[Federal Register Volume 75, Number 244 (Tuesday, December 21, 2010)]
[Notices]
[Pages 80090-80091]
[FR Doc No: 2010-31950]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63553; File No. SR-NYSEAmex-2010-119]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC To Establish
Royalty Fees for Non-Customer Executions in Options Based on the KBW
Bank Index

December 15, 2010.
    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 10, 2010, NYSE Amex LLC. (``NYSE Amex'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the 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 establish royalty fees for non-Customer
executions in options based on the KBW Bank Index, symbol BKX. The text
of the proposed rule change is available on the Exchange's Web site at
http://www.nyse.com, at the Exchange's principal office, on the
Commission's Web site at http://www.sec.gov, 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 those statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant parts of such
statements.

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

1. Purpose
    The Exchange proposes to amend its Schedule of Fees and Charges
(``Fee Schedule'') to implement new royalty fees of $0.10 per contract
associated with executions in options based on the KBW Bank Index
(BKX). The fees are intended to be effective on Monday, December 13,
2010 when the Exchange expects to commence trading of these options.
The Exchange has entered into a licensing agreement with Keefe,
Bruyette & Woods, Inc. (``KBW''), the firm that created and maintains
the index, and will pay a fee to KBW on every contract traded on the
Exchange. As with other royalty fees charged by the Exchange, these
fees reflect the pass-through charges associated with the licensing of
this product. The Exchange notes that royalty fees do not apply to
public Customer orders in these products.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\3\ in general, and Section
6(b)(4) of the Act,\4\ in particular, in that it is designed to provide
for the equitable allocation of reasonable dues, fees, and other
charges among its members and other persons using its facilities. The
proposed changes to the Fee Schedule are equitable in that they apply
uniformly

to all similarly situated Exchange participants.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

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

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

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) of the Act \5\ and subparagraph (f)(2) of Rule 19b-
4 thereunder,\6\ because it establishes a due, fee, or other charge
imposed by NYSE Amex.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(2).
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    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.

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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEAmex-2010-119 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 Number SR-NYSEAmex-2010-119. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 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; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
NYSEAmex-2010-119 and should be submitted on or before January 11,
2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-31950 Filed 12-20-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 66 (Wednesday, April 6, 2016)]
[Notices]
[Pages 20024-20030]
[FR Doc No: 2016-07831]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77484; File No. SR-NYSEARCA-2016-52]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Adopting
Requirements for the Collection and Transmission of Data Pursuant to
Appendices B and C of the Regulation NMS Plan To Implement a Tick Size
Pilot Program

March 31, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on March 29, 2016, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to adopt requirements for the collection and
transmission of data pursuant to Appendices B and C of the Regulation
NMS Plan to Implement a Tick Size Pilot Program (``Plan''). The
proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.

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

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

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

1. Purpose
    On August 25, 2014, NYSE Group, Inc., on behalf of the Exchange,
New York Stock Exchange LLC, NYSE MKT LLC, the Bats BZX Exchange, Inc.
f/k/a BATS Exchange, Inc. (``BZX''), BATS BYX Exchange, Inc. f/k/a BATS
Y-Exchange, Inc. (``BYX''), Bats EDGA Exchange, Inc., Bats EDGX
Exchange, Inc., Chicago Stock Exchange, Inc., Financial Industry
Regulatory Authority, Inc. (``FINRA''), NASDAQ OMX BX, Inc., NASDAQ OMX
PHLX LLC, and the Nasdaq Stock Market LLC (collectively
``Participants''), filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 11A of the Act \4\ and Rule 608
of Regulation NMS thereunder,\5\ the Plan to Implement a Tick Size
Pilot Program (``Pilot'').\6\ The Participants filed the Plan to comply
with an order issued by the Commission on June 24,

2014.\7\ The Plan \8\ was published for comment in the Federal Register
on November 7, 2014, and approved by the Commission, as modified, on
May 6, 2015.\9\
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    \4\ 15 U.S.C. 78k-1.
    \5\ 17 CFR 242.608.
    \6\ See Letter from Brendon J. Weiss, Vice President,
Intercontinental Exchange, Inc., to Secretary, Commission, dated
August 25, 2014.
    \7\ See Securities Exchange Act Release No. 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014).
    \8\ Unless otherwise specified, capitalized terms used in this
rule filing are based on the defined terms of the Plan.
    \9\ See Securities Exchange Act Release No. 74892 (May 6, 2015),
80 FR 27513 (May 13, 2015) (``Approval Order'').
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    The Plan is designed to allow the Commission, market participants,
and the public to study and assess the impact of increment conventions
on the liquidity and trading of the common stocks of small-
capitalization companies. Each Participant is required to comply, and
to enforce compliance by its members, as applicable, with the
provisions of the Plan. As is described more fully below, the proposed
rules would require ETP Holders \10\ to comply with the applicable data
collection requirements of the Plan.\11\
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    \10\ The term ETP Holder is defined in NYSE Arca Equities Rule
1.1(n) to mean a sole proprietorship, partnership, corporation,
limited liability company or other organization in good standing
that has been issued an ETP. An ETP Holder must be a registered
broker or dealer pursuant to Section 15 of the Act. An ETP Holder
shall agree to be bound by the Certificate of Incorporation, Bylaws
and Rules of NYSE Arca Equities, and by all applicable rules and
regulations of the Commission.
    The term ETP is defined in NYSE Arca Equities Rule 1.1(m) to
mean an equity trading permit issued by NYSE Arca Equities for
effecting approved securities transactions on NYSE Arca Equities'
trading facilities.
    \11\ The Exchange proposes to provide in the introduction
paragraph to NYSE Arca Equities Rule 7.46 (``Rule 7.46'') that the
Rule shall be in effect during a pilot period to coincide with the
pilot period for the Plan (including any extensions to the pilot
period for the Plan).
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    The Pilot will include stocks of companies with $3 billion or less
in market capitalization, an average daily trading volume of one
million shares or less, and a volume weighted average price of at least
$2.00 for every trading day. The Pilot will consist of a control group
of approximately 1400 Pilot Securities and three test groups with 400
Pilot Securities in each (selected by a stratified random sampling
process).\12\ During the pilot, Pilot Securities in the control group
will be quoted at the current tick size increment of $0.01 per share
and will trade at the currently permitted increments. Pilot Securities
in the first test group (``Test Group One'') will be quoted in $0.05
minimum increments but will continue to trade at any price increment
that is currently permitted.\13\ Pilot Securities in the second test
group (``Test Group Two'') will be quoted in $0.05 minimum increments
and will trade at $0.05 minimum increments subject to a midpoint
exception, a retail investor order exception, and a negotiated trade
exception.\14\ Pilot Securities in the third test group (``Test Group
Three'') will be subject to the same quoting and trading increments as
Test Group Two and also will be subject to the ``Trade-at'' requirement
to prevent price matching by a market participant that is not
displaying at a Trading Center's ``Best Protected Bid'' or ``Best
Protected Offer,'' unless an enumerated exception applies.\15\ In
addition to the exceptions provided under Test Group Two, an exception
for Block Size orders and exceptions that mirror those under Rule 611
of Regulation NMS \16\ will apply to the Trade-at requirement.
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    \12\ See Section V of the Plan for identification of Pilot
Securities, including criteria for selection and grouping.
    \13\ See Section VI(B) of the Plan.
    \14\ See Section VI(C) of the Plan.
    \15\ See Section VI(D) of the Plan.
    \16\ 17 CFR 242.611.
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    In approving the Plan, the Commission noted that the Trading Center
data reporting requirements would facilitate an analysis of the effects
of the Pilot on liquidity (e.g., transaction costs by order size),
execution quality (e.g., speed of order executions), market maker
activity, competition between trading venues (e.g., routing frequency
of market orders), transparency (e.g., choice between displayed and
hidden orders), and market dynamics (e.g., rates and speed of order
cancellations).\17\ The Commission noted that Market Maker
profitability data would assist the Commission in evaluating the
effect, if any, of a widened tick increment on market marker profits
and any corresponding changes in the liquidity of small-capitalization
securities.\18\
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    \17\ See Approval Order, 80 FR at 27543.
    \18\ Id.
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Compliance with the Data Collection Requirements of the Plan
    The Plan contains requirements for collecting and transmitting data
to the Commission and to the public.\19\ Specifically, Appendix B.I of
the Plan (Market Quality Statistics) requires Trading Centers \20\ to
submit variety of market quality statistics, including information
about an order's original size, whether the order was displayable or
not, the cumulative number of orders, the cumulative number of shares
of orders, and the cumulative number of shares executed within specific
time increments, e.g., from 30 seconds to less than 60 seconds after
the time of order receipt. This information shall be categorized by
security, order type, original order size, hidden status, and coverage
under Rule 605.\21\ Appendix B.I of the Plan also contains additional
requirements for market orders and marketable limit orders, including
the share-weighted average effective spread for executions of orders;
the cumulative number of shares of orders executed with price
improvement; and, for shares executed with price improvement, the
share-weighted average amount per share that prices were improved.
---------------------------------------------------------------------------

    \19\ The Exchange is also required by the Plan to establish,
maintain, and enforce written policies and procedures that are
reasonably designed to comply with applicable quoting and trading
requirements specified in the Plan. The Exchange plans to separately
propose Rules 7.46(a) and 7.46(c)-(e) that would require compliance
by its ETP Holders with the applicable quoting and trading
requirements specified in the Plan and has reserved Rules 7.46(a)
and 7.46(c)-(e) for this purpose. See, e.g., Securities Exchange Act
Release No. 76229 (October 22, 2015), 80 FR 66065 (October 28, 2015)
(SR-NYSE-2015-46) (``Quoting & Trading Rules Proposal''), as amended
by Partial Amendment No. 1 to the Quoting & Trading Rules Proposal.
    \20\ The Plan incorporates the definition of a ``Trading
Center'' from Rule 600(b)(78) of Regulation NMS. Regulation NMS
defines a ``Trading Center'' as ``a national securities exchange or
national securities association that operates an SRO trading
facility, an alternative trading system, an exchange market maker,
an OTC market maker, or any other broker or dealer that executes
orders internally by trading as principal or crossing orders as
agent.'' See 17 CFR 242.600(b).
    \21\ 17 CFR 242.605.
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    Appendix B.II of the Plan (Market and Marketable Limit Order Data)
requires Trading Centers to submit information relating to market
orders and marketable limit orders, including the time of order
receipt, order type, the order size, the National Best Bid and National
Best Offer (``NBBO'') quoted price, the NBBO quoted depth, the average
execution price-share-weighted average, and the average execution time-
share-weighted average.
    The Plan requires Appendix B.I and B.II data to be submitted by
Participants that operate a Trading Center, and by members of the
Participants that operate Trading Centers. The Plan provides that each
Participant that is the Designated Examining Authority (``DEA'') for a
member of the Participant that operates a Trading Center shall collect
such data in a pipe delimited format, beginning six months prior to the
Pilot Period and ending six months after the end of the Pilot Period.
The Plan also requires the Participant, operating as DEA, to transmit
this information to the SEC within 30 calendar days following month
end.
    The Exchange is proposing new Rule 7.46(b) to set forth the
requirements for the collection and transmission of data pursuant to
Appendices B and C of the Plan. Proposed Rule 7.46(b) is substantially
similar to the proposed

rule changes by BZX that were recently approved by the Commission to
adopt BZX Rule 11.27(b) which also sets forth requirements for the
collection and transmission of data pursuant to Appendices B and C of
the Plan.\22\
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    \22\ See Securities Exchange Act Release Nos. 77105 (February
10, 2016), 81 FR 8112 (February 17, 2016) (order approving SR-BATS-
2015-102); and 77310 (March 7, 2016) (notice for comment and
immediate effectiveness of SR-BATS-2016-27).
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    Proposed Rule 7.46(b)(1) requires that an ETP Holder that operates
a Trading Center shall establish, maintain and enforce written policies
and procedures that are reasonably designed to comply with the data
collection and transmission requirements of Items I and II to Appendix
B of the Plan, and an ETP Holder that is a Market Maker shall
establish, maintain and enforce written policies and procedures that
are reasonably designed to comply with the data collection and
transmission requirements of Item IV of Appendix B of the Plan and Item
I of Appendix C of the Plan.
    Proposed Rule 7.46(b)(2) provides that the Exchange shall collect
and transmit to the SEC the data described in Items I and II of
Appendix B of the Plan relating to trading activity in Pre-Pilot Data
Collection Securities \23\ and Pilot Securities on a Trading Center
operated by the Exchange. The Exchange shall transmit such data to the
SEC in a pipe delimited format, on a disaggregated basis by Trading
Center, within 30 calendar days following month end for: (i) Each Pre-
Pilot Data Collection Security for the period beginning six months
prior to the Pilot Period through the trading day immediately preceding
the Pilot Period; and (ii) each Pilot Security for the period beginning
on the first day of the Pilot Period through six months after the end
of the Pilot Period. The Exchange also shall make such data publicly
available on the Exchange Web site on a monthly basis at no charge and
will not identify the ETP Holder that generated the data.
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    \23\ The Exchange is proposing Commentary .90 to proposed Rule
7.46(b) to define ``Pre-Pilot Data Collection Securities'' as the
securities designated by the Participants for purposes of the data
collection requirements described in Items I, II and IV of Appendix
B and Item I of Appendix C of the Plan for the period beginning six
months prior to the Pilot Period and ending on the trading day
immediately preceding the Pilot Period. The Participants shall
compile the list of Pre-Pilot Data Collection Securities by
selecting all NMS stocks with a market capitalization of $5 billion
or less, a Consolidated Average Daily Volume (CADV) of 2 million
shares or less and a closing price of $1 per share or more. The
market capitalization and the closing price thresholds shall be
applied to the last day of the pre-pilot measurement period, and the
CADV threshold shall be applied to the duration of the pre-pilot
measurement period. The pre-pilot measurement period shall be the
three calendar months ending on the day when the Pre-Pilot Data
Collection Securities are selected. The Pre-Pilot Data Collection
Securities shall be selected thirty days prior to the commencement
of the six-month pre-pilot period. On the trading day that is the
first trading day of the Pilot Period through six months after the
end of the Pilot Period, the data collection requirements will
become applicable to the Pilot Securities only.
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    Appendix B.IV (Daily Market Maker Participation Statistics)
requires a Participant to collect data related to Market Maker
participation from each Market Maker \24\ engaging in trading activity
on a Trading Center operated by the Participant. The Exchange is
therefore proposing Rule 7.46(b)(3) to gather data about a Market
Maker's participation in Pilot Securities and Pre-Pilot Data Collection
Securities. Proposed Rule 7.46(b)(3)(A) provides that an ETP Holder
that is a Market Maker shall collect and transmit to their DEA data
relating to Item IV of Appendix B of the Plan with respect to activity
conducted on any Trading Center in Pilot Securities and Pre-Pilot Data
Collection Securities in furtherance of its status as a registered
Market Maker, including a Trading Center that executes trades otherwise
than on a national securities exchange, for transactions that have
settled or reached settlement date. The proposed rule requires Market
Makers to transmit such data in a format required by their DEA, by
12:00 p.m. EST on T+4 for: (i) Transactions in each Pre-Pilot Data
Collection Security for the period beginning six months prior to the
Pilot Period through the trading day immediately preceding the Pilot
Period; and (ii) for transactions in each Pilot Security for the period
beginning on the first day of the Pilot Period through six months after
the end of the Pilot Period.
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    \24\ The Plan defines a Market Maker as ``a dealer registered
with any self-regulatory organization, in accordance with the rules
thereof, as (i) a market maker or (ii) a liquidity provider with an
obligation to maintain continuous, two-sided trading interest.''
---------------------------------------------------------------------------

    The Exchange understands that some ETP Holders may utilize a DEA
that is not a Participant to the Plan and that their DEA would not be
subject to the Plan's data collection requirements. In such case, a DEA
that is not a Participant of the Plan would not be required to collect
the required data and may not establish procedures for which ETP
Holders it acts a DEA for to report the data required under
subparagraphs (b)(3)(A) of Rule 7.46 and in accordance with Item IV of
Appendix B of the Plan. Therefore, the Exchange proposes to adopt
subparagraph (b)(3)(B) to Rule 7.46 to require an ETP Holder that is a
Market Maker whose DEA is not a Participant to the Plan to transmit the
data collected pursuant to paragraph (3)(A) of Rule 7.46(b) to FINRA,
which is a Participant to the Plan and is to collect data relating to
Item IV of Appendix B of the Plan on behalf of the Participants. For
Market Makers for which it is the DEA, FINRA issued a Market Maker
Transaction Data Technical Specification to collect data on Pre-Pilot
Data Collection Securities and Pilot Securities from Trading Centers to
comply with the Plan's data collection requirements.\25\
---------------------------------------------------------------------------

    \25\ FINRA members for which FINRA is their DEA should refer to
the Market Maker Transaction Data Technical Specification on the
FINRA Web site at http://www.finra.org/sites/default/files/market-maker-transaction-data-tech-specs.pdf.
---------------------------------------------------------------------------

    Proposed Rule 7.46(b)(3)(C) provides that the Exchange shall
transmit the data collected by the DEA or FINRA pursuant to Rule
7.46(b)(3)(A) and (B) above relating to Market Maker activity on a
Trading Center operated by the Exchange to the SEC in a pipe delimited
format within 30 calendar days following month end. The Exchange shall
also make such data publicly available on the Exchange Web site on a
monthly basis at no charge and shall not identify the Trading Center
that generated the data.
    Appendix C.I (Market Maker Profitability) requires a Participant to
collect data related to Market Maker profitability from each Market
Maker for which it is the DEA. Specifically, the Participant is
required to collect the total number of shares of orders executed by
the Market Maker; the raw Market Maker realized trading profits, and
the raw Market Maker unrealized trading profits. Data shall be
collected for dates starting six months prior to the Pilot Period
through six months after the end of the Pilot Period. This data shall
be collected on a monthly basis, to be provided in a pipe delimited
format to the Participant, as DEA, within 30 calendar days following
month end. Appendix C.II (Aggregated Market Maker Profitability)
requires the Participant, as DEA, to aggregate the Appendix C.I data,
and to categorize this data by security as well as by the control group
and each Test Group. That aggregated data shall contain information
relating to total raw Market Maker realized trading profits, volume-
weighted average of raw Market Maker realized trading profits, the
total raw Market Maker unrealized trading profits, and the volume-
weighted average of Market Maker unrealized trading profits.
    The Exchange is therefore proposing Rule 7.46(b)(4) to set forth
the requirements for the collection and transmission of data pursuant
to Appendix C.I of the Plan. Proposed Rule 7.46(b)(4)(A) requires that
an ETP Holder that is a Market Maker shall

collect and transmit to their DEA the data described in Item I of
Appendix C of the Plan with respect to executions in Pilot Securities
that have settled or reached settlement date that were executed on any
Trading Center. The proposed rule also requires ETP Holders to provide
such data in a format required by their DEA by 12 p.m. EST on T+4 for
executions during and outside of Regular Trading Hours in each: (i)
Pre-Pilot Data Collection Security for the period beginning six months
prior to the Pilot Period through the trading day immediately preceding
the Pilot Period; and (ii) Pilot Security for the period beginning on
the first day of the Pilot Period through six months after the end of
the Pilot Period.
    For the same reasons set forth above for subparagraph (b)(3)(B) to
Rule 7.46, the Exchange proposes to adopt subparagraph (b)(4)(B) to
Rule 7.46 to require an ETP Holder that is a Market Maker whose DEA is
not a Participant to the Plan to transmit the data collected pursuant
to paragraph (4)(A) of Rule 7.46(b) to FINRA. As stated above, FINRA is
a Participant to the Plan and is to collect data relating to Item I of
Appendix C of the Plan on behalf of the Participants. For Market Makers
for which it is the DEA, FINRA issued a Market Maker Transaction Data
Technical Specification to collect data on Pre-Pilot Data Collection
Securities and Pilot Securities from Trading Centers to comply with the
Plan's data collection requirements.\26\
---------------------------------------------------------------------------

    \26\ Id.
---------------------------------------------------------------------------

    The Exchange is also adopting a rule setting forth the manner in
which Market Maker participation will be calculated. Item III of
Appendix B of the Plan requires each Participant that is a national
securities exchange to collect daily Market Maker registration
statistics categorized by security, including the following
information: (i) Ticker symbol; (ii) the Participant exchange; (iii)
number of registered market makers; and (iv) the number of other
registered liquidity providers. Therefore, the Exchange proposes to
adopt Rule 7.46(b)(5) providing that the Exchange shall collect and
transmit to the SEC the data described in Item III of Appendix B of the
Plan relating to daily Market Maker registration statistics in a pipe
delimited format within 30 calendar days following month end for: (i)
Transactions in each Pre-Pilot Data Collection Security for the period
beginning six months prior to the Pilot Period through the trading day
immediately preceding the Pilot Period; and (ii) transactions in each
Pilot Security for the period beginning on the first day of the Pilot
Period through six months after the end of the Pilot Period.
    The Exchange is also proposing, through Commentary to proposed Rule
7.46(b), to clarify other aspects of the data collection requirements.
Commentary .10 to proposed Rule 7.46(b) relates to the use of the
retail investor order flag for purposes of Appendix B.II(n) reporting.
The Plan currently states that market and marketable limit orders shall
include a ``yes/no'' field relating to the Retail Investor Order flag.
The Exchange is proposing Commentary .10 to proposed Rule 7.46(b) to
clarify that, for purposes of the reporting requirement in Appendix
B.II(n), a Trading Center shall report ``y'' to their DEA where it is
relying upon the Retail Investor Order exception to Test Groups Two and
Three, and ``n'' for all other instances.\27\ The Exchange believes
that requiring the identification of a Retail Investor Orders only
where the exception may apply (i.e., Pilot Securities in Test Groups
Two and Three) is consistent with Appendix B.II(n).
---------------------------------------------------------------------------

    \27\ FINRA, on behalf of the Plan Participants submitted a
letter to Commission requesting exemption from certain provisions of
the Plan related to data collection. See letter from Marcia E.
Asquith, Senior Vice President and Corporate Secretary, FINRA dated
December 9, 2015 to Robert W. Errett, Deputy Secretary, Commission
(``Exemption Request''). The Commission, pursuant to its authority
under Rule 608(e) of Regulation NMS, granted BZX a limited exemption
from the requirement to comply with certain provisions of the Plan
as specified in the letter and noted herein. See letter from David
Shillman, Associate Director, Division of Trading and Markets,
Commission to Eric Swanson, General Counsel, BZX, dated February 10,
2016 (``Exemption Letter'').
---------------------------------------------------------------------------

    Commentary .20 to proposed Rule 7.46(b) requires that ETP Holders
populate a field to identify to their DEA whether an order is affected
by the bands in place pursuant to the National Market System Plan to
Address Extraordinary Market Volatility.\28\ Pursuant to the Limit-Up
Limit-Down Plan, between 9:30 a.m. and 4:00 p.m., the Securities
Information Processor (``SIP'') calculates a lower price band and an
upper price band for each NMS stock. These price bands represent a
specified percentage above or below the stock's reference price, which
generally is calculated based on reported transactions in that stock
over the preceding five minutes. When one side of the market for an
individual security is outside the applicable price band, the SIP
identifies that quotation as non-executable. When the other side of the
market reaches the applicable price band (e.g., the offer reaches the
lower price band), the security enters a Limit State. The stock would
exit a Limit State if, within 15 seconds of entering the Limit State,
all Limit State Quotations were executed or canceled in their entirety.
If the security does not exit a Limit State within 15 seconds, then the
primary listing exchange declares a five-minute trading pause, which
would be applicable to all markets trading the security.
---------------------------------------------------------------------------

    \28\ See National Market System Plan to Address Extraordinary
Market Volatility, Securities Exchange Act Release No. 67091 (May
31, 2012), 77 FR 33498 (June 6, 2012) (File No. 4-631) (``Limit-Up
Limit-Down Plan'').
---------------------------------------------------------------------------

    The Exchange and the other Participants have determined that it is
appropriate to create a new flag for reporting orders that are affected
by the Limit-Up Limit-Down bands. Accordingly, a Trading Center shall
report a value of ``Y'' to their DEA when the ability of an order to
execute has been affected by the Limit-Up Limit-Down bands in effect at
the time of order receipt. A Trading Center shall report a value of
``N'' to their DEA when the ability of an order to execute has not been
affected by the Limit-Up Limit-Down bands in effect at the time of
order receipt.
    Commentary .20 to proposed Rule 7.46(b) also requires, for
securities that may trade in a foreign market, that the Participant
indicate whether the order was handled domestically, or routed to a
foreign venue. Accordingly, the Participant will indicate, for purposes
of Appendix B.I, whether the order was: (1) Fully executed
domestically, or (2) fully or partially executed on a foreign market.
For purposes of Appendix B.II, the Participant will classify all orders
in securities that may trade in a foreign market Pilot and Pre-Pilot
Securities as: (1) Directed to a domestic venue for execution; (2) may
only be directed to a foreign venue for execution; or (3) was fully or
partially directed to a foreign venue at the discretion of the member.
The Exchange believes that this proposed flag will better identify
orders in securities that may trade in a foreign market, as such orders
that were routed to foreign venues would not be subject to the Plan's
quoting and trading requirements, and could otherwise compromise the
integrity of the data.
    Commentary .30 to proposed Rule 7.46(b) relates to the time ranges
specified in Appendix B.I.a(14), B.I.a(15), B.I.a(21) and
B.I.a(22).\29\ The

Exchange and the other Participants have determined that it is
appropriate to change the reporting times in these provisions to
require more granular reporting for these categories. Accordingly, the
Exchange proposes to add Appendix B.I.a(14A), which will require
Trading Centers to report the cumulative number of shares of orders
executed from 100 microseconds to less than 1 millisecond after the
time of order receipt. Appendix B.I.a(15) will be changed to require
the cumulative number of shares of orders executed from 1 millisecond
to less than 100 milliseconds after the time of order receipt. The
Exchange also proposes to add Appendix B.I.a(21A), which will require
Trading Centers to report the cumulative number of shares of orders
canceled from 100 microseconds to less than 1 millisecond after the
time of order receipt. Appendix B.I.a(22) will be changed to require
the cumulative number of shares of orders canceled from 1 millisecond
to less than 100 milliseconds after the time of order receipt. The
Exchange believes that these new reporting requirements will contribute
to a meaningful analysis of the Pilot by producing more granular data
on these points.\30\
---------------------------------------------------------------------------

    \29\ Specifically, Appendix B.I.a(14) requires reporting of the
cumulative number of shares of orders executed from 0 to less than
100 microseconds after the time of order receipt; Appendix B.I.a(15)
requires reporting of the cumulative number of shares of orders
executed from 100 microseconds to less than 100 milliseconds after
the time of order receipt; Appendix B.I.a(21) requires reporting of
the cumulative number of shares of orders cancelled from 0 to less
than 100 microseconds after the time of order receipt; and Appendix
B.I.a(22) requires reporting of the cumulative number of shares of
orders cancelled from 100 microseconds to less than 100 milliseconds
after the time of order receipt.
    \30\ The Commission granted BZX an exemption from Rule 608(c)
related to this provision. See Exemption Letter, supra note 27.
---------------------------------------------------------------------------

    Commentary .40 to proposed Rule 7.46(b) relates to the relevant
measurement for purposes of Appendix B.I.a(31)-(33) reporting.
Currently, the Plan states that this data shall be reported as of the
time of order execution. The Exchange and the other Participants
believe that this information should more properly be captured at the
time of order receipt as evaluating share-weighted average prices at
the time of order receipt is more consistent with the goal of observing
the effect of the Pilot on the liquidity of Pilot Securities. The
Exchange is therefore proposing to make this change through Commentary
.40 to proposed Rule 7.46(b).\31\ This change will make these
provisions consistent with the remainder of the statistics in Appendix
B.I.a, which are all based on order receipt.
---------------------------------------------------------------------------

    \31\ The Commission granted BZX an exemption from Rule 608(c)
related to this provision. See Exemption Letter, supra note 27.
---------------------------------------------------------------------------

    Commentary .50 to proposed Rule 7.46(b) addresses the status of
not-held and auction orders for purposes of Appendix B.I reporting.
Currently, Appendix B.I sets forth eight categories of orders,
including market orders, marketable limit orders, and inside-the-quote
resting limit orders, for which daily market quality statistics must be
reported. Currently, Appendix B.I does not provide a category for not
held orders, clean cross orders, auction orders, or orders received
when the NBBO is crossed. The Exchange and the other Participants have
determined that it is appropriate to include separate categories for
these orders types for purposes of Appendix B reporting. The Exchange
is therefore proposing Commentary .50 to proposed Rule 7.46(b) to
provide that not held orders shall be included as an order type for
purposes of Appendix B reporting, and shall be assigned the number
(18). Clean cross orders shall be included as an order type for
purposes of Appendix B reporting, and shall be assigned the number
(19); auction orders shall be included an as order type for purposes of
Appendix B reporting, and shall be assigned the number (20); and orders
that cannot otherwise be classified, including, for example, orders
received when the NBBO is crossed shall be included as an order type
for purposes of Appendix B reporting, and shall be assigned the number
(21). All of these orders already are included in the scope of Appendix
B; however, without this proposed change, these order types would be
categorized with other orders, such as regular held orders, that should
be able to be fully executed upon receipt, which would compromise the
value of this data.
    The Exchange is proposing Commentary .60 to proposed Rule 7.46(b)
to clarify the scope of the Plan as it relates to ETP Holders that only
execute orders limited purposes. Specifically, The Exchange and the
other Participants believe that an ETP Holder that only executes orders
otherwise than on a national securities exchange for the purpose of:
(1) Correcting a bona fide error related to the execution of a customer
order; (2) purchasing a security from a customer at a nominal price
solely for purposes of liquidating the customer's position; or (3)
completing the fractional share portion of an order \32\ shall not be
deemed a Trading Center for purposes of Appendix B to the Plan. The
Exchange is therefore proposing Commentary .60 to proposed Rule 7.46(b)
to make this clarification.
---------------------------------------------------------------------------

    \32\ The Exchange notes that where an ETP Holder purchases a
fractional share from a customer, the Trading Center that executes
the remaining whole shares of that customer order would subject to
subject to Appendix B of the Plan.
---------------------------------------------------------------------------

    The Exchange is proposing Commentary .70 to proposed Rule 7.46(b)
to clarify that, for purposes of the Plan, Trading Centers must begin
the data collection required pursuant to Appendix B.I.a(1) through
B.II.(y) of the Plan and Item I of Appendix C of the Plan on April 4,
2016. While the Exchange or the ETP Holder's DEA will provide the
information required by Appendix B and C of the Plan during the Pilot
Period, the requirement thats [sic] the Exchange or their DEA provide
information to the SEC within 30 days following month end and make such
data publicly available on its Web site pursuant to Appendix B and C
shall commence six months prior to the beginning of the Pilot
Period.\33\
---------------------------------------------------------------------------

    \33\ In its order approving the Plan, the SEC noted that the
Pilot shall be implemented within one year of the date of
publication of its order, e.g., by May 6, 2016. See Approval Order,
80 FR at 27545. However, on November 6, 2015, the SEC extended the
implementation date approximately five months to October 3, 2016.
See Securities Exchange Act Release No. 76382 (November 6, 2015), 80
FR 70284 (File No. 4-657) (Order Granting Exemption From Compliance
With the National Market System Plan To Implement a Tick Size Pilot
Program). See also Letter from Brendon J. Weiss, Co-Head, Government
Affairs, Intercontinental Exchange/NYSE, to Brent J. Fields,
Secretary, Commission, dated November 4, 2015 (requesting the data
collection period be extended until six months after the requisite
SRO rules are approved, and the implementation data of the Tick Size
Pilot until six months thereafter).
---------------------------------------------------------------------------

    The Exchange is proposing Commentary .80 to proposed Rule 7.46(b)
to address the requirement in Appendix C.I(b) of the Plan that the
calculation of raw Market Maker realized trading profits utilize a last
in, first out (``LIFO'')-like method to determine which share prices
shall be used in that calculation. The Exchange and the other
Participants believe that it is more appropriate to utilize a
methodology that yields LIFO-like results, rather than utilizing a
LIFO-like method, and the Exchange is therefore proposing Commentary
.80 to proposed Rule 7.46(b) to make this change.\34\ The Exchange is
proposing that, for purposes of Item I of Appendix C, the Participants
shall calculate daily Market Maker realized profitability statistics
for each trading day on a daily LIFO basis using reported trade price
and shall include

only trades executed on the subject trading day. The daily LIFO
calculation shall not include any positions carried over from previous
trading days. For purposes of Item I.c of Appendix C, the Participants
shall calculate daily Market Maker unrealized profitability statistics
for each trading day on an average price basis. Specifically, the
Participants must calculate the volume weighted average price of the
excess (deficit) of buy volume over sell volume for the current trading
day using reported trade price. The gain (loss) of the excess (deficit)
of buy volume over sell volume shall be determined by using the volume
weighted average price compared to the closing price of the security as
reported by the primary listing exchange. In reporting unrealized
trading profits, the Participant shall also report the number of excess
(deficit) shares held by the Market Maker, the volume weighted average
price of that excess (deficit) and the closing price of the security as
reported by the primary listing exchange used in reporting unrealized
profit.\35\
---------------------------------------------------------------------------

    \34\ Appendix C.I currently requires Market Maker profitability
statistics to include (1) the total number of shares of orders
executed by the Market Maker; (2) raw Market Maker realized trading
profits, which is the difference between the market value of Market
Maker shares and the market value of Market Maker purchases, using a
LIFO-like method; and (3) raw Market Maker unrealized trading
profits, which is the difference between the purchase or sale price
of the end-of-day inventory position of the Market Maker and the
Closing Price. In the case of a short position, the Closing Price
from the sale will be subtracted; in the case of a long position,
the purchase price will be subtracted from the Closing Price.
    \35\ The Commission granted BZX an exemption from Rule 608(c)
related to this provision. See Exemption Letter, supra note 27.
---------------------------------------------------------------------------

    Finally, the Exchange is proposing Commentary .90 to proposed Rule
7.46(b) to address the securities that will be used for data collection
purposes prior to the commencement of the Pilot Period. The Exchange
and the other Participants have determined that it is appropriate to
collect data for a group of securities that is larger, and using
different quantitative thresholds, than the group of securities that
will be Pilot Securities. The Exchange is therefore proposing
Commentary .90 to proposed Rule 7.46(b) to define ``Pre-Pilot Data
Collection Securities'' as the securities designated by the
Participants for purposes of the data collection requirements described
in Items I, II and IV of Appendix B and Item I of Appendix C of the
Plan for the period beginning six months prior to the Pilot Period and
ending on the trading day immediately preceding the Pilot Period. The
Participants shall compile the list of Pre-Pilot Data Collection
Securities by selecting all NMS stocks with a market capitalization of
$5 billion or less, a Consolidated Average Daily Volume (CADV) of 2
million shares or less and a closing price of $1 per share or more. The
market capitalization and the closing price thresholds shall be applied
to the last day of the pre-pilot measurement period, and the CADV
threshold shall be applied to the duration of the pre-pilot measurement
period. The pre-pilot measurement period shall be the three calendar
months ending on the day when the Pre-Pilot Data Collection Securities
are selected. The Pre-Pilot Data Collection Securities shall be
selected thirty days prior to the commencement of the six-month pre-
pilot period. On the trading day that is the first trading day of the
Pilot Period through six months after the end of the Pilot Period, the
data collection requirements will become applicable to the Pilot
Securities only. A Pilot Security will only be eligible to be included
in a Test Group if it was a Pre-Pilot Data Collection Security.
Implementation Date
    The proposed rule change will be effective on April 4, 2016.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \36\ in general, and furthers the objectives of Section
6(b)(5) of the Act \37\ in particular, in that it is designed to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------

    \36\ 15 U.S.C. 78f(b).
    \37\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that this proposal is consistent with the Act
because it implements and clarifies the provisions of the Plan, and is
designed to assist the Exchange in meeting its regulatory obligations
pursuant of the Plan. In approving the Plan, the SEC noted that the
Pilot was an appropriate, data-driven test that was designed to
evaluate the impact of a wider tick size on trading, liquidity, and the
market quality of securities of smaller capitalization companies, and
was therefore in furtherance of the purposes of the Act. The Exchange
believes that this proposal is in furtherance of the objectives of the
Plan, as identified by the SEC, and is therefore consistent with the
Act because the proposal implements and clarifies the requirements of
the Plan and applies specific obligations to ETP Holders in furtherance
of compliance with the Plan.

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

    The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
notes that the proposed rule change implements the provisions of the
Plan, and is designed to assist the Exchange in meeting its regulatory
obligations pursuant of the Plan. The Exchange also notes that the data
collection requirements for ETP Holders that operate Trading Centers
will apply equally to all such ETP Holders, as will the data collection
requirements for Market Makers.

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

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

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

    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 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) of the Act \38\ and Rule 19b-4(f)(6) thereunder.\39\
---------------------------------------------------------------------------

    \38\ 15 U.S.C. 78s(b)(3)(A).
    \39\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \40\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \41\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay. The
Commission believes that waiver of the operative delay is consistent
with the protection of investors and the public interest because it
would allow the Exchange to implement the proposed amendments on April
4, 2016, the date upon which the data collection requirements of the
Plan become effective.\42\ Therefore, the Commission hereby waives the

operative delay and designates the proposal operative on April 4,
2016.\43\
---------------------------------------------------------------------------

    \40\ 17 CFR 240.19b-4(f)(6).
    \41\ 17 CFR 240.19b-4(f)(6)(iii).
    \42\ See Securities Exchange Act Release No. 76382 (November 6,
2015), 80 FR 70284 (File No. 4-657) (Order Granting Exemption From
Compliance With the National Market System Plan To Implement a Tick
Size Pilot Program).
    \43\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of 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 to
determine whether the proposed rule change should be approved or
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-NYSEARCA-2016-52 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-NYSEARCA-2016-52. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference 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; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEARCA-2016-52, and should
be submitted on or before April 27, 2016.
---------------------------------------------------------------------------

    \44\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\44\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-07831 Filed 4-5-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 118 (Thursday, June 19, 2014)]
[Notices]
[Pages 35196-35198]
[FR Doc No: 2014-14310]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72392; File No. SR-CFE-2014-002]

Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to the Notification and Reporting Provisions for Exchange of
Contract for Related Position Transactions and Block Trades

June 13, 2014.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 21, 2014 CBOE Futures
Exchange, LLC (``CFE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``SEC'' or ``Commission'') the proposed rule
change described in Items I, II, and III below, which Items have been
prepared by CFE. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons. CFE also
has filed this proposed rule change with the Commodity Futures Trading
Commission (``CFTC''). CFE filed a written certification with the CFTC
under Section 5c(c) of the Commodity Exchange Act (``CEA'') \2\ on May
21, 2014.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 7 U.S.C. 7a-2(c).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Description of the Proposed Rule
Change

    CFE proposes to revise the notification and reporting provisions
contained in CFE Rules 414 (Exchange of Contract for Related Position)
(``ECRP'') and 415 (Block Trading).
    The scope of this filing is limited solely to the application of
the rule changes to security futures traded on CFE. The only security
futures currently traded on CFE are traded under Chapter 16 of CFE's
Rulebook which is applicable to Individual Stock Based and Exchange-
Traded Fund Based Volatility Index (``Volatility Index'') security
futures.
    The text of the proposed rule change is attached as Exhibit 4 to
the filing submitted by the Exchange but is not attached to the
published notice of the filing.

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

    In its filing with the Commission, CFE 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.
CFE 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
    Last year, CFE implemented a two-phased expansion of extended
trading hours in CBOE Volatility Index (``VIX'') futures. Because the
CFE Help Desk was staffed to support VIX futures trading during longer
hours, CFE amended the notification and reporting provisions for ECRP
transactions and Block Trades for all products traded on CFE, including
security futures.\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release Nos. 70611 (October 4,
2013) (Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Relating to the Notification and Reporting Provisions
for Exchange of Contract for Related Position Transactions and Block
Trades) (SR-CFE-2013-005) and 70789 (October 31, 2013) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to the Notification Provisions for Exchange of Contract for
Related Position Transactions and Block Trades) (SR-CFE-2013-006).
---------------------------------------------------------------------------

    CFE is again expanding extended trading hours in VIX futures to be
nearly 24 hours a day, five days a week. As a result, the Exchange is
changing the time frames during which ECRP transactions and Block
Trades may be reported. Those time frames will be whenever the Exchange
is open for trading VIX futures and from 3:15 p.m. to 3:30 p.m.
(Chicago time) Monday through Friday. ECRP transactions and Block
Trades will not be able to be consummated in a CFE contract outside of
trading hours for the contract unless the transaction is fully reported
to the Exchange during these time frames and by no later than the
reporting deadline for these types of transactions (which is currently
no later than ten minutes after the transaction is agreed upon for all
CFE contracts).
    The Exchange is also limiting the manner in which notification of
ECRP transactions and Block Trades may be provided to the CFE Help
Desk. Specifically, the manner of notification must be made by email
and notification by phone will no longer be permitted.
    Finally, the Exchange is clarifying that ECRP transactions and
Block Trades in an expiring contract on the last trading day for that
contract may not occur after the termination of trading hours in the
expiring contract on that trading day. An ECRP transaction or Block
Trade in an expiring contract that occurs during the trading hours for
that contract may be reported to the Exchange after those trading
hours, but only if the transaction is fully reported to the Exchange by
no later than the reporting deadline referenced above.
    To effectuate these changes, CFE is amending the notification and
reporting provisions of CFE Rule 414 (which sets forth requirements
relating to ECRP transactions) and CFE Rule 415 (which sets forth
requirements relating to Block Trades).
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\4\ in general, and furthers the
objectives of Section 6(b)(5) \5\ in particular in that it is designed
to foster cooperation and coordination with persons engaged in
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change would benefit
investors and market participants because it would enhance CFE's ECRP
and Block Trade reporting provisions by extending the time frames
during which ECRP transactions and Block Trades may be reported. The
Exchange also believes that requiring notification of ECRP transactions
and Block Trades to be made only by email would benefit the marketplace
by creating a record evidencing the parties' specific details of the
trade previously agreed upon. The Exchange believes that the proposed
rule change is equitable and not unfairly discriminatory because
amended CFE Rules 414 and 415 would apply to all TPHs and Authorized
Reporters and do not discriminate between market participants.

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

    CFE does not believe that the proposed rule change will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act, in that the rule change makes enhancements to
CFE's Block Trade and ECRP reporting process. In addition, the Exchange
believes that the expansion of the ability to report Block Trades and
ECRP transactions in security futures in conjunction with the expansion
of trading hours in VIX futures will promote competition because it
will provide for the reporting and dissemination of security futures
Block Trades and ECRPs during additional time frames which will serve
to promote additional transparency and thus potential further price
competition.

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

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

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

    The proposed rule change will become operative on or after June 6,
2014.
    At any time within 60 days of the date of effectiveness of the
proposed rule change, the Commission, after consultation with the CFTC,
may summarily abrogate the proposed rule change and require that the
proposed rule change be refiled in accordance with the provisions of
Section 19(b)(1) of the Act.\6\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

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-CFE-2014-002 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CFE-2014-002. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent

amendments, all written statements with respect to the proposed rule
change that are filed with the Commission, and all written
communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site viewing and printing in the Commission's Public
Reference 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 also will be available for inspection and copying at the
principal offices 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 Number SR-CFE-2014-002, and should be submitted on or before July
10, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-14310 Filed 6-18-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: October 16, 2007 (Volume 72, Number 199)]
[Notices]
[Page 58656-58657]
[DOCID:fr16oc07-67]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[FFP Project 18, LLC; Project No. 12857-000]

Notice of Application Accepted for Filing and Soliciting
Comments, Motions To Intervene, and Protests

October 4, 2007.
    Take notice that the following hydroelectric applications have been
filed with the Commission and are available for public inspection:
    a. Type of Application: Preliminary Permit.
    b. Project No.: P-12857-000.
    c. Date Filed: July 25, 2007.
    d. Applicant: FFP Project 18, LLC.
    e. Name of the Project: College Point Project.
    f. Location: The project would be located on the Mississippi River
in St. James Parish, Louisiana. The project uses no dam or impoundment.
    g. Filed Pursuant to: Federal Power Act, 16 U.S.C. 791a-825r.
    h. Applicants Contact: Mr. Dan Irvin, FFP Project 18, LLC, 69
Bridge Street, Manchester, MA 01944, phone<PHONE_NUMBER>.
    i. FERC Contact: Patricia W. Gillis,<PHONE_NUMBER>.
    j. Deadline for filing comments, protests, and motions to
intervene: 60 days from the issuance date of this notice.
    All documents (original and eight copies) should be filed with:
Secretary, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426. Comments, protests, and interventions may be
filed electronically via the Internet in lieu of paper; see 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings. Please include the project number (P-12857-000) on
any comments or motions filed.
    The Commission's Rules of Practice and Procedure require all
intervenors filing documents with the Commission to serve a copy of
that document on each person in the official service list for the
project. Further, if an intervenor files comments or documents with the
Commission relating to the merits of an issue that may affect the
responsibilities of a particular resource agency, they must also serve
a copy of the document on that resource agency.
    k. Description of Project: The proposed project would consist of:
(1) 1,000 proposed 20-kilowatt Free Flow generating units having a
total installed capacity of 20-megawatts, (2) a proposed transmission
line, and (4) appurtenant facilities. The project would have an average
annual generation of 87.6-gigawatt-hours and be sold to a local
utility.
    l. Location of Application: A copy of the application is available
for inspection and reproduction at the Commission in the Public
Reference Room, located at 888 First Street, NE., Room 2A, Washington,
DC 20426, or by calling<PHONE_NUMBER>. This filing may also be viewed
on the Commission's Web site at http://www.ferc.gov using the

``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. For
assistance, call toll-free 1-866-208-3676 or e-mail
<EMAIL_ADDRESS>For TTY, call<PHONE_NUMBER>. A copy is

also available for inspection and reproduction at the address in item h
above.
    m. Individuals desiring to be included on the Commission's mailing
list should so indicate by writing to the Secretary of the Commission.
    n. Competing Preliminary Permit--Anyone desiring to file a
competing application for preliminary permit for a proposed project
must submit the competing application itself, or a notice of intent to
file such an application, to the Commission on or before the specified
comment date for the particular application (see 18 CFR 4.36).
Submission of a timely notice of intent allows an interested person to
file the competing preliminary permit application no later than 30 days
after the specified comment date for the particular application. A
competing preliminary permit application must conform with 18 CFR 4.30
and 4.36.
    o. Competing Development Application--Any qualified development
applicant desiring to file a competing development application must
submit to the Commission, on or before a specified comment date for the
particular application, either a competing development application or a
notice of intent to file such an application. Submission of a timely
notice of intent to file a development application allows an interested
person to file the competing application no later than 120 days after
the specified comment date for the particular application. A competing
license application must conform with 18 CFR 4.30 and 4.36.
    p. Notice of Intent--A notice of intent must specify the exact
name, business address, and telephone number of the prospective
applicant, and must include an unequivocal statement of intent to
submit, if such an application may be filed, either a preliminary
permit application or a development application (specify which type of
application). A notice of intent must be served on the applicant(s)
named in this public notice.
    q. Proposed Scope of Studies Under Permit--A preliminary permit, if
issued, does not authorize construction. The term of the proposed
preliminary permit would be 36 months. The work proposed under the
preliminary permit would include economic analysis, preparation of
preliminary engineering plans, and a study of environmental impacts.
Based on the results of these studies, the Applicant would decide
whether to proceed with the preparation of a development application to
construct and operate the project.
    r. Comments, Protests, or Motions to Intervene--Anyone may submit
comments, a protest, or a motion to intervene in accordance with the
requirements of Rules of Practice and Procedure, 18 CFR 385.210, .211,
.214. In determining the appropriate action to take, the Commission
will consider all protests or other comments filed, but only those who
file a motion to intervene in accordance with the Commission's Rules
may become a party to the proceeding. Any comments, protests, or
motions to intervene must be received on or before the specified
comment date for the particular application.
    Comments, protests and interventions may be filed electronically
via the Internet in lieu of paper. See 18 CFR 385.2001(a)(1)(iii) and
the instructions on the Commission's Web site at http://www.ferc.gov

under the ``e-Filing'' link.
    s. Filing and Service of Responsive Documents--Any filings must
bear in all capital letters the title ``COMMENTS'', ``NOTICE OF INTENT

TO FILE COMPETING APPLICATION'', ``COMPETING APPLICATION'',
``PROTEST'', and ``MOTION TO INTERVENE'', as applicable, and the
Project Number of the particular application to which the filing
refers. Any of the above-named documents must be filed by providing the
original and the number of copies provided by the Commission's
regulations to: The Secretary, Federal Energy Regulatory Commission,
888 First Street, NE., Washington, DC 20426. An additional copy must be
sent to Director, Division of Hydropower Administration and Compliance,
Federal Energy Regulatory Commission, at the above-mentioned address. A
copy of any notice of intent, competing application or motion to
intervene must also be served upon each representative of the Applicant
specified in the particular application.
    t. Agency Comments--Federal, State, and local agencies are invited
to file comments on the described application. A copy of the
application may be obtained by agencies directly from the Applicant. If
an agency does not file comments within the time specified for filing
comments, it will be presumed to have no comments. One copy of an
agency's comments must also be sent to the Applicant's representatives.

Kimberly D. Bose,
Secretary.
 [FR Doc. E7-20288 Filed 10-15-07; 8:45 am]

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