80_FR_60399 80 FR 60207 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Liquidity Program Until March 31, 2016

80 FR 60207 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Liquidity Program Until March 31, 2016

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 192 (October 5, 2015)

Page Range60207-60208
FR Document2015-25183

Federal Register, Volume 80 Issue 192 (Monday, October 5, 2015) 
[Federal Register Volume 80, Number 192 (Monday, October 5, 2015)]
[Notices]
[Pages 60207-60208]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25183]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76021; File No. SR-NYSEARCA-2013-107]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an 
Extension to Limited Exemption From Rule 612(c) of Regulation NMS in 
Connection With the Exchange's Retail Liquidity Program Until March 31, 
2016

September 29, 2015.
    On December 23, 2013, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted NYSE 
Arca, Inc. (``Exchange'') a limited exemption from the Sub-Penny Rule 
in connection with the operation of the Exchange's Retail Liquidity 
Program (``Program'').\2\ The limited exemption was granted 
concurrently with the Commission's approval of the Exchange's proposal 
to adopt the Program for a one-year pilot term.\3\ The exemption was 
granted coterminous with the effectiveness of the pilot Program; both 
the pilot Program and exemption are scheduled to expire on September 
30, 2015.\4\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 71176 (December 23, 
2013), 78 FR 79524 (December 30, 2013) (SR-NYSEARCA-2013-107) 
(``Order'').
    \3\ See id.
    \4\ The pilot term of the Program was originally scheduled to 
end on April 14, 2015, but the Exchange extended the term through 
September 30, 2015. See Securities Exchange Act Release No. 74572 
(March 24, 2015), 80 FR 16705 (March 30, 2015) (NYSEARCA-2015-22). 
When the pilot term of the Program was extended, the Commission 
granted the Exchange's requests to also extend the Sub-Penny 
exemption through September 30, 2015. See Securities Exchange Act 
Release No. 74609 (March 30, 2015), 80 FR 18272 (April 3, 2015).
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    The Exchange now seeks to extend the exemption until March 31, 
2016.\5\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Program 
through the same date.\6\ In its request to extend the exemption, the 
Exchange notes that the participation in the Program has increased more 
recently. Accordingly, the Exchange has asked for additional time to 
allow itself and the Commission to analyze more robust data concerning 
the Program, which the Exchange committed to provide to the 
Commission.\7\ For this reason and the reasons stated in the Order 
originally granting the limited exemption, the Commission finds that 
extending the exemption, pursuant to its authority under Rule 612(c) of 
Regulation NMS, is appropriate in the public interest and consistent 
with the protection of investors.
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    \5\ See Letter from Martha Redding, Assistant Secretary, NYSE, 
to Brent J. Fields, Secretary, Securities and Exchange Commission, 
dated September 17, 2015.
    \6\ See Securities Exchange Act Release No. 75994 (September 28, 
2015),--FR--(SR-NYSEARCA-2015-84).
    \7\ See Order, supra note 2, 78 FR at 79529.
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    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows it to accept and rank orders priced 
equal to or greater than $1.00 per share in increments of $0.001, in 
connection with the operation of its Retail Liquidity Program, until 
March 31, 2016.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time, the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the

[[Page 60208]]

persons relying on the exemption that is the subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(83).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-25183 Filed 10-2-15; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 192 / Monday, October 5, 2015 / Notices 60207 thereunder.15 The proposed rule change amendments, all written statements adopt the Program for a one-year pilot effects a change that (A) does not with respect to the proposed rule term.3 The exemption was granted significantly affect the protection of change that are filed with the coterminous with the effectiveness of investors or the public interest; (B) does Commission, and all written the pilot Program; both the pilot not impose any significant burden on communications relating to the Program and exemption are scheduled competition; and (C) by its terms, does proposed rule change between the to expire on September 30, 2015.4 not become operative for 30 days after Commission and any person, other than The Exchange now seeks to extend the date of the filing, or such shorter those that may be withheld from the the exemption until March 31, 2016.5 time as the Commission may designate public in accordance with the The Exchange’s request was made in if consistent with the protection of provisions of 5 U.S.C. 552, will be conjunction with an immediately investors and the public interest; available for Web site viewing and effective filing that extends the provided that the self-regulatory printing in the Commission’s Public operation of the Program through the organization has given the Commission Reference Room, 100 F Street NE., same date.6 In its request to extend the written notice of its intent to file the Washington, DC 20549 on official exemption, the Exchange notes that the proposed rule change, along with a brief business days between the hours of participation in the Program has description and text of the proposed 10:00 a.m. and 3:00 p.m. Copies of such increased more recently. Accordingly, rule change, at least five business days filing also will be available for the Exchange has asked for additional prior to the date of filing of the inspection and copying at the principal time to allow itself and the Commission proposed rule change, or such shorter office of the Exchange. All comments to analyze more robust data concerning time as designated by the Commission. received will be posted without change; the Program, which the Exchange At any time within 60 days of the the Commission does not edit personal committed to provide to the filing of the proposed rule change, the identifying information from Commission.7 For this reason and the Commission may summarily submissions. You should submit only reasons stated in the Order originally temporarily suspend such rule change if information that you wish to make granting the limited exemption, the it appears to the Commission that such available publicly. All submissions Commission finds that extending the action is: (1) Necessary or appropriate in should refer to File Number SR–EDGA– exemption, pursuant to its authority the public interest; (2) for the protection 2015–37, and should be submitted on or under Rule 612(c) of Regulation NMS, is of investors; or (3) otherwise in before October 26, 2015. appropriate in the public interest and furtherance of the purposes of the Act. For the Commission, by the Division of consistent with the protection of If the Commission takes such action, the Trading and Markets, pursuant to delegated investors. Commission shall institute proceedings authority.16 Therefore, it is hereby ordered that, to determine whether the proposed rule Robert W. Errett, pursuant to Rule 612(c) of Regulation should be approved or disapproved. Deputy Secretary. NMS, the Exchange is granted a limited IV. Solicitation of Comments [FR Doc. 2015–25179 Filed 10–2–15; 8:45 am] exemption from Rule 612 of Regulation Interested persons are invited to BILLING CODE 8011–01–P NMS that allows it to accept and rank submit written data, views, and orders priced equal to or greater than arguments concerning the foregoing, $1.00 per share in increments of $0.001, SECURITIES AND EXCHANGE in connection with the operation of its including whether the proposed rule COMMISSION Retail Liquidity Program, until March change is consistent with the Act. Comments may be submitted by any of [Release No. 34–76021; File No. SR– 31, 2016. the following methods: NYSEARCA–2013–107] The limited and temporary exemption extended by this Order is subject to Electronic Comments Self-Regulatory Organizations; NYSE modification or revocation if at any • Use the Commission’s Internet Arca, Inc.; Order Granting an time, the Commission determines that comment form (http://www.sec.gov/ Extension to Limited Exemption From such action is necessary or appropriate rules/sro.shtml); or Rule 612(c) of Regulation NMS in in furtherance of the purposes of the • Send an email to rule-comments@ Connection With the Exchange’s Retail Securities Exchange Act of 1934. sec.gov. Please include File Number SR– Liquidity Program Until March 31, 2016 Responsibility for compliance with any EDGA–2015–37 on the subject line. applicable provisions of the Federal September 29, 2015. Paper Comments On December 23, 2013, the Securities securities laws must rest with the • Send paper comments in triplicate and Exchange Commission 3 See id. to Brent J. Fields, Secretary, Securities (‘‘Commission’’) issued an order 4 The pilot term of the Program was originally and Exchange Commission, 100 F Street pursuant to its authority under Rule scheduled to end on April 14, 2015, but the NE., Washington, DC 20549–1090. 612(c) of Regulation NMS (‘‘Sub-Penny Exchange extended the term through September 30, All submissions should refer to File Rule’’) 1 that granted NYSE Arca, Inc. 2015. See Securities Exchange Act Release No. (‘‘Exchange’’) a limited exemption from 74572 (March 24, 2015), 80 FR 16705 (March 30, Number SR–EDGA–2015–37. This file 2015) (NYSEARCA–2015–22). When the pilot term number should be included on the the Sub-Penny Rule in connection with of the Program was extended, the Commission subject line if email is used. To help the the operation of the Exchange’s Retail granted the Exchange’s requests to also extend the Commission process and review your Liquidity Program (‘‘Program’’).2 The Sub-Penny exemption through September 30, 2015. limited exemption was granted See Securities Exchange Act Release No. 74609 mstockstill on DSK4VPTVN1PROD with NOTICES comments more efficiently, please use (March 30, 2015), 80 FR 18272 (April 3, 2015). only one method. The Commission will concurrently with the Commission’s 5 See Letter from Martha Redding, Assistant post all comments on the Commission’s approval of the Exchange’s proposal to Secretary, NYSE, to Brent J. Fields, Secretary, Internet Web site (http://www.sec.gov/ Securities and Exchange Commission, dated 16 17 CFR 200.30–3(a)(12). September 17, 2015. rules/sro.shtml). Copies of the 1 17 CFR 242.612(c). 6 See Securities Exchange Act Release No. 75994 submission, all subsequent 2 See Securities Exchange Act Release No. 71176 (September 28, 2015),—FR—(SR–NYSEARCA– (December 23, 2013), 78 FR 79524 (December 30, 2015–84). 15 17 CFR 240.19b–4. 2013) (SR–NYSEARCA–2013–107) (‘‘Order’’). 7 See Order, supra note 2, 78 FR at 79529. VerDate Sep<11>2014 18:34 Oct 02, 2015 Jkt 238001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 E:\FR\FM\05OCN1.SGM 05OCN1

60208 Federal Register / Vol. 80, No. 192 / Monday, October 5, 2015 / Notices persons relying on the exemption that is of the most significant parts of such (including orders/quotes, requests for the subject of this Order. statements. responses, and trades) for the complex For the Commission, by the Division of order book on a real-time basis.5 A. Self-Regulatory Organization’s The Exchange charges a single fee for Trading and Markets, pursuant to delegated Statement of the Purpose of, and the authority.8 its ArcaBook for Arca Options data Statutory Basis for, the Proposed Rule product, which includes all six of the Robert W. Errett, Change Deputy Secretary. Current Options Products. The [FR Doc. 2015–25183 Filed 10–2–15; 8:45 am] 1. Purpose Exchange also charges a separate fee for ArcaBook for Arca Options—Complex BILLING CODE 8011–01–P The Exchange proposes to modify for subscribers that seek to obtain this certain proprietary options data Current Options Product on a products. SECURITIES AND EXCHANGE standalone basis.6 The Exchange currently offers the COMMISSION The Exchange proposes to modify the following real-time options market data Current Options Products as follows: [Release No. 34–76023; File No. SR– feeds through its ArcaBook for Arca First, the Exchange proposes to NYSEARCA–2015–83] Options data product (collectively, combine in one market data product, ‘‘Current Options Products’’): 3 called ‘‘Arca Options Top,’’ the data Self-Regulatory Organizations; NYSE • ‘‘ArcaBook for Arca Options— made available currently in ‘‘ArcaBook Arca, Inc.; Notice of Filing and Trades’’ makes available NYSE Arca for Arca Options—Trades,’’ ‘‘ArcaBook Immediate Effectiveness of Proposed Options last sale information on a real- for Arca Options—Top of Book,’’ Rule Change Modifying Certain time basis as it is reported to the ‘‘ArcaBook for Arca Options—Series Proprietary Options Data Products Options Price Reporting Authority Status,’’ and ‘‘ArcaBook for Arca (‘‘OPRA’’) and disseminated on a Options—Order Imbalance.’’ Offering a September 29, 2015. consolidated basis under the OPRA Pursuant to Section 19(b)(1) of the data product that combines, in one Plan.4 market data product, last sale data, BBO, Securities Exchange Act of 1934 • ‘‘ArcaBook for Arca Options—Top (‘‘Act’’),1 and Rule 19b–4 thereunder,2 and order imbalance information and of Book’’ makes available NYSE Arca series status messages, would provide notice is hereby given that on Options best bids and offers (‘‘BBO’’) September 18, 2015, NYSE Arca, Inc. greater efficiencies and better (including orders and quotes) on a real- sequencing for vendors and subscribers (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed time basis as reported to OPRA and with the Securities and Exchange that currently choose to integrate the disseminated on a consolidated basis data after receiving it from the Commission (‘‘Commission’’) the under the OPRA Plan. proposed rule change as described in Exchange. As with ArcaBook for Arca • ‘‘ArcaBook for Arca Options— Options—Trades and ArcaBook for Arca Items I, II, and III below, which Items Series Status’’ makes available series have been prepared by the Exchange. Options—Top of Book, Arca Options status messages for each individual Top would provide last sale and BBO The Commission is publishing this options series (and in the case of notice to solicit comments on the information on a real-time basis as complex orders, per-instrument) relating reported to OPRA and disseminated on proposed rule change from interested to events such as a delayed opening or persons. a consolidated basis under the OPRA trading halt. Plan.7 Other exchanges offer options I. Self-Regulatory Organization’s • ‘‘ArcaBook for Arca Options— data products that similarly combine Statement of the Terms of Substance of Order Imbalance’’ makes available order data elements.8 the Proposed Rule Change imbalance information prior to the opening of the market and during a 5 See Rule 6.62(e), which defines complex orders, The Exchange proposes to modify trading halt. and Rule 6.91, that describes electronic complex certain proprietary options data • ‘‘ArcaBook for Arca Options— order trading, including requests for responses. products. The text of the proposed rule Depth of Book’’ makes available NYSE 6 See Securities Exchange Act Release No. 68005 change is available on the Exchange’s Arca Options quotes and orders at the (Oct. 9, 2012), 77 FR 63362 (Oct. 16, 2012) (SR– Web site at www.nyse.com, at the NYSEArca–2012–106) (establishing fees for certain first five price levels in each series on proprietary options market data products). See also principal office of the Exchange, and at a real-time basis. Securities Exchange Act Release Nos. 69523 (May the Commission’s Public Reference • ‘‘ArcaBook for Arca Options— 6, 2013), 78 FR 27452 (May 10, 2013) (SR– Room. Complex’’ makes available NYSE Arca NYSEArca–2013–41) (establishing a schedule of NYSE Arca Options proprietary market data fees); II. Self-Regulatory Organization’s Options quote and trade information 69554 (May 10, 2013), 78 FR 28917 (May 16, 2013) Statement of the Purpose of, and (SR–NYSEArca–2013–47) (establishing non-display Statutory Basis for, the Proposed Rule 3 See Securities Exchange Act Release No. 67720 usage fees and amending the professional end-user (August 23, 2012), 77 FR 52769 (August 30, 2012) fees); 71933 (April 11, 2014), 79 FR 21821 (April Change (SR–NYSEArca–2012–89) (proposing to offer 17, 2014) (SR–NYSEArca–2014–34) (amending the In its filing with the Commission, the certain proprietary options data products). professional user fees); 73010 (Sept. 5, 2014), 79 FR 4 The OPRA Plan is a national market system plan 54307 (Sept. 11, 2014) (SR–NYSEArca 2014–94) self-regulatory organization included (amending fees for non-display use); 73588 (Nov. approved by the Securities and Exchange statements concerning the purpose of, Commission (‘‘Commission’’) pursuant to Section 13, 2014), 79 FR 68922 (Nov. 19, 2014) (SR– and basis for, the proposed rule change 11A of the Securities Exchange Act of 1934 (the NYSEArca–2014–129) (establishing fees for the and discussed any comments it received ‘‘Act’’) and Rule 608 thereunder (formerly Rule complex order book feed). 7 See supra note 4. The manner in which the on the proposed rule change. The text 11Aa3–2). See Securities Exchange Act Release No. 17638 (March 18, 1981), 22 S.E.C. Docket 484 Exchange proposes to disseminate the products mstockstill on DSK4VPTVN1PROD with NOTICES of those statements may be examined at (March 31, 1981). The full text of the OPRA Plan would comply with Section 5.2(c) of the OPRA the places specified in Item IV below. is available at http://www.opradata.com. The OPRA Plan, pursuant to which the Exchange may not The Exchange has prepared summaries, Plan provides for the collection and dissemination disseminate the products ‘‘on any more timely basis of last sale and quotation information on options than the same information is furnished to the OPRA set forth in sections A, B, and C below, System for inclusion in OPRA’s consolidated that are traded on the participant exchanges. Section 5.2(c) of the OPRA Plan also permits OPRA dissemination of Options Information.’’ 8 17 CFR 200.30–3(a)(83). 8 For example, Chicago Board Options Exchange Plan participants to disseminate unconsolidated 1 15 U.S.C. 78s(b)(1). market information to certain of their members (‘‘CBOE’’), NASDAQ Options Market (‘‘NOM’’), and 2 17 CFR 240.19b–4. under certain circumstances. NASDAQ OMX PHLX LLC (‘‘PHLX’’) offer VerDate Sep<11>2014 18:34 Oct 02, 2015 Jkt 238001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 E:\FR\FM\05OCN1.SGM 05OCN1


Document Created: 2015-12-15 08:52:34
Document Modified: 2015-12-15 08:52:34
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 60207 
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