Document ID: SEC-2017-1428-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Stock Exchange, Inc.
Posted Date: 2017-08-23T04:00Z

[Federal Register Volume 82, Number 162 (Wednesday, August 23, 2017)]
[Notices]
[Page 40051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17806]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81415; File No. SR-CHX-2017-04]

Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Designation of Longer Period for Commission Action on 
Proceedings To Determine Whether To Approve or Disapprove a Proposed 
Rule Change To Adopt the CHX Liquidity Enhancing Access Delay

August 17, 2017.
    On February 10, 2017, the Chicago Stock Exchange, Inc. (``CHX'' or 
``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 adopt the CHX Liquidity 
Enhancing Access Delay (``LEAD''). The proposed rule change was 
published for comment in the Federal Register on February 21, 2017.\3\ 
On April 3, 2017, 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 the proposed rule 
change should be disapproved.\4\ The Commission received eleven comment 
letters on the proposed rule change, including a response from the 
Exchange.\5\ On May 22, 2017, the Commission instituted proceedings 
under Section 19(b)(2)(B) of the Exchange Act \6\ to determine whether 
to approve or disapprove the proposed rule change.\7\ Since then, the 
Commission has received six more comment letters, including a response 
from the Exchange.\8\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 80041 (February 14, 
2017), 82 FR 11252 (``Notice'').
    \4\ See Securities Exchange Act Release No. 80364, 82 FR 17065 
(April 7, 2017).
    \5\ See letters from: (1) Ryan Hitch, Head of Equities Trading, 
XR Securities LLC, dated February 24, 2017; (2) Douglas A. Cifu, 
Chief Executive Officer, Virtu Financial LLC, dated February 27, 
2017; (3) Joanna Mallers, Secretary, FIA Principal Traders Group, 
dated March 13, 2017; (4) Adam Nunes, Head of Business Development, 
Hudson River Trading LLC, dated March 13, 2017; (5) R.T. 
Leuchtkafer, dated March 14, 2017; (6) Stephen John Berger, Managing 
Director, Government & Regulatory Policy, Citadel Securities, dated 
March 14, 2017; (7) Tyler Gellasch, Executive Director, Healthy 
Markets Association, March 17, 2017; (8) Elizabeth K. King, General 
Counsel and Corporate Secretary, New York Stock Exchange, dated 
March 20, 2017; (9) James G. Ongena, Executive Vice President and 
General Counsel, CHX, dated March 24, 2017; (10) Steve Crutchfield, 
Head of Market Structure, CTC Trading Group, LLC, dated April 4, 
2017; and (11) Theodore R. Lazo, Managing Director and Associate 
General Counsel, Securities Industry and Financial Markets 
Association, dated May 17, 2017. All comments on the proposed rule 
change are available at: https://www.sec.gov/comments/sr-chx-2017-04/chx201704.htm.
    \6\ 15 U.S.C. 78s(b)(2)(B).
    \7\ See Securities Exchange Act Release No. 80740, 82 FR 24412 
(May 26, 2017).
    \8\ See letters from: (1) R. T. Leuchtkafer, dated June 15, 
2017; (2) Stephen Berger, Managing Director, Government and 
Regulatory Policy, Citadel Securities, dated June 16, 2017; (3) 
Joanna Mallers, Secretary, FIA Principal Traders Group, dated June 
16, 2017; (4) James G. Ongena, Executive Vice President, General 
Counsel, CHX, dated June 30, 2017; (5) R. T. Leuchtkafer, dated July 
7, 2017; and (6) R. T. Leuchtkafer, dated July 10, 2017.
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    Section 19(b)(2) of the Act \9\ 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 reasons for such determination. The proposed rule 
change was published for notice and comment in the Federal Register on 
February 21, 2017.\10\ August 20, 2017 is 180 days from that date, and 
October 19, 2017 is 240 days from that date.
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    \9\ 15 U.S.C. 78s(b)(2).
    \10\ See supra text accompanying note 3.
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    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, the issues raised in the comment letters that have been 
submitted in connection therewith, and the Exchange's responses to the 
comments. Accordingly, the Commission, pursuant to Section 19(b)(2) of 
the Act,\11\ designates October 19, 2017 as the date by which the 
Commission should either approve or disapprove the proposed rule change 
(File No. SR-CHX-2017-04).
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    \11\ 15 U.S.C. 78s(b)(2).
    \12\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-17806 Filed 8-22-17; 8:45 am]
BILLING CODE 8011-01-P