81 FR 35115 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change To Amend Rule 952NY With Respect to Opening Trading in an Options Series
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 105 (June 1, 2016)
Federal Register Volume 81, Issue 105 (June 1, 2016)
| Page Range | 35115-35116 | |
| FR Document | 2016-12773 |
[Federal Register Volume 81, Number 105 (Wednesday, June 1, 2016)] [Notices] [Pages 35115-35116] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-12773] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77911; File No. SR-NYSEMKT-2016-42] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change To Amend Rule 952NY With Respect to Opening Trading in an Options Series May 25, 2016. On March 23, 2016, NYSE MKT LLC (``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend the Exchange's process for opening trading in an options series. The proposed rule change was published for comment in the Federal Register on April 12, 2016.\3\ The Commission has received no comment letters on the proposal. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 77540 (April 6, 2016), 81 FR 21623. --------------------------------------------------------------------------- Section 19(b)(2) of the Act \4\ provides that within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether these proposed rule changes should be disapproved. The 45th day for this filing is May 27, 2016. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- The Commission is extending the 45-day time period for Commission action on the proposed rule change. The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider and take action on the Exchange's proposed rule change. Accordingly, pursuant to Section 19(b)(2)(A)(ii)(I) of the Act \5\ and for the [[Page 35116]] reasons stated above, the Commission designates July 11, 2016 as the date by which the Commission should either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SR-NYSEMKT-2016-42). --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(2)(A)(ii)(I). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\6\ --------------------------------------------------------------------------- \6\ 17 CFR 200.30-3(a)(31). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-12773 Filed 5-31-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices 35115
given to a simpler rule in which more (B) institute proceedings to determine For the Commission, pursuant to delegated
onus is placed on the dealer that fails to whether the proposed rule change authority.17
deliver the securities by forcing those should be disapproved. Brent J. Fields,
dealers to take responsibility for Secretary.
IV. Solicitation of Comments
resolving the short, even suggesting the [FR Doc. 2016–12789 Filed 5–31–16; 8:45 am]
seller break the trade or resolve a fail Interested persons are invited to BILLING CODE 8011–01–P
through a buy-back. Currently the rule submit written data, views, and
places more emphasis on the buyer, arguments concerning the foregoing,
allowing the buyer to control the including whether the proposed rule SECURITIES AND EXCHANGE
execution and agree to the terms of the change is consistent with the Act. COMMISSION
close-out in the event the seller does not Comments may be submitted by any of [Release No. 34–77911; File No. SR–
resolve the fail. SIFMA noted that it is the following methods: NYSEMKT–2016–42]
not uncommon for dealers to simply
allow the delivery deadline to pass, Electronic Comments
Self-Regulatory Organizations; NYSE
thereby forcing the buyers to do all the • Use the Commission’s Internet MKT LLC; Notice of Designation of
‘‘heavy lifting.’’ In response to this comment form (http://www.sec.gov/ Longer Period for Commission Action
comment the proposed rule change rules/sro.shtml); or on Proposed Rule Change To Amend
would amend Rule G–12(h)(i)(D) to Rule 952NY With Respect to Opening
• Send an email to rule-comments@
specifically address ‘‘seller’s Trading in an Options Series
sec.gov. Please include File Number SR–
responsibilities,’’ which will further
MSRB–2016–07 on the subject line. May 25, 2016.
clarify that the seller is expected to use
its best efforts to locate the securities Paper Comments On March 23, 2016, NYSE MKT LLC
referenced in the notice. Currently, the (‘‘Exchange’’) filed with the Securities
Manual on Close-out Procedures • Send paper comments in triplicate and Exchange Commission
interprets any change in market price as to Secretary, Securities and Exchange (‘‘Commission’’), pursuant to Section
attributable to the seller. The proposed Commission, 100 F Street NE., 19(b)(1) of the Securities Exchange Act
amendments would further clarify that Washington, DC 20549. of 1934 (‘‘Act’’) 1 and Rule 19b–4
any financial burden as the result of the All submissions should refer to File thereunder,2 a proposed rule change to
purchaser effecting a ‘‘buy-in’’ is borne Number SR–MSRB–2016–07. This file amend the Exchange’s process for
by the seller, but any benefit remains number should be included on the opening trading in an options series.
with the purchaser. subject line if email is used. To help the The proposed rule change was
Commission process and review your published for comment in the Federal
Guidance for Customer Accounts Register on April 12, 2016.3 The
comments more efficiently, please use
SIFMA would like guidance on how only one method. The Commission will Commission has received no comment
to close-out a short position that results post all comments on the Commission’s letters on the proposal.
from an inter-dealer fail when that Internet Web site (http://www.sec.gov/ Section 19(b)(2) of the Act 4 provides
position is in a customer’s self-directed rules/sro.shtml). Copies of the that within 45 days of the publication of
account where the dealer may not have submission, all subsequent notice of the filing of a proposed rule
the discretion to sell or cancel a position amendments, all written statements change, or within such longer period up
in that account or purchase a with respect to the proposed rule to 90 days as the Commission may
comparable security for that account. change that are filed with the designate if it finds such longer period
The MSRB believes the guidance Commission, and all written to be appropriate and publishes its
requested by SIFMA is outside the communications relating to the reasons for so finding or as to which the
scope of the Request for Comments proposed rule change between the self-regulatory organization consents,
because the proposal does not impose Commission and any person, other than the Commission shall either approve the
an obligation on dealers to effect those that may be withheld from the proposed rule change, disapprove the
transactions in customer accounts in public in accordance with the proposed rule change, or institute
order to resolve inter-dealer fails and provisions of 5 U.S.C. 552, will be proceedings to determine whether these
should a customer want to retain a available for Web site viewing and proposed rule changes should be
position that effectively requires a printing in the Commission’s Public disapproved. The 45th day for this filing
dealer to pay substitute interest, that Reference Room, 100 F Street NE., is May 27, 2016.
issue is one outside the scope of MSRB Washington, DC 20549 on official The Commission is extending the 45-
rules. business days between the hours of day time period for Commission action
10:00 a.m. and 3:00 p.m. Copies of the on the proposed rule change. The
III. Date of Effectiveness of the Commission finds that it is appropriate
Proposed Rule Change and Timing for filing also will be available for
inspection and copying at the principal to designate a longer period within
Commission Action which to take action on the proposed
office of the MSRB. All comments
Within 45 days of the date of received will be posted without change; rule change so that it has sufficient time
publication of this notice in the Federal the Commission does not edit personal to consider and take action on the
Register or within such longer period of identifying information from Exchange’s proposed rule change.
up to 90 days (i) as the Commission may submissions. You should submit only Accordingly, pursuant to Section
sradovich on DSK3TPTVN1PROD with NOTICES
designate if it finds such longer period information that you wish to make 19(b)(2)(A)(ii)(I) of the Act 5 and for the
to be appropriate and publishes its available publicly. All submissions
1 15 U.S.C. 78s(b)(1).
reasons for so finding or (ii) as to which should refer to File Number SR–MSRB– 2 17 CFR 240.19b–4.
the self-regulatory organization 2016–07 and should be submitted on or 3 See Securities Exchange Act Release No. 77540
consents, the Commission will: before June 22, 2016. (April 6, 2016), 81 FR 21623.
(A) By order approve or disapprove 4 15 U.S.C. 78s(b)(2).
such proposed rule change, or 17 17 CFR 200.30–3(a)(12). 5 15 U.S.C. 78s(b)(2)(A)(ii)(I).
VerDate Sep<11>2014 21:59 May 31, 2016 Jkt 238001 PO 00000 Frm 00147 Fmt 4703 Sfmt 4703 E:\FR\FM\01JNN1.SGM 01JNN1](https://thefederalregister.org/doc/81_FR_35220/page/1.svg)
![35116 Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices
reasons stated above, the Commission the Commission’s Public Reference Currently, the System 9 sets the price of
designates July 11, 2016 as the date by Room. the Opening Process at the midpoint of
which the Commission should either the first NBBO after 9:30:00 a.m. Eastern
II. Self-Regulatory Organization’s
approve or disapprove, or institute Time. However, for securities listed on
Statement of the Purpose of, and
proceedings to determine whether to either the New York Stock Exchange,
Statutory Basis for, the Proposed Rule
disapprove, the proposed rule change Inc. (‘‘NYSE’’) or NYSE MKT LLC
Change
(File No. SR–NYSEMKT–2016–42). (‘‘NYSE MKT’’), the System currently
In its filing with the Commission, the sets the price of the Opening Process at
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Exchange included statements the midpoint of the first NBBO
authority.6 concerning the purpose of and basis for subsequent to the first reported trade on
Brent J. Fields,
the proposed rule change and discussed the listing exchange after 9:30:00 a.m.
any comments it received on the Eastern Time. The Exchange may
Secretary.
proposed rule change. The text of these alternatively set the price of the
[FR Doc. 2016–12773 Filed 5–31–16; 8:45 am] statements may be examined at the Opening Process for securities listed on
BILLING CODE 8011–01–P places specified in Item IV below. The either the NYSE or NYSE MKT at the
Exchange has prepared summaries, set midpoint of the then prevailing NBBO
forth in Sections A, B, and C below, of when the first two-sided quotation
SECURITIES AND EXCHANGE the most significant parts of such
COMMISSION published by the relevant listing
statements. exchange after 9:30:00 a.m. Eastern
[Release No. 34–77919; File No. SR– Time, but before 9:45:00 a.m. Eastern
A. Self-Regulatory Organization’s
BatsBYX–2016–09] Time if no first trade is reported by the
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule listing exchange within one second of
Self-Regulatory Organizations; Bats
Change publication of the first two-sided
BYX Exchange, Inc.; Notice of Filing
quotation by the listing exchange. The
and Immediate Effectiveness of a 1. Purpose System waits to set the price at the
Proposed Rule Change to Rule 11.23,
The Exchange proposes to amend midpoint of the first NBBO as set forth
Opening Process
Rule 11.23, Opening Process, to await a above because securities listed on the
May 25, 2016. two-sided quotation from the listing NYSE or NYSE MKT may not open at
Pursuant to Section 19(b)(1) of the exchange prior to opening a security for precisely 9:30:00 a.m. Eastern Time.
Securities Exchange Act of 1934 (the trading during Regular Trading Hours. Pursuant to subparagraph (b) of Rule
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange Rule 11.23 describes the 11.23, all orders executable at the
notice is hereby given that on May 20, Exchange’s current opening process. midpoint of the NBBO will continue to
2016, Bats BYX Exchange, Inc. (the Subparagraph (a) to Rule 11.23 states be processed in time sequence,
‘‘Exchange’’ or ‘‘BYX’’) filed with the that prior to the beginning of the beginning with the order with the oldest
Securities and Exchange Commission Regular Trading Hours, Users 6 who time stamp. Matches occur until there
(‘‘Commission’’) the proposed rule wish to participate in the Opening are no remaining contra-side orders or
change as described in Items I and II Process may enter orders to buy or sell.7 there is an imbalance of orders. An
below, which Items have been prepared Subparagraph (a)(2) to Rule 11.23 imbalance of orders may result in orders
by the Exchange. The Exchange has provides that, with certain exceptions,8 that cannot be executed in whole or in
designated this proposal as a ‘‘non- all orders with a time-in-force part. Any unexecuted orders may then
controversial’’ proposed rule change instruction of Regular Hours Only may be placed by the System on the BYX
pursuant to Section 19(b)(3)(A) of the participate in the Opening Process. Book,10 cancelled, executed, or routed
Act 3 and Rule 19b–4(f)(6)(iii) Subparagraph (b) to Rule 11.23 states to away Trading Centers in accordance
thereunder,4 which renders it effective that the Exchange will open by with the Users’ instructions pursuant to
upon filing with the Commission. The performing the Opening Process in Exchange Rule 11.13(a)(2).
Commission is publishing this notice to which the System will attempt to match The Exchange proposes to amend
solicit comments on the proposed rule buy and sell orders that are executable subparagraph (c) to Rule 11.23 to now
change from interested persons. at the midpoint of the National Best Bid await a two-sided quotation from the
and Offer (‘‘NBBO’’). Subparagraph (c) listing exchange prior to opening a
I. Self-Regulatory Organization’s to Exchange Rule 11.23 sets forth the security for trading during Regular
Statement of the Terms of Substance of process by which the System sets the Trading Hours. As amended,
the Proposed Rule Change opening price of the Opening Process. subparagraph (c)(2) to Rule 11.23 would
The Exchange filed a proposal to state that the System would set the price
6 See Exchange Rule 1.5(cc).
amend Rule 11.23, Opening Process, to of the Opening Process at the midpoint
7 Orders cancelled prior to the Opening Process
await a two-sided quotation from the of the first NBBO subsequent to the first
will not participate in the Opening Process.
listing exchange prior to opening a 8 The following order types and instruction may
two-sided quotation published by the
security for trading during Regular not participate in the opening process: (i) BYX Post listing exchange after 9:30:00 a.m.
Trading Hours.5 Only Orders, Partial Post Only at Limit Orders, ISOs Eastern Time. For securities listed on
The text of the proposed rule change not modified by Rule 11.23(a)(1) above, and either the NYSE or NYSE MKT,
Minimum Quantity Orders. See Exchange Rule
is available at the Exchange’s Web site 11.23(a)(2). Limit orders with a Reserve Quantity
subparagraph (c)(1)(i) to Rule 11.23
at www.batstrading.com, at the may participate to the full extent of their displayed would state that the System would set
sradovich on DSK3TPTVN1PROD with NOTICES
principal office of the Exchange, and at size and Reserve Quantity. Id. Discretionary Orders the price of the Opening Process at the
may participate only up to their ranked price for midpoint of the first NBBO subsequent
buy orders or down to their ranked price for sell
6 17 CFR 200.30–3(a)(31).
orders. Id. The discretionary range of such orders
to the first reported trade and first
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
will not be eligible for participation in the Opening
9 SeeExchange Rule 1.5(aa).
Process. Id. All Pegged Orders and Mid-Point Peg
3 15 U.S.C. 78s(b)(3)(A). 10 The
Orders, as defined in Rule 11.9(c)(8) and (9), will term ‘‘BYX Book’’ is defined as ‘‘the
4 17 CFR 240.19b–4(f)(6)(iii).
be eligible for execution in the Opening Process System’s electronic file of orders.’’ See Exchange
5 See Exchange Rule 1.5(w). based on their pegged prices. Id. Rule 1.5(e).
VerDate Sep<11>2014 21:59 May 31, 2016 Jkt 238001 PO 00000 Frm 00148 Fmt 4703 Sfmt 4703 E:\FR\FM\01JNN1.SGM 01JNN1](https://thefederalregister.org/doc/81_FR_35220/page/2.svg)
Document Created: 2018-02-08 07:27:34
Document Modified: 2018-02-08 07:27:34
| 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 35115 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR