81 FR 45578 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 515A To Extend the MIAX Price Improvement Mechanism (“PRIME”) Auction Pilot Program Until January 18, 2017
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 135 (July 14, 2016)
Federal Register Volume 81, Issue 135 (July 14, 2016)
| Page Range | 45578-45580 | |
| FR Document | 2016-16616 |
[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)] [Notices] [Pages 45578-45580] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-16616] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78265; File No. SR-MIAX-2016-19] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 515A To Extend the MIAX Price Improvement Mechanism (``PRIME'') Auction Pilot Program Until January 18, 2017 July 8, 2016. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on July 7, 2016, Miami International Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. 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\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend Exchange Rule 515A, Interpretations and Policies .08 to extend certain aspects of the MIAX Price Improvement Mechanism (``PRIME'') Auction pilot program (``Pilot Program''). The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at MIAX's principal office, 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 Exchange 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 these 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 aspects 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 extend the pilot period applicable to certain aspects of the Pilot Program which is currently set to expire on July 18, 2016,\3\ until January 18, 2017. --------------------------------------------------------------------------- \3\ See Exchange Act Release Nos. 73590 (November 13, 2014), 79 FR 68919 (SR-MIAX-2014-56) (establishing the PRIME Pilot Program) and 75486 (July 20, 2015), 80 FR 44174 (July 24, 2015) (SR-MIAX- 2015-48) (extending certain aspects of the PRIME Pilot Program to July 18, 2016). --------------------------------------------------------------------------- The current pilot allows PRIME Agency Orders of any size to initiate a PRIME Auction on MIAX at a price which is at or better than the national best bid or offer (``NBBO'').\4\ The Exchange implemented the pilot in order to benefit customers through the encouragement of the entry of more orders into the PRIME Auction, thus making it more likely that such orders may receive price improvement. The Exchange believes that the Pilot Program attracts order flow and promotes competition and price improvement opportunities for Agency Orders of fewer than 50 contracts. The Exchange believes that extending the Pilot Program period is appropriate because it would allow the Exchange and the Commission additional time to analyze data regarding the pilot that the Exchange has committed to provide. --------------------------------------------------------------------------- \4\ The Exchange notes that prior to the pilot, for PRIME Agency Orders for less than 50 standard option contracts or 500 mini-option contracts, the Initiating Member must stop the entire PRIME Agency Order as principal or with a solicited order at the better of the NBBO price improved by a $0.01 increment or the PRIME Agency Order's limit price (if the order is a limit order). In addition, to initiate the PRIME Auction for auto-match submissions, the Initiating Member must stop the PRIME Agency Order for less than 50 standard option contracts or 500 mini-option contracts at the better of the NBBO price improved by a $0.01 increment or the PRIME Agency Order's limit price. See Securities Exchange Act Release No. 73590 (November 13, 2014), 79 FR 68919 (November 19, 2014) (SR-MIAX-2014- 56). --------------------------------------------------------------------------- In its filing to adopt the MIAX PRIME Price Improvement Mechanism in 2014 the Exchange committed to submit reports periodically based on the comprehensive list of data the Exchange represented it would collect in order to aid the Commission in its evaluation of the PRIME mechanism.\5\ In November 2014 the Exchange established a Pilot Program to allow orders of less than 50 contracts or 500 mini-option contracts [[Page 45579]] to initiate a PRIME Auction,\6\ and began submitting revised periodic reports on August 1, 2015, based on the revised list of data detailed in Exhibit 3 of the Exchange's filing to extend the Pilot Program an additional year to July 18, 2016.\7\ Any raw data which is submitted to the Commission pursuant to the Pilot Program will be provided on a confidential basis. The Exchange continues to believe that there remains meaningful competition for all size orders and that there is an active and liquid market functioning on the Exchange outside of the PRIME Auction. The Exchange also continues to believe that there are significant opportunities for price improvement available in the PRIME Auction. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 72009 (April 23, 2014) 79 FR 24032 (April 29, 2014) (SR-MIAX-2014-09) (Order approving adoption of the MIAX PRIME Price Improvement Mechanism). \6\ See Securities Exchange Act Release No. 68919 [sic] (November 13, 2014), 79 FR 68919 (November 19, 2014) (SR-MIAX-2014- 56) (establishing the PRIME Pilot Program). \7\ See Securities Exchange Act Release No. 75486 (July 20, 2015), 80 FR 44174 (July 24, 2015) (SR-MIAX-2015-48) (extending certain aspects of the PRIME Pilot Program to July 18, 2016). --------------------------------------------------------------------------- 2. Statutory Basis MIAX believes that its proposed rule change is consistent with Section 6(b) of the Act \8\ in general, and furthers the objectives of Section 6(b)(5) of the Act \9\ 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, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that extending the Pilot Program is consistent with these principles because the Pilot Program is reasonably designed to create tighter markets and ensure that each order receives the best possible price, which benefits investors by increasing competition thereby maximizing opportunities for price improvement. The proposed extension would allow the pilot to continue uninterrupted, thereby avoiding any potential investor confusion that could result from a temporary interruption in the pilot. Because the Pilot Program is applicable to all PRIME Agency Orders for fewer than 50 contracts, the proposal to extend the Pilot Program merely acts to maintain the status quo on the Exchange, which promotes just and equitable principles of trade and removes impediments to, and perfects the mechanism of, a free and open market and a national market system. The extension of the Pilot Program period will allow the Commission and the Exchange to continue to monitor the Pilot Program to ascertain whether there is meaningful competition for all size orders and whether there is an active and liquid market functioning on the Exchange outside of the PRIME Auction. The extension of the Pilot Program period would also enable market participants to continue to benefit from the significant opportunities for price improvement available in the PRIME Auction. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change simply extends an established pilot program for an additional period and would allow for further analysis of the pilot. In addition, the proposed extension would allow the Pilot Program to continue uninterrupted, thereby avoiding any potential investor confusion that could result from a temporary interruption in the Pilot Program. Thus, the proposal would also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing 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 for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\11\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 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 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 requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange requested that the Commission waive the 30-day operative delay. The Exchange noted that waiver of the 30-day operative delay would allow for the Pilot Program to continue uninterrupted. --------------------------------------------------------------------------- \12\ 17 CFR 240.19b-4(f)(6). \13\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest, as it will allow the Pilot Program to continue uninterrupted, thereby avoiding any potential investor confusion that could result from a temporary interruption in the Pilot Program. Therefore, the Commission designates the proposed rule change to be operative on July 18, 2016.\14\ --------------------------------------------------------------------------- \14\ For purposes only of waiving the operative delay, 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 the 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 to determine whether the proposed rule should be approved or disapproved. 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-MIAX-2016-19 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities [[Page 45580]] and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-MIAX-2016-19. 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-MIAX-2016-19 and should be submitted on or before August 4, 2016. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Jill M. Peterson, Assistant Secretary. [FR Doc. 2016-16616 Filed 7-13-16; 8:45 am] BILLING CODE 8011-01-P
![45578 Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Notices
filed Amendment No. 1 to the proposed SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
rule change.4 COMMISSION Statement of the Purpose of, and
On March 18, 2016, pursuant to Statutory Basis for, the Proposed Rule
Section 19(b)(2) of the Act,5 the [Release No. 34–78265; File No. SR–MIAX– Change
2016–19]
Commission designated a longer period 1. Purpose
within which to approve the proposed Self-Regulatory Organizations; Miami
rule change, disapprove the proposed International Securities Exchange LLC; The Exchange proposes to extend the
rule change, or institute proceedings to Notice of Filing and Immediate pilot period applicable to certain
determine whether to disapprove the Effectiveness of a Proposed Rule aspects of the Pilot Program which is
proposed rule change.6 On May 17, Change To Amend Exchange Rule currently set to expire on July 18, 2016,3
2016, the Commission instituted 515A To Extend the MIAX Price until January 18, 2017.
proceedings under Section 19(b)(2)(B) of Improvement Mechanism (‘‘PRIME’’) The current pilot allows PRIME
the Act 7 to determine whether to Auction Pilot Program Until January Agency Orders of any size to initiate a
approve or disapprove the proposed 18, 2017 PRIME Auction on MIAX at a price
rule change.8 The Commission received which is at or better than the national
July 8, 2016.
eleven comments on the proposal.9 best bid or offer (‘‘NBBO’’).4 The
Pursuant to the provisions of Section Exchange implemented the pilot in
On July 7, 2016, the Exchange 19(b)(1) of the Securities Exchange Act order to benefit customers through the
withdrew the proposed rule change of 1934 (‘‘Act’’) 1 and Rule 19b–4 encouragement of the entry of more
(SR–NYSEArca–2016–08). thereunder,2 notice is hereby given that orders into the PRIME Auction, thus
For the Commission, by the Division of on July 7, 2016, Miami International making it more likely that such orders
Trading and Markets, pursuant to delegated Securities Exchange LLC (‘‘MIAX’’ or may receive price improvement. The
authority.10 ‘‘Exchange’’) filed with the Securities Exchange believes that the Pilot
Jill M. Peterson,
and Exchange Commission Program attracts order flow and
(‘‘Commission’’) a proposed rule change promotes competition and price
Assistant Secretary.
as described in Items I and II below, improvement opportunities for Agency
[FR Doc. 2016–16603 Filed 7–13–16; 8:45 am] which Items have been prepared by the Orders of fewer than 50 contracts. The
BILLING CODE 8011–01–P Exchange. The Commission is Exchange believes that extending the
publishing this notice to solicit Pilot Program period is appropriate
comments on the proposed rule change because it would allow the Exchange
from interested persons. and the Commission additional time to
I. Self-Regulatory Organization’s analyze data regarding the pilot that the
Statement of the Terms of Substance of Exchange has committed to provide.
the Proposed Rule Change In its filing to adopt the MIAX PRIME
The Exchange is filing a proposal to Price Improvement Mechanism in 2014
4 In amend Exchange Rule 515A, the Exchange committed to submit
Amendment No. 1 to the proposed rule
Interpretations and Policies .08 to reports periodically based on the
change, the Exchange corrected the citations to the
Trust’s Form N–1A and Exemptive Application, extend certain aspects of the MIAX comprehensive list of data the Exchange
which were misstated in the proposal. Amendment Price Improvement Mechanism represented it would collect in order to
No. 1 to the proposed rule change is available on (‘‘PRIME’’) Auction pilot program aid the Commission in its evaluation of
the Commission’s Web site at: http://www.sec.gov/ (‘‘Pilot Program’’). the PRIME mechanism.5 In November
comments/sr-nysearca-2016-08/nysearca201608- The text of the proposed rule change 2014 the Exchange established a Pilot
1.pdf. Program to allow orders of less than 50
5 15 U.S.C. 78s(b)(2).
is available on the Exchange’s Web site
at http://www.miaxoptions.com/filter/ contracts or 500 mini-option contracts
6 See Securities Exchange Act Release No. 77405,
81 FR 15774 (Mar. 24, 2016).
wotitle/rule_filing, at MIAX’s principal
7 15 U.S.C. 78s(b)(2)(B). office, and at the Commission’s Public 3 See Exchange Act Release Nos. 73590
Reference Room. (November 13, 2014), 79 FR 68919 (SR–MIAX–
8 See Securities Exchange Act Release No. 77845,
2014–56) (establishing the PRIME Pilot Program)
81 FR 32376 (May 23, 2016). II. Self-Regulatory Organization’s and 75486 (July 20, 2015), 80 FR 44174 (July 24,
9 See Letters from Douglas M. Yones, Head of 2015) (SR–MIAX–2015–48) (extending certain
Statement of the Purpose of, and aspects of the PRIME Pilot Program to July 18,
Exchange Traded Products, New York Stock
Statutory Basis for, the Proposed Rule 2016).
Exchange (Jul. 5, 2016); Eric Swanson, General
Counsel & Secretary, Bats Global Markets, Inc. (Jul. Change 4 The Exchange notes that prior to the pilot, for
1, 2016); Todd J. Broms, CEO, Broms and Company PRIME Agency Orders for less than 50 standard
In its filing with the Commission, the option contracts or 500 mini-option contracts, the
LLC (Jun. 27, 2016); Daniel J. McCabe, CEO, Exchange included statements Initiating Member must stop the entire PRIME
Precidian Investments LLC (Jun. 15, 2016); Gary L.
concerning the purpose of and basis for Agency Order as principal or with a solicited order
Gastineau, President, ETF Consultants.com, Inc. at the better of the NBBO price improved by a $0.01
(Jun. 13, 2016); Daniel J. McCabe, CEO, Precidian the proposed rule change and discussed
increment or the PRIME Agency Order’s limit price
Investments LLC (Jun. 13, 2016); James J. Angel, any comments it received on the (if the order is a limit order). In addition, to initiate
Ph.D., CFA, Associate Professor, McDonough proposed rule change. The text of these the PRIME Auction for auto-match submissions, the
statements may be examined at the Initiating Member must stop the PRIME Agency
asabaliauskas on DSK3SPTVN1PROD with NOTICES
School of Business, Georgetown University (Jun. 9,
2016); Joseph A. Sullivan, Chairman and Chief places specified in Item IV below. The Order for less than 50 standard option contracts or
Executive Officer, Legg Mason Global Asset 500 mini-option contracts at the better of the NBBO
Exchange has prepared summaries, set price improved by a $0.01 increment or the PRIME
Management (Apr. 15, 2016); Andrew M. Gross, Jr.
forth in sections A, B, and C below, of Agency Order’s limit price. See Securities Exchange
(Apr. 5, 2016); David Nadig (Mar. 31, 2016); and
Gary L. Gastineau, President, ETF Consultants.com,
the most significant aspects of such Act Release No. 73590 (November 13, 2014), 79 FR
statements. 68919 (November 19, 2014) (SR–MIAX–2014–56).
Inc. (Mar. 10, 2016) (comment letters available at: 5 See Securities Exchange Act Release No. 72009
https://www.sec.gov/comments/sr-nysearca-2016- (April 23, 2014) 79 FR 24032 (April 29, 2014) (SR–
08/nysearca201608.shtml). 1 15 U.S.C. 78s(b)(1). MIAX–2014–09) (Order approving adoption of the
10 17 CFR 200.30–3(a)(57). 2 17 CFR 240.19b–4. MIAX PRIME Price Improvement Mechanism).
VerDate Sep<11>2014 19:33 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 E:\FR\FM\14JYN1.SGM 14JYN1](https://thefederalregister.org/doc/81_FR_45713/page/1.svg)
![Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Notices 45579
to initiate a PRIME Auction,6 and began the mechanism of, a free and open A proposed rule change filed under
submitting revised periodic reports on market and a national market system. Rule 19b–4(f)(6) 12 normally does not
August 1, 2015, based on the revised list The extension of the Pilot Program become operative for 30 days after the
of data detailed in Exhibit 3 of the period will allow the Commission and date of filing. However, pursuant to
Exchange’s filing to extend the Pilot the Exchange to continue to monitor the Rule 19b–4(f)(6)(iii),13 the Commission
Program an additional year to July 18, Pilot Program to ascertain whether there may designate a shorter time if such
2016.7 Any raw data which is submitted is meaningful competition for all size action is consistent with the protection
to the Commission pursuant to the Pilot orders and whether there is an active of investors and the public interest. The
Program will be provided on a and liquid market functioning on the Exchange requested that the
confidential basis. The Exchange Exchange outside of the PRIME Auction. Commission waive the 30-day operative
continues to believe that there remains The extension of the Pilot Program delay. The Exchange noted that waiver
meaningful competition for all size period would also enable market of the 30-day operative delay would
orders and that there is an active and participants to continue to benefit from allow for the Pilot Program to continue
liquid market functioning on the the significant opportunities for price uninterrupted.
Exchange outside of the PRIME Auction. improvement available in the PRIME The Commission believes that
The Exchange also continues to believe Auction. waiving the 30-day operative delay is
that there are significant opportunities consistent with the protection of
B. Self-Regulatory Organization’s
for price improvement available in the investors and the public interest, as it
Statement on Burden on Competition
PRIME Auction. will allow the Pilot Program to continue
The Exchange does not believe that uninterrupted, thereby avoiding any
2. Statutory Basis the proposed rule change will impose potential investor confusion that could
MIAX believes that its proposed rule any burden on competition that is not result from a temporary interruption in
change is consistent with Section 6(b) of necessary or appropriate in furtherance the Pilot Program. Therefore, the
the Act 8 in general, and furthers the of the purposes of the Act. The Commission designates the proposed
objectives of Section 6(b)(5) of the Act 9 proposed rule change simply extends an rule change to be operative on July 18,
in particular, in that it is designed to established pilot program for an 2016.14
prevent fraudulent and manipulative additional period and would allow for At any time within 60 days of the
acts and practices, to promote just and further analysis of the pilot. In addition, filing of the proposed rule change, the
equitable principles of trade, to foster the proposed extension would allow the Commission summarily may
cooperation and coordination with Pilot Program to continue temporarily suspend such rule change if
persons engaged in facilitating uninterrupted, thereby avoiding any it appears to the Commission that such
transactions in securities, to remove potential investor confusion that could action is necessary or appropriate in the
impediments to and perfect the result from a temporary interruption in public interest, for the protection of
mechanisms of a free and open market the Pilot Program. Thus, the proposal investors, or otherwise in furtherance of
and a national market system and, in would also serve to promote regulatory the purposes of the Act. If the
general, to protect investors and the clarity and consistency, thereby Commission takes such action, the
public interest. reducing burdens on the marketplace Commission shall institute proceedings
The Exchange believes that extending and facilitating investor protection. to determine whether the proposed rule
the Pilot Program is consistent with should be approved or disapproved.
these principles because the Pilot C. Self-Regulatory Organization’s
Program is reasonably designed to create Statement on Comments on the IV. Solicitation of Comments
tighter markets and ensure that each Proposed Rule Change Received From
Members, Participants, or Others Interested persons are invited to
order receives the best possible price, submit written data, views, and
which benefits investors by increasing Written comments were neither arguments concerning the foregoing,
competition thereby maximizing solicited nor received. including whether the proposed rule
opportunities for price improvement. change is consistent with the Act.
III. Date of Effectiveness of the
The proposed extension would allow Comments may be submitted by any of
Proposed Rule Change and Timing for
the pilot to continue uninterrupted, the following methods:
Commission Action
thereby avoiding any potential investor
confusion that could result from a Because the foregoing proposed rule Electronic Comments
temporary interruption in the pilot. change does not: (i) Significantly affect
• Use the Commission’s Internet
Because the Pilot Program is applicable the protection of investors or the public
comment form (http://www.sec.gov/
to all PRIME Agency Orders for fewer interest; (ii) impose any significant
rules/sro.shtml); or
than 50 contracts, the proposal to burden on competition; and (iii) become
operative for 30 days from the date on • Send an email to rule-comments@
extend the Pilot Program merely acts to
which it was filed, or such shorter time sec.gov. Please include File Number SR–
maintain the status quo on the
as the Commission may designate, it has MIAX–2016–19 on the subject line.
Exchange, which promotes just and
equitable principles of trade and become effective pursuant to Section Paper Comments
removes impediments to, and perfects 19(b)(3)(A) of the Act 10 and
subparagraph (f)(6) of Rule 19b–4 • Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
asabaliauskas on DSK3SPTVN1PROD with NOTICES
6 See Securities Exchange Act Release No. 68919 thereunder.11
[sic] (November 13, 2014), 79 FR 68919 (November
19, 2014) (SR–MIAX–2014–56) (establishing the 10 15
U.S.C. 78s(b)(3)(A). as designated by the Commission. The Exchange
PRIME Pilot Program). 11 17
CFR 240.19b–4(f)(6). In addition, Rule 19b- has satisfied this requirement.
7 See Securities Exchange Act Release No. 75486 12 17 CFR 240.19b–4(f)(6).
4(f)(6) requires the Exchange to give the
(July 20, 2015), 80 FR 44174 (July 24, 2015) (SR– Commission written notice of the Exchange’s intent 13 17 CFR 240.19b–4(f)(6)(iii).
MIAX–2015–48) (extending certain aspects of the to file the proposed rule change along with a brief 14 For purposes only of waiving the operative
PRIME Pilot Program to July 18, 2016). description and text of the proposed rule change, delay, the Commission has considered the proposed
8 15 U.S.C. 78f(b).
at least five business days prior to the date of filing rule’s impact on efficiency, competition, and capital
9 15 U.S.C. 78f(b)(5). of the proposed rule change, or such shorter time formation. See 15 U.S.C. 78c(f).
VerDate Sep<11>2014 19:33 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 E:\FR\FM\14JYN1.SGM 14JYN1](https://thefederalregister.org/doc/81_FR_45713/page/2.svg)
![45580 Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Notices
and Exchange Commission, 100 F Street SECURITIES AND EXCHANGE and basis for, the proposed rule change
NE., Washington, DC 20549–1090. COMMISSION and discussed any comments it received
on the proposed rule change. The text
All submissions should refer to File [Release No. 34–78263; File No. SR–NYSE–
of those statements may be examined at
Number SR–MIAX–2016–19. This file 2016–44]
the places specified in Item IV below.
number should be included on the The Exchange has prepared summaries,
subject line if email is used. To help the Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of set forth in sections A, B, and C below,
Commission process and review your of the most significant parts of such
Filing of Proposed Rule Change
comments more efficiently, please use statements.
Allowing the Exchange To Trade
only one method. The Commission will Pursuant to Unlisted Trading
post all comments on the Commission’s A. Self-Regulatory Organization’s
Privileges for Any NMS Stock Listed Statement of the Purpose of, and the
Internet Web site (http://www.sec.gov/ on Another National Securities
rules/sro.shtml). Copies of the Statutory Basis for, the Proposed Rule
Exchange; Establishing Listing and Change
submission, all subsequent Trading Requirements for Exchange
amendments, all written statements Traded Products; and Adopting New 1. Purpose
with respect to the proposed rule Equity Trading Rules Relating to The Exchange is proposing new rules
change that are filed with the Trading Halts of Securities Traded to trade all Tape B and Tape C symbols,
Commission, and all written Pursuant to UTP on the Pillar Platform on a UTP basis, on its new trading
communications relating to the platform, Pillar.5 The Exchange does not
proposed rule change between the July 8, 2016.
currently trade any securities on a UTP
Commission and any person, other than Pursuant to Section 19(b)(1) 1 of the basis.
those that may be withheld from the Securities Exchange Act of 1934 (the In addition, the Exchange is
public in accordance with the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 proposing rules for the listing and
provisions of 5 U.S.C. 552, will be notice is hereby given that, on June 30, trading of the following types of
available for Web site viewing and 2016, New York Stock Exchange LLC Exchange Traded Products: 6
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with • Equity Linked Notes (‘‘ELNs’’);
printing in the Commission’s Public
the Securities and Exchange • Investment Company Units;
Reference Room, 100 F Street NE.,
Commission (the ‘‘Commission’’) the • Index-Linked Exchangeable Notes;
Washington, DC 20549, on official
business days between the hours of
proposed rule change as described in • Equity Gold Shares;
Items I, II, and III below, which Items • Equity Index-Linked Securities;
10:00 a.m. and 3:00 p.m. Copies of the have been prepared by the self- • Commodity-Linked Securities;
filing also will be available for regulatory organization. The • Currency-Linked Securities;
inspection and copying at the principal Commission is publishing this notice to • Fixed-Income Index-Linked
office of the Exchange. All comments solicit comments on the proposed rule Securities;
received will be posted without change; change from interested persons. • Futures-Linked Securities;
the Commission does not edit personal • Multifactor-Index-Linked
identifying information from I. Self-Regulatory Organization’s
Securities;
Statement of the Terms of Substance of
submissions. You should submit only • Trust Certificates;
the Proposed Rule Change
information that you wish to make • Currency and Index Warrants;
available publicly. All submissions The Exchange proposes to (1) allow • Portfolio Depositary Receipts;
should refer to File Number SR–MIAX– the Exchange to trade pursuant to • Trust Issued Receipts;
2016–19 and should be submitted on unlisted trading privileges (‘‘UTP’’) for • Commodity-Based Trust Shares;
orbefore August 4, 2016. any NMS Stock 4 listed on another • Currency Trust Shares;
national securities exchange; (2) • Commodity Index Trust Shares;
For the Commission, by the Division of establish listing and trading • Commodity Futures Trust Shares;
Trading and Markets, pursuant to delegated
requirements for exchange traded • Partnership Units;
authority.15
products (‘‘ETPs’’); and (3) adopt new • Paired Trust Shares;
Jill M. Peterson, equity trading rules relating to trading • Trust Units;
Assistant Secretary. halts of securities traded pursuant to • Managed Fund Shares; and
[FR Doc. 2016–16616 Filed 7–13–16; 8:45 am] UTP on the Pillar platform. The • Managed Trust Securities.
proposed rule change is available on the The Exchange’s proposed rules for
BILLING CODE 8011–01–P
Exchange’s Web site at www.nyse.com, these products are substantially
at the principal office of the Exchange, identical (other than with respects[sic]
and at the Commission’s Public
5 On January 29, 2015, the Exchange announced
Reference Room. the implementation of Pillar, which is an integrated
II. Self-Regulatory Organization’s trading technology platform designed to use a single
specification for connecting to the equities and
Statement of the Purpose of, and options markets operated by the Exchange and its
Statutory Basis for, the Proposed Rule affiliates, NYSE Arca, Inc. (‘‘NYSE Arca’’) and
Change NYSE MKT LLC (‘‘NYSE MKT’’). See Trader Update
dated January 29, 2015, available here: http://
asabaliauskas on DSK3SPTVN1PROD with NOTICES
In its filing with the Commission, the www1.nyse.com/pdfs/Pillar_Trader_Update_Jan_
self-regulatory organization included 2015.pdf.
6 The Exchange is proposing to define the term
statements concerning the purpose of,
‘‘Exchange Traded Product’’ to mean a security that
1 15
meets the definition of ‘‘derivative securities
U.S.C.78s(b)(1). product’’ in Rule 19b–4(e) under the Securities
2 15
U.S.C. 78a. Exchange Act of 1934. See proposed Rule 1.1(bbb).
3 17 CFR 240.19b–4.
This proposed definition is identical to the
4 NMS Stock is defined in Rule 600 of Regulation definition of ‘‘Derivatives Securities Product’’ in
15 17 CFR 200.30–3(a)(12). NMS, 17 CFR 242.600(b)(47). NYSE Arca Equities Rule 1.1(bbb).
VerDate Sep<11>2014 19:33 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 E:\FR\FM\14JYN1.SGM 14JYN1](https://thefederalregister.org/doc/81_FR_45713/page/3.svg)
Document Created: 2016-07-14 01:54:47
Document Modified: 2016-07-14 01:54:47
| 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 45578 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR