Federal Register: SEC Approves Plan Allocating Regulatory Responsibilities Between FINRA And Bats Exchanges

The SEC approved and declared effective a Securities Exchange Act Rule 17d-2 plan (the "Plan") for allocating regulatory responsibility between FINRA and numerous Bats Exchanges in order to reduce regulatory duplication for firms that are common members of both a Bats Exchange and FINRA ("Common Members"). The final order was published in the Federal Register.

The Plan establishes that FINRA would assume examination and enforcement responsibilities relating to compliance by Common Members with the rules of each Bats Exchange that are substantially similar to the applicable rules of FINRA, as well as any provisions of the federal securities laws, rules and regulations otherwise agreed upon (together, the "Common Rules"). In the event that a Common Member is the subject of an investigation relating to a transaction occurring on a Bats Exchange, the Bats Exchange may, in its discretion, "exercise concurrent jurisdiction and responsibility for such matter."