[Federal Register Volume 84, Number 109 (Thursday, June 6, 2019)]
[Notices]
[Pages 26491-26492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11839]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85978; File No. 013-00140]


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

May 31, 2019.
    On February 13, 2019, Virtu MatchIt 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 13, 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.
    Virtu MatchIt ATS was operating pursuant to an initial operation 
report on Form ATS on file with the Commission as of January 7, 
2019.\1\ Virtu MatchIt ATS filed an initial Form ATS-N on February 13, 
2019. During the initial 120 calendar day review period, the Commission 
staff has been reviewing the disclosures on Virtu MatchIt ATS's initial 
Form ATS-N. In addition, the staff has been engaged in ongoing 
discussions with Virtu MatchIt 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

[[Page 26492]]

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 Virtu MatchIt 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 Virtu MatchIt ATS.
    In the conversations between Virtu MatchIt ATS and Commission staff 
about the initial Form ATS-N disclosures and the ATS operations, 
Commission staff and Virtu MatchIt ATS have discussed a potential 
amendment to update Virtu MatchIt 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 Virtu MatchIt ATS. 
Accordingly, pursuant to Rule 304(a)(1)(iv)(B), October 11, 2019 is the 
date by which the Commission may declare the initial Form ATS-N 
submitted by Virtu MatchIt ATS ineffective.

    By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-11839 Filed 6-5-19; 8:45 am]
 BILLING CODE 8011-01-P