64414 Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15 15 U.S.C. 78s(b)(2)(B). 16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 83454 

(June 15, 2018), 83 FR 28874 (‘‘Notice’’). 

4See Securities Exchange Act Release No. 83749, 

83 FR 38393 (August 6, 2018). The Commission 

designated September 19, 2018, as the date by 

which the Commission shall approve or disapprove, 

or institute proceedings to determine whether to 

disapprove, the proposed rule change. 

5 15 U.S.C. 78s(b)(2)(B). 

6See Securities Exchange Act Release No. 84183, 

83 FR 48350 (September 24, 2018) (‘‘Order 

Instituting Proceedings’’). 

7 15 U.S.C. 78s(b)(2). 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 11 and Rule 

19b–4(f)(6) thereunder.12 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),14 the 

Commission may 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 so that the proposal may 

become operative immediately upon 

filing. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 15 of the Act 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 rule-comments@

sec.gov. Please include File Number SR– 

NYSE–2018–59 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–NYSE–2018–59. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSE–2018–59 and should 

be submitted on or before January 4, 

2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27077 Filed 12–13–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84766; File No. SR–NYSE– 

2018–28] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Designation of Longer Period for 

Commission Action on Proceedings To 

Determine Whether To Approve or 

Disapprove a Proposed Rule To Make 

Permanent the Retail Liquidity 

Program Pilot, Which is Set To Expire 

on December 31, 2018 

December 10, 2018. 

On June 4, 2018, New York Stock 

Exchange LLC (‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 and Rule 19b–4 thereunder,2 a 

proposed rule change to make 

permanent the Exchange’s Retail 

Liquidity Program Pilot (‘‘Program’’). 

The proposed rule change was 

published for comment in the Federal 

Register on June 21, 2018.3 On July 31, 

2018, the Commission designated a 

longer period within which to approve 

the proposed rule change, disapprove 

the proposed rule change, or institute 

proceedings to determine whether to 

disapprove the proposed rule change.4

On September 18, 2018, the 

Commission instituted proceedings 

under Section 19(b)(2)(B) of the Act 5 to 

determine whether to approve or 

disapprove the proposed rule change.6

The Commission received no comment 

letters on the proposed rule change. 

Section 19(b)(2) of the Act 7 provides 

that, after initiating proceedings, the 

Commission shall issue an order 

approving or disapproving the proposed 

rule change not later than 180 days after 

the date of publication of notice of filing 

of the proposed rule change. The 

Commission may, however, extend the 

period for issuing an order approving or 

disapproving the proposed rule change 

by not more than 60 days if the 

Commission determines that a longer 

period is appropriate and publishes the 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 64415 

8See supra note 3. 

9The Commission notes that on November 30, 

2018, the Exchange has filed a separate proposed 

rule change to extend the pilot period, which is 

currently set to expire on December 31, 2018, until 

June 30, 2019. See SR–NYSE–2018–59. 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(57). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(4). 

5Available at http://www.dtcc.com/legal/rulesand-procedures. Capitalized terms used herein and 

not otherwise defined shall have the meaning 

assigned to such terms in the Rules. 

6Earlier this year, FICC implemented changes to 

the fee structure of GSD in connection with this 

initiative. See Securities Exchange Act Release No. 

83401 (June 8, 2018), 83 FR 27812 (June 14, 2018) 

(SR–FICC–2018–003). FICC’s affiliates, The 

Depository Trust Company and National Securities 

Clearing Corporation, are also proposing changes to 

their respective fees. 

7Supra note 5. 

8See Securities Exchange Act Release No. 53061 

(January 5, 2006), 71 FR 2078 (January 12, 2006) 

(SR–FICC–2005–20). 

9See Broker Schedule and Dealer Schedule, 

supra note 5. 

10Where Clearing Members previously submitted 

trades to FICC either once or multiple times during 

the day in batches (referred to as ‘‘batch 

submission’’), interactive messaging through RTTM 

Web involves the submission of trades to FICC on 

a real-time basis and allows Clearing Members to, 

for example, receive trade status messages and 

cancel or modify trades. 

reasons for such determination. The 

proposed rule change was published for 

notice and comment in the Federal 

Register on June 21, 2018.8 December 

18, 2018 is 180 days from that date, and 

February 16, 2019 is 240 days from that 

date. The Commission finds it 

appropriate to designate a longer period 

within which to issue an order 

approving or disapproving the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change.9

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the 

Act,10 designates February 16, 2019 as 

the date by which the Commission 

should either approve or disapprove the 

proposed rule change (File No. SR– 

NYSE–2018–28). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27076 Filed 12–13–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84769; File No. SR–FICC– 

2018–012] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Remove 

Certain Fees From the MortgageBacked Securities Division Clearing 

Rules and Electronic Pool Notification 

Rules 

December 10, 2018. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

26, 2018, Fixed Income Clearing 

Corporation (‘‘FICC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by the clearing agency. FICC filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(2) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change consists of 

modifications to the FICC’s MortgageBacked Securities Division (‘‘MBSD’’) 

Clearing Rules (‘‘Clearing Rules’’) and 

the MBSD electronic pool notification 

(‘‘EPN’’) Rules (‘‘EPN Rules,’’ and 

together with the Clearing Rules, 

‘‘Rules’’) to remove certain fees, as 

described below.5

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

FICC recently completed a strategic 

review of its revenue and pricing 

strategy. The goal of the review was to 

enhance pricing for the Clearing 

Members and EPN Users (collectively 

referred to herein as ‘‘participants’’) of 

MBSD and participants of FICC’s 

Government Securities Division 

(‘‘GSD’’).6 This effort was intended to 

align fees for services with the cost of 

providing those services, reduce the 

complexity of fee structures, and 

increase the overall transparency of the 

fees charged for services. 

As a result of this review, FICC is 

proposing to revise the Rules to remove 

the following fees: (1) MBSD’s 

Surcharge for Submission Method 

(‘‘Surcharge’’), which is a percent 

surcharge on post discount trade 

recording fees as recorded on a Clearing 

Member’s monthly bill that is charged to 

Clearing Members that submit trade data 

either on a single batch or multi-batch 

method; (2) MBSD’s account 

maintenance fee ($50 per month for 

each trade assignment account); and (3) 

fees for late payments of EPN bills. 

As described further below, FICC has 

determined that the Surcharge and the 

fees for late payment of EPN bills are no 

longer necessary to encourage 

alternatives to batch processing or 

prompt payment of bills, respectively. 

As also described below, FICC is 

proposing to remove MBSD’s account 

maintenance fee for trade assignment 

accounts does not offer trade assignment 

accounts. 

Each of these proposed changes is 

described below. 

(i) Surcharge for Submission Method 

FICC is proposing to remove the 

Surcharge from the Clearing Rules’ 

Schedule of Charges for the Broker 

Account Group (‘‘Broker Schedule’’) 

and the Schedule of Charges for the 

Dealer Account Group (‘‘Dealer 

Schedule’’).7

In 2006, FICC implemented the 

Surcharge to be imposed on Clearing 

Members that are either single batch 

submitters or multi-batch submitters of 

transaction data.8 The surcharge is (1) 

fifty percent (with a minimum of $500) 

on the post discount trade recording 

fees, as recorded on the monthly bill of 

single batch submitters, and (2) twenty 

percent (with a minimum of $500) on 

the post discount trade recording fees, 

as recorded on the monthly bill of 

multi-batch submitters.9 The Surcharge 

was introduced to encourage Clearing 

Members to submit trades using the 

interactive messaging submission 

method through FICC’s Real-Time Trade 

Matching (‘‘RTTM’’) Web service, 

encourage submission of transaction 

data on a timely basis, and cover the 

costs of batch processing.10 The 

rationale for encouraging the use of 

interactive messaging through RTTM 

Web included mitigating (1) the risk 

associated with the longer time to 

complete trade comparison and 

confirmation in batch processing; and 


amozie on DSK3GDR082PROD with NOTICES1