Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 6555 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 75588 

(August 3, 2015), 80 FR 47546 (August 7, 2015) 

(Notice of Filing of File No. SR–FINRA–2015–026). 

4Rule 6710 generally defines a ‘‘TRACE-eligible 

security’’ as: (1) a debt security that is U.S. dollardenominated and issued by a U.S. or foreign private 

issuer (and, if a ‘‘restricted security’’ as defined in 

Securities Act Rule 144(a)(3), sold pursuant to 

Securities Act Rule 144A); or (2) a debt security that 

is U.S. dollar denominated and issued or 

guaranteed by an ‘‘Agency’’ as defined in Rule 

6710(k) or a ‘‘Government-Sponsored Enterprise’’ as 

defined in Rule 6710(n). 

5See Securities Exchange Act Release No. 76176 

(October 16, 2015), 80 FR 64039 (October 22, 2015) 

(Order Approving File No. SR–FINRA–2015–026). 

6 15 U.S.C. 78o-3(b)(6). 

7 15 U.S.C. 78o-3(b)(9). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and 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. FINRA has 

satisfied this requirement. 

Information Officer, Securities and 

Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington, 

DC 20549, or send an email to: PRA_

Mailbox@sec.gov. 

Dated: February 2, 2016. 

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02337 Filed 2–5–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77015; File No. SR–FINRA– 

2016–003] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Extend the 

Implementation Date of the ‘‘NoRemuneration’’ Indicator 

February 2, 2016. 

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 January 

27, 2016, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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 FINRA. 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 

FINRA is proposing to extend the 

implementation date of the NoRemuneration indicator to July 18, 2016. 

The proposed rule change would not 

make any changes to FINRA rules. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On July 20, 2015, FINRA filed a 

proposed rule change to amend FINRA 

Rule 6730 (Transaction Reporting), 

which governs the reporting of eligible 

transactions to its Trade Reporting and 

Compliance Engine (‘‘TRACE’’).3 Rule 

6730 sets forth the requirements that 

apply to firms when reporting 

transactions in TRACE-eligible 

securities,4 and provides the specific 

items of information that must be 

included in a TRACE trade report. 

Among other things, Rules 6730(c) and 

(d) require that firms report the 

commission (total dollar amount) 

separately on the TRACE trade report 

for agency transactions. FINRA then 

combines the dollar amount that is 

reported as the commission with the 

amount that is reported in the price 

field, and disseminates to the market 

this aggregate amount as the 

transaction’s price. For principal 

transactions, Rule 6730(d)(1) provides 

that firms must report a price that 

includes the mark-up/mark-down, and 

FINRA disseminates this price to the 

market. 

In SR–FINRA–2015–026, FINRA 

proposed to amend Rule 6730 to require 

that firms use a ‘‘No-Remuneration’’ 

indicator to identify those transactions 

for which a commission or mark-up/

mark-down is not reflected in a TRACE 

trade report. The Commission approved 

the proposal, on October 16, 2015.5 In 

its filing, FINRA represented that the 

implementation date of these 

amendments would be May 23, 2016. 

FINRA has since determined to extend 

the implementation date for this 

proposal to July 18, 2016 to provide 

members additional time to complete 

systems changes necessary to comply 

with SR–FINRA–2015–026. 

FINRA has filed the proposed rule 

change for immediate effectiveness. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,6 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest, and Section 15A(b)(9) of 

the Act,7 which requires that FINRA 

rules not impose any burden on 

competition that is not necessary or 

appropriate. 

FINRA believes that the extension of 

the implementation date until July 18, 

2016, is consistent with the Act in that 

it would provide members with 

additional time to complete the systems 

changes necessary to comply with SR– 

FINRA–2015–026. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA 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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

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 8 and Rule 19b– 

4(f)(6) thereunder.9


asabaliauskas on DSK5VPTVN1PROD with NOTICES
6556 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Member’’ means an individual or 

organization approved to exercise trading rights 

associated with a Trading Permit. Members are 

deemed ‘‘members’’ under the Exchange Act. See 

Exchange Rule 100. 

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 

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– 

FINRA–2016–003 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 

Number SR–FINRA–2016–003. 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 

office of FINRA. 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–FINRA– 

2016–003, and should be submitted on 

or before February 29, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02331 Filed 2–5–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77035; File No. SR–MIAX– 

2016–02] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Exchange Rule 301 

February 2, 2016. 

Pursuant to the provisions of 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 January 20, 2016, Miami 

International Securities Exchange LLC 

(‘‘MIAX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend Exchange Rule 301, Just and 

Equitable Principles of Trade, to add 

Interpretations and Policies .03 to Rule 

301 to state in the Exchange’s rules that 

the practice of unbundling an order is 

considered conduct inconsistent with 

just and equitable principles of trade. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.miaxoptions.com/filter/

wotitle/rule_filing, at MIAX’s principal 

office, 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 aspects 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 

Exchange Rule 301, Just and Equitable 

Principles of Trade, to add 

Interpretations and Policies .03 to Rule 

301 that states that the practice of 

unbundling an order is considered 

conduct inconsistent with just and 

equitable principles of trade. The 

proposal codifies existing Exchange 

procedures when dealing with the 

unlawful bundling of orders. 

The purpose of the proposed rule 

change is to amend Exchange Rule 301 

by adding a new Interpretations and 

Policies .03 to Rule 301 which will 

expressly prohibit the splitting-up of an 

order into smaller orders; a practice also 

known as unbundling, or trade 

shredding. More specifically, the 

Exchange is proposing to add language 

to its existing rules to prohibit 

Members 3 from splitting orders into 

multiple smaller orders for any purpose 

other than best execution. 

Unbundling, or trade shredding, is the 

practice of breaking up an order into 

multiple smaller orders for some 

purpose other than best execution of the 

order. The practice of unbundling has in 

the past been used for such purposes as 

improperly maximizing commissions 

and fees charged to customers, 

distorting trade data, or circumventing 

rules pertaining to maximum order size. 

In addition, the unbundling of a large 

order into several smaller orders could 

be done so as to affect the allocation of 

a trade among market participants 

pursuant to the allocation methodology 


asabaliauskas on DSK5VPTVN1PROD with NOTICES