  Rule 612.
ISE Mercury..................  Rule 612.
PHLX.........................  Rule 1028.
NYSE ARCA....................  Options Rule 9.18(f) and Equities Rule
                                9.18([j]f).
BX...........................  Chapter XI, Section 11.
NASDAQ.......................  Chapter XI, Section 11.
------------------------------------------------------------------------
                Allocation of Exercise Assignment Notices
------------------------------------------------------------------------
NYSE MKT.....................  Rule 981.
[BATS]BZX....................  Rule 23.2.
BOX..........................  Rule 9010.
CBOE.........................  Rule 11.2.
C2...........................  CBOE Rule 11.2.
EDGX.........................  Rule 23.2.
ISE..........................  Rule 1101.
FINRA........................  Rule 2360(b)(23)(C).
MIAX.........................  Rule 701.
MIAX PEARL...................  Rule 701.
ISE Gemini...................  Rule 1101.
ISE Mercury..................  Rule 1101.
PHLX.........................  Rule 1043.
NYSE ARCA....................  Options Rule 6.25(a).
BX...........................  Chapter VIII, Section 2.
NASDAQ.......................  Chapter VIII, Section 2.
------------------------------------------------------------------------
                          Disclosure Documents
------------------------------------------------------------------------
NYSE MKT.....................  Rules 921 and 926.
[BATS]BZX....................  Rule 26.10.
BOX..........................  Rule 4100.
CBOE.........................  Rule 9.15.
C2...........................  CBOE Rule 9.15.
EDGX.........................  Rule 26.10.
ISE..........................  Rule 616.
FINRA........................  Rule 2360(b)(11).
MIAX.........................  Rule 1315.
MIAX PEARL...................  Rule 1315.
ISE Gemini...................  Rule 616.
ISE Mercury..................  Rule 616.
PHLX.........................  Rule 1024(b)(v), 1029.
NYSE ARCA....................  Options Rule 9.18(g) and Equities Rule
                                9.18(g).
BX...........................  Chapter XI, Section 15.
NASDAQ.......................  Chapter XI, Section 15.
------------------------------------------------------------------------
                 Branch Offices of Member Organizations
------------------------------------------------------------------------
NYSE MKT.....................  Rule 922(d). \4\
BOX..........................  Rule 4010(b).
CBOE.........................  Rule 9.6.
C2...........................  CBOE Rule 9.6.
ISE..........................  Rule 607.
FINRA........................  Rules 2360(b)(20)(B) and 2355.
MIAX.........................  Rule 1306.
MIAX PEARL...................  Rule 1306.
ISE Gemini...................  Rule 607.
ISE Mercury..................  Rule 607.
PHLX.........................  N/A.
NYSE ARCA....................  Options Rule 9.18(m) and Equities Rule
                                9.18(m).
BX...........................  Chapter XI, Section 6.
NASDAQ.......................  Chapter XI, Section 6.
------------------------------------------------------------------------
                     Prohibition Against Guarantees
------------------------------------------------------------------------
NYSE MKT.....................  Rule 390.
[BATS]BZX....................  Rule 26.13.
BOX..........................  Rule 4130.
CBOE.........................  Rule 9.18.
C2...........................  CBOE Rule 9.18.
EDGX.........................  Rule 26.13.
ISE..........................  Rules 619.

FINRA........................  Rule 2150(b).
MIAX.........................  Rule 1318.
MIAX PEARL...................  Rule 1318.
ISE Gemini...................  Rule 619.
ISE Mercury..................  Rule 619.
PHLX.........................  Rule 777.
NYSE ARCA....................  Options Rule 9.1(e) and Equities Rule
                                9.1(e).
BX...........................  Chapter XI, Sections 18 and 19.
NASDAQ.......................  Chapter XI, Sections 18 and 19.
------------------------------------------------------------------------
                           Sharing in Accounts
------------------------------------------------------------------------
NYSE MKT.....................  Rule 390.
[BATS]BZX....................  Rule 26.14. \6\
BOX..........................  Rule 4140.
CBOE.........................  Rule 9.18(b).
C2...........................  CBOE Rule 9.18(b).
EDGX.........................  Rule 26.14, \6\
ISE..........................  Rule 620. \5\
FINRA........................  Rule 2150(c).
MIAX.........................  Rule 1319.
MIAX PEARL...................  Rule 1319.
ISE Gemini...................  Rule 620. \5\
ISE Mercury..................  Rule 620. \5\
PHLX.........................  N/A.
NYSE ARCA....................  Options Rule 9.1(f).
BX...........................  Chapter XI, Section 19. \6\
NASDAQ.......................  Chapter XI, Section 19. \6\
------------------------------------------------------------------------
                           Registration of ROP
------------------------------------------------------------------------
NYSE MKT.....................  Rule 920.
[BATS]BZX....................  Rule 17.2(g)(1), (2), (6) and (7).
BOX..........................  Rule 2020(c)(1), (e)(1) and IM-2040-4 and
                                IM-2040-5(b).
CBOE.........................  Rule 9.2.
C2...........................  CBOE Rule 9.2.
EDGX.........................  Rule 17.2(g)(1), (2), (6) and (7).
ISE..........................  Rule 601.
FINRA........................  NASD Rules 1022(f), IM-1022-1, &
                                1250(a)(1).
MIAX.........................  Rule 1301.
MIAX PEARL...................  Rule 1301.
ISE Gemini...................  Rule 601.
ISE Mercury..................  Rule 601.
PHLX.........................  Rule 1024(a)(i).
NYSE ARCA....................  Options Rule 9.26 and Equities Rule 9.26.
BX...........................  Chapter XI, Section 2 and Chapter II,
                                Section 2(g).
NASDAQ.......................  Chapter XI, Section 2 and Chapter II,
                                Section 2(g).
------------------------------------------------------------------------
                  Certification of Registered Personnel
------------------------------------------------------------------------
NYSE MKT.....................  Rule 920.
[BATS]BZX....................  Rule 2.5 Interpretation .01(c) and
                                11.4(e).
BOX..........................  IM-2040-3.
CBOE.........................  Rule 9.3.
C2...........................  CBOE Rule 9.3.
EDGX.........................  Rule 2.5 Interpretation .01(c) and
                                11.4(e).
ISE..........................  Rule 602.
FINRA........................  NASD Rule 1032(d).
MIAX.........................  Rule 1302.
MIAX PEARL...................  Rule 1302.
ISE Gemini...................  Rule 602.
ISE Mercury..................  Rule 602.
PHLX.........................  Rule 1024.
NYSE ARCA....................  Options Rule 9.27(a) and Equities Rule
                                9.27(a).
BX...........................  Chapter XI, Section 3 and Chapter II,
                                Section 2(h).
NASDAQ.......................  Chapter XI, Section 3 and Chapter II,
                                Section 2(h).
------------------------------------------------------------------------
\1\ FINRA shall not have any Regulatory Responsibility regarding foreign
  currency option requirements specified in any of the PHLX rules in
  this Exhibit A.
\2\ FINRA shall not have any Regulatory Responsibility regarding receipt
  of written reports by April 1 of each year pursuant to CBOE Rule
  9.8(g).
\3\ FINRA shall not have any Regulatory Responsibility to enforce this
  rule as to time and price discretion in institutional accounts.
\4\ FINRA shall only have Regulatory Responsibility for the first
  paragraph and shall not have any Regulatory Responsibility regarding
  the requirements for debt options.
\5\ FINRA shall not have any Regulatory Responsibility regarding ISE's,
  ISE Gemini's and ISE Mercury's requirements to the extent its rule
  does not contain an exception to permit sharing in the profits and
  losses of an account.
\6\ FINRA shall not have any Regulatory Responsibility regarding
  NASDAQ's, BX's, [BATS]BZX's, and EDGX's requirements to the extent
  such rules do not contain an exception addressing immediate family.

IV. 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 S7-966 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 S7-966. 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 and MIAX PEARL. 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 S7-966 and should be submitted
on or before March 1, 2017.

V. Discussion

    The Commission continues to believe that the proposed plan is an
achievement in cooperation among the SRO participants. The Plan, as
amended, will reduce unnecessary regulatory duplication by allocating
to the designated SRO the responsibility for certain options-related
sales practice matters that would otherwise be performed by multiple
SROs. The plan promotes efficiency by reducing costs to firms that are
members of more than one of the SRO participants. In addition, because
the SRO participants coordinate their regulatory functions in
accordance with the plan, the plan promotes, and will continue to
promote, investor protection.
    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 amendment is
effective. The primary purpose of the amendment is to add MIAX PEARL as
a participant to the Plan. By declaring it effective today, the amended
Plan can become effective and be implemented without undue delay.\24\
The Commission notes that the prior version of this plan immediately
prior to this proposed amendment was published for comment and the
Commission did not receive any comments thereon.\25\ Furthermore, the
Commission does not believe that the amendment to the plan raises any
new regulatory issues that the Commission has not previously
considered.
---------------------------------------------------------------------------

    \24\ On December 13, 2016, the Commission approved MIAX PEARL's
application for registration as a national securities exchange. See
Securities Exchange Act Release No. 79543, 81 FR 92901 (December 20,
2016).
    \25\ See Securities Exchange Act Release No. 77148 (February 16,
2016), 81 FR 8775 (February 22, 2016).
---------------------------------------------------------------------------

VI. Conclusion

    This order gives effect to the amended Plan submitted to the
Commission that is contained in File No. S7-966.
    It is therefore ordered, pursuant to Section 17(d) of the Act, that
the Plan, as amended, filed with the Commission pursuant to Rule 17d-2
on January 13, 2017, is hereby approved and declared effective.
    It is further ordered that those SRO participants that are not the
DOEA as to a particular common member are relieved of those regulatory
responsibilities allocated to the common member's DOEA under the
amended Plan to the extent of such allocation.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(34).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-02547 Filed 2-7-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 247 (Tuesday, December 24, 2013)]
[Notices]
[Pages 77736-77739]
[FR Doc No: 2013-30592]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71129; File No. SR-BATS-2013-062]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Modify
BATS Options Market Maker Continuous Quoting Obligation Rules

December 18, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 5, 2013, BATS Exchange, Inc. (the ``Exchange'' or ``BATS'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange has
designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. 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\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

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

    The Exchange filed a proposal to amend Rule 22.6(d) with respect to
the continuous quoting requirement applicable to Market Makers (as
defined below) registered with the Exchange.
    The text of the proposed rule change is available at the Exchange's
Web site at http://www.batstrading.com, at the principal office of the
Exchange, at the Commission's Public Reference Room, and on the
Commission's Web site at http://www.sec.gov.

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 Exchange 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 these 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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to amend Rule 22.6(d), which is
applicable to the Exchange's options platform (``BATS Options''). A
``Market Maker'' on BATS Options is an Options Member registered as a
Market Maker. Options Market Makers have obligations beyond those of
other Options Members.\5\ One of these obligations is the requirement
to maintain a two-sided market in those options series in which a
Market Maker is registered to trade in a manner that enhances the
depth, liquidity, and competitiveness of the market.\6\ Pursuant to
this obligation and existing Rule 22.6(d), Market Makers must enter
``continuous bids and offers for the options series to which it is
registered.''
---------------------------------------------------------------------------

    \5\ See BATS Rule 22.2, 22.5.
    \6\ BATS Rule 22.5(a).
---------------------------------------------------------------------------

    The Exchange proposes to add Rule 22.6(d)(3), which would specify
numerically the meaning of ``continuous'' with respect to Market
Makers' obligation to maintain continuous, two-sided quotes. For the
purposes of Rule 22.6, the Exchange will consider the continuous
quoting requirement fulfilled if a Market Maker provides two-sided
quotes for 90% of the time the Market Maker is required to provide
quotes in an appointed options series on a given trading day, or such
higher percentage as the Exchange may announce in advance.
    Proposed Rule 22.6(d)(3) would also provide that the continuous
quoting requirement will be applied to all options classes
collectively, rather than on a [sic] issue-by-issue basis and that
compliance will be determined on a monthly basis. The Exchange believes
that applying the quoting requirements for Market Makers collectively
across all options classes and reviewing such compliance over a monthly
basis is a fair and more efficient way for the Exchange and market
participants to evaluate compliance with the continuous quoting
requirements. Applying the continuous quoting requirement collectively
across all option classes rather than on an issue-by-issue basis, is
beneficial to Market Makers by providing some flexibility to choose
which series in their appointed classes they will continuously quote--
increasing the continuous quoting obligation in the series of one class
to allow for a decrease in the continuous quoting obligation in the
series of another class. This flexibility, however, does not diminish
the Market Maker's obligation to continuously quote a significant part
of the trading day in a significant percentage of series. This
flexibility is especially important for classes that have relatively
few series and may prevent the Market Maker, in particular, from
breaching the continuous quoting requirement when failing to quote 90%
of the trading day (as proposed) in more than one series in an
appointed class. In addition, determining compliance with the
continuous quoting requirement on a monthly basis does not relieve the
Market Maker of the obligation to provide continuous two-sided quotes
on a daily basis, nor will it prohibit the Exchange from taking
disciplinary action against a Market Maker for failing to meet the
continuous quoting obligation each trading day. Compliance on a monthly
basis allows the Exchange to review the Market Maker's daily compliance
in the aggregate and determine the appropriate disciplinary action for
single or multiple failures to comply with the continuous quoting
requirement during the month period. The Exchange believes that the
proposal will not diminish, and in fact may increase, market making
activity on the Exchange, by establishing quoting compliance standards
that are reasonable and are already in place on other options
exchanges.\7\
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    \7\ See NYSE MKT Rule 925.1NY; see also, CBOE Rule 1.1(ccc); ISE
Rule 804(e); ISE Gemini Rule 804(e); MIAX Rule 604(e); NASDAQ OMX
PHLX Rule 1014(b)(ii)(D)(1); NOM Rules, Chapter VII, Sec. 6(d); NYSE
Arca Rule 6.37B(b).
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    As proposed, pursuant to Rule 22.6(d)(4) if there is a technical
failure or limitation of an Exchange system that prevents a Market
Maker from maintaining or communicating to the Exchange timely and
accurate quotes in an options series, the Exchange will not consider
the duration of such failure in determining whether the Market Maker
has satisfied the 90% quoting standard with respect to the affected
options series.
    The Exchange also proposes to add paragraph (d)(6) to Rule 22.6,
which would specify that Market Makers would not be required to make
two-sided markets pursuant to Rule 22.6 in any Quarterly Option Series,
any adjusted option series, and any option series until the time to
expiration for such series is less than nine months. Accordingly, the
continuous quotation obligations set forth in the Rule will not apply
to Market Makers respecting Quarterly Option Series, adjusted option
series, and series with an expiration of nine months or greater. For
purposes of paragraph (d)(6), an adjusted option series would be
defined as an option series wherein, as a result of a corporate action
by the issuer of the underlying security, one option contract in the
series represents the delivery of other than 100 shares of underlying
stock or Exchange-Traded Fund Shares.
    The Exchange will also reserve the right to consider other
exceptions to the continuous quoting obligation based on demonstrated
legal or regulatory requirements or other mitigating circumstances. As
explained below, the proposed changes will provide a specific numerical
threshold that Market Makers will need to meet, which is consistent
with the rules of several other options exchanges.\8\
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    \8\ See id.
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    In addition to the changes described above, the Exchange proposes
to number an existing paragraph currently contained within Rule
22.6(d)(2) as a separate paragraph, paragraph (d)(5).
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\9\ Specifically, the
proposal is consistent with Section 6(b)(5) of the Act,\10\ which
requires exchange rules to promote just and equitable principles of
trade, remove impediments to, and perfect the mechanism of, a free and
open market and a national market system, and, in general, protect
investors and the public interest. The Exchange believes the proposed
rule change fulfills these requirements because it provides a specific
standard to which the Exchange will hold Market Makers regarding their
obligation to maintain a two-sided market in specified options series.
By numerically specifying this obligation, the Exchange will enhance
the quality of its market and avoid unnecessary investor confusion.
Moreover, the Exchange again notes that the proposed rule change is
substantially similar to the rules of other options exchanges.\11\
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ See supra note 7.
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    Furthermore, the Exchange believes this proposed rule change
promotes just and equitable principles of trade because it reduces a
burden and unnecessary restrictiveness on Market Makers. The Exchange
still imposes many obligations on all Market Makers

to maintain a fair and orderly market in their appointed classes, which
the Exchange believes eliminates the risk of a material decrease in
liquidity. Accordingly, the proposal supports the quality of the
Exchange's market by helping to ensure that Market Makers will continue
to be obligated to quote in series when necessary. The benefit provided
to the Market Maker from the proposed definition of continuous quoting
is offset by the required percentage of series in which the Market
Maker must provide continuous quotes. Ultimately, the benefit the
proposed rule change confers upon Market Makers is offset by the
continued responsibilities to provide significant liquidity to the
market to the benefit of market participants.
    The proposed rule change also protects investors and the public
interest by creating more uniformity and consistency among the
Exchange's rules related to Market-Maker quoting obligations. The
proposed rule change allows the Exchange to require Market Makers to
provide continuous quotes in a percentage of series in their appointed
classes for a portion of the trading day that is the same as that of
market-makers at other exchanges, which the Exchange believes will
ultimately make the Exchange more competitive and help remove
impediments to and promote a free and open market. For the foregoing
reasons, the Exchange believes that the balance between the benefits
provided to Market-Makers and the obligations imposed upon Market-
Makers by the proposed rule change is appropriate.
    Further, providing Market Makers with flexibility by providing the
continuous quoting obligation collectively across all option classes
will not diminish the Market Maker's obligation to continuously quote a
significant part of the trading day in a significant percentage of
series. Additionally, with respect to compliance standards, the
Exchange believes that adopting the proposed standards will enhance
compliance efforts by Market Makers and the Exchange, and are
consistent with the requirement [sic] currently in place on other
exchanges. The proposal ensures that compliance standards for
continuous quoting will be the same on the Exchange as on other options
exchanges. The Exchange believes that the proposal will not diminish
and in fact may increase, market making activity on the Exchange, by
establishing a quoting compliance standard that is reasonable and is
already in place on other options exchanges.
    The Exchange notes that its Market Makers are subject to many
obligations, including the obligation to maintain a fair and orderly
market in their appointed classes, which the Exchange believes
eliminates the risk of a material decrease in liquidity. The Exchange
continues to believe the balance of obligations and benefits is
appropriate given the following: (i) although the percentage of the
trading day Market Makers will be required to quote will be numerically
set at 90%, Market Makers will continue to have heightened quoting
requirements based on the significant percentage of series Market
Makers are required to quote; (ii) the proposed clarification in the
rule text of which series the continuous quoting obligations apply to
does not diminish the continuous quoting obligation and is consistent
with requirements in place at other option exchanges; (iii) the
flexibility being provided by the proposal to apply the continuous
quoting obligation collectively across all option classes also does not
diminish the Market Maker's obligations; and (iv) the proposed changes
are all consistent with requirements in place at other options
exchanges. The Exchange believes that its proposal is consistent with
the Act in that providing clarification and flexibility does not
detract from the overall market making obligations of Market Makers.
The requirement that a market maker hold itself out as willing to buy
and sell options for its own account on a regular or continuous basis
is better supported by these proposed revisions and clarifications.
Accordingly, the benefits the proposed rule change confers upon Market
Makers are offset by the continued responsibilities to provide
significant liquidity to the market to the benefit of all market
participants.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposal is consistent with Section
6(b)(8) of the Act \12\ in that it does not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The Exchange believes the proposed rule change
will provide specificity in Exchange rules as they relate to Market
Maker's [sic] obligation to maintain continuous, two-sided quotes in
specific options series. Moreover, as previously noted, the proposed
rule change is substantially similar to the rules of other options
exchanges.\13\ As such, the Exchange believes the proposed rule changes
will enhance, rather than diminish, competition among the options
exchanges.
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    \12\ 15 U.S.C. 78f(b)(8).
    \13\ See supra note 7.
---------------------------------------------------------------------------

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

    The Exchange has neither solicited nor received written comments on
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) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
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 \16\ and Rule 19b-
4(f)(6) thereunder.\17\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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    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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal 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 No. SR-
BATS-2013-062 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-BATS-2013-062. 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 changes 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 such filing will also be available
for inspection and copying at the principal office of the Exchange. 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 No. SR-BATS-2013-062 and should be
submitted on or before January 14, 2014.
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    \18\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-30592 Filed 12-23-13; 8:45 am]
BILLING CODE 8011-01-P