81_FR_14970 81 FR 14917 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Deadline for Implementing Rule 967.1NY(a)(2) and (3)

81 FR 14917 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Deadline for Implementing Rule 967.1NY(a)(2) and (3)

SECURITIES AND EXCHANGE COMMISSION

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

Page Range14917-14919
FR Document2016-06096

Federal Register, Volume 81 Issue 53 (Friday, March 18, 2016)
[Federal Register Volume 81, Number 53 (Friday, March 18, 2016)]
[Notices]
[Pages 14917-14919]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06096]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77356; File No. SR-NYSEMKT-2016-36]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change To Extend the Deadline 
for Implementing Rule 967.1NY(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 MKT LLC (the ``Exchange'' or ``NYSE 
MKT'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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 extend the deadline for implementing Rule 
967.1NY(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 967.1NY(a)(2) and (3) until July 31, 2016. The current 
implementation deadline is March 4, 2016.
    In March 2015, the Commission approved Rule 967.1NY, which provides 
a price protection risk mechanism for Market Maker quotes.\4\ Rule 
967.1NY 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 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 967.1NY, which is March 4, 
2016 (the ``March 4th Deadline'').\6\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 74440 (March 4, 
2015), 80 FR 12687 (March 10, 2015) (SR-NYSEMKT-2014-116) (Approval 
Order); see also Securities Exchange Act Release No. 74017 (January 
8, 2015), 80 FR 1979 (January 14, 2015) (SR-NYSEMKT-2014-116) 
(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 
967.1NY(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 967.1NY(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. 75151 (June 11, 
2015), 80 FR 34770 (June 17, 2015) (SR-NYSEMKT-2015-42).
---------------------------------------------------------------------------

    Because the Exchange has not yet implemented the Underlying Stock 
Price/Strike Price Check, the Exchange proposes to modify Commentary 
.01 to Rule 967.1NY to extend the March 4th Deadline to implement Rule 
967.1NY(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

[[Page 14918]]

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-NYSEMKT-2016-36 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-NYSEMKT-2016-36. 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

[[Page 14919]]

identifying information from submissions.
    You should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-NYSEMKT-2016-
36, 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. 2016-06096 Filed 3-17-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                      Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices                                                    14917

                                                    Number SR–NYSEArca–2016–39 on the                         SECURITIES AND EXCHANGE                               2016. The current implementation
                                                    subject line.                                             COMMISSION                                            deadline is March 4, 2016.
                                                                                                                                                                      In March 2015, the Commission
                                                    Paper Comments                                            [Release No. 34–77356; File No. SR–                   approved Rule 967.1NY, which
                                                                                                              NYSEMKT–2016–36]
                                                                                                                                                                    provides a price protection risk
                                                      • Send paper comments in triplicate
                                                                                                              Self-Regulatory Organizations; NYSE                   mechanism for Market Maker quotes.4
                                                    to Secretary, Securities and Exchange
                                                                                                              MKT LLC; Notice of Filing and                         Rule 967.1NY provides two layers of
                                                    Commission, 100 F Street NE.,                                                                                   price protection to incoming Market
                                                    Washington, DC 20549–1090.                                Immediate Effectiveness of Proposed
                                                                                                              Rule Change To Extend the Deadline                    Maker quotes, rejecting those Market
                                                    All submissions should refer to File                      for Implementing Rule 967.1NY(a)(2)                   Maker quotes that exceed certain
                                                    Number SR–NYSEArca–2016–39. This                          and (3)                                               parameters, as a risk mitigation tool.5
                                                    file number should be included on the                                                                           The Exchange has implemented the first
                                                    subject line if email is used. To help the                March 14, 2016.                                       layer of price protection (the NBBO
                                                    Commission process and review your                           Pursuant to Section 19(b)(1) 1 of the              Reasonability Check) and has until one
                                                    comments more efficiently, please use                     Securities Exchange Act of 1934 (the                  year from the date of the Approval
                                                                                                              ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                Order to implement the second layer of
                                                    only one method. The Commission will
                                                                                                              notice is hereby given that on March 4,               protection (the Underlying Stock Price/
                                                    post all comments on the Commission’s                     2016, NYSE MKT LLC (the ‘‘Exchange’’                  Strike Price Check) pursuant to
                                                    Internet Web site (http://www.sec.gov/                    or ‘‘NYSE MKT’’) filed with the                       Commentary .01 to Rule 967.1NY,
                                                    rules/sro.shtml). Copies of the                           Securities and Exchange Commission                    which is March 4, 2016 (the ‘‘March 4th
                                                    submission, all subsequent                                (the ‘‘Commission’’) the proposed rule                Deadline’’).6
                                                    amendments, all written statements                        change as described in Items I and II                   Because the Exchange has not yet
                                                    with respect to the proposed rule                         below, which Items have been prepared                 implemented the Underlying Stock
                                                    change that are filed with the                            by the self-regulatory organization. The              Price/Strike Price Check, the Exchange
                                                    Commission, and all written                               Commission is publishing this notice to               proposes to modify Commentary .01 to
                                                    communications relating to the                            solicit comments on the proposed rule                 Rule 967.1NY to extend the March 4th
                                                    proposed rule change between the                          change from interested persons.                       Deadline to implement Rule
                                                    Commission and any person, other than                                                                           967.1NY(a)(2) and (3) until July 31,
                                                                                                              I. Self-Regulatory Organization’s
                                                    those that may be withheld from the                                                                             2016. The Exchange has finalized the
                                                                                                              Statement of the Terms of Substance of
                                                    public in accordance with the                                                                                   technology related to this aspect of the
                                                                                                              the Proposed Rule Change
                                                    provisions of 5 U.S.C. 552, will be                                                                             Rule and will be filing with the
                                                    available for Web site viewing and                           The Exchange proposes to extend the                Commission a separate proposed rule
                                                                                                              deadline for implementing Rule                        change to modify the Rule as it relates
                                                    printing in the Commission’s Public
                                                                                                              967.1NY(a)(2) and (3) until July 31,                  to the Underlying Stock Price/Strike
                                                    Reference Room, 100 F Street NE.,
                                                                                                              2016. The proposed rule change is                     Price Check. The Exchange believes the
                                                    Washington, DC 20549 on official                          available on the Exchange’s Web site at               proposed extension would provide the
                                                    business days between the hours of                        www.nyse.com, at the principal office of              Exchange with sufficient time to review
                                                    10:00 a.m. and 3:00 p.m. Copies of the                    the Exchange, and at the Commission’s                 the proposed modifications with the
                                                    filing also will be available for                         Public Reference Room.                                Commission prior to implementing the
                                                    inspection and copying at the principal                                                                         rule, as modified.
                                                    office of the Exchange. All comments                      II. Self-Regulatory Organization’s
                                                                                                                                                                      Finally, the Exchange believes that
                                                    received will be posted without change;                   Statement of the Purpose of, and
                                                                                                                                                                    because the Underlying Stock Price/
                                                    the Commission does not edit personal                     Statutory Basis for, the Proposed Rule
                                                                                                                                                                    Strike Price Check is an approved rule
                                                    identifying information from                              Change
                                                                                                                                                                    of the Exchange, providing the
                                                    submissions. You should submit only                          In its filing with the Commission, the             Exchange with additional time to
                                                    information that you wish to make                         self-regulatory organization included                 implement the Rule would ensure that
                                                    available publicly. All submissions                       statements concerning the purpose of,
                                                    should refer to File Number SR–                           and basis for, the proposed rule change                  4 See Securities Exchange Act Release No. 74440


                                                    NYSEArca–2016–39 and should be                            and discussed any comments it received                (March 4, 2015), 80 FR 12687 (March 10, 2015) (SR–
                                                                                                              on the proposed rule change. The text                 NYSEMKT–2014–116) (Approval Order); see also
                                                    submitted on or before April 8, 2016.                                                                           Securities Exchange Act Release No. 74017 (January
                                                                                                              of those statements may be examined at                8, 2015), 80 FR 1979 (January 14, 2015) (SR–
                                                      For the Commission, by the Division of                  the places specified in Item IV below.                NYSEMKT–2014–116) (Notice).
                                                    Trading and Markets, pursuant to delegated                The Exchange has prepared summaries,                     5 The first layer of price protection assesses
                                                    authority.12                                              set forth in sections A, B, and C below,              incoming sell quotes against the NBB and incoming
                                                    Robert W. Errett,                                                                                               buy quotes against the NBO (the ‘‘NBBO Price
                                                                                                              of the most significant parts of such                 Reasonability Check’’). Specifically, per Rule
                                                    Deputy Secretary.                                         statements.                                           967.1NY(a)(1), provided that an NBBO is available,
                                                    [FR Doc. 2016–06088 Filed 3–17–16; 8:45 am]                                                                     a Market Maker quote would be rejected if it is
                                                                                                              A. Self-Regulatory Organization’s                     priced a specified dollar amount or percentage
                                                    BILLING CODE 8011–01–P                                    Statement of the Purpose of, and the                  through the contra-side NBBO. The second layer of
                                                                                                              Statutory Basis for, the Proposed Rule                price protection assesses the price of call or put
                                                                                                                                                                    bids against a specified benchmark (the
                                                                                                              Change                                                ‘‘Underlying Stock Price/Strike Price Check’’), per
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                              1. Purpose                                            Rule 967.1NY(a)(2) and (3). This second layer of
                                                                                                                                                                    protection applies to bids in call options or put
                                                                                                                 The Exchange is proposing to extend                options when (1) there is no NBBO available, for
                                                                                                              the deadline for implementing Rule                    example, during pre-opening or prior to conducting
                                                                                                                                                                    a re-opening after a trading halt, or (2) if the NBBO
                                                                                                              967.1NY(a)(2) and (3) until July 31,                  is so wide as to not reflect an appropriate price for
                                                                                                                                                                    the respective options series.
                                                                                                                1 15 U.S.C. 78s(b)(1).                                 6 See Securities Exchange Act Release No. 75151
                                                                                                                2 15 U.S.C. 78a.                                    (June 11, 2015), 80 FR 34770 (June 17, 2015) (SR–
                                                      12 17   CFR 200.30–3(a)(12).                              3 17 CFR 240.19b–4.                                 NYSEMKT–2015–42).



                                               VerDate Sep<11>2014     19:50 Mar 17, 2016   Jkt 238001   PO 00000   Frm 00096   Fmt 4703   Sfmt 4703   E:\FR\FM\18MRN1.SGM   18MRN1


                                                    14918                              Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices

                                                    Market Makers and investors are                            C. Self-Regulatory Organization’s                            At any time within 60 days of the
                                                    afforded the opportunity to benefit from                   Statement on Comments on the                              filing of the proposed rule change, the
                                                    this price protection feature once it is                   Proposed Rule Change Received From                        Commission summarily may
                                                    implemented.                                               Members, Participants, or Others                          temporarily suspend such rule change if
                                                                                                                                                                         it appears to the Commission that such
                                                    2. Statutory Basis                                           No written comments were solicited                      action is necessary or appropriate in the
                                                                                                               or received with respect to the proposed                  public interest, for the protection of
                                                       The proposed rule change is                             rule change.
                                                    consistent with Section 6(b) of the Act,7                                                                            investors, or otherwise in furtherance of
                                                    in general, and furthers the objectives of                 III. Date of Effectiveness of the                         the purposes of the Act. If the
                                                    Section 6(b)(5),8 in particular, in that it                Proposed Rule Change and Timing for                       Commission takes such action, the
                                                    is designed to promote just and                            Commission Action                                         Commission shall institute proceedings
                                                                                                                                                                         to determine whether the proposed rule
                                                    equitable principles of trade, to remove                      Because the proposed rule change                       should be approved or disapproved.
                                                    impediments to and perfect the                             does not (i) significantly affect the
                                                    mechanism of a free and open market                        protection of investors or the public                     IV. Solicitation of Comments
                                                    and a national market system, and in                       interest; (ii) impose any significant                       Interested persons are invited to
                                                    general, to protect investors and the                      burden on competition; and (iii) become                   submit written data, views, and
                                                    public interest.                                           operative for 30 days from the date on                    arguments concerning the foregoing,
                                                       Specifically, the Exchange believes                     which it was filed, or such shorter time                  including whether the proposed rule
                                                    the proposal promotes just and                             as the Commission may designate if                        change is consistent with the Act.
                                                    equitable principles of trade and                          consistent with the protection of                         Comments may be submitted by any of
                                                    removes impediments to, and perfects                       investors and the public interest, the                    the following methods:
                                                    the mechanism of, a free and open                          proposed rule change has become
                                                                                                               effective pursuant to Section 19(b)(3)(A)                 Electronic Comments
                                                    market and a national market system
                                                    because an extension of the March 4th                      of the Act 9 and Rule 19b–4(f)(6)                           • Use the Commission’s Internet
                                                    Deadline would enable the Exchange to                      thereunder.10                                             comment form (http://www.sec.gov/
                                                    implement the finalized technology                           A proposed rule change filed under                      rules/sro.shtml); or
                                                    related to the Underlying Stock Price/                     Rule 19b–4(f)(6) 11 normally does not                       • Send an email to rule-comments@
                                                    Strike Price Check. Moreover, the                          become operative for 30 days after the                    sec.gov. Please include File Number SR–
                                                    proposed extension would assist with                       date of filing. However, pursuant to                      NYSEMKT–2016–36 on the subject line.
                                                    the maintenance of a fair and orderly                      Rule 19b–4(f)(6)(iii),12 the Commission
                                                                                                               may designate a shorter time if such                      Paper Comments
                                                    market and protect investors and the
                                                    public interest because it would afford                    action is consistent with the protection                     • Send paper comments in triplicate
                                                    the Exchange additional time to file, and                  of investors and the public interest. The                 to Secretary, Securities and Exchange
                                                    review, with the Commission a                              Exchange has asked the Commission to                      Commission, 100 F Street NE.,
                                                    proposed modification of the Rule as it                    waive the 30-day operative delay so that                  Washington, DC 20549–1090.
                                                    relates to the Underlying Stock Price/                     the proposal may become operative                         All submissions should refer to File
                                                    Strike Price Check prior to                                immediately upon filing. The                              Number SR–NYSEMKT–2016–36. This
                                                    implementing the rule, as modified.                        Commission believes that waiving the                      file number should be included on the
                                                                                                               30-day operative delay is consistent                      subject line if email is used. To help the
                                                       Finally, the Exchange believes that                     with the protection of investors and the
                                                    because the Underlying Stock Price/                                                                                  Commission process and review your
                                                                                                               public interest as it will allow the                      comments more efficiently, please use
                                                    Strike Price Check is an approved rule                     Exchange to immediately extend the                        only one method. The Commission will
                                                    of the Exchange, providing the                             implementation deadline for the                           post all comments on the Commission’s
                                                    Exchange with additional time to                           Underlying Stock Price/Strike Price                       Internet Web site (http://www.sec.gov/
                                                    implement the Rule would ensure that                       Check without delay and provide the                       rules/sro.shtml). Copies of the
                                                    Market Makers and investors are                            Exchange additional time to implement                     submission, all subsequent
                                                    afforded the opportunity to benefit from                   the technology associated with such                       amendments, all written statements
                                                    this price protection feature once it is                   price protection. Accordingly, the                        with respect to the proposed rule
                                                    implemented—even if in modified form.                      Commission hereby waives the 30-day                       change that are filed with the
                                                                                                               operative delay requirement and                           Commission, and all written
                                                    B. Self-Regulatory Organization’s
                                                                                                               designates the proposed rule change as                    communications relating to the
                                                    Statement on Burden on Competition
                                                                                                               operative upon filing.13                                  proposed rule change between the
                                                       The Exchange does not believe that                                                                                Commission and any person, other than
                                                    the proposed rule change will impose                         9 15  U.S.C. 78s(b)(3)(A).                              those that may be withheld from the
                                                                                                                 10 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                    any burden on competition that is not                                                                                public in accordance with the
                                                                                                               4(f)(6)(iii) requires the Exchange to give the
                                                    necessary or appropriate in furtherance                    Commission written notice of the Exchange’s intent        provisions of 5 U.S.C. 552, will be
                                                    of the purposes of the Act. The                            to file the proposed rule change, along with a brief      available for Web site viewing and
                                                    proposed rule change is not designed to                    description and text of the proposed rule change,         printing in the Commission’s Public
                                                    address any competitive issues, but                        at least five business days prior to the date of filing   Reference Room, 100 F Street NE.,
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                               of the proposed rule change, or such shorter time
                                                    rather, to extend the deadline for                         as designated by the Commission. The Commission           Washington, DC 20549, on official
                                                    implementing the Underlying Stock                          has waived this requirement in this case.                 business days between the hours of
                                                    Price/Strike Price Check pending                              11 17 CFR 240.19b–4(f)(6).                             10:00 a.m. and 3:00 p.m. Copies of the
                                                    finalization of the technology associated                     12 17 CFR 240.19b–4(f)(6)(iii).
                                                                                                                                                                         filing also will be available for
                                                                                                                  13 For purposes only of waiving the 30-day
                                                    with that feature.                                                                                                   inspection and copying at the principal
                                                                                                               operative delay, the Commission has also
                                                                                                               considered the proposed rule’s impact on
                                                                                                                                                                         office of the Exchange. All comments
                                                      7 15   U.S.C. 78f(b).                                    efficiency, competition, and capital formation. See       received will be posted without change;
                                                      8 15   U.S.C. 78f(b)(5).                                 15 U.S.C. 78c(f).                                         the Commission does not edit personal


                                               VerDate Sep<11>2014      19:50 Mar 17, 2016   Jkt 238001   PO 00000   Frm 00097   Fmt 4703   Sfmt 4703   E:\FR\FM\18MRN1.SGM     18MRN1


                                                                                    Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices                                                 14919

                                                    identifying information from                            www.msrb.org/Rules-and-                               transactions that are not at a discount
                                                    submissions.                                            Interpretations/SEC-Filings/2016-                     from the list offering price;
                                                      You should submit only information                    Filings.aspx, at the MSRB’s principal                    • eliminating the requirement for
                                                    that you wish to make available                         office, and at the Commission’s Public                dealers to report yield on customer trade
                                                    publicly. All submissions should refer                  Reference Room.                                       reports and, instead, enabling the MSRB
                                                    to File Number SR–NYSEMKT–2016–                                                                               to calculate and disseminate yield on
                                                    36, and should be submitted on or                       II. Self-Regulatory Organization’s                    customer trades;
                                                    before April 8, 2016.                                   Statement of the Purpose of, and                         • establishing a new indicator for
                                                                                                            Statutory Basis for, the Proposed Rule                customer trades involving non-
                                                      For the Commission, by the Division of                Change
                                                    Trading and Markets, pursuant to delegated                                                                    transaction-based compensation
                                                    authority.14                                              In its filing with the Commission, the              arrangements; and
                                                    Robert W. Errett,                                       MSRB included statements concerning                      • establishing a new indicator for
                                                    Deputy Secretary.                                       the purpose of and basis for the                      alternative trading system (‘‘ATS’’)
                                                                                                            proposed rule change and discussed any                transactions.
                                                    [FR Doc. 2016–06096 Filed 3–17–16; 8:45 am]
                                                                                                            comments it received on the proposed                     The Financial Industry Regulatory
                                                    BILLING CODE 8011–01–P
                                                                                                            rule change. The text of these statements             Authority (‘‘FINRA’’) obtained
                                                                                                            may be examined at the places specified               Commission approval to make similar
                                                                                                            in Item IV below. The MSRB has                        changes to the post-trade reporting
                                                    SECURITIES AND EXCHANGE
                                                                                                            prepared summaries, set forth in                      requirements for its members with
                                                    COMMISSION
                                                                                                            Sections A, B, and C below, of the most               respect to securities eligible for FINRA’s
                                                    [Release No. 34–77366; File No. SR–MSRB–
                                                                                                            significant aspects of such statements.               Trade Reporting and Compliance Engine
                                                    2016–05]                                                                                                      (‘‘TRACE’’).5 These similar FINRA
                                                                                                            A. Self-Regulatory Organization’s                     requirements were also set to take effect
                                                    Self-Regulatory Organizations;                          Statement of the Purpose of, and                      on May 23, 2016, which FINRA believed
                                                    Municipal Securities Rulemaking                         Statutory Basis for, the Proposed Rule                (at the time it proposed its rule change)
                                                    Board; Notice of Filing and Immediate                   Change                                                would be sufficient lead-time for its
                                                    Effectiveness of a Proposed Rule                                                                              members to facilitate planning and
                                                    Change To Revise an Effective Date of                   1. Purpose
                                                                                                                                                                  scheduling of necessary technological
                                                    Several Previously-Approved                                The MSRB proposes to revise the                    changes, but it recently extended the
                                                    Amendments to Rule G–14, on                             effective date of amendments to Rule G–               effective date to be July 18, 2016. FINRA
                                                    Transaction Reporting                                   14. On May 22, 2015, the Commission                   provided the extension to provide
                                                    March 14, 2016.                                         approved the amendments with a year-                  members additional time to complete
                                                       Pursuant to Section 19(b)(1) of the                  long implementation period and an                     systems changes necessary to comply
                                                    Securities Exchange Act of 1934 (the                    effective date of May 23, 2016.4 Rule G–              with the reporting requirements.6
                                                    ‘‘Act’’ or ‘‘Exchange Act’’) 1 and Rule                 14 requires dealers to report all                        In setting an effective date of May 23,
                                                    19b–4 thereunder,2 notice is hereby                     executed transactions in most municipal               2016, one year from the date of
                                                    given that on March 2, 2016, the                        securities to the MSRB’s Real-Time                    Commission approval of the
                                                    Municipal Securities Rulemaking Board                   Transaction Reporting System (‘‘RTRS’’)               amendments to Rule G–14, the MSRB
                                                    (the ‘‘MSRB’’ or ‘‘Board’’) filed with the              within 15 minutes of the time of trade,               intended to provide sufficient time for
                                                    Securities and Exchange Commission                      with limited exceptions. RTRS serves                  brokers, dealers and municipal
                                                    (the ‘‘Commission’’ or ‘‘SEC’’) the                     the dual objectives of price transparency             securities dealers (collectively,
                                                    proposed rule change as described in                    and market surveillance. Because a                    ‘‘dealers’’), and subscribers, to
                                                    Items I, II, and III below, which Items                 comprehensive database of transactions                undertake programming changes related
                                                    have been prepared by the MSRB. The                     is needed for the surveillance function               to the amendments, as well as to
                                                    Commission is publishing this notice to                 of RTRS, Rule G–14, with limited                      provide an adequate testing period for
                                                    solicit comments on the proposed rule                   exceptions, requires dealers to report all            dealers and subscribers that interface
                                                    change from interested persons.                         of their purchase-sale transactions to                with RTRS. While the MSRB believes
                                                                                                            RTRS, not only those that qualify for                 that one year was a sufficient amount of
                                                    I. Self-Regulatory Organization’s                       public dissemination to serve the                     time for dealers and subscribers to make
                                                    Statement of the Terms of Substance of                  transparency function of the system.                  the programming changes necessary to
                                                    the Proposed Rule Change                                The MSRB makes transaction data                       comply with the amendments to Rule
                                                       The MSRB filed with the Commission                   available to the general public through               G–14, it believes that harmonization
                                                    a proposed rule change to revise the                    the Electronic Municipal Market Access                with the implementation of similar
                                                    May 23, 2016, effective date of several                 (EMMA®) Web site at no cost, and                      FINRA reporting requirements will
                                                    previously-approved amendments to                       disseminates such data through paid
                                                    Rule G–14, on transaction reporting                     subscription services to market data                    5 See FINRA Rules 6730 and 6732; Exchange Act

                                                    (‘‘proposed rule change’’).3 The MSRB                   vendors, institutional market                         Release No. 76176 (Oct. 16, 2015), 80 FR 64039
                                                                                                                                                                  (Oct. 22, 2015) (SR–FINRA–2015–026) (requiring
                                                    has designated the proposed rule change                 participants and others that subscribe to             the reporting of an indicator when a TRACE report
                                                    for immediate effectiveness. The new                    the data feed.                                        does not reflect a commission or mark-up/mark-
                                                    effective date of the amendments to                        The amendments to Rule G–14                        down); Exchange Act Release No. 76677 (Dec. 17,
                                                    Rule G–14 will be July 18, 2016.                                                                              2015), 80 FR 79966 (Dec. 23, 2015) (SR–FINRA–
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                            enhance the post-trade price
                                                       The text of the proposed rule change                                                                       2015–055) (providing FINRA with authority to grant
                                                                                                            transparency information provided                     exemptions from TRACE reporting requirements for
                                                    is available on the MSRB’s Web site at                  through RTRS by:                                      certain ATS transactions, and requiring the
                                                                                                               • Expanding the application of the                 reporting of the identity of the ATS on which an
                                                      14 17 CFR 200.30–3(a)(12).                            existing list offering price and takedown             exempted trade occurs). See also https://
                                                      1 15 U.S.C. 78s(b)(1).                                                                                      www.finra.org/industry/trace/trace-reporting-and-
                                                      2 17 CFR 240.19b–4.
                                                                                                            indicator to cases involving distribution             dissemination-no-remuneration-trades-and-ats.
                                                      3 See Exchange Act Release No. 75039 (May 22,         participant dealers and takedown                        6 See Exchange Act Release No. 77015 (Feb. 2,

                                                    2015), 80 FR 31084 (June 1, 2015) (SR–MSRB–                                                                   2016), 81 FR 6555 (Feb. 8, 2016) (SR–FINRA–2016–
                                                    2015–02).                                                 4 Id.                                               003).



                                               VerDate Sep<11>2014   19:50 Mar 17, 2016   Jkt 238001   PO 00000   Frm 00098   Fmt 4703   Sfmt 4703   E:\FR\FM\18MRN1.SGM   18MRN1



Document Created: 2018-02-02 15:14:16
Document Modified: 2018-02-02 15:14:16
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 14917 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR