60 Day Notice

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Federal Register / Vol. 84, No. 173 / Friday, September 6, 2019 / Notices
business under the name LCH SA (‘‘LCH
SA’’), filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act (‘‘Act’’) 1 and
Rule 19b–4 thereunder,2 a proposed rule
change to amend its rules to (i)
introduce clearing of new Markit iTraxx
Subordinated Financials Index CDS and
the Related Single Name CDS
Constituents (together, ‘‘Subordinated
Financials’’); (ii) incorporate changes to
the Wrong Way Risk margin as
recommended by a risk model
validation; and (iii) modify the Default
Fund Additional Margin (SR–LCH SA–
2019–005). The proposed rule change
was published for comment in the
Federal Register on August 9, 2019.3 To
date, the Commission has not received
comments on the proposed rule change.
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day from the
publication of notice of filing of this
proposed rule change is September 23,
2019.
The Commission is extending the 45day time period for Commission action
on the proposed rule change, in which
LCH SA would introduce clearing of
Subordinated Financials and make the
other changes noted above. The
Commission finds it is appropriate to
designate a longer period within which
to take action on the proposed rule
change so that it has sufficient time to
consider LCH SA’s proposed rule
change.
Accordingly, pursuant to Section
19(b)(2) 5 of the Act, and for the reasons
discussed above, the Commission
designates November 7, 2019, as the
date by which the Commission should
either approve or disapprove, or
institute proceedings to determine
whether to disapprove, the proposed
rule change (File No. SR–LCH SA–
2019–005).
1 15

U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 86576
(Aug. 6, 2019), 84 FR 39386 (Aug. 9, 2019) (SR–LCH
SA–2019–005).
4 15 U.S.C. 78s(b)(2).
5 15 U.S.C. 78s(b)(2).
2 17

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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–19216 Filed 9–5–19; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
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:
Rules 901, 902, 903(a), 904, 905, 906, 907,
and 908 of Regulation SBSR, SEC File No.
270–629, OMB Control No. 3235–0718

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rules 901, 902, 903(a),
904, 905, 906, 907, and 908 of
Regulation SBSR (17 CFR 242.901, 902,
903(a), 904, 905, 906, 907, and 908),
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Regulation SBSR consists of ten rules,
Rules 900 to 909 under the Exchange
Act. Regulation SBSR provides
generally for the reporting of securitybased swap information to a registered
security-based swap data repository
(‘‘registered SDRs’’) or the Commission,
and the public dissemination of
security-based swap transaction,
volume, and pricing information by
registered SDRs. Rule 901 specifies,
with respect to each reportable event
pertaining to covered transactions, who
is required to report, what data must be
reported, when it must be reported,
where it must be reported, and how it
must be reported. Rule 901(a)(1) of
Regulation SBSR requires a platform to
report to a registered security-based
swap data repository (‘‘registered SDR’’)
a security-based swap executed on such
platform that will be submitted to
clearing. Rule 901(a)(2)(i) of Regulation
SBSR requires a registered clearing
agency to report to a registered SDR any
security-based swap to which it is a
counterparty. Rules 902 to 909 of
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CFR 200.30–3(a)(31).

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Regulation SBSR provide additional
details as to how such reporting and
public dissemination is to occur.
The Commission estimates that a total
of approximately 4900 entities will be
impacted by Regulation SBSR,
including registered SDRs, registered
security-based swap dealers, registered
major securities-based swap
participants, registered clearing
agencies, platforms, and reporting sides
and other market participants. The
Commission estimates that the total
reporting burden for Regulation SBSR,
for all respondents, is approximately
538,257.60 hours initially (which
equates to approximately 179,419.20
hours per year when annualized over
three years), with a total ongoing burden
thereafter of approximately 1,887,021.07
hours per year. Thus, the aggregate
yearly burden is approximately
2,066,441 hours (2,066,440.27 rounded
up). In addition, the Commission
estimates that the total cost for all of
Regulation SBSR for all respondents is
approximately $21,264,300 initially
(which equates to approximately
$7,088,100 per year when annualized
over three years), with a total ongoing
cost thereafter of approximately
$80,331,371 per year. Thus, the
aggregate annual cost for all respondents
is approximately $87,419,472
($87,419,471.30 rounded up). A detailed
break-down of the burdens applicable to
each type of entity is provided in the
supporting statement.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
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, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,

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Federal Register / Vol. 84, No. 173 / Friday, September 6, 2019 / Notices
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.

DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: September 3, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–19241 Filed 9–5–19; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION

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

[Release No. 34–86842; File No. SR–
NASDAQ–2019–069]

Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify the
Manner in Which It Calculates Volume,
Liquidity and Quoting Thresholds
Applicable To Billing on the Exchange
in Relation to a Systems Issue
Experienced by SIAC on August 12,
2019
August 30, 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 August
28, 2019, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘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.

jspears on DSK3GMQ082PROD with NOTICES

I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify the
manner in which it calculates volume,
liquidity and quoting thresholds
applicable to billing on the Exchange in
relation to a systems issue experienced
by SIAC on August 12, 2019, which
impacted trade and quote dissemination
across all markets.
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
1 15
2 17

U.S.C. 78s(b)(1).
CFR 240.19b–4.

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1. Purpose
The Exchange proposes to modify the
manner in which it calculates volume,
liquidity and quoting thresholds
applicable to billing on the Exchange in
relation to the August 12, 2019 systems
issue, which impacted trade and quote
dissemination across all markets.3
Specifically, on August 12, 2019, SIAC 4
determined to fail over to back up
servers after receiving indications that
its primary systems had become
unstable, causing connectivity
disruptions. The fail over to secondary
systems failed to cure the problem,
resulting in market-wide issues with the
Consolidated Quote System and the
Consolidated Tape System, including
gaps in the intra-day trades, quotes, and
other messages that were attempted to
be sent to it. Consequently, the accuracy
of the transaction and quotation data for
August 12, 2019 is unknown.
As a result, the Exchange is unable to
accurately calculate member transaction
fees and credits, including calculations
for the Exchange’s incentive programs,
since several of the Exchange’s
transaction fees and credits are based on
trading, quoting and liquidity
thresholds that members must satisfy in
order to qualify for the particular rates
(e.g., percentage of Consolidated
Volume, Average Daily Volume, and
time at the NBBO). The Exchange
therefore proposes to exclude August
12, 2019 from all tier calculations
described in Equity 7, Sections 114 5
and 118 6 in order to reasonably ensure
that a member that would otherwise
qualify for a particular threshold during
August 2019, and the corresponding
3 See https://www.ctaplan.com/
alerts#110000144324.
4 SIAC is the operator of the Consolidated Quote
System and Consolidated Tape System, which
disseminate real-time trade and quote information
in New York Stock Exchange LLC (Network A) and
Bats, NYSE Arca, NYSE American and other
regional exchange (Network B) listed securities.
5 Equity 7, Section 114 provides the Exchange’s
market quality incentive programs.
6 Equity 7, Section 118 provides the fees and
credits for use of the Exchange’s order execution
and routing services.

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transaction rate and/or incentive, would
not be negatively impacted by the
August 12, 2019 systems issue.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Sections 6(b)(4) and (5) of
the Act,8 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among its members, issuers and other
persons using its facilities and does not
unfairly discriminate between
customers, issuers, brokers or dealers,
and 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. In this regard, because
the accuracy of the transaction and
quotation data disseminated by SIAC for
August 12, 2019 is unknown, the
Exchange believes that it is reasonable
to exclude August 12, 2019 from all tier
calculations described in Equity 7,
Sections 114 and 118, which would
reasonably ensure that a member’s
qualification for various pricing
programs would be based on the data
that the Exchange believes is accurate.
The Exchange also believes that the
proposed rule change is reasonable
because the SIAC systems issue that
caused inaccurate transaction and
quotation data was not within Nasdaq’s
control nor can Nasdaq correct or
otherwise remediate the issue. Including
August 12, 2019 transaction and
quotation data for purposes of tier
calculations described in Equity 7,
Sections 114 and 118 could result in
inaccurate determinations for member
rates based on the extent to which their
transactions and quotations were
impacted by the August 12, 2019 event
in comparison to the overall
inaccuracies in the data provided by
SIAC for that date. Consequently, the
Exchange believes that the proposed
change is equitable and not unfairly
discriminatory because it would result
in all market participants on the
Exchange being treated equally by
excluding August 12, 2019 from all tier
calculations described in Equity 7,
Sections 114 and 118. Last, excluding
August 12, 2019 from all tier
calculations described in Equity 7,
Sections 114 and 118 is in the public
interest because it will provide
Exchange members with the closest
approximation of the fees and credits
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U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).

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