UNITED STATES 


SECURITIES AND EXCHANGE COMMISSION 


WASHINGTON , D.C . 20549 


OFFICE OF COMPLIANCE 

INSPECTIONS AND January 11, 201 6 EXAMINATIONS 

Dear Chief Regulatory Officer: 

The Office of Market Oversight ("Market Oversight") within the Office of Compliance 

Inspections and Examinations ("OCIE") is pleased to present its examination priorities for Fiscal 

Year 2016. 

1 As you know, Market Oversight conducts examinations ofthe national securities 

exchanges and other self-regulatory organizations pursuant to Sections 17(a)(l) and 17(b) ofthe 

Securities Exchange Act of 1934 ("Exchange Act") and Rule 17a-1 thereunder. 

Each year, as part of its risk-based examination program, Market Oversight establishes 

examination priorities to guide the selection ofthe programs and areas it will examine in the 

upcoming fiscal year. Market Oversight develops its examination priorities in consultation with 

the Commissioners, staff from the Commission's policy-making divisions, and staff from other 

Commission offices and divisions. 

Market Oversight's examination priorities for Fiscal Year 201 6 include the following: 

• 	 Examination of certain exchanges' compliance with undertakings imposed by applicable 

Commission orders. 

• 	 Examination of certain exchanges' regulatory practices. For example, potential 

examinations in this area may include reviews of an exchange's performance of 

regulatory functions, outsourcing ofregulatory functions, internal controls over 

regulatory programs, funding of regulatory functions, and the governance and oversight 

over regulatory functions. 

• 	 Examination of options exchanges' listing programs, including assessing compliance 

with listing requirements and evaluating the policies and procedures regarding listing 

programs. 

• 	 Examination of certain options exchanges' opening processes for adherence to the rules 

and procedures governing openings. 

This document was prepared by SEC staff, and the views expressed herein are those of OCIE. The 

Commission has expressed no view on this document's contents. It is not legal advice; it is not intended to, 

does not, and may not be relied upon to create any rights, substantive or procedural, enforceable at law by 

any party in any matter civil or criminal. 
• 	 Examination of certain equities exchanges' listing programs. For example, potential 

examinations in this area may include reviews ofthe appellate process for delisting 

decisions. 

• 	 In coordination with OCIE's Technology Controls Program ("TCP"), examination of 

certain exchanges' compliance with Regulation Systems Compliance and Integrity 

("SCI"). 

• 	 In coordination with TCP, examination of certain exchanges' compliance with 


obligations under Section 31 ofthe Exchange Act and Rule 31 thereunder. 


The preceding list ofMarket Oversight examination priorities is not static and remains subject to 

change due to unexpected events in the market or other factors. Furthermore, subject to the 

availability of resources and other factors, Market Oversight also may establish additional 

examination priorities. 

Market Oversight looks forward to working with you and your staff during the upcoming year to 

complete these examination priorities. Ifyou have any questions concerning the matters 

discussed in this letter, please contact me at (202) 551-4981. 

Sincerely, 

l 

, John Polise 

National Associate Director 

1 'j OCIE Office of Market Oversight 

2