81 FR 23064 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 72 Relating to Setting Interest
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 75 (April 19, 2016)
Federal Register Volume 81, Issue 75 (April 19, 2016)
| Page Range | 23064-23066 | |
| FR Document | 2016-08968 |
[Federal Register Volume 81, Number 75 (Tuesday, April 19, 2016)] [Notices] [Pages 23064-23066] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-08968] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77603; File No. SR-NYSE-2016-28] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 72 Relating to Setting Interest April 13, 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 29, 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, II, and III below, which Items have been prepared by the self- regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 72 relating to setting interest. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 72 relating to setting interest to provide that interest that establishes a new Exchange best bid or offer (``BBO'') would be considered setting interest even if a Limit Order designated Add Liquidity Only (``ALO'') or sell short order during a Short Sale Period, as defined in Rule 440B(d), is re-priced and displayed at the same price as such interest that became the Exchange BBO. Background Under Rule 72(a)(ii), a bid or offer, including pegging interest, is considered the ``setting interest'' when it is established as the only displayable bid or offer made at a particular price and is the only displayable interest when such price is or becomes the Exchange BBO. Setting interest is entitled to priority for allocation of executions at that price, as provided for under Rule 72. If there is no setting interest, all interest is allocated on parity pursuant to Rule 72(c).\4\ --------------------------------------------------------------------------- \4\ See Rule 72(c)(v). --------------------------------------------------------------------------- In 2008, when the Exchange added the current form of Rule 72, current paragraph (a)(ii)(G) of the rule provided that if, at the time non-pegging interest becomes the Exchange BBO, an e-Quote is pegging to such non-pegging interest, all such interest was considered to be entered simultaneously and, therefore, no interest was considered the setting interest.\5\ Because the Exchange believed that permitting pegging e-Quotes to eliminate the priority to which a non-pegging e- Quote might otherwise be entitled could disincentivize aggressive displayed quoting, the Exchange amended Rule 72(a)(ii)(G) to provide that non-pegging interest that becomes the Exchange BBO will be considered the setting interest even if an e-Quote is pegging to such non-pegging interest.\6\ The Exchange's goal in providing priority to setting interest was to create an incentive for participants to display aggressive prices. The Exchange amended Rule 72(a)(ii)(G) in 2011 because it believed a participant may be reluctant to enter such displayed interest if a non-displayed pegging e-Quote could deny priority to such displayed interest.\7\ Because pegging interest cannot peg to other pegging [[Page 23065]] interest, the current rule specifies that non-pegging interest would retain priority if pegging interest is pegging to such non-pegging interest. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release Nos. 58845 (Oct. 24, 2008), 73 FR 64379 (Oct. 29, 2008) (Approval Order) and 58184 (July 17, 2008), 73 FR 42853, (July 23, 2008) (Notice) (SR-NYSE-2008-46). See also Rule 70 (defining e-Quotes and d-Quotes). \6\ See Securities Exchange Act Release No. 65889 (Dec. 5, 2011), 76 FR 77040 (Dec. 9, 2011) (SR-NYSE-2011-60) (Notice of filing and immediate effectiveness of proposed rule change amended Rule 72). \7\ Because the Exchange does not publicly identify interest as pegging interest that is eligible to re-price based on changes to the PBBO, a participant seeking to set the Exchange BBO would be unaware that one or more pegging interest could join it at the Exchange BBO. --------------------------------------------------------------------------- Proposed Rule Change The Exchange believes there are additional circumstances when orders that are re-priced due to an external pricing change may similarly disincentivize aggressive displayed quoting by permitting such re-priced interest to eliminate the setting priority to which non- pegging interest may otherwise be entitled. For example, similar to pegging interest,\8\ which is re-priced based on changes to the PBBO, a Limit Order to buy (sell) designated ALO may be re-priced and re- displayed based on changes to the best-priced sell (buy) interest at the Exchange.\9\ Likewise, sell short orders that are re-priced to a Permitted Price during a Short Sale Period may be re-priced and re- displayed as the national best bid (``NBB'') moves.\10\ In both these scenarios, the participant sending aggressive display interest would be unaware that when it sets a new Exchange BBO, existing interest on the Exchange may be eligible to be re-priced to that new Exchange BBO price. --------------------------------------------------------------------------- \8\ Pegging interest is defined in Rule 13(f)(1) as displayable or non-displayable interest to buy or sell at a price set to track the PBBO as the PBBO changes and must be an e-Quote or d-Quote. \9\ See Rule 13(e)(1) (defining ALO modifier) and Supplementary Material .10 to Rule 13 (defining the term ``best-priced sell (buy) interest'' to be the lowest-priced sell (highest-priced buy) interest against which incoming buy (sell) interest would be required to execute with and/or route to, including Exchange displayed offers, Non-Display Reserve Orders, Non-Display Reserve e- Quotes, odd-lot sized sell (buy) interest, and protected offers (bids) on away markets). \10\ See Rule 440B(e). --------------------------------------------------------------------------- For the same reason as the Exchange filed to change Rule 72(a)(ii)(G) in 2011, the Exchange is proposing that Limit Orders designated ALO or sell short orders during a Short Sale Period that are re-priced and displayed based on changes to the best-priced sell (buy) interest or NBB would not deny priority to displayed interest that sets a new Exchange BBO. In addition, the Exchange proposes to amend Rule 72(a)(ii)(G) to provide that if interest becomes the Exchange BBO, it would retain its priority (i.e., considered setting interest) even if pegging interest, Limit Orders designated ALO, or sell short orders during a Short Sale Period under Rule 440B(e) are re-priced and displayed at the same price as such interest. Finally, the Exchange proposes a non-substantive amendment to delete the cross-reference to Rule 13--Pegging Interest. The Exchange also proposes to amend Rule 72(a)(ii)(G) to reflect that any interest, and not just ``non-pegging'' interest, is eligible to be setting interest even if other interest re-prices and is displayed at the new Exchange BBO. As provided for in Rule 13(f)(1)(B)(iii), pegging interest may establish an Exchange BBO, which would occur if pegging interest pegs to a PBBO that is more aggressively priced than the Exchange's current BBO. For example, if the PBB is higher than the Exchange BB and the Exchange receives pegging interest to buy with a limit price equal to or higher than such PBB price, the pegging interest would peg to the PBB and be displayed as a new Exchange BB. If there were no other interest when the pegging interest establishes the Exchange BBO, such pegging interest would be entitled to priority under Rule 72(a)(ii).\11\ However, if more than one pegging interest is pegging to the PBBO and together they establish a new Exchange BBO, Rule 72(a)(ii) would not provide either pegging interest with priority. Current Rule 72(a)(ii)(G), which provides that ``non-pegging interest'' is considered setting interest if it becomes the Exchange BBO, even if pegging interest is pegging to such non- pegging interest, is consistent with Rule 72(a)(ii) because any such pegging interest would not be the only displayable interest. --------------------------------------------------------------------------- \11\ Rule 72(a)(ii) explicitly includes pegging interest as being setting interest entitled to priority for allocation of executions, when such interest is established as the only displayable bid or offer made at a particular price and is the only displayable interest when such price is or becomes the Exchange BBO. --------------------------------------------------------------------------- As discussed above, the Exchange proposes to amend Rule 72(a)(ii)(G) to specify additional interest that could reprice without denying priority to interest that sets the Exchange BBO. As a result, such non-pegging interest could be repriced to join pegging interest that establishes the Exchange BBO and that otherwise would be entitled to be setting interest. The Exchange therefore proposes that if a single pegging interest establishes the BBO, it would be entitled to priority even if a Limit Order designated ALO or short sale order during a Short Sale Period is re-priced and displayed at that same price. In such scenario, the pegging interest would be the aggressively-priced interest that established the new Exchange BBO, and other interest that re-prices at that price would be the reactive orders. Accordingly, to address such scenario, the Exchange proposes to change the references in Rule 72(a)(ii)(G) from ``non-pegging interest'' to ``interest.'' Currently, in limited circumstances, Limit Orders designated ALO that are re-priced to a price other than its limit price to join interest that sets a new Exchange BBO do not deny priority to the interest that set the Exchange BBO.\12\ Because of technology changes associated with implementing this rule change for all circumstances when Limit Orders designated ALO and sell short orders during a Short Sale Period reprice to join interest that sets a new Exchange BBO, the Exchange will announce by Trader Update the full implementation of this proposed rule change. --------------------------------------------------------------------------- \12\ See Trader Update dated February 17, 2016, available here: https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Trader_Update_Priority_Allocation.pdf. --------------------------------------------------------------------------- 2. Statutory Basis The proposed rule change is consistent with section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\13\ in general, and furthers the objectives of section 6(b)(5),\14\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change meets these requirements because it would permit interest that sets a new Exchange BBO, including pegging interest that establishes an Exchange BBO, to be considered the setting interest and therefore retain priority, as provided for under Rule 72, over other interest that reacts and re-prices based on such interest setting a new Exchange BBO. The current rule already provides for non-pegging interest to retain priority if pegging interest pegs to such price, and the proposed rule change would afford similar treatment to any interest that establishes an Exchange BBO if pegging interest, Limit Orders designated ALO, or sell short orders during a Short Sale Period are re-priced and displayed at the same price as such interest. In addition, the proposed rule change is consistent with current rules in that it would allow for pegging interest that is entitled to be setting interest, as provided for in Rules 13(f)(1)(B)(iii) and 72(a)(ii), to retain priority if joined at that price by a Limit Order designated ALO or a sell short order during a Short [[Page 23066]] Sale Period. Accordingly, the proposal is designed to incentivize and reward aggressive displayed quoting by market participants, which would remove impediments to and perfect the mechanism of a free and open market and national market system by contributing to the market quality of the Exchange and the national market system in general. In this regard, the Exchange believes that this proposed change would have positive impact on the Exchange's market, on the Exchange's members, and on investors generally by promoting the display of aggressively- priced liquidity on a registered exchange. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is not designed to address any competitive issue but rather to promote the additional display of aggressively-priced liquidity on the Exchange by allowing interest that sets a new Exchange BBO to be considered setting interest even if other orders react and re-price based on such interest setting a new Exchange BBO. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to section 19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\ 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 and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(iii). \16\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\18\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \17\ 17 CFR 240.19b-4(f)(6). \18\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under section 19(b)(2)(B) \19\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtm); or Send an email to [email protected]. Please include File Number SR-NYSE-2016-28 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSE-2016-28. 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-2016-28 and should be submitted on or before May 10, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-08968 Filed 4-18-16; 8:45 am] BILLING CODE 8011-01-P
![23064 Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Notices
Electronic Comments SECURITIES AND EXCHANGE would be considered setting interest
COMMISSION even if a Limit Order designated Add
• Use the Commission’s Internet Liquidity Only (‘‘ALO’’) or sell short
comment form (http://www.sec.gov/ [Release No. 34–77603; File No. SR–NYSE–
2016–28]
order during a Short Sale Period, as
rules/sro.shtml); or defined in Rule 440B(d), is re-priced
• Send an email to rule-comments@ Self-Regulatory Organizations; New and displayed at the same price as such
sec.gov. Please include File Number SR– York Stock Exchange LLC; Notice of interest that became the Exchange BBO.
BatsEDGA–2016–05 on the subject line. Filing and Immediate Effectiveness of Background
Proposed Rule Change Amending Rule
Paper Comments 72 Relating to Setting Interest Under Rule 72(a)(ii), a bid or offer,
including pegging interest, is considered
• Send paper comments in triplicate April 13, 2016. the ‘‘setting interest’’ when it is
to Secretary, Securities and Exchange Pursuant to section 19(b)(1) 1 of the established as the only displayable bid
Commission, 100 F Street NE., Securities Exchange Act of 1934 (the or offer made at a particular price and
Washington, DC 20549–1090. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 is the only displayable interest when
notice is hereby given that on March 29, such price is or becomes the Exchange
All submissions should refer to File
2016, New York Stock Exchange LLC BBO. Setting interest is entitled to
Number SR–BatsEDGA–2016–05. This
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with priority for allocation of executions at
file number should be included on the that price, as provided for under Rule
the Securities and Exchange
subject line if email is used. To help the Commission (the ‘‘Commission’’) the 72. If there is no setting interest, all
Commission process and review your proposed rule change as described in interest is allocated on parity pursuant
comments more efficiently, please use Items I, II, and III below, which Items to Rule 72(c).4
only one method. The Commission will have been prepared by the self- In 2008, when the Exchange added
post all comments on the Commission’s regulatory organization. The the current form of Rule 72, current
Internet Web site (http://www.sec.gov/ Commission is publishing this notice to paragraph (a)(ii)(G) of the rule provided
rules/sro.shtml). Copies of the solicit comments on the proposed rule that if, at the time non-pegging interest
submission, all subsequent change from interested persons. becomes the Exchange BBO, an e-Quote
amendments, all written statements is pegging to such non-pegging interest,
I. Self-Regulatory Organization’s all such interest was considered to be
with respect to the proposed rule
Statement of the Terms of Substance of entered simultaneously and, therefore,
change that are filed with the the Proposed Rule Change
Commission, and all written no interest was considered the setting
communications relating to the The Exchange proposes to amend interest.5 Because the Exchange
proposed rule change between the Rule 72 relating to setting interest. The believed that permitting pegging e-
proposed rule change is available on the Quotes to eliminate the priority to
Commission and any person, other than
Exchange’s Web site at www.nyse.com, which a non-pegging e-Quote might
those that may be withheld from the
at the principal office of the Exchange, otherwise be entitled could
public in accordance with the
and at the Commission’s Public disincentivize aggressive displayed
provisions of 5 U.S.C. 552, will be Reference Room. quoting, the Exchange amended Rule
available for Web site viewing and 72(a)(ii)(G) to provide that non-pegging
printing in the Commission’s Public II. Self-Regulatory Organization’s
interest that becomes the Exchange BBO
Reference Room, 100 F Street NE., Statement of the Purpose of, and
will be considered the setting interest
Washington, DC 20549, on official Statutory Basis for, the Proposed Rule
even if an e-Quote is pegging to such
business days between the hours of Change
non-pegging interest.6 The Exchange’s
10:00 a.m. and 3:00 p.m. Copies of the In its filing with the Commission, the goal in providing priority to setting
filing also will be available for self-regulatory organization included interest was to create an incentive for
inspection and copying at the principal statements concerning the purpose of, participants to display aggressive prices.
office of the Exchange. All comments and basis for, the proposed rule change The Exchange amended Rule 72(a)(ii)(G)
received will be posted without change; and discussed any comments it received in 2011 because it believed a participant
the Commission does not edit personal on the proposed rule change. The text may be reluctant to enter such displayed
identifying information from of those statements may be examined at interest if a non-displayed pegging e-
submissions. You should submit only the places specified in Item IV below. Quote could deny priority to such
information that you wish to make The Exchange has prepared summaries, displayed interest.7 Because pegging
available publicly. All submissions set forth in sections A, B, and C below, interest cannot peg to other pegging
should refer to File Number SR– of the most significant parts of such
statements. 4 See Rule 72(c)(v).
BatsEDGA–2016–05 and should be 5 See Securities Exchange Act Release Nos. 58845
submitted on or before May 10, 2016. A. Self-Regulatory Organization’s (Oct. 24, 2008), 73 FR 64379 (Oct. 29, 2008)
For the Commission, by the Division of Statement of the Purpose of, and the (Approval Order) and 58184 (July 17, 2008), 73 FR
Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule 42853, (July 23, 2008) (Notice) (SR–NYSE–2008–
Change 46). See also Rule 70 (defining e-Quotes and d-
authority.15 Quotes).
Robert W. Errett, 1. Purpose 6 See Securities Exchange Act Release No. 65889
(Dec. 5, 2011), 76 FR 77040 (Dec. 9, 2011) (SR–
mstockstill on DSK4VPTVN1PROD with NOTICES
Deputy Secretary. The Exchange proposes to amend NYSE–2011–60) (Notice of filing and immediate
[FR Doc. 2016–08944 Filed 4–18–16; 8:45 am] Rule 72 relating to setting interest to effectiveness of proposed rule change amended
BILLING CODE 8011–01–P provide that interest that establishes a Rule 72).
7 Because the Exchange does not publicly identify
new Exchange best bid or offer (‘‘BBO’’)
interest as pegging interest that is eligible to re-price
based on changes to the PBBO, a participant seeking
1 15 U.S.C. 78s(b)(1). to set the Exchange BBO would be unaware that one
2 15 U.S.C. 78a. or more pegging interest could join it at the
15 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. Exchange BBO.
VerDate Sep<11>2014 18:02 Apr 18, 2016 Jkt 238001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\19APN1.SGM 19APN1](https://thefederalregister.org/doc/81_FR_23139/page/1.svg)
![23066 Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Notices
Sale Period. Accordingly, the proposal A proposed rule change filed under those that may be withheld from the
is designed to incentivize and reward Rule 19b–4(f)(6) 17 normally does not public in accordance with the
aggressive displayed quoting by market become operative prior to 30 days after provisions of 5 U.S.C. 552, will be
participants, which would remove the date of the filing. However, pursuant available for Web site viewing and
impediments to and perfect the to Rule 19b–4(f)(6)(iii),18 the printing in the Commission’s Public
mechanism of a free and open market Commission may designate a shorter Reference Room, 100 F Street NE.,
and national market system by time if such action is consistent with the Washington, DC 20549 on official
contributing to the market quality of the protection of investors and the public business days between the hours of
Exchange and the national market interest. 10:00 a.m. and 3:00 p.m. Copies of the
system in general. In this regard, the At any time within 60 days of the filing also will be available for
Exchange believes that this proposed filing of such proposed rule change, the inspection and copying at the principal
change would have positive impact on Commission summarily may office of the Exchange. All comments
the Exchange’s market, on the temporarily suspend such rule change if received will be posted without change;
Exchange’s members, and on investors it appears to the Commission that such the Commission does not edit personal
generally by promoting the display of action is necessary or appropriate in the identifying information from
aggressively-priced liquidity on a public interest, for the protection of submissions.
registered exchange. investors, or otherwise in furtherance of You should submit only information
the purposes of the Act. If the that you wish to make available
B. Self-Regulatory Organization’s Commission takes such action, the publicly. All submissions should refer
Statement on Burden on Competition Commission shall institute proceedings to File Number SR–NYSE–2016–28 and
under section 19(b)(2)(B) 19 of the Act to should be submitted on or before May
The Exchange does not believe that 10, 2016.
determine whether the proposed rule
the proposed rule change will impose change should be approved or
any burden on competition that is not For the Commission, by the Division of
disapproved. Trading and Markets, pursuant to delegated
necessary or appropriate in furtherance authority.20
of the purposes of the Act. The IV. Solicitation of Comments
Robert W. Errett,
proposed change is not designed to Interested persons are invited to Deputy Secretary.
address any competitive issue but rather submit written data, views, and [FR Doc. 2016–08968 Filed 4–18–16; 8:45 am]
to promote the additional display of arguments concerning the foregoing,
BILLING CODE 8011–01–P
aggressively-priced liquidity on the including whether the proposed rule
Exchange by allowing interest that sets change is consistent with the Act.
a new Exchange BBO to be considered Comments may be submitted by any of SECURITIES AND EXCHANGE
setting interest even if other orders react the following methods: COMMISSION
and re-price based on such interest
setting a new Exchange BBO. Electronic Comments [Release No. 34–77610; File No. SR–
• Use the Commission’s Internet NYSEArca–2016–55]
C. Self-Regulatory Organization’s comment form (http://www.sec.gov/
Statement on Comments on the rules/sro.shtm); or Self-Regulatory Organizations; NYSE
Proposed Rule Change Received From • Send an email to rule-comments@ Arca, Inc.; Notice of Filing and
Members, Participants, or Others sec.gov. Please include File Number SR– Immediate Effectiveness of Proposed
NYSE–2016–28 on the subject line. Rule Change Amending the NYSE Arca
No written comments were solicited Options Fee Schedule
or received with respect to the proposed Paper Comments
rule change. April 13, 2016.
• Send paper comments in triplicate Pursuant to section 19(b)(1) 1 of the
III. Date of Effectiveness of the to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 (the
Proposed Rule Change and Timing for and Exchange Commission, 100 F Street ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Commission Action NE., Washington, DC 20549–1090. notice is hereby given that, on April 1,
All submissions should refer to File 2016, NYSE Arca, Inc. (the ‘‘Exchange’’
The Exchange has filed the proposed Number SR–NYSE–2016–28. This file
rule change pursuant to section or ‘‘NYSE Arca’’) filed with the
number should be included on the Securities and Exchange Commission
19(b)(3)(A)(iii) of the Act 15 and Rule subject line if email is used. To help the (the ‘‘Commission’’) the proposed rule
19b–4(f)(6) thereunder.16 Because the Commission process and review your change as described in Items I, II, and
proposed rule change does not: (i) comments more efficiently, please use III below, which Items have been
Significantly affect the protection of only one method. The Commission will prepared by the self-regulatory
investors or the public interest; (ii) post all comments on the Commission’s organization. The Commission is
impose any significant burden on Internet Web site (http://www.sec.gov/ publishing this notice to solicit
competition; and (iii) become operative rules/sro.shtml). Copies of the comments on the proposed rule change
prior to 30 days from the date on which submission, all subsequent from interested persons.
it was filed, or such shorter time as the amendments, all written statements
Commission may designate, if with respect to the proposed rule I. Self-Regulatory Organization’s
consistent with the protection of change that are filed with the Statement of the Terms of Substance of
mstockstill on DSK4VPTVN1PROD with NOTICES
investors and the public interest, the Commission, and all written the Proposed Rule Change
proposed rule change has become communications relating to the The Exchange proposes to amend the
effective pursuant to section 19(b)(3)(A) proposed rule change between the NYSE Arca Options Fee Schedule (‘‘Fee
of the Act and Rule 19b–4(f)(6)(iii) Commission and any person, other than
thereunder. 20 17 CFR 200.30–3(a)(12).
17 17 CFR 240.19b–4(f)(6). 1 15 U.S.C.78s(b)(1).
15 15 U.S.C. 78s(b)(3)(A)(iii). 18 17 CFR 240.19b–4(f)(6)(iii). 2 15 U.S.C. 78a.
16 17 CFR 240.19b–4(f)(6). 19 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4.
VerDate Sep<11>2014 18:02 Apr 18, 2016 Jkt 238001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\19APN1.SGM 19APN1](https://thefederalregister.org/doc/81_FR_23139/page/3.svg)
Document Created: 2016-04-19 00:15:54
Document Modified: 2016-04-19 00:15:54
| 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 23064 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR