80 FR 13054 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period for the Exchange's Retail Liquidity Program Which Is Currently Scheduled To Expire on March 31, 2015, Until September 30, 2015

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 48 (March 12, 2015)

Page Range		13054-13055
FR Document		2015-05606
Federal Register, Volume 80 Issue 48 (Thursday, March 12, 2015)
[Federal Register Volume 80, Number 48 (Thursday, March 12, 2015)]
[Notices]
[Pages 13054-13055]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-05606]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74454; File No. SR-NYSE-2015-10]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Extend the Pilot Period for the Exchange's Retail Liquidity Program 
Which Is Currently Scheduled To Expire on March 31, 2015, Until 
September 30, 2015

March 6, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 27, 2015, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the pilot period for the Exchange's 
Retail Liquidity Program (the ``Retail Liquidity Program'' or the 
``Program''), which is currently scheduled to expire on March 31, 2015, 
until September 30, 2015. The text of the proposed rule change is 
available on the Exchange's Web site at www.nyse.com, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to extend the pilot period of the 
Retail Liquidity Program,\3\ currently scheduled to expire on March 31, 
2015, until September 30, 2015.
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    \3\ See Securities Exchange Act Release No. 72629 (July 16, 
2014), 79 FR 42564 (July 22, 2014) (NYSE-2014-35).
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Background
    In July 2012, the Commission approved the Retail Liquidity Program 
on a pilot basis.\4\ The Program is designed to attract retail order 
flow to the Exchange, and allows such order flow to receive potential 
price improvement. The Program is currently limited to trades occurring 
at prices equal to or greater than $1.00 per share. Under the Program, 
Retail Liquidity Providers (``RLPs'') are able to provide potential 
price improvement in the form of a non-displayed order that is priced 
better than the Exchange's best protected bid or offer (``PBBO''), 
called a Retail Price Improvement Order (``RPI''). When there is an RPI 
in a particular security, the Exchange disseminates an indicator, known 
as the Retail Liquidity Identifier, indicating that such interest 
exists. Retail Member Organizations (``RMOs'') can submit a Retail 
Order to the Exchange, which would interact, to the extent possible, 
with available contra-side RPIs.
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    \4\ See Securities Exchange Act Release No. 67347 (July 3, 
2012), 77 FR 40673 (July 10, 2012) (``RLP Approval Order'') (SR-
NYSE-2011-55).
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    The Retail Liquidity Program was approved by the Commission on a 
pilot basis. Pursuant to NYSE Rule 107C(m), the pilot period for the 
Program is scheduled to end on March 31, 2015.
Proposal To Extend the Operation of the Program
    The Exchange established the Retail Liquidity Program in an attempt 
to attract retail order flow to the Exchange by potentially providing 
price improvement to such order flow. The Exchange believes that the 
Program promotes competition for retail order flow by allowing Exchange 
members to submit RPIs to interact with Retail Orders. Such competition 
has the ability to promote efficiency by facilitating the price 
discovery process and generating additional investor interest in 
trading securities, thereby promoting capital formation. The Exchange 
believes that extending the pilot is appropriate because it will allow 
the Exchange and the Commission additional time to analyze data 
regarding the Program that the Exchange has committed to provide.\5\ As 
such, the Exchange believes that it is appropriate to extend the 
current operation of the Program.\6\ Through this filing, the Exchange 
seeks to amend NYSE Rule 107C(m) and extend the current pilot period of 
the Program until September 30, 2015.
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    \5\ See id. at 40681.
    \6\ Concurrently with this filing, the Exchange has submitted a 
request for an extension of the exemption under Regulation NMS Rule 
612 previously granted by the Commission that permits it to accept 
and rank the undisplayed RPIs. See Letter from Martha Redding, 
Senior Counsel, NYSE Group, Inc. to Brent J. Fields, Secretary, 
Securities and Exchange Commission, dated February 27, 2015.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\7\ in general, and furthers the objectives of Section 6(b)(5),\8\ 
in particular, in that it is designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and, in 
general, to protect investors and the public interest. The Exchange 
believes that extending the pilot period for the Retail Liquidity 
Program is consistent with these principles because the Program is 
reasonably designed to attract retail order flow to the exchange 
environment, while helping to ensure that retail investors benefit from 
the better price that liquidity providers are willing to give their 
orders. Additionally, as previously stated, the competition promoted by 
the Program may facilitate the price discovery

[[Page 13055]]

process and potentially generate additional investor interest in 
trading securities. The extension of the pilot period will allow the 
Commission and the Exchange to continue to monitor the Program for its 
potential effects on public price discovery, and on the broader market 
structure.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change 
simply extends an established pilot program for an additional six 
months, thus allowing the Retail Liquidity Program to enhance 
competition for retail order flow and contribute to the public price 
discovery process.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\12\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSE-2015-10 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2015-10. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal offices of the Exchange. 
All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-NYSE-2015-10, 
and should be submitted on or before April 2, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-05606 Filed 3-11-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Notices 13055

process and potentially generate temporarily suspend such rule change if identifying information from
additional investor interest in trading it appears to the Commission that such submissions. You should submit only
securities. The extension of the pilot action is necessary or appropriate in the information that you wish to make
period will allow the Commission and public interest, for the protection of available publicly. All submissions
the Exchange to continue to monitor the investors, or otherwise in furtherance of should refer to File Number SR–NYSE–
Program for its potential effects on the purposes of the Act. If the 2015–10, and should be submitted on or
public price discovery, and on the Commission takes such action, the before April 2, 2015.
broader market structure. Commission shall institute proceedings For the Commission, by the Division of
under Section 19(b)(2)(B) 13 of the Act to Trading and Markets, pursuant to delegated
B. Self-Regulatory Organization’s determine whether the proposed rule
Statement on Burden on Competition authority.14
change should be approved or Jill M. Peterson,
The Exchange does not believe that disapproved. Assistant Secretary.
the proposed rule change will impose
IV. Solicitation of Comments [FR Doc. 2015–05606 Filed 3–11–15; 8:45 am]
any burden on competition that is not
necessary or appropriate in furtherance Interested persons are invited to BILLING CODE 8011–01–P

of the purposes of the Act. The submit written data, views, and
proposed rule change simply extends an arguments concerning the foregoing,
including whether the proposed rule SECURITIES AND EXCHANGE
established pilot program for an
change is consistent with the Act. COMMISSION
additional six months, thus allowing the
Retail Liquidity Program to enhance Comments may be submitted by any of [Release No. 74456; File No. SR–ICC–2015–
competition for retail order flow and the following methods: 002]
contribute to the public price discovery Electronic Comments
process. Self-Regulatory Organizations; ICE
• Use the Commission’s Internet Clear Credit LLC; Order Approving
C. Self-Regulatory Organization’s comment form (http://www.sec.gov/ Proposed Rule Change To Revise the
Statement on Comments on the rules/sro.shtml); or ICC Treasury Operations Policies and
Proposed Rule Change Received From • Send an email to rule-comments@ Procedures
Members, Participants, or Others sec.gov. Please include File Number SR–
NYSE–2015–10 on the subject line. March 6, 2015.
No written comments were solicited
or received with respect to the proposed Paper Comments I. Introduction
rule change. • Send paper comments in triplicate On January 6, 2015 ICE Clear Credit
III. Date of Effectiveness of the to Secretary, Securities and Exchange LLC (‘‘ICC’’) filed with the Securities
Proposed Rule Change and Timing for Commission, 100 F Street NE., and Exchange Commission
Commission Action Washington, DC 20549–1090. (‘‘Commission’’) the proposed rule
All submissions should refer to File change SR–ICC–2015–002 pursuant to
The Exchange has filed the proposed Section 19(b)(1) of the Securities
rule change pursuant to Section Number SR–NYSE–2015–10. This file
number should be included on the Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19(b)(3)(A)(iii) of the Act 9 and Rule 19b–4 thereunder.2 The proposed rule
19b–4(f)(6) thereunder.10 Because the subject line if email is used. To help the
Commission process and review your change was published for comment in
proposed rule change does not: (i) the Federal Register on January 23,
Significantly affect the protection of comments more efficiently, please use
only one method. The Commission will 2015.3 The Commission did not receive
investors or the public interest; (ii) any comments. For the reasons
impose any significant burden on post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ discussed below, the Commission is
competition; and (iii) become operative approving the proposed rule change.
prior to 30 days from the date on which rules/sro.shtml). Copies of the
it was filed, or such shorter time as the submission, all subsequent II. Description of the Proposed Rule
Commission may designate, if amendments, all written statements Change
consistent with the protection of with respect to the proposed rule
change that are filed with the ICC has proposed revising its
investors and the public interest, the Treasury Operations Policies and
proposed rule change has become Commission, and all written
communications relating to the Procedures to provide for the use of a
effective pursuant to Section 19(b)(3)(A) Federal Reserve Account, to provide for
of the Act and Rule 19b–4(f)(6)(iii) proposed rule change between the
Commission and any person, other than the use of a committed repurchase
thereunder. (‘‘repo’’) facility and to provide for USD
A proposed rule change filed under those that may be withheld from the
public in accordance with the and Euro investment guidelines for use
Rule 19b–4(f)(6) 11 normally does not by outside investment managers.
become operative prior to 30 days after provisions of 5 U.S.C. 552, will be
available for Web site viewing and ICC has stated that it has applied for
the date of the filing. However, pursuant a Federal Reserve Account to hold both
to Rule 19b4(f)(6)(iii),12 the Commission printing in the Commission’s Public
Reference Room, 100 F Street NE., USD cash and US Treasuries and that,
may designate a shorter time if such in its application, it requested separate
action is consistent with the protection Washington, DC 20549 on official
business days between the hours of accounts for house origin funds and
asabaliauskas on DSK5VPTVN1PROD with NOTICES

of investors and the public interest. customer origin funds. ICC has
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for represented that, if it is approved for a
filing of such proposed rule change, the
Commission summarily may inspection and copying at the principal
14 17 CFR 200.30–3(a)(12).
offices of the Exchange. All comments 1 15 U.S.C. 78s(b)(1).
9 15 U.S.C. 78s(b)(3)(A)(iii). received will be posted without change; 2 17 CFR 240.19b–4.
10 17 CFR 240.19b–4(f)(6). the Commission does not edit personal 3 Securities Exchange Act Release No. 34–74084
11 17 CFR 240.19b–4(f)(6).
(Jan. 16, 2015), 80 FR 3691 (January 23, 2015) (File
12 17 CFR 240.19b–4(f)(6)(iii). 13 15 U.S.C. 78s(b)(2)(B). No. SR–ICC–2015–002).

VerDate Sep<11>2014 17:40 Mar 11, 2015 Jkt 235001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 E:\FR\FM\12MRN1.SGM 12MRN1
Document Created: 2018-02-21 09:36:00
Document Modified: 2018-02-21 09:36:00
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 13054