80 FR 79382 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 13 Equities To Eliminate Good Til Cancelled Orders and Stop Orders, and Make Conforming Changes to Equities Rules 49, 61, 70, 104, 115A, 116, 118, 123, 123A, 123C, 123D, 501, 1000, 1004, and 6140

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 244 (December 21, 2015)

Page Range		79382-79385
FR Document		2015-31926
Federal Register, Volume 80 Issue 244 (Monday, December 21, 2015)
[Federal Register Volume 80, Number 244 (Monday, December 21, 2015)]
[Notices]
[Pages 79382-79385]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31926]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76655; File No. SR-NYSEMKT-2015-103]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending Rule 13 
Equities To Eliminate Good Til Cancelled Orders and Stop Orders, and 
Make Conforming Changes to Equities Rules 49, 61, 70, 104, 115A, 116, 
118, 123, 123A, 123C, 123D, 501, 1000, 1004, and 6140

December 15, 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 December 7, 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 Rule 13--Equities to eliminate Good 
til Cancelled (``GTC'') Orders and Stop Orders, and (2) make conforming 
changes to Rules 49--Equities, 61--Equities, 70--Equities, 104--
Equities, 115A--Equities, 116--Equities, 118--Equities, 123--Equities, 
123A--Equities, 123C--Equities, 123D--Equities, 501--Equities, 1000--
Equities, 1004--Equities, and 6140--Equities. 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 proposes to amend Rule 13--Equities (``Rule 13'') to 
eliminate GTC Orders (which are also defined as ``Open'' Orders) and 
Stop Orders, and make conforming changes to Rules 49--Equities, 61--
Equities, 70--Equities, 104--Equities, 115A--Equities, 116--Equities, 
118--Equities, 123--Equities, 123A--Equities, 123C--Equities, 123D--
Equities, 501--Equities, 1000--Equities, 1004--Equities, and 6140--
Equities. The Exchange proposes to eliminate these order types in order 
to streamline its rules and reduce complexity among its order type 
offerings.\4\
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    \4\ See, e.g., Mary Jo White, Chair, Securities and Exchange 
Commission, Speech at the Sandler O'Neill & Partners, L.P. Global 
Exchange and Brokerage Conference (June 5, 2014) (available at 
www.sec.gov/News/Speech/Detail/Speech/1370542004312#.U5HI-fmwJiw).
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    Because of the technology changes associated with the proposed rule 
change, the Exchange proposes to announce the implementation date of 
the elimination of the order types via Trader Update.
Elimination of GTC Orders and Stop Orders (Rule 13)
    The Exchange proposes to eliminate, and thus delete from its rules, 
the GTC Order defined in Rule 13(b)(2). A GTC Order is a limit order 
that remains in effect until it is either executed or cancelled.\5\ To 
reflect this elimination, the Exchange proposes to delete all 
references to GTC or Open Orders and any related modifiers in Rule 13 
as follows:
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    \5\ GTC orders are not eligible to be executed in any Off-Hours 
Trading Facility and may not be transmitted to Floor broker hand-
held devices or Floor broker systems. See Rule 13(b)(2).
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     Delete Rule 13(b)(2), which defines the GTC Order;
     delete Rule 13(d)(1)(B)(iv), which provides that interest 
designated as GTC may not be designated as a Mid-Point Passive 
Liquidity (``MPL'') Order; \6\
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    \6\ A MPL Order is an undisplayed limit order that automatically 
executes at the mid-point of the protected best bid or offer. See 
Rule 13(d)(1)(A). The Exchange also proposes to re-number Rule 
13(d)(1)(B)(v) to reflect the deletion of subsection (iv).
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     delete Rules 13(f)(1) and (2), which describes the Do Not 
Reduce (``DNR'') and Do Not Increase (``DNI'') modifiers,

[[Page 79383]]

which are modifiers that are used only in connection with GTC Orders. 
In addition to being used for GTC Orders, these modifiers are also used 
for Stop Orders, which the Exchange is also proposing to eliminate; \7\ 
and
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    \7\ In connection with the deletion of Rule 13(f)(1) & (2), the 
Exchange proposes to renumber the Rule as follows: Rule 13(f)(3) 
(Pegging Interest) would become Rule 13(f)(1); Rule 13(f)(4) (Retail 
Modifier) would become Rule 13(f)(2); Rule 13(f)(5) (Self-Trade 
Prevention Modifier) would become Rule 13(f)(3); and Rule 13(f)(6) 
(Sell ``Plus''--Buy ``Minus'' Instruction) would become Rule 
13(f)(4). As discussed below, the Exchange proposes to delete Rule 
13(f)(7) which defines Stop Orders.
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     amend Rule 13(f)(5)(B), which provides that the Exchange 
shall reject GTC Orders with an Self-Trade Prevention (``STP'') 
modifier.
    Second, the Exchange proposes to eliminate Stop Orders. A Stop 
Order is an order to buy or sell a stock at the market once the price 
of the stock reaches a specified price known as the ``stop price.'' 
Specifically, a Stop Order to buy becomes a market order when a 
transaction in the security occurs at or above the stop price after the 
order is received into Exchange systems or is manually represented by a 
Floor broker. A Stop Order to sell becomes a market order when a 
transaction in the security occurs at or below the stop price after the 
order is received into Exchange systems or manually represented by a 
Floor broker.\8\ To effectuate this elimination, the Exchange proposes 
to amend Rule 13 as follows:
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    \8\ See Rule 13(f)(7)(A) & (B). Elected Stop Orders also become 
Market Orders and are eligible for automatic execution in accordance 
with Rules 116.40--Equities, 123C--Equities and 1000--1004--
Equities. Stop Orders that would be elected by the price of the 
opening transaction on the Exchange are included in the opening 
transaction as Market Orders. See id. at (C). Odd-lot size 
transactions are not considered transactions eligible to elect Stop 
Orders on the Exchange. See id. at (D).
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     Delete Rule 13(f)(7), which defines a Stop Order;
     delete Rule 13(f)(1) and (2), which describes the DNR and 
DNI modifiers as noted above; and
     amend Rule 13(f)(5), which provides that the STP modifier 
is available for Stop Orders.
Conforming Amendments
    The Exchange proposes certain conforming amendments to Rules 49--
Equities, 61--Equities, 70--Equities, 104--Equities, 115A--Equities, 
116--Equities, 118--Equities, 123--Equities, 123A--Equities, 123C--
Equities, 123D--Equities, 501--Equities, 1000--Equities, 1004--
Equities, and 6140--Equities to reflect the elimination of GTC Orders 
and Stop Orders as described above as follows:
     The Exchange proposes to amend Rule 49--Equities 
(Emergency Powers), which addresses the Exchange's emergency powers, to 
delete subsection (b)(1)(B), which permits the Exchange to accept 
cancellations of GTC orders during an emergency condition.
     The Exchange proposes to amend Rule 61--Equities 
(Recognized Quotations), which governs bids and offers in securities. 
Under Rule 61(a)(ii)--Equities, transactions in part of a round lot are 
published to the Consolidated Tape and may elect Stop Orders. The 
Exchange proposes to eliminate the reference to electing Stop Orders.
     The Exchange proposes to amend Rule 70--Equities 
(Execution of Floor Broker Interest), governing execution of Floor 
broker interest known as e-Quotes. Under Rule 70(a)(1)--Equities, e-
Quotes cannot include, among others, unelected Stop Orders or a GTC, 
DNR and DNI modifier. The Exchange proposes to delete these references.
     The Exchange proposes to amend 104--Equities (Dealings and 
Responsibilities of DMMs), which prohibits DMM units from entering, 
among others, GTC Modifiers, DNR Modifiers, DNI Modifiers, and Stop 
Orders. The Exchange proposes to delete these references to GTC, DNR 
and DNI modifiers and Stop Orders in subsection (b)(vi).
     The Exchange proposes to amend Rule 115A--Equities (Orders 
at Opening), which governs orders at the opening, to remove subsection 
(a), which prohibits DMMs, trading assistants and anyone acting on 
their behalf from using the Exchange Display Book system in a manner 
designed to discover inappropriately information about unelected stop 
orders when arranging the open or to otherwise attempt to obtain 
information regarding unelected stop orders and to renumber the rule 
accordingly.
     The Exchange proposes to delete Supplementary Material 
.40(A) and .50 of Rule 116--Equities (`Stop' Constitutes Guarantee), 
which provides that an agreement by a member to ``stop'' stock at a 
specified price constitutes a guarantee of a purchase or sale by the 
member of the security at that price. Supplementary Material .40(A) 
provides that Stop Orders elected based on the closing price are 
automatically and systemically converted to market orders and included 
in the total number of market-at-the-close orders executed at the 
close. Supplementary Material .50, similar to Rule 104(b)(vi)--
Equities, prohibits DMMs, trading assistants and anyone acting on their 
behalf from using the Display Book system in a manner designed to 
discover inappropriately information about unelected stop orders when 
arranging the close or to otherwise attempt to obtain information 
regarding unelected stop orders.
     The Exchange proposes to delete Rule 118--Equities (Orders 
To Be Reduced and Increased on Ex-Date), which governs the adjustment 
of GTC buy orders \9\ and open Stop Orders, i.e., GTC Stop Orders, to 
sell when a security is quoted ex-dividend, ex-distribution, ex-rights 
or ex-interest.
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    \9\ Rule 118--Equities uses the term ``Open buying orders''. An 
Open Order is another term for a GTC Order. See Rule 13(a)(2). Since 
Rule 118--Equities applies only to GTC Orders and Stop Orders, the 
Exchange proposes to delete the rule in its entirety.
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     The Exchange proposes to amend Rule 123--Equities (Record 
of Orders), which imposes certain recordkeeping and order entry 
requirements, to eliminate the reference to Stop Orders in subsection 
(e)(iii)(7) and stop price in paragraph (e)(iii)(8) of Rule 123--
Equities. The Exchange also proposes to delete outdated references to 
auction market and auction limit orders in Rule 123(e)(iii)(7)--
Equities, which the Exchange either eliminated or did not 
implement.\10\
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    \10\ See Securities Exchange Act Release No. 67686 (August 17, 
2012), 77 FR 51596 (August 24, 2012) (SR-NYSEMKT-2012-13) (deleting 
the auction market order). Auction limit orders do not appear to 
have been implemented.
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     The Exchange proposes to amend Supplementary Material .20 
of Rule 123A--Equities (Miscellaneous Requirements), which governs 
changes in day orders, to remove the final clause of the first 
paragraph requiring members to request that customers and 
correspondents file GTC Orders wherever possible rather than repeating 
the same order each morning. The Exchange also proposes to delete the 
second paragraph of Supplementary Material .20 in its entirety, which 
provides that a Day Order changed to an Open Order is considered a new 
order and must be added to the Exchange's Book after other orders 
previously received at the same price. As noted above, an Open Order is 
another term for a GTC Order.\11\ Finally, the Exchange proposes to 
rename Supplementary Material .20 ``Day Orders'' by deleting the 
preceding words ``Changes In''.
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    \11\ See note 9, supra.
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     The Exchange proposes to amend Rule 123C--Equities (The 
Closing Procedures), which specifies the procedures to be followed at 
the close of trading on the Exchange, to delete references to Stop 
Orders in paragraphs 6(a)(i)(C) and 6(a)(ii) of Rule 123C--Equities. 
The Exchange also proposes to delete paragraph 8(a)(iv) of Rule 123C--
Equities, which describes election of Stop Orders as part of the 
Closing Print.

[[Page 79384]]

     The Exchange proposes to amend Rule 123D--Equities 
(Openings and Halts in Trading), which specifies that Exchange systems 
may open one or more securities electronically if a DMM cannot 
facilitate the opening of trading as required by Exchange rules. First, 
the Exchange proposes to replace the references to Rule 115A(b)--
Equities with references to Rule 115A(a)--Equities. Second, the 
Exchange proposes to delete subsection (a)(3)(C)(ii), which provides 
that Stop Orders elected based on the opening price would trade second 
in time priority when interest that is otherwise guaranteed to 
participate in an opening trade would cause an opening price to be 
outside the Opening Price Range (as defined therein). Third, to reflect 
the deletion of subsection (a)(3)(C)(ii) and the removal of Stop Orders 
from second in time priority, the Exchange proposes to re-number 
subsections (a)(3)(C)(iii) through (v) and re-order priority for Limit 
Orders (current subsection (a)(3)(C)(iii)) from third to second, for G-
quotes (current subsection (a)(3)(C)(iv)) from fourth to third, and for 
all other limit interest priced equal to the open (current subsection 
(a)(3)(v)) from fifth to fourth.
     The Exchange proposes to amend Rule 501--Equities 
(Definitions), which sets forth the definitions for the Rules 500-525--
Equities Series governing the trading of ``UTP Securities'' on the 
Exchange pursuant to unlisted trading privileges. The Exchange proposes 
to delete subsection (d)(1)(A) of Rule 501--Equities, which defines a 
GTC or Open Order for a UTP Security. The Exchange also proposes to 
delete subsection (d)(2)(E) of Rule 501--Equities, which lists Stop 
Order as one of the order types not accepted for trading in UTP 
Securities.
     The Exchange proposes to amend Rule 1000--Equities 
(Automatic Executions), which provides for automatic executions by 
Exchange systems. Rule 1000(c)--Equities provides that incoming market 
orders, including an elected stop order, or marketable limit order to 
buy (sell) will not execute or route to another market center at a 
price above (below) the Trading Collar applicable when automatic 
executions are in effect and calculated pursuant to Rule 1000(c)(i)--
Equities. The Exchange proposes to delete the reference to elected stop 
order in paragraph (c) of Rule 1000--Equities.
     The Exchange proposes to amend Rule 1004--Equities 
(Election of Buy Minus, Sell Plus and Stop Orders), which provides that 
automatic executions of transactions reported to the Consolidated Tape 
shall elect, among others, stop orders electable at the price of such 
executions and that any stop order so elected shall be automatically 
executed as market orders pursuant to Exchange rules. The Exchange 
proposes to delete the references to Stop Orders, including in the 
heading.
     Finally, the Exchange proposes to amend Rule 6140--
Equities (Other Trading Practices), which governs a number of 
prohibited trading practices. First, the Exchange proposes to delete 
Rule 6140(h)(1)--Equities, which provides that a member or member 
organization may, but is not obligated to, accept a stop order in 
designated securities, and defines buy stop orders (Rule 
6140(h)(1)(A)--Equities) and sell stop orders (Rule 6140(h)(1)(B)--
Equities). Second, the Exchange proposes to delete Rule 6140(h)(2)--
Equities, which provides that a member or member organization may, but 
is not obligated to, accept stop limit orders in designated securities 
and that when a transaction occurs at a stop price, the stop limit 
order to buy or sell becomes a limit order at the limit price. Current 
subsection (i) of Rule 6140--Equities would become new subsection (h).
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \12\ of 
the Act, in general, and furthers the objectives of Section 
6(b)(5),\13\ 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 mechanism of a free and open 
market and a national market system.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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    Specifically, the Exchange believes that eliminating GTC Orders and 
Stop Orders removes impediments to and perfects a national market 
system by simplifying functionality and complexity of its order types. 
The Exchange believes that eliminating these order types would not be 
inconsistent with the public interest and the protection of investors 
because investors will not be harmed and in fact would benefit from the 
removal of complex functionality. Because Stop Orders, when elected, 
can exacerbate market volatility and result in executions in declining 
markets at prices significantly different than the quoted price, the 
Exchange believes that eliminating them would reduce the potential for 
orders on the Exchange to cause significant price dislocation. The 
Exchange also believes that eliminating GTC Orders would benefit 
investors because it shifts the responsibility to monitor best 
execution obligations on behalf of a customer to the member 
organization entering the order, rather than leaving a GTC order at the 
Exchange until it gets executed.
    The Exchange further believes that deleting corresponding 
references in Exchange rules to deleted order types also removes 
impediments to and perfects the mechanism of a free and open market by 
ensuring that members, regulators and the public can more easily 
navigate the Exchange's rulebook and better understand the orders types 
available for trading on the Exchange. Removing obsolete cross 
references also furthers the goal of transparency and adds clarity to 
the Exchange's rules.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed change is not 
designed to address any competitive issue but would rather remove 
complex functionality and obsolete cross-references, thereby reducing 
confusion and making the Exchange's rules easier to understand and 
navigate.

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

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

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\ 
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

[[Page 79385]]

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.
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and 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 requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\17\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
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    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) \18\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \18\ 15 U.S.C. 78s(b)(2)(B).
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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-2015-103 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-NYSEMKT-2015-103. 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 offices 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-NYSEMKT-2015-
103, and should be submitted on or before January 11, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-31926 Filed 12-18-15; 8:45 am]
BILLING CODE 8011-01-P
79382 Federal Register / Vol. 80, No. 244 / Monday, December 21, 2015 / Notices

Electronic Comments SECURITIES AND EXCHANGE The Exchange has prepared summaries,
COMMISSION set forth in sections A, B, and C below,
• Use the Commission’s Internet of the most significant parts of such
comment form (http://www.sec.gov/ [Release No. 34–76655; File No. SR–
NYSEMKT–2015–103]
statements.
rules/sro.shtml); or
A. Self-Regulatory Organization’s
• Send an email to rule-comments@ Self-Regulatory Organizations; NYSE Statement of the Purpose of, and the
sec.gov. Please include File Number SR– MKT LLC; Notice of Filing and Statutory Basis for, the Proposed Rule
BX–2015–080 on the subject line. Immediate Effectiveness of Proposed Change
Rule Change Amending Rule 13
Paper Comments Equities To Eliminate Good Til 1. Purpose
• Send paper comments in triplicate Cancelled Orders and Stop Orders, The Exchange proposes to amend
to Secretary, Securities and Exchange and Make Conforming Changes to Rule 13—Equities (‘‘Rule 13’’) to
Commission, 100 F Street NE., Equities Rules 49, 61, 70, 104, 115A, eliminate GTC Orders (which are also
Washington, DC 20549–1090. 116, 118, 123, 123A, 123C, 123D, 501, defined as ‘‘Open’’ Orders) and Stop
1000, 1004, and 6140 Orders, and make conforming changes
All submissions should refer to File to Rules 49—Equities, 61—Equities,
Number SR–BX–2015–080. This file December 15, 2015.
70—Equities, 104—Equities, 115A—
number should be included on the Pursuant to Section 19(b)(1) 1 of the
Equities, 116—Equities, 118—Equities,
subject line if email is used. To help the Securities Exchange Act of 1934 (the
123—Equities, 123A—Equities, 123C—
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Commission process and review your Equities, 123D—Equities, 501—Equities,
notice is hereby given that on December
comments more efficiently, please use 1000—Equities, 1004—Equities, and
7, 2015, NYSE MKT LLC (the
only one method. The Commission will 6140—Equities. The Exchange proposes
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
post all comments on the Commission’s to eliminate these order types in order
the Securities and Exchange
Internet Web site (http://www.sec.gov/ to streamline its rules and reduce
Commission (the ‘‘Commission’’) the
rules/sro.shtml). Copies of the complexity among its order type
proposed rule change as described in
submission, all subsequent offerings.4
Items I and II below, which Items have
amendments, all written statements Because of the technology changes
been prepared by the self-regulatory
with respect to the proposed rule associated with the proposed rule
organization. The Commission is
change that are filed with the change, the Exchange proposes to
publishing this notice to solicit
Commission, and all written announce the implementation date of
comments on the proposed rule change
communications relating to the the elimination of the order types via
from interested persons.
Trader Update.
proposed rule change between the
I. Self-Regulatory Organization’s
Commission and any person, other than Elimination of GTC Orders and Stop
Statement of the Terms of Substance of
those that may be withheld from the Orders (Rule 13)
the Proposed Rule Change
public in accordance with the The Exchange proposes to eliminate,
provisions of 5 U.S.C. 552, will be The Exchange proposes to amend
and thus delete from its rules, the GTC
available for Web site viewing and Rule 13—Equities to eliminate Good til
Order defined in Rule 13(b)(2). A GTC
printing in the Commission’s Public Cancelled (‘‘GTC’’) Orders and Stop
Order is a limit order that remains in
Reference Room, 100 F Street NE., Orders, and (2) make conforming
effect until it is either executed or
changes to Rules 49—Equities, 61—
Washington, DC 20549 on official cancelled.5 To reflect this elimination,
Equities, 70—Equities, 104—Equities,
business days between the hours of the Exchange proposes to delete all
115A—Equities, 116—Equities, 118—
10:00 a.m. and 3:00 p.m. Copies of such references to GTC or Open Orders and
Equities, 123—Equities, 123A—Equities,
filing also will be available for any related modifiers in Rule 13 as
123C—Equities, 123D—Equities, 501—
inspection and copying at the principal follows:
Equities, 1000—Equities, 1004—
offices of the Exchange. All comments • Delete Rule 13(b)(2), which defines
Equities, and 6140—Equities. The
received will be posted without change; the GTC Order;
proposed rule change is available on the
the Commission does not edit personal • delete Rule 13(d)(1)(B)(iv), which
Exchange’s Web site at www.nyse.com,
identifying information from provides that interest designated as GTC
at the principal office of the Exchange,
submissions. You should submit only may not be designated as a Mid-Point
and at the Commission’s Public
information that you wish to make Passive Liquidity (‘‘MPL’’) Order; 6
Reference Room. • delete Rules 13(f)(1) and (2), which
available publicly. All submissions
II. Self-Regulatory Organization’s describes the Do Not Reduce (‘‘DNR’’)
should refer to File Number SR–BX–
Statement of the Purpose of, and and Do Not Increase (‘‘DNI’’) modifiers,
2015–080, and should be submitted on
Statutory Basis for, the Proposed Rule
or before January 11, 2016.
Change 4 See, e.g., Mary Jo White, Chair, Securities and

For the Commission, by the Division of Exchange Commission, Speech at the Sandler
In its filing with the Commission, the O’Neill & Partners, L.P. Global Exchange and
Trading and Markets, pursuant to delegated
self-regulatory organization included Brokerage Conference (June 5, 2014) (available at
authority.9 www.sec.gov/News/Speech/Detail/Speech/
statements concerning the purpose of,
Robert W. Errett, 1370542004312#.U5HI-fmwJiw).
and basis for, the proposed rule change 5 GTC orders are not eligible to be executed in any
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Deputy Secretary. and discussed any comments it received Off-Hours Trading Facility and may not be
[FR Doc. 2015–31927 Filed 12–18–15; 8:45 am] on the proposed rule change. The text transmitted to Floor broker hand-held devices or
BILLING CODE 8011–01–P of those statements may be examined at Floor broker systems. See Rule 13(b)(2).
6 A MPL Order is an undisplayed limit order that
the places specified in Item IV below.
automatically executes at the mid-point of the
protected best bid or offer. See Rule 13(d)(1)(A).
1 15 U.S.C. 78s(b)(1). The Exchange also proposes to re-number Rule
2 15 U.S.C. 78a. 13(d)(1)(B)(v) to reflect the deletion of subsection
9 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. (iv).

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79384 Federal Register / Vol. 80, No. 244 / Monday, December 21, 2015 / Notices

• The Exchange proposes to amend among others, stop orders electable at the Exchange to cause significant price
Rule 123D—Equities (Openings and the price of such executions and that dislocation. The Exchange also believes
Halts in Trading), which specifies that any stop order so elected shall be that eliminating GTC Orders would
Exchange systems may open one or automatically executed as market orders benefit investors because it shifts the
more securities electronically if a DMM pursuant to Exchange rules. The responsibility to monitor best execution
cannot facilitate the opening of trading Exchange proposes to delete the obligations on behalf of a customer to
as required by Exchange rules. First, the references to Stop Orders, including in the member organization entering the
Exchange proposes to replace the the heading. order, rather than leaving a GTC order
references to Rule 115A(b)—Equities • Finally, the Exchange proposes to at the Exchange until it gets executed.
with references to Rule 115A(a)— amend Rule 6140—Equities (Other The Exchange further believes that
Equities. Second, the Exchange Trading Practices), which governs a deleting corresponding references in
proposes to delete subsection number of prohibited trading practices. Exchange rules to deleted order types
(a)(3)(C)(ii), which provides that Stop First, the Exchange proposes to delete also removes impediments to and
Orders elected based on the opening Rule 6140(h)(1)—Equities, which perfects the mechanism of a free and
price would trade second in time provides that a member or member open market by ensuring that members,
priority when interest that is otherwise organization may, but is not obligated regulators and the public can more
guaranteed to participate in an opening to, accept a stop order in designated easily navigate the Exchange’s rulebook
trade would cause an opening price to securities, and defines buy stop orders and better understand the orders types
be outside the Opening Price Range (as (Rule 6140(h)(1)(A)—Equities) and sell available for trading on the Exchange.
defined therein). Third, to reflect the stop orders (Rule 6140(h)(1)(B)— Removing obsolete cross references also
deletion of subsection (a)(3)(C)(ii) and Equities). Second, the Exchange furthers the goal of transparency and
the removal of Stop Orders from second proposes to delete Rule 6140(h)(2)— adds clarity to the Exchange’s rules.
in time priority, the Exchange proposes Equities, which provides that a member
B. Self-Regulatory Organization’s
to re-number subsections (a)(3)(C)(iii) or member organization may, but is not
Statement on Burden on Competition
through (v) and re-order priority for obligated to, accept stop limit orders in
Limit Orders (current subsection designated securities and that when a The Exchange does not believe that
(a)(3)(C)(iii)) from third to second, for G- transaction occurs at a stop price, the the proposed rule change will impose
quotes (current subsection (a)(3)(C)(iv)) stop limit order to buy or sell becomes any burden on competition that is not
from fourth to third, and for all other a limit order at the limit price. Current necessary or appropriate in furtherance
limit interest priced equal to the open subsection (i) of Rule 6140—Equities of the purposes of the Act. The
(current subsection (a)(3)(v)) from fifth would become new subsection (h). proposed change is not designed to
to fourth. address any competitive issue but
2. Statutory Basis
• The Exchange proposes to amend would rather remove complex
Rule 501—Equities (Definitions), which The proposed rule change is functionality and obsolete cross-
sets forth the definitions for the Rules consistent with Section 6(b) 12 of the references, thereby reducing confusion
500–525—Equities Series governing the Act, in general, and furthers the and making the Exchange’s rules easier
trading of ‘‘UTP Securities’’ on the objectives of Section 6(b)(5),13 in to understand and navigate.
Exchange pursuant to unlisted trading particular, in that it is designed to C. Self-Regulatory Organization’s
privileges. The Exchange proposes to prevent fraudulent and manipulative Statement on Comments on the
delete subsection (d)(1)(A) of Rule 501— acts and practices, to promote just and Proposed Rule Change Received From
Equities, which defines a GTC or Open equitable principles of trade, to foster Members, Participants, or Others
Order for a UTP Security. The Exchange cooperation and coordination with
also proposes to delete subsection persons engaged in facilitating No written comments were solicited
(d)(2)(E) of Rule 501—Equities, which transactions in securities, and to remove or received with respect to the proposed
lists Stop Order as one of the order impediments to and perfect the rule change.
types not accepted for trading in UTP mechanism of a free and open market III. Date of Effectiveness of the
Securities. and a national market system. Proposed Rule Change and Timing for
• The Exchange proposes to amend Specifically, the Exchange believes Commission Action
Rule 1000—Equities (Automatic that eliminating GTC Orders and Stop
Executions), which provides for Orders removes impediments to and The Exchange has filed the proposed
automatic executions by Exchange perfects a national market system by rule change pursuant to Section
systems. Rule 1000(c)—Equities simplifying functionality and 19(b)(3)(A)(iii) of the Act 14 and Rule
provides that incoming market orders, complexity of its order types. The 19b–4(f)(6) thereunder.15 Because the
including an elected stop order, or Exchange believes that eliminating these proposed rule change does not: (i)
marketable limit order to buy (sell) will order types would not be inconsistent Significantly affect the protection of
not execute or route to another market with the public interest and the investors or the public interest; (ii)
center at a price above (below) the protection of investors because investors impose any significant burden on
Trading Collar applicable when will not be harmed and in fact would competition; and (iii) become operative
automatic executions are in effect and benefit from the removal of complex prior to 30 days from the date on which
calculated pursuant to Rule 1000(c)(i)— functionality. Because Stop Orders, it was filed, or such shorter time as the
Equities. The Exchange proposes to when elected, can exacerbate market 14 15 U.S.C. 78s(b)(3)(A)(iii).
mstockstill on DSK4VPTVN1PROD with NOTICES

delete the reference to elected stop order volatility and result in executions in 15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
in paragraph (c) of Rule 1000—Equities. declining markets at prices significantly 4(f)(6)(iii) requires a self-regulatory organization to
• The Exchange proposes to amend different than the quoted price, the give the Commission written notice of its intent to
Rule 1004—Equities (Election of Buy Exchange believes that eliminating them file the proposed rule change, along with a brief
Minus, Sell Plus and Stop Orders), description and text of the proposed rule change,
would reduce the potential for orders on at least five business days prior to the date of filing
which provides that automatic of the proposed rule change, or such shorter time
executions of transactions reported to 12 15 U.S.C. 78f(b). as designated by the Commission. The Exchange
the Consolidated Tape shall elect, 13 15 U.S.C. 78f(b)(5). has satisfied this requirement.

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Federal Register / Vol. 80, No. 244 / Monday, December 21, 2015 / Notices 79385

Commission may designate, if amendments, all written statements Federal Register on June 23, 2015.3 On
consistent with the protection of with respect to the proposed rule July 30, 2015, the Commission extended
investors and the public interest, the change that are filed with the the time period for Commission action
proposed rule change has become Commission, and all written to September 21, 2015.4 On September
effective pursuant to Section 19(b)(3)(A) communications relating to the 17, 2015, the Commission instituted
of the Act and Rule 19b–4(f)(6)(iii) proposed rule change between the proceedings under section 19(b)(2)(B) of
thereunder. Commission and any person, other than the Act 5 to determine whether to
A proposed rule change filed under those that may be withheld from the approve or disapprove the proposed
Rule 19b–4(f)(6) 16 normally does not public in accordance with the rule change.6 The Phlx filed
become operative prior to 30 days after provisions of 5 U.S.C. 552, will be Amendment Nos. 1 and 2 to the
the date of the filing. However, pursuant available for Web site viewing and proposal on November 4, 2015, and
to Rule 19b4(f)(6)(iii),17 the Commission printing in the Commission’s Public December 3, 2015, respectively.7 The
may designate a shorter time if such Reference Room, 100 F Street NE.,
Commission received no comments
action is consistent with the protection Washington, DC 20549 on official
of investors and the public interest. regarding the proposal.8
business days between the hours of
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of such Section 19(b)(2) of the Act provides
filing of such proposed rule change, the filing also will be available for that proceedings to determine whether
Commission summarily may inspection and copying at the principal to disapprove a proposed rule change
temporarily suspend such rule change if offices of the Exchange. All comments must be concluded within 180 days of
it appears to the Commission that such received will be posted without change; the date of publication of notice of filing
action is necessary or appropriate in the the Commission does not edit personal of the proposed rule change.9 The time
public interest, for the protection of identifying information from for conclusion of the proceedings may
investors, or otherwise in furtherance of submissions. You should submit only be extended for up to 60 days if the
the purposes of the Act. If the information that you wish to make Commission determines that a longer
Commission takes such action, the available publicly. All submissions period is appropriate and publishes the
Commission shall institute proceedings should refer to File Number SR– reasons for such determination.10 The
under Section 19(b)(2)(B) 18 of the Act to NYSEMKT–2015–103, and should be 180th day for this filing is December 20,
determine whether the proposed rule submitted on or before January 11, 2016. 2015.
change should be approved or
For the Commission, by the Division of The Commission is extending the
disapproved. Trading and Markets, pursuant to delegated
authority.19
time period for Commission action on
IV. Solicitation of Comments the proposed rule change. The
Robert W. Errett,
Interested persons are invited to Commission finds that it is appropriate
submit written data, views, and Deputy Secretary.
to designate a longer period within
arguments concerning the foregoing, [FR Doc. 2015–31926 Filed 12–18–15; 8:45 am]
which to take action on the proposed
including whether the proposed rule BILLING CODE 8011–01–P
rule change so that it has sufficient time
change is consistent with the Act. to consider the issues raised by the
Comments may be submitted by any of proposal and to take action on the
the following methods: SECURITIES AND EXCHANGE
COMMISSION Exchange’s proposed rule change.
Electronic Comments Accordingly, pursuant to section
• Use the Commission’s Internet [Release No. 34–76648; File No. SR–Phlx– 19(b)(2)(B)(ii)(II) of the Act 11 and for the
comment form (http://www.sec.gov/ 2015–49] reasons stated above, the Commission
rules/sro.shtml); or designates February 18, 2016, as the
• Send an email to rule-comments@ Self-Regulatory Organizations; date by which the Commission should
sec.gov. Please include File Number SR– NASDAQ OMX PHLX LLC; Notice of either approve or disapprove the
NYSEMKT–2015–103 on the subject Designation of a Longer Period for proposed rule change (File No. SR–
line. Commission Action on Proceedings To Phlx–2015–49).
Determine Whether To Approve or
Paper Comments Disapprove a Proposed Rule Change
• Send paper comments in triplicate To Amend and Correct Rule 1080.07 3 See Securities Exchange Act Release No. 75189
to Brent J. Fields, Secretary, Securities (June 17, 2015), 80 FR 35997.
December 15, 2015.
and Exchange Commission, 100 F Street 4 See Securities Exchange Act Release No. 75570,

NE., Washington, DC 20549–1090. On June 5, 2015, NASDAQ OMX 80 FR 46619 (August 5, 2015).
All submissions should refer to File PHLX LLC (the ‘‘Exchange’’ or ‘‘Phlx’’) 5 15 U.S.C. 78s(b)(2)(B).

Number SR–NYSEMKT–2015–103. This filed with the Securities and Exchange 6 See Securities Exchange Act Release No. 75942,

file number should be included on the Commission (‘‘Commission’’), pursuant 80 FR 57406 (September 23, 2015).
subject line if email is used. To help the to section 19(b)(1) of the Securities 7 When the Phlx filed Amendment Nos. 1 and 2

Commission process and review your Exchange Act of 1934 (‘‘Act’’) 1 and Rule with the Commission, it also posted the
19b–4 thereunder,2 a proposed rule amendments on the Phlx’s Web site and submitted
comments more efficiently, please use the amendments as a comment letters to the file,
only one method. The Commission will change to amend and correct several which the Commission posted on its Web site and
mstockstill on DSK4VPTVN1PROD with NOTICES

post all comments on the Commission’s provisions in Phlx Rule 1080.07, which placed in the public comment file for SR–Phlx–
Internet Web site (http://www.sec.gov/ governs the trading of Complex Orders 2015–49.
rules/sro.shtml). Copies of the on Phlx XL. The proposed rule change 8 As noted above, the Phlx submitted Amendment

submission, all subsequent was published for comment in the Nos. 1 and 2 to the comment letter file for SR–Phlx–
2015–49.
16 17 9 15 U.S.C. 78s(b)(2)(B)(i)(II) and (ii)(I).
CFR 240.19b–4(f)(6). 19 17 CFR 200.30–3(a)(12).
17 17 10 15 U.S.C. 78s(b)(2)(B)(ii)(II).
CFR 240.19b–4(f)(6)(iii). 1 15 U.S.C. 78s(b)(1).
18 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4. 11 Id.

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Document Created: 2015-12-19 02:57:31
Document Modified: 2015-12-19 02:57:31
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 79382