80_FR_37463 80 FR 37338 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .02 to NYSE Amex Options Rule 960NY in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through June 30, 2016

80 FR 37338 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .02 to NYSE Amex Options Rule 960NY in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through June 30, 2016

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 125 (June 30, 2015)

Page Range37338-37340
FR Document2015-15978

Federal Register, Volume 80 Issue 125 (Tuesday, June 30, 2015)
[Federal Register Volume 80, Number 125 (Tuesday, June 30, 2015)]
[Notices]
[Pages 37338-37340]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-15978]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75281; File No. SR-NYSEMKT-2015-43]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending Commentary .02 
to NYSE Amex Options Rule 960NY in Order To Extend the Penny Pilot in 
Options Classes in Certain Issues Through June 30, 2016

June 24, 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 15, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE 
MKT'') 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Commentary .02 to NYSE Amex Options 
Rule 960NY in order to extend the Penny Pilot in options classes in 
certain issues (``Pilot Program'') previously

[[Page 37339]]

approved by the Securities and Exchange Commission (``Commission'') 
through June 30, 2016. The Pilot Program is currently scheduled to 
expire on June 30, 2015. The text of the proposed rule change is 
available on the Exchange's Web site at www.nyse.com, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange hereby proposes to amend Commentary .02 to Exchange 
Rule 960NY to extend the time period of the Pilot Program,\4\ which is 
currently scheduled to expire on June 30, 2015, through June 30, 2016. 
The Exchange also proposes that the dates to replace issues in the 
Pilot Program that have been delisted be revised to the second trading 
day following July 1, 2015 and January 1, 2016.\5\
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    \4\ See Securities Exchange Act Release No. 73778 (December 8, 
2014), 79 FR 73922 (December 12, 2014) (SR-NYSEMKT-2014-99).
    \5\ The month immediately preceding a replacement class's 
addition to the Pilot Program (i.e., June) would not be used for 
purposes of the analysis for determining the replacement class. 
Thus, a replacement class to be added on the second trading day 
following July 1, 2015 would be identified based on The Option 
Clearing Corporation's trading volume data from December 1, 2014 
through May 31, 2015. The Exchange will announce the replacement 
issues to the Exchange's membership through a Trader Update.
---------------------------------------------------------------------------

    This filing does not propose any substantive changes to the Pilot 
Program: all classes currently participating will remain the same and 
all minimum increments will remain unchanged. The Exchange believes the 
benefits to public customers and other market participants who will be 
able to express their true prices to buy and sell options have been 
demonstrated to outweigh the increase in quote traffic.
2. Statutory Basis
    The proposed rule change is consistent with section 6(b) \6\ of the 
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers 
the objectives of section 6(b)(5),\7\ in particular, in that 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, and to remove impediments to and perfect the mechanisms of 
a free and open market and a national market system.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the proposed rule change, which extends the Penny 
Pilot Program for one year, allows the Exchange to continue to 
participate in a program that has been viewed as beneficial to traders, 
investors and public customers and viewed as successful by the other 
options exchanges participating in it. Accordingly, the Exchange 
believes that the proposal is consistent with the Act because it will 
allow the Exchange to extend the Pilot Program prior to its expiration 
on June 30, 2015. The Exchange notes that this proposal does not 
propose any new policies or provisions that are unique or unproven, but 
instead relates to the continuation of an existing program that 
operates on a pilot basis.
    The Exchange believes that the Pilot Program promotes just and 
equitable principles of trade by enabling public customers and other 
market participants to express their true prices to buy and sell 
options to the benefit of all market participants.
    The proposal to extend the Pilot Program is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments to and perfect the mechanisms of 
a free and open market and a national market system, by allowing the 
Exchange and the Commission additional time to analyze the impact of 
the Pilot Program while also allowing the Exchange to continue to 
compete for order flow with other exchanges in option issues trading as 
part of the Pilot Program.

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. Specifically, the Exchange 
believes that, by extending the expiration of the Pilot Program, the 
proposed rule change will allow for further analysis of the Pilot 
Program and a determination of how the Program should be structured in 
the future. In doing so, the proposed rule change will also serve to 
promote regulatory clarity and consistency, thereby reducing burdens on 
the marketplace and facilitating investor protection. The Pilot Program 
is an industry-wide initiative supported by all other option exchanges. 
The Exchange believes that extending the Pilot Program will allow for 
continued competition between NYSE Amex Options market participants 
trading similar products as their counterparts on other exchanges, 
while at the same time allowing the Exchange to continue to compete for 
order flow with other exchanges in option issues trading as part of the 
Pilot Program.

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

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

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

    The Exchange has filed the proposed rule change pursuant to section 
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative prior to 30 days after the date of the 
filing.\11\ However,

[[Page 37340]]

pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission may designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has asked the 
Commission to waive the 30-day operative delay so that the proposal may 
become operative immediately upon filing. The Commission believes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest because doing so will allow the Pilot 
Program to continue without interruption in a manner that is consistent 
with the Commission's prior approval of the extension and expansion of 
the Pilot Program and will allow the Exchange and the Commission 
additional time to analyze the impact of the Pilot Program.\13\ 
Accordingly, the Commission designates the proposed rule change as 
operative upon filing with the Commission.\14\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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 satisfied this pre-filing requirement.
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ See Securities Exchange Act Release No. 61061 (November 24, 
2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44). See 
also supra note 4.
    \14\ For purposes only of waiving the operative delay for this 
proposal, the Commission has 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 such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
section 19(b)(2)(B) \15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSEMKT-2015-43 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-NYSEMKT-2015-43. 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 Section, 100 F Street 
NE., Washington, DC 20549-1090 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-NYSEMKT-2015-43 and should be submitted 
on or before July 21, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-15978 Filed 6-29-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                    37338                          Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices

                                                    C. Self-Regulatory Organization’s                       Commission designates the proposed                     printing in the Commission’s Public
                                                    Statement on Comments on the                            rule change as operative upon filing                   Reference Room, 100 F Street, NE.,
                                                    Proposed Rule Change Received From                      with the Commission.16                                 Washington, DC 20549–1090 on official
                                                    Members, Participants, or Others                           At any time within 60 days of the                   business days between the hours of
                                                      The Exchange neither solicited nor                    filing of such proposed rule change, the               10:00 a.m. and 3:00 p.m. Copies of the
                                                    received comments on the proposed                       Commission summarily may                               filing also will be available for
                                                    rule change.                                            temporarily suspend such rule change if                inspection and copying at the principal
                                                                                                            it appears to the Commission that such                 office of the Exchange. All comments
                                                    III. Date of Effectiveness of the                       action is necessary or appropriate in the              received will be posted without change;
                                                    Proposed Rule Change and Timing for                     public interest, for the protection of                 the Commission does not edit personal
                                                    Commission Action                                       investors, or otherwise in furtherance of              identifying information from
                                                       The Exchange has filed the proposed                  the purposes of the Act. If the                        submissions. You should submit only
                                                    rule change pursuant to Section                         Commission takes such action, the                      information that you wish to make
                                                    19(b)(3)(A)(iii) of the Act 10 and Rule                 Commission shall institute proceedings                 available publicly. All submissions
                                                    19b–4(f)(6) thereunder.11 Because the                   under Section 19(b)(2)(B) 17 of the Act to             should refer to File Number SR–CBOE–
                                                    proposed rule change does not: (i)                      determine whether the proposed rule                    2015–060 and should be submitted on
                                                    Significantly affect the protection of                  change should be approved or                           or before July 21, 2015.
                                                    investors or the public interest; (ii)                  disapproved.                                             For the Commission, by the Division of
                                                    impose any significant burden on                        IV. Solicitation of Comments                           Trading and Markets, pursuant to delegated
                                                    competition; and (iii) become operative                                                                        authority.18
                                                    prior to 30 days from the date on which                   Interested persons are invited to                    Robert W. Errett,
                                                    it was filed, or such shorter time as the               submit written data, views, and
                                                                                                                                                                   Deputy Secretary.
                                                    Commission may designate, if                            arguments concerning the foregoing,
                                                                                                                                                                   [FR Doc. 2015–15983 Filed 6–29–15; 8:45 am]
                                                    consistent with the protection of                       including whether the proposed rule
                                                                                                            change is consistent with the Act.                     BILLING CODE 8011–01–P
                                                    investors and the public interest, the
                                                    proposed rule change has become                         Comments may be submitted by any of
                                                    effective pursuant to Section 19(b)(3)(A)               the following methods:
                                                                                                                                                                   SECURITIES AND EXCHANGE
                                                    of the Act and Rule 19b–4(f)(6)(iii)                    Electronic Comments                                    COMMISSION
                                                    thereunder.                                               • Use the Commission’s Internet
                                                       A proposed rule change filed under                                                                          [Release No. 34–75281; File No. SR–
                                                                                                            comment form (http://www.sec.gov/                      NYSEMKT–2015–43]
                                                    Rule 19b–4(f)(6) 12 normally does not
                                                                                                            rules/sro.shtml); or
                                                    become operative prior to 30 days after                   • Send an email to rule-comments@                    Self-Regulatory Organizations; NYSE
                                                    the date of the filing.13 However,                                                                             MKT LLC; Notice of Filing and
                                                                                                            sec.gov. Please include File Number SR–
                                                    pursuant to Rule 19b–4(f)(6)(iii),14 the                                                                       Immediate Effectiveness of Proposed
                                                                                                            CBOE–2015–060 on the subject line.
                                                    Commission may designate a shorter                                                                             Rule Change Amending Commentary
                                                    time if such action is consistent with the              Paper Comments                                         .02 to NYSE Amex Options Rule 960NY
                                                    protection of investors and the public                    • Send paper comments in triplicate                  in Order To Extend the Penny Pilot in
                                                    interest. The Exchange has asked the                    to Secretary, Securities and Exchange                  Options Classes in Certain Issues
                                                    Commission to waive the 30-day                          Commission, 100 F Street, NE.,                         Through June 30, 2016
                                                    operative delay so that the proposal may                Washington, DC 20549–1090.
                                                    become operative immediately upon                       All submissions should refer to File                   June 24, 2015.
                                                    filing. The Commission believes that                    Number SR–CBOE–2015–060. This file                        Pursuant to section 19(b)(1) 1 of the
                                                    waiving the 30-day operative delay is                   number should be included on the                       Securities Exchange Act of 1934 (the
                                                    consistent with the protection of                       subject line if email is used. To help the             ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                    investors and the public interest                       Commission process and review your                     notice is hereby given that on June 15,
                                                    because doing so will allow the Pilot                   comments more efficiently, please use                  2015, NYSE MKT LLC (the ‘‘Exchange’’
                                                    Program to continue without                             only one method. The Commission will                   or ‘‘NYSE MKT’’) filed with the
                                                    interruption in a manner that is                        post all comments on the Commission’s                  Securities and Exchange Commission
                                                    consistent with the Commission’s prior                  Internet Web site (http://www.sec.gov/                 (the ‘‘Commission’’) the proposed rule
                                                    approval of the extension and expansion                 rules/sro.shtml). Copies of the                        change as described in Items I and II
                                                    of the Pilot Program and will allow the                 submission, all subsequent                             below, which Items have been prepared
                                                    Exchange and the Commission                             amendments, all written statements                     by the self-regulatory organization. The
                                                    additional time to analyze the impact of                with respect to the proposed rule                      Commission is publishing this notice to
                                                    the Pilot Program.15 Accordingly, the                   change that are filed with the                         solicit comments on the proposed rule
                                                                                                            Commission, and all written                            change from interested persons.
                                                      10 15  U.S.C. 78s(b)(3)(A)(iii).
                                                      11 17  CFR 240.19b–4(f)(6).
                                                                                                            communications relating to the                         I. Self-Regulatory Organization’s
                                                      12 17 CFR 240.19b–4(f)(6).                            proposed rule change between the                       Statement of the Terms of Substance of
                                                      13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–     Commission and any person, other than                  the Proposed Rule Change
                                                    4(f)(6)(iii) requires the Exchange to give the          those that may be withheld from the                       The Exchange proposes to amend
                                                    Commission written notice of the Exchange’s intent      public in accordance with the
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    to file the proposed rule change along with a brief                                                            Commentary .02 to NYSE Amex Options
                                                    description and the text of the proposed rule
                                                                                                            provisions of 5 U.S.C. 552, will be                    Rule 960NY in order to extend the
                                                    change, at least five business days prior to the date   available for Web site viewing and                     Penny Pilot in options classes in certain
                                                    of filing of the proposed rule change, or such
                                                    shorter time as designated by the Commission. The          16 For purposes only of waiving the operative
                                                                                                                                                                   issues (‘‘Pilot Program’’) previously
                                                    Exchange has satisfied this pre-filing requirement.     delay for this proposal, the Commission has
                                                      14 17 CFR 240.19b–4(f)(6)(iii).                                                                                18 17 CFR 200.30–3(a)(12).
                                                                                                            considered the proposed rule’s impact on
                                                                                                                                                                     1 15 U.S.C. 78s(b)(1).
                                                      15 See Securities Exchange Act Release No. 61061      efficiency, competition, and capital formation. See
                                                    (November 24, 2009), 74 FR 62857 (December 1,           15 U.S.C. 78c(f).                                        2 15 U.S.C. 78a.

                                                    2009) (SR–NYSEArca–2009–44).                               17 15 U.S.C. 78s(b)(2)(B).                            3 17 CFR 240.19b–4.




                                               VerDate Sep<11>2014   17:34 Jun 29, 2015   Jkt 235001   PO 00000   Frm 00120   Fmt 4703   Sfmt 4703   E:\FR\FM\30JNN1.SGM     30JNN1


                                                                                   Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices                                                       37339

                                                    approved by the Securities and                          2. Statutory Basis                                       of the purposes of the Act. Specifically,
                                                    Exchange Commission (‘‘Commission’’)                       The proposed rule change is                           the Exchange believes that, by extending
                                                    through June 30, 2016. The Pilot                        consistent with section 6(b) 6 of the                    the expiration of the Pilot Program, the
                                                    Program is currently scheduled to                       Securities Exchange Act of 1934 (the                     proposed rule change will allow for
                                                    expire on June 30, 2015. The text of the                ‘‘Act’’), in general, and furthers the                   further analysis of the Pilot Program and
                                                    proposed rule change is available on the                objectives of section 6(b)(5),7 in                       a determination of how the Program
                                                    Exchange’s Web site at www.nyse.com,                    particular, in that it is designed to                    should be structured in the future. In
                                                    at the principal office of the Exchange,                prevent fraudulent and manipulative                      doing so, the proposed rule change will
                                                    and at the Commission’s Public                          acts and practices, to promote just and                  also serve to promote regulatory clarity
                                                    Reference Room.                                         equitable principles of trade, to foster                 and consistency, thereby reducing
                                                                                                            cooperation and coordination with                        burdens on the marketplace and
                                                    II. Self-Regulatory Organization’s
                                                                                                            persons engaged in facilitating                          facilitating investor protection. The
                                                    Statement of the Purpose of, and
                                                                                                            transactions in securities, and to remove                Pilot Program is an industry-wide
                                                    Statutory Basis for, the Proposed Rule
                                                                                                            impediments to and perfect the                           initiative supported by all other option
                                                    Change
                                                                                                            mechanisms of a free and open market                     exchanges. The Exchange believes that
                                                      In its filing with the Commission, the                and a national market system.                            extending the Pilot Program will allow
                                                    self-regulatory organization included                      In particular, the proposed rule                      for continued competition between
                                                    statements concerning the purpose of,                   change, which extends the Penny Pilot                    NYSE Amex Options market
                                                    and basis for, the proposed rule change                 Program for one year, allows the                         participants trading similar products as
                                                    and discussed any comments it received                  Exchange to continue to participate in a                 their counterparts on other exchanges,
                                                    on the proposed rule change. The text                   program that has been viewed as                          while at the same time allowing the
                                                    of those statements may be examined at                  beneficial to traders, investors and                     Exchange to continue to compete for
                                                    the places specified in Item IV below.                  public customers and viewed as                           order flow with other exchanges in
                                                    The Exchange has prepared summaries,                    successful by the other options                          option issues trading as part of the Pilot
                                                    set forth in sections A, B, and C below,                exchanges participating in it.                           Program.
                                                    of the most significant parts of such                   Accordingly, the Exchange believes that
                                                                                                                                                                     C. Self-Regulatory Organization’s
                                                    statements.                                             the proposal is consistent with the Act
                                                                                                                                                                     Statement on Comments on the
                                                                                                            because it will allow the Exchange to
                                                    A. Self-Regulatory Organization’s                                                                                Proposed Rule Change Received From
                                                                                                            extend the Pilot Program prior to its
                                                    Statement of the Purpose of, and the                                                                             Members, Participants, or Others
                                                                                                            expiration on June 30, 2015. The
                                                    Statutory Basis for, the Proposed Rule
                                                                                                            Exchange notes that this proposal does                     No written comments were solicited
                                                    Change
                                                                                                            not propose any new policies or                          or received with respect to the proposed
                                                    1. Purpose                                              provisions that are unique or unproven,                  rule change.
                                                                                                            but instead relates to the continuation of
                                                       The Exchange hereby proposes to                                                                               III. Date of Effectiveness of the
                                                                                                            an existing program that operates on a
                                                    amend Commentary .02 to Exchange                        pilot basis.                                             Proposed Rule Change and Timing for
                                                    Rule 960NY to extend the time period                       The Exchange believes that the Pilot                  Commission Action
                                                    of the Pilot Program,4 which is currently               Program promotes just and equitable                         The Exchange has filed the proposed
                                                    scheduled to expire on June 30, 2015,                   principles of trade by enabling public                   rule change pursuant to section
                                                    through June 30, 2016. The Exchange                     customers and other market participants                  19(b)(3)(A)(iii) of the Act 8 and Rule
                                                    also proposes that the dates to replace                 to express their true prices to buy and                  19b–4(f)(6) thereunder.9 Because the
                                                    issues in the Pilot Program that have                   sell options to the benefit of all market                proposed rule change does not: (i)
                                                    been delisted be revised to the second                  participants.                                            Significantly affect the protection of
                                                    trading day following July 1, 2015 and                     The proposal to extend the Pilot                      investors or the public interest; (ii)
                                                    January 1, 2016.5                                       Program is designed to promote just and                  impose any significant burden on
                                                       This filing does not propose any                     equitable principles of trade, to foster                 competition; and (iii) become operative
                                                    substantive changes to the Pilot                        cooperation and coordination with                        prior to 30 days from the date on which
                                                    Program: all classes currently                          persons engaged in facilitating                          it was filed, or such shorter time as the
                                                    participating will remain the same and                  transactions in securities, and to remove                Commission may designate if consistent
                                                    all minimum increments will remain                      impediments to and perfect the                           with the protection of investors and the
                                                    unchanged. The Exchange believes the                    mechanisms of a free and open market                     public interest, the proposed rule
                                                    benefits to public customers and other                  and a national market system, by                         change has become effective pursuant to
                                                    market participants who will be able to                 allowing the Exchange and the                            section 19(b)(3)(A) of the Act and Rule
                                                    express their true prices to buy and sell               Commission additional time to analyze                    19b–4(f)(6)(iii) thereunder.
                                                    options have been demonstrated to                       the impact of the Pilot Program while                       A proposed rule change filed under
                                                    outweigh the increase in quote traffic.                 also allowing the Exchange to continue                   Rule 19b–4(f)(6) 10 normally does not
                                                                                                            to compete for order flow with other                     become operative prior to 30 days after
                                                       4 See Securities Exchange Act Release No. 73778      exchanges in option issues trading as
                                                                                                                                                                     the date of the filing.11 However,
                                                    (December 8, 2014), 79 FR 73922 (December 12,           part of the Pilot Program.
                                                    2014) (SR–NYSEMKT–2014–99).
                                                                                                            B. Self-Regulatory Organization’s                          8 15  U.S.C. 78s(b)(3)(A)(iii).
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                       5 The month immediately preceding a
                                                                                                                                                                       9 17  CFR 240.19b–4(f)(6).
                                                    replacement class’s addition to the Pilot Program       Statement on Burden on Competition
                                                                                                                                                                       10 17 CFR 240.19b–4(f)(6).
                                                    (i.e., June) would not be used for purposes of the
                                                    analysis for determining the replacement class.           The Exchange does not believe that                       11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–

                                                    Thus, a replacement class to be added on the            the proposed rule change will impose                     4(f)(6)(iii) requires the Exchange to give the
                                                    second trading day following July 1, 2015 would be      any burden on competition that is not                    Commission written notice of the Exchange’s intent
                                                    identified based on The Option Clearing                                                                          to file the proposed rule change along with a brief
                                                    Corporation’s trading volume data from December
                                                                                                            necessary or appropriate in furtherance                  description and the text of the proposed rule
                                                    1, 2014 through May 31, 2015. The Exchange will                                                                  change, at least five business days prior to the date
                                                                                                              6 15   U.S.C. 78f(b).
                                                    announce the replacement issues to the Exchange’s                                                                of filing of the proposed rule change, or such
                                                    membership through a Trader Update.                       7 15   U.S.C. 78f(b)(5).                                                                           Continued




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                                                    37340                          Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices

                                                    pursuant to Rule 19b–4(f)(6)(iii),12 the                Paper Comments                                          SECURITIES AND EXCHANGE
                                                    Commission may designate a shorter                                                                              COMMISSION
                                                    time if such action is consistent with the                • Send paper comments in triplicate
                                                    protection of investors and the public                  to Secretary, Securities and Exchange
                                                                                                                                                                    [Release No. 34–75282; File No. SR–
                                                    interest. The Exchange has asked the                    Commission, 100 F Street NE.,
                                                                                                                                                                    NYSEArca–2015–52]
                                                    Commission to waive the 30-day                          Washington, DC 20549–1090.
                                                    operative delay so that the proposal may                All submissions should refer to File                    Self-Regulatory Organizations; NYSE
                                                    become operative immediately upon                       Number SR–NYSEMKT–2015–43. This                         Arca, Inc.; Notice of Filing and
                                                    filing. The Commission believes that                    file number should be included on the                   Immediate Effectiveness of Proposed
                                                    waiving the 30-day operative delay is                                                                           Rule Change Amending NYSE Arca
                                                                                                            subject line if email is used. To help the
                                                    consistent with the protection of                                                                               Equities Rules 7.25 and 8.800 in Order
                                                                                                            Commission process and review your
                                                    investors and the public interest                                                                               To Allow An Issuer to Elect for its
                                                    because doing so will allow the Pilot                   comments more efficiently, please use
                                                                                                            only one method. The Commission will                    Exchange Traded Product to
                                                    Program to continue without
                                                                                                            post all comments on the Commission’s                   Participate in the Crowd Participant
                                                    interruption in a manner that is
                                                    consistent with the Commission’s prior                  Internet Web site (http://www.sec.gov/                  Program or the ETP Incentive Program
                                                    approval of the extension and expansion                 rules/sro.shtml). Copies of the                         Monthly Rather than Quarterly and To
                                                    of the Pilot Program and will allow the                 submission, all subsequent                              Extend the Effectiveness of the Crowd
                                                    Exchange and the Commission                             amendments, all written statements                      Participant Program until June 23,
                                                    additional time to analyze the impact of                with respect to the proposed rule                       2016
                                                    the Pilot Program.13 Accordingly, the                   change that are filed with the
                                                                                                                                                                    June 24, 2015.
                                                    Commission designates the proposed                      Commission, and all written
                                                    rule change as operative upon filing                    communications relating to the                             Pursuant to Section 19(b)(1) 1 of the
                                                    with the Commission.14                                  proposed rule change between the                        Securities Exchange Act of 1934 (the
                                                       At any time within 60 days of the                    Commission and any person, other than                   ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                    filing of such proposed rule change, the                those that may be withheld from the                     notice is hereby given that, on June 18,
                                                    Commission summarily may                                public in accordance with the                           2015, NYSE Arca, Inc. (the ‘‘Exchange’’
                                                    temporarily suspend such rule change if                 provisions of 5 U.S.C. 552, will be                     or ‘‘NYSE Arca’’) filed with the
                                                    it appears to the Commission that such                  available for Web site viewing and                      Securities and Exchange Commission
                                                    action is necessary or appropriate in the               printing in the Commission’s Public                     (the ‘‘Commission’’) the proposed rule
                                                    public interest, for the protection of                  Reference Section, 100 F Street NE.,                    change as described in Items I and II
                                                    investors, or otherwise in furtherance of               Washington, DC 20549–1090 on official                   below, which Items have been prepared
                                                    the purposes of the Act. If the                         business days between the hours of                      by the self-regulatory organization. The
                                                    Commission takes such action, the                       10:00 a.m. and 3:00 p.m. Copies of the                  Commission is publishing this notice to
                                                    Commission shall institute proceedings                  filing will also be available for                       solicit comments on the proposed rule
                                                    under section 19(b)(2)(B) 15 of the Act to              inspection and copying at the NYSE’s                    change from interested persons.
                                                    determine whether the proposed rule
                                                                                                            principal office and on its Internet Web                I. Self-Regulatory Organization’s
                                                    change should be approved or
                                                                                                            site at www.nyse.com. All comments                      Statement of the Terms of the Substance
                                                    disapproved.
                                                                                                            received will be posted without change;                 of the Proposed Rule Change
                                                    IV. Solicitation of Comments                            the Commission does not edit personal
                                                      Interested persons are invited to                     identifying information from                               The Exchange proposes to amend
                                                    submit written data, views, and                         submissions. You should submit only                     NYSE Arca Equities Rule 7.25 (‘‘Rule
                                                    arguments concerning the foregoing,                     information that you wish to make                       7.25’’) and NYSE Arca Equities Rule
                                                    including whether the proposed rule                     available publicly. All submissions                     8.800 (‘‘Rule 8.800) in order to (1) allow
                                                    change is consistent with the Act.                      should refer to File Number SR–                         an issuer to elect for its Exchange
                                                    Comments may be submitted by any of                     NYSEMKT–2015–43 and should be                           Traded Product (‘‘ETP’’) listed on the
                                                    the following methods:                                  submitted on or before July 21, 2015.                   Exchange to participate in the Crowd
                                                                                                              For the Commission, by the Division of                Participant (‘‘CP’’) program (the ‘‘CP
                                                    Electronic Comments
                                                                                                            Trading and Markets, pursuant to delegated              Program’’) or the ETP Incentive Program
                                                      • Use the Commission’s Internet                       authority.16                                            (the ‘‘ETP Incentive Program’’),
                                                    comment form (http://www.sec.gov/                       Robert W. Errett,                                       respectively, at the time of listing or
                                                    rules/sro.shtml); or                                                                                            thereafter at the beginning of each
                                                                                                            Deputy Secretary.
                                                      • Send an email to rule-comments@                                                                             month, rather than just at the beginning
                                                                                                            [FR Doc. 2015–15978 Filed 6–29–15; 8:45 am]
                                                    sec.gov. Please include File Number SR–                                                                         of each quarter; and (2) extend the
                                                    NYSEMKT–2015–43 on the subject line.                    BILLING CODE 8011–01–P
                                                                                                                                                                    effectiveness of the CP Program for an
                                                                                                                                                                    additional one-year pilot period, ending
                                                    shorter time as designated by the Commission. The                                                               June 23, 2016. The text of the proposed
                                                    Exchange has satisfied this pre-filing requirement.
                                                       12 17 CFR 240.19b–4(f)(6)(iii).
                                                                                                                                                                    rule change is available on the
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                                                       13 See Securities Exchange Act Release No. 61061                                                             Exchange’s Web site at www.nyse.com,
                                                    (November 24, 2009), 74 FR 62857 (December 1,                                                                   at the principal office of the Exchange,
                                                    2009) (SR–NYSEArca–2009–44). See also supra                                                                     and at the Commission’s Public
                                                    note 4.
                                                       14 For purposes only of waiving the operative
                                                                                                                                                                    Reference Room.
                                                    delay for this proposal, the Commission has
                                                    considered the proposed rule’s impact on
                                                                                                                                                                     1 15 U.S.C.78s(b)(1).
                                                    efficiency, competition, and capital formation. See
                                                                                                                                                                     2 15 U.S. C. 78a.
                                                    15 U.S.C. 78c(f).
                                                       15 15 U.S.C. 78s(b)(2)(B).                             16 17   CFR 200.30–3(a)(12).                           3 17 CFR 240.19b–4.




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Document Created: 2018-02-22 11:17:00
Document Modified: 2018-02-22 11:17:00
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 37338 

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