[Federal Register Volume 84, Number 109 (Thursday, June 6, 2019)]
[Notices]
[Page 26482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11829]



[[Page 26482]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85973; File No. 013-00121]


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

May 31, 2019.
    On February 8, 2019, SIGMA X2 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 8, 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.
    SIGMA X2 was operating pursuant to an initial operation report on 
Form ATS on file with the Commission as of January 7, 2019.\1\ SIGMA X2 
filed an initial Form ATS-N on February 8, 2019. During the initial 120 
calendar day review period, the Commission staff has been reviewing the 
disclosures on SIGMA X2's initial Form ATS-N. In addition, the staff 
has been engaged in ongoing discussions with SIGMA X2 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 SIGMA X2. 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 SIGMA X2.
    In the conversations between SIGMA X2 and Commission staff about 
the initial Form ATS-N disclosures and the ATS operations, Commission 
staff and SIGMA X2 have discussed a potential amendment to update SIGMA 
X2'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 SIGMA X2. Accordingly, 
pursuant to Rule 304(a)(1)(iv)(B), October 6, 2019 is the date by which 
the Commission may declare the initial Form ATS-N submitted by SIGMA X2 
ineffective.

    By the Commission.

Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-11829 Filed 6-5-19; 8:45 am]
 BILLING CODE 8011-01-P


