80 FR 80430 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Amend Rule 1.1(s) To Provide for Price Collar Thresholds for Trading Halt Auctions
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 247 (December 24, 2015)
Federal Register Volume 80, Issue 247 (December 24, 2015)
| Page Range | 80430-80432 | |
| FR Document | 2015-32386 |
[Federal Register Volume 80, Number 247 (Thursday, December 24, 2015)] [Notices] [Pages 80430-80432] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32386] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76690; File No. SR-NYSEARCA-2015-121] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Amend Rule 1.1(s) To Provide for Price Collar Thresholds for Trading Halt Auctions December 18, 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 Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 1.1(s) to provide for price collar thresholds for Trading Halt Auctions. The text of the proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 1.1(s) to provide for price collar [[Page 80431]] thresholds for Trading Halt Auctions.\4\ The Exchange conducts Trading Halt Auctions under Rule 7.35(f). --------------------------------------------------------------------------- \4\ Rule 1.1(s) defines the Indicative Match Price for the Opening Auction, the Market Order Auction, the Closing Auction, and the Trading Halt Auction. Rule 1.1(s)(A) further provides that when the Market Order Auction Price or Closing Auction Price is established by NYSE Arca Equities Rule 7.35(c)(3)(A)(1) or 7.35(e)(3), the Limit Orders eligible for determining the Indicative Match Price shall be limited by the price collar thresholds established by the Corporation. The rule further provides that the Corporation shall set and modify such thresholds from time to time upon prior notice to ETP Holders. --------------------------------------------------------------------------- The Exchange proposes to amend Rule 1.1(s) to respond to market events on August 24, 2015, by adopting price collar thresholds for Trading Halt Auctions. On August 24, 2015, the market experienced extreme trading volatility, which resulted in a significantly higher number of trading pauses under the Plan to Address Extraordinary Market Volatility (the ``Plan'') than the average trading day. Because of the volume of trading interest that the Exchange received during these trading pauses, the Exchange reopened trading following those pauses with Trading Halt Auctions. On that day, the Exchange applied price collar thresholds for Trading Halt Auctions that were 5% for securities with a consolidated last sale price of $25.00 or less, 2% for securities with a consolidated last sale price greater than $25.00 but less than or equal to $50.00, and 1% for securities with a consolidated last sale price greater than $50.00.\5\ --------------------------------------------------------------------------- \5\ The price collar thresholds were last modified on April 13, 2015 and September 8, 2015. See NYSE Arca Trader Update, ``NYSE Arca Equities Enhancements to Auction Collars,'' dated April 10, 2015, and NYSE Arca Trader Update, ``NYSE Arca Equities Enhancements to Auction Collars,'' dated September 4, 2015, available here: https://www.nyse.com/trader-update/history and here: https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Trader_Update_Auction_Collars_Sept_2015.pdf. --------------------------------------------------------------------------- The Exchange believes that these parameters were too narrow. The Exchange also believes, however, that it is appropriate to have protections in place for Trading Halt Auctions to assure that a reopening trade will not deviate significantly from prior prices, even taking into consideration natural price movements for a security. The Exchange will therefore be conducting an analysis to identify what changes, if any, would be appropriate to balance allowances for natural price movement in a Trading Halt Auction, while at the same time avoiding significant price deviations that would not be in line with the fair value of securities listed on the Exchange, which are all Exchange Traded Products (``ETP''). Following this analysis, the Exchange will propose to make the price collar thresholds proposed herein permanent or propose other or additional changes to the re- opening auction process. Pending such analysis, the Exchange proposes to amend Rule 1.1(s) on an interim basis to add to the rule price collar thresholds for Trading Halt Auctions that would be based on the thresholds for determining whether an execution is clearly erroneous. The Exchange proposes that this proposed rule change will sunset six months after the operative date of this rule change. For such interim measure, the Exchange proposes new Rule 1.1(s)(B) to specify that when the Trading Halt Auction Price is established by NYSE Arca Equities Rule 7.35(f)(4)(A), the Limit Orders eligible for determining the Indicative Match Price would be limited by specified price collar thresholds. As further proposed, the specified percentage for the price collar thresholds for Trading Halt Auctions would be 10% for securities with a consolidated last sale price of $25.00 or less, 5% for securities with a consolidated last sale price greater than $25.00 but less than or equal to $50.00, and 3% for securities with a consolidated last sale price greater than $50.00. These proposed percentages are based on the corresponding ``numerical guideline'' percentages set forth in paragraph (c)(1) of Rule 7.10 (Clearly Erroneous Executions) for the Core Trading Session.\6\ --------------------------------------------------------------------------- \6\ As set forth in Rule 7.10(c)(1), for securities priced between $0.00 and $25.00, the numerical guideline is 10%, for securities priced between $25.01 and $50.00, the numerical guideline is 5%, and for securities priced greater than $50.00, the numerical guideline is 3%. --------------------------------------------------------------------------- The Exchange believes that by adopting price collar thresholds for Trading Halt Auctions based on the clearly erroneous execution guidelines, the Exchange would be widening the thresholds from their current percentages, thereby ending the use of the current overly- narrow price collar thresholds. The Exchange further believes that using temporary price collar thresholds tied to the clearly erroneous execution guidelines is appropriate because an auction trade is subject to these guidelines for purposes of determining whether such execution is clearly erroneous. In addition, the Exchange's proposed rule change is similar to how BATS Exchange, Inc. (``BATS'') prices its Halt Auctions for ETPs. Like BATS, the Exchange is the primary listing market only for ETPs and would, therefore only have Trading Halt Auctions for ETPs. BATS Rule 11.23(d)(2)(C) provides that BATS executes orders in ETPs in a Halt auction at a price level within a ``Collar Price Range'' that maximizes the number of shares executed in the auction. Similar to the Exchange's proposal, BATS uses Collar Price Ranges that are based on the numerical guidelines set forth in the market-wide clearly erroneous execution rules.\7\ The Exchange's proposal differs from BATS's pricing mechanism because the Exchange would use the consolidated last sale price as the reference price, rather than the midpoint of a ``Valid NBBO.'' The Exchange believes that using the consolidated last sale price tracks the market-wide clearly erroneous execution rules, which similarly use the consolidated last sale price for determining whether an execution is clearly erroneous. --------------------------------------------------------------------------- \7\ As set forth in BATS Rule 11.23(a)(6), the Collar Price Range is 10% for securities with a Collar Midpoint of $25.00 or less, 5% for securities with a Collar Midpoint is [sic] greater than $25.00 but less than or equal to $50.00, and 3% for securities with a Collar Midpoint greater than $50.00. BATS Rule 11.23(a)(6) defines the Collar Midpoint as the Volume Based Tie Breaker, which is defined in BATS Rule 11.23(a)(23) as the midpoint of the NBBO if it is a Valid NBBO, with a Valid NBBO being less than the Maximum Percentage away from both the NBB and the NBO. --------------------------------------------------------------------------- 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\8\ in general, and furthers the objectives of Section 6(b)(5),\9\ in particular, because 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, 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed amendment to add Rule 1.1(s)(B) would remove impediments to and perfect the mechanism of a fair and orderly market because it would provide for price collar thresholds that are wider than the current thresholds used by the Exchange, but yet are based on an existing standard for assessing whether an auction trade is clearly erroneous. In particular, the proposed rule change responds to market events of August 24, 2015 by aligning the price collar thresholds applicable to Trading Halt Auctions with the clearly erroneous execution guidelines. The Exchange [[Page 80432]] believes the proposed price collar thresholds, which would be based on the numerical guidelines set forth in Rule 7.10(c)(1), would also remove impediments to and perfect the mechanism of a fair and orderly market and protect investors and the public interest because they would reduce the potential for a Trading Halt Auction to be a clearly erroneous execution. To this end, the Exchange's proposal is similar to how BATS prices its Halt Auctions, which are also subject to collar price ranges that are based on the numerical guidelines for clearly erroneous executions. The Exchange further believes that using the last consolidated sale price as the reference price for the Trading Halt Auction price collar thresholds would remove impediments to and perfect the mechanism of a fair and orderly market because determinations of whether an execution is clearly erroneous are also based on price movements away from the consolidated last sale prices. 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 rather to provide for a price protection mechanism to prevent Trading Halt Auctions from occurring at prices that could be a clearly erroneous execution. 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse 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-2015-121 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEARCA-2015-121. 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 the filing will also be available for inspection and copying at the NYSE's principal office and on its Internet Web site at www.nyse.com. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEARCA-2015-121 and should be submitted on or before January 14, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-32386 Filed 12-23-15; 8:45 am] BILLING CODE 8011-01-P
![80430 Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices
would be subject to for orders routing to Comments may be submitted by any of SECURITIES AND EXCHANGE
BYX, EDGA, and EDGX using the ALLB the following methods: COMMISSION
routing strategy to Members would
increase intermarket competition Electronic Comments [Release No. 34–76690; File No. SR–
because it offers customers an NYSEARCA–2015–121]
• Use the Commission’s Internet
alternative means to route orders to comment form (http://www.sec.gov/ Self-Regulatory Organizations; NYSE
those venues. In addition, the proposed rules/sro.shtml); or Arca, Inc.; Notice of Filing of Proposed
pricing would not provide any Rule Change To Amend Rule 1.1(s) To
advantage to Users when routing to • Send an email to rule-comments@
sec.gov. Please include File No. SR– Provide for Price Collar Thresholds for
BYX, EDGA, and EDGX as compared to Trading Halt Auctions
other methods of routing or connectivity BATS–2015–114 on the subject line.
available to Users by the Exchange Paper Comments December 18, 2015.
because the proposed rates are identical Pursuant to Section 19(b)(1) 1 of the
to what the Member would be subject to • Send paper comments in triplicate Securities Exchange Act of 1934 (the
if it routed to those venues directly. The to Secretary, Securities and Exchange ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Exchange believes that its proposal Commission, 100 F Street NE., notice is hereby given that, on December
would not burden intramarket Washington, DC 20549–1090. 7, 2015, NYSE Arca, Inc. (the
competition because the proposed rate All submissions should refer to File No. ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
would apply uniformly to all Members. SR–BATS–2015–114. This file number the Securities and Exchange
The Exchange believes that the Commission (the ‘‘Commission’’) the
should be included on the subject line
changes to the Fee Codes and proposed rule change as described in
if email is used. To help the
Associated Fees table of the Fee Items I and II below, which Items have
Schedule would not affect intermarket Commission process and review your
comments more efficiently, please use been prepared by the self-regulatory
nor intramarket competition because organization. The Commission is
none of these changes are designed to only one method. The Commission will
post all comments on the Commission’s publishing this notice to solicit
amend any fee or alter the manner in comments on the proposed rule change
which the Exchange assesses fees or Internet Web site (http://www.sec.gov/
from interested persons.
calculates rebates. These changes are rules/sro.shtml). Copies of the
intended to provide greater clarity to submission, all subsequent I. Self-Regulatory Organization’s
Members with regard to how the amendments, all written statements Statement of the Terms of Substance of
Exchange access fees and calculates with respect to the proposed rule the Proposed Rule Change
rebates. change that are filed with the The Exchange proposes to amend
Commission, and all written Rule 1.1(s) to provide for price collar
C. Self-Regulatory Organization’s communications relating to the
Statement on Comments on the thresholds for Trading Halt Auctions.
proposed rule change between the The text of the proposed rule change is
Proposed Rule Change Received From Commission and any person, other than
Members, Participants or Others available on the Exchange’s Web site at
those that may be withheld from the www.nyse.com, at the principal office of
The Exchange has not solicited, and public in accordance with the the Exchange, and at the Commission’s
does not intend to solicit, comments on provisions of 5 U.S.C. 552, will be Public Reference Room.
this proposed rule change. The available for Web site viewing and
Exchange has not received any printing in the Commission’s Public II. Self-Regulatory Organization’s
unsolicited written comments from Reference Room, 100 F Street NE., Statement of the Purpose of, and
Members or other interested parties. Washington, DC 20549, on official Statutory Basis for, the Proposed Rule
business days between the hours of Change
III. Date of Effectiveness of the
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such In its filing with the Commission, the
Commission Action filing will also be available for self-regulatory organization included
inspection and copying at the principal statements concerning the purpose of,
The foregoing rule change has become office of the Exchange. All comments and basis for, the proposed rule change
effective pursuant to Section 19(b)(3)(A) and discussed any comments it received
received will be posted without change;
of the Act 15 and paragraph (f) of Rule on the proposed rule change. The text
the Commission does not edit personal
19b–4 thereunder.16 At any time within of those statements may be examined at
identifying information from
60 days of the filing of the proposed rule the places specified in Item IV below.
submissions. You should submit only
change, the Commission summarily may The Exchange has prepared summaries,
information that you wish to make
temporarily suspend such rule change if set forth in sections A, B, and C below,
available publicly. All submissions
it appears to the Commission that such of the most significant parts of such
action is necessary or appropriate in the should refer to File No. SR–BATS–
2015–114 and should be submitted on statements.
public interest, for the protection of
investors, or otherwise in furtherance of or before January 14, 2016. A. Self-Regulatory Organization’s
the purposes of the Act. For the Commission, by the Division of Statement of the Purpose of, and the
Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Change
authority.17
mstockstill on DSK4VPTVN1PROD with NOTICES
Interested persons are invited to
1. Purpose
submit written data, views, and Robert W. Errett,
arguments concerning the foregoing, The Exchange proposes to amend
Deputy Secretary.
including whether the proposed rule Rule 1.1(s) to provide for price collar
[FR Doc. 2015–32384 Filed 12–23–15; 8:45 am]
change is consistent with the Act.
BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1).
15 15 U.S.C. 78s(b)(3)(A). 2 15 U.S.C. 78a.
16 17 CFR 240.19b–4(f). 17 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices 80431
thresholds for Trading Halt Auctions.4 this analysis, the Exchange will propose executes orders in ETPs in a Halt
The Exchange conducts Trading Halt to make the price collar thresholds auction at a price level within a ‘‘Collar
Auctions under Rule 7.35(f). proposed herein permanent or propose Price Range’’ that maximizes the
The Exchange proposes to amend other or additional changes to the re- number of shares executed in the
Rule 1.1(s) to respond to market events opening auction process. auction. Similar to the Exchange’s
on August 24, 2015, by adopting price Pending such analysis, the Exchange proposal, BATS uses Collar Price
collar thresholds for Trading Halt proposes to amend Rule 1.1(s) on an Ranges that are based on the numerical
Auctions. On August 24, 2015, the interim basis to add to the rule price guidelines set forth in the market-wide
market experienced extreme trading collar thresholds for Trading Halt clearly erroneous execution rules.7 The
volatility, which resulted in a Auctions that would be based on the Exchange’s proposal differs from
significantly higher number of trading thresholds for determining whether an BATS’s pricing mechanism because the
pauses under the Plan to Address execution is clearly erroneous. The Exchange would use the consolidated
Extraordinary Market Volatility (the Exchange proposes that this proposed last sale price as the reference price,
‘‘Plan’’) than the average trading day. rule change will sunset six months after rather than the midpoint of a ‘‘Valid
Because of the volume of trading the operative date of this rule change. NBBO.’’ The Exchange believes that
interest that the Exchange received For such interim measure, the using the consolidated last sale price
during these trading pauses, the Exchange proposes new Rule 1.1(s)(B) to tracks the market-wide clearly
Exchange reopened trading following specify that when the Trading Halt erroneous execution rules, which
those pauses with Trading Halt Auction Price is established by NYSE similarly use the consolidated last sale
Auctions. On that day, the Exchange Arca Equities Rule 7.35(f)(4)(A), the price for determining whether an
applied price collar thresholds for Limit Orders eligible for determining execution is clearly erroneous.
Trading Halt Auctions that were 5% for the Indicative Match Price would be
securities with a consolidated last sale limited by specified price collar 2. Statutory Basis
price of $25.00 or less, 2% for securities thresholds. As further proposed, the The proposed rule change is
with a consolidated last sale price specified percentage for the price collar consistent with Section 6(b) of the
greater than $25.00 but less than or thresholds for Trading Halt Auctions Securities Exchange Act of 1934 (the
equal to $50.00, and 1% for securities would be 10% for securities with a ‘‘Act’’),8 in general, and furthers the
with a consolidated last sale price consolidated last sale price of $25.00 or objectives of Section 6(b)(5),9 in
greater than $50.00.5 less, 5% for securities with a particular, because it is designed to
The Exchange believes that these consolidated last sale price greater than prevent fraudulent and manipulative
parameters were too narrow. The $25.00 but less than or equal to $50.00, acts and practices, to promote just and
Exchange also believes, however, that it and 3% for securities with a equitable principles of trade, to foster
is appropriate to have protections in consolidated last sale price greater than cooperation and coordination with
place for Trading Halt Auctions to $50.00. These proposed percentages are persons engaged in facilitating
assure that a reopening trade will not based on the corresponding ‘‘numerical transactions in securities, to remove
deviate significantly from prior prices, guideline’’ percentages set forth in impediments to, and perfect the
even taking into consideration natural paragraph (c)(1) of Rule 7.10 (Clearly mechanism of, a free and open market
price movements for a security. The Erroneous Executions) for the Core and a national market system and, in
Exchange will therefore be conducting Trading Session.6 general, to protect investors and the
an analysis to identify what changes, if The Exchange believes that by public interest.
any, would be appropriate to balance adopting price collar thresholds for The Exchange believes that the
allowances for natural price movement Trading Halt Auctions based on the proposed amendment to add Rule
in a Trading Halt Auction, while at the clearly erroneous execution guidelines, 1.1(s)(B) would remove impediments to
same time avoiding significant price the Exchange would be widening the and perfect the mechanism of a fair and
deviations that would not be in line thresholds from their current orderly market because it would provide
with the fair value of securities listed on percentages, thereby ending the use of for price collar thresholds that are wider
the Exchange, which are all Exchange the current overly-narrow price collar than the current thresholds used by the
Traded Products (‘‘ETP’’). Following thresholds. The Exchange further Exchange, but yet are based on an
believes that using temporary price existing standard for assessing whether
4 Rule 1.1(s) defines the Indicative Match Price collar thresholds tied to the clearly an auction trade is clearly erroneous. In
for the Opening Auction, the Market Order Auction, erroneous execution guidelines is particular, the proposed rule change
the Closing Auction, and the Trading Halt Auction. appropriate because an auction trade is responds to market events of August 24,
Rule 1.1(s)(A) further provides that when the subject to these guidelines for purposes
Market Order Auction Price or Closing Auction 2015 by aligning the price collar
Price is established by NYSE Arca Equities Rule
of determining whether such execution thresholds applicable to Trading Halt
7.35(c)(3)(A)(1) or 7.35(e)(3), the Limit Orders is clearly erroneous. In addition, the Auctions with the clearly erroneous
eligible for determining the Indicative Match Price Exchange’s proposed rule change is execution guidelines. The Exchange
shall be limited by the price collar thresholds similar to how BATS Exchange, Inc.
established by the Corporation. The rule further
provides that the Corporation shall set and modify
(‘‘BATS’’) prices its Halt Auctions for 7 As set forth in BATS Rule 11.23(a)(6), the Collar
such thresholds from time to time upon prior notice ETPs. Like BATS, the Exchange is the Price Range is 10% for securities with a Collar
to ETP Holders. primary listing market only for ETPs Midpoint of $25.00 or less, 5% for securities with
5 The price collar thresholds were last modified
and would, therefore only have Trading a Collar Midpoint is [sic] greater than $25.00 but
on April 13, 2015 and September 8, 2015. See NYSE less than or equal to $50.00, and 3% for securities
mstockstill on DSK4VPTVN1PROD with NOTICES
Halt Auctions for ETPs. BATS Rule with a Collar Midpoint greater than $50.00. BATS
Arca Trader Update, ‘‘NYSE Arca Equities
Enhancements to Auction Collars,’’ dated April 10, 11.23(d)(2)(C) provides that BATS Rule 11.23(a)(6) defines the Collar Midpoint as the
2015, and NYSE Arca Trader Update, ‘‘NYSE Arca Volume Based Tie Breaker, which is defined in
Equities Enhancements to Auction Collars,’’ dated 6 As set forth in Rule 7.10(c)(1), for securities BATS Rule 11.23(a)(23) as the midpoint of the
September 4, 2015, available here: https:// priced between $0.00 and $25.00, the numerical NBBO if it is a Valid NBBO, with a Valid NBBO
www.nyse.com/trader-update/history and here: guideline is 10%, for securities priced between being less than the Maximum Percentage away from
https://www.nyse.com/publicdocs/nyse/markets/ $25.01 and $50.00, the numerical guideline is 5%, both the NBB and the NBO.
8 15 U.S.C. 78f(b).
nyse-arca/NYSE_Arca_Trader_Update_Auction_ and for securities priced greater than $50.00, the
Collars_Sept_2015.pdf. numerical guideline is 3%. 9 15 U.S.C. 78f(b)(5).
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![80432 Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices
believes the proposed price collar IV. Solicitation of Comments For the Commission, by the Division of
thresholds, which would be based on Trading and Markets, pursuant to delegated
the numerical guidelines set forth in Interested persons are invited to authority.10
Rule 7.10(c)(1), would also remove submit written data, views, and Robert W. Errett,
impediments to and perfect the arguments concerning the foregoing, Deputy Secretary.
mechanism of a fair and orderly market including whether the proposed rule [FR Doc. 2015–32386 Filed 12–23–15; 8:45 am]
and protect investors and the public change is consistent with the Act. BILLING CODE 8011–01–P
interest because they would reduce the Comments may be submitted by any of
potential for a Trading Halt Auction to the following methods:
be a clearly erroneous execution. To this SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
end, the Exchange’s proposal is similar
to how BATS prices its Halt Auctions, • Use the Commission’s Internet [Release No. 34–76692; File No. SR–BX–
which are also subject to collar price comment form (http://www.sec.gov/ 2015–081]
ranges that are based on the numerical rules/sro.shtml); or
guidelines for clearly erroneous Self-Regulatory Organizations;
• Send an email to rule-comments@ NASDAQ OMX BX, Inc.; Notice of Filing
executions. The Exchange further sec.gov. Please include File Number SR–
believes that using the last consolidated and Immediate Effectiveness of
NYSEARCA–2015–121 on the subject Proposed Rule Change Regarding
sale price as the reference price for the
line. Fees and Rebates and Tiers Related to
Trading Halt Auction price collar
thresholds would remove impediments Paper Comments BX Options
to and perfect the mechanism of a fair December 18, 2015.
and orderly market because • Send paper comments in triplicate
to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
determinations of whether an execution Securities Exchange Act of 1934
is clearly erroneous are also based on Commission, 100 F Street NE.,
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
price movements away from the Washington, DC 20549–1090.
notice is hereby given that, on December
consolidated last sale prices. All submissions should refer to File 11, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’
B. Self-Regulatory Organization’s Number SR–NYSEARCA–2015–121. or ‘‘Exchange’’) filed with the Securities
Statement on Burden on Competition This file number should be included on and Exchange Commission (‘‘SEC’’ or
the subject line if email is used. To help ‘‘Commission’’) the proposed rule
The Exchange does not believe that the Commission process and review change as described in Items I, II, and
the proposed rule change will impose your comments more efficiently, please III below, which Items have been
any burden on competition that is not use only one method. The Commission prepared by the Exchange. The
necessary or appropriate in furtherance will post all comments on the Commission is publishing this notice to
of the purposes of the Act. The Commission’s Internet Web site (http:// solicit comments on the proposed rule
proposed change is not designed to www.sec.gov/rules/sro.shtml). Copies of change from interested persons.
address any competitive issue but rather the submission, all subsequent I. Self-Regulatory Organization’s
to provide for a price protection amendments, all written statements Statement of the Terms of Substance of
mechanism to prevent Trading Halt with respect to the proposed rule the Proposed Rule Change
Auctions from occurring at prices that change that are filed with the
could be a clearly erroneous execution. The Exchange proposes to amend its
Commission, and all written
Options Pricing at Chapter XV Section
C. Self-Regulatory Organization’s communications relating to the
2, entitled ‘‘BX Options Market—Fees
Statement on Comments on the proposed rule change between the and Rebates,’’ which governs pricing for
Proposed Rule Change Received From Commission and any person, other than BX members using the BX Options
Members, Participants, or Others those that may be withheld from the Market (‘‘BX Options’’). The Exchange
public in accordance with the proposes to modify certain fees and
No written comments were solicited provisions of 5 U.S.C. 552, will be rebates (per executed contract) and to
or received with respect to the proposed available for Web site viewing and adopt tiers applicable to fees and rebates
rule change. printing in the Commission’s Public (each a ‘‘Tier’’ and together the ‘‘Tiers’’).
III. Date of Effectiveness of the Reference Room, 100 F Street NE., The text of the proposed rule change
Proposed Rule Change and Timing for Washington, DC 20549, on official is available on the Exchange’s Web site
Commission Action business days between the hours of at http://nasdaqomxbx.cchwall
10:00 a.m. and 3:00 p.m. Copies of the street.com/, at the principal office of the
Within 45 days of the date of filing will also be available for Exchange, and at the Commission’s
publication of this notice in the Federal inspection and copying at the NYSE’s Public Reference Room.
Register or within such longer period principal office and on its Internet Web
up to 90 days (i) as the Commission may II. Self-Regulatory Organization’s
site at www.nyse.com. All comments Statement of the Purpose of, and
designate if it finds such longer period received will be posted without change;
to be appropriate and publishes its Statutory Basis for, the Proposed Rule
the Commission does not edit personal Change
reasons for so finding or (ii) as to which identifying information from
mstockstill on DSK4VPTVN1PROD with NOTICES
the self-regulatory organization submissions. You should submit only In its filing with the Commission, the
consents, the Commission will: Exchange included statements
information that you wish to make
(A) By order approve or disapprove concerning the purpose of and basis for
available publicly. All submissions
the proposed rule change, or the proposed rule change and discussed
should refer to File Number SR–
(B) institute proceedings to determine NYSEARCA–2015–121 and should be 10 17 CFR 200.30–3(a)(12).
whether the proposed rule change submitted on or before January 14, 2016. 1 15 U.S.C. 78s(b)(1).
should be disapproved. 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 17:57 Dec 23, 2015 Jkt 238001 PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 E:\FR\FM\24DEN1.SGM 24DEN1](https://thefederalregister.org/doc/80_FR_80677/page/3.svg)
Document Created: 2015-12-24 02:24:52
Document Modified: 2015-12-24 02:24:52
| 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 80430 |
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