81 FR 43332 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .02 to Exchange Rule 6.72 in Order To Extend the Penny Pilot Through December 31, 2016
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 127 (July 1, 2016)
Federal Register Volume 81, Issue 127 (July 1, 2016)
| Page Range | 43332-43334 | |
| FR Document | 2016-15713 |
[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)] [Notices] [Pages 43332-43334] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-15713] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78174; File No. SR-NYSEArca-2016-88] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .02 to Exchange Rule 6.72 in Order To Extend the Penny Pilot Through December 31, 2016 June 28, 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 June 17, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C.78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Commentary .02 to Exchange Rule 6.72 in order to extend the Penny Pilot in options classes in certain issues (``Pilot Program'') previously approved by the Securities and Exchange Commission (``Commission'') through December 31, 2016. The Pilot Program is currently scheduled to expire on June 30, 2016. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange hereby proposes to amend Commentary .02 to Exchange Rule 6.72 to extend the time period of the Pilot Program,\4\ which is currently scheduled to expire on June 30, 2016, through December 31, 2016. The Exchange also proposes that the dates to replace issues in the Pilot Program that have been delisted be revised to the second trading day following July 1, 2016.\5\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 75280 (June 24, 2015), 80 FR 37331 (June 30, 2015) (SR-NYSEArca-2015-51). \5\ The month immediately preceding a replacement class's addition to the Pilot Program (i.e., June) would not be used for purposes of the analysis for determining the replacement class. Thus, a replacement class to be added on the second trading day following July 1, 2016 would be identified based on The Option Clearing Corporation's trading volume data from December 1, 2015 through May 31, 2016. The Exchange will announce the replacement issues to the Exchange's membership through a Trader Update. --------------------------------------------------------------------------- This filing does not propose any substantive changes to the Pilot Program: All classes currently participating will remain the same and all minimum increments will remain unchanged. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh the increase in quote traffic. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) \6\ of the Securities Exchange Act of 1934 (the ``Act''), in general, and furthers the objectives of Section 6(b)(5),\7\ in particular, in that 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, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change, which extends the Penny Pilot Program for six months, allows the Exchange to continue to participate in a program that has been viewed as beneficial to traders, investors and public customers and viewed as successful by the other options exchanges participating in it. Accordingly, the Exchange believes that [[Page 43333]] the proposal is consistent with the Act because it will allow the Exchange to extend the Pilot Program prior to its expiration on June 30, 2016. The Exchange notes that this proposal does not propose any new policies or provisions that are unique or unproven, but instead relates to the continuation of an existing program that operates on a pilot basis. The Exchange believes that the Pilot Program promotes just and equitable principles of trade by enabling public customers and other market participants to express their true prices to buy and sell options to the benefit of all market participants. The proposal to extend the Pilot Program is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system, by allowing the Exchange and the Commission additional time to analyze the impact of the Pilot Program while also allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot Program. 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. Specifically, the Exchange believes that, by extending the expiration of the Pilot Program, the proposed rule change will allow for further analysis of the Pilot Program and a determination of how the Program should be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. The Pilot Program is an industry wide initiative supported by all other option exchanges. The Exchange believes that extending the Pilot Program will allow for continued competition between Exchange market participants trading similar products as their counterparts on other exchanges, while at the same time allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot Program. 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 \8\ and Rule 19b-4(f)(6) thereunder.\9\ 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(iii). \9\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally does not become operative prior to 30 days after the date of the filing.\11\ However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission's prior approval of the extension and expansion of the Pilot Program and will allow the Exchange and the Commission additional time to analyze the impact of the Pilot Program.\13\ Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\14\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 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 the 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 pre-filing requirement. \12\ 17 CFR 240.19b-4(f)(6)(iii). \13\ See Securities Exchange Act Release No. 61061 (November 24, 2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44). See also supra note 4. \14\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of 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) \15\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \15\ 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 Number SR-NYSEArca-2016-88 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-NYSEArca-2016-88. 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 [[Page 43334]] provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Section, 100 F Street NE., Washington, DC 20549-1090 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 NYSE's principal office. 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-NYSEArca-2016- 88 and should be submitted on or before July 22, 2016. --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-15713 Filed 6-30-16; 8:45 am] BILLING CODE 8011-01-P
![43332 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Notices
Electronic Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and the
• Use the Commission’s Internet Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ Change
[Release No. 34–78174; File No. SR–
rules/sro.shtml); or NYSEArca–2016–88] 1. Purpose
• Send an email to rule-
comments@sec.gov. Please include File Self-Regulatory Organizations; NYSE The Exchange hereby proposes to
Number SR–BatsBYX–2016–14 on the Arca, Inc.; Notice of Filing and amend Commentary .02 to Exchange
Immediate Effectiveness of Proposed Rule 6.72 to extend the time period of
subject line.
Rule Change Amending Commentary the Pilot Program,4 which is currently
Paper Comments .02 to Exchange Rule 6.72 in Order To scheduled to expire on June 30, 2016,
Extend the Penny Pilot Through through December 31, 2016. The
• Send paper comments in triplicate Exchange also proposes that the dates to
December 31, 2016
to Secretary, Securities and Exchange replace issues in the Pilot Program that
Commission, 100 F Street NE., June 28, 2016. have been delisted be revised to the
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) 1 of the second trading day following July 1,
Securities Exchange Act of 1934 (the 2016.5
All submissions should refer to File This filing does not propose any
Number SR–BatsBYX–2016–14. This ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on June 17, substantive changes to the Pilot
file number should be included on the Program: All classes currently
subject line if email is used. To help the 2016, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the participating will remain the same and
Commission process and review your all minimum increments will remain
comments more efficiently, please use Securities and Exchange Commission
unchanged. The Exchange believes the
only one method. The Commission will (the ‘‘Commission’’) the proposed rule
benefits to public customers and other
change as described in Items I and II
post all comments on the Commission’s market participants who will be able to
below, which Items have been prepared
Internet Web site (http://www.sec.gov/ express their true prices to buy and sell
by the self-regulatory organization. The
rules/sro.shtml). Copies of the options have been demonstrated to
Commission is publishing this notice to
submission, all subsequent outweigh the increase in quote traffic.
solicit comments on the proposed rule
amendments, all written statements change from interested persons. 2. Statutory Basis
with respect to the proposed rule
change that are filed with the I. Self-Regulatory Organization’s The proposed rule change is
Statement of the Terms of Substance of consistent with Section 6(b) 6 of the
Commission, and all written
the Proposed Rule Change Securities Exchange Act of 1934 (the
communications relating to the
‘‘Act’’), in general, and furthers the
proposed rule change between the The Exchange proposes to amend objectives of Section 6(b)(5),7 in
Commission and any person, other than Commentary .02 to Exchange Rule 6.72 particular, in that it is designed to
those that may be withheld from the in order to extend the Penny Pilot in prevent fraudulent and manipulative
public in accordance with the options classes in certain issues (‘‘Pilot acts and practices, to promote just and
provisions of 5 U.S.C. 552, will be Program’’) previously approved by the equitable principles of trade, to foster
available for Web site viewing and Securities and Exchange Commission cooperation and coordination with
printing in the Commission’s Public (‘‘Commission’’) through December 31, persons engaged in facilitating
Reference Room, 100 F Street NE., 2016. The Pilot Program is currently transactions in securities, and to remove
Washington, DC 20549, on official scheduled to expire on June 30, 2016. impediments to and perfect the
business days between the hours of The proposed rule change is available mechanisms of a free and open market
10:00 a.m. and 3:00 p.m. Copies of such on the Exchange’s Web site at and a national market system.
filing will also be available for www.nyse.com, at the principal office of In particular, the proposed rule
inspection and copying at the principal the Exchange, and at the Commission’s change, which extends the Penny Pilot
office of the Exchange. All comments Public Reference Room. Program for six months, allows the
received will be posted without change; Exchange to continue to participate in a
II. Self-Regulatory Organization’s program that has been viewed as
the Commission does not edit personal Statement of the Purpose of, and beneficial to traders, investors and
identifying information from Statutory Basis for, the Proposed Rule public customers and viewed as
submissions. You should submit only Change successful by the other options
information that you wish to make exchanges participating in it.
available publicly. All submissions In its filing with the Commission, the
self-regulatory organization included Accordingly, the Exchange believes that
should refer to File Number SR–
BatsBYX–2016–14 and should be statements concerning the purpose of, 4 See Securities Exchange Act Release No. 75280
submitted on or before July 22, 2016. and basis for, the proposed rule change (June 24, 2015), 80 FR 37331 (June 30, 2015) (SR–
and discussed any comments it received NYSEArca–2015–51).
For the Commission, by the Division of on the proposed rule change. The text 5 The month immediately preceding a
Trading and Markets, pursuant to delegated of those statements may be examined at replacement class’s addition to the Pilot Program
authority.20 (i.e., June) would not be used for purposes of the
asabaliauskas on DSK3SPTVN1PROD with NOTICES
the places specified in Item IV below.
analysis for determining the replacement class.
Robert W. Errett, The Exchange has prepared summaries, Thus, a replacement class to be added on the
Deputy Secretary. set forth in sections A, B, and C below, second trading day following July 1, 2016 would be
[FR Doc. 2016–15583 Filed 6–30–16; 8:45 am] of the most significant parts of such identified based on The Option Clearing
statements. Corporation’s trading volume data from December
BILLING CODE 8011–01–P 1, 2015 through May 31, 2016. The Exchange will
announce the replacement issues to the Exchange’s
1 15 U.S.C.78s(b)(1). membership through a Trader Update.
2 15 U.S.C. 78a. 6 15 U.S.C. 78f(b).
20 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. 7 15 U.S.C. 78f(b)(5).
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![43334 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Notices
provisions of 5 U.S.C. 552, will be DEPARTMENT OF STATE sufficient factual basis to find that the
available for Web site viewing and relevant circumstances described in
[Public Notice: 9620]
printing in the Commission’s Public section 219 of the Immigration and
Reference Section, 100 F Street NE., E.O. 13224 Designation of al-Qa’ida in Nationality Act, as amended (hereinafter
Washington, DC 20549–1090 on official the Indian Subcontinent, Also Known ‘‘INA’’) (8 U.S.C. 1189), exist with
business days between the hours of as al-Qaeda in the Indian respect to al-Qa’ida in the Indian
10:00 a.m. and 3:00 p.m. Copies of the Subcontinent, Also Known as Qaedat Subcontinent, also known as al-Qaeda
filing also will be available for al-Jihad in the Indian Subcontinent as in the Indian Subcontinent, also known
inspection and copying at the NYSE’s a Specially Designated Global Terrorist as Qaedat al-Jihad in the Indian
principal office. All comments received Subcontinent.
Acting under the authority of and in Therefore, I hereby designate the
will be posted without change; the
accordance with section 1(b) of aforementioned organization and its
Commission does not edit personal
Executive Order 13224 of September 23, aliases as a foreign terrorist organization
identifying information from 2001, as amended by Executive Order pursuant to section 219 of the INA.
submissions. You should submit only 13268 of July 2, 2002, and Executive This determination shall be published
information that you wish to make Order 13284 of January 23, 2003, I in the Federal Register.
available publicly. All submissions hereby determine that the organization
should refer to File Number SR– Dated: June 10, 2016.
known as al-Qa’ida in the Indian
NYSEArca–2016–88 and should be John F. Kerry,
Subcontinet, also known as al-Qaeda in
submitted on or before July 22, 2016. Secretary of State.
the Indian Subcontinent, also known as
Qaedat al-Jihad in the Indian [FR Doc. 2016–15680 Filed 6–30–16; 8:45 am]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Subcontinent committed, or poses a BILLING CODE 4710–AD–P
authority.16 significant risk of committing, acts of
Robert W. Errett, terrorism that threaten the security of
U.S. nationals or the national security, SURFACE TRANSPORTATION BOARD
Deputy Secretary.
foreign policy, or economy of the United [Docket No. AB 1241; Docket No. FD
[FR Doc. 2016–15713 Filed 6–30–16; 8:45 am]
States. 36040] 1
BILLING CODE 8011–01–P Consistent with the determination in
section 10 of Executive Order 13224 that Newvista Property Holdings, LLC—
‘‘prior notice to persons determined to Adverse Abandonment of the Ironton
be subject to the Order who might have Branch—In Utah County, Utah;
SMALL BUSINESS ADMINISTRATION a constitutional presence in the United Newvista Property Holdings, LLC—
States would render ineffectual the Petition For Declaratory Order
Interest Rates blocking and other measures authorized
in the Order because of the ability to By petition filed on March 7, 2016,
The Small Business Administration transfer funds instantaneously,’’ I NewVista Property Holdings, LLC
publishes an interest rate called the determine that no prior notice needs to (NewVista), seeks waivers of certain
optional ‘‘peg’’ rate (13 CFR 120.214) on be provided to any person subject to this Board regulations and exemptions from
a quarterly basis. This rate is a weighted determination who might have a certain statutory provisions in
average cost of money to the constitutional presence in the United connection with an adverse, or third-
government for maturities similar to the States, because to do so would render party, application for abandonment it
average SBA direct loan. This rate may ineffectual the measures authorized in plans to file under 49 U.S.C. 10903.
be used as a base rate for guaranteed the Order. NewVista’s petition concerns
fluctuating interest rate SBA loans. This This notice shall be published in the approximately 1.87 miles of railroad
rate will be 2.13 percent for the July– Federal Register. owned by Union Pacific Railroad
September quarter of FY 2016. Company (UP) known as the Ironton
Dated: June 10, 2016.
Branch. NewVista states that it owns, or
Pursuant to 13 CFR 120.921(b), the John F. Kerry, controls, nearly all of the industrial
maximum legal interest rate for any Secretary of State. property that abuts the Ironton Branch.
third party lender’s commercial loan [FR Doc. 2016–15683 Filed 6–30–16; 8:45 am] On March 28, 2016, UP filed a reply
which funds any portion of the cost of BILLING CODE 4710–AD–P to NewVista’s petition, arguing that the
a 504 project (see 13 CFR 120.801) shall petition should be rejected or denied
be 6% over the New York Prime rate or, because the Ironton Branch is excepted
if that exceeds the maximum interest DEPARTMENT OF STATE track under 49 U.S.C. 10906, and thus
rate permitted by the constitution or [Public Notice: 9621] falls outside the Board’s abandonment
laws of a given State, the maximum authority.
interest rate will be the rate permitted Foreign Terrorist Organization On April 7, 2016, NewVista filed a
by the constitution or laws of the given Designation of al-Qa’ida in the Indian reply to UP’s reply (the Surreply). In its
State. Subcontinent, Also Known as al-Qaeda Surreply, NewVista requests: (1)
in the Indian Subcontinent, Also Guidance regarding the appropriate
asabaliauskas on DSK3SPTVN1PROD with NOTICES
John M. Wade,
Known as Qaedat al-Jihad in the Indian procedures to obtain a ruling on
Acting Director, Office of Financial Subcontinent as a Specially whether the Ironton Branch has been
Assistance. Designated Global Terrorist removed from the Board’s jurisdiction;
[FR Doc. 2016–15686 Filed 6–30–16; 8:45 am] (2) a declaratory order that the Board
BILLING CODE P
Based upon a review of the ‘‘has authority to adversely abandon the
Administrative Record assembled in
this matter, and in consultation with the 1 These proceedings are not consolidated. A
Attorney General and the Secretary of single decision is being issued for administrative
16 17 CFR 200.30–3(a)(12). the Treasury, I conclude that there is a convenience.
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Document Created: 2016-07-14 11:38:12
Document Modified: 2016-07-14 11:38:12
| 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 43332 |
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