[Federal Register Volume 84, Number 153 (Thursday, August 8, 2019)]
[Notices]
[Pages 39037-39041]
[FR Doc No: 2019-16940]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86556; File No. SR-NSCC-2019-002]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of a Proposed Rule Change To Amend
Procedure VII With Respect to the Receipt of CNS Securities and Make
Other Changes

August 2, 2019.
    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 July 22, 2019, National Securities Clearing Corporation (``NSCC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared by the clearing agency. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change would amend Procedure VII of NSCC's Rules
& Procedures (``Rules'') \3\ with respect to the receipt of securities
from NSCC's Continuous Net Settlement (``CNS'') System \4\ and make
technical changes, as described in greater detail below.
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    \3\ Capitalized terms not defined herein are defined in the
Rules, available at http://www.dtcc.com/~/media/Files/Downloads/
legal/rules/nscc_rules.pdf.
    \4\ The CNS System and its operation are described in Rule 11
(CNS System) and Procedure VII (CNS Accounting Operation) of the
Rules. Id.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency 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 clearing agency has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to amend Procedure VII
(CNS Accounting Operation) with respect to the receipt of securities
from the CNS System in order to reflect a change in the allocation
algorithm used during the night cycle.\5\ The proposed rule change
would also make technical changes.
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    \5\ Night cycle is sometimes also referred to as ``evening
cycle'' in the Rules. To ensure consistent terminology usage, NSCC
is proposing technical changes to replace references to ``evening
cycle'' with ``night cycle'' as described in greater detail below.
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(i) Background
    NSCC's CNS System is an automated accounting and securities
settlement system that centralizes and nets the settlement of compared
and recorded securities transactions and maintains an orderly flow of
security and money balances. The CNS System provides clearance for
equities, corporate bonds,

unit investment trusts, and municipal bonds that are eligible for book-
entry transfer at The Depository Trust Company (``DTC''), an NSCC
affiliate.
    Under the CNS System, all eligible compared and recorded
transactions for a particular settlement date are netted by CUSIP \6\
number into one position per Member. The position can be net long
(buy), net short (sell) or flat. As a continuous net system, those
positions are further netted with positions of the same CUSIP number
that remain open after their original scheduled settlement date
(usually two business days after the trade date or T+2), so that
transactions scheduled to settle on any day are netted with fail
positions (i.e., positions that have failed in delivery or receipt on
the settlement date), which results in a single deliver or receive
obligation for each Member for each CUSIP number in which the Member
has activity.
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    \6\ CUSIP is a registered trademark of the American Bankers
Association. The term ``CUSIP number'' refers to the Committee on
Uniform Securities Identification Procedures identifying number.
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    CNS relies on an interface with DTC for the book-entry movement of
securities. Procedure VII (CNS Accounting Operation) describes the
receipt and delivery of CNS Securities. CNS short positions are
compared against Members' DTC accounts to determine availability of
securities for delivery. If securities are available, they are
transferred from the Member's account at DTC to NSCC's account at DTC
to cover the Member's short obligations to CNS. In contrast, the
allocation of CNS long positions to receiving Members is processed in
an order determined by an algorithm built into the system. CNS long
positions are allocated to Members as the securities are received by
NSCC, i.e., CNS long positions are transferred from the NSCC account at
DTC to the accounts of NSCC Members at DTC, in accordance with the
algorithm.
    For CNS Securities, NSCC uses a modified delivery versus payment
mechanism in that when a Member delivers securities to CNS, the Member
receives a credit, and when NSCC delivers securities to the long
receiving Member (a long allocation), the securities deliveries/
movements are not final until the ``effective time'' occurs pursuant to
Rule 12 (Settlement).\7\ Specifically, under the Rules, a CNS delivery
transaction is complete and final as to the delivering Member once the
securities are debited from the delivering Member's account at DTC and
credited to NSCC's CNS account at DTC; however, a CNS delivery
transaction does not become final as to the receiving ``long'' Member
until the ``effective time.''
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    \7\ Pursuant to Rule 12 (Settlement), the ``effective time''
generally occurs when it is clear that NSCC has either been paid, or
is in a credit position with respect to a Member or its Settling
Bank, and NSCC has no obligation due with respect to a Member
pursuant to the Clearing Agency Cross-Guaranty Agreement. Until the
effective time has occurred in accordance with the Rules, NSCC
retains ownership rights in the long allocations. Supra note 3.
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    The current settlement processing cycle spans two business days,
with a night cycle that begins at approximately 8:30 p.m. Eastern Time
(``ET'') on the day prior to settlement date and runs until
approximately 10 p.m. ET, and a day cycle that begins at approximately
6:30 a.m. ET on settlement date and runs until approximately 3:10 p.m.
ET. The night cycle and the day cycle settlement processes are
essentially the same, except that the night cycle settlement process
runs in batches and the day cycle settlement process runs continuously.
Transactions that do not get processed for settlement during the night
cycle are carried into the following day cycle for settlement
processing.
Current Allocation Algorithm
    NSCC employs an algorithm to determine the order in which Members
with long allocations receive positions from CNS; however, Members can
submit priority requests that override NSCC's algorithm when they have
special needs to receive securities owed to them (e.g., the security is
undergoing a corporate action or the Member has an urgent customer
delivery). The priority requests can be submitted for the night cycle,
the day cycle, or both.
    Pursuant to Procedure VII, subsection E (Influencing Receipts from
CNS), Members can request that they receive priority for some or all
issues on a standing or override basis. NSCC's Rules also permit a
Member to buy-in long positions that have not been delivered to it by
the close of business on the scheduled settlement date. Submission of
buy-in notices and other specified activity will also affect the
priority of a Member's long position.
    The current priority groups are as follows--
    First, long positions in a CNS Reorganization Sub-Account
established pursuant to paragraph H.4 of Procedure VII of the Rules;
\8\
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    \8\ Supra note 3.
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    Second, long positions against which Buy-In Intent \9\ notices are
due to expire that day but which were not filled the previous day;
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    \9\ Section 7 of Rule 11 (CNS System) and subsection J of
Procedure VII (CNS Accounting Operation) of the Rules provide that
in the event a Member has a Long Position in a CNS Security, the
Member may demand immediate delivery thereof by submitting to NSCC a
Buy-In Intent notice in such form and within such times as
determined by NSCC. Supra note 3.
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    Third, long positions against which Buy-In Intent \10\ notices are
due to expire the following day;
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    \10\ Id.
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    Fourth, (i) long positions in a receiving ID Net Subscriber's
agency account established at a Qualified Securities Depository,\11\
and (ii) long positions against the component securities of index
receipts;
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    \11\ ID Net Service and its operation are described in Rule 65
(ID Net Service) and Procedure XVI (ID Net Service) of the Rules.
Supra note 3.
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    Fifth, in descending sequence, priority levels as specified by
Standing Priority Requests and as modified by Priority Overrides.
    Currently, when more than one long position in a given CNS Security
exists within the same priority group, the positions are allocated
based on their age, i.e., the ``oldest'' position is allocated
first.\12\ In addition, when more than one long position in a given CNS
Security exists within the same priority group all of which have been
long the same number of consecutive days (i.e., within the same age
group), the allocation rank is determined by a computer generated
random number.
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    \12\ Age is defined in Procedure VII, subsection E, as the
number of consecutive days during which the position has been long,
irrespective of quantity. Supra note 3.
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    The allocation algorithm currently used for the night and day
cycles is the same but is computed separately.
(ii) Proposed Changes to Allocation Algorithm
    NSCC, together with DTC,\13\ is looking to improve processing
efficiency and maximize the number of securities transactions processed
for settlement during the night cycle.
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    \13\ On July 22, 2019, DTC submitted a proposed rule change to
implement a new algorithm to optimize its settlement processing of
transactions during the night cycle (``DTC settlement optimization
algorithm''). The proposal is designed to maximize the number of
transactions processed for settlement during the night cycle. See
SR-DTC-2019-005, which was filed with the Commission. A copy of the
proposed rule change is available at http://www.dtcc.com/legal/sec-rule-filings.aspx.
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    Currently, approximately 50 percent (50%) of the CNS transactions
are processed for settlement during the night cycle. In order to
improve processing efficiency and maximize the number of CNS
transactions that would get processed for settlement during the night
cycle, NSCC is proposing a modification to the allocation algorithm
used during the night cycle. NSCC anticipates that the proposal would
increase the percentage of CNS

transactions processed for settlement during the night cycle to
approximately 65 percent (65%).
    As described above, the current allocation sequence for day cycle
and night cycle is as follows: priority groups, age of positions, and
random number within an age group. Under the proposal, NSCC is
proposing changes to the allocation algorithm so that age of positions
and random number within an age group would no longer be considered as
factors when allocating CNS long positions within the same priority
group during the night cycle.\14\ Instead, allocation of CNS long
positions within the same priority group during the night cycle would
be determined by the DTC settlement optimization algorithm.\15\
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    \14\ Based on data from January through April 2019, aged
positions (i.e., positions that have failed in delivery or receipt
on their respective scheduled settlement dates for one or more days)
comprised approximately 0.21 percent of the value of all
transactions received before netting.
    \15\ Supra note 13.
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    NSCC believes eliminating the age of positions and random number
within an age group from being considered as factors when allocating
CNS long positions within the same priority group during the night
cycle would help maximize the number of transactions processed for
settlement during the night cycle. Specifically, removing the
requirement to process transactions for settlement during the night
cycle in an order based on the age of positions and random number
within an age group would help the DTC settlement optimization
algorithm\16\ perform more effectively in identifying the optimal order
by which transactions are processed for settlement, which in turn would
help maximize the number of transactions processed for settlement
during the night cycle.
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    \16\ Id.
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    NSCC is not proposing changes to the allocation algorithm used
during the day cycle.
    (iii) Proposed Rule Changes
    NSCC is proposing to add a clause to subsection C.4 of Procedure
VII (CNS Accounting Operation) to make it clear that there would be
differences in the allocation algorithm used for receipts from CNS
between the day cycle and the night cycle processes. NSCC is also
proposing to add a parenthetical regarding subsection E of Procedure
VII for ease of reference.
    In order to reflect the proposed elimination of random number
within an age group as a factor when allocating CNS long positions
within the same priority group during the night cycle, NSCC is
proposing to modify the first paragraph of subsection E of Procedure
VII by deleting the references to an algorithm which changes daily.
    NSCC is also proposing to revise subsection E.4 of Procedure VII to
reflect the proposed changes to the allocation algorithm used during
the night cycle by adding (i) ``and, for the day cycle only,'' to the
first paragraph in subsection E.4 and (ii) ``For the day cycle only,''
to the third and fourth paragraphs of subsection E.4. These changes are
being proposed in order to make it clear that age of positions and
random number within an age group would only be considered as factors
when allocating CNS long positions during the day cycle.
    In addition, NSCC is proposing to modify the last paragraph of
subsection E.4 of Procedure VII to make it clear that the allocation
algorithm used for the night and day cycles is computed separately to
allow for the use of different allocation factors in those respective
cycles.
    NSCC is proposing technical changes by replacing references to
``evening cycle'' with ``night cycle'' in subsections A, C.3, E.1, E.2,
E.4, E.5, and H.5 of Procedure VII. Similarly, NSCC is proposing to
replace references to (i) ``evening allocation'' with ``night
allocation'' in subsections C.3, C.4, and J.1 of Procedure VII, (ii)
``evening and day delivery cycles'' with ``night and day delivery
cycles'' in subsection E.4 of Procedure VII and (iii) ``evening
allocation cycle'' with ``night cycle'' in Section I of Addendum G.
These changes are being proposed to ensure consistency in terminology
usage in the Rules. NSCC is also proposing technical changes to correct
cross references in subsections E.3 and E.4(a) of Procedure VII.
(iv) Member Outreach
    Beginning in March 2018, NSCC has conducted ongoing outreach with
Members in order to provide them with notice of the proposed changes.
As of the date of this filing, no written comments relating to the
proposed changes have been received in response to this outreach. The
Commission will be notified of any written comments received.
(v) Implementation Timeframe
    Pending Commission approval, NSCC expects to implement this
proposal by September 26, 2019 and would announce the effective date of
the proposed change by an Important Notice posted to its website. As
proposed, a legend would be added to Procedure VII and Addendum G
stating there are changes that have been approved by the Commission but
have not yet been implemented. Each proposed legend also would include
a date by which such changes would be implemented and the file number
of this proposal, and state that, once this proposal is implemented,
the legend would automatically be removed from Procedure VII and
Addendum G, as applicable.
2. Statutory Basis
    NSCC believes this proposal is consistent with the requirements of
the Act, and the rules and regulations thereunder applicable to a
registered clearing agency. Specifically, NSCC believes this proposal
is consistent with Section 17A(b)(3)(F) \17\ of the Act for the reasons
described below.
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    \17\ 15 U.S.C. 78q-1(b)(3)(F).
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    Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to promote the prompt and accurate clearance and settlement
of securities transactions.\18\ NSCC believes that the proposed changes
to the allocation algorithm used during the night cycle would promote
prompt and accurate clearance and settlement of securities
transactions. This is because the proposed changes would remove the
requirement to process transactions for settlement during the night
cycle in an order based on the age of positions and random number
within an age group. Eliminating the requirement to process
transactions in an order based on the age of positions and random
number within an age group would help enhance the effectiveness of the
DTC settlement optimization algorithm in identifying the optimal order
to process transactions for settlement. Being able to effectively
identify the optimal order to process transactions for settlement would
help maximize the number of transactions processed for settlement
during the night cycle. Therefore, NSCC believes that the proposed
changes to the allocation algorithm used during the night cycle would
promote the prompt and accurate clearance and settlement of securities
transactions, consistent with Section 17A(b)(3)(F) of the Act.
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    \18\ Id.
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    NSCC also believes that the proposal to make technical changes
would promote prompt and accurate clearance and settlement of
securities transactions. This is because the proposed technical changes
would help ensure consistency in terminology usage and correct cross
references in the Rules, both of which would ensure the Rules are clear
and accurate. Having clear and accurate Rules would help Members to
better understand their

rights and obligations regarding NSCC's clearance and settlement
services. NSCC believes that when Members better understand their
rights and obligations regarding NSCC's clearance and settlement
services, they can act in accordance with the Rules. NSCC believes that
better enabling Members to comply with the Rules would promote the
prompt and accurate clearance and settlement of securities transactions
by NSCC. As such, NSCC believes the proposal to make technical changes
is consistent with Section 17A(b)(3)(F) of the Act.\19\
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    \19\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    NSCC believes the proposed changes to the allocation algorithm used
during the night cycle could burden competition. This is because by
eliminating the age of positions and random number within an age group
from being considered as factors when allocating CNS long positions
during the night cycle, Members with the oldest positions would no
longer receive priority during the night cycle. While Members with aged
positions would no longer be prioritized over other Members within the
same priority group, NSCC does not believe such change in priority
would in and of itself mean that the burden on competition is
significant. This is because, as described above, aged positions only
comprised approximately 0.21 percent of the value of all transactions
received before netting. Accordingly, NSCC does not believe the burden
on competition would be significant.
    Regardless of whether the burden on competition is deemed
significant, NSCC believes any burden on competition that is created by
these proposed changes would be necessary and appropriate in
furtherance of the purposes of the Act, as permitted by Section
17A(b)(3)(I) of the Act.\20\
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    \20\ 15 U.S.C. 78q-1(b)(3)(I).
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    The proposed changes to the allocation algorithm used during the
night cycle would be necessary in furtherance of the purposes of the
Act because the Rules must be designed to promote the prompt and
accurate clearance and settlement of securities transactions.\21\ As
described above, NSCC believes that the proposed changes would promote
the prompt and accurate clearance and settlement of securities
transactions by maximizing the number of transactions processed for
settlement during the night cycle. As such, NSCC believes these
proposed changes would be necessary in furtherance of the purposes of
the Act, as permitted by Section 17A(b)(3)(I) of the Act.\22\
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    \21\ 15 U.S.C. 78q-1(b)(3)(F).
    \22\ 15 U.S.C. 78q-1(b)(3)(I).
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    NSCC believes any burden on competition that is created by the
proposed changes to the allocation algorithm used during the night
cycle would also be appropriate in furtherance of the purposes of the
Act. The proposed changes would eliminate the age of positions and
random number within an age group from being considered as factors when
allocating CNS long positions within the same priority group during the
night cycle, which would in turn enhance the effectiveness of the DTC
settlement optimization algorithm in identifying the optimal order by
which to process transactions for settlement during the night cycle.
Being able to effectively identify the optimal order by which to
process transactions for settlement during the night cycle would in
turn help maximize the number of transactions processed for settlement
during the night cycle. As such, NSCC believes these proposed changes
would be appropriate in furtherance of the purposes of the Act, as
permitted by Section 17A(b)(3)(I) of the Act.\23\
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    \23\ Id.
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    NSCC does not believe the proposal to make technical changes would
impact competition. These changes are being proposed to ensure
consistency in terminology usage in the Rules and to correct cross
references. They would not change NSCC's current practices or affect
Members' rights and obligations. As such, NSCC believes the proposal to
make technical changes would not have any impact on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others

    Written comments relating to this proposed rule change have not
been solicited or received. NSCC will notify the Commission of any
written comments received by NSCC.

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

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NSCC-2019-002 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSCC-2019-002. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of NSCC and on DTCC's website
(http://dtcc.com/legal/sec-rule-filings.aspx). All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NSCC-

2019-002 and should be submitted on or before August 29, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-16940 Filed 8-7-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 141 (Monday, July 23, 2018)]
[Notices]
[Pages 34896-34899]
[FR Doc No: 2018-15645]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83653; File No. SR-NASDAQ-2018-052]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend The Nasdaq Options Market LLC (``NOM'') Rules Relating to Market
Maker Quotations

July 17, 2018.
    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 July 2, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') 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 Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend The Nasdaq Options Market LLC
(``NOM'') Rules at Chapter VII, Section 6 related to Market Maker
quotations.
    The text of the proposed rule change is available on the Exchange's
website at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the 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 aspects of such
statements.

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

1. Purpose
    Nasdaq proposes to amend the current rule text of Chapter VII,
Section 6(d), related to quoting obligations, to restructure the
current rule to conform to rule text utilized on Nasdaq Phlx LLC.\3\
The Exchange does not propose to amend the current quoting obligations,
rather the Exchange proposes to more clearly state the current quoting
obligations utilizing the same format as Phlx Rule 1081(c).
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    \3\ Phlx Rule 1081(c)(ii).
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Chapter VII, Section 6(d)
    The Exchange proposes to amend Chapter VII, Section 6(d) to remove
the word ``continuous'' from this first sentence in the rule. The
Exchange is removing the word ``continuous'' because the Exchange notes
that Market Makers quote a percentage of the day and therefore the word
continuous may not accurately reflect the manner in which Market Makers
quote on NOM. The Exchange proposes to retitle Section 6(d) as ``Intra-
day Quotes.''
    The Exchange also proposes to remove the word ``continuous'' from
Chapter V, Section 3(d)(iv) [sic] and replace that word with ``intra-
day.'' The Exchange also proposes to amend Chapter X, Section 7(c) to
replace the words ``continuous bids and offers'' with ``intra-day
quoting.''
Chapter VII, Section 6(d)(i)
    The Exchange proposes to amend Chapter VII, Section 6(d)(i) to
delete the first sentence of this paragraph, ``On a daily basis, a
Market Maker must during regular market hours make markets consistent
with the applicable quoting requirements specified in these rules, on a
continuous basis in options in which the Market Maker is registered.''
The Exchange believes that a Market Maker's obligation to enter bids
and offers for the options to which it is registered is currently noted
in proposed Chapter VII, Section 6(d). The Exchange proposes to
specifically detail a Market Maker's quoting obligations in the
proposed rule text and therefore believes that this sentence is not
necessary because the following sentence replaces this sentence with
the exception of the intra-day aspect as described below.
    The Exchange proposes to add new rule text to Chapter VII, Section
6(d)(i). The first new sentence will provide ``A Market Maker must
enter bids and offers

for the options to which it is registered, except in an assigned
options series listed intra-day \4\ on the Exchange.'' The Exchange
believes this sentence is more specific than Section 6(d) because it
excepts the intra-day quotes. Today, a Market Maker is not held to
quote an intra-day add of a series because the options series was not
available for trading the entire day. The Exchange is adding this
exception to the rule text to make clear that Market Makers would not
be responsible for quoting an intra-day addition. The Exchange believes
that not counting intra-day adds of a series that were not available
for the entire day of trading is consistent with the Act because the
Market Maker would not have the opportunity to trade that particular
options series for the entire trading day. The Exchange also proposes
to note, ``On a daily basis, a Market Maker must make markets
consistent with the applicable quoting requirements specified below.''
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    \4\ An intra-day add of a series shall be defined, for purposes
of this Phlx Rule 1081 [sic], as an option series that is added
manually on the same day the series begins trading.
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Chapter VII, Section 6(d)(i)(1)
    The Exchange proposes to remove the following sentence from Chapter
VII, Section (d)(i)(1), ``To satisfy this requirement, a Market Maker
must quote 60% of the trading day (as a percentage of the total number
of minutes in such trading day) or such higher percentage as Nasdaq may
announce in advance.'' The Exchange proposes to replace this language
with language that more technically defines the quoting obligation. The
Exchange proposes the following rule text:

    Market Makers, associated with the same Options Participant, are
collectively required to provide two-sided quotations in 60% of the
cumulative number of seconds, or such higher percentage as NOM may
announce in advance, for which that Options Participant's assigned
options series are open for trading. Notwithstanding the foregoing,
a Market Maker shall not be required to make two-sided markets
pursuant to this Chapter VII, Section 6(d)(i)(1) in any Quarterly
Option Series, any Adjusted Option Series, and any option series
with an expiration of nine months or greater.

    The 60% requirement and the manner in which it is calculated is not
being amended. The Exchange does not propose to amend the current
quoting obligations, rather the Exchange proposes to more clearly state
the current quoting obligations utilizing the same format as Phlx Rule
1081(c)(ii)(A). The Exchange notes the quoting obligations expressed as
the cumulative number of seconds rather than 60% of the trading day.
While the current rule indicates that the Exchange currently reviews
quoting as a percentage of the total number of minutes, the two
standards are otherwise equivalent. Adding ``associated with the same
Options Participant'' to the first sentence also makes clear that the
obligation is at the firm level and that all associated Market Makers
will be counted in arriving at the calculation for quoting obligations.
The Exchange also states, ``Notwithstanding the foregoing, a Market
Maker shall not be required to make two-sided markets pursuant to this
Chapter VII, Section 6(d)(i)(1) in any Quarterly Option Series, any
Adjusted Option Series, and any option series with an expiration of
nine months or greater.'' This exception exists today for NOM and is
simply being carried over into the new text from current Section
6(d)(i)(2). The definition of an adjusted option series is currently
defined at Section 6(d)(i)(2) as an option series wherein one option
contract in the series represents the delivery of other than 100 shares
of underlying stock or Exchange-Traded Fund Shares. This definition is
being relocated to 6(d)(i)(1)(a), similar to Phlx's structure and is
defined as ``Adjusted Options Series'' throughout this rule.
Chapter VII, Section 6(d)(i)(2)
    The Exchange proposes to add new rule text at Chapter VII, Section
6(d)(i)(2) which provides the method by which the Exchange will
calculate the NOM Market Maker quoting obligations. The Exchange
proposes to state, that the Exchange will (i) take the total number of
seconds the Options Participant disseminates quotes in each assigned
options series, excluding Quarterly Option Series, any Adjusted Option
Series, and any option series with an expiration of nine months or
greater for Market Makers; and (ii) divide that time by the eligible
total number of seconds each assigned option series is open for trading
that day. Similar to Phlx Rule 1081(c)(ii)(D), the Exchange believes
that the addition of this language will bring greater transparency to
the manner in which the Exchange calculated the quoting obligation. The
Exchange is not amending the manner in which the quoting obligation is
calculated, rather the Exchange is simply adding to the current rule
the exact manner in which the Exchange determines the quoting
percentage. The Exchange proposes to add, ``Quoting is not required in
every assigned options series.'' This sentence is not currently
contained in the rule. The Exchange is not proposing to amend its
current practice, rather the Exchange is clearly stating that quoting
is not required in every assigned options series to make clear the
current obligation. Also, the Exchange proposes to state, ``Compliance
with this requirement is determined by reviewing the aggregate of
quoting in assigned options series for the Options Participant.'' This
language is similar to the language currently being removed from
Chapter VII, Section 6(d)(i)(1), ``This obligation will apply to all of
a Market Maker's registered options collectively to all appointed
issues, rather than on an option-by-option basis.'' The proposed new
language simply conforms the text to Phlx's Rule 1081(c)(ii)(D).
Chapter VII, Section 6(d)(i)(3)
    The Exchange proposes to also delete the following language from
Chapter VII, Section 6(d)(i)(3), ``This obligation will apply to all of
a Market Maker's registered options collectively to all appointed
issues, rather than on an option-by-option basis. Compliance with this
obligation will be determined on a monthly basis. However, determining
compliance with the continuous quoting requirement on a monthly basis
does not relieve a 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.'' The Exchange
proposes to replace this language with the following language proposed
in Section 6(d)(i)(3), ``For purposes of the Exchange's surveillance of
an Options Participant compliance with this rule, the Exchange may
determine compliance on a monthly basis. The Exchange's monthly
compliance evaluation of the quoting requirement does not relieve an
Options Participant of the obligation to provide two-sided quotes on a
daily basis, nor will it prohibit the Exchange from taking disciplinary
action against an Options Participant for failing to meet the quoting
obligation each trading day.'' The Exchange's amendment is not
substantive, rather the amendment brings greater clarity to the current
rule text and aligns the rule with that of Phlx Rule 1081(c)(iii).
    The Exchange proposes to remove the entire paragraph at current
Section 6(d)(i)(2). As explained above this language is being relocated
within the proposed rule text. The Exchange notes that the sentence
``Accordingly, the continuous quotation obligations set forth in this
rule shall not apply to Market Makers respecting Quarterly Option
Series, adjusted option series, and series with an expiration of nine

months or greater'' is being deleted and not relocated because this
sentence is redundant. Also, the Exchange proposes to amend current
Section 6(d)(i)(3) by renumbering it (4) and also capitalizing
``System'' which is a defined term and renumbering a cross-reference.
    The Exchange believes this proposed rule will allow Market Makers
to quickly compare obligations across Nasdaq affiliated markets.\5\
---------------------------------------------------------------------------

    \5\ The Exchange intends to file a similar proposal for Nasdaq
BX, Inc., Nasdaq ISE, LLC, Nasdaq GEMX, LLC and Nasdaq MRX, LLC.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to promote
just and equitable principles of trade, 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.
The Exchange believes that its proposed rule change provides further
detail as to obligations of Market Makers on NOM. The Exchange is not
amending its current quoting obligations, rather the Exchange is
proposing to amend its current rule text to bring greater transparency
to the current quoting obligations by adding clear language which
explains the manner in which NOM will calculate quoting obligations.
The Exchange believes the proposed rule text is consistent with the Act
because the proposed rule text protect investors and the public
interest by providing clear language that will be utilized on all
Nasdaq affiliate markets for easy comparison.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\9\ in particular, in that it is designed to promote
just and equitable principles of trade, 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.
The proposal does not impose a burden on competition because the
Exchange will continue to uniformly calculate and apply the quoting
obligations for all NOM Market Makers. The Exchange's proposal does not
modify the current quoting obligations on NOM.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    No written comments were either solicited or received.

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

    Because the foregoing 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 for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \10\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. In its filing with the
Commission, the Exchange has asked the Commission to waive the 30-day
operative delay so that the proposal to amend its Market Maker quoting
obligations to add more detail to the current quoting requirements may
become operative immediately upon filing. The Exchange believes that
the proposal will bring greater transparency to the Exchange's rules.
The Commission notes that the changes are substantially similar to Phlx
Rule 1081(c). As such, the Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. Therefore, the Commission designates the proposed rule
change operative upon filing.\14\
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ For purposes only of waiving the operative delay, the
Commission has 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 the 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) of the Act \15\ to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \15\ 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 protected]. Please include
File Number SR-NASDAQ-2018-052 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2018-052. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are

cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NASDAQ-2018-052 and should be submitted
on or before August 13, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-15645 Filed 7-20-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 94 (Tuesday, May 15, 2018)]
[Notices]
[Pages 22557-22558]
[FR Doc No: 2018-10231]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-318, OMB Control No. 3235-0361]

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736

Extension:
    Form ADV-E

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (the ``Commission'') is soliciting comments on the
collection of information summarized below. The Commission plans to
submit this existing collection of information to the Office of
Management and Budget for extension and approval.
    Form ADV-E (17 CFR 279.8) is the cover sheet for certificates of
accounting filed pursuant to rule 206(4)-2 under the Investment
Advisers Act of 1940 (17 CFR 275.206(4)-2). The rule further requires
that the public accountant file with the Commission a Form ADV-E and
accompanying statement within four business days of the resignation,
dismissal, removal or other termination of its engagement.
    The Commission has estimated that compliance with the requirement
to complete Form ADV-E imposes a total burden of approximately 0.05
hours (3 minutes) per respondent. Based on current information from
advisers registered with the Commission, the Commission staff estimates
that 1,749 filings will be submitted with respect to surprise
examinations and 38 filings will be submitted with respect to
termination of accountants. Based on these estimates, the total
estimated annual burden would be 89.35 hours ((1,749 filings x .05
hours) + (38 filings x .05 hours)).
    Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of

information; (c) ways to enhance the quality, utility, and clarity of
the information collected; and (d) ways to minimize the burden of the
collection of information on respondents, including through the use of
automated collection techniques or other forms of information
technology. Consideration will be given to comments and suggestions
submitted in writing within 60 days of this publication. An agency may
not conduct or sponsor a collection of information unless it displays a
currently valid OMB control number. No person shall be subject to any
penalty for failing to comply with a collection of information subject
to the PRA that does not display a valid OMB control number.
    Please direct your written comments to Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Remi
Pavlik-Simon, 100 F Street NE, Washington, DC 20549; or send an email
to: [email protected].

    Dated: May 9, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10231 Filed 5-14-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 65 (Tuesday, April 5, 2022)]
[Notices]
[Pages 19692-19693]
[FR Doc No: 2022-07154]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2022-0156]

Information Collection Request to Office of Management and
Budget; OMB Control Number: 1625-0067

AGENCY: Coast Guard, Homeland Security (DHS).

ACTION: Sixty-Day notice requesting comments.

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

SUMMARY: In compliance with the Paperwork Reduction Act of 1995, the
U.S. Coast Guard intends to submit an Information Collection Request
(ICR) to the Office of Management and Budget (OMB), Office of
Information and Regulatory Affairs (OIRA), requesting an extension of
its approval for the following collection of information: 1625-0067,
Claims under the Oil Pollution Act of 1990; without change.
    Our ICR describes the information we seek to collect from the
public. Before submitting this ICR to OIRA, the Coast Guard is inviting
comments as described below.

DATES: Comments must reach the Coast Guard on or before June 6, 2022.

ADDRESSES: You may submit comments identified by Coast Guard docket
number [USCG-2022-0156] to the Coast Guard using the Federal
eRulemaking Portal at https://www.regulations.gov. See the ``Public
participation and request for comments'' portion of the SUPPLEMENTARY
INFORMATION section for further instructions on submitting comments.
    A copy of the ICR is available through the docket on the internet
at https://www.regulations.gov. Additionally, copies are available
from: Commandant (CG-6P), ATTN: Paperwork Reduction Act Manager, U.S.
Coast Guard, 2703 Martin Luther King Jr. Ave SE, STOP 7710, Washington,
DC 20593-7710.

FOR FURTHER INFORMATION CONTACT: A.L. Craig, Office of Privacy
Management, telephone<PHONE_NUMBER>, or fax<PHONE_NUMBER>, for questions
on these documents.

SUPPLEMENTARY INFORMATION:

Public Participation and Request for Comments

    This notice relies on the authority of the Paperwork Reduction Act
of 1995; 44 U.S.C. 3501 et seq., chapter 35, as amended. An ICR is an
application to OIRA seeking the approval, extension, or renewal of a
Coast Guard collection of information (Collection). The ICR contains
information describing the

Collection's purpose, the Collection's likely burden on the affected
public, an explanation of the necessity of the Collection, and other
important information describing the Collection. There is one ICR for
each Collection.
    The Coast Guard invites comments on whether this ICR should be
granted based on the Collection being necessary for the proper
performance of Departmental functions. In particular, the Coast Guard
would appreciate comments addressing: (1) The practical utility of the
Collection; (2) the accuracy of the estimated burden of the Collection;
(3) ways to enhance the quality, utility, and clarity of information
subject to the Collection; and (4) ways to minimize the burden of the
Collection on respondents, including the use of automated collection
techniques or other forms of information technology.
    In response to your comments, we may revise this ICR or decide not
to seek an extension of approval for the Collection. We will consider
all comments and material received during the comment period.
    We encourage you to respond to this request by submitting comments
and related materials. Comments must contain the OMB Control Number of
the ICR and the docket number of this request, [USCG-2022-0156], and
must be received by June 6, 2022.

Submitting Comments

    We encourage you to submit comments through the Federal eRulemaking
Portal at https://www.regulations.gov. If your material cannot be
submitted using https://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions. Documents mentioned in this notice, and all public
comments, are in our online docket at https://www.regulations.gov and
can be viewed by following that website's instructions. Additionally,
if you go to the online docket and sign up for email alerts, you will
be notified when comments are posted.
    We accept anonymous comments. All comments received will be posted
without change to https://www.regulations.gov and will include any
personal information you have provided. For more about privacy and
submissions in response to this document, see DHS's eRulemaking System
of Records notice (85 FR 14226, March 11, 2020).

Information Collection Request

    Title: Claims under the Oil Pollution Act of 1990.
    OMB Control Number: 1625-0067.
    Summary: This information collection provides the means to develop
and submit a claim to the National Pollution Funds Center to seek
compensation for removal costs and damages incurred resulting from an
oil discharge or substantial threat of discharge. This collection also
provides the requirements for a responsible party to advertise where
claims may be sent after an incident occurs.
    Need: This information collection is required by 33 CFR part 136,
for implementing 33 U.S.C. 2713(e) and 33 U.S.C. 2714(b).
    Forms: None.
    Respondents: Claimants.
    Frequency: On occasion.
    Hour Burden Estimate: The estimated burden has decreased from 2,620
hours to 1,557 hours a year, due to a decrease in the estimated annual
number of responses.
    Authority: The Paperwork Reduction Act of 1995; 44 U.S.C. chapter
35, as amended.

    Dated: March 30, 2022.
Kathleen Claffie,
Chief, Office of Privacy Management, U.S. Coast Guard.
[FR Doc. 2022-07154 Filed 4-4-22; 8:45 am]
BILLING CODE 9110-04-P