81 FR 17533 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Period for the Exchange's Retail Liquidity Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 60 (March 29, 2016)

Page Range		17533-17535
FR Document		2016-06991
Federal Register, Volume 81 Issue 60 (Tuesday, March 29, 2016)
[Federal Register Volume 81, Number 60 (Tuesday, March 29, 2016)]
[Notices]
[Pages 17533-17535]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06991]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77426 ; File No. SR-NYSE-2016-25]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Extending the Pilot Period for the Exchange's Retail Liquidity Program

March 23, 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 17, 2016, New York Stock Exchange LLC (``NYSE'' or 
the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I 
and II below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the pilot period for the Exchange's 
Retail Liquidity Program (the ``Retail Liquidity Program'' or the 
``Program''), which is currently scheduled to expire on March 31, 2016, 
until August 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.

[[Page 17534]]

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to extend the pilot period of the 
Retail Liquidity Program, currently scheduled to expire on March 31, 
2016, until August 31, 2016.\4\
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    \4\ See Securities Exchange Act Release No. 75993 (September 28, 
2015), 80 FR 59844 (October 2, 2015) (SR-NYSE-2015-41).
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Background
    In July 2012, the Commission approved the Retail Liquidity Program 
on a pilot basis.\5\ The Program is designed to attract retail order 
flow to the Exchange, and allows such order flow to receive potential 
price improvement. The Program is currently limited to trades occurring 
at prices equal to or greater than $1.00 per share. Under the Program, 
Retail Liquidity Providers (``RLPs'') are able to provide potential 
price improvement in the form of a non-displayed order that is priced 
better than the Exchange's best protected bid or offer (``PBBO''), 
called a Retail Price Improvement Order (``RPI''). When there is an RPI 
in a particular security, the Exchange disseminates an indicator, known 
as the Retail Liquidity Identifier, indicating that such interest 
exists. Retail Member Organizations (``RMOs'') can submit a Retail 
Order to the Exchange, which would interact, to the extent possible, 
with available contra-side RPIs.
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    \5\ See Securities Exchange Act Release No. 67347 (July 3, 
2012), 77 FR 40673 (July 10, 2012) (``RLP Approval Order'') (SR-
NYSE-2011-55).
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    The Retail Liquidity Program was approved by the Commission on a 
pilot basis. Pursuant to NYSE Rule 107C(m), the pilot period for the 
Program is scheduled to end on March 31, 2016.
Proposal To Extend the Operation of the Program
    The Exchange established the Retail Liquidity Program in an attempt 
to attract retail order flow to the Exchange by potentially providing 
price improvement to such order flow. The Exchange believes that the 
Program promotes competition for retail order flow by allowing Exchange 
members to submit RPIs to interact with Retail Orders. Such competition 
has the ability to promote efficiency by facilitating the price 
discovery process and generating additional investor interest in 
trading securities, thereby promoting capital formation. The Exchange 
believes that extending the pilot is appropriate because it will allow 
the Exchange and the Commission additional time to analyze data 
regarding the Program that the Exchange has committed to provide.\6\ As 
such, the Exchange believes that it is appropriate to extend the 
current operation of the Program.\7\ Through this filing, the Exchange 
seeks to amend NYSE Rule 107C(m) and extend the current pilot period of 
the Program until August 31, 2016.
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    \6\ See id. at 40681.
    \7\ Concurrently with this filing, the Exchange has submitted a 
request for an extension of the exemption under Regulation NMS Rule 
612 previously granted by the Commission that permits it to accept 
and rank the undisplayed RPIs. See Letter from Martha Redding, Asst. 
Corporate Secretary, NYSE Group, Inc. to Brent J. Fields, Secretary, 
Securities and Exchange Commission, dated March 17, 2016.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\8\ in general, and furthers the objectives of Section 6(b)(5),\9\ 
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. The Exchange 
believes that extending the pilot period for the Retail Liquidity 
Program is consistent with these principles because the Program is 
reasonably designed to attract retail order flow to the exchange 
environment, while helping to ensure that retail investors benefit from 
the better price that liquidity providers are willing to give their 
orders. Additionally, as previously stated, the competition promoted by 
the Program may facilitate the price discovery process and potentially 
generate additional investor interest in trading securities. The 
extension of the pilot period will allow the Commission and the 
Exchange to continue to monitor the Program for its potential effects 
on public price discovery, and on the broader market structure.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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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 
simply extends an established pilot program for an additional six 
months, thus allowing the Retail Liquidity Program to enhance 
competition for retail order flow and contribute to the public price 
discovery process.

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

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

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 
Because the proposed rule change does not: (i) significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the 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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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 
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ 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 proposed 
rule change may become operative before the current expiration of the 
pilot period. The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest, because waiver would allow the pilot period to continue 
uninterrupted after its current expiration date of March 31, 2016, 
thereby avoiding any potential investor confusion that could result 
from temporary interruption in the pilot program. For this reason, the 
Commission hereby waives the 30-day

[[Page 17535]]

operative delay and designates the proposal operative upon filing.\16\
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    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 change 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-NYSE-2016-25 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-NYSE-2016-25. 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-NYSE-2016-25 and should be 
submitted on or before April 19, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-06991 Filed 3-28-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 60 / Tuesday, March 29, 2016 / Notices 17533

C. Self-Regulatory Organization’s Electronic Comments SECURITIES AND EXCHANGE
Statement on Comments on the COMMISSION
Proposed Rule Change Received From • Use the Commission’s Internet
Members, Participants, or Others comment form (http://www.sec.gov/
[Release No. 34–77426 ; File No. SR–NYSE–
rules/sro.shtml); or
No written comments were solicited 2016–25]
• Send an email to rule-comments@
or received with respect to the proposed
rule change.
sec.gov. Please include File Number SR– Self-Regulatory Organizations; New
NYSE–2016–23 on the subject line. York Stock Exchange LLC; Notice of
III. Date of Effectiveness of the Filing and Immediate Effectiveness of
Paper Comments
Proposed Rule Change and Timing for Proposed Rule Change Extending the
Commission Action • Send paper comments in triplicate Pilot Period for the Exchange’s Retail
The Exchange has filed the proposed to Secretary, Securities and Exchange Liquidity Program
rule change pursuant to section Commission, 100 F Street NE.,
March 23, 2016.
19(b)(3)(A)(iii) of the Act 9 and Rule Washington, DC 20549–1090.
19b–4(f)(6) thereunder.10 Because the Pursuant to Section 19(b)(1) 1 of the
All submissions should refer to File Securities Exchange Act of 1934 (the
proposed rule change does not: (i) Number SR–NYSE–2016–23. This file
Significantly affect the protection of ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
number should be included on the notice is hereby given that on March 17,
investors or the public interest; (ii) subject line if email is used. To help the
impose any significant burden on 2016, New York Stock Exchange LLC
Commission process and review your (‘‘NYSE’’ or the ‘‘Exchange’’) filed with
competition; and (iii) become operative
comments more efficiently, please use the Securities and Exchange
prior to 30 days from the date on which
it was filed, or such shorter time as the only one method. The Commission will Commission (the ‘‘Commission’’) the
Commission may designate, if post all comments on the Commission’s proposed rule change as described in
consistent with the protection of Internet Web site (http://www.sec.gov/ Items I and II below, which Items have
investors and the public interest, the rules/sro.shtml). Copies of the been prepared by the self-regulatory
proposed rule change has become submission, all subsequent organization. The Commission is
effective pursuant to section 19(b)(3)(A) amendments, all written statements publishing this notice to solicit
of the Act and Rule 19b-4(f)(6)(iii) with respect to the proposed rule comments on the proposed rule change
thereunder. change that are filed with the from interested persons.
A proposed rule change filed under Commission, and all written
Rule 19b–4(f)(6) 11 normally does not communications relating to the I. Self-Regulatory Organization’s
become operative prior to 30 days after proposed rule change between the Statement of the Terms of Substance of
the date of the filing. However, pursuant Commission and any person, other than the Proposed Rule Change
to Rule 19b4(f)(6)(iii),12 the Commission those that may be withheld from the
public in accordance with the The Exchange proposes to extend the
may designate a shorter time if such pilot period for the Exchange’s Retail
action is consistent with the protection provisions of 5 U.S.C. 552, will be
available for Web site viewing and Liquidity Program (the ‘‘Retail Liquidity
of investors and the public interest.
printing in the Commission’s Public Program’’ or the ‘‘Program’’), which is
At any time within 60 days of the currently scheduled to expire on March
filing of such proposed rule change, the Reference Room, 100 F Street NE.,
Washington, DC 20549 on official 31, 2016, until August 31, 2016. The
Commission summarily may proposed rule change is available on the
temporarily suspend such rule change if business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the Exchange’s Web site at www.nyse.com,
it appears to the Commission that such
filing also will be available for at the principal office of the Exchange,
action is necessary or appropriate in the
inspection and copying at the principal and at the Commission’s Public
public interest, for the protection of
investors, or otherwise in furtherance of office of the Exchange. All comments Reference Room.
the purposes of the Act. If the received will be posted without change; II. Self-Regulatory Organization’s
Commission takes such action, the the Commission does not edit personal Statement of the Purpose of, and
Commission shall institute proceedings identifying information from Statutory Basis for, the Proposed Rule
under section 19(b)(2)(B) 13 of the Act to submissions. You should submit only Change
determine whether the proposed rule information that you wish to make
change should be approved or available publicly. All submissions In its filing with the Commission, the
disapproved. should refer to File Number SR–NYSE– self-regulatory organization included
IV. Solicitation of Comments 2016–23, and should be submitted on or statements concerning the purpose of,
before April 19, 2016. and basis for, the proposed rule change
Interested persons are invited to and discussed any comments it received
For the Commission, by the Division of
submit written data, views, and on the proposed rule change. The text
Trading and Markets, pursuant to delegated
arguments concerning the foregoing, of those statements may be examined at
authority.14
including whether the proposed rule the places specified in Item IV below.
change is consistent with the Act. Brent J. Fields,
The Exchange has prepared summaries,
mstockstill on DSK4VPTVN1PROD with NOTICES

Comments may be submitted by any of Secretary. set forth in sections A, B, and C below,
the following methods: [FR Doc. 2016–06998 Filed 3–28–16; 8:45 am] of the most significant parts of such
BILLING CODE 8011–01–P statements.
9 15 U.S.C. 78s(b)(3)(A)(iii).
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6). 1 15 U.S.C.78s(b)(1).
12 17 CFR 240.19b–4(f)(6)(iii). 2 15 U.S.C. 78a.
13 15 U.S.C. 78s(b)(2)(B). 14 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.

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Federal Register / Vol. 81, No. 60 / Tuesday, March 29, 2016 / Notices 17535

operative delay and designates the business days between the hours of All other information in the original
proposal operative upon filing.16 10:00 a.m. and 3:00 p.m. Copies of the declaration remains unchanged.
At any time within 60 days of the filing also will be available for (Catalog of Federal Domestic Assistance
filing of the proposed rule change, the inspection and copying at the principal Numbers 59002 and 59008)
Commission summarily may office of the Exchange. All comments
temporarily suspend such rule change if received will be posted without change; James E. Rivera,
it appears to the Commission that such the Commission does not edit personal Associate Administrator for Disaster
action is necessary or appropriate in the identifying information from Assistance.
public interest, for the protection of submissions. You should submit only [FR Doc. 2016–06967 Filed 3–28–16; 8:45 am]
investors, or otherwise in furtherance of information that you wish to make BILLING CODE 8025–01–P
the purposes of the Act. If the available publicly. All submissions
Commission takes such action, the should refer to File Number SR–NYSE–
Commission shall institute proceedings 2016–25 and should be submitted on or DEPARTMENT OF STATE
to determine whether the proposed rule before April 19, 2016. [Public Notice: 9495]
change should be approved or For the Commission, by the Division of
disapproved. Trading and Markets, pursuant to delegated Request for Comments on World
IV. Solicitation of Comments authority.17 Health Organization Pandemic
Brent J. Fields, Influenza Preparedness Framework
Interested persons are invited to Secretary. Review
submit written data, views, and
[FR Doc. 2016–06991 Filed 3–28–16; 8:45 am]
arguments concerning the foregoing, AGENCY: International Health and
BILLING CODE 8011–01–P Biodefense, U.S. Department of State.
including whether the proposed rule
change is consistent with the Act. ACTION: Notice and request for
Comments may be submitted by any of comments.
the following methods: SMALL BUSINESS ADMINISTRATION
SUMMARY: The U.S. Department of State
Electronic Comments [Disaster Declaration # 14637 and # 14638]
invites submission of comments from
• Use the Commission’s Internet Oregon Disaster Number OR–00080 the public and relevant industries on
comment form (http://www.sec.gov/ influenza surveillance and response,
rules/sro.shtml); or AGENCY: U.S. Small Business related to the implementation of the
• Send an email to rule-comments@ Administration. World Health Organization (WHO)
sec.gov. Please include File Number SR– ACTION: Amendment 2. Pandemic Influenza Preparedness
NYSE–2016–25 on the subject line. Framework (PIP–FW) (http://
SUMMARY: This is an amendment of the apps.who.int/gb/ebwha/pdf_files/
Paper Comments Presidential declaration of a major WHA64/A64_8-en.pdf). Comments are
• Send paper comments in triplicate disaster for Public Assistance Only for specifically requested on the PIP–FW
to Secretary, Securities and Exchange the State of Oregon (FEMA–4258–DR), Review areas of virus sharing and
Commission, 100 F Street NE., dated 02/17/2016. benefits sharing, and on governance and
Washington, DC 20549–1090. Incident: Severe Winter Storms, linkages with other international
All submissions should refer to File Straight-line Winds, Flooding, programs or instruments.
Number SR–NYSE–2016–25. This file Landslides, and Mudslides. DATES: Written comments on PIP–FW
number should be included on the Incident Period: 12/06/2015 through virus sharing and benefits sharing must
subject line if email is used. To help the 12/23/2015. be submitted on or before April 10,
Commission process and review your Effective Date: 03/21/2016. 2016, and written comments on PIP–FW
comments more efficiently, please use Physical Loan Application Deadline governance and linkages must be
only one method. The Commission will Date: 04/18/2016. submitted before May 25, 2016.
post all comments on the Commission’s Economic Injury (EIDL) Loan Comments should be no more than 15
Internet Web site (http://www.sec.gov/ Application Deadline Date: 11/17/2016. pages with single spaced text.
rules/sro.shtml). Copies of the ADDRESSES: Submit completed loan ADDRESSES: Submissions should be
submission, all subsequent applications to: U.S. Small Business made via the Internet at
amendments, all written statements Administration, Processing and www.regulations.gov docket number
with respect to the proposed rule Disbursement Center, 14925 Kingsport DOS–2016–0016. For alternatives to
change that are filed with the Road, Fort Worth, TX 76155. online submissions please contact Bruce
Commission, and all written FOR FURTHER INFORMATION CONTACT: A Ruscio at (202) 647–3017 or
communications relating to the Escobar, Office of Disaster Assistance, ruscioba@state.gov. Note that relevant
proposed rule change between the U.S. Small Business Administration, comments submitted to regulations.gov
Commission and any person, other than 409 3rd Street SW., Suite 6050, will be posted without editing and will
those that may be withheld from the Washington, DC 20416. be available to the public; therefore,
public in accordance with the SUPPLEMENTARY INFORMATION: The notice business-confidential information
provisions of 5 U.S.C. 552, will be of the President’s major disaster should be clearly identified as such and
available for Web site viewing and declaration for Private Non-Profit submitted by email. The public is
mstockstill on DSK4VPTVN1PROD with NOTICES

printing in the Commission’s Public organizations in the State of OREGON, strongly encouraged to file submissions
Reference Room, 100 F Street NE., dated 02/17/2016, is hereby amended to electronically rather than by facsimile or
Washington, DC 20549 on official include the following areas as adversely mail.
affected by the disaster. FOR FURTHER INFORMATION CONTACT:
16 For purposes only of waiving the 30-day

operative delay, the Commission has considered the Primary Counties: Clackamas. Questions regarding the submission of
proposed rule’s impact on efficiency, competition, comments should be directed to Bruce
and capital formation. See 15 U.S.C. 78c(f). 17 17 CFR 200.30–3(a)(12). Ruscio (202) 647–3017,

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Document Created: 2016-03-30 08:29:30
Document Modified: 2016-03-30 08:29:30
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 17533