81_FR_14965 81 FR 14912 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Deadline for Implementing Rule 6.61(a)(2) and (3)

81 FR 14912 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Deadline for Implementing Rule 6.61(a)(2) and (3)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 53 (March 18, 2016)

Page Range14912-14914
FR Document2016-06097

Federal Register, Volume 81 Issue 53 (Friday, March 18, 2016)
[Federal Register Volume 81, Number 53 (Friday, March 18, 2016)]
[Notices]
[Pages 14912-14914]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06097]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77357; File No. SR-NYSEARCA-2016-41]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Extending the 
Deadline for Implementing Rule 6.61(a)(2) and (3)

March 14, 2016.
    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 March 4, 2016, 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the deadline for implementing Rule 
6.61(a)(2) and (3) until July 31, 2016. 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 is proposing to extend the deadline for implementing 
Rule 6.61(a)(2) and (3) until July 31, 2016. The current implementation 
deadline is March 4, 2016.
    In March 2015, the Commission approved Rule 6.61, which provides a 
price protection risk mechanism for Market Maker quotes.\4\ Rule 6.61 
provides two layers of price protection to incoming Market Maker 
quotes, rejecting those Market Maker quotes that exceed certain 
parameters, as a risk mitigation tool.\5\ The Exchange has

[[Page 14913]]

implemented the first layer of price protection (the NBBO Reasonability 
Check) and has until one year from the date of the Approval Order to 
implement the second layer of protection (the Underlying Stock Price/
Strike Price Check) pursuant to Commentary .01 to Rule 6.61, which is 
March 4, 2016 (the ``March 4th Deadline'').\6\
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    \4\ See Securities Exchange Act Release No. 74441 (March 4, 
2015), 80 FR 12664 (March 10, 2015) (SR-NYSEArca-2014-150) (Approval 
Order); see also Securities Exchange Act Release No. 74018 (January 
8, 2015), 80 FR 1982 (January 14, 2015) (SR-NYSEArca-2014-150) 
(Notice).
    \5\ The first layer of price protection assesses incoming sell 
quotes against the NBB and incoming buy quotes against the NBO (the 
``NBBO Price Reasonability Check''). Specifically, per Rule 
6.61(a)(1), provided that an NBBO is available, a Market Maker quote 
would be rejected if it is priced a specified dollar amount or 
percentage through the contra-side NBBO. The second layer of price 
protection assesses the price of call or put bids against a 
specified benchmark (the ``Underlying Stock Price/Strike Price 
Check''), per Rule 6.61(a)(2) and (3). This second layer of 
protection applies to bids in call options or put options when (1) 
there is no NBBO available, for example, during pre-opening or prior 
to conducting a re-opening after a trading halt, or (2) if the NBBO 
is so wide as to not reflect an appropriate price for the respective 
options series.
    \6\ See Securities Exchange Act Release No. 75156 (June 11, 
2015), 80 FR 34756 (June 17, 2015) (SR-NYSEArca-2015-45).
---------------------------------------------------------------------------

    Because the Exchange has not yet implemented the Underlying Stock 
Price/Strike Price Check, the Exchange proposes to modify Commentary 
.01 to Rule 6.61 to extend the March 4th Deadline to implement Rule 
6.61(a)(2) and (3) until July 31, 2016. The Exchange has finalized the 
technology related to this aspect of the Rule and will be filing with 
the Commission a separate proposed rule change to modify the Rule as it 
relates to the Underlying Stock Price/Strike Price Check. The Exchange 
believes the proposed extension would provide the Exchange with 
sufficient time to review the proposed modifications with the 
Commission prior to implementing the rule, as modified.
    Finally, the Exchange believes that because the Underlying Stock 
Price/Strike Price Check is an approved rule of the Exchange, providing 
the Exchange with additional time to implement the Rule would ensure 
that Market Makers and investors are afforded the opportunity to 
benefit from this price protection feature once it is implemented.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\7\ in general, and furthers the objectives of Section 6(b)(5),\8\ 
in particular, in that it is designed to promote just and equitable 
principles of trade, 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Specifically, the Exchange believes the proposal promotes just and 
equitable principles of trade and removes impediments to, and perfects 
the mechanism of, a free and open market and a national market system 
because an extension of the March 4th Deadline would enable the 
Exchange to implement the finalized technology related to the 
Underlying Stock Price/Strike Price Check. Moreover, the proposed 
extension would assist with the maintenance of a fair and orderly 
market and protect investors and the public interest because it would 
afford the Exchange additional time to file, and review, with the 
Commission a proposed modification of the Rule as it relates to the 
Underlying Stock Price/Strike Price Check prior to implementing the 
rule, as modified.
    Finally, the Exchange believes that because the Underlying Stock 
Price/Strike Price Check is an approved rule of the Exchange, providing 
the Exchange with additional time to implement the Rule would ensure 
that Market Makers and investors are afforded the opportunity to 
benefit from this price protection feature once it is implemented--even 
if in modified form.

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 rule change is 
not designed to address any competitive issues, but rather, to extend 
the deadline for implementing the Underlying Stock Price/Strike Price 
Check pending finalization of the technology associated with that 
feature.

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

    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 for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) 
thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and 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 
Commission has waived this requirement in this case.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative for 30 days after the date of filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest as it will allow the 
Exchange to immediately extend the implementation deadline for the 
Underlying Stock Price/Strike Price Check without delay and provide the 
Exchange additional time to implement the technology associated with 
such price protection. Accordingly, the Commission hereby waives the 
30-day operative delay requirement and designates the proposed rule 
change as operative upon filing.\13\
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the 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 to 
determine whether the proposed rule should be approved or 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 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-2016-41 on the subject line.

[[Page 14914]]

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-2016-41. 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 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-2016-41, and should 
be submitted on or before April 8, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-06097 Filed 3-17-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                    14912                              Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices

                                                    participants at other exchanges, such                      amendments, all written statements                    solicit comments on the proposed rule
                                                    market participants are welcome to                         with respect to the proposed rule                     change from interested persons.
                                                    become CBOE market participants.                           change that are filed with the
                                                                                                                                                                     I. Self-Regulatory Organization’s
                                                                                                               Commission, and all written
                                                    C. Self-Regulatory Organization’s                                                                                Statement of the Terms of Substance of
                                                                                                               communications relating to the
                                                    Statement on Comments on the                                                                                     the Proposed Rule Change
                                                                                                               proposed rule change between the
                                                    Proposed Rule Change Received From                                                                                  The Exchange proposes to extend the
                                                                                                               Commission and any person, other than
                                                    Members, Participants, or Other                                                                                  deadline for implementing Rule
                                                                                                               those that may be withheld from the
                                                      The Exchange neither solicited nor                       public in accordance with the                         6.61(a)(2) and (3) until July 31, 2016.
                                                    received comments on the proposed                          provisions of 5 U.S.C. 552, will be                   The proposed rule change is available
                                                    rule change.                                               available for Web site viewing and                    on the Exchange’s Web site at
                                                                                                               printing in the Commission’s Public                   www.nyse.com, at the principal office of
                                                    II. Date of Effectiveness of the Proposed
                                                                                                               Reference Room, 100 F Street NE.,                     the Exchange, and at the Commission’s
                                                    Rule Change and Timing for
                                                                                                               Washington, DC 20549 on official                      Public Reference Room.
                                                    Commission Action
                                                                                                               business days between the hours of                    II. Self-Regulatory Organization’s
                                                       The foregoing rule change has become                    10:00 a.m. and 3:00 p.m. Copies of such
                                                    effective pursuant to Section 19(b)(3)(A)                                                                        Statement of the Purpose of, and
                                                                                                               filing also will be available for                     Statutory Basis for, the Proposed Rule
                                                    of the Act 11 and paragraph (f) of Rule                    inspection and copying at the principal
                                                    19b–4 12 thereunder. At any time within                                                                          Change
                                                                                                               office of the Exchange. All comments
                                                    60 days of the filing of the proposed rule                 received will be posted without change;                  In its filing with the Commission, the
                                                    change, the Commission summarily may                       the Commission does not edit personal                 self-regulatory organization included
                                                    temporarily suspend such rule change if                    identifying information from                          statements concerning the purpose of,
                                                    it appears to the Commission that such                     submissions. You should submit only                   and basis for, the proposed rule change
                                                    action is necessary or appropriate in the                  information that you wish to make                     and discussed any comments it received
                                                    public interest, for the protection of                     available publicly. All submissions                   on the proposed rule change. The text
                                                    investors, or otherwise in furtherance of                  should refer to File Number SR–CBOE–                  of those statements may be examined at
                                                    the purposes of the Act. If the                            2016–018, and should be submitted on                  the places specified in Item IV below.
                                                    Commission takes such action, the                          or before April 8, 2016.                              The Exchange has prepared summaries,
                                                    Commission will institute proceedings                                                                            set forth in sections A, B, and C below,
                                                    to determine whether the proposed rule                       For the Commission, by the Division of              of the most significant parts of such
                                                                                                               Trading and Markets, pursuant to delegated
                                                    change should be approved or                               authority.13
                                                                                                                                                                     statements.
                                                    disapproved.
                                                                                                               Robert W. Errett,                                     A. Self-Regulatory Organization’s
                                                    IV. Solicitation of Comments                               Deputy Secretary.                                     Statement of the Purpose of, and the
                                                      Interested persons are invited to                        [FR Doc. 2016–06092 Filed 3–17–16; 8:45 am]           Statutory Basis for, the Proposed Rule
                                                    submit written data, views, and                            BILLING CODE 8011–01–P
                                                                                                                                                                     Change
                                                    arguments concerning the foregoing,                                                                              1. Purpose
                                                    including whether the proposed rule
                                                                                                               SECURITIES AND EXCHANGE                                  The Exchange is proposing to extend
                                                    change is consistent with the Act.
                                                                                                               COMMISSION                                            the deadline for implementing Rule
                                                    Comments may be submitted by any of
                                                                                                                                                                     6.61(a)(2) and (3) until July 31, 2016.
                                                    the following methods:
                                                                                                                                                                     The current implementation deadline is
                                                    Electronic Comments                                        [Release No. 34–77357; File No. SR–                   March 4, 2016.
                                                                                                               NYSEARCA–2016–41]
                                                      • Use the Commission’s Internet                                                                                   In March 2015, the Commission
                                                    comment form (http://www.sec.gov/                          Self-Regulatory Organizations; NYSE                   approved Rule 6.61, which provides a
                                                    rules/sro.shtml); or                                       Arca, Inc.; Notice of Filing and                      price protection risk mechanism for
                                                      • Send an email to rule-comments@                        Immediate Effectiveness of Proposed                   Market Maker quotes.4 Rule 6.61
                                                    sec.gov. Please include File Number SR–                    Rule Change Extending the Deadline                    provides two layers of price protection
                                                    CBOE–2016–018 on the subject line.                         for Implementing Rule 6.61(a)(2) and                  to incoming Market Maker quotes,
                                                                                                               (3)                                                   rejecting those Market Maker quotes that
                                                    Paper Comments                                                                                                   exceed certain parameters, as a risk
                                                      • Send paper comments in triplicate                      March 14, 2016.                                       mitigation tool.5 The Exchange has
                                                    to Brent J. Fields, Secretary, Securities                     Pursuant to Section 19(b)(1) 1 of the                 4 See Securities Exchange Act Release No. 74441
                                                    and Exchange Commission, 100 F Street                      Securities Exchange Act of 1934 (the                  (March 4, 2015), 80 FR 12664 (March 10, 2015) (SR–
                                                    NE., Washington, DC 20549–1090.                            ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                NYSEArca–2014–150) (Approval Order); see also
                                                    All submissions should refer to File                       notice is hereby given that, on March 4,              Securities Exchange Act Release No. 74018 (January
                                                    Number SR–CBOE–2016–018. This file                         2016, NYSE Arca, Inc. (the ‘‘Exchange’’               8, 2015), 80 FR 1982 (January 14, 2015) (SR–
                                                                                                                                                                     NYSEArca–2014–150) (Notice).
                                                    number should be included on the                           or ‘‘NYSE Arca’’) filed with the                         5 The first layer of price protection assesses
                                                    subject line if email is used. To help the                 Securities and Exchange Commission                    incoming sell quotes against the NBB and incoming
                                                    Commission process and review your                         (the ‘‘Commission’’) the proposed rule                buy quotes against the NBO (the ‘‘NBBO Price
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    comments more efficiently, please use                      change as described in Items I and II                 Reasonability Check’’). Specifically, per Rule
                                                                                                                                                                     6.61(a)(1), provided that an NBBO is available, a
                                                    only one method. The Commission will                       below, which Items have been prepared                 Market Maker quote would be rejected if it is priced
                                                    post all comments on the Commission’s                      by the self-regulatory organization. The              a specified dollar amount or percentage through the
                                                    Internet Web site (http://www.sec.gov/                     Commission is publishing this notice to               contra-side NBBO. The second layer of price
                                                    rules/sro.shtml). Copies of the                                                                                  protection assesses the price of call or put bids
                                                                                                                                                                     against a specified benchmark (the ‘‘Underlying
                                                    submission, all subsequent                                   13 17 CFR 200.30–3(a)(12).                          Stock Price/Strike Price Check’’), per Rule 6.61(a)(2)
                                                                                                                 1 15 U.S.C. 78s(b)(1).                              and (3). This second layer of protection applies to
                                                      11 15   U.S.C. 78s(b)(3)(A).                               2 15 U.S.C. 78a.
                                                                                                                                                                     bids in call options or put options when (1) there
                                                      12 17   CFR 240.19b–4(f).                                  3 17 CFR 240.19b–4.                                 is no NBBO available, for example, during pre-



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                                                                                     Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices                                                       14913

                                                    implemented the first layer of price                     implement the finalized technology                        A proposed rule change filed under
                                                    protection (the NBBO Reasonability                       related to the Underlying Stock Price/                 Rule 19b–4(f)(6) 11 normally does not
                                                    Check) and has until one year from the                   Strike Price Check. Moreover, the                      become operative for 30 days after the
                                                    date of the Approval Order to                            proposed extension would assist with                   date of filing. However, pursuant to
                                                    implement the second layer of                            the maintenance of a fair and orderly                  Rule 19b–4(f)(6)(iii),12 the Commission
                                                    protection (the Underlying Stock Price/                  market and protect investors and the                   may designate a shorter time if such
                                                    Strike Price Check) pursuant to                          public interest because it would afford                action is consistent with the protection
                                                    Commentary .01 to Rule 6.61, which is                    the Exchange additional time to file, and              of investors and the public interest. The
                                                    March 4, 2016 (the ‘‘March 4th                           review, with the Commission a                          Exchange has asked the Commission to
                                                    Deadline’’).6                                            proposed modification of the Rule as it                waive the 30-day operative delay so that
                                                       Because the Exchange has not yet                      relates to the Underlying Stock Price/                 the proposal may become operative
                                                    implemented the Underlying Stock                         Strike Price Check prior to                            immediately upon filing. The
                                                    Price/Strike Price Check, the Exchange                   implementing the rule, as modified.                    Commission believes that waiving the
                                                    proposes to modify Commentary .01 to                        Finally, the Exchange believes that                 30-day operative delay is consistent
                                                    Rule 6.61 to extend the March 4th                        because the Underlying Stock Price/                    with the protection of investors and the
                                                    Deadline to implement Rule 6.61(a)(2)                    Strike Price Check is an approved rule                 public interest as it will allow the
                                                    and (3) until July 31, 2016. The                         of the Exchange, providing the                         Exchange to immediately extend the
                                                    Exchange has finalized the technology                    Exchange with additional time to                       implementation deadline for the
                                                    related to this aspect of the Rule and                   implement the Rule would ensure that                   Underlying Stock Price/Strike Price
                                                    will be filing with the Commission a                     Market Makers and investors are                        Check without delay and provide the
                                                    separate proposed rule change to modify                  afforded the opportunity to benefit from               Exchange additional time to implement
                                                    the Rule as it relates to the Underlying                 this price protection feature once it is               the technology associated with such
                                                    Stock Price/Strike Price Check. The                      implemented—even if in modified form.                  price protection. Accordingly, the
                                                    Exchange believes the proposed                           B. Self-Regulatory Organization’s                      Commission hereby waives the 30-day
                                                    extension would provide the Exchange                     Statement on Burden on Competition                     operative delay requirement and
                                                    with sufficient time to review the                                                                              designates the proposed rule change as
                                                    proposed modifications with the                             The Exchange does not believe that                  operative upon filing.13
                                                    Commission prior to implementing the                     the proposed rule change will impose                      At any time within 60 days of the
                                                    rule, as modified.                                       any burden on competition that is not                  filing of the proposed rule change, the
                                                       Finally, the Exchange believes that                   necessary or appropriate in furtherance                Commission summarily may
                                                    because the Underlying Stock Price/                      of the purposes of the Act. The                        temporarily suspend such rule change if
                                                    Strike Price Check is an approved rule                   proposed rule change is not designed to                it appears to the Commission that such
                                                    of the Exchange, providing the                           address any competitive issues, but                    action is necessary or appropriate in the
                                                    Exchange with additional time to                         rather, to extend the deadline for                     public interest, for the protection of
                                                    implement the Rule would ensure that                     implementing the Underlying Stock                      investors, or otherwise in furtherance of
                                                    Market Makers and investors are                          Price/Strike Price Check pending                       the purposes of the Act. If the
                                                    afforded the opportunity to benefit from                 finalization of the technology associated              Commission takes such action, the
                                                    this price protection feature once it is                 with that feature.                                     Commission shall institute proceedings
                                                    implemented.                                             C. Self-Regulatory Organization’s                      to determine whether the proposed rule
                                                                                                             Statement on Comments on the                           should be approved or disapproved.
                                                    2. Statutory Basis
                                                                                                             Proposed Rule Change Received From                     IV. Solicitation of Comments
                                                       The proposed rule change is                           Members, Participants, or Others
                                                    consistent with Section 6(b) of the Act,7                                                                         Interested persons are invited to
                                                    in general, and furthers the objectives of                 No written comments were solicited                   submit written data, views, and
                                                    Section 6(b)(5),8 in particular, in that it              or received with respect to the proposed               arguments concerning the foregoing,
                                                    is designed to promote just and                          rule change.                                           including whether the proposed rule
                                                    equitable principles of trade, to remove                 III. Date of Effectiveness of the                      change is consistent with the Act.
                                                    impediments to and perfect the                           Proposed Rule Change and Timing for                    Comments may be submitted by any of
                                                    mechanism of a free and open market                      Commission Action                                      the following methods:
                                                    and a national market system, and in                        Because the proposed rule change                    Electronic Comments
                                                    general, to protect investors and the
                                                    public interest.
                                                                                                             does not (i) significantly affect the                     • Use the Commission’s Internet
                                                                                                             protection of investors or the public                  comment form (http://www.sec.gov/
                                                       Specifically, the Exchange believes                   interest; (ii) impose any significant
                                                    the proposal promotes just and                                                                                  rules/sro.shtml); or
                                                    equitable principles of trade and
                                                                                                             burden on competition; and (iii) become                   • Send an email to rule-comments@
                                                                                                             operative for 30 days from the date on                 sec.gov. Please include File Number SR–
                                                    removes impediments to, and perfects                     which it was filed, or such shorter time
                                                    the mechanism of, a free and open                                                                               NYSEARCA–2016–41 on the subject
                                                                                                             as the Commission may designate if                     line.
                                                    market and a national market system                      consistent with the protection of
                                                    because an extension of the March 4th                    investors and the public interest, the                 description and text of the proposed rule change,
                                                    Deadline would enable the Exchange to                    proposed rule change has become                        at least five business days prior to the date of filing
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                             effective pursuant to Section 19(b)(3)(A)              of the proposed rule change, or such shorter time
                                                    opening or prior to conducting a re-opening after a                                                             as designated by the Commission. The Commission
                                                    trading halt, or (2) if the NBBO is so wide as to not    of the Act 9 and Rule 19b–4(f)(6)                      has waived this requirement in this case.
                                                    reflect an appropriate price for the respective          thereunder.10                                             11 17 CFR 240.19b–4(f)(6).
                                                    options series.                                                                                                    12 17 CFR 240.19b–4(f)(6)(iii).
                                                       6 See Securities Exchange Act Release No. 75156         9 15  U.S.C. 78s(b)(3)(A).                              13 For purposes only of waiving the 30-day
                                                    (June 11, 2015), 80 FR 34756 (June 17, 2015) (SR–          10 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–   operative delay, the Commission has also
                                                    NYSEArca–2015–45).                                       4(f)(6)(iii) requires the Exchange to give the         considered the proposed rule’s impact on
                                                       7 15 U.S.C. 78f(b).
                                                                                                             Commission written notice of the Exchange’s intent     efficiency, competition, and capital formation. See
                                                       8 15 U.S.C. 78f(b)(5).                                to file the proposed rule change, along with a brief   15 U.S.C. 78c(f).



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                                                    14914                             Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices

                                                    Paper Comments                                            SECURITIES AND EXCHANGE                                Discovery Policies and Procedures to
                                                                                                              COMMISSION                                             add two additional pricing windows to
                                                      • Send paper comments in triplicate                                                                            accommodate the submission of end-of-
                                                    to Secretary, Securities and Exchange                     [Release No. 34–77361; File No. SR–ICC–                day prices relating to such Asia-Pacific
                                                    Commission, 100 F Street NE.,                             2016–002]                                              CDS Contracts. Finally, ICC has
                                                    Washington, DC 20549–1090.                                                                                       proposed to amend the ICC Risk
                                                                                                              Self-Regulatory Organizations; ICE
                                                    All submissions should refer to File                                                                             Management Framework to include the
                                                                                                              Clear Credit LLC; Order Approving
                                                                                                                                                                     risk horizon utilized for instruments
                                                    Number SR–NYSEARCA–2016–41. This                          Proposed Rule Change To Provide for
                                                                                                                                                                     traded during Asia-Pacific hours and to
                                                    file number should be included on the                     the Clearance of Certain Asia-Pacific
                                                                                                                                                                     amend the ICC Risk Management Model
                                                    subject line if email is used. To help the                Credit Default Swap Contracts
                                                                                                                                                                     Description document to add Asia-
                                                    Commission process and review your                                                                               Pacific to the list of regions to be
                                                                                                              March 14, 2016.
                                                    comments more efficiently, please use                                                                            considered in General Wrong Way Risk
                                                    only one method. The Commission will                      I. Introduction                                        calculations.
                                                    post all comments on the Commission’s                        On January 27, 2016, ICE Clear Credit                  ICC has represented that the iTraxx
                                                    Internet Web site (http://www.sec.gov/                    LLC (‘‘ICC’’) filed with the Securities                Asia/Pacific Contracts have similar
                                                    rules/sro.shtml). Copies of the                           and Exchange Commission                                terms to the CDX North American IG/
                                                    submission, all subsequent                                (‘‘Commission’’), pursuant to Section                  HY/XO CDS contracts (‘‘CDX NA
                                                    amendments, all written statements                        19(b)(1) of the Securities Exchange Act                Contracts’’) currently cleared by ICC and
                                                    with respect to the proposed rule                         of 1934 (‘‘Act’’) 1 and Rule 19b–4                     governed by Subchapter 26A of the ICC
                                                    change that are filed with the                            thereunder,2 a proposed rule change                    Rules, the CDX Emerging Markets CDS
                                                    Commission, and all written                               (SR–ICC–2016–002) to provide the basis                 contracts (‘‘CDX EM Contracts’’)
                                                    communications relating to the                            for ICC to clear certain Asia-Pacific                  currently cleared by ICC and governed
                                                    proposed rule change between the                          credit default swap (‘‘CDS’’) contracts.               by Subchapter 26C of the ICC Rules, and
                                                    Commission and any person, other than                     On January 29, 2016, ICC filed                         the iTraxx Europe CDS contracts
                                                    those that may be withheld from the                       Amendment No. 1 to the proposal.3 The                  (‘‘iTraxx Europe Contracts’’) currently
                                                                                                              proposed rule change, as amended, was                  cleared by ICC and governed by
                                                    public in accordance with the
                                                                                                              published for comment in the Federal                   Subchapter 26F of the ICC Rules. ICC
                                                    provisions of 5 U.S.C. 552, will be
                                                                                                              Register on February 12, 2016.4 The                    asserts that the proposed rules found in
                                                    available for Web site viewing and                                                                               Subchapter 26J largely mirror the ICC
                                                    printing in the Commission’s Public                       Commission did not receive comments
                                                                                                              on the proposed rule change. For the                   Rules for CDX NA Contracts in
                                                    Reference Room, 100 F Street NE.,                                                                                Subchapter 26A, CDX EM Contracts in
                                                    Washington, DC 20549, on official                         reasons discussed below, the
                                                                                                              Commission is approving the proposed                   Subchapter 26C, and iTraxx Europe
                                                    business days between the hours of                                                                               Contracts in Subchapter 26F, with
                                                                                                              rule change.
                                                    10:00 a.m. and 3:00 p.m. Copies of the                                                                           certain modifications that reflect
                                                    filing also will be available for                         II. Description of the Proposed Rule                   differences in terms and market
                                                    inspection and copying at the principal                   Change                                                 conventions between those contracts
                                                    office of the Exchange. All comments                        The purpose of the proposed rule                     and iTraxx Asia/Pacific Contracts.
                                                    received will be posted without change;                   change is to adopt new rules that will                 Additionally, iTraxx Asia/Pacific
                                                    the Commission does not edit personal                     provide the basis for ICC to clear certain             Contracts will be denominated in
                                                    identifying information from                              Asia-Pacific CDS contracts. Specifically,              United States Dollars.
                                                    submissions. You should submit only                       ICC has proposed to amend Chapter 26                      ICC Rule 26J–102 (Definitions) will
                                                    information that you wish to make                         of the ICC Rulebook (‘‘ICC Rules’’) to                 set forth the definitions used for the
                                                    available publicly. All submissions                       add Subchapters 26J and 26L to provide                 iTraxx Asia/Pacific Contracts. ICC has
                                                    should refer to File Number SR–                           for the clearance of iTraxx Asia/Pacific               represented that the definitions are
                                                    NYSEARCA–2016–41, and should be                           CDS contracts (‘‘iTraxx Asia/Pacific                   substantially the same as the definitions
                                                                                                              Contracts’’) and Standard Asia/Pacific                 found in Subchapters 26A, 26C, and 26F
                                                    submitted on or before April 8, 2016.
                                                                                                              Sovereign CDS contracts (‘‘SAS                         of the ICC Rules, other than certain
                                                      For the Commission, by the Division of                                                                         conforming changes.
                                                                                                              Contracts’’, collectively with iTraxx
                                                    Trading and Markets, pursuant to delegated                                                                          ICC Rules 26J–309 (Acceptance of
                                                                                                              Asia/Pacific Contracts ‘‘Asia-Pacific
                                                    authority.14                                                                                                     iTraxx Asia/Pacific Untranched
                                                                                                              CDS Contracts’’). The SAS Contracts
                                                    Robert W. Errett,                                                                                                Contracts by ICE Clear Credit), 26J–315
                                                                                                              will reference the Commonwealth of
                                                    Deputy Secretary.                                                                                                (Terms of the Cleared iTraxx Asia/
                                                                                                              Australia, the Malaysian Federation, the
                                                                                                                                                                     Pacific Untranched Contract), 26J–316
                                                    [FR Doc. 2016–06097 Filed 3–17–16; 8:45 am]               People’s Republic of China, the
                                                                                                                                                                     (Updating Index Version of Fungible
                                                    BILLING CODE 8011–01–P                                    Republic of Indonesia, the Republic of
                                                                                                                                                                     Contracts After a Credit Event or a
                                                                                                              Korea and the Republic of the
                                                                                                                                                                     Succession Event; Updating Relevant
                                                                                                              Philippines.
                                                                                                                                                                     Untranched Standard Terms
                                                                                                                Additionally, ICC has proposed to
                                                                                                                                                                     Supplement), and 26J–317 (Terms of
                                                                                                              amend the ICC End-of-Day Price
                                                                                                                                                                     iTraxx Asia/Pacific Untranched
                                                                                                                                                                     Contracts) will reflect or incorporate the
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                                1 15 U.S.C. 78s(b)(1).
                                                                                                                2 17 CFR 240.19b–4.                                  basic contract specifications for iTraxx
                                                                                                                3 In Amendment No. 1, ICC deleted a factual error    Asia/Pacific Contracts and, according to
                                                                                                              in the originally filed proposal that stated that no   ICC, are substantially the same as under
                                                                                                              changes would be made to ICC’s Risk Management         Subchapters 26A, 26C, and 26F of the
                                                                                                              Framework. Amendment No. 1 amended and
                                                                                                              replaced the original filing in its entirety.
                                                                                                                                                                     ICC Rules.
                                                                                                                4 Securities Exchange Act Release No. 34–77079          ICC has represented that SAS
                                                                                                              (February 8, 2016), 81 FR 7613 (February 12, 2016)     Contracts have similar terms to the
                                                      14 17   CFR 200.30–3(a)(12).                            (SR–ICC–2016–002).                                     Standard North American Corporate


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Document Created: 2018-02-02 15:13:29
Document Modified: 2018-02-02 15:13:29
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 Citation81 FR 14912 

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