80 FR 20053 - Self-Regulatory Organizations; New York Stock Exchange, LLC; Notice of Filing of Proposed Rule Change Amending Rule 13 and Related Rules Governing Order Types and Modifiers
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 71 (April 14, 2015)
Federal Register Volume 80, Issue 71 (April 14, 2015)
| Page Range | 20053-20057 | |
| FR Document | 2015-08450 |
[Federal Register Volume 80, Number 71 (Tuesday, April 14, 2015)] [Notices] [Pages 20053-20057] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-08450] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74678; File No. SR-NYSE-2015-15] Self-Regulatory Organizations; New York Stock Exchange, LLC; Notice of Filing of Proposed Rule Change Amending Rule 13 and Related Rules Governing Order Types and Modifiers April 8, 2015. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that on March 24, 2015, New York Stock Exchange LLC (``NYSE'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 13 and related rules governing order types and modifiers. 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 On June 5, 2014, in a speech entitled ``Enhancing Our Market Equity Structure,'' Mary Jo White, Chair of the Securities and Exchange Commission (``SEC'' or the ``Commission'') requested the equity exchanges to conduct a comprehensive review of their order types and how they operate in practice, and as part of this review, consider appropriate rule changes to help clarify the nature of their order types.\4\ Subsequent to the Chair's speech, the SEC's Division of Trading and Markets requested that the equity exchanges complete their reviews and submit any proposed rule changes.\5\ --------------------------------------------------------------------------- \4\ See Mary Jo White, Chair, Securities and Exchange Commission, Speech at the Sandler, O'Neill & Partners, L.P. Global Exchange and Brokerage Conference (June 5, 2014) (available at www.sec.gov/News/Speech/Detail/Speech/1370542004312#.U5HI-fmwJiw). \5\ See Letter from James Burns, Deputy Director, Division of Trading and Markets, Securities and Exchange Commission, to Jeffrey C. Sprecher, Chief Executive Officer, Intercontinental Exchange, Inc., dated June 20, 2014. --------------------------------------------------------------------------- The Exchange notes that it continually assesses its rules governing order types and undertook on its own initiative a review of its rules related to order functionality to assure that its various order types, which have been adopted and amended over the years, accurately describe the functionality associated with those order types, and more specifically, how different order types may interact. As a result of that review, the Exchange submitted a proposed rule change to delete rules relating to functionality that was not available.\6\ In addition, over the years, when filing rule changes to adopt new functionality, the Exchange has used those filings as an opportunity to streamline related existing rule text for which functionality has not changed.\7\ --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 71897 (April 8, 2014), 79 FR 20953 (April 14, 2014) (SR-NYSE-2014-16) (``2014 Pegging Filing'') (amending rules governing pegging interest to conform to functionality that is available at the Exchange). \7\ See, e.g., Securities Exchange Act Release Nos. 68302 (Nov. 27, 2012), 77 FR 71658 (Dec. 3, 2012) (SR-NYSE-2012-65) (amending rules governing pegging interest to, among other things, make non- substantive changes, including moving the rule text from Rule 70.26 to Rule 13, to make the rule text more focused and streamlined) (``2012 Pegging Filing''), and 71175 (Dec. 23, 2013), 78 FR 79534 (Dec. 30, 2013) (SR-NYSE-2013-21) (approval order for rule proposal that, among other things, amended Rule 70 governing Floor broker reserve e-quotes that streamlined the rule text without making substantive changes) (``2013 Reserve e-Quote Filing''). --------------------------------------------------------------------------- The Exchange is filing this proposed rule change to continue with its efforts [[Page 20054]] to review and clarify its rules governing order types, as appropriate. Specifically, the Exchange notes that Rule 13 is currently structured alphabetically, and does not include subsection numbering. The Exchange proposes to provide additional clarity to Rule 13 by re-grouping and re-numbering current rule text and making other non-substantive, clarifying changes. The proposed rule changes are not intended to reflect changes to functionality but rather to clarify Rule 13 to make it easier to navigate.\8\ In addition, the Exchange proposes to amend certain rules to remove references to functionality that is no longer operative. --------------------------------------------------------------------------- \8\ The Exchange notes that its affiliated exchanges, NYSE MKT LLC and NYSE Arca, Inc. are proposing similar restructuring of their respective order type rules to group order types and modifiers. See SR-NYSEMKT-2015-22 and SR-NYSEArca-2015-08. --------------------------------------------------------------------------- Proposed Rule 13 Restructure The Exchange proposes to re-structure Rule 13 to re-group existing order types and modifiers together along functional lines. Proposed new subsection (a) of Rule 13 would set forth the Exchange's order types that are the foundation for all other order type instructions, i.e., the primary order types. The proposed primary order types would be:Market Orders. Rule text governing Market Orders would be moved to new Rule 13(a)(1). The Exchange proposes a non-substantive change to replace the reference to ``Display Book'' with a reference to ``Exchange systems.'' \9\ The Exchange notes that it proposes to capitalize the term ``Market Order'' throughout new Rule 13. --------------------------------------------------------------------------- \9\ The Exchange proposes to replace the term ``Display book'' with the term ``Exchange systems'' when use of the term refers to the Exchange systems that receive and execute orders. The Exchange proposes to replace the term ``Display Book'' with the term ``Exchange's book'' when use of the term refers to the interest that has been entered and ranked in Exchange systems. --------------------------------------------------------------------------- Limit Orders. Rule text governing Limit Orders would be moved to new Rule 13(a)(2). The Exchange proposes a non-substantive change to capitalize the term ``Limit Order,'' and to shorten the definition in a manner that streamlines the rule text without changing the meaning of the rule. The Exchange notes that it proposes to capitalize the term ``Limit Order'' throughout new Rule 13. The Exchange notes that it proposes to delete the definition of ``Auto Ex Order'' because all orders entered electronically at the Exchange are eligible for automatic execution in accordance with Rules 1000-1004 and therefore the Exchange does not believe that it needs to separately define an Auto Ex Order. Rather than maintain a separate definition, the Exchange proposes to specify in proposed Rule 13(a) that all orders entered electronically at the Exchange are eligible for automatic execution consistent with the terms of the order and Rules 1000-1004. The Exchange notes that Rule 13 currently provides for specified instructions for orders that may not execute on arrival, even if marketable, e.g., a Limit Order designated ALO, or may only be eligible to participate in an auction, accordingly, the terms of the order also control whether a marketable order would automatically execute upon arrival. The Exchange further proposes to specify that interest represented manually by Floor brokers, i.e., orally bid or offered at the point of sale on the Trading Floor, is not eligible for automatic execution. The Exchange notes that the order types currently specified in the definition for auto ex order are already separately defined in Rule 13 or Rule 70(a)(ii) (definition of G order). Proposed new subsection (b) of Rule 13 would set forth the existing Time in Force Modifiers that the Exchange makes available for orders entered at the Exchange. The Exchange proposes to: (i) Move rule text governing Day Orders to new Rule 13(b)(1), without any substantive changes to the rule text; (ii) move rule text governing Good til Cancelled Orders to new Rule 13(b)(2), without any substantive changes to the rule text; and (iii) move rule text governing Immediate or Cancel Orders to new Rule 13(b)(3) without any changes to rule text. The Exchange notes that these time-in-force conditions are not separate order types, but rather are modifiers to orders. Accordingly, the Exchange proposes to re-classify them as modifiers and remove the references to the term ``Order.'' In addition, as noted above, the Exchange proposes to capitalize the term ``Limit Order'' in Rule 13(b). Proposed new subsection (c) of Rule 13 would specify the Exchange's existing Auction-Only Orders. In moving the rule text, the Exchange proposes the following non-substantive changes: (i) Capitalize the terms ``Limit Order,'' ``CO Order,'' and ``Market Order''; (ii) move the rule text for CO Orders to new Rule 13(c)(1); (iii) rename a ``Limit `At the Close' Order'' as a ``Limit-on-Close (LOC) Order'' and move the rule text to new Rule 13(c)(2); (iv) rename a ``Limit `On-the- Open' Order'' as a ``Limit-on-Open (LOO) Order'' and move the rule text to new Rule 13(c)(3); (v) rename a ``Market `At-the-Close' Order'' as a ``Market-on-Close (MOC) Order'' and move the rule text to new Rule 13(c)(4); and (vi) rename a ``Market `On-the-Open' Order'' as a ``Market-on-Open (MOO) Order'' and move the rule text to new Rule 13(c)(5). Proposed new subsection (d) of Rule 13 would specify the Exchange's existing orders that include instructions not to display all or a portion of the order. The order types proposed to be included in this new subsection are: Mid-point Passive Liquidity (``MPL'') Orders. Existing rule text governing MPL Orders would be moved to new Rule 13(d)(1) with non-substantive changes to capitalize the term Limit Order, update cross references, and refer to ``Add Liquidity Only'' as ALO, since ALO is now a separately defined term in new Rule 13(e)(1). The Exchange also proposes to clarify the rule text by deleting the term ``including'' from the phrase ``[a]n MPL Order is not eligible for manual executions, including openings, re-openings, and closings,'' because MPL Orders would not participate in an opening, re-opening, or closing that is effectuated electronically.\10\ The Exchange further proposes to make a substantive amendment to the rule text set forth in new Rule 13(d)(1)(C) to specify that Exchange systems would reject an MPL Order on entry if the Minimum Triggering Volume (``MTV'') is larger than the size of the order and would reject a request to partially cancel a resting MPL Order if it would result in the MTV being larger than the size of the order and make conforming changes to the existing rule text. The Exchange would continue to enforce an MTV restriction if the unexecuted portion of an MPL Order with an MTV is less than the MTV. The Exchange believes that this proposed rule change would prevent an entering firm from causing an MPL Order to have an MTV that is larger than the order, thereby bypassing contra-side interest that is larger than the size of the MPL Order.\11\ Finally, the Exchange proposes to make a non-substantive change to new Rule 13(d)(1)(E) to replace the term ``discretionary trade'' with ``d-Quote,'' because d- Quotes are the only type of Exchange interest that is eligible to include discretionary pricing instructions.\12\ --------------------------------------------------------------------------- \10\ See Rule 123C.10 (``Closings may be effectuated manually or electronically'') and Rule 123D(1) (``Openings may be effectuated manually or electronically''). \11\ The Exchange notes that because of technology changes associated with rejecting MPL Orders that have an MTV larger than the size of the order, the Exchange will announce by Trader Update when this element of the proposed rule change will be implemented. \12\ See Rule 70.25 (Discretionary Instructions for Bids and Offers Represented via Floor Broker Agency Interest Files (e- QuotesSM)). --------------------------------------------------------------------------- [[Page 20055]] Reserve Orders. Existing rule text governing Reserve Orders would be moved to new Rule 13(d)(2) with non-substantive changes to capitalize the term ``Limit Order'' and hyphenate the term ``Non- Displayed.'' The Exchange proposes further non-substantive changes to the rule text governing Minimum Display Reserve Orders, which would be in new Rule 13(d)(2)(C), to clarify that a Minimum Display Reserve Order would participate in both automatic and manual executions. This is existing functionality relating to Minimum Display Reserve Orders \13\ and the proposed rule text aligns with Rule 70(f)(i) governing Floor broker Minimum Display Reserve e-Quotes.\14\ Similarly, the Exchange proposes non-substantive changes to the rule text governing Non-Displayed Reserve Orders, which would be in new Rule 13(d)(2)(D), to clarify that a Non-Displayed Reserve Order would not participate in manual executions. This is existing functionality relating to Non- Displayed Reserve Orders \15\ and the proposed rule text aligns with Rule 70(f)(ii) governing Non-Display Reserve eQuotes excluded from the DMM.\16\ Finally, in proposed new Rule 13(d)(2)(E), the Exchange proposes to clarify that the treatment of reserve interest, which is available for execution only after all displayable interest at that price point has been executed, is applicable to all Reserve Orders, and is not limited to Non-Displayed Reserve Orders.\17\ --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release No. 57688 (April 18, 2008), 73 FR 22194 at 22197 (April 24, 2008) (SR-NYSE-2008-30) (order approving rule change that, among other things, adopted new Reserve Order for which the non-displayed portion of the order is eligible to participate in manual executions) (``2008 Reserve Order Filing''). \14\ See 2013 Reserve e-Quote Filing, supra n. 7. \15\ See Securities Exchange Act Release No. 58845 (Oct. 24, 2008), 73 FR 64379 at 64384 (Oct. 29, 2008) (SR-NYSE-2008-46) (order approving the Exchange's New Market Model, including adopting a Non- Displayed Reserve Order that would not be eligible to participate in manual executions). \16\ See 2013 Reserve e-Quote Filing, supra n. 7. \17\ See 2008 Reserve Order Filing supra n. 13 at 22196 (displayable portion of Reserve Order executed together with other displayable interest at a price point before executing with reserve portion of the order). --------------------------------------------------------------------------- Proposed new subsection (e) of Rule 13 would specify the Exchange's existing order types that, by definition, do not route. The order types proposed to be included in this new subsection are: Add Liquidity Only (``ALO'') Modifiers. Existing rule text governing ALO modifiers would be moved to new Rule 13(e)(1) with non- substantive changes to capitalize the term ``Limit Order'' and update cross-references. Existing rule text that is being moved to new Rule 13(e)(1)(A) currently provides that Limit Orders designated ALO may participate in opens and closes, but that the ALO instructions would be ignored. Because Limit Orders designated ALO could also participate in re-openings, and the ALO instructions would similarly be ignored, the Exchange proposes to clarify new Rule 13(e)(1)(A) to provide that Limit Orders designated ALO could participate in openings, re-openings, and closings, but that the ALO instructions would be ignored. Do Not Ship (``DNS'') Orders. Existing rule text governing DNS Orders would be moved to new Rule 13(e)(2) with non-substantive changes to capitalize the term ``Limit Order'' and replace the reference to ``Display Book'' with a reference to ``Exchange systems.'' Intermarket Sweep Order. Existing rule text governing ISOs would be moved to new Rule 13(e)(3) with non-substantive changes to capitalize the term ``Limit Order'', update cross-references, and replace the reference to ``Display Book'' with a reference to ``Exchange's book.'' Proposed new subsection (f) of Rule 13 would specify the Exchange's other existing order instructions and modifiers, including: Do Not Reduce (``DNR'') Modifier. Existing rule text governing DNR Orders would be moved to new Rule 13(f)(1) with non- substantive changes to capitalize the terms ``Limit Order'' and ``Stop Order.'' In addition, the Exchange believes that because DNR instructions would be added to an order, DNR is more appropriately referred to as a modifier rather than as an order type. Do Not Increase (``DNI'') Modifiers. Existing rule text governing DNI Orders would be moved to new Rule 13(f)(2) with non- substantive changes to capitalize the terms ``Limit Order'' and ``Stop Order.'' In addition, the Exchange believes that because DNI instructions would be added to an order, DNI is more appropriately referred to as a modifier rather than as an order type. Pegging Interest. Existing rule text governing Pegging Interest and related subsections would be moved to new Rule 13(f)(3) with two clarifying changes to the existing rule text. First, because Pegging Interest is currently available for e-Quotes and d-Quotes only, the Exchange proposes to replace the term ``can'' with the term ``must'' in new Rule 13(f)(3)(a)(i) to provide that Pegging Interest ``must be an e-Quote or d-Quote.'' Second, the Exchange proposes to delete reference to the term ``Primary Pegging Interest,'' because the Exchange has only one form of pegging interest.\18\ --------------------------------------------------------------------------- \18\ See 2014 Pegging Filing, supra n. 6. --------------------------------------------------------------------------- Retail Modifiers. Existing rule text governing Retail Modifiers and related subsections would be moved to new Rule 13(f)(4) with non-substantive changes to update cross-references. Self-Trade Prevention (``STP'') Modifier. Existing rule text governing STP Modifiers and related subsections would be moved to new Rule 13(f)(5) with non-substantive changes to capitalize the terms ``Limit Orders,'' ``Market Orders,'' and ``Stop Orders'' and hyphenate the term ``Self-Trade Prevention.'' Sell ``Plus''--Buy ``Minus'' Instructions. Existing rule text governing Sell ``Plus''--Buy ``Minus'' Orders would be moved to new Rule 13(f)(6) with non-substantive changes to break the rule into subsections, capitalize the terms ``Market Order,'' ``Limit Order,'' and ``Stop Order,'' and replace the references to Display Book with references to Exchange systems. In addition, the Exchange proposes to re-classify this as an order instruction rather than as a separate order. Stop Orders. Existing rule text governing Stop Orders would be moved to new Rule 13(f)(7) with non-substantive changes to break the rule into subsections, capitalize the term ``Market Order,'' and replace references to ``Exchange's automated order routing system'' with references to ``Exchange systems.'' As part of the proposed restructure of Rule 13, the Exchange proposes to move existing rule text in Rule 13 governing the definition of ``Routing Broker'' to Rule 17(c), without any change to the rule text. The Exchange believes that Rule 17 is a more logical location for the definition of Routing Broker because Rule 17(c) governs the operations of Routing Brokers. In addition, the Exchange proposes to delete existing rule text in Rule 13 governing Not Held Orders and add rule text relating to not held instructions to supplementary material .20 to Rule 13. Supplementary material .20 to Rule 13 reflects obligations that members have in handling customer orders. Because not held instructions are instructions from a customer to a member or member organization regarding the handling of an order, and do not relate to instructions accepted by Exchange systems for execution, the Exchange believes that references to not held instructions are better suited for this existing supplementary material. Accordingly, the Exchange proposes to amend supplementary material .20 to [[Page 20056]] Rule 13 to add that generally, an instruction that an order is ``not held'' refers to an unpriced, discretionary order voluntarily categorized as such by the customer and with respect to which the customer has granted the member or member organization price and time discretion. The Exchange believes that this proposed amendment aligns the definition of ``not held'' with guidance from the Financial Industry Regulatory Authority, Inc. (``FINRA'') and other markets regarding not held instructions.\19\ The Exchange notes that the existing Rule 13 text regarding how to mark a Not Held Order, e.g., ``not held,'' ``disregard tape,'' ``take time,'' etc., are outdated references regarding order marking between a customer and a member or member organization. All Exchange members and member organizations that receive customer orders are subject to Order Audit Trail System (``OATS'') obligations, consistent with Rule 7400 Series and FINRA Rule 7400 Series, which require that order-handling instructions be documented in OATS. Among the order-handling instructions that can be captured in OATS is whether an order is not held.\20\ The Exchange believes that these OATS-related obligations now govern how a member or member organization records order-handling instructions from a customer and therefore the terms currently set forth in Rule 13 relating to Not Held Orders are no longer necessary. --------------------------------------------------------------------------- \19\ See FINRA Regulatory Notice 11-29, Answer 3 (June 2011) (``Generally, a `not held' order is an unpriced, discretionary order voluntarily categorized as such by the customer and with respect to which the customer has granted the firm price and time discretion.''). See also Definition of Market Not Held Order on Nasdaq.com Glossary of Stock Market Terms, available at http://www.nasdaq.com/investing/glossary/m/market-not-held-order. \20\ See FINRA OATS Frequently Asked Questions--Technical, at T21 (``An order submitted by a customer who gives the broker discretion as to the price and time of execution is denoted as a ``Not Held'' order.''), available at http://www.finra.org/Industry/Compliance/MarketTransparency/OATS/FAQ/P085542. --------------------------------------------------------------------------- Finally, the Exchange proposes to amend Rule 70.25 governing d- Quotes to clarify that certain functionality set forth in the Rule is no longer available. Specifically, Rule 70.25(c)(ii) currently provides that a Floor broker may designate a maximum size of contra-side volume with which it is willing to trade using discretionary pricing instructions. Because this functionality is not available, the Exchange proposes to delete references to the maximum discretionary size parameter from Rules 70.25(c)(ii) and (c)(v). In addition, the Exchange proposes to amend Rule 70.25(c)(iv) to clarify that the circumstances of when the Exchange would consider interest displayed by other market centers at the price at which a d-Quote may trade are not limited to determining when a d-Quote's minimum or maximum size range is met. Accordingly, the Exchange proposes to delete the clause ``when determining if the d-Quote's minimum and/or maximum size range is met.'' The Exchange believes that the proposed changes to Rule 70.25(c) will provide clarity and transparency regarding the existing functionality relating to d-Quotes at the Exchange. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\21\ in general, and furthers the objectives of Section 6(b)(5),\22\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. Specifically, the Exchange believes that the proposed restructuring of Rule 13, to group existing order types to align by functionality, would remove impediments to and perfect the mechanism of a free and open market by ensuring that members, regulators, and the public can more easily navigate the Exchange's rulebook and better understand the order types available for trading on the Exchange. In addition, the Exchange believes that the proposed revisions to Rule 13 promote clarity regarding existing functionality that has been approved in prior rule filings, but which may not have been codified in rule text.\23\ Moreover, the Exchange believes that moving rule text defining a Routing Broker to Rule 17 represents a more logical location for such definition, thereby making it easier for market participants to navigate Exchange rules. Likewise, the Exchange believes the proposed changes to ``Not Held Order,'' to move it to supplementary material .20 to Rule 13 and revise the rule text to conform with guidance from FINRA and OATS requirements, would remove impediments to and perfect the mechanism of a free and open market and a national market system by applying a uniform definition of not held instructions across multiple markets, thereby reducing the potential for confusion regarding the meaning of not held instructions. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78f(b). \22\ 15 U.S.C. 78f(b)(5). \23\ See supra nn. 13-18. --------------------------------------------------------------------------- The Exchange further believes that the proposed amendment regarding MPL Orders to reject both MPL Orders with an MTV larger than the size of the order and instructions to partially cancel an MPL Order that would result in an MTV larger than the size of the order would remove impediments to and perfect the mechanism of a free and open market and national market system in general because it could potentially reduce the ability of a member organization from using MPL Orders to bypass contra-side interest that may be larger than the size of the MPL Order. Finally, the Exchange believes that the proposed changes to Rule 70.25(c) would remove impediments to and perfect the mechanism of a free and open market and national market system in general because it assures that the Exchange's rules align with the existing functionality available at the Exchange for d-Quotes. 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 change is not designed to address any competitive issue but rather would re-structure Rule 13 and remove rule text that relates to functionality that is no longer operative, thereby reducing confusion and making the Exchange's rules easier to navigate. 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 Within 45 days of the date of publication of this notice in the Federal Register, or up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or [[Page 20057]] (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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-2015-15 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSE-2015-15. 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 the filing will also be available for inspection and copying at the NYSE's principal office and on its Internet Web site at www.nyse.com. 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-2015-15 and should be submitted on or before May 5, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-08450 Filed 4-13-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20053
(B) institute proceedings to determine For the Commission, by the Division of A. Self-Regulatory Organization’s
whether the proposed rule change Trading and Markets, pursuant to delegated Statement of the Purpose of, and the
should be disapproved. authority.16 Statutory Basis for, the Proposed Rule
Brent J. Fields, Change
IV. Solicitation of Comments Secretary.
1. Purpose
[FR Doc. 2015–08449 Filed 4–13–15; 8:45 am]
Interested persons are invited to
BILLING CODE 8011–01–P On June 5, 2014, in a speech entitled
submit written data, views, and ‘‘Enhancing Our Market Equity
arguments concerning the foregoing, Structure,’’ Mary Jo White, Chair of the
including whether the proposed rule Securities and Exchange Commission
SECURITIES AND EXCHANGE
change is consistent with the Act. COMMISSION (‘‘SEC’’ or the ‘‘Commission’’) requested
Comments may be submitted by any of the equity exchanges to conduct a
the following methods: [Release No. 34–74678; File No. SR–NYSE–
2015–15]
comprehensive review of their order
Electronic Comments types and how they operate in practice,
Self-Regulatory Organizations; New and as part of this review, consider
• Use the Commission’s Internet York Stock Exchange, LLC; Notice of appropriate rule changes to help clarify
comment form (http://www.sec.gov/ Filing of Proposed Rule Change the nature of their order types.4
rules/sro.shtml); or Amending Rule 13 and Related Rules Subsequent to the Chair’s speech, the
• Send an email to rule-comments@ Governing Order Types and Modifiers SEC’s Division of Trading and Markets
sec.gov. Please include File Number SR– requested that the equity exchanges
April 8, 2015. complete their reviews and submit any
NYSEMKT–2015–23 on the subject line. Pursuant to Section 19(b)(1) 1 of the proposed rule changes.5
Paper Comments Securities Exchange Act of 1934 The Exchange notes that it
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3 continually assesses its rules governing
• Send paper comments in triplicate notice is hereby given that on March 24, order types and undertook on its own
to Brent J. Fields, Secretary, Securities 2015, New York Stock Exchange LLC initiative a review of its rules related to
and Exchange Commission, 100 F Street (‘‘NYSE’’ or ‘‘Exchange’’) filed with the order functionality to assure that its
NE., Washington, DC 20549–1090. Securities and Exchange Commission various order types, which have been
(‘‘Commission’’) the proposed rule adopted and amended over the years,
All submissions should refer to File
change as described in Items I, II, and accurately describe the functionality
Number SR–NYSEMKT–2015–23. This
III below, which Items have been associated with those order types, and
file number should be included on the
prepared by the self-regulatory more specifically, how different order
subject line if email is used. To help the organization. The Commission is types may interact. As a result of that
Commission process and review your publishing this notice to solicit review, the Exchange submitted a
comments more efficiently, please use comments on the proposed rule change proposed rule change to delete rules
only one method. The Commission will from interested persons. relating to functionality that was not
post all comments on the Commission’s available.6 In addition, over the years,
Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s
Statement of the Terms of Substance of when filing rule changes to adopt new
rules/sro.shtml). Copies of the functionality, the Exchange has used
submission, all subsequent the Proposed Rule Change
those filings as an opportunity to
amendments, all written statements The Exchange proposes to amend streamline related existing rule text for
with respect to the proposed rule Rule 13 and related rules governing which functionality has not changed.7
change that are filed with the order types and modifiers. The text of The Exchange is filing this proposed
Commission, and all written the proposed rule change is available on rule change to continue with its efforts
communications relating to the the Exchange’s Web site at
proposed rule change between the www.nyse.com, at the principal office of 4 See Mary Jo White, Chair, Securities and
Commission and any person, other than the Exchange, and at the Commission’s Exchange Commission, Speech at the Sandler,
those that may be withheld from the Public Reference Room. O’Neill & Partners, L.P. Global Exchange and
Brokerage Conference (June 5, 2014) (available at
public in accordance with the www.sec.gov/News/Speech/Detail/Speech/
II. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be 1370542004312#.U5HI-fmwJiw).
Statement of the Purpose of, and
available for Web site viewing and 5 See Letter from James Burns, Deputy Director,
Statutory Basis for, the Proposed Rule Division of Trading and Markets, Securities and
printing in the Commission’s Public
Change Exchange Commission, to Jeffrey C. Sprecher, Chief
Reference Room, 100 F Street NE., Executive Officer, Intercontinental Exchange, Inc.,
Washington, DC 20549, on official In its filing with the Commission, the dated June 20, 2014.
business days between the hours of self-regulatory organization included 6 See Securities Exchange Act Release No. 71897
10:00 a.m. and 3:00 p.m. Copies of the statements concerning the purpose of, (April 8, 2014), 79 FR 20953 (April 14, 2014) (SR–
and basis for, the proposed rule change NYSE–2014–16) (‘‘2014 Pegging Filing’’) (amending
filing will also be available for rules governing pegging interest to conform to
inspection and copying at the NYSE’s and discussed any comments it received functionality that is available at the Exchange).
principal office and on its Internet Web on the proposed rule change. The text 7 See, e.g., Securities Exchange Act Release Nos.
site at www.nyse.com. All comments of those statements may be examined at 68302 (Nov. 27, 2012), 77 FR 71658 (Dec. 3, 2012)
the places specified in Item IV below. (SR–NYSE–2012–65) (amending rules governing
received will be posted without change;
asabaliauskas on DSK5VPTVN1PROD with NOTICES
pegging interest to, among other things, make non-
the Commission does not edit personal The Exchange has prepared summaries, substantive changes, including moving the rule text
identifying information from set forth in sections A, B, and C below, from Rule 70.26 to Rule 13, to make the rule text
submissions. You should submit only of the most significant parts of such more focused and streamlined) (‘‘2012 Pegging
statements. Filing’’), and 71175 (Dec. 23, 2013), 78 FR 79534
information that you wish to make (Dec. 30, 2013) (SR–NYSE–2013–21) (approval
available publicly. All submissions 16 17
order for rule proposal that, among other things,
CFR 200.30–3(a)(12). amended Rule 70 governing Floor broker reserve e-
should refer to File Number SR– 1 15 U.S.C. 78s(b)(1). quotes that streamlined the rule text without
NYSEMKT–2015–23 and should be 2 15 U.S.C. 78a.
making substantive changes) (‘‘2013 Reserve e-
submitted on or before May 5, 2015. 3 17 CFR 240.19b–4. Quote Filing’’).
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![20054 Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices
to review and clarify its rules governing separate definition, the Exchange ‘On-the-Open’ Order’’ as a ‘‘Market-on-
order types, as appropriate. Specifically, proposes to specify in proposed Rule Open (MOO) Order’’ and move the rule
the Exchange notes that Rule 13 is 13(a) that all orders entered text to new Rule 13(c)(5).
currently structured alphabetically, and electronically at the Exchange are Proposed new subsection (d) of Rule
does not include subsection numbering. eligible for automatic execution 13 would specify the Exchange’s
The Exchange proposes to provide consistent with the terms of the order existing orders that include instructions
additional clarity to Rule 13 by re- and Rules 1000–1004. The Exchange not to display all or a portion of the
grouping and re-numbering current rule notes that Rule 13 currently provides for order. The order types proposed to be
text and making other non-substantive, specified instructions for orders that included in this new subsection are:
clarifying changes. The proposed rule may not execute on arrival, even if • Mid-point Passive Liquidity
changes are not intended to reflect marketable, e.g., a Limit Order (‘‘MPL’’) Orders. Existing rule text
changes to functionality but rather to designated ALO, or may only be eligible governing MPL Orders would be moved
clarify Rule 13 to make it easier to to participate in an auction, accordingly, to new Rule 13(d)(1) with non-
navigate.8 In addition, the Exchange the terms of the order also control substantive changes to capitalize the
proposes to amend certain rules to whether a marketable order would term Limit Order, update cross
remove references to functionality that automatically execute upon arrival. The references, and refer to ‘‘Add Liquidity
is no longer operative. Exchange further proposes to specify Only’’ as ALO, since ALO is now a
that interest represented manually by separately defined term in new Rule
Proposed Rule 13 Restructure Floor brokers, i.e., orally bid or offered 13(e)(1). The Exchange also proposes to
The Exchange proposes to re-structure at the point of sale on the Trading Floor, clarify the rule text by deleting the term
Rule 13 to re-group existing order types is not eligible for automatic execution. ‘‘including’’ from the phrase ‘‘[a]n MPL
and modifiers together along functional The Exchange notes that the order types Order is not eligible for manual
lines. currently specified in the definition for executions, including openings, re-
Proposed new subsection (a) of Rule auto ex order are already separately openings, and closings,’’ because MPL
13 would set forth the Exchange’s order defined in Rule 13 or Rule 70(a)(ii) Orders would not participate in an
types that are the foundation for all (definition of G order). opening, re-opening, or closing that is
other order type instructions, i.e., the Proposed new subsection (b) of Rule effectuated electronically.10 The
primary order types. The proposed 13 would set forth the existing Time in Exchange further proposes to make a
primary order types would be: Force Modifiers that the Exchange substantive amendment to the rule text
• Market Orders. Rule text governing makes available for orders entered at the set forth in new Rule 13(d)(1)(C) to
Market Orders would be moved to new Exchange. The Exchange proposes to: (i) specify that Exchange systems would
Rule 13(a)(1). The Exchange proposes a Move rule text governing Day Orders to reject an MPL Order on entry if the
non-substantive change to replace the new Rule 13(b)(1), without any Minimum Triggering Volume (‘‘MTV’’)
reference to ‘‘Display Book’’ with a substantive changes to the rule text; (ii) is larger than the size of the order and
reference to ‘‘Exchange systems.’’ 9 The move rule text governing Good til would reject a request to partially cancel
Exchange notes that it proposes to Cancelled Orders to new Rule 13(b)(2), a resting MPL Order if it would result
capitalize the term ‘‘Market Order’’ without any substantive changes to the in the MTV being larger than the size of
throughout new Rule 13. rule text; and (iii) move rule text the order and make conforming changes
• Limit Orders. Rule text governing governing Immediate or Cancel Orders to the existing rule text. The Exchange
Limit Orders would be moved to new to new Rule 13(b)(3) without any would continue to enforce an MTV
Rule 13(a)(2). The Exchange proposes a changes to rule text. The Exchange notes restriction if the unexecuted portion of
non-substantive change to capitalize the that these time-in-force conditions are an MPL Order with an MTV is less than
term ‘‘Limit Order,’’ and to shorten the not separate order types, but rather are the MTV. The Exchange believes that
definition in a manner that streamlines modifiers to orders. Accordingly, the this proposed rule change would
the rule text without changing the Exchange proposes to re-classify them prevent an entering firm from causing
meaning of the rule. The Exchange notes as modifiers and remove the references an MPL Order to have an MTV that is
that it proposes to capitalize the term to the term ‘‘Order.’’ In addition, as larger than the order, thereby bypassing
‘‘Limit Order’’ throughout new Rule 13. noted above, the Exchange proposes to contra-side interest that is larger than
The Exchange notes that it proposes capitalize the term ‘‘Limit Order’’ in the size of the MPL Order.11 Finally, the
to delete the definition of ‘‘Auto Ex Rule 13(b). Exchange proposes to make a non-
Order’’ because all orders entered Proposed new subsection (c) of Rule substantive change to new Rule
electronically at the Exchange are 13 would specify the Exchange’s 13(d)(1)(E) to replace the term
eligible for automatic execution in existing Auction-Only Orders. In ‘‘discretionary trade’’ with ‘‘d-Quote,’’
accordance with Rules 1000–1004 and moving the rule text, the Exchange because d-Quotes are the only type of
therefore the Exchange does not believe proposes the following non-substantive Exchange interest that is eligible to
that it needs to separately define an changes: (i) Capitalize the terms ‘‘Limit include discretionary pricing
Auto Ex Order. Rather than maintain a Order,’’ ‘‘CO Order,’’ and ‘‘Market instructions.12
Order’’; (ii) move the rule text for CO
8 The Exchange notes that its affiliated exchanges, Orders to new Rule 13(c)(1); (iii) rename 10 See Rule 123C.10 (‘‘Closings may be effectuated
NYSE MKT LLC and NYSE Arca, Inc. are proposing a ‘‘Limit ‘At the Close’ Order’’ as a manually or electronically’’) and Rule 123D(1)
similar restructuring of their respective order type ‘‘Limit-on-Close (LOC) Order’’ and move (‘‘Openings may be effectuated manually or
asabaliauskas on DSK5VPTVN1PROD with NOTICES
rules to group order types and modifiers. See SR– electronically’’).
NYSEMKT–2015–22 and SR–NYSEArca–2015–08.
the rule text to new Rule 13(c)(2); (iv) 11 The Exchange notes that because of technology
9 The Exchange proposes to replace the term rename a ‘‘Limit ‘On-the-Open’ Order’’ changes associated with rejecting MPL Orders that
‘‘Display book’’ with the term ‘‘Exchange systems’’ as a ‘‘Limit-on-Open (LOO) Order’’ and have an MTV larger than the size of the order, the
when use of the term refers to the Exchange systems move the rule text to new Rule 13(c)(3); Exchange will announce by Trader Update when
that receive and execute orders. The Exchange (v) rename a ‘‘Market ‘At-the-Close’ this element of the proposed rule change will be
proposes to replace the term ‘‘Display Book’’ with implemented.
the term ‘‘Exchange’s book’’ when use of the term
Order’’ as a ‘‘Market-on-Close (MOC) 12 See Rule 70.25 (Discretionary Instructions for
refers to the interest that has been entered and Order’’ and move the rule text to new Bids and Offers Represented via Floor Broker
ranked in Exchange systems. Rule 13(c)(4); and (vi) rename a ‘‘Market Agency Interest Files (e-QuotesSM)).
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![Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20057
(B) institute proceedings to determine For the Commission, by the Division of SECURITIES AND EXCHANGE
whether the proposed rule change Trading and Markets, pursuant to delegated COMMISSION
should be disapproved. authority.24
[File No. 500–1]
Brent J. Fields,
IV. Solicitation of Comments
Secretary. Order of Suspension of Trading
Interested persons are invited to [FR Doc. 2015–08450 Filed 4–13–15; 8:45 am]
April 10, 2015
submit written data, views, and BILLING CODE 8011–01–P
arguments concerning the foregoing, In the Matter of
including whether the proposed rule AmTrust Financial Group, Inc.
Boston Restaurant Associates, Inc.
change is consistent with the Act. SECURITIES AND EXCHANGE Clary Corp.
Comments may be submitted by any of COMMISSION Conbraco Industries, Inc.
the following methods: Dream Factory, Inc. (The)
[File No. 500–1] Dynatem, Inc.
Electronic Comments Employers General Insurance Group
K-tel International, Inc.
• Use the Commission’s Internet In the Matter of Triumph Ventures
Maintenance Depot, Inc.
comment form (http://www.sec.gov/ Corp.; Order of Suspension of Trading Manifold Capital Corp.
rules/sro.shtml); or McM Corp.
April 10, 2015.
• Send an email to rule-comments@ Mt. Carmel Public Utility Co.
It appears to the Securities and Muskoka Flooring Corp.
sec.gov. Please include File Number SR–
Exchange Commission that there is lack National Investment Managers, Inc.
NYSE–2015–15 on the subject line. Naylor Pipe Co.
of current and accurate information
Paper Comments Omega Ventures, Inc.
concerning the securities of Triumph On Stage Entertainment, Inc.
Ventures Corp., a Delaware corporation Pachinko World, Inc.
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities whose principal office is in Jerusalem, Polyair Inter Pack Inc.
Israel (trading symbol TRVX quoted on Setech, Inc.
and Exchange Commission, 100 F Street Seven J Stock Farm, Inc.
NE., Washington, DC 20549–1090. OTC Link operated by OTC Markets
TransCor Waste Services, Inc.
Group, Inc.) because of questions Valley Systems, Inc. (VSI Liquidation Corp.)
All submissions should refer to File regarding the accuracy of publicly World Racing Group, Inc.
Number SR–NYSE–2015–15. This file available information about the
number should be included on the It appears to the Securities and
company’s control persons, officers, Exchange Commission that there is a
subject line if email is used. To help the directors, and the ownership of its
Commission process and review your lack of current and accurate public
stock, including questions about the information concerning the securities of
comments more efficiently, please use accuracy of statements in the company’s
only one method. The Commission will the issuers listed below.
annual report on Form 10–K for the 1. It appears to the Securities and
post all comments on the Commission’s fiscal year ended December 31, 2014,
Internet Web site (http://www.sec.gov/ Exchange Commission that AmTrust
and in its registration statement on Financial Group, Inc. is no longer an
rules/sro.shtml). Copies of the
Form S–1 originally filed on March 4, operating business. AmTrust Financial
submission, all subsequent
2014 and subsequently amended Group, Inc. was a Delaware corporation
amendments, all written statements
concerning the identification and based in New York. The company is
with respect to the proposed rule
description of the company’s directors, quoted on OTC Link, operated by OTC
change that are filed with the
officers, control persons and ownership. Markets Group Inc. (‘‘OTC Link’’), under
Commission, and all written
The Commission is of the opinion that the ticker symbol AFGP.
communications relating to the 2. It appears to the Securities and
proposed rule change between the the public interest and the protection of
Exchange Commission that Boston
Commission and any person, other than investors require a suspension of trading Restaurant Associates, Inc. has been
those that may be withheld from the in the securities of the above-listed taken private. Boston Restaurant
public in accordance with the company. Associates, Inc. is a Delaware
provisions of 5 U.S.C. 552, will be Therefore, it is ordered, pursuant to corporation based in Massachusetts. The
available for Web site viewing and Section 12(k) of the Securities Exchange company is quoted on OTC Link under
printing in the Commission’s Public the ticker symbol BRAI.
Act of 1934, that trading in the above-
Reference Room, 100 F Street NE., 3. It appears to the Securities and
listed company is suspended for the
Washington, DC 20549, on official Exchange Commission that Clary Corp.
business days between the hours of period from 9:30 a.m. EDT, April 10,
2015, through 11:59 p.m. EDT, on April has been taken private. Clary Corp. is a
10:00 a.m. and 3:00 p.m. Copies of the California corporation based in
filing will also be available for 23, 2015.
California. The company is quoted on
inspection and copying at the NYSE’s By the Commission. OTC Link under the ticker symbol
principal office and on its Internet Web Jill M. Peterson, CLRY.
site at www.nyse.com. All comments Assistant Secretary. 4. It appears to the Securities and
received will be posted without change; Exchange Commission that Conbraco
asabaliauskas on DSK5VPTVN1PROD with NOTICES
[FR Doc. 2015–08638 Filed 4–10–15; 4:15 pm]
the Commission does not edit personal Industries, Inc. has been taken private.
BILLING CODE 8011–01–P
identifying information from Conbraco Industries, Inc. is a North
submissions. You should submit only Carolina corporation based in North
information that you wish to make Carolina. The company is quoted on
available publicly. All submissions OTC Link under the ticker symbol
should refer to File Number SR–NYSE– CNIN.
2015–15 and should be submitted on or 5. It appears to the Securities and
before May 5, 2015. 24 17 CFR 200.30–3(a)(12). Exchange Commission that Dream
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Document Created: 2015-12-18 11:09:33
Document Modified: 2015-12-18 11:09:33
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 20053 |
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