43056 Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices 

24 Id. 

25 17 CFR 240.17Ad–22(e)(6)(i) and (v). 

26 Id. 

27 12 U.S.C. 5465(e)(1)(I). 

expanded FIS Charge is designed to 

help NSCC collect sufficient financial 

resources to help cover the specific risk 

exposure, with a high degree of 

confidence, which is presented by all 

Members seeking to clear and settle 

transactions in family-issued securities. 

Therefore, the Commission believes that 

the proposal to expand the FIS Charge 

to all Members is consistent with Rule 

17Ad–22(e)(4)(i) under the Exchange 

Act.24

C. Consistency With Rule 17Ad– 

22(e)(6)(i) and (v) 

The Commission believes that the 

changes proposed in the Advance 

Notice are consistent with Rule 17Ad– 

22(e)(6)(i) and (v) under the Exchange 

Act, which require, in part, that NSCC 

establish, implement, maintain and 

enforce written policies and procedures 

reasonably designed to cover its credit 

exposures to its participants by 

establishing a risk-based margin system 

that, at a minimum considers, and 

produces margin levels commensurate 

with, the risks and particular attributes 

of each relevant product, portfolio, and 

market; and uses an appropriate method 

for measuring credit exposure that 

accounts for relevant product risk 

factors and portfolio effects across 

products.25

As described above, NSCC faces 

specific wrong-way risk where it acts as 

central counterparty to Member 

transactions in family-issued securities. 

To help address this risk, NSCC applies 

the FIS Charge in calculating the 

Member’s required margin. Specifically, 

the FIS Charge is a component of the 

margin that NSCC calculates and 

collects using a risk-based margin 

methodology that is designed to help 

maintain the coverage of NSCC’s credit 

exposures to its Members at a 

confidence level of at least 99 percent. 

The FIS Charge is tailored to consider 

both the value and type of family-issued 

securities held by the Member, as well 

as the credit risk presented by the 

Member, as calculated by NSCC. 

However, currently, the FIS Charge is 

assessed only against Members on the 

Watch List because of the additional 

credit risk presented by such Members. 

Nevertheless, all Members, not just 

Members on the Watch List, present 

specific wrong-way risk. As such, NSCC 

proposes to expand the FIS Charge to all 

Members, while maintaining the 

relation between the FIS Charge and the 

Member’s credit risk. Specifically, 

NSCC proposes to apply the FIS Charge 

to fixed-income securities that are 

family-issued securities of non-Watch 

List Members at a rate of no less than 

40 percent, and to equities that are 

family-issued securities of non-Watch 

List Members at a rate of no less than 

50 percent. Although NSCC proposes to 

apply a lesser percentage rate to nonWatch List Members than some Watch 

List Members, the proposed rate is 

designed to more accurately reflect the 

risks posed than what is reflected in a 

VaR Charge. 

Because the expanded FIS Charge also 

would be a tailored component of the 

margin that NSCC collects from nonWatch List Members to help cover 

NSCC credit exposure to such Members, 

as the charge would be based on 

different product risk factors with 

respect to equity and fixed-income 

securities, as described above, the 

Commission believes that the proposed 

changes in the Advance Notice are 

consistent with Rule 17Ad–22(e)(6)(i) 

and (v) under the Exchange Act.26

III. Conclusion 

It is therefore noticed, pursuant to 

Section 806(e)(1)(I) of the Clearing 

Supervision Act,27 that the Commission 

does not object to Advance Notice (SR– 

NSCC–2017–804) and that NSCC is 

authorized to implement the proposed 

change as of the date of this notice or 

the date of an order by the Commission 

approving the proposed rule change 

(SR–NSCC–2017–010) that reflects rule 

changes that are consistent with this 

Advance Notice, whichever is later. 

By the Commission. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19375 Filed 9–12–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE., Washington, DC 

20549–2736. 

Extension: Rule 10b–17, SEC File No. 270– 

427, OMB Control No. 3235–0476. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rule 10b–17 (17 CFR 240.10b–17), 

under the Securities Exchange Act of 

1934 (15 U.S.C 78a et seq.). 

Rule 10b–17 requires any issuer of a 

class of securities publicly traded by the 

use of any means or instrumentality of 

interstate commerce or of the mails or 

of any facility of any national securities 

exchange to give notice of the following 

specific distributions relating to such 

class of securities: (1) A dividend or 

other distribution in cash or in kind 

other than interest payments on debt 

securities; (2) a stock split or reverse 

stock split; or (3) a rights or other 

subscription offering. Notice shall be 

either given to the Financial Industry 

Regulatory Authority, Inc. as successor 

to the National Association of Securities 

Dealers, Inc. or in accordance with the 

procedures of the national securities 

exchange upon which the securities are 

registered. The Commission may 

exempt an issuer of over-the-counter 

(but not listed) securities from the 

notice requirement. The requirements of 

10b–17 do not apply to redeemable 

securities of registered open-end 

investment companies or unit 

investment trusts. 

The information required by Rule 

10b–17 is necessary for the execution of 

the Commission’s mandate under the 

Securities Exchange Act of 1934 to 

prevent fraudulent, manipulative, and 

deceptive acts and practices. The 

Commission has found that not 

requiring formal notices of the types of 

distributions covered by Rule 10b–17 

has led to a number of abuses including 

purchasers not being aware of their 

rights to such distributions. It is only 

through formal notice of the 

distribution, including the date of the 

distribution, that current holders, 

potential buyers, or potential sellers of 

the securities at issue will know their 

rights to the distribution. Therefore, it is 

only through formal notice that 

investors can make an informed 

decision as to whether to buy or sell a 

security. 

There are approximately 12,127 

respondents per year. These 

respondents make approximately 27,144 

responses per year. Each response takes 

approximately 10 minutes to complete. 

Thus, the total compliance burden per 

year is 4,524 burden hours. The total 

internal labor cost of compliance for the 

respondents, associated with producing 

and filing the reports, is approximately 

$317,991.96. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices 43057 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 80929 

(June 14, 2017), 82 FR 28157 (June 20, 2017) (SR– 

NYSEArca–2017–40). 

5See Securities Exchange Act Release No. 81419 

(August 17, 2017), 82 FR 40044 (August 23, 2017) 

(SR–NYSEArca–2017–40). 

6See id. at 40044. 

7See Securities Exchange Act Release No. 79902 

(January 30, 2017), 82 FR 9258 (February 3, 2017) 

(SR–NSX–2016–16). 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following Web site: 

http://www.reginfo.gov. Comments 

should be directed to: (i) Desk Officer 

for the Securities and Exchange 

Commission, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, Room 10102, 

New Executive Office Building, 

Washington, DC 20503, or by sending an 

email to: Shagufta_Ahmed@

omb.eop.gov; and (ii) Pamela Dyson, 

Director/Chief Information Officer, 

Securities and Exchange Commission, 

c/o Remi Pavlik-Simon, 100 F Street 

NE., Washington, DC 20549 or by 

sending an email to: PRA_Mailbox@

sec.gov. Comments must be submitted to 

OMB within 30 days of this notice. 

Dated: September 7, 2017. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19360 Filed 9–12–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81548; File No. SR–NYSE– 

2017–44] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Change To Amend Its Rules 

To Make Technical and Conforming 

Updates, in Connection With the 

Merger of NYSE Arca Equities, Inc. 

With and Into the Exchange’s Affiliate 

NYSE Arca, Inc. and the Name Change 

of NYSE National, Inc. 

September 7, 2017. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on August 

25, 2017, New York Stock Exchange 

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

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. 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 its 

rules to make technical and conforming 

updates in connection with (a) the 

merger of NYSE Arca Equities, Inc. with 

and into the Exchange’s affiliate NYSE 

Arca, Inc. and (b) the name change of 

NYSE National, Inc. The proposed 

change is available on the Exchange’s 

Web site at www.nyse.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 

self-regulatory organization 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 those 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

rules to make technical and conforming 

updates in connection with (a) the 

merger of NYSE Arca Equities, Inc. 

(‘‘NYSE Arca Equities’’) with and into 

the Exchange’s affiliate NYSE Arca, Inc. 

(‘‘NYSE Arca’’), and (b) the name 

change of NYSE National, Inc. 

Background 

On June 2, 2017, the Exchange’s 

affiliate, NYSE Arca, filed rule changes 

with the Commission in connection 

with the proposed merger of NYSE 

Arca’s wholly-owned subsidiary, NYSE 

Arca Equities, with and into NYSE Arca 

(the ‘‘Merger’’).4 The proposed changes 

were approved by the Commission on 

August 17, 2017, and the Merger 

occurred on that same date.5

Prior to the Merger, NYSE Arca had 

two rulebooks: the NYSE Arca rules for 

its options market and the NYSE Arca 

Equities rules for its equities market. At 

the Merger, the NYSE Arca Equities 

rules were integrated into the NYSE 

Arca rules, so that there is now one 

NYSE Arca rulebook.6 As part of such 

integration, some of the NYSE Arca 

rules were renumbered. Accordingly, 

the Exchange proposes to amend certain 

of its rules, as detailed below, to make 

technical and conforming updates to its 

rules that cross reference the NYSE Arca 

rules and delete references to the NYSE 

Arca Equities. 

In January 2017, the Exchange’s 

parent NYSE Group, Inc. acquired all 

the capital stock of National Stock 

Exchange, Inc., which was renamed 

‘‘NYSE National, Inc.’’ 7 The Exchange 

proposes to update a reference to 

National Stock Exchange, Inc. found in 

the Exchange’s rules to reflect the new 

name of such entity, NYSE National, 

Inc. 

Proposed Rule Changes 

• In Exchange Rule 5.2(j) (Exchange 

Traded Products), the Exchange 

proposes to update the cross references 

to NYSE Arca Equities Rule 5.2(j)(1) by 

deleting the word ‘‘Equities’’ from the 

term ‘‘NYSE Arca Equities Rule’’ and 

appending an ‘‘-E’’ to the end of the rule 

number. The new cross reference would 

be to ‘‘NYSE Arca Rule 5.2–E(j)(1).’’ 

Similarly, the Exchange proposes to 

update the cross references to 

subsections of NYSE Arca Options Rule 

5.13 and to NYSE Arca Options Rule 5.3 

by deleting the word ‘‘Options’’ form 

the term ‘‘NYSE Arca Options Rule’’ 

and appending an ‘‘-O’’ to the end of the 

rules number. The new cross references 

would be to ‘‘NYSE Arca Rule 5.13–O’’ 

and ‘‘NYSE Arca Rule 5.3–O,’’ 

respectively, followed by any relevant 

subsection of the rule. 

• In Exchange Rules 8.4 (Account 

Approval), 8.5 (Suitability), 8.6 

(Discretionary Accounts), 8.7 

(Supervision of Accounts), 8.8 

(Customer Complaints), the Exchange 

proposes to update the references to 

NYSE Arca Equities Rules 9.18 by 

deleting the word ‘‘Equities’’ from the 

term ‘‘NYSE Arca Equities Rules’’ and 

appending an ‘‘-E’’ to the end of the rule 

number. The new cross references 

would be to ‘‘NYSE Arca Rule 9.18–E,’’ 

followed by any relevant subsection of 

the rule. 

• In Exchange Rule 8.9 (Prior 

Approval of Certain Communications to 

Customers) the Exchange proposes to 

update the cross references to NYSE 

Arca Equities Rule 9.28 by deleting the 


sradovich on DSK3GMQ082PROD with NOTICES