81 FR 44907 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Partial Amendment No. 3 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendments No. 2 and 3, Relating to Pre-Opening Indications and Opening Procedures

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 132 (July 11, 2016)

Page Range		44907-44910
FR Document		2016-16272

Federal Register, Volume 81 Issue 132 (Monday, July 11, 2016)

[Federal Register Volume 81, Number 132 (Monday, July 11, 2016)]
[Notices]
[Pages 44907-44910]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-16272]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78228; File No. SR-NYSE-2016-24]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Partial Amendment No. 3 and Order Granting
Accelerated Approval of a Proposed Rule Change, as Modified by
Amendments No. 2 and 3, Relating to Pre-Opening Indications and Opening
Procedures

July 5, 2016.

I. Introduction

On March 17, 2016, New York Stock Exchange LLC (``Exchange'' or
``NYSE'') 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 its rules relating to pre-opening
indications and opening procedures. On March 30, 2016, the Exchange
filed Amendment No. 1 to the proposed rule change.\3\ On March 31,
2016, the Exchange filed Amendment No. 2 to the proposed rule
change.\4\ The proposed rule change, as modified by Amendment No. 2,
was published for comment in the Federal Register on April 6, 2016.\5\
On May 13, 2016, the Commission designated a longer period for action
on the proposed rule change.\6\ The Commission has received no comments
on the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 superseded the original filing in its
entirety.
\4\ Amendment No. 2 superseded the original filing, as modified
by Amendment No. 1, in its entirety.
\5\ See Securities Exchange Act Release No. 77491 (Mar. 31,
2016), 81 FR 20030 (``Notice'').
\6\ See Securities Exchange Act Release No. 77829, 81 FR 31670
(May 19, 2016).
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On June 23, 2016, the Exchange filed Partial Amendment No. 3 to the
proposed rule change.\7\ The Commission

[[Page 44908]]

is publishing this notice to solicit comments on Partial Amendment No.
3 from interested persons, and is approving the proposal, as modified
by Amendments No. 2 and 3, on an accelerated basis.
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\7\ In Partial Amendment No. 3, the Exchange: (1) Stated its
belief that securities with an average daily volume of over 500,000
shares at the open warrant manual openings because such a high
volume is likely to involve block-sized trades, and a manual opening
allows the Exchange's Floor brokers to solicit block-sized interest
to participate in the opening; (2) replaced the term ``order'' with
``orderly'' in proposed Rules 15(d)(2) and 123D(a)(1)(B)(ii); (3)
replaced the term ``consult with'' with the term ``notify'' in
proposed Rules 15(f)(2)(B) and 123D(c)(2)(B) to describe the action
the Exchange CEO must take if a determination is made to suspend the
requirements under those rules; and (4) clarified that the filing's
previous reference to ``consult with'' the Chief Regulatory Officer
(``CRO'') of the Exchange did not intend to create a requirement for
the Exchange CEO to obtain the CRO's approval to make a
determination under proposed Rules 15(f)(2)(B) and 123D(c)(2)(B).
Partial Amendment No. 3 is available at: https://www.sec.gov/comments/sr-nyse-2016-24/nyse201624-2.pdf.
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II. Description of the Proposal, As Modified by Amendment Nos. 2 and 3

The Exchange proposes to amend its rules relating to pre-opening
indications and other opening procedures. With respect to pre-opening
indications, the Exchange proposes to consolidate requirements for
publication of pre-opening indications in a single rule and to modify
the circumstances under which a Designated Market Maker (``DMM'') is
required to publish pre-opening indications in a security. The Exchange
also proposes to allow the Exchange CEO, under certain circumstances,
to temporarily suspend the requirement for DMMs to publish pre-opening
indications.
With respect to the opening process, the Exchange proposes to
specify in its rules that a DMM may open a security electronically only
within specified price and volume parameters, which would be doubled
during periods of extreme market-wide volatility. The Exchange also
proposes to allow the Exchange CEO, under certain circumstances, to
temporarily suspend these price and volume parameters, as well as the
existing requirement to obtain Floor official approval before opening
or reopening a security.
Finally, the Exchange proposes to delete NYSE Rule 48, and to make
conforming and technical amendments to several of its rules.

A. Current Pre-Opening Indications and Opening Process on the Exchange

1. Pre-Opening Indications and Mandatory Indications
Exchange rules currently provide for two types of published
indications before the open: pre-opening indications and mandatory
indications.
First, ``pre-opening indications'' pursuant to Exchange Rule 15 \8\
indicate the security and the price range for the anticipated opening
transaction and are published by the Exchange or by the DMM \9\ if the
opening transaction on the Exchange is anticipated to be more than a
specified price range away from the reference price.\10\ The pre-
opening indications are published on the Exchange's proprietary data
feeds rather than through the securities information processor
(``SIP'').\11\
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\8\ See NYSE Rule 15(a).
\9\ If a DMM issues a pre-opening indication or a mandatory
indication (as discussed below), the Exchange shall not publish a
pre-opening indication in that security. See NYSE Rule 15(a).
\10\ Generally, the reference price is the security's last
reported sale price on the Exchange. In the case of an initial
public offering (``IPO''), the reference price would be the offering
price. In the case of a transferred listing, the reference price
would be the last reported sale price on the prior listing market.
See NYSE Rule 15(a).
\11\ See Notice, supra note 5, at 20031. The Exchange may also
publish order imbalance information on its proprietary data feeds.
The order imbalance information contains the price at which opening
interest may be executed in full. See NYSE Rule 15(c).
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The current price ranges for pre-opening indications under Rule 15
are:

------------------------------------------------------------------------
Applicable
Exchange closing price price change
(more than)
------------------------------------------------------------------------
Under $20.00............................................ $0.50
$20-$49.99.............................................. $1.00
$50.00-$99.99........................................... $2.00
$100-$500............................................... $5.00
Above $500.............................................. 1.5%
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Second, under Exchange Rule 123D, the Exchange also requires that a
``mandatory indication'' be published if the opening price would result
in a significant price change from the previous close or if the opening
is delayed past 10:00 a.m.\12\ The applicable price parameters for the
Rule 123D mandatory indication are:
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\12\ See NYSE Rule 123D(b). When mandatory indications under
Rule 123D are published, pre-opening indications under Rule 15 are
not required.

------------------------------------------------------------------------
Price change (equal to or
Previous NYSE closing price greater than)
------------------------------------------------------------------------
Under $10.00............................ 1 dollar.
$10--$99.99............................. lesser of 10% or 3 dollars.
$100 and Over........................... 5 dollars.
------------------------------------------------------------------------

Exchange Rule 123D provides that all mandatory indications require
the supervision and approval of a Floor official and that subsequent
indications are required if a security will open outside the range of
the previous indication or if the previous indication had a wide
spread. Exchange Rule 123D also requires that a minimum period of time
elapse between the publication of the last indication and the
commencement of trading. Mandatory Indications are published to the SIP
and the Exchange's proprietary data feeds.\13\
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\13\ See Notice, supra note 5, at 20032.
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During extreme market volatility, NYSE Rule 48 provides that the
Exchange may suspend the requirements to publish pre-opening or
mandatory indications.\14\
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\14\ See NYSE Rule 48.
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2. Opening Process
Currently, the Exchange's rules provide that a DMM has the
responsibility to open its assigned securities as close to the opening
bell as possible, but that, when there is a price disparity from the
prior close, the DMM should not open trading in an ``unduly hasty''
manner. Openings on the Exchange may be done manually or
electronically, and securities may open on a quote or on a trade.
Currently, Exchange systems prevent a DMM from opening a security
electronically if the price parameters of Exchange Rule 15 (discussed
above) are exceeded or if the volume in the opening cross will exceed
100,000 shares.\15\
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\15\ In the Notice, the Exchange represented that DMM generally
opens manually when there is a pre-opening indication or a mandatory
indication. Further, the Exchange represented that its systems
prevents a DMM electronic open if a pre-opening indication is
required or if the size of the opening transaction would exceed
100,000 shares.
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B. Proposed Changes

1. Pre-Opening Indications
The Exchange proposes to consolidate pre-opening indications under
Rule 15 and mandatory indications under Rule 123D into a single type of
pre-opening indication under amended Rule 15.\16\ The Exchange also
proposes to make changes to the applicable price parameters that would
trigger a pre-opening indication, to provide for wider price parameters
on volatile trading days, and to prescribe detailed procedures for
publication of pre-opening indications. The Exchange further proposes
to authorize its CEO, in certain Floor-wide events, to temporarily
suspend the publication of pre-opening indications. The proposed pre-
opening indications would be published via both the SIP and the
Exchange's proprietary data feeds.
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\16\ See Notice, supra note 5.
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While the Exchange would retain the current definition of the
reference price used for determining when a pre-opening indication is
required, the Exchange would use different parameters for the price
movement that

[[Page 44909]]

would trigger a pre-opening indication. Instead of the current
parameters, which vary depending on a security's previous closing price
and use both dollar figures and percentages, the Exchange proposes to
require a pre-opening indication whenever a security is anticipated to
open 5% away from its reference price, except on volatile trading days.
On volatile trading days, the Exchange proposal would double the
applicable price range from 5% to 10%. The Exchange proposes to use
this wider range under three circumstances: first, if as of 9:00 a.m.
Eastern Time, the E-mini S&P 500 Futures price is more than 2% away
from its prior day's closing price; second, when there is a reopening
following a market-wide trading halt due to extraordinary market
volatility; and third, if the Exchange determines that it is necessary
or appropriate for the maintenance of a fair and orderly market.
The Exchange proposes procedures for the DMMs to follow when
required to publish the pre-opening indications, including the
requirement to obtain supervision and approval of a Floor governor, the
requirement to update pre-opening indication under certain
circumstances, the need to use best efforts to narrow the width of the
spread, the need for a delay between publishing a pre-opening
indication and opening trading, guidelines on trading halts, and the
process for reopening after a trading pause due to the Limit-Up-Limit-
Down mechanism.
The Exchange also proposes to allow the Exchange's CEO to
temporarily suspend the requirement to publish pre-opening indications
if the CEO determines that a Floor wide event is likely to impair the
DMM's ability to arrange for a fair and orderly opening. When invoking
this provision, the CEO must notify the Exchange's Chief Regulatory
Officer (``CRO'') and must inform Commission staff as promptly as
possible. Even when relieved of the obligation to publish pre-opening
indications, a DMM or the Exchange may publish a pre-opening indication
for one or more securities.\17\
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\17\ The Exchange also proposes to increase the frequency with
which the Exchange disseminates Order Imbalance Information between
9:20 a.m. ET and the opening of trading for that security from every
15 seconds to every 5 seconds. Additionally, the Exchange's proposal
would provide that, unless otherwise specified, all references in
Rule 15 to an opening transaction would also include a reopening
transaction following a trading halt or pause in a security.
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2. Opening Process
The Exchange proposes to codify in its rulebook the circumstances
under which a DMM may not open a security electronically. Under the
proposed amendments, a DMM would not be able to open a security
electronically: (1) If there is manually entered Floor interest; or (2)
if the opening transaction would be at a price more than 4% away from
the reference price or the opening transaction volume would be more
than: (a) 150,000 shares (for securities with average opening volume of
100,000 shares or less in the previous calendar quarter) or (b) 500,000
shares (for securities with average opening volume of over 100,000
shares in the previous calendar quarter). However, if the 9:00 a.m. E-
mini S&P 500 Futures price is 2% away from the prior day's closing
price, or if the Exchanges determines that it is necessary or
appropriate for the maintenance of a fair and orderly market, then a
DMM may open electronically at a price up to 8% away from the reference
price, and no volume limitation would apply to the opening transaction.
The Exchange also proposes to allow the Exchange CEO to temporarily
suspend (a) the price limits within which DMMs may open electronically
and (b) the need to for a DMM to obtain prior Floor official approval
to reopen trading electronically following a market-wide trading halt.
As with the suspension of the requirement to publish a pre-opening
indication, the CEO would need to consider the relevant facts and
circumstances, to notify the Exchange's CRO, and to inform Commission
staff.
3. Conforming Changes
In addition to the changes described above, the Exchange proposes
conforming changes to Exchange Rules 80C, 124, and 9217.

III. Discussion and Commission Findings

After careful review, the Commission finds that the proposed rule
change, as modified by Amendments No. 2 and 3, is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange.\18\ In particular, the
Commission finds that the proposed rule change is consistent with
section 6(b)(5) of the Act,\19\ which requires, among other things,
that the rules of a national securities exchange be 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.
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\18\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\19\ 15 U.S.C. 78f(b)(5).
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In support of its proposal, the Exchange has provided statistics
describing how the proposed modified rules for pre-opening indication
and opening procedures would have affected market openings on selected
periods in the past. In particular, the Exchange provided statistics
describing how the modified rules would have affected the Exchange's
opening on August 24, 2015, a day that featured unusual volatility in
the equities markets surrounding the 9:30 a.m. opening.\20\ According
to the Exchange, on August 24, 2015, 638 stocks listed on the NYSE (or
19.37% of all NYSE-listed stocks) were subject to NYSE Rule 123D
mandatory indication requirements, but, under the new proposed
parameters of NYSE Rule 15 applicable on a volatile trading day (i.e.,
the proposed 10% parameter) only 278 NYSE-listed stocks (or 8.44% of
all NYSE-listed stocks) would have required the publication of pre-
opening indications.\21\ Additionally, the Exchange's statistical
analysis shows that, while 1,682 NYSE-listed stocks on August 24, 2015,
exceeded the parameters within which Exchange systems would permit DMMs
to conduct an electronic open, the new proposed parameters of NYSE Rule
123D would have permitted DMMs to open all but 573 NYSE-listed stocks
electronically.\22\
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\20\ See Research Note: Equity Market Volatility on August 24,
2015, prepared by the Staff of the Office of Analytics and Research,
Division of Trading and Markets, Commission (available at https://www.sec.gov/marketstructure/research/equity_market_volatility.pdf).
\21\ See Table 2, Notice, supra note 5.
\22\ See Table 5, Notice, supra note 5.
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The Commission believes that the Exchange's proposed modifications
to its opening procedures are consistent with the requirements of the
Act, because the proposed modifications should provide greater clarity
to all market participants about the circumstances in which DMMs have
the discretion to open trading electronically and because they are
reasonably designed to enhance the ability of DMMs to open (and reopen)
trading on the Exchange in a timely fashion, particularly on days with
high market volatility, which should help to remove impediments to and
perfect the

[[Page 44910]]

mechanism of a free and open market and a national market system.\23\
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\23\ The Commission also believes that providing for more
frequent dissemination of the Order Imbalance Information to market
participants during the period immediately before the open should
assist the Exchange in conducting an orderly opening auction.
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The Exchange has also proposed procedures for publication of the
pre-opening indications and proposed to provide the Exchange CEO with
the power to temporarily suspend the publication of pre-opening
indications. The Commission believes that the Exchange's proposed
procedures for the publication of pre-opening publications are
reasonably designed to ensure that pre-opening procedures are more
expeditious. The Commission further believes that providing the
Exchange CEO under certain circumstances with the ability to
temporarily suspend the requirement for pre-opening indications, as
well as the price and volume parameters surrounding electronic openings
by DMMs, is reasonably designed to enhance the ability of the Exchange
to conduct orderly openings (and reopenings) under conditions of
extreme market-wide volatility.
For the above reasons, the Commission finds that the proposal, as
modified by Amendment Nos. 2 and 3, is consistent with the requirements
of the Act.

IV. Solicitation of Comments on Partial Amendment No. 3

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether Partial Amendment
No. 3 to the proposed rule change is consistent with the Act. Comments
may be submitted by any of the following methods:

Electronic Comments

Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSE-2016-24 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-2016-24. 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-2016-24 and should be
submitted on or before August 1, 2016.

V. Accelerated Approval of Proposed Rule Change, as Modified by
Amendments No. 2 and 3

The Commission finds good cause to approve the proposed rule
change, as modified by Amendments No. 2 and 3, prior to the 30th day
after the date of publication of notice of Partial Amendment No. 3 in
the Federal Register. In Partial Amendment No. 3, the Exchange: (1)
Stated its belief that securities with an average daily volume of over
500,000 shares at the open warrant manual openings because such high
volume is likely to involve block-sized trades and a manual opening
allows the Exchange's Floor brokers to solicit block-sized interest to
participate in the opening; (2) replaced the term ``order'' with
``orderly'' in proposed NYSE Rules 15(d)(2) and 123D(1)(a)(B)(ii); (3)
replaced the term ``consult with'' with the term ``notify'' in proposed
NYSE Rules 15(f)(2)(B) and 123D(c)(2)(B) to describe the action the CEO
of the Exchange must take if a determination is made to suspend the
requirements under those rules; and (4) clarified that the filing's
previous reference to ``consult with'' the Chief Regulatory Officer
(``CRO'') of the Exchange did not intend to create a requirement for
the CEO of the Exchange to obtain the CRO's approval to make a
determination under proposed NYSE Rules 15(f)(2)(B) and 123D(c)(2)(B).
The Commission believes that the revisions proposed in Partial
Amendment No. 3 are designed to clarify the meaning of the proposed
rules and do not raise any new novel regulatory issues. Therefore, the
Commission finds that Partial Amendment No. 3 is consistent with the
protection of investors and the public interest. Accordingly, the
Commission finds good cause, pursuant to section 19(b)(2) of the
Act,\24\ to approve the proposed rule change, as modified by Amendments
No. 2 and 3, on an accelerated basis.
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\24\ 15 U.S.C. 78s(b)(2).
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VI. Conclusion

It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\25\ that the proposed rule change (SR-NYSE-2016-24), as modified
by Amendments No. 2 and 3, be, and hereby is, approved on an
accelerated basis.
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\25\ Id.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-16272 Filed 7-8-16; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Notices 44907

Electronic Comments SECURITIES AND EXCHANGE proposed rule change (File Number SR–
COMMISSION NASDAQ–2016–061).
• Use the Commission’s Internet
For the Commission, by the Division of
comment form (http://www.sec.gov/ Trading and Markets, pursuant to delegated
[Release No. 34–78227; File No. SR–
rules/sro.shtml); or NASDAQ–2016–061] authority.6
• Send an email to rule-comments@ Brent J. Fields,
sec.gov. Please include File Number SR– Self-Regulatory Organizations; The Secretary.
BatsBZX–2016–31 on the subject line. NASDAQ Stock Market LLC; Notice of [FR Doc. 2016–16271 Filed 7–8–16; 8:45 am]
Designation of a Longer Period for
Paper Comments BILLING CODE 8011–01–P
Commission Action on a Proposed
Rule Change To List and Trade Shares
• Send paper comments in triplicate
of the First Trust Equity Market Neutral SECURITIES AND EXCHANGE
to Secretary, Securities and Exchange
ETF of the First Trust Exchange- COMMISSION
Commission, 100 F Street NE., Traded Fund VIII
Washington, DC 20549–1090. [Release No. 34–78228; File No. SR–NYSE–
July 5, 2016. 2016–24]
All submissions should refer to File
On May 4, 2016, the NASDAQ Stock
Number SR–BatsBZX–2016–31. This file Self-Regulatory Organizations; New
Market LLC (‘‘Exchange’’) filed with the
number should be included on the York Stock Exchange LLC; Notice of
Securities and Exchange Commission
subject line if email is used. To help the (‘‘Commission’’), pursuant to section Filing of Partial Amendment No. 3 and
Commission process and review your 19(b)(1) of the Securities Exchange Act Order Granting Accelerated Approval
comments more efficiently, please use of 1934 (‘‘Act’’) 1 and Rule 19b–4 of a Proposed Rule Change, as
only one method. The Commission will thereunder,2 a proposed rule change to Modified by Amendments No. 2 and 3,
post all comments on the Commission’s list and trade shares of the First Trust Relating to Pre-Opening Indications
Internet Web site (http://www.sec.gov/ Equity Market Neutral ETF of the First and Opening Procedures
rules/sro.shtml). Copies of the Trust Exchange-Traded Fund VIII. The July 5, 2016.
submission, all subsequent proposed rule change was published for
amendments, all written statements comment in the Federal Register on I. Introduction
with respect to the proposed rule May 25, 2016.3 The Commission On March 17, 2016, New York Stock
change that are filed with the received no comment letters on the Exchange LLC (‘‘Exchange’’ or ‘‘NYSE’’)
Commission, and all written proposed rule change. filed with the Securities and Exchange
communications relating to the Section 19(b)(2) of the Act 4 provides Commission (‘‘Commission’’), pursuant
proposed rule change between the that, within 45 days of the publication to section 19(b)(1) of the Securities
Commission and any person, other than of notice of the filing of a proposed rule Exchange Act of 1934 (‘‘Act’’) 1 and Rule
those that may be withheld from the change, or within such longer period up 19b–4 thereunder,2 a proposed rule
public in accordance with the to 90 days as the Commission may change to amend its rules relating to
provisions of 5 U.S.C. 552, will be designate if it finds such longer period pre-opening indications and opening
available for Web site viewing and to be appropriate and publishes its procedures. On March 30, 2016, the
printing in the Commission’s Public reasons for so finding or as to which the Exchange filed Amendment No. 1 to the
Reference Room, 100 F Street NE., self-regulatory organization consents, proposed rule change.3 On March 31,
Washington, DC 20549, on official the Commission shall either approve the 2016, the Exchange filed Amendment
proposed rule change, disapprove the No. 2 to the proposed rule change.4 The
business days between the hours of
proposed rule change, or institute proposed rule change, as modified by
10:00 a.m. and 3:00 p.m. Copies of the
proceedings to determine whether the Amendment No. 2, was published for
filing also will be available for
proposed rule change should be comment in the Federal Register on
inspection and copying at the principal disapproved. The 45th day after
office of the Exchange. All comments April 6, 2016.5 On May 13, 2016, the
publication of the notice for this Commission designated a longer period
received will be posted without change; proposed rule change is July 9, 2016. for action on the proposed rule change.6
the Commission does not edit personal The Commission is extending this 45- The Commission has received no
identifying information from day time period. comments on the proposed rule change.
submissions. You should submit only The Commission finds that it is On June 23, 2016, the Exchange filed
information that you wish to make appropriate to designate a longer period Partial Amendment No. 3 to the
available publicly. All submissions within which to take action on the proposed rule change.7 The Commission
should refer to File Number SR– proposed rule change so that it has
BatsBZX–2016–31, and should be sufficient time to consider the proposed 6 17 CFR 200.30–3(a)(31).
submitted on or before August 1, 2016. rule change. Accordingly, the 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
For the Commission, by the Division of Commission, pursuant to section
3 Amendment No. 1 superseded the original filing
Trading and Markets, pursuant to delegated 19(b)(2) of the Act,5 designates August
in its entirety.
authority.31 23, 2016, as the date by which the 4 Amendment No. 2 superseded the original
Commission should either approve or filing, as modified by Amendment No. 1, in its
Brent J. Fields,
disapprove or institute proceedings to entirety.
sradovich on DSK3GDR082PROD with NOTICES

Secretary. determine whether to disapprove the 5 See Securities Exchange Act Release No. 77491

[FR Doc. 2016–16270 Filed 7–8–16; 8:45 am] (Mar. 31, 2016), 81 FR 20030 (‘‘Notice’’).
6 See Securities Exchange Act Release No. 77829,
BILLING CODE 8011–01–P 1 15
U.S.C. 78s(b)(1). 81 FR 31670 (May 19, 2016).
2 17
CFR 240.19b–4. 7 In Partial Amendment No. 3, the Exchange: (1)
3 See Securities Exchange Act Release No. 77854
Stated its belief that securities with an average daily
(May 19, 2016), 81 FR 33307. volume of over 500,000 shares at the open warrant
4 15 U.S.C. 78s(b)(2).
manual openings because such a high volume is
31 17 CFR 200.30–3(a)(12). 5 15 U.S.C. 78s(b)(2). Continued

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44910 Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Notices

mechanism of a free and open market post all comments on the Commission’s proposed NYSE Rules 15(f)(2)(B) and
and a national market system.23 Internet Web site (http://www.sec.gov/ 123D(c)(2)(B).
The Exchange has also proposed rules/sro.shtml). Copies of the The Commission believes that the
procedures for publication of the pre- submission, all subsequent revisions proposed in Partial
opening indications and proposed to amendments, all written statements Amendment No. 3 are designed to
provide the Exchange CEO with the with respect to the proposed rule clarify the meaning of the proposed
power to temporarily suspend the change that are filed with the rules and do not raise any new novel
publication of pre-opening indications. Commission, and all written regulatory issues. Therefore, the
The Commission believes that the communications relating to the Commission finds that Partial
Exchange’s proposed procedures for the proposed rule change between the Amendment No. 3 is consistent with the
publication of pre-opening publications Commission and any person, other than protection of investors and the public
are reasonably designed to ensure that those that may be withheld from the interest. Accordingly, the Commission
pre-opening procedures are more public in accordance with the finds good cause, pursuant to section
expeditious. The Commission further provisions of 5 U.S.C. 552, will be 19(b)(2) of the Act,24 to approve the
believes that providing the Exchange available for Web site viewing and proposed rule change, as modified by
CEO under certain circumstances with printing in the Commission’s Public Amendments No. 2 and 3, on an
the ability to temporarily suspend the Reference Room, 100 F Street NE., accelerated basis.
requirement for pre-opening Washington, DC 20549, on official VI. Conclusion
indications, as well as the price and business days between the hours of
volume parameters surrounding 10:00 a.m. and 3:00 p.m. Copies of the It is therefore ordered, pursuant to
electronic openings by DMMs, is filing also will be available for section 19(b)(2) of the Act,25 that the
reasonably designed to enhance the inspection and copying at the principal proposed rule change (SR–NYSE–2016–
ability of the Exchange to conduct office of the Exchange. All comments 24), as modified by Amendments No. 2
orderly openings (and reopenings) received will be posted without change; and 3, be, and hereby is, approved on
under conditions of extreme market- the Commission does not edit personal an accelerated basis.
wide volatility. identifying information from For the Commission, by the Division of
For the above reasons, the submissions. You should submit only Trading and Markets, pursuant to delegated
Commission finds that the proposal, as information that you wish to make authority.26
modified by Amendment Nos. 2 and 3, available publicly. All submissions Brent J. Fields,
is consistent with the requirements of should refer to File Number SR–NYSE– Secretary.
the Act. 2016–24 and should be submitted on or [FR Doc. 2016–16272 Filed 7–8–16; 8:45 am]
IV. Solicitation of Comments on Partial before August 1, 2016. BILLING CODE 8011–01–P
Amendment No. 3 V. Accelerated Approval of Proposed
Interested persons are invited to Rule Change, as Modified by
submit written data, views, and Amendments No. 2 and 3 SMALL BUSINESS ADMINISTRATION
arguments concerning the foregoing,
The Commission finds good cause to Action Subject to Intergovernmental
including whether Partial Amendment
approve the proposed rule change, as Review
No. 3 to the proposed rule change is
consistent with the Act. Comments may modified by Amendments No. 2 and 3, AGENCY: U.S. Small Business
be submitted by any of the following prior to the 30th day after the date of Administration.
methods: publication of notice of Partial
ACTION: Notice of action subject to
Amendment No. 3 in the Federal
Electronic Comments Register. In Partial Amendment No. 3, intergovernmental review under
Executive Order 12372.
• Use the Commission’s Internet the Exchange: (1) Stated its belief that
comment form (http://www.sec.gov/ securities with an average daily volume SUMMARY: The Small Business
rules/sro.shtml); or of over 500,000 shares at the open Administration (SBA) is notifying the
• Send an email to rule-comments@ warrant manual openings because such public that it intends to fund grant
sec.gov. Please include File Number SR– high volume is likely to involve block- applications for 22 existing Small
NYSE–2016–24 on the subject line. sized trades and a manual opening Business Development Centers (SBDCs)
allows the Exchange’s Floor brokers to beginning October 1, 2016 subject to the
Paper Comments solicit block-sized interest to participate availability of funds. A description of
• Send paper comments in triplicate in the opening; (2) replaced the term the SBDC program is contained in the
to Brent J. Fields, Secretary, Securities ‘‘order’’ with ‘‘orderly’’ in proposed supplementary information below.
and Exchange Commission, 100 F Street NYSE Rules 15(d)(2) and The SBA is publishing this notice at
NE., Washington, DC 20549–1090. 123D(1)(a)(B)(ii); (3) replaced the term least 90 days before the expected
All submissions should refer to File ‘‘consult with’’ with the term ‘‘notify’’ funding date. The SBDCs mailing
Number SR–NYSE–2016–24. This file in proposed NYSE Rules 15(f)(2)(B) and addresses listed below are participating
number should be included on the 123D(c)(2)(B) to describe the action the in the intergovernmental review
subject line if email is used. To help the CEO of the Exchange must take if a process. A copy of this notice also is
Commission process and review your determination is made to suspend the being furnished to the respective State
comments more efficiently, please use requirements under those rules; and (4)
sradovich on DSK3GDR082PROD with NOTICES

single points of contact designated
only one method. The Commission will clarified that the filing’s previous under the Executive Order.
reference to ‘‘consult with’’ the Chief DATES: A State single point of contact
23 The Commission also believes that providing Regulatory Officer (‘‘CRO’’) of the and other interested State or local
for more frequent dissemination of the Order Exchange did not intend to create a
Imbalance Information to market participants
during the period immediately before the open
requirement for the CEO of the 24 15 U.S.C. 78s(b)(2).
should assist the Exchange in conducting an orderly Exchange to obtain the CRO’s approval 25 Id.

opening auction. to make a determination under 26 17 CFR 200.30–3(a)(12).

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Document Created: 2016-07-09 00:21:24
Document Modified: 2016-07-09 00:21:24

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 44907