81 FR 31994 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Definition of Professional Customer in Rule 900.2NY(18A)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 98 (May 20, 2016)
Federal Register Volume 81, Issue 98 (May 20, 2016)
| Page Range | 31994-31996 | |
| FR Document | 2016-11877 |
[Federal Register Volume 81, Number 98 (Friday, May 20, 2016)] [Notices] [Pages 31994-31996] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-11877] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77836; File No. SR-NYSEMKT-2016-53] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Definition of Professional Customer in Rule 900.2NY(18A) May 16, 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 May 3, 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 the Substance of the Proposed Rule Change The Exchange proposes to amend the definition of Professional Customer in Rule 900.2NY(18A) to specify the manner in which the Exchange calculates average daily order submissions for purposes of counting Professional Customer orders. 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the definition of Professional Customer in Rule 900.2NY(18A) to adopt a methodology for counting average daily order submissions in listed options to determine whether a person or entity meets the definition of a Professional Customer (``Professional Customer order counting''). The proposed rule change is designed to harmonize Professional Customer order counting with the recently adopted rules of competing options exchanges--specifically the Chicago Board of Options Exchange, Inc. (``CBOE'') and NASDAQ OMX PHLX LLC (``PHLX'').\4\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release Nos. 77450 (March 25, 2016), 81 FR 18668, (March 31, 2016) (SR-CBOE-2016-005); 77449 (March 25, 2016), 81 FR 18665, (March 31, 2016) (SR-Phlx-2016-10) (approval orders). The Exchange notes that it recently issued guidance regarding Professional Customer order counting. See e.g., NYSE Arca, Inc.'s and NYSE MKT LLC's Joint Regulatory Bulletin (RBO- 15-03 and RBO-15-06, respectively) dated September 9, 2015. This proposal codifies that guidance in a manner that is consistent with CBOE and PHLX's approved rules. --------------------------------------------------------------------------- Rule 900.2NY(18A) defines Professional Customer ``as an individual or organization that (i) is not a Broker/Dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s).'' The Exchange believes that identifying Professional Customer accounts based upon the average number of orders entered in qualified accounts is an appropriate, objective approach that will reasonably distinguish such persons and entities from non-professional, retail investors or market participants.\5\ In order to properly represent orders entered on the Exchange, ATP Holders are required to indicate whether Customer orders are ``Professional Customer'' orders.\6\ To comply with this requirement, member organizations are required to review their Customers' activity on at least a quarterly basis to determine whether orders that are not for the account of a broker-dealer should be represented as Customer orders or Professional Customer orders.\7\ --------------------------------------------------------------------------- \5\ See, e.g., Securities Exchange Act Release No. 73665 (November 21, 2014), 79 FR 70907, 70908 (November 21, 2014) (SR- NYSEArca-2014-133) (adopting professional customer definition on immediately effective basis, citing rules of various exchanges, including Rule 900.2NY(18A)). \6\ See e.g., Rule 957NY (Reporting Duties), Commentary .02 (requiring that manual orders submitted be marked with an origin code ``PC.''). \7\ Orders for any customer that had an average of more than 390 orders per day during any month of a calendar quarter must be represented as Professional Customer orders for the next calendar quarter. ATP Holders would be required to conduct a quarterly review and make any appropriate changes to the way in which they are representing orders within five business days after the end of each calendar quarter. While members only would be required to review their accounts on a quarterly basis, if during a quarter the Exchange identifies a customer for which orders are being represented as Customer orders but that has averaged more than 390 orders per day during a month, the Exchange would notify the ATP Holder would be required to change the manner in which it is representing the customer's orders within five business days. --------------------------------------------------------------------------- The advent of new multi-leg spread products and the proliferation of the use of complex orders and algorithmic execution strategies by both institutional and retail market participants has raised questions as to what should be counted as an ``order'' for Professional Customer order counting purposes. The proposed changes would specifically address the counting of multi-leg spread products, algorithm generated orders, and complex orders for purposes of determining Professional Customer status. In addition, the proposal is intended to provide guidance regarding the methodology used by the Exchange when calculating average daily orders for Professional order counting purposes.\8\ --------------------------------------------------------------------------- \8\ This proposal is consistent with CBOE and PHLX's approved rules. See supra n. 4. --------------------------------------------------------------------------- As proposed, the rule would provide that an order would count as one order for Professional Customer counting purposes, unless one of the exceptions enumerated in the proposed rule stipulates otherwise (each an ``Exception''). The first Exception relates to the treatment of complex orders for purposes of computing orders for Professional order counting purposes. Specifically, the proposed rule provides that a complex order of eight legs or less would count as one order, whereas a complex order comprised of nine (9) option legs or more counts as multiple orders with each option leg counting as [[Page 31995]] its own separate order.\9\ The Exchange believes the distinction between complex orders with up to eight legs from those with nine or more legs is appropriate in light of the purposes for which Rule 900.2NY(18A) was adopted. In particular, the Exchange notes that multi- leg complex order strategies with nine or more legs are more complex in nature and thus, more likely to be used by professional traders than traditional two, three, and four leg complex order strategies such as the strangle, straddle, butterfly, collar, and condor strategies, and combinations thereof with eight legs or fewer, which are generally not algorithmically generated and are frequently used by non-professional, retail investors. Thus, the types of complex orders traditionally placed by retail investors would continue to count as only one order while the more complex strategy orders that are typically used by professional traders would count as multiple orders for Professional Customer order counting purposes.\10\ --------------------------------------------------------------------------- \9\ See proposed Rule 900.2NY(18A)(A)(1)(i)-(ii). \10\ See also supra n. 4. --------------------------------------------------------------------------- The second Exception relates to calculations for parent/child orders. As proposed, if a parent order submitted for the beneficial account(s) of a person or entity other than a broker or dealer is subsequently broken up into multiple child orders on the same side (buy/sell) and series by a broker or dealer, or by an algorithm housed at the broker or dealer, or by an algorithm licensed from the broker or dealer but housed with the customer, then the order would count as one order even if the child orders are routed across several exchanges.\11\ The Exchange believes this proposed change would allow the orders of public customers to be ``worked'' by a broker (or a broker's algorithm) in order to achieve best execution without counting the multiple child orders as separate orders for Professional Customer order counting purposes. Conversely, if a parent order, including a strategy order,\12\ is broken into multiple child orders on both sides (buy/ sell) of a series and/or multiple series, then each child order would count as a separate new order per side and series.\13\ This proposed change would allow the Exchange, for Professional Customer order counting purposes, to count as multiple orders those ``child'' orders of ``parent'' orders generated by algorithms that are typically used by sophisticated traders to continuously update their orders in concert with market updates in order to keep their overall trading strategies in balance. --------------------------------------------------------------------------- \11\ See proposed Rule 900.2NY(18A)(A)(2)(i). \12\ The term ``strategy order'' refers to an execution strategy, trading instruction, or algorithm whereby multiple ``child'' orders on both sides of a series and/or multiple series are generated prior to being sent to an options exchange(s). \13\ See proposed Rule 900.2NY(18A)(A)(2)(ii). --------------------------------------------------------------------------- The third Exception would govern the counting methodology for cancel/replace orders. As proposed, any order that cancels and replaces an existing order would count as a separate order (or multiple orders in the case of complex orders of nine legs or more) for Professional Customer order counting purposes.\14\ However, the Exchange proposes that an order to cancel and replace a child order would not count as a new order if the parent order that was placed for the beneficial account(s) of a non-broker or dealer had been subsequently broken into multiple child orders on the same side and series as the parent order by a broker or dealer, algorithm at a broker or dealer, or algorithm licensed from a broker or dealer but housed at the customer.\15\ By contrast, the Exchange proposes that an order that cancels and replaces a child order resulting from a parent order, including a strategy order, that generated child orders on both sides (buy/sell) of a series and/or in multiple series would count as a new order per side and series (``Both Sides/Multiple Series'').\16\ Finally, the Exchange proposes that, notwithstanding the treatment of a cancel/replace relating to Both Sides/Multiple Series orders, an order that cancels and replaces any child order resulting from a parent order being pegged to the Exchange's best bid or offer (``BBO'') or the national best bid or offer (``NBBO'') or that cancels and replaces any child order pursuant to an algorithm that uses the BBO or NBBO in the calculation of child orders and attempts to move with or follow the BBO or NBBO of a particular options series would count as a new order each time the order cancels and replaces in order to attempt to move with or follow the BBO or NBBO.\17\ --------------------------------------------------------------------------- \14\ See proposed Rule 900.2NY(18A)(A)(3)(i). \15\ See proposed Rule 900.2NY(18A)(A)(3)(ii). \16\ See proposed Rule 900.2NY(18A)(A)(3)(iii). \17\ See proposed Rule 900.2NY(18A)(A)(3)(iv). --------------------------------------------------------------------------- Implementation The Exchange proposes to implement the rule on July 1, 2016, which would be announced via Trader Update. 2. Statutory Basis The Exchange believes that the proposed change is consistent with Section 6(b) of the Act,\18\ in general, and furthers the objectives of Section 6(b)(5),\19\ in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitation transactions in securities, to remove impediments to, and perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f(b). \19\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Specifically, the Exchange believes that the proposal is designed to adopt a reasonable and objective approach to determine Professional Customer status that is consistent with the approach being utilized on other options exchanges, which benefits market participants by providing consistency across exchanges regarding the Professional Customer order counting.\20\ In this regard, the Exchange believes that codifying the manner in which the Exchange would conduct Professional Customer order counting would provide ATP Holders with certainty and provide them with insight as they conduct their own quarterly reviews for purposes of designating orders. --------------------------------------------------------------------------- \20\ See supra n. 4. --------------------------------------------------------------------------- The Exchange notes that it is not amending the threshold of 390 orders in listed options per day but, consisting with other exchanges is revising the method for counting Professional Customer orders in the context of multi-part orders and cancel/replace activity. In short, the proposal addresses how to account for complex orders, parent/child orders, and cancel/replace orders. The Exchange believes that distinguishing between complex orders with 9 or more options legs and those orders with 8 or fewer options legs is a reasonable and objective approach. In addition, the Exchange believes the proposal appropriately distinguishes between parent/child orders that are generated by a broker's efforts to obtain an execution on a larger size order while minimizing market impact and multi-part orders that used by more sophisticated market participants. Similarly, the Exchange believes that the proposal that cancel/replace orders would count as separate orders with limited exceptions is a reasonable and objective approach to distinguish the orders of retail customers that are ``worked'' by a broker from orders generated by algorithms used by more sophisticated market participants. Thus, the Exchange believes the proposal, which establishes an objective methodology for counting average daily order submissions for Professional [[Page 31996]] Customer order counting purposes, is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that this proposed rule change would impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the proposed rule change is a competitive change that is substantially similar to recent rule changes filed by the CBOE and PHLX.\21\ --------------------------------------------------------------------------- \21\ See id. --------------------------------------------------------------------------- The Exchange notes that one of the purposes of the Professional Customer designation is to help ensure fairness in the marketplace and promote competition among all market participants. The Exchange believes that this proposal would help establish more competition among market participants and promote the purposes for which the Exchange's Professional Customer rule was originally adopted. Moreover, the proposal would stem ensure consistency and stem potential confusion as to the manner in which options exchanges compute the Professional Customer order volume. 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 \22\ and Rule 19b-4(f)(6) thereunder.\23\ 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. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(3)(A)(iii). \23\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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) \24\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \24\ 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.shtml); or Send an email to [email protected]. Please include File No. SR-NYSEMKT-2016-53 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 No. SR-NYSEMKT-2016-53. 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 such 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 No. SR-NYSEMKT-2016-53, and should be submitted on or before June 10, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\25\ Robert W. Errett, Deputy Secretary. --------------------------------------------------------------------------- \25\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2016-11877 Filed 5-19-16; 8:45 am] BILLING CODE 8011-01-P
![31994 Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Notices
Securities and Exchange Commission, II. Self-Regulatory Organization’s represent orders entered on the
Office of Information and Regulatory Statement of the Purpose of, and Exchange, ATP Holders are required to
Affairs, Office of Management and Statutory Basis for, the Proposed Rule indicate whether Customer orders are
Budget, Room 10102, New Executive Change ‘‘Professional Customer’’ orders.6 To
Office Building, Washington, DC 20503, In its filing with the Commission, the comply with this requirement, member
or by sending an email to: Shagufta_ self-regulatory organization included organizations are required to review
Ahmed@omb.eop.gov; and (ii) Pamela statements concerning the purpose of, their Customers’ activity on at least a
Dyson, Director/Chief Information and basis for, the proposed rule change quarterly basis to determine whether
Officer, Securities and Exchange and discussed any comments it received orders that are not for the account of a
Commission, c/o Remi Pavlik-Simon, on the proposed rule change. The text broker-dealer should be represented as
100 F Street NE., Washington, DC 20549 of those statements may be examined at Customer orders or Professional
or send an email to: PRA_Mailbox@ the places specified in Item IV below. Customer orders.7
sec.gov. Comments must be submitted to The Exchange has prepared summaries, The advent of new multi-leg spread
OMB within 30 days of this notice. set forth in sections A, B, and C below, products and the proliferation of the use
of the most significant parts of such of complex orders and algorithmic
Dated: May 16, 2016.
statements. execution strategies by both
Robert W. Errett, institutional and retail market
Deputy Secretary. A. Self-Regulatory Organization’s participants has raised questions as to
[FR Doc. 2016–11874 Filed 5–19–16; 8:45 am] Statement of the Purpose of, and what should be counted as an ‘‘order’’
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule for Professional Customer order
Change counting purposes. The proposed
1. Purpose changes would specifically address the
SECURITIES AND EXCHANGE counting of multi-leg spread products,
COMMISSION The Exchange proposes to amend the algorithm generated orders, and
definition of Professional Customer in complex orders for purposes of
[Release No. 34–77836; File No. SR– Rule 900.2NY(18A) to adopt a
NYSEMKT–2016–53] determining Professional Customer
methodology for counting average daily status. In addition, the proposal is
Self-Regulatory Organizations; NYSE order submissions in listed options to intended to provide guidance regarding
determine whether a person or entity the methodology used by the Exchange
MKT LLC; Notice of Filing and
meets the definition of a Professional when calculating average daily orders
Immediate Effectiveness of Proposed
Customer (‘‘Professional Customer order for Professional order counting
Rule Change To Amend the Definition
counting’’). The proposed rule change is purposes.8
of Professional Customer in Rule
designed to harmonize Professional As proposed, the rule would provide
900.2NY(18A)
Customer order counting with the that an order would count as one order
May 16, 2016. recently adopted rules of competing for Professional Customer counting
Pursuant to Section 19(b)(1) 1 of the options exchanges—specifically the purposes, unless one of the exceptions
Securities Exchange Act of 1934 (the Chicago Board of Options Exchange, enumerated in the proposed rule
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Inc. (‘‘CBOE’’) and NASDAQ OMX stipulates otherwise (each an
notice is hereby given that on May 3, PHLX LLC (‘‘PHLX’’).4 ‘‘Exception’’). The first Exception relates
2016, NYSE MKT LLC (the ‘‘Exchange’’ Rule 900.2NY(18A) defines to the treatment of complex orders for
or ‘‘NYSE MKT’’) filed with the Professional Customer ‘‘as an individual purposes of computing orders for
Securities and Exchange Commission or organization that (i) is not a Broker/ Professional order counting purposes.
(the ‘‘Commission’’) the proposed rule Dealer in securities, and (ii) places more Specifically, the proposed rule provides
change as described in Items I and II than 390 orders in listed options per day that a complex order of eight legs or less
below, which Items have been prepared on average during a calendar month for would count as one order, whereas a
by the self-regulatory organization. The its own beneficial account(s).’’ The complex order comprised of nine (9)
Commission is publishing this notice to Exchange believes that identifying option legs or more counts as multiple
solicit comments on the proposed rule Professional Customer accounts based orders with each option leg counting as
change from interested persons. upon the average number of orders
entered in qualified accounts is an immediately effective basis, citing rules of various
I. Self-Regulatory Organization’s appropriate, objective approach that exchanges, including Rule 900.2NY(18A)).
Statement of the Terms of the Substance will reasonably distinguish such 6 See e.g., Rule 957NY (Reporting Duties),
of the Proposed Rule Change persons and entities from non- Commentary .02 (requiring that manual orders
submitted be marked with an origin code ‘‘PC.’’).
The Exchange proposes to amend the professional, retail investors or market 7 Orders for any customer that had an average of
definition of Professional Customer in participants.5 In order to properly more than 390 orders per day during any month of
Rule 900.2NY(18A) to specify the a calendar quarter must be represented as
4 See Securities Exchange Act Release Nos. 77450 Professional Customer orders for the next calendar
manner in which the Exchange
(March 25, 2016), 81 FR 18668, (March 31, 2016) quarter. ATP Holders would be required to conduct
calculates average daily order (SR–CBOE–2016–005); 77449 (March 25, 2016), 81 a quarterly review and make any appropriate
submissions for purposes of counting FR 18665, (March 31, 2016) (SR–Phlx–2016–10) changes to the way in which they are representing
Professional Customer orders. The (approval orders). The Exchange notes that it orders within five business days after the end of
proposed rule change is available on the recently issued guidance regarding Professional each calendar quarter. While members only would
Customer order counting. See e.g., NYSE Arca, be required to review their accounts on a quarterly
mstockstill on DSK3G9T082PROD with NOTICES
Exchange’s Web site at www.nyse.com, Inc.’s and NYSE MKT LLC’s Joint Regulatory basis, if during a quarter the Exchange identifies a
at the principal office of the Exchange, Bulletin (RBO–15–03 and RBO–15–06, respectively) customer for which orders are being represented as
and at the Commission’s Public dated September 9, 2015. This proposal codifies Customer orders but that has averaged more than
Reference Room. that guidance in a manner that is consistent with 390 orders per day during a month, the Exchange
CBOE and PHLX’s approved rules. would notify the ATP Holder would be required to
5 See, e.g., Securities Exchange Act Release No. change the manner in which it is representing the
1 15 U.S.C. 78s(b)(1). 73665 (November 21, 2014), 79 FR 70907, 70908 customer’s orders within five business days.
2 15 U.S.C. 78a. (November 21, 2014) (SR–NYSEArca–2014–133) 8 This proposal is consistent with CBOE and
3 17 CFR 240.19b–4. (adopting professional customer definition on PHLX’s approved rules. See supra n. 4.
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![31996 Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Notices
Customer order counting purposes, is action is necessary or appropriate in the information that you wish to make
consistent with the Act. public interest, for the protection of available publicly. All submissions
investors, or otherwise in furtherance of should refer to File No. SR–NYSEMKT–
B. Self-Regulatory Organization’s
the purposes of the Act. If the 2016–53, and should be submitted on or
Statement on Burden on Competition
Commission takes such action, the before June 10, 2016.
The Exchange does not believe that Commission shall institute proceedings For the Commission, by the Division of
this proposed rule change would under Section 19(b)(2)(B) 24 of the Act to Trading and Markets, pursuant to delegated
impose any burden on competition not determine whether the proposed rule authority.25
necessary or appropriate in furtherance change should be approved or Robert W. Errett,
of the purposes of the Act. To the disapproved. Deputy Secretary.
contrary, the proposed rule change is a
IV. Solicitation of Comments [FR Doc. 2016–11877 Filed 5–19–16; 8:45 am]
competitive change that is substantially
similar to recent rule changes filed by Interested persons are invited to BILLING CODE 8011–01–P
the CBOE and PHLX.21 submit written data, views, and
The Exchange notes that one of the arguments concerning the foregoing,
including whether the proposed rule SECURITIES AND EXCHANGE
purposes of the Professional Customer
change is consistent with the Act. COMMISSION
designation is to help ensure fairness in
the marketplace and promote Comments may be submitted by any of [Release No. 34–77840; File No. SR–FICC–
competition among all market the following methods: 2016–002]
participants. The Exchange believes that Electronic Comments
this proposal would help establish more Self-Regulatory Organizations; Fixed
competition among market participants • Use the Commission’s Internet Income Clearing Corporation; Notice of
and promote the purposes for which the comment form (http://www.sec.gov/ Filing To Suspend the Interbank
Exchange’s Professional Customer rule rules/sro.shtml); or Service of the GCF Repo® Service
was originally adopted. Moreover, the • Send an email to rule-comments@
sec.gov. Please include File No. SR– May 16, 2016.
proposal would stem ensure consistency Pursuant to Section 19(b)(1) of the
NYSEMKT–2016–53 on the subject line.
and stem potential confusion as to the Securities Exchange Act of 1934
manner in which options exchanges Paper Comments (‘‘Act’’),1 and Rule 19b–4 thereunder,2
compute the Professional Customer • Send paper comments in triplicate notice is hereby given that on May 5,
order volume. to Secretary, Securities and Exchange 2016, the Fixed Income Clearing
C. Self-Regulatory Organization’s Commission, 100 F Street NE., Corporation (‘‘FICC’’ or the
Statement on Comments on the Washington, DC 20549–1090. ‘‘Corporation’’) filed with the Securities
Proposed Rule Change Received From All submissions should refer to File No. and Exchange Commission
Members, Participants, or Others SR–NYSEMKT–2016–53. This file (‘‘Commission’’) the proposed rule
number should be included on the change as described in Items I and II
No written comments were solicited
subject line if email is used. To help the below, which Items have been prepared
or received with respect to the proposed
Commission process and review your by FICC. The Commission is publishing
rule change.
comments more efficiently, please use this notice to solicit comments on the
III. Date of Effectiveness of the only one method. The Commission will proposed rule change from interested
Proposed Rule Change and Timing for post all comments on the Commission’s persons.
Commission Action Internet Web site (http://www.sec.gov/ I. Clearing Agency’s Statement of the
The Exchange has filed the proposed rules/sro.shtml). Copies of the Terms of Substance of the Proposed
rule change pursuant to Section submission, all subsequent Rule Change
19(b)(3)(A)(iii) of the Act 22 and Rule amendments, all written statements
with respect to the proposed rule The purpose of this filing is to
19b–4(f)(6) thereunder.23 Because the
change that are filed with the suspend the interbank service of the
proposed rule change does not: (i)
Commission, and all written GCF Repo® service, as described more
Significantly affect the protection of
investors or the public interest; (ii) communications relating to the fully below. The proposed suspension
impose any significant burden on proposed rule change between the does not require changes to the text of
competition; and (iii) become operative Commission and any person, other than the Government Securities Division
prior to 30 days from the date on which those that may be withheld from the (‘‘GSD’’) Rulebook (the ‘‘GSD Rules’’),3
it was filed, or such shorter time as the public in accordance with the however, changes will occur within
Commission may designate, if provisions of 5 U.S.C. 552, will be FICC’s Real-Time Trade Matching
consistent with the protection of available for Web site viewing and (‘‘RTTM®’’) system to effectuate this
investors and the public interest, the printing in the Commission’s Public change.
proposed rule change has become Reference Room, 100 F Street NE., II. Clearing Agency’s Statement of the
effective pursuant to Section 19(b)(3)(A) Washington, DC 20549 on official Purpose of, and Statutory Basis for, the
of the Act and Rule 19b–4(f)(6)(iii) business days between the hours of Proposed Rule Change
thereunder. 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for In its filing with the Commission, the
At any time within 60 days of the
inspection and copying at the principal clearing agency included statements
mstockstill on DSK3G9T082PROD with NOTICES
filing of such proposed rule change, the
office of the Exchange. All comments concerning the purpose of and basis for
Commission summarily may
temporarily suspend such rule change if received will be posted without change;
25 17 CFR 200.30–3(a)(12).
it appears to the Commission that such the Commission does not edit personal 1 15 U.S.C. 78s(b)(1).
identifying information from 2 17 CFR 240.19b–4.
21 See id. submissions. You should submit only 3 The GSD Rulebook is available at DTCC’s Web
22 15 U.S.C. 78s(b)(3)(A)(iii). site, www.dtcc.com/legal/rules-and-
23 17 CFR 240.19b–4(f)(6). 24 15 U.S.C. 78s(b)(2)(B). procedures.aspx.
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Document Created: 2016-05-20 02:00:15
Document Modified: 2016-05-20 02:00:15
| Category | Regulatory Information | |
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| FR Citation | 81 FR 31994 |
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