Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices 5793 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 76276 

(October 27, 2015), 80 FR 67454. 

4See Securities Exchange Act Release No. 76669, 

80 FR 79640 (December 22, 2015). 

5See Securities Exchange Act Release No. 56148 

(July 26, 2007), 72 FR 42146 (August 1, 2007) (File 

No. 4–544) (Notice of Filing and Order Approving 

and Declaring Effective a Plan for the Allocation of 

Regulatory Responsibilities). In 2007, the NASD, 

NYSE, the Exchange and NYSE Regulation also 

entered into a Regulatory Services Agreement 

(‘‘RSA’’), whereby FINRA was retained to perform 

certain regulatory services for non-common rules. 

6See Securities Exchange Act Release No. 60409 

(July 30, 2009), 74 FR 39353 (August 6, 2009) (File 

No. 4–587). 

7See Securities Exchange Act Release No. 54646 

(September 12, 2008), 73 FR 54646 (September 22, 

2008) (File No. 4–566). See also Securities Exchange 

Act Release No. 58806 (October 17, 2008), 73 FR 

63216 (October 23, 2008) (File No. 4–566). 

0001, telephone: 301–415–3306; email: 

Lois.James@nrc.gov. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that the NRC has issued 

renewed facility operating license Nos. 

NPF–72 and NPF–77 to Exelon 

Generation Company, LLC, the operator 

of Braidwood Station. Renewed facility 

operating license Nos. NPF–72 and 

NPF–77 authorizes the operation of 

Braidwood Units 1 and 2 at reactor core 

power levels not in excess of 3645 

megawatts thermal each, in accordance 

with the provisions of the Braidwood, 

Units 1 and 2 renewed licenses and 

technical specifications. The NRC’s 

ROD that supports the decision to renew 

facility operating license Nos. NPF–72 

and NPF–77 is available in ADAMS 

under Accession No. ML15322A317. 

As discussed in the ROD and the final 

supplemental environmental impact 

statement (FSEIS) for Braidwood 

Station, Supplement 55 to NUREG– 

1437, ‘‘Generic Environmental Impact 

Statement for License Renewal of 

Nuclear Plants Regarding Braidwood 

Station, Units 1 and 2,’’ issued in 

November 2015 (ADAMS Accession No. 

ML15314A814), the NRC considered a 

range of reasonable alternatives that 

included new nuclear generation, coalintegrated gasification combined cycle, 

natural gas combined-cycle (NGCC), 

combination (NGCC, wind, and solar 

generation), replacement power, and the 

no-action alternative. The ROD and 

FSEIS document the NRC’s 

determination that the adverse 

environmental impacts of license 

renewal for Braidwood are not so great 

that preserving the option of license 

renewal for energy planning decision 

makers would be unreasonable. 

Braidwood Station, Units 1 and 2, has 

two pressurized water reactors and is 

located in Will County, Illinois. The 

application for the renewed licenses, 

‘‘License Renewal Application, Byron 

and Braidwood Stations, Units 1 and 2,’’ 

dated May 29, 2013 (ADAMS Accession 

Nos. ML13155A420 and 

ML13155A421), as supplemented by 

letters dated through April 13, 2015, 

with respect to Braidwood Station, 

complied with the standards and 

requirements of the Atomic Energy Act 

of 1954, as amended (AEA) and the 

NRC’s regulations in Chapter I of title 10 

of the Code of Federal Regulations. The 

NRC has made appropriate findings, 

which are set forth in each of the 

licenses, as required by the AEA and its 

regulations. A public notice of the 

proposed issuance of the renewed 

licenses and an opportunity for a 

hearing was published in the Federal 

Register on July 24, 2013 (78 FR 44603). 

For further details with respect to this 

action, see: (1) Exelon Generation 

Company, LLC’s (Exelon) license 

renewal application for Byron Station, 

Units 1 and 2, and Braidwood Station, 

Units 1 and 2, dated May 29, 2013, as 

supplemented by letters dated through 

April 13, 2015; (2) the NRC’s safety 

evaluation report dated July 2015 

(ADAMS Accession No. ML15182A051); 

(3) the NRC’s final environmental 

impact statement (NUREG–1437, 

Supplement 55), for Braidwood, Units 1 

and 2, published in November 2015; 

and (4) the NRC’s ROD. 

Dated at Rockville, Maryland, this 27 day 

of January 2016. 

For the Nuclear Regulatory Commission, 

Christopher G. Miller, 

Director, Division of License Renewal, Office 

of Nuclear Reactor Regulation. 

[FR Doc. 2016–02070 Filed 2–2–16; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–76982; File No. SR– 

NYSEMKT–2015–80] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Order Approving a 

Proposed Rule Change Deleting Rule 

410B—Equities Governing Reporting 

Requirements for Off-Exchange 

Transactions 

January 28, 2016. 

I. Introduction 

On October 16, 2015, NYSE MKT LLC 

(the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b-4 thereunder,2 a proposed rule 

change to delete Rule 410B—Equities 

governing reporting requirements for 

off-Exchange transactions. The proposed 

rule change was published for comment 

in the Federal Register on November 2, 

2015.3 The Commission received no 

comment letters on the proposed rule 

change. On December 16, 2015, 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 approve or 

disapprove the proposed rule change.4

The Commission is approving the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to delete Rule 

410B—Equities (‘‘Rule 410B’’), which 

sets forth certain regulatory reporting 

requirements for member or member 

organizations effecting off-Exchange 

transactions in Exchange listed 

securities that are not reported to the 

Consolidated Tape, and to make 

conforming amendments to Rule 476A 

to delete a reference to Rule 410B. The 

Exchange represents that Rule 410B is 

no longer necessary in light of changes 

in trade reporting and regulatory 

requirements that have been put in 

place since the Exchange adopted Rule 

410B. 

Changes to Regulatory Landscape 

On July 30, 2007, the National 

Association of Securities Dealers, Inc. 

(‘‘NASD’’), New York Stock Exchange 

LLC (‘‘NYSE’’), and NYSE Regulation, 

Inc. (‘‘NYSE Regulation’’) consolidated 

their member-firm regulation operations 

to create the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

and entered into a plan to allocate to 

FINRA regulatory responsibility for 

common rules and common members 

(‘‘17d–2 Agreement’’).5 The Exchange 

was added as a party to the 17d-2 

Agreement in 2009.6

In 2008, the Exchange, NASD, NYSE, 

and NYSE Regulation also entered into 

a plan to allocate to FINRA regulatory 

responsibility, over exchange members 

that are also FINRA members, for 

surveillance, investigation, and 

enforcement of insider trading with 

respect to NYSE- and MKT-listed stocks, 

among others, irrespective of where the 

relevant trading occurred (the ‘‘Insider 

Trading Plan’’).7 On June 14, 2010, 

FINRA was retained to perform the 

residual market surveillance and 

enforcement functions that had, up to 

that point, been performed by NYSE 

mstockstill on DSK4VPTVN1PROD with NOTICES

5794 Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices 

8See Securities Exchange Act Release No. 62355 

(June 22, 2010), 75 FR 36729 (June 28, 2010) (SR– 

NYSE–2010–46); Securities Exchange Act Release 

No. 62354 (June 22, 2010), 75 FR 36730 (June 28, 

2010) (SR–NYSEAmex–2010–57). NYSE Regulation 

performed the regulatory functions of NYSE MKT 

pursuant to an intercompany RSA. 

9See Securities Exchange Act Release No. 63750 

(January 21, 2011), 76 FR 4948 (January 27, 2011) 

(File No. 4–566). 

10See Securities Exchange Act Release No. 39729 

(March 6, 1998), 63 FR 12559 (March 13, 1998) (SR– 

NASD–97–56). 

11See Securities Exchange Act Release No. 63311 

(November 12, 2010), 75 FR 70757 (November 18, 

2010) (SR–FINRA–2010–044). See also 17 CFR 

242.600(b)(47). 

12See Securities Exchange Act Release No. 65524 

(October 7, 2011), 76 FR 64151 (October 17, 2011) 

(SR–NYSEAmex–2011–74). 

13As defined in Rule 600(b)(47) of Regulation 

NMS, 17 CFR 242.600(b)(47). 

14See FINRA Rule 6110. See generally FINRA 

Rule 6300A and 7200A Series (FINRA/Nasdaq TRF) 

and 6300B and 7200B Series (FINRA/NYSE TRF). 

15See FINRA Rules 6300A & 6300B. 

16See Rule 7230B. 

17See Trade Reporting Frequently Asked 

Questions, Section 701, Q/A701.1, available at 

http://www.finra.org/industry/trade-reporting-faq. 

18According to the Exchange, Rule 410B Weekly 

Reports submitted to the SEC in July and August 

2015 reveal that only five firms, all also FINRA 

members, accounted for all of the Rule 410B trading 

activity. The Exchange further represents that the 

list of firms that have in the past submitted Rule 

410B reports does not include any non-FINRA 

members. 

19The Exchange represents that these nine nonFINRA member firms do not have any public 

customers and are also members of Nasdaq as well 

as NYSE. 

20See 17 CFR 240.17a–3, 17 CFR 240.17a–4 & 

Rule 440—Equities. 

21 15 U.S.C. 78f. 

22 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

23 15 U.S.C. 78f(b)(5). 

Regulation.8 In January 2011, the SEC 

approved an amendment to the Insider 

Trading Plan whereby FINRA also 

assumed responsibility for performing 

the insider-trading-related market 

surveillance and enforcement functions 

previously conducted by NYSE 

Regulation for its U.S. equities and 

options markets.9

Changes in Trade Reporting and 

Regulatory Reporting 

In 1998, FINRA (then the NASD) 

established the Order Audit Trail 

System (OATS), as an integrated audit 

trail of order, quote, and trade 

information for OTC equity securities 

and equity securities listed and traded 

on The Nasdaq Stock Market, Inc. 

(‘‘Nasdaq’’).10 In 2010, FINRA Rules 

7410 through 7470 (the ‘‘OATS Rules’’) 

were amended to extend the recording 

and reporting requirements to all NMS 

stocks, as that term is defined in Rule 

600(b)(47) of Regulation NMS,11

including NYSE- and MKT-listed 

securities. The Exchange adopted the 

OATS Rules in 2011.12 The Exchange 

states that FINRA may use the 

information it collects pursuant to the 

OATS Rules to perform its regulatory 

functions. 

According to the Exchange, Rule 410B 

also predates the establishment of a 

FINRA Trade Reporting Facility 

(‘‘TRF’’). FINRA Rule 6110 requires 

FINRA members to report transactions 

in NMS stocks 13 effected ‘‘otherwise 

than on or through a national securities 

exchange.’’ 14 Pursuant to FINRA Rules 

6310A and 6310B, FINRA members may 

use either the FINRA/NYSE TRF or 

FINRA/Nasdaq TRF to report such offExchange transactions.15 FINRA 

members using these TRFs to report offExchange transactions are in turn 

subject to FINRA Rule 7230B, which, 

the Exchange states, imposes 

transaction-information reporting 

requirements similar to Rule 410B.16 As 

a result, the Exchange represents that 

dual members of both the Exchange and 

FINRA must report off-Exchange 

transactions to a TRF and submit 

substantially similar reports to the 

Exchange and FINRA. 

Proposed Rule Change 

The Exchange proposes to delete Rule 

410B in its entirety. The Exchange 

represents that, since 2010, surveillance 

and enforcement responsibilities across 

markets have been consolidated at 

FINRA, which conducts cross-market 

surveillances on the Exchange’s behalf 

utilizing various data sources, including 

extensive trade and other information 

that FINRA collects pursuant to its 

rules. This trade information includes 

reports of off-exchange transactions. 

The Exchange represents that all of its 

member organizations, with only nine 

exceptions, are members of FINRA and, 

as such, must report all off-exchange 

transactions to FINRA, including 

transactions away from the Exchange 

that are not reported to the Consolidated 

Tape. The Exchange further represents 

that this information is essentially 

duplicative of the Rule 410B reports the 

Exchange currently supplies to FINRA. 

The Exchange notes that one exception 

would be transactions in dually listed 

securities executed on and reported to a 

foreign securities exchange, which are 

not required to be reported because such 

trades are executed ‘‘on or through an 

exchange.’’ 17 The Exchange represents 

that it believes such trades pose little 

regulatory risk and, given that no other 

exchange has a rule comparable to Rule 

410B, notes that such trades are also not 

being reported to other equities 

exchanges. Finally, the Exchange 

represents that only a handful of firms 

currently account for all of the Rule 

410B activity, all of whom are also 

FINRA members.18 The Exchange 

believes that Rule 410B is thus no 

longer necessary, and deleting it would 

eliminate essentially duplicative 

reporting of off-Exchange transactions 

by dual members. 

The Exchange does not believe that 

eliminating the Rule 410B reporting 

requirement for the small number of 

NYSE MKT-only members19 would pose 

any significant regulatory risk. The 

Exchange represents that none of these 

firms has ever submitted a Rule 410B 

report. The Exchange also notes that 

NYSE MKT-only members would 

remain subject to federal and Exchange 

books and records requirements.20

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act 21 and the rules and regulations 

thereunder applicable to a national 

securities exchange.22 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,23 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 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 and that the rules are not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

Based on the Exchange’s 

representations, the Commission 

believes that eliminating the Rule 410B 

reporting requirement will not reduce 

the amount of publicly available 

information about securities 

transactions and that it is not likely to 

hamper the ability of the Exchange to 

conduct regulatory oversight of its 

members. The Commission notes that 

Rule 410B does not currently provide 

for real-time, publicly disseminated 

reporting of transactions, but instead 

requires non-public, electronic reporting 

of trade data to the Exchange on a nextday basis for regulatory purposes only. 

The Commission further notes that the 

Exchange represents that its members 

would remain subject to federal and 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices 5795 

24See 17 CFR 240.17a–3, 17 CFR 240.17a–4 & 

Rule 440—Equities. 

25 15 U.S.C. 78s(b)(2). 

26 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. 76309 

(October 29, 2015), 80 FR 68361 (November 4, 

2015). 

4 15 U.S.C. 78f(b). 

5 15 U.S.C. 78f(b)(4). 

Exchange books-and-records 

requirements 24 and that Exchange 

members would still be required to 

provide such trade data to the Exchange 

upon the Exchange’s request. For these 

reasons, the Commission believes that 

the proposal should help to prevent 

fraudulent and manipulative acts and 

practices, 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. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,25 that the 

proposed rule change (SR–NYSEMKT– 

2015–80) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–01923 Filed 2–2–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–76995; File No. SR–C2– 

2016–001] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change Relating to the Options 

Regulatory Fee 

January 28, 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 

14, 2016, C2 Options Exchange, 

Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) 

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 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 proposes to amend the 

Options Regulatory Fee. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http://

www.c2exchange.com/Legal/), at the 

Exchange’s Office of the Secretary, 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 decrease 

the Options Regulatory Fee (‘‘ORF’’) 

from $.0051 to $.0015 per contract in 

order to help ensure that revenue 

collected from the ORF, in combination 

with other regulatory fees and fines, 

does not exceed the Exchange’s total 

regulatory costs. The proposed fee 

change would be operative on February 

1, 2016. 

The ORF is assessed by the Exchange 

to each Permit Holder for all options 

transactions executed or cleared by the 

Permit Holder that are cleared by The 

Options Clearing Corporation (‘‘OCC’’) 

in the customer range (i.e., transactions 

that clear in a customer account at OCC) 

regardless of the exchange on which the 

transaction occurs. In other words, the 

Exchange imposes the ORF on all 

customer-range transactions executed by 

a Permit Holder, even if the transactions 

do not take place on the Exchange. The 

ORF also is charged for transactions that 

are not executed by a Permit Holder but 

are ultimately cleared by a Permit 

Holder. In the case where a Permit 

Holder executes a transaction and a 

different Permit Holder clears the 

transaction, the ORF is assessed to the 

Permit Holder who executed the 

transaction. In the case where a nonPermit Holder executes a transaction 

and a Permit Holder clears the 

transaction, the ORF is assessed to the 

Permit Holder who clears the 

transaction. The ORF is collected 

indirectly from Permit Holders through 

their clearing firms by OCC on behalf of 

the Exchange. 

The ORF is designed to recover a 

material portion of the costs to the 

Exchange of the supervision and 

regulation of Permit Holder customer 

options business, including performing 

routine surveillances, investigations, 

examinations, financial monitoring, as 

well as policy, rulemaking, interpretive 

and enforcement activities. The 

Exchange believes that revenue 

generated from the ORF, when 

combined with all of the Exchange’s 

other regulatory fees and fines, will 

cover a material portion, but not all, of 

the Exchange’s regulatory costs. The 

Exchange notes that its regulatory 

responsibilities with respect to Permit 

Holder compliance with options sales 

practice rules have largely been 

allocated to FINRA under a 17d–2 

agreement.3 The ORF is not designed to 

cover the cost of that options sales 

practice regulation. 

The Exchange will continue to 

monitor the amount of revenue 

collected from the ORF to ensure that it, 

in combination with its other regulatory 

fees and fines, does not exceed the 

Exchange’s total regulatory costs. The 

Exchange monitors its regulatory costs 

and revenues at a minimum on a semiannual basis. If the Exchange 

determines regulatory revenues exceed 

or are insufficient to cover a material 

portion of its regulatory costs, the 

Exchange will adjust the ORF by 

submitting a fee change filing to the 

Commission. The Exchange notifies 

Permit Holders of adjustments to the 

ORF via regulatory circular. The 

Exchange endeavors to provide Permit 

Holders with such notice at least 30 

calendar days prior to the effective date 

of the change. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.4 Specifically, 

the Exchange believes the proposed rule 

change is consistent with Section 6(b)(4) 

of the Act,5 which provides that 

Exchange rules may provide for the 

mstockstill on DSK4VPTVN1PROD with NOTICES