80 FR 18272 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS In Connection With the Exchange's Retail Liquidity Program Until September 30, 2015

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 64 (April 3, 2015)

Page Range		18272-18273
FR Document		2015-07696

Federal Register, Volume 80 Issue 64 (Friday, April 3, 2015)

[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Notices]
[Pages 18272-18273]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07696]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74609; File No. SR-NYSEARCA-2013-107]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an 
Extension to Limited Exemption From Rule 612(c) of Regulation NMS In 
Connection With the Exchange's Retail Liquidity Program Until September 
30, 2015

March 30, 2015.
    On December 23, 2013, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule

[[Page 18273]]

612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted NYSE 
Arca, Inc. (the ``Exchange'' or ``NYSEArca'') a limited exemption from 
the Sub-Penny Rule in connection with the operation of the Exchange's 
Retail Liquidity Program (the ``Program'').\2\ The limited exemption 
was granted concurrently with the Commission's approval of the 
Exchange's proposal to adopt the Program for a one-year pilot term.\3\ 
The exemption was granted coterminous with the effectiveness of the 
pilot Program; both the pilot Program and exemption are scheduled to 
expire on April 14, 2015.
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 71176 (December 23, 
2013), 78 FR 79524 (December 30, 2013) (SR-NYSEARCA-2013-107) (``RLP 
Approval Order'').
    \3\ See id.
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    The Exchange now seeks to extend the exemption until September 30, 
2015.\4\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Program 
through the same date.\5\ In its request to extend the exemption, the 
Exchange notes that the participation in the Program has increased more 
recently. Accordingly, the Exchange has asked for additional time to 
allow itself and the Commission to analyze more robust data concerning 
the Program, which the Exchange committed to provide to the 
Commission.\6\ For this reason and the reasons stated in the Order 
originally granting the limited exemption, the Commission finds that 
extending the exemption, pursuant to its authority under Rule 612(c) of 
Regulation NMS, is appropriate in the public interest and consistent 
with the protection of investors.
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    \4\ See Letter from Martha Redding, Senior Counsel and Assistant 
Secretary, NYSE, to Brent J. Fields, Secretary, Securities and 
Exchange Commission, dated March 19, 2015.
    \5\ See Securities Exchange Act Release No. 74572 (March 24, 
2015), 80 FR 16705 (March 30, 2015) (SR-NYSEARCA-2015-22).
    \6\ See RLP Approval Order, supra note 2, 78 FR at 79529.
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    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows it to accept and rank orders priced 
equal to or greater than $1.00 per share in increments of $0.001, in 
connection with the operation of its Retail Liquidity Program, until 
September 30, 2015.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time, the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the persons relying on the exemption that is the 
subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(83).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-07696 Filed 4-2-15; 8:45 am]
 BILLING CODE 8011-01-P

18272 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Notices

similar to aggregation language adopted III. Date of Effectiveness of the All submissions should refer to File
by other exchanges.14 Proposed Rule Change and Timing for Number SR–NYSEArca-2015–20. This
The Exchange further notes that the Commission Action file number should be included on the
proposal would serve to reduce subject line if email is used. To help the
The Exchange has filed the proposed
disparity of treatment between ETP Commission process and review your
rule change pursuant to section
Holders with regard to the pricing of comments more efficiently, please use
19(b)(3)(A)(iii) of the Act 16 and Rule
different services and reduce any only one method. The Commission will
19b–4(f)(6) thereunder.17 Because the
potential for confusion on how activity post all comments on the Commission’s
proposed rule change does not: (i)
can be aggregated. The Exchange Internet Web site (http://www.sec.gov/
Significantly affect the protection of
believes that the proposed rule change rules/sro.shtml). Copies of the
investors or the public interest; (ii)
avoids disparate treatment of ETP submission, all subsequent
impose any significant burden on
Holders that have divided their various amendments, all written statements
competition; and (iii) become operative
business activities between separate with respect to the proposed rule
prior to 30 days from the date on which
corporate entities as compared to ETP change that are filed with the
it was filed, or such shorter time as the
Commission, and all written
Holders that operate those business Commission may designate, if
communications relating to the
activities within a single corporate consistent with the protection of
proposed rule change between the
entity. The Exchange further notes that investors and the public interest, the
Commission and any person, other than
the proposed rule change is reasonable proposed rule change has become
those that may be withheld from the
and is designed to remove impediments effective pursuant to section 19(b)(3)(A)
public in accordance with the
to and perfect the mechanism of a free of the Act and Rule 19b–4(f)(6)(iii)
provisions of 5 U.S.C. 552, will be
and open market by harmonizing the thereunder.18
available for Web site viewing and
manner by which the Exchanges permits At any time within 60 days of the printing in the Commission’s Public
ETP Holders to aggregate volume with filing of such proposed rule change, the Reference Room, 100 F Street NE.,
other exchanges. In particular, the Commission summarily may Washington, DC 20549, on official
Exchange notes that NASDAQ, PHLX temporarily suspend such rule change if business days between the hours of
and BX all have the same standard that it appears to the Commission that such 10:00 a.m. and 3:00 p.m. Copies of such
the Exchange is proposing to adopt. action is necessary or appropriate in the filing will also be available for
public interest, for the protection of inspection and copying at the principal
B. Self-Regulatory Organization’s
investors, or otherwise in furtherance of office of the Exchange. All comments
Statement on Burden on Competition the purposes of the Act. If the received will be posted without change;
In accordance with section 6(b)(8) of Commission takes such action, the the Commission does not edit personal
the Act,15 the Exchange does not believe Commission shall institute proceedings identifying information from
that the proposed rule change will to determine whether the proposed rule submissions. You should submit only
impose any burden on intermarket or change should be approved or information that you wish to make
intramarket competition that is not disapproved. available publicly. All submissions
necessary or appropriate in furtherance IV. Solicitation of Comments should refer to File Number SR–
of the purposes of the Act. As stated NYSEArca–2015–20 and should be
above, the proposed rule change, which Interested persons are invited to submitted on or before April 24, 2015.
applies equally to all ETP Holders, is submit written data, views, and
arguments concerning the foregoing, For the Commission, by the Division of
intended to reduce the Exchange’s Trading and Markets, pursuant to delegated
administrative burden in applying including whether the proposed rule
authority.19
volume price discounts for firms which change is consistent with the Act.
Comments may be submitted by any of Brent J. Fields,
have requested aggregation with that of Secretary.
an affiliate ETP Holder, and is the following methods:
[FR Doc. 2015–07619 Filed 4–2–15; 8:45 am]
substantially similar to rules adopted by Electronic Comments BILLING CODE 8011–01–P
other exchanges. Because the market for
order execution and routing is • Use the Commission’s Internet
extremely competitive, ETP Holders comment form (http://www.sec.gov/
rules/sro.shtml); or SECURITIES AND EXCHANGE
may readily opt to disfavor the COMMISSION
Exchange if they believe that • Send an email to rule-comments@
alternatives offer them better value. The sec.gov. Please include File Number SR– [Release No. 34–74609; File No. SR–
Exchange does not believe the proposed NYSEArca–2015–20 on the subject line. NYSEARCA–2013–107]
changes will impair the ability of ETP Paper Comments
Holders or competing order execution Self-Regulatory Organizations; NYSE
venues to maintain their competitive • Send paper comments in triplicate Arca, Inc.; Order Granting an
standing in the financial markets. to Secretary, Securities and Exchange Extension to Limited Exemption From
Commission, 100 F Street NE., Rule 612(c) of Regulation NMS In
C. Self-Regulatory Organization’s Washington, DC 20549–1090. Connection With the Exchange’s Retail
Statement on Comments on the Liquidity Program Until September 30,
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Proposed Rule Change Received From 16 15 U.S.C. 78s(b)(3)(A)(iii). 2015
Members, Participants, or Others 17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
March 30, 2015.
No written comments were solicited 4(f)(6) requires a self-regulatory organization to give On December 23, 2013, the Securities
or received with respect to the proposed the Commission written notice of its intent to file and Exchange Commission
rule change. the proposed rule change at least five business days (‘‘Commission’’) issued an order
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the pursuant to its authority under Rule
14 See supra note 4. Commission. The Exchange has satisfied this
15 15 U.S.C. 78f(b)(8). requirement. 19 17 CFR 200.30–3(a)(12).

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Document Created: 2015-12-18 15:29:23
Document Modified: 2015-12-18 15:29:23

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 18272