80_FR_65480 80 FR 65274 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change, and Notice of Filing and Order Granting Accelerated Approval of Amendment No. 1 Thereto, Adopting New Equity Trading Rules Relating to Trading Halts, Short Sales, Limit Up-Limit Down, and Odd Lots and Mixed Lots To Reflect the Implementation of Pillar, the Exchange's New Trading Technology Platform

80 FR 65274 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change, and Notice of Filing and Order Granting Accelerated Approval of Amendment No. 1 Thereto, Adopting New Equity Trading Rules Relating to Trading Halts, Short Sales, Limit Up-Limit Down, and Odd Lots and Mixed Lots To Reflect the Implementation of Pillar, the Exchange's New Trading Technology Platform

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 206 (October 26, 2015)

Page Range65274-65277
FR Document2015-27069

Federal Register, Volume 80 Issue 206 (Monday, October 26, 2015) 
[Federal Register Volume 80, Number 206 (Monday, October 26, 2015)]
[Notices]
[Pages 65274-65277]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27069]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76198; File No. SR-NYSEArca-2015-58]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving 
Proposed Rule Change, and Notice of Filing and Order Granting 
Accelerated Approval of Amendment No. 1 Thereto, Adopting New Equity 
Trading Rules Relating to Trading Halts, Short Sales, Limit Up-Limit 
Down, and Odd Lots and Mixed Lots To Reflect the Implementation of 
Pillar, the Exchange's New Trading Technology Platform

October 20, 2015.

I. Introduction

    On July 1, 2015, NYSE Arca, Inc. (the ``Exchange'' or ``Arca'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
adopt new equity trading rules relating to Trading Halts, Short Sales, 
Limit Up-Limit Down, and Odd Lots and Mixed Lots to reflect the 
implementation of Pillar, the Exchange's new trading technology 
platform. The proposed rule change was published for comment in the 
Federal Register on July 16, 2015.\3\ The Commission received no 
comment letters on the proposed rule change. On September 1, 2015, 
pursuant to Section 19(b)(2) of the Act,\3\ the Commission designated a 
longer period within which to approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether to approve or disapprove the proposed rule change.\4\ 
On October 15, 2015, the Exchange filed Amendment No. 1 to the 
proposal.\5\ The Commission is publishing this notice to solicit 
comment on Amendment No. 1 from interested persons, and is approving 
the proposed rule change, as modified by Amendment No. 1, on an 
accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4
    \3\ See Securities Exchange Act Release No. 75467 (July 22, 
2015), 80 FR 43515 (``Notice'').
    \3\ 15 U.S.C. 78s(b)(2).
    \4\ See Securities Exchange Act Release No. 75800, 80 FR 53911 
(September 8, 2015).
    \5\ In Amendment No. 1, the Exchange: (i) Removes an erroneous 
reference to subparagraph (6) from proposed Rule 7.11P(b); (ii) 
amends proposed Rule 7.16P(f)(5)(A) to add the phrase ``or lower 
than'' to clarify that short sale orders with a working price and/or 
display price below the NBB would also be re-priced to a Permitted 
Price; (iii) amend proposed Rule 7.16P(f)(5)(C) to clarify that the 
Exchange would treat all odd lot orders ranked Priority 2--Display 
Orders in the same manner as Market Orders and other non-displayed 
orders; (iv) amend proposed Rule 7.16P(f)(5)(D) to provide that all 
Pegged Orders and MPL Orders, including orders marked buy, sell 
long, and sell short exempt, would use the NBBO instead of the PBBO 
as the reference price; (v) amend proposed Rule 7.18P(b)(6) to 
specify that the Exchange would reject all ``incoming order 
instructions'' during a UTP Regulatory Halt other than those 
specified in proposed Rules 7.18P(b)(1)-(5); (vi) amend footnote 44 
of the Notice to add a reference to Limit IOC Orders designated with 
an MTS, change the rule reference for MPL-IOC Orders from Rule 
7.31P(c)(3)(E) to Rule 7.31P(d)(3)(E), and add a reference to Day 
ISO ALO Orders; and (vii) amend Rule 7.38P(b)(1) to add that if the 
limit price of an odd lot order to buy (sell) is above (below) the 
PBO (PBB), and the PBBO is crossed, it would have a working price 
equal to the PBB (PBO) to ensure that an odd lot order to buy (sell) 
would not have a working price below (above) the PBB (PBO).
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II. Description of the Proposed Rule Change

    The Exchange proposes to adopt new equity trading rules relating to 
the implementation of Pillar, the Exchange's new trading technology 
platform. The Exchange proposes to adopt the following new Pillar 
rules: (1) Definition of ``Official Closing Price'' (NYSE Arca Equities 
Rule 1.1 (``Rule 1.1'')); (2) Clearly Erroneous Executions (NYSE Arca 
Equities Rule 7.10P (``Rule 7.10P'')); (3) Limit Up--Limit Down Plan 
and Trading Pauses in Individual Securities Due to Extraordinary Market 
Volatility (NYSE Arca Equities Rule 7.11P (``Rule 7.11P'')); \6\ (4) 
Short Sales (NYSE Arca Equities Rule 7.16P (``Rule 7.16P'')); (5) 
Trading Halts (NYSE Arca Equities Rule 7.18P (``Rule 7.18P'')); and (6) 
Odd and Mixed Lots (NYSE Arca Equities Rule 7.38P (``Rule 7.38P'')). In 
addition, the proposed new rules to support Pillar in this filing would 
use the terms and definitions that were proposed in the Pillar I Filing 
and Pillar II Filing.\7\ The Exchange also proposes to amend existing 
definitions in Rule 1.1.
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    \6\ Rule 7.11 and proposed Rule 7.11P implement the Plan to 
Address Extraordinary Market Volatility pursuant to Rule 608 of 
Regulation NMS (``LULD Plan''). See Securities Exchange Act Release 
No. 67091 (May 31, 2012), 77 FR 33498 (June 6, 2012) (File No. 4-
631) (Order approving the LULD Plan).
    \7\ See infra notes 9 and 10.
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A. Background

    The Exchange represents that Pillar is an integrated trading 
technology platform designed to use a single specification for 
connecting to the equities and options markets operated by Arca and its 
affiliates, New York Stock Exchange LLC (``NYSE'') and NYSE MKT LLC 
(``NYSE MKT'').\8\ On April 30, 2015, the Exchange filed its first rule 
filing relating to the implementation of Pillar, which proposed to 
adopt new rules relating to Trading Sessions, Order Ranking and 
Display, and Order Execution.\9\ On June 26, 2015, the Exchange filed 
the second rule filing relating to the implementation of Pillar to 
adopt new rules relating to Orders and Modifiers and the Retail 
Liquidity Program.\10\
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    \8\ See Notice at 43516.
    \9\ See Securities Exchange Act Release No. 74951 (May 13, 
2015), 80 FR 28721 (May 19, 2015) (SR-NYSEArca-2015-38) (``Pillar I 
Filing''). The Commission approved the Pillar I Filing on July 20, 
2015. See Securities Exchange Act Release No. 75494 (July 20, 2015), 
80 FR 44170 (July 24, 2015)
    \10\ See Securities Exchange Act Release No. 75497 (July 21, 
2015), 80 FR 45022 (July 28, 2015) (notice of SR-NYSEArca-2015-56) 
(``Pillar II Filing'').
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    This filing is the third set of proposed rule changes to support 
Pillar implementation. As proposed, the new rules governing trading on 
Pillar would have the same numbering as current rules, but with the 
modifier ``P'' appended to the rule number. The Exchange proposes that 
rules with a ``P'' modifier would operate for symbols that are trading 
on the Pillar trading platform. If a symbol is trading on the Pillar 
trading platform, a rule with the same number as a rule with a ``P'' 
modifier would no longer operate for

[[Page 65275]]

that symbol and the Exchange would announce by Trader Update when 
symbols are trading on the Pillar trading platform. Definitions that do 
not have a companion version with a ``P'' modifier would continue to 
operate for all symbols.

B. Proposed Modifications

    As described in detail in the Notice, Rules 7.10P, 7.11P, 7.16P, 
7.18P, and 7.38P incorporate much of the substance of current NYSE Arca 
Rules 7.10, 7.11, 7.16, 7.18, and 7.38, respectively. However, with 
Pillar, the Exchange would introduce new terminology, reorganize and 
redraft certain provisions to improve clarity, and provide additional 
detail to other current provisions being redesignated. The Exchange 
also proposes to make several changes that are more substantive in 
nature, as follows:
     Adopt a new definition in Pillar to define the term 
``Official Closing Price,'' which would mean the reference price to 
determine the closing price in a security for purposes of Rule 7 
Equities Trading; \11\
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    \11\ See proposed Rule 1.1(ggP); see also Notice at 43517. 
Proposed Rule 1.1(ggP)(1) would describe how the Official Closing 
Price would be determined for securities listed on the Exchange. As 
proposed, the Official Closing Price would be the price established 
in a Closing Auction of one round lot or more on a trading day. 
Because there may be circumstances when there is insufficient 
trading interest to have a closing auction trade of one round lot or 
more, the Exchange proposes to specify what price the Exchange would 
use as its Official Closing Price when there is no auction or a 
closing trade of less than a round lot. As proposed, if there is no 
Closing Auction or if a Closing Auction trade is less than a round 
lot on a trading day, the Official Closing Price would be the most 
recent consolidated last sale eligible trade during Core Trading 
Hours on that trading day. The rule would further provide that if 
there were no consolidated last sale eligible trades during Core 
Trading Hours on that trading day, the Official Price would be the 
prior trading day's Official Closing Price.
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     during Core Trading Hours, the Exchange would halt trading 
during a UTP Regulatory Halt until it receives the first Price Band in 
a UTP Security; \12\
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    \12\ See proposed Rule 7.18P(a); see also Notice at 43518.
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     the Exchange would not conduct any Trading Halt Auctions 
in UTP Securities; \13\
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    \13\ See proposed rule 7.18P(b)(1); see also Notice at 43518.
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     Pegged Orders would not be cancelled during a UTP 
Regulatory Halt; \14\
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    \14\ See id.
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     During a UTP Regulatory Halt, the Exchange would process a 
request to cancel and replace as a cancellation without replacing the 
order; \15\
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    \15\ See proposed rule 7.18P(b)(4); see also Notice at 43519.
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     During a UTP Regulatory Halt, the Exchange would accept 
and route new Market Orders, Auction-Only Orders, Primary Only Market-
on-Open (``MOO'')/Limit on Open (``LOO'') Orders, Primary Only Day 
Orders, and Primary Only Market-on-Close (``MOC'')/Limit-on-Close 
(``LOC'') Orders to the primary listing market; \16\
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    \16\ See proposed rule 7.18P(b)(5); see also Notice at 43519.
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     As described more fully in the Notice, because Exchange-
listed securities would be eligible to participate in a Trading Halt 
Auction, the Exchange proposes to process orders in Exchange-listed 
securities differently than how it would process orders in UTP 
Securities; \17\
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    \17\ See proposed rule 7.18P(c); see also Notice at 43519.
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     As described more fully in the Notice, because of proposed 
substantive differences to how certain orders and modifiers would 
operate, the Exchange proposes different handling of certain orders in 
Pillar to comply with the requirements of Rule 201 of Regulation SHO 
(``Rule 201''); \18\
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    \18\ 17 CFR 242.201. See proposed rule 7.16P; see also Notice at 
43520-43523.
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     The Exchange would use the Official closing Price for 
purposes of determining the Trigger Price for the Short Sale Price Test 
in exchange-listed securities; \19\
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    \19\ See proposed rule 7.16P(f)(2); see also Notice at 43520.
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     An Exchange Trading Permit (``ETP'') Holder's instruction 
to reject back individual short sale orders subject to the short sale 
price test would apply to resting orders; \20\ and
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    \20\ See proposed rule 7.16P(f)(5)(B); see also Notice at 43521.
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     As described more fully in the Notice, the Exchange would 
expand the number of order types that would be eligible for optional 
re-pricing instructions pursuant to the LULD Plan; \21\
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    \21\ See proposed rule 7.11P; see also Notice at 43523-43525. In 
addition, rather than specifying which order types would be eligible 
for re-pricing instructions, the Exchange would enumerate which 
order types would not be eligible for repricing instructions. See 
proposed rule 7.11P(a)(6)(A); see also Notice at 43523-43524.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act \22\ and the 
rules and regulations thereunder applicable to a national securities 
exchange.\23\ In particular, the Commission finds that the proposed 
rule change is consistent with Section 6(b)(5) of the Act,\24\ which 
requires, among other things, that the rules of a national securities 
exchange be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest and that the 
rules are not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \22\ 15 U.S.C. 78f.
    \23\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \24\ 15 U.S.C. 78f(b)(5).
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    The Commission notes that the Exchange believes that the proposed 
rules would remove impediments to and perfect the mechanism of a free 
and open market because the proposed rule set would promote 
transparency by using consistent terminology governing equities 
trading, and by clearly denoting the rules that govern once a symbol 
has been migrated to the Pillar platform.\25\
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    \25\ See Notice at 43526.
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    With respect to the proposed changes to Rule 1.1, the Commission 
notes that the Exchange believes that the proposed amendments would 
remove impediments to and perfect the mechanism of a fair and orderly 
market because they would not make any substantive changes to Exchange 
rules, but rather are designed to reduce confusion by eliminating 
obsolete references and terms and therefore streamline the Exchange's 
rules. The Commission also notes that the Exchange further believes 
that the proposed new definition for the term ``Official Closing 
Price'' would remove impediments to and perfect the mechanism of a fair 
and orderly market because the proposed definition would promote 
transparency regarding the reference price the Exchange would use in 
Pillar for purposes of calculating Trading Collars, pursuant to 
proposed Rule 7.31P(a)(1)(B), and for purposes of determining a Trigger 
Price pursuant to proposed Rule 7.16P(f)(2).\26\
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    \26\ See id.
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    For determining the Official Closing Price, the Exchange states 
that it believes that in the absence of a Closing Auction of a round 
lot or more, the most recent consolidated last sale eligible trade 
during Core Trading Hours best approximates the market's determination 
of the appropriate price of such securities.\27\ In addition, the

[[Page 65276]]

Exchange states that it believes that using only those trades that 
occur during Core Trading Hours that are last sale eligible would 
remove impediments to and perfect the mechanism of a fair and orderly 
market because the lower liquidity during the Early and Late Trading 
Sessions may mean that trades occurring during those sessions may not 
be as representative of the price of the security and odd-lot trades 
may indicate an anomalous trade.\28\
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    \27\ See id.
    \28\ See id.
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    With respect to proposed Rule 7.10P, regarding clearly erroneous 
executions, the Commission notes that the Exchange represents that the 
proposal would remove impediments to and perfect the mechanism of a 
fair and orderly market because it would use Pillar terminology, 
without any substantive differences from current Rule 7.10.\29\
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    \29\ See Notice at 43527.
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    With respect to proposed Rule 7.11P, the Commission notes that the 
Exchange believes that the proposed substantive difference to expand 
the number of Limit Orders eligible for re-pricing instructions would 
be consistent with the LULD Plan, and therefore would remove 
impediments to and perfect the mechanism of a fair and orderly market, 
because the proposed re-pricing of such orders would assure that such 
orders would not trade at or be displayed at prices outside of the 
Price Bands.\30\ The Exchange further states that it believes that 
expanding the number of orders eligible for re-pricing instructions 
would provide ETP Holders with more options regarding how orders would 
be processed in compliance with the LULD Plan.\31\ With respect to Mid-
Point Liquidity (``MPL'') Orders, the Exchange states that it believes 
that proposed Rule 7.11P(a)(6)(C) would remove impediments to and 
perfect the mechanism of a fair and orderly market because the proposal 
would provide ETP Holders with the choice for such orders not to be 
cancelled, and instead remain on the NYSE Arca Book until such time 
that the working price would be at a price eligible to trade consistent 
with the LULD Plan.\32\ The Exchange further believes that using Pillar 
terminology to describe how orders would be re-priced would promote 
consistency in Exchange rules, making them easier to navigate.\33\
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    \30\ Id.
    \31\ Id.
    \32\ Id.
    \33\ Id.
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    With respect to Short Sales, the Commission notes that the Exchange 
represents that proposed Rule 7.16P would remove impediments to and 
perfect the mechanism of a fair and orderly market because it would use 
Pillar terminology to describe how the Exchange would process sell 
short orders during a Short Sale Period, consistent with Rule 201 of 
Regulation SHO.\34\ More specifically, the Exchange states that it 
believes that using the new term ``Official Closing Price'' for 
determining the Trigger Price of a security in Rule 7.16P(f)(2) is 
consistent with Rule 201(b)(1)(i) of Regulation SHO, which requires 
that the listing market determine the closing price of a covered 
security, but does not require that the Exchange use the closing 
auction on the Exchange to determine that closing price.\35\ Moreover, 
the Commission notes that the Exchange represents that how it would 
process sell short orders during a Short Sale Period, set forth in 
proposed Rule 7.16P(f)(5), would remove impediments to and perfect the 
mechanism of a fair and orderly market because the proposed processing 
would assure that sell short orders would neither trade at the National 
Best Bid (``NBB'') or be displayed at the NBB, unless an order is 
eligible for an exemption pursuant to proposed Rule 7.16P(f)(6) or 
(f)(7).\36\ The Exchange further represents that the proposed 
processing in Pillar of odd-lot orders that are ranked Priority 2, 
Pegged Orders, Cross Orders, and Tracking Orders would remove 
impediments to and perfect the mechanism of a fair and orderly market 
and is consistent with Rule 201 of Regulation SHO because the proposed 
processing would assure that such orders would not trade at the NBB or 
be displayed at the NBB as the NBB moves both up and down.\37\
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    \34\ See Notice at 43527.
    \35\ Id.
    \36\ Id.
    \37\ Id.
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    With respect to proposed Rule 7.18P, the Commission notes that the 
Exchange believes that it would remove impediments to and perfect the 
mechanism of a fair and orderly market because it would set forth in a 
single rule the requirements for trading halts on the Exchange in both 
UTP Securities and Exchange-listed securities, which are currently set 
forth in Rules 7.11(b)(6), 7.18, and 7.34(a)(4) and (a)(5).\38\ The 
Exchange also represents that it believes that the proposed substantive 
differences for Rule 7.18P as compared to the current rules would 
remove impediments to and perfect the mechanism of a fair and orderly 
market.\39\ Specifically, the Exchange represents that it believes that 
waiting until receipt of a Price Band in a UTP Security before resuming 
trading following a UTP Regulatory Halt would assure that the Exchange 
would not begin trading in a UTP Security before the protections of the 
LULD Plan would be available.\40\ In addition, not holding a Trading 
Halt Auction on the Exchange in a UTP Security, together with rejecting 
new orders and routing Primary Only Orders received during a UTP 
Regulatory Halt to the primary listing market, would protect investors 
and the public by promoting price discovery and liquidity on the 
primary listing market for its re-opening auction. In addition, the 
Exchange represents that it believes that processing new and existing 
orders for UTP Securities differently from new and existing orders in 
Exchange-listed securities during a halt, suspension, or trading pause 
would complement the proposal not to conduct a Trading Halt Auction in 
a UTP Security. For Exchange-listed securities, because the Exchange 
would be conducting a Trading Halt Auction, the Exchange states that it 
would accept new orders that would be eligible to participate in such 
auction. In addition, to facilitate such auction, the Exchange would 
not cancel resting Pegged Orders and would adjust the working price of 
resting Limit Orders (including Pegged Orders) to their limit price so 
that such orders could participate in a Trading Halt Auction at their 
limit prices. The Exchange represents that it believes such proposed 
processing of new and existing orders would promote liquidity and price 
discovery for Trading Halt Auctions in Exchange-listed securities.\41\
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    \38\ See Notice at 43526.
    \39\ See Notice at 43527.
    \40\ Id.
    \41\ Id.
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    With respect to proposed Rule 7.38P, the Commission notes that the 
Exchange believes that the proposed rule would promote consistency in 
the Exchange's rule book by using Pillar terminology to describe how 
the Exchange would price odd lot orders so that they would not trade 
through the protected best bid or offer (``PBBO'').\42\ The Exchange 
represents that proposed Rule 7.38P(b)(2) would remove impediments to 
and perfect the mechanism of a fair and orderly market because it would 
promote transparency in Exchange rules regarding the working time that 
would be assigned to an order that has been partially routed and 
whether, when it returns, it would be displayed as a new best bid or 
offer (``BBO'').\43\
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    \42\ Id. See also Amendment No. 1.
    \43\ See Notice at 43527.
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    Based on the Exchange's representations, the Commission

[[Page 65277]]

believes that the proposed rule change does not raise any novel 
regulatory considerations and should provide greater specificity with 
respect to the functionality available on the Exchange as symbols are 
migrated to the Pillar platform. For these reasons, the Commission 
believes that the proposal should help to prevent fraudulent and 
manipulative acts and practices, promote just and equitable principles 
of trade, remove impediments to and perfect the mechanism of a free and 
open market and a national market system, and, in general, protect 
investors and the public interest.

IV. Accelerated Approval of Amendment No. 1

    In Amendment No. 1, the Exchange: (i) Removes an erroneous 
reference to subparagraph (6) from proposed Rule 7.11P(b); (ii) amends 
proposed Rule 7.16P(f)(5)(A) to add the phrase ``or lower than'' to 
clarify that short sale orders with a working price and/or display 
price below the NBB would also be re-priced to a Permitted Price; (iii) 
amends proposed Rule 7.16P(f)(5)(C) to clarify that the Exchange would 
treat all odd lot orders ranked Priority 2--Display Orders in the same 
manner as Market Orders and other non-displayed orders; (iv) amends 
proposed Rule 7.16P(f)(5)(D) to provide that all Pegged Orders and MPL 
Orders, including orders marked buy, sell long, and sell short exempt, 
would use the national best bid or offer (``NBBO'') instead of the PBBO 
as the reference price; (v) amend proposed Rule 7.18P(b)(6) to specify 
that the Exchange would reject all ``incoming order instructions'' 
during a UTP Regulatory Halt other than those specified in proposed 
Rules 7.18P(b)(1)-(5); (vi) amend footnote 44 of the Notice to add a 
reference to Limit Immediate-or-Cancel (``IOC'') Orders designated with 
a minimum trade size (``MTS''), change the rule reference for MPL-IOC 
Orders from Rule 7.31P(c)(3)(E) to Rule 7.31P(d)(3)(E), and add a 
reference to Day ISO ALO Orders; and (vii) amends Rule 7.38P(b)(1) to 
add that if the limit price of an odd lot order to buy (sell) is above 
(below) the protected best offer (``PBO'') (protected best bid 
(``PBB''), and the PBBO is crossed, it would have a working price equal 
to the PBB (PBO) to ensure that an odd lot order to buy (sell) would 
not have a working price below (above) the PBB (PBO).
    The Commission believes that the changes proposed in Amendment No. 
1 are non-substantive and further clarify the operation of the proposed 
rules governing Pillar. Accordingly, the Commission finds good cause, 
pursuant to Section 19(b)(2) of the Act,\44\ to approve the proposed 
rule change, as modified by Amendment No. 1, on an accelerated basis.
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    \44\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Solicitation of Comments on Amendment No. 1

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether Amendment No. 1 
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-NYSEArca-2015-58 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2015-58. 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-2015-58, and should 
be submitted on or before November 16, 2015.

VI. Conclusion

    IT IS THEREFORE ORDERED, pursuant to Section 19(b)(2) of the 
Act,\45\ that the proposed rule change (SR-NYSEArca-2015-58), as 
modified by Amendment No. 1 thereto, be, and hereby is, approved on an 
accelerated basis.
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    \45\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\46\
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    \46\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-27069 Filed 10-23-15; 8:45 am]
 BILLING CODE 8011-01-P

65274 Federal Register / Vol. 80, No. 206 / Monday, October 26, 2015 / Notices rules/sro.shtml). Copies of the thereunder,2 a proposed rule change to Clearly Erroneous Executions (NYSE submission, all subsequent adopt new equity trading rules relating Arca Equities Rule 7.10P (‘‘Rule amendments, all written statements to Trading Halts, Short Sales, Limit Up- 7.10P’’)); (3) Limit Up—Limit Down with respect to the proposed rule Limit Down, and Odd Lots and Mixed Plan and Trading Pauses in Individual change that are filed with the Lots to reflect the implementation of Securities Due to Extraordinary Market Commission, and all written Pillar, the Exchange’s new trading Volatility (NYSE Arca Equities Rule communications relating to the technology platform. The proposed rule 7.11P (‘‘Rule 7.11P’’)); 6 (4) Short Sales proposed rule change between the change was published for comment in (NYSE Arca Equities Rule 7.16P (‘‘Rule Commission and any person, other than the Federal Register on July 16, 2015.3 7.16P’’)); (5) Trading Halts (NYSE Arca those that may be withheld from the The Commission received no comment Equities Rule 7.18P (‘‘Rule 7.18P’’)); and public in accordance with the letters on the proposed rule change. On (6) Odd and Mixed Lots (NYSE Arca provisions of 5 U.S.C. 552, will be September 1, 2015, pursuant to Section Equities Rule 7.38P (‘‘Rule 7.38P’’)). In available for Web site viewing and 19(b)(2) of the Act,3 the Commission addition, the proposed new rules to printing in the Commission’s Public designated a longer period within which support Pillar in this filing would use Reference Room, 100 F Street NE., to approve the proposed rule change, the terms and definitions that were Washington, DC 20549, on official disapprove the proposed rule change, or proposed in the Pillar I Filing and Pillar business days between the hours of institute proceedings to determine II Filing.7 The Exchange also proposes 10:00 a.m. and 3:00 p.m. Copies of the whether to approve or disapprove the to amend existing definitions in Rule filing also will be available for proposed rule change.4 On October 15, 1.1. inspection and copying at the principal 2015, the Exchange filed Amendment A. Background office of the Exchange. All comments No. 1 to the proposal.5 The Commission received will be posted without change; is publishing this notice to solicit The Exchange represents that Pillar is the Commission does not edit personal comment on Amendment No. 1 from an integrated trading technology identifying information from interested persons, and is approving the platform designed to use a single submissions. You should submit only proposed rule change, as modified by specification for connecting to the information that you wish to make Amendment No. 1, on an accelerated equities and options markets operated available publicly. All submissions basis. by Arca and its affiliates, New York should refer to File Number SR–BX– Stock Exchange LLC (‘‘NYSE’’) and II. Description of the Proposed Rule NYSE MKT LLC (‘‘NYSE MKT’’).8 On 2015–057 and should be submitted on Change April 30, 2015, the Exchange filed its or before November 16, 2015. The Exchange proposes to adopt new first rule filing relating to the For the Commission, by the Division of equity trading rules relating to the implementation of Pillar, which Trading and Markets, pursuant to delegated implementation of Pillar, the Exchange’s proposed to adopt new rules relating to authority.17 new trading technology platform. The Trading Sessions, Order Ranking and Brent J. Fields, Exchange proposes to adopt the Display, and Order Execution.9 On June Secretary. following new Pillar rules: (1) Definition 26, 2015, the Exchange filed the second [FR Doc. 2015–27070 Filed 10–23–15; 8:45 am] of ‘‘Official Closing Price’’ (NYSE Arca rule filing relating to the BILLING CODE 8011–01–P Equities Rule 1.1 (‘‘Rule 1.1’’)); (2) implementation of Pillar to adopt new rules relating to Orders and Modifiers 2 17 CFR 240.19b–4 and the Retail Liquidity Program.10 SECURITIES AND EXCHANGE 3 See Securities Exchange Act Release No. 75467 This filing is the third set of proposed COMMISSION (July 22, 2015), 80 FR 43515 (‘‘Notice’’). rule changes to support Pillar 3 15 U.S.C. 78s(b)(2). 4 See Securities Exchange Act Release No. 75800, implementation. As proposed, the new [Release No. 34–76198; File No. SR– rules governing trading on Pillar would NYSEArca–2015–58] 80 FR 53911 (September 8, 2015). 5 In Amendment No. 1, the Exchange: (i) Removes have the same numbering as current Self-Regulatory Organizations; NYSE an erroneous reference to subparagraph (6) from rules, but with the modifier ‘‘P’’ proposed Rule 7.11P(b); (ii) amends proposed Rule appended to the rule number. The Arca, Inc.; Order Approving Proposed 7.16P(f)(5)(A) to add the phrase ‘‘or lower than’’ to Rule Change, and Notice of Filing and clarify that short sale orders with a working price Exchange proposes that rules with a ‘‘P’’ Order Granting Accelerated Approval and/or display price below the NBB would also be modifier would operate for symbols that of Amendment No. 1 Thereto, Adopting re-priced to a Permitted Price; (iii) amend proposed are trading on the Pillar trading Rule 7.16P(f)(5)(C) to clarify that the Exchange platform. If a symbol is trading on the New Equity Trading Rules Relating to would treat all odd lot orders ranked Priority 2— Trading Halts, Short Sales, Limit Up- Display Orders in the same manner as Market Pillar trading platform, a rule with the Orders and other non-displayed orders; (iv) amend same number as a rule with a ‘‘P’’ Limit Down, and Odd Lots and Mixed proposed Rule 7.16P(f)(5)(D) to provide that all modifier would no longer operate for Lots To Reflect the Implementation of Pegged Orders and MPL Orders, including orders Pillar, the Exchange’s New Trading marked buy, sell long, and sell short exempt, would 6 Rule 7.11 and proposed Rule 7.11P implement Technology Platform use the NBBO instead of the PBBO as the reference the Plan to Address Extraordinary Market Volatility price; (v) amend proposed Rule 7.18P(b)(6) to pursuant to Rule 608 of Regulation NMS (‘‘LULD October 20, 2015. specify that the Exchange would reject all Plan’’). See Securities Exchange Act Release No. ‘‘incoming order instructions’’ during a UTP 67091 (May 31, 2012), 77 FR 33498 (June 6, 2012) I. Introduction Regulatory Halt other than those specified in (File No. 4–631) (Order approving the LULD Plan). proposed Rules 7.18P(b)(1)–(5); (vi) amend footnote 7 See infra notes 9 and 10. On July 1, 2015, NYSE Arca, Inc. (the asabaliauskas on DSK5VPTVN1PROD with NOTICES 44 of the Notice to add a reference to Limit IOC 8 See Notice at 43516. ‘‘Exchange’’ or ‘‘Arca’’) filed with the Orders designated with an MTS, change the rule 9 See Securities Exchange Act Release No. 74951 Securities and Exchange Commission reference for MPL–IOC Orders from Rule 7.31P(c)(3)(E) to Rule 7.31P(d)(3)(E), and add a (May 13, 2015), 80 FR 28721 (May 19, 2015) (SR– (‘‘Commission’’), pursuant to Section reference to Day ISO ALO Orders; and (vii) amend NYSEArca–2015–38) (‘‘Pillar I Filing’’). The 19(b)(1) of the Securities Exchange Act Rule 7.38P(b)(1) to add that if the limit price of an Commission approved the Pillar I Filing on July 20, of 1934 (‘‘Act’’) 1 and Rule 19b–4 odd lot order to buy (sell) is above (below) the PBO 2015. See Securities Exchange Act Release No. (PBB), and the PBBO is crossed, it would have a 75494 (July 20, 2015), 80 FR 44170 (July 24, 2015) working price equal to the PBB (PBO) to ensure that 10 See Securities Exchange Act Release No. 75497 17 17 CFR 200.30–3(a)(12). an odd lot order to buy (sell) would not have a (July 21, 2015), 80 FR 45022 (July 28, 2015) (notice 1 15 U.S.C. 78s(b)(1). working price below (above) the PBB (PBO). of SR–NYSEArca–2015–56) (‘‘Pillar II Filing’’). VerDate Sep<11>2014 18:53 Oct 23, 2015 Jkt 238001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\26OCN1.SGM 26OCN1

Federal Register / Vol. 80, No. 206 / Monday, October 26, 2015 / Notices 65275 that symbol and the Exchange would Market Orders, Auction-Only Orders, rule change is consistent with Section announce by Trader Update when Primary Only Market-on-Open 6(b)(5) of the Act,24 which requires, symbols are trading on the Pillar trading (‘‘MOO’’)/Limit on Open (‘‘LOO’’) among other things, that the rules of a platform. Definitions that do not have a Orders, Primary Only Day Orders, and national securities exchange be companion version with a ‘‘P’’ modifier Primary Only Market-on-Close designed to prevent fraudulent and would continue to operate for all (‘‘MOC’’)/Limit-on-Close (‘‘LOC’’) manipulative acts and practices, to symbols. Orders to the primary listing market; 16 promote just and equitable principles of B. Proposed Modifications • As described more fully in the trade, to foster cooperation and Notice, because Exchange-listed coordination with persons engaged in As described in detail in the Notice, securities would be eligible to facilitating transactions in securities, to Rules 7.10P, 7.11P, 7.16P, 7.18P, and participate in a Trading Halt Auction, remove impediments to and perfect the 7.38P incorporate much of the substance the Exchange proposes to process orders mechanism of a free and open market of current NYSE Arca Rules 7.10, 7.11, in Exchange-listed securities differently and a national market system, and, in 7.16, 7.18, and 7.38, respectively. than how it would process orders in general, to protect investors and the However, with Pillar, the Exchange UTP Securities; 17 public interest and that the rules are not would introduce new terminology, • As described more fully in the designed to permit unfair reorganize and redraft certain provisions Notice, because of proposed substantive discrimination between customers, to improve clarity, and provide differences to how certain orders and issuers, brokers, or dealers. additional detail to other current modifiers would operate, the Exchange The Commission notes that the provisions being redesignated. The proposes different handling of certain Exchange believes that the proposed Exchange also proposes to make several orders in Pillar to comply with the rules would remove impediments to and changes that are more substantive in requirements of Rule 201 of Regulation perfect the mechanism of a free and nature, as follows: SHO (‘‘Rule 201’’); 18 • Adopt a new definition in Pillar to open market because the proposed rule • The Exchange would use the set would promote transparency by define the term ‘‘Official Closing Price,’’ Official closing Price for purposes of which would mean the reference price using consistent terminology governing determining the Trigger Price for the equities trading, and by clearly denoting to determine the closing price in a Short Sale Price Test in exchange-listed security for purposes of Rule 7 Equities the rules that govern once a symbol has securities; 19 been migrated to the Pillar platform.25 Trading; 11 • An Exchange Trading Permit • during Core Trading Hours, the With respect to the proposed changes (‘‘ETP’’) Holder’s instruction to reject to Rule 1.1, the Commission notes that Exchange would halt trading during a back individual short sale orders subject the Exchange believes that the proposed UTP Regulatory Halt until it receives the to the short sale price test would apply amendments would remove first Price Band in a UTP Security; 12 • the Exchange would not conduct to resting orders; 20 and impediments to and perfect the any Trading Halt Auctions in UTP • As described more fully in the mechanism of a fair and orderly market Securities; 13 Notice, the Exchange would expand the because they would not make any • Pegged Orders would not be number of order types that would be substantive changes to Exchange rules, cancelled during a UTP Regulatory eligible for optional re-pricing but rather are designed to reduce Halt; 14 instructions pursuant to the LULD confusion by eliminating obsolete • During a UTP Regulatory Halt, the Plan; 21 references and terms and therefore Exchange would process a request to III. Discussion and Commission streamline the Exchange’s rules. The cancel and replace as a cancellation Findings Commission also notes that the without replacing the order; 15 Exchange further believes that the • During a UTP Regulatory Halt, the After careful review, the Commission proposed new definition for the term Exchange would accept and route new finds that the proposed rule change is ‘‘Official Closing Price’’ would remove consistent with the requirements of the impediments to and perfect the 11 See proposed Rule 1.1(ggP); see also Notice at Act 22 and the rules and regulations mechanism of a fair and orderly market 43517. Proposed Rule 1.1(ggP)(1) would describe thereunder applicable to a national how the Official Closing Price would be determined because the proposed definition would securities exchange.23 In particular, the for securities listed on the Exchange. As proposed, promote transparency regarding the the Official Closing Price would be the price Commission finds that the proposed reference price the Exchange would use established in a Closing Auction of one round lot or more on a trading day. Because there may be 16 See proposed rule 7.18P(b)(5); see also Notice in Pillar for purposes of calculating circumstances when there is insufficient trading at 43519. Trading Collars, pursuant to proposed interest to have a closing auction trade of one round 17 See proposed rule 7.18P(c); see also Notice at Rule 7.31P(a)(1)(B), and for purposes of lot or more, the Exchange proposes to specify what 43519. determining a Trigger Price pursuant to price the Exchange would use as its Official Closing 18 17 CFR 242.201. See proposed rule 7.16P; see Price when there is no auction or a closing trade proposed Rule 7.16P(f)(2).26 also Notice at 43520–43523. of less than a round lot. As proposed, if there is no 19 See proposed rule 7.16P(f)(2); see also Notice For determining the Official Closing Closing Auction or if a Closing Auction trade is less than a round lot on a trading day, the Official at 43520. Price, the Exchange states that it Closing Price would be the most recent 20 See proposed rule 7.16P(f)(5)(B); see also believes that in the absence of a Closing consolidated last sale eligible trade during Core Notice at 43521. Auction of a round lot or more, the most Trading Hours on that trading day. The rule would 21 See proposed rule 7.11P; see also Notice at recent consolidated last sale eligible further provide that if there were no consolidated 43523–43525. In addition, rather than specifying asabaliauskas on DSK5VPTVN1PROD with NOTICES last sale eligible trades during Core Trading Hours which order types would be eligible for re-pricing trade during Core Trading Hours best on that trading day, the Official Price would be the instructions, the Exchange would enumerate which approximates the market’s prior trading day’s Official Closing Price. order types would not be eligible for repricing determination of the appropriate price 12 See proposed Rule 7.18P(a); see also Notice at instructions. See proposed rule 7.11P(a)(6)(A); see of such securities.27 In addition, the 43518. also Notice at 43523–43524. 13 See proposed rule 7.18P(b)(1); see also Notice 22 15 U.S.C. 78f. 24 15 U.S.C. 78f(b)(5). at 43518. 23 In approving this proposed rule change, the 14 See id. 25 See Notice at 43526. Commission has considered the proposed rule’s 26 See id. 15 See proposed rule 7.18P(b)(4); see also Notice impact on efficiency, competition, and capital at 43519. formation. See 15 U.S.C. 78c(f). 27 See id. VerDate Sep<11>2014 18:53 Oct 23, 2015 Jkt 238001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\26OCN1.SGM 26OCN1

65276 Federal Register / Vol. 80, No. 206 / Monday, October 26, 2015 / Notices Exchange states that it believes that perfect the mechanism of a fair and until receipt of a Price Band in a UTP using only those trades that occur orderly market because it would use Security before resuming trading during Core Trading Hours that are last Pillar terminology to describe how the following a UTP Regulatory Halt would sale eligible would remove impediments Exchange would process sell short assure that the Exchange would not to and perfect the mechanism of a fair orders during a Short Sale Period, begin trading in a UTP Security before and orderly market because the lower consistent with Rule 201 of Regulation the protections of the LULD Plan would liquidity during the Early and Late SHO.34 More specifically, the Exchange be available.40 In addition, not holding Trading Sessions may mean that trades states that it believes that using the new a Trading Halt Auction on the Exchange occurring during those sessions may not term ‘‘Official Closing Price’’ for in a UTP Security, together with be as representative of the price of the determining the Trigger Price of a rejecting new orders and routing security and odd-lot trades may indicate security in Rule 7.16P(f)(2) is consistent Primary Only Orders received during a an anomalous trade.28 with Rule 201(b)(1)(i) of Regulation UTP Regulatory Halt to the primary With respect to proposed Rule 7.10P, SHO, which requires that the listing listing market, would protect investors regarding clearly erroneous executions, market determine the closing price of a and the public by promoting price the Commission notes that the Exchange covered security, but does not require discovery and liquidity on the primary represents that the proposal would that the Exchange use the closing listing market for its re-opening auction. remove impediments to and perfect the auction on the Exchange to determine In addition, the Exchange represents mechanism of a fair and orderly market that closing price.35 Moreover, the that it believes that processing new and because it would use Pillar terminology, Commission notes that the Exchange existing orders for UTP Securities without any substantive differences represents that how it would process differently from new and existing orders from current Rule 7.10.29 sell short orders during a Short Sale in Exchange-listed securities during a With respect to proposed Rule 7.11P, Period, set forth in proposed Rule halt, suspension, or trading pause the Commission notes that the Exchange 7.16P(f)(5), would remove impediments would complement the proposal not to believes that the proposed substantive to and perfect the mechanism of a fair conduct a Trading Halt Auction in a difference to expand the number of and orderly market because the UTP Security. For Exchange-listed Limit Orders eligible for re-pricing proposed processing would assure that securities, because the Exchange would instructions would be consistent with sell short orders would neither trade at be conducting a Trading Halt Auction, the LULD Plan, and therefore would the National Best Bid (‘‘NBB’’) or be the Exchange states that it would accept remove impediments to and perfect the displayed at the NBB, unless an order is new orders that would be eligible to mechanism of a fair and orderly market, eligible for an exemption pursuant to participate in such auction. In addition, because the proposed re-pricing of such proposed Rule 7.16P(f)(6) or (f)(7).36 The to facilitate such auction, the Exchange orders would assure that such orders Exchange further represents that the would not cancel resting Pegged Orders would not trade at or be displayed at proposed processing in Pillar of odd-lot and would adjust the working price of prices outside of the Price Bands.30 The orders that are ranked Priority 2, Pegged resting Limit Orders (including Pegged Exchange further states that it believes Orders, Cross Orders, and Tracking Orders) to their limit price so that such that expanding the number of orders Orders would remove impediments to orders could participate in a Trading eligible for re-pricing instructions and perfect the mechanism of a fair and Halt Auction at their limit prices. The would provide ETP Holders with more orderly market and is consistent with Exchange represents that it believes options regarding how orders would be Rule 201 of Regulation SHO because the such proposed processing of new and processed in compliance with the LULD proposed processing would assure that existing orders would promote liquidity Plan.31 With respect to Mid-Point such orders would not trade at the NBB and price discovery for Trading Halt Liquidity (‘‘MPL’’) Orders, the Exchange or be displayed at the NBB as the NBB Auctions in Exchange-listed states that it believes that proposed Rule moves both up and down.37 securities.41 7.11P(a)(6)(C) would remove With respect to proposed Rule 7.18P, With respect to proposed Rule 7.38P, impediments to and perfect the the Commission notes that the Exchange the Commission notes that the Exchange mechanism of a fair and orderly market believes that it would remove believes that the proposed rule would because the proposal would provide impediments to and perfect the promote consistency in the Exchange’s ETP Holders with the choice for such mechanism of a fair and orderly market rule book by using Pillar terminology to orders not to be cancelled, and instead because it would set forth in a single describe how the Exchange would price remain on the NYSE Arca Book until rule the requirements for trading halts odd lot orders so that they would not such time that the working price would on the Exchange in both UTP Securities trade through the protected best bid or be at a price eligible to trade consistent and Exchange-listed securities, which offer (‘‘PBBO’’).42 The Exchange with the LULD Plan.32 The Exchange are currently set forth in Rules represents that proposed Rule further believes that using Pillar 7.11(b)(6), 7.18, and 7.34(a)(4) and 7.38P(b)(2) would remove impediments terminology to describe how orders (a)(5).38 The Exchange also represents to and perfect the mechanism of a fair would be re-priced would promote that it believes that the proposed and orderly market because it would consistency in Exchange rules, making substantive differences for Rule 7.18P as promote transparency in Exchange rules them easier to navigate.33 compared to the current rules would regarding the working time that would With respect to Short Sales, the remove impediments to and perfect the be assigned to an order that has been Commission notes that the Exchange mechanism of a fair and orderly partially routed and whether, when it asabaliauskas on DSK5VPTVN1PROD with NOTICES represents that proposed Rule 7.16P market.39 Specifically, the Exchange returns, it would be displayed as a new would remove impediments to and represents that it believes that waiting best bid or offer (‘‘BBO’’).43 Based on the Exchange’s 28 See id. 34 See Notice at 43527. representations, the Commission 29 See Notice at 43527. 35 Id. 30 Id. 36 Id. 40 Id. 31 Id. 37 Id. 41 Id. 32 Id. 38 See Notice at 43526. 42 Id. See also Amendment No. 1. 33 Id. 39 See Notice at 43527. 43 See Notice at 43527. VerDate Sep<11>2014 18:53 Oct 23, 2015 Jkt 238001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 E:\FR\FM\26OCN1.SGM 26OCN1

Federal Register / Vol. 80, No. 206 / Monday, October 26, 2015 / Notices 65277 believes that the proposed rule change to Section 19(b)(2) of the Act,44 to submitted on or before November 16, does not raise any novel regulatory approve the proposed rule change, as 2015. considerations and should provide modified by Amendment No. 1, on an VI. Conclusion greater specificity with respect to the accelerated basis. functionality available on the Exchange IT IS THEREFORE ORDERED, V. Solicitation of Comments on as symbols are migrated to the Pillar pursuant to Section 19(b)(2) of the Amendment No. 1 platform. For these reasons, the Act,45 that the proposed rule change Commission believes that the proposal Interested persons are invited to (SR–NYSEArca–2015–58), as modified should help to prevent fraudulent and submit written data, views, and by Amendment No. 1 thereto, be, and manipulative acts and practices, arguments concerning the foregoing, hereby is, approved on an accelerated promote just and equitable principles of including whether Amendment No. 1 is basis. trade, remove impediments to and consistent with the Act. Comments may be submitted by any of the following For the Commission, by the Division of perfect the mechanism of a free and Trading and Markets, pursuant to delegated open market and a national market methods: authority.46 system, and, in general, protect Electronic Comments Brent J. Fields, investors and the public interest. • Use the Commission’s Internet Secretary. IV. Accelerated Approval of comment form (http://www.sec.gov/ [FR Doc. 2015–27069 Filed 10–23–15; 8:45 am] Amendment No. 1 rules/sro.shtml); or BILLING CODE 8011–01–P In Amendment No. 1, the Exchange: • Send an email to rule-comments@ (i) Removes an erroneous reference to sec.gov. Please include File Number SR– subparagraph (6) from proposed Rule NYSEArca–2015–58 on the subject line. SECURITIES AND EXCHANGE 7.11P(b); (ii) amends proposed Rule COMMISSION Paper Comments 7.16P(f)(5)(A) to add the phrase ‘‘or lower than’’ to clarify that short sale • Send paper comments in triplicate [Release No. 34–76201; File No. SR–MIAX– orders with a working price and/or to Brent J. Fields, Secretary, Securities 2015–59] display price below the NBB would also and Exchange Commission, 100 F Street be re-priced to a Permitted Price; (iii) NE., Washington, DC 20549–1090. Self-Regulatory Organizations: Miami amends proposed Rule 7.16P(f)(5)(C) to All submissions should refer to File International Securities Exchange LLC; clarify that the Exchange would treat all Number SR–NYSEArca–2015–58. This Notice of Filing and Immediate odd lot orders ranked Priority 2— file number should be included on the Effectiveness of a Proposed Rule Display Orders in the same manner as subject line if email is used. To help the Change To Amend Exchange Rule 404 Market Orders and other non-displayed Commission process and review your October 20, 2015. orders; (iv) amends proposed Rule comments more efficiently, please use 7.16P(f)(5)(D) to provide that all Pegged only one method. The Commission will Pursuant to the provisions of section Orders and MPL Orders, including post all comments on the Commission’s 19(b)(1) of the Securities Exchange Act orders marked buy, sell long, and sell Internet Web site (http://www.sec.gov/ of 1934 (‘‘Act’’) 1 and Rule 19b–4 short exempt, would use the national rules/sro.shtml). Copies of the thereunder, 2 notice is hereby given that best bid or offer (‘‘NBBO’’) instead of the submission, all subsequent on October 15, 2015, Miami PBBO as the reference price; (v) amend amendments, all written statements International Securities Exchange LLC proposed Rule 7.18P(b)(6) to specify with respect to the proposed rule (‘‘MIAX’’ or ‘‘Exchange’’) filed with the that the Exchange would reject all change that are filed with the Securities and Exchange Commission ‘‘incoming order instructions’’ during a Commission, and all written (‘‘Commission’’) a proposed rule change UTP Regulatory Halt other than those communications relating to the as described in Items I, II, and III below, specified in proposed Rules 7.18P(b)(1)– proposed rule change between the which Items have been prepared by the (5); (vi) amend footnote 44 of the Notice Commission and any person, other than Exchange. The Commission is to add a reference to Limit Immediate- those that may be withheld from the publishing this notice to solicit or-Cancel (‘‘IOC’’) Orders designated public in accordance with the comments on the proposed rule change with a minimum trade size (‘‘MTS’’), provisions of 5 U.S.C. 552, will be from interested persons. change the rule reference for MPL–IOC available for Web site viewing and I. Self-Regulatory Organization’s Orders from Rule 7.31P(c)(3)(E) to Rule printing in the Commission’s Public Statement of the Terms of the Substance 7.31P(d)(3)(E), and add a reference to Reference Room, 100 F Street NE., of the Proposed Rule Change Day ISO ALO Orders; and (vii) amends Washington, DC 20549 on official Rule 7.38P(b)(1) to add that if the limit business days between the hours of The Exchange is filing a proposal to price of an odd lot order to buy (sell) is 10:00 a.m. and 3:00 p.m. Copies of such amend Exchange Rule 404 to replace the above (below) the protected best offer filing also will be available for name ‘‘Google Inc.’’ with ‘‘Alphabet (‘‘PBO’’) (protected best bid (‘‘PBB’’), inspection and copying at the principal Inc.’’ and the PBBO is crossed, it would have office of the Exchange. All comments The text of the proposed rule change a working price equal to the PBB (PBO) received will be posted without change; is available on the Exchange’s Web site to ensure that an odd lot order to buy the Commission does not edit personal asabaliauskas on DSK5VPTVN1PROD with NOTICES at http://www.miaxoptions.com/filter/ (sell) would not have a working price identifying information from wotitle/rule_filing, at MIAX’s principal below (above) the PBB (PBO). submissions. You should submit only office, and at the Commission’s Public The Commission believes that the information that you wish to make Reference Room. changes proposed in Amendment No. 1 available publicly. All submissions are non-substantive and further clarify should refer to File Number SR– 45 15 U.S.C. 78s(b)(2). the operation of the proposed rules NYSEArca-2015–58, and should be 46 17 CFR 200.30–3(a)(12). governing Pillar. Accordingly, the 1 15 U.S.C. 78s(b)(1). Commission finds good cause, pursuant 44 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 18:53 Oct 23, 2015 Jkt 238001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 E:\FR\FM\26OCN1.SGM 26OCN1


Document Created: 2018-02-27 08:56:13
Document Modified: 2018-02-27 08:56:13
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 65274 
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