[Federal Register Volume 84, Number 109 (Thursday, June 6, 2019)]
[Notices]
[Page 26456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11868]



[[Page 26456]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86002; File No. 013-00132]


Initial Form ATS-N Filing; Notice of Extension of Commission 
Review Period

June 3, 2019.
    On February 12, 2019, LeveL ATS filed an initial Form ATS-N (``Form 
ATS-N'') with the Securities and Exchange Commission (``Commission''). 
Pursuant to Rule 304 under the Securities and Exchange Act of 1934 
(``Act''), the Commission may, after notice and an opportunity for 
hearing, declare an initial Form ATS-N ineffective no later than 120 
days from the date of filing with the Commission, or, if applicable, 
the extended review period. June 12, 2019 is 120 calendar days from the 
date of filing. Pursuant to Rule 304(a)(1)(iv)(B), the Commission may 
extend the initial Form ATS-N review period for up to an additional 120 
calendar days if the initial Form ATS-N is unusually lengthy or raises 
novel or complex issues that require additional time for review.
    LeveL ATS was operating pursuant to an initial operation report on 
Form ATS on file with the Commission as of January 7, 2019.\1\ LeveL 
ATS filed an initial Form ATS-N on February 12, 2019. During the 
initial 120 calendar day review period, the Commission staff has been 
reviewing the disclosures on LeveL ATS's initial Form ATS-N. In 
addition, the staff has been engaged in ongoing discussions with LeveL 
ATS about its disclosures and manner of operations, as well as the 
requirements of Form ATS-N, to facilitate complete and comprehensible 
disclosures that reflect the complexities of those operations.
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    \1\ An NMS Stock ATS (as defined in Rule 300(k) of Regulation 
ATS) that was operating pursuant to an initial operation report on 
Form ATS on file with the Commission as of January 7, 2019 is a 
``Legacy NMS Stock ATS.'' 17 CFR 242.301(b)(2)(viii).
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    Form ATS-N requires NMS Stock ATSs to file with the Commission, and 
disclose to the public for the first time, certain information, 
including descriptions by the NMS Stock ATSs of their fees, the trading 
activities by their broker-dealer operators and their affiliates in the 
NMS Stock ATSs, their use of market data, their written standards for 
granting access to trading on the NMS Stock ATSs, and their written 
safeguards and procedures for protecting their subscribers' 
confidential trading information required by revised Rule 301(b)(10) of 
Regulation ATS. The initial Form ATS-N disclosures and discussions with 
Commission staff have revealed complexities about the operations of 
Legacy NMS Stock ATSs including, among other things, matching 
functionalities, means of order entry, order interaction and execution 
procedures, conditional order processes, segmentation of orders, and 
counterparty selection protocols. The Commission staff needs additional 
time to review novel and complex issues such as these, which Commission 
staff has discussed with LeveL ATS. Extending the initial Form ATS-N 
Commission review period for an additional 120 calendar days will 
provide Commission staff an opportunity to continue its review of the 
initial Form ATS-N disclosures and discussions with LeveL ATS.
    In the conversations between LeveL ATS and Commission staff about 
the initial Form ATS-N disclosures and the ATS operations, Commission 
staff and LeveL ATS have discussed a potential amendment to update 
LeveL ATS's disclosures regarding the complexities of its operations. 
Extending the review period will enable the NMS Stock ATS to amend its 
disclosures, if appropriate, and allow Commission staff to conduct a 
thorough review of amendments to the initial disclosures provided on 
the initial Form ATS-N.
    For the reasons given above, the Commission is extending the review 
period of the initial Form ATS-N submitted by LeveL ATS. Accordingly, 
pursuant to Rule 304(a)(1)(iv)(B), October 10, 2019 is the date by 
which the Commission may declare the initial Form ATS-N submitted by 
LeveL ATS ineffective.

    By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-11868 Filed 6-5-19; 8:45 am]
 BILLING CODE 8011-01-P


