80_FR_34872 80 FR 34756 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Revising the Schedule for Implementing the Exchange's Recently Approved Rule To Provide a Price Protection for Market Maker Quotes Pursuant to Rule 6.61

80 FR 34756 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Revising the Schedule for Implementing the Exchange's Recently Approved Rule To Provide a Price Protection for Market Maker Quotes Pursuant to Rule 6.61

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 116 (June 17, 2015)

Page Range34756-34758
FR Document2015-14830

Federal Register, Volume 80 Issue 116 (Wednesday, June 17, 2015)
[Federal Register Volume 80, Number 116 (Wednesday, June 17, 2015)]
[Notices]
[Pages 34756-34758]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14830]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75156; File No. SR-NYSEArca-2015-45]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Revising the 
Schedule for Implementing the Exchange's Recently Approved Rule To 
Provide a Price Protection for Market Maker Quotes Pursuant to Rule 
6.61

June 11, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on June 5, 2015, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to revise the schedule for implementing the 
Exchange's recently approved rule to provide a price protection for 
Market Maker quotes pursuant to Rule 6.61. 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.

[[Page 34757]]

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

1. Purpose
    The Exchange is proposing to revise the schedule for implementing 
the Exchange's recently approved rule to provide a price protection 
risk mechanism for Market Maker quotes pursuant to Rule 6.61.\4\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 74441 (March 4, 
2015), 80 FR 12664 (March 10, 2015) (SR-NYSEArca-2014-150) (Approval 
Order); see also Securities Exchange Act Release No. 74018 (January 
8, 2015), 80 FR 1982 (January 14, 2015) (SR-NYSEArca-2014-150) 
(Notice).
---------------------------------------------------------------------------

    Rule 6.61 provides two layers of price protection to incoming 
Market Maker quotes, rejecting those Market Maker quotes that exceed 
certain parameters, as a risk mitigation tool. The first layer of price 
protection, set forth in Rule 6.61(a)(1), assesses incoming sell quotes 
against the NBB and incoming buy quotes against the NBO (the ``NBBO 
Price Reasonability Check''). Specifically, per Rule 6.61(a)(1), 
provided that an NBBO is available, a Market Maker quote would be 
rejected if it is priced a specified dollar amount or percentage 
through the contra-side NBBO.
    The second layer of price protection assesses the price of call or 
put bids against a specified benchmark (the ``Underlying Stock Price/
Strike Price Check''), per Rule 6.61(a)(2) and (3). This second layer 
of protection applies to bids in call options or put options when (1) 
there is no NBBO available, for example, during pre-opening or prior to 
conducting a re-opening after a trading halt, or (2) if the NBBO is so 
wide as to not reflect an appropriate price for the respective options 
series.
    Rule 6.61(b) operates as an additional safeguard and risk control 
feature. In particular, when a Market Maker quote is rejected pursuant 
to Rule 6.61(a), the Exchange will also cancel any resting same-side 
quote(s) in the affected series, if rejected pursuant to (a)(1); or the 
Exchange will also cancel any resting same-side quote(s) in the 
affected class(es), if rejected pursuant to (a)(2) or (a)(3) of the 
Rule.
    When the Exchange proposed Rule 6.61, it stated that it would 
announce via Trader Update the implementation date of the Rule.\5\ 
Because of the differing technology associated with the two layers of 
price protection, the Exchange now proposes a two-stage implementation 
of the Rule. Specifically, the Exchange proposes to implement Rule 
6.61(a)(1) and Rule 6.61(b) as it relates to quotes that have been 
rejected pursuant to the NBBO Price Reasonability Check first. The 
Exchange believes that because the NBBO Price Reasonability Check is an 
approved rule of the Exchange, implementing it as soon as practicable 
would enable Market Makers and investors alike to benefit from the 
protections that would be afforded by the NBBO Price Reasonability 
Check.\6\ The Exchange would announce the implementation date by Trader 
Update to be published no later than five (5) days after the 
Commission's publication of this filing.
---------------------------------------------------------------------------

    \5\ See Notice, id., 80 FR at 1985.
    \6\ The Exchange notes that to the extent that Rule 6.61(b) 
references Rule 6.61(a)(2) and (3), that language would be without 
force until the implementation of the latter sections of the Rule.
---------------------------------------------------------------------------

    The Exchange further proposes a separate, later implementation date 
for Rule 6.61(a)(2) and (3) (the Underlying Stock Price/Strike Price 
Check) and Rule 6.61(b) as it relates to the Underlying Stock Price/
Strike Price Check. This two-stage implementation would provide the 
Exchange additional time to implement the technology related to the 
Underlying Stock Price/Strike Price Check. The Exchange proposes to add 
Commentary .01 to the rule, directing OTP Holders and OTP Firms to 
consult Trader Updates for additional information regarding the 
implementation schedule for paragraphs (a)(2) and (a)(3) of the Rule, 
with final implementation of such paragraphs to be completed by no 
later than March 4, 2016. As noted above, the Exchange proposes to 
announce the implementation date via Trader Update and would indicate 
those symbols for which the Underlying Stock Price/Strike Price Check 
will be unavailable, as the Exchange anticipates that this 
functionality would be implemented on an iterative basis depending on 
the symbol. Further, the Exchange will issue subsequent Trader Updates 
whenever there is a change to the list of symbols for which the 
Underlying Stock Price/Strike Price Check is unavailable.
    The Exchange is proposing this rule change to provide transparency 
regarding the implementation schedule regarding the two layers of price 
protection for Marker Maker quotes pursuant to Rule 6.61.
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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that providing an iterative implementation 
schedule for the approved price protection features set forth in Rule 
6.61 is consistent with the Act because it would enable Market Makers 
and the public to immediately benefit from the approved NBBO 
Reasonability Check while allowing the Exchange additional time to 
implement the technology associated with the Underlying Stock Price/
Strike Price Check when there is no reliable NBBO available.
    Specifically, the proposed iterative implementation schedule for 
Rule 6.61 would assist with the maintenance of a fair and orderly 
market and protect investors and the public interest because it would 
enable the Exchange to implement the NBBO Reasonability Check 
immediately, thereby helping to mitigate the risks associated with the 
entry of quotes that are priced a specified dollar amount or percentage 
through the prevailing contra-side market, which the Exchange believes 
is evidence of error. The Exchange further believes that announcing the 
implementation dates of the new risk mitigation tools via Trader 
Updates would remove impediments to and perfects the mechanism of a 
free and open market because they would provide notice of when each of 
the approved risk control features is being implemented, and for which 
symbols.

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 is 
not designed to address any competitive issues, but rather, to propose 
an iterative implementation schedule for an approved rule of the 
Exchange. Therefore, the Exchange does not believe that the proposed 
rule change will impose any burden on competition, but rather, would 
enable Market Makers, the public, and investors to immediately benefit 
from the additional price protection offered by the NBBO Reasonability 
Check and delay the implementation of the Underlying Stock Price/Strike 
Price Check pending finalization of the technology associated with that 
feature.

[[Page 34758]]

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

    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 for 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 \9\ and Rule 19b-
4(f)(6)(iii) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Exchange stated that waiver of this requirement would 
enable the Exchange to implement immediately the approved price 
protection risk mechanisms for which the associated Exchange technology 
is currently available or is in the process of becoming finalized, 
consistent with the proposed implementation schedule. The Commission 
believes the waiver of the operative delay is consistent with the 
protection of investors and the public interest. Therefore, the 
Commission hereby waives the operative delay and designates the 
proposal operative upon filing.\11\
---------------------------------------------------------------------------

    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the 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 to 
determine whether the proposed rule should be approved or 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 rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2015-45 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-NYSEArca-2015-45. 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 office 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-NYSEArca-2015-45, and should 
be submitted on or before July 8, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-14830 Filed 6-16-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                    34756                          Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices

                                                    route to Nasdaq for a similar rate as                   Electronic Comments                                     SECURITIES AND EXCHANGE
                                                    entering orders in certain symbols on                                                                           COMMISSION
                                                    Nasdaq directly. The Exchange believes                    • Use the Commission’s Internet
                                                    that its proposal would not burden                      comment form (http://www.sec.gov/
                                                                                                                                                                    [Release No. 34–75156; File No. SR–
                                                    intramarket competition because the                     rules/sro.shtml); or
                                                                                                                                                                    NYSEArca–2015–45]
                                                    proposed rate would apply uniformly to                    • Send an email to rule-comments@
                                                    all Members.                                            sec.gov. Please include File Number SR–                 Self-Regulatory Organizations; NYSE
                                                    BATS Connect                                            EDGA–2015–24 on the subject line.                       Arca, Inc.; Notice of Filing and
                                                                                                                                                                    Immediate Effectiveness of Proposed
                                                                                                            Paper Comments
                                                      The Exchange believes the proposed                                                                            Rule Change Revising the Schedule for
                                                    fees for BATS Connect will not result in                  • Send paper comments in triplicate                   Implementing the Exchange’s Recently
                                                    any burden on competition. The                          to Brent J. Fields, Secretary, Securities               Approved Rule To Provide a Price
                                                    proposed rule change is designed to                     and Exchange Commission, 100 F Street                   Protection for Market Maker Quotes
                                                    provide subscribers with an alternative                 NE., Washington, DC 20549–1090.                         Pursuant to Rule 6.61
                                                    means to access other market centers on
                                                    the Exchange’s network if they choose                      All submissions should refer to File                 June 11, 2015.
                                                    or in the event of a market disruption                  Number SR–EDGA–2015–24. This file                          Pursuant to Section 19(b)(1) 1 of the
                                                    where other alternative connection                      number should be included on the                        Securities Exchange Act of 1934 (the
                                                    methods become unavailable. BATS                        subject line if email is used. To help the              ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                    Connect is not the exclusive method to                  Commission process and review your                      notice is hereby given that, on June 5,
                                                    connect to these market centers and                     comments more efficiently, please use                   2015, NYSE Arca, Inc. (the ‘‘Exchange’’
                                                    subscribers may utilize alternative                     only one method. The Commission will                    or ‘‘NYSE Arca’’) filed with the
                                                    methods to connect to the product if                    post all comments on the Commission’s
                                                    they believe the Exchange’s proposed                                                                            Securities and Exchange Commission
                                                                                                            Internet Web site (http://www.sec.gov/                  (the ‘‘Commission’’) the proposed rule
                                                    pricing is unreasonable or otherwise.                   rules/sro.shtml). Copies of the
                                                    Therefore, the Exchange does not                                                                                change as described in Items I and II
                                                                                                            submission, all subsequent                              below, which Items have been prepared
                                                    believe the proposed rule change will                   amendments, all written statements
                                                    have any effect on competition.                                                                                 by the self-regulatory organization. The
                                                                                                            with respect to the proposed rule                       Commission is publishing this notice to
                                                    (C) Self-Regulatory Organization’s                      change that are filed with the                          solicit comments on the proposed rule
                                                    Statement on Comments on the                            Commission, and all written                             change from interested persons.
                                                    Proposed Rule Change Received From                      communications relating to the
                                                    Members, Participants or Others                         proposed rule change between the                        I. Self-Regulatory Organization’s
                                                                                                            Commission and any person, other than                   Statement of the Terms of the Substance
                                                      The Exchange has not solicited, and                   those that may be withheld from the                     of the Proposed Rule Change
                                                    does not intend to solicit, comments on                 public in accordance with the
                                                    this proposed rule change. The                          provisions of 5 U.S.C. 552, will be                       The Exchange proposes to revise the
                                                    Exchange has not received any                           available for Web site viewing and                      schedule for implementing the
                                                    unsolicited written comments from                       printing in the Commission’s Public                     Exchange’s recently approved rule to
                                                    Members or other interested parties.                                                                            provide a price protection for Market
                                                                                                            Reference Room, 100 F Street NE.,
                                                                                                            Washington, DC 20549, on official                       Maker quotes pursuant to Rule 6.61. The
                                                    III. Date of Effectiveness of the
                                                                                                            business days between the hours of                      text of the proposed rule change is
                                                    Proposed Rule Change and Timing for
                                                    Commission Action                                       10:00 a.m. and 3:00 p.m. Copies of the                  available on the Exchange’s Web site at
                                                                                                            filing will also be available for                       www.nyse.com, at the principal office of
                                                       The foregoing rule change has become                 inspection and copying at the principal                 the Exchange, and at the Commission’s
                                                    effective pursuant to Section 19(b)(3)(A)               office of the Exchange. All comments                    Public Reference Room.
                                                    of the Act 20 and paragraph (f) of Rule
                                                                                                            received will be posted without change;                 II. Self-Regulatory Organization’s
                                                    19b–4 thereunder.21 At any time within
                                                                                                            the Commission does not edit personal                   Statement of the Purpose of, and
                                                    60 days of the filing of the proposed rule
                                                                                                            identifying information from                            Statutory Basis for, the Proposed Rule
                                                    change, the Commission summarily may
                                                    temporarily suspend such rule change if                 submissions. You should submit only                     Change
                                                    it appears to the Commission that such                  information that you wish to make
                                                                                                            available publicly. All submissions                       In its filing with the Commission, the
                                                    action is necessary or appropriate in the
                                                                                                            should refer to File Number SR–EDGA–                    self-regulatory organization included
                                                    public interest, for the protection of
                                                                                                            2015–24 and should be submitted on or                   statements concerning the purpose of,
                                                    investors, or otherwise in furtherance of
                                                                                                            before July 8, 2015.                                    and basis for, the proposed rule change
                                                    the purposes of the Act.
                                                                                                                                                                    and discussed any comments it received
                                                                                                              For the Commission, by the Division of
                                                    IV. Solicitation of Comments                                                                                    on the proposed rule change. The text
                                                                                                            Trading and Markets, pursuant to delegated
                                                                                                            authority.22
                                                                                                                                                                    of those statements may be examined at
                                                      Interested persons are invited to                                                                             the places specified in Item IV below.
                                                    submit written data, views, and                         Robert W. Errett,
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                                                                                    The Exchange has prepared summaries,
                                                    arguments concerning the foregoing,                     Deputy Secretary.                                       set forth in sections A, B, and C below,
                                                    including whether the proposed rule                     [FR Doc. 2015–14821 Filed 6–16–15; 8:45 am]             of the most significant parts of such
                                                    change is consistent with the Act.
                                                    Comments may be submitted by any of
                                                                                                            BILLING CODE 8011–01–P                                  statements.
                                                    the following methods:
                                                                                                                                                                     1 15 U.S.C. 78s(b)(1).
                                                      20 15                                                                                                          2 15 U.S.C. 78a.
                                                            U.S.C. 78s(b)(3)(A).
                                                      21 17 CFR 240.19b–4(f).                                 22 17   CFR 200.30–3(a)(12).                           3 17 CFR 240.19b–4.




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                                                                                 Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices                                           34757

                                                    A. Self-Regulatory Organization’s                       6.61(b) as it relates to quotes that have              impediments to and perfect the
                                                    Statement of the Purpose of, and                        been rejected pursuant to the NBBO                     mechanism of a free and open market
                                                    Statutory Basis for, the Proposed Rule                  Price Reasonability Check first. The                   and a national market system, and in
                                                    Change                                                  Exchange believes that because the                     general, to protect investors and the
                                                                                                            NBBO Price Reasonability Check is an                   public interest.
                                                    1. Purpose
                                                                                                            approved rule of the Exchange,
                                                       The Exchange is proposing to revise                                                                            The Exchange believes that providing
                                                                                                            implementing it as soon as practicable
                                                    the schedule for implementing the                                                                              an iterative implementation schedule
                                                                                                            would enable Market Makers and
                                                    Exchange’s recently approved rule to                    investors alike to benefit from the                    for the approved price protection
                                                    provide a price protection risk                         protections that would be afforded by                  features set forth in Rule 6.61 is
                                                    mechanism for Market Maker quotes                       the NBBO Price Reasonability Check.6                   consistent with the Act because it
                                                    pursuant to Rule 6.61.4                                 The Exchange would announce the                        would enable Market Makers and the
                                                       Rule 6.61 provides two layers of price               implementation date by Trader Update                   public to immediately benefit from the
                                                    protection to incoming Market Maker                     to be published no later than five (5)                 approved NBBO Reasonability Check
                                                    quotes, rejecting those Market Maker                    days after the Commission’s publication                while allowing the Exchange additional
                                                    quotes that exceed certain parameters,                  of this filing.                                        time to implement the technology
                                                    as a risk mitigation tool. The first layer                 The Exchange further proposes a                     associated with the Underlying Stock
                                                    of price protection, set forth in Rule                  separate, later implementation date for                Price/Strike Price Check when there is
                                                    6.61(a)(1), assesses incoming sell quotes               Rule 6.61(a)(2) and (3) (the Underlying                no reliable NBBO available.
                                                    against the NBB and incoming buy                        Stock Price/Strike Price Check) and                       Specifically, the proposed iterative
                                                    quotes against the NBO (the ‘‘NBBO                      Rule 6.61(b) as it relates to the                      implementation schedule for Rule 6.61
                                                    Price Reasonability Check’’).                           Underlying Stock Price/Strike Price                    would assist with the maintenance of a
                                                    Specifically, per Rule 6.61(a)(1),                      Check. This two-stage implementation                   fair and orderly market and protect
                                                    provided that an NBBO is available, a                   would provide the Exchange additional                  investors and the public interest
                                                    Market Maker quote would be rejected                    time to implement the technology                       because it would enable the Exchange to
                                                    if it is priced a specified dollar amount               related to the Underlying Stock Price/
                                                                                                                                                                   implement the NBBO Reasonability
                                                    or percentage through the contra-side                   Strike Price Check. The Exchange
                                                    NBBO.                                                                                                          Check immediately, thereby helping to
                                                                                                            proposes to add Commentary .01 to the
                                                       The second layer of price protection                                                                        mitigate the risks associated with the
                                                                                                            rule, directing OTP Holders and OTP
                                                    assesses the price of call or put bids                  Firms to consult Trader Updates for                    entry of quotes that are priced a
                                                    against a specified benchmark (the                      additional information regarding the                   specified dollar amount or percentage
                                                    ‘‘Underlying Stock Price/Strike Price                   implementation schedule for paragraphs                 through the prevailing contra-side
                                                    Check’’), per Rule 6.61(a)(2) and (3).                  (a)(2) and (a)(3) of the Rule, with final              market, which the Exchange believes is
                                                    This second layer of protection applies                 implementation of such paragraphs to                   evidence of error. The Exchange further
                                                    to bids in call options or put options                  be completed by no later than March 4,                 believes that announcing the
                                                    when (1) there is no NBBO available, for                2016. As noted above, the Exchange                     implementation dates of the new risk
                                                    example, during pre-opening or prior to                 proposes to announce the                               mitigation tools via Trader Updates
                                                    conducting a re-opening after a trading                 implementation date via Trader Update                  would remove impediments to and
                                                    halt, or (2) if the NBBO is so wide as to               and would indicate those symbols for                   perfects the mechanism of a free and
                                                    not reflect an appropriate price for the                which the Underlying Stock Price/Strike                open market because they would
                                                    respective options series.                              Price Check will be unavailable, as the                provide notice of when each of the
                                                       Rule 6.61(b) operates as an additional               Exchange anticipates that this                         approved risk control features is being
                                                    safeguard and risk control feature. In                  functionality would be implemented on                  implemented, and for which symbols.
                                                    particular, when a Market Maker quote                   an iterative basis depending on the
                                                    is rejected pursuant to Rule 6.61(a), the                                                                      B. Self-Regulatory Organization’s
                                                                                                            symbol. Further, the Exchange will
                                                    Exchange will also cancel any resting                   issue subsequent Trader Updates                        Statement on Burden on Competition
                                                    same-side quote(s) in the affected series,              whenever there is a change to the list of                 The Exchange does not believe that
                                                    if rejected pursuant to (a)(1); or the                  symbols for which the Underlying Stock                 the proposed rule change will impose
                                                    Exchange will also cancel any resting                   Price/Strike Price Check is unavailable.               any burden on competition that is not
                                                    same-side quote(s) in the affected                         The Exchange is proposing this rule
                                                                                                                                                                   necessary or appropriate in furtherance
                                                    class(es), if rejected pursuant to (a)(2) or            change to provide transparency
                                                                                                                                                                   of the purposes of the Act. The
                                                    (a)(3) of the Rule.                                     regarding the implementation schedule
                                                                                                                                                                   proposed rule change is not designed to
                                                       When the Exchange proposed Rule                      regarding the two layers of price
                                                                                                            protection for Marker Maker quotes                     address any competitive issues, but
                                                    6.61, it stated that it would announce
                                                    via Trader Update the implementation                    pursuant to Rule 6.61.                                 rather, to propose an iterative
                                                    date of the Rule.5 Because of the                                                                              implementation schedule for an
                                                                                                            2. Statutory Basis                                     approved rule of the Exchange.
                                                    differing technology associated with the
                                                    two layers of price protection, the                        The proposed rule change is                         Therefore, the Exchange does not
                                                    Exchange now proposes a two-stage                       consistent with Section 6(b) of the Act,7              believe that the proposed rule change
                                                    implementation of the Rule.                             in general, and furthers the objectives of             will impose any burden on competition,
                                                                                                            Section 6(b)(5),8 in particular, in that it            but rather, would enable Market Makers,
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    Specifically, the Exchange proposes to
                                                    implement Rule 6.61(a)(1) and Rule                      is designed to promote just and                        the public, and investors to immediately
                                                                                                            equitable principles of trade, to remove               benefit from the additional price
                                                       4 See Securities Exchange Act Release No. 74441                                                             protection offered by the NBBO
                                                    (March 4, 2015), 80 FR 12664 (March 10, 2015) (SR–        6 The Exchange notes that to the extent that Rule
                                                                                                                                                                   Reasonability Check and delay the
                                                    NYSEArca–2014–150) (Approval Order); see also           6.61(b) references Rule 6.61(a)(2) and (3), that       implementation of the Underlying Stock
                                                    Securities Exchange Act Release No. 74018 (January      language would be without force until the
                                                    8, 2015), 80 FR 1982 (January 14, 2015) (SR–            implementation of the latter sections of the Rule.     Price/Strike Price Check pending
                                                    NYSEArca–2014–150) (Notice).                              7 15 U.S.C. 78f(b).                                  finalization of the technology associated
                                                       5 See Notice, id., 80 FR at 1985.                      8 15 U.S.C. 78f(b)(5).                               with that feature.


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                                                    34758                         Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices

                                                    C. Self-Regulatory Organization’s                       to determine whether the proposed rule                   For the Commission, by the Division of
                                                    Statement on Comments on the                            should be approved or disapproved.                     Trading and Markets, pursuant to delegated
                                                    Proposed Rule Change Received From                                                                             authority.12
                                                    Members, Participants, or Others                        IV. Solicitation of Comments                           Robert W. Errett,
                                                      No written comments were solicited                                                                           Deputy Secretary.
                                                                                                              Interested persons are invited to
                                                    or received with respect to the proposed                                                                       [FR Doc. 2015–14830 Filed 6–16–15; 8:45 am]
                                                                                                            submit written data, views, and
                                                    rule change.                                            arguments concerning the foregoing,                    BILLING CODE 8011–01–P

                                                    III. Date of Effectiveness of the                       including whether the proposed rule
                                                    Proposed Rule Change and Timing for                     change is consistent with the Act.                     SECURITIES AND EXCHANGE
                                                    Commission Action                                       Comments may be submitted by any of                    COMMISSION
                                                                                                            the following methods:
                                                       Because the proposed rule change                                                                            [Release No. 34–75145; File No. SR–BX–
                                                    does not (i) significantly affect the                   Electronic Comments                                    2015–033]
                                                    protection of investors or the public
                                                    interest; (ii) impose any significant                     • Use the Commission’s Internet                      Self-Regulatory Organizations;
                                                    burden on competition; and (iii) become                 comment form (http://www.sec.gov/                      NASDAQ OMX BX, Inc.; Notice of Filing
                                                    operative for 30 days from the date on                  rules/sro.shtml); or                                   and Immediate Effectiveness of a
                                                    which it was filed, or such shorter time                  • Send an email to rule-comments@                    Proposed Rule Change To Amend the
                                                    as the Commission may designate if                      sec.gov. Please include File Number SR–                Fee Schedule Under Exchange Rule
                                                    consistent with the protection of                       NYSEArca–2015–45 on the subject line.                  7018 With Respect to Transactions in
                                                    investors and the public interest, the                                                                         Securities Priced at $1 or More per
                                                    proposed rule change has become                         Paper Comments                                         Share and the Exchange’s Retail Price
                                                    effective pursuant to Section 19(b)(3)(A)                                                                      Improvement Program
                                                    of the Act 9 and Rule 19b–4(f)(6)(iii)                     • Send paper comments in triplicate
                                                    thereunder.10                                           to Secretary, Securities and Exchange                  June 11, 2015.
                                                       The Exchange has asked the                           Commission, 100 F Street NE.,                             Pursuant to Section 19(b)(1) of the
                                                    Commission to waive the 30-day                          Washington, DC 20549–1090.                             Securities Exchange Act of 1934
                                                    operative delay so that the proposal may                All submissions should refer to File                   (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                    become operative immediately upon                       Number SR–NYSEArca–2015–45. This                       notice is hereby given that on June 1,
                                                    filing. The Exchange stated that waiver                 file number should be included on the                  2015, NASDAQ OMX BX, Inc. (‘‘BX’’ or
                                                    of this requirement would enable the                                                                           ‘‘Exchange’’) filed with the Securities
                                                                                                            subject line if email is used. To help the
                                                    Exchange to implement immediately the                                                                          and Exchange Commission (‘‘SEC’’ or
                                                                                                            Commission process and review your
                                                    approved price protection risk                                                                                 ‘‘Commission’’) the proposed rule
                                                                                                            comments more efficiently, please use                  change as described in Items I, II, and
                                                    mechanisms for which the associated
                                                    Exchange technology is currently                        only one method. The Commission will                   III below, which Items have been
                                                    available or is in the process of                       post all comments on the Commission’s                  prepared by the Exchange. The
                                                    becoming finalized, consistent with the                 Internet Web site (http://www.sec.gov/                 Commission is publishing this notice to
                                                    proposed implementation schedule. The                   rules/sro.shtml). Copies of the                        solicit comments on the proposed rule
                                                    Commission believes the waiver of the                   submission, all subsequent                             change from interested persons.
                                                    operative delay is consistent with the                  amendments, all written statements
                                                                                                            with respect to the proposed rule                      I. Self-Regulatory Organization’s
                                                    protection of investors and the public
                                                                                                            change that are filed with the                         Statement of the Terms of Substance of
                                                    interest. Therefore, the Commission
                                                                                                            Commission, and all written                            the Proposed Rule Change
                                                    hereby waives the operative delay and
                                                    designates the proposal operative upon                  communications relating to the                            The Exchange proposes to amend BX
                                                    filing.11                                               proposed rule change between the                       Rule 7018 with respect to transactions
                                                       At any time within 60 days of the                    Commission and any person, other than                  in securities priced at $1 or more per
                                                    filing of the proposed rule change, the                 those that may be withheld from the                    share and the Exchange’s Retail Price
                                                    Commission summarily may                                public in accordance with the                          Improvement Program.
                                                    temporarily suspend such rule change if                 provisions of 5 U.S.C. 552, will be                       The text of the proposed rule change
                                                    it appears to the Commission that such                  available for Web site viewing and                     is also available on the Exchange’s Web
                                                    action is necessary or appropriate in the               printing in the Commission’s Public                    site at http://
                                                    public interest, for the protection of                                                                         nasdaqomxbx.cchwallstreet.com, at the
                                                                                                            Reference Room, 100 F Street, NE.,
                                                    investors, or otherwise in furtherance of                                                                      principal office of the Exchange, and at
                                                                                                            Washington, DC 20549 on official
                                                    the purposes of the Act. If the                                                                                the Commission’s Public Reference
                                                                                                            business days between the hours of
                                                    Commission takes such action, the                                                                              Room.
                                                                                                            10:00 a.m. and 3:00 p.m. Copies of such
                                                    Commission shall institute proceedings                                                                         II. Self-Regulatory Organization’s
                                                                                                            filing also will be available for
                                                      9 15                                                  inspection and copying at the principal                Statement of the Purpose of, and
                                                            U.S.C. 78s(b)(3)(A).
                                                      10 17  CFR 240.19b–4(f)(6)(iii). As required under    office of the Exchange. All comments                   Statutory Basis for, the Proposed Rule
                                                    Rule 19b–4(f)(6)(iii), the Exchange provided the        received will be posted without change;                Change
                                                    Commission with written notice of its intent to file
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                            the Commission does not edit personal                    In its filing with the Commission, the
                                                    the proposed rule change, along with a brief
                                                    description and the text of the proposed rule           identifying information from                           Exchange included statements
                                                    change, at least five business days prior to the date   submissions. You should submit only                    concerning the purpose of and basis for
                                                    of filing of the proposed rule change, or such          information that you wish to make                      the proposed rule change and discussed
                                                    shorter time as designated by the Commission.
                                                       11 For purposes only of waiving the 30-day
                                                                                                            available publicly. All submissions                    any comments it received on the
                                                    operative delay, the Commission has also                should refer to File Number SR–
                                                                                                                                                                     12 17 CFR 200.30–3(a)(12).
                                                    considered the proposed rule’s impact on                NYSEArca-2015–45, and should be
                                                                                                                                                                     1 15 U.S.C. 78s(b)(1).
                                                    efficiency, competition, and capital formation. See     submitted on or before July 8, 2015.
                                                    15 U.S.C. 78c(f).                                                                                                2 17 CFR 240.19b–4.




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Document Created: 2015-12-15 14:23:06
Document Modified: 2015-12-15 14:23:06
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 34756 

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