11250 Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices 

12 17 CFR 200.30–3(a)(12). 

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)(6). 

5See 17 CFR 240.17Ad–15; Securities Exchange 

Act Release No. 30146 (January 10, 1992), 57 FR 

1082 (February 24, 1992) (adopting Rule 17Ad–15). 

6See, e.g., Securities Exchange Act Release No. 

33669 (February 23, 1994), 59 FR 10189 (March 3, 

1994) (SR–MSTC–93–13) (‘‘[t]his newly adopted 

Rule 17Ad-15 rule rendered [Midwest Securities 

Trust Company’s (‘‘MSTC’’)] Signature Distribution 

Program and Signature Guarantee Program obsolete. 

Therefore, to avoid costs that produce no benefits, 

MSTC eliminated its Signature Distribution and 

Signature Guarantee Programs and deleted MSTC 

Rule 5, Sections 1 and 2 which govern these 

programs’’). 

7See ‘‘Signature Guarantees: Preventing the 

Unauthorized Transfer of Securities,’’ http://

www.sec.gov/answers/sigguar.htm. 

8See Securities Exchange Act Release No. 34188 

(June 9, 1994), 59 FR 30820 (June 15, 1994) (SR– 

MSTC–93–13) (order approving the elimination of 

MSTC’s signature guarantee program stating that 

Rule 17Ad-15 rendered it obsolete); Securities 

Exchange Act Release No. 32590 (July 7, 1993), 58 

FR 37978 (July 14, 1993) (order approving SR– 

PHLX–92–39 eliminating the PHLX’s signature 

guarantee program in light of Rule 17Ad-15) (noting 

that ‘‘[b]y eliminating its signature guarantee 

program, PHLX will streamline the signature 

guarantee process. In place of the cumbersome 

signature card system, PHLX will require 

participation in a Rule 17Ad-15 Signature 

Guarantee Program’’). In 2006, the Philadelphia 

Stock Exchange, Inc. (currently Nasdaq OMX PHLX 

LLC) (‘‘PHLX’’) eliminated Rules 327—340 

regarding signature guarantees in their entirety from 

its rulebook, noting that they are ‘‘being deleted as 

obsolete because they refer to the delivery and 

settlement of securities, which is not done by the 

Exchange, but by registered clearing agencies.’’ 

Securities Exchange Act Release No. 54329 (August 

17, 2006), 71 FR 504538 (August 25, 2006) (SR– 

PHLX–2006–43); Securities Exchange Act Release 

No. 54538 (September 28, 2006), 71 FR 59184 

(October 6, 2006 (order approving SR–PHLX–2006– 

43). 

9See Securities Exchange Act Release Nos. 58375 

(August 18, 2008), 73 FR 49498 (August 21, 2008) 

(File No. 10–182) (In the Matter of the Application 

of the BATS Exchange, Inc. for Registration as a 

National Securities Exchange, Findings, Opinion, 

and Order of the Commission); 62716 (August 13, 

2010), 75 FR 51295 (August 19, 2010) (File No. 10– 

198) (In the Matter of the Application of the BATS 

Y-Exchange, Inc. for Registration as a National 

Securities Exchange, Findings, Opinion, and Order 

of the Commission). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–04188 Filed 2–27–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74359; File No. SR–BATS– 

2015–14] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Eliminate Rule 13.4, 

‘‘Assigning of Registered Securities in 

the Name of a Member or Member 

Organization’’ 

February 24, 2015. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on February 

12, 2015, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) 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 Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders it effective upon filing 

with the Commission. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange filed a proposal to 

eliminate Rule 13.4, ‘‘Assigning of 

Registered Securities in the Name of a 

Member or Member Organization.’’ 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.batstrading.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant 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 eliminate 

Rule 13.4, ‘‘Assigning of Registered 

Securities in the Name of a Member or 

Member Organization,’’ which permits 

the Exchange to establish a signature 

guarantee program. In sum, a signature 

guarantee program allows an investor 

who seeks to transfer or sell securities 

held in physical certificate form to have 

their signature on the certificate 

‘‘guaranteed.’’ Rule 13.4 permits 

Members to guarantee their signatures 

by authorizing one or more of their 

employees to assign registered securities 

in the Member’s name and to guarantee 

assignments of registered securities on 

behalf of the Member where the security 

had been signed by one of the partners 

of the Member or by one of the 

authorized officers of the Member by 

executing and filing with the Exchange 

a separate Power of Attorney, also 

known as a traditional signature card 

program. Transfer agents often insist 

that a signature be guaranteed before 

they accept the transaction because it 

limits their liability and losses if a 

signature turns out to be forged. 

Rule 17Ad–15 under the Act permits 

transfer agents to reject signature 

guarantees from eligible guarantor 

institutions that are not part of a 

signature guarantee program.5 The rule 

encouraged a movement away from the 

traditional signature card programs 

administered by the exchanges towards 

signature guarantee programs that use a 

medallion imprint or stamp which 

evidences their participation in the 

program and is an acceptable signature 

guarantee (‘‘Medallion Signature 

Guarantee Program’’).6 The Commission 

has also noted that: 

[a]n investor can obtain a signature 

guarantee from a financial institution—such 

as a commercial bank, savings bank, credit 

union, or broker dealer—that participates in 

one of the Medallion signature guarantee 

programs. . . . If a financial institution is not 

a member of a recognized Medallion 

Signature Guarantee Program, it would not be 

able to provide signature guarantees. Also, if 

[an investor is] not a customer of a 

participating financial institution, it is likely 

the financial institution will not guarantee 

[the investor’s] signature. Therefore, the best 

source of a Medallion Guarantee would be a 

bank, savings and loan association, brokerage 

firm, or credit union with which [the investor 

does] business.7

In response to Rule 17Ad-15, certain 

exchanges have decommissioned or 

amended their rules to no longer 

provide for traditional signature card 

program.8 While the Exchange adopted 

Rule 13.4 as part of its Form 1 exchange 

application,9 it has never offered, and 

does not now intend to offer, a signature 

guarantee service. The move towards 

Medallion Signature Guarantee 

Programs has also rendered traditional 

card programs as provided for under 

Exchange Rule 13.4 obsolete. Therefore, 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices 11251 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12See Securities Exchange Act Release No. 34188 

(June 9, 1994), 59 FR 30820 (June 15, 1994) (SR– 

MSTC–93–13) (order approving the elimination of 

MSTC’s signature guarantee program stating that 

Rule 17Ad–15 rendered it obsolete); Securities 

Exchange Act Release No. 32590 (July 7, 1993), 58 

FR 37978 (July 14, 1993) (SR–PHLX–92–39) (order 

approving SR–PHLX–92–39 eliminating the PHLX’s 

signature guarantee program in light of Rule 17Ad– 

15). 

13 15 U.S.C. 78f(b)(5). 

14See Securities Exchange Act Release No. 34188 

(June 9, 1994), 59 FR 30820 (June 15, 1994) (SR– 

MSTC–93–13) (order approving the elimination of 

MSTC’s signature guarantee program stating that 

Rule 17Ad–15 rendered it obsolete); Securities 

Exchange Act Release No. 32590 (July 7, 1993), 58 

FR 37978 (July 14, 1993) (SR–PHLX–92–39) (order 

approving SR–PHLX–92–39 eliminating the PHLX’s 

signature guarantee program in light of Rule 17Ad– 

15). 

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

16 17 CFR 240.19b–4(f)(6). 17 17 CFR 200.30–3(a)(12). 

the Exchange proposes to eliminate Rule 

13.4. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 10 and furthers 

the objectives of Section 6(b)(5) of the 

Act,11 in that it is designed to promote 

just and equitable principles of trade, 

remove impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest by eliminating unnecessary 

confusion with respect to the 

Exchange’s rules. Rule 17Ad–15 

encouraged a movement away from the 

traditional signature card programs 

administered by the exchanges towards 

certain Medallion Signature Guarantee 

Programs. In response, certain 

exchanges have decommissioned or 

amended their rules to no longer 

provide for a traditional signature card 

program.12 The Exchange has never 

offered, and does not now intend to 

offer, a signature guarantee service. 

Also, the move towards Medallion 

Signature Guarantee Programs has 

rendered traditional card programs as 

provided for under Exchange Rule 13.4 

obsolete. Therefore, the Exchange 

believes eliminating Rule 13.4 would 

clarify the Exchange’s rules by 

eliminating rules that account for 

services the Exchange does not provide. 

The Exchange also believes the 

elimination of unnecessary and obsolete 

rules removes impediments to the 

perfection of the mechanisms for a free 

and open market system consistent with 

the requirements of Section 6(b)(5) of 

the Act.13

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition. 

Rule 17Ad–15 encouraged a movement 

away from the traditional signature card 

programs administered by the 

exchanges towards certain Medallion 

Signature Guarantee Programs. In 

response, certain exchanges have 

decommissioned or amended their rules 

to no longer provide for a traditional 

signature card program.14 An investor 

may still obtain a signature guarantee 

from a financial institution that 

participates in one of the Medallion 

Signature Guarantee Programs. The 

Exchange has never offered, and does 

not intend to offer, a signature guarantee 

service. Also, the move towards 

Medallion Signature Guarantee 

Programs has rendered traditional card 

programs as provided for under 

Exchange Rule 13.4 obsolete. Therefore, 

the Exchange believes eliminating Rule 

13.4 would not impose any burden on 

competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 15 and paragraph 

of Rule 19b–4(f)(6) thereunder.16

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 email to rule-comments@

sec.gov. Please include File No. SR– 

BATS–2015–14 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File No. 

SR–BATS–2015–14. 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 No. SR–BATS– 

2015–14 and should be submitted on or 

before March 23, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–04182 Filed 2–27–15; 8:45 am] 

BILLING CODE 8011–01–P 


asabaliauskas on DSK5VPTVN1PROD with NOTICES