81 FR 48860 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Withdrawal of Proposed Rule Change Amending the Definition of “Block” for Purposes of Rule 72(d)-Equities and the Size of a Proposed Cross Transaction Eligible for the Cross Function in Rule 76-Equities

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 143 (July 26, 2016)

Page Range		48860-48861
FR Document		2016-17573

Federal Register, Volume 81 Issue 143 (Tuesday, July 26, 2016)

[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Notices]
[Pages 48860-48861]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17573]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78367; File No. SR-NYSEMKT-2016-49]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Withdrawal 
of Proposed Rule Change Amending the Definition of ``Block'' for 
Purposes of Rule 72(d)--Equities and the Size of a Proposed Cross 
Transaction Eligible for the Cross Function in Rule 76--Equities

July 20, 2016.
    On April 22, 2016, NYSE MKT LLC (``Exchange'' or ``NYSE MKT'') 
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. The proposed rule change was published for comment in the 
Federal Register on May 3, 2016.\3\ The Commission received no comments 
on the proposed rule change. On May 31, 2016, pursuant to Section 
19(b)(2) of the Act,\4\ the Commission designated a longer period 
within which to approve the proposed rule change, disapprove the 
proposed rule change, or institute proceedings to determine whether to 
disapprove the proposed rule change.\5\

[[Page 48861]]

On July 18, 2016, the Exchange withdrew the proposed rule change (File 
No. SR-NYSEMKT-2016-49).
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 77734 (Apr. 27, 
2016), 81 FR 26598.
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 77951, 81 FR 36367 
(June 6, 2016). The Commission designated August 1, 2016, as the 
date by which it should approve, disapprove, or institute 
proceedings to determine whether to disapprove the proposed rule 
change.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17573 Filed 7-25-16; 8:45 am]
BILLING CODE 8011-01-P

48860 Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices

the proposed rule change is consistent comments from members or other business days between the hours of
with Section 6(b)(4) of the Act,13 in that interested parties. 10:00 a.m. and 3:00 p.m. Copies of the
it provides for the equitable allocation filing also will be available for
III. Date of Effectiveness of the
of reasonable dues, fees and other inspection and copying at the principal
Proposed Rule Change and Timing for
charges among Members and other office of the Exchange. All comments
Commission Action
persons using any facility or system received will be posted without change;
which the Exchange operates or The foregoing rule change has become the Commission does not edit personal
controls. The Exchange notes that it effective pursuant to Section 19(b)(3)(A) identifying information from
operates in a highly competitive market of the Act 14 and paragraph (f) of Rule submissions. You should submit only
in which market participants can 19b–4 thereunder.15 At any time within information that you wish to make
readily direct order flow to competing 60 days of the filing of the proposed rule available publicly. All submissions
venues or providers of routing services change, the Commission summarily may should refer to File No. SR–BatsEDGX–
if they deem fee levels to be excessive. temporarily suspend such rule change if 2016–32, and should be submitted on or
The Exchange believes the proposed it appears to the Commission that such before August 16, 2016.
rebate is equitable and not unfairly action is necessary or appropriate in the For the Commission, by the Division of
discriminatory because it would be public interest, for the protection of Trading and Markets, pursuant to delegated
equally available and objectively investors, or otherwise in furtherance of authority.16
applied to all Members orders submitted the purposes of the Act. Robert W. Errett,
and executed in response to SUM IV. Solicitation of Comments Deputy Secretary.
auctions on the Exchange. The [FR Doc. 2016–17582 Filed 7–25–16; 8:45 am]
Interested persons are invited to
Exchange further believes the proposed BILLING CODE 8011–01–P
submit written data, views, and
rebate is equitable and reasonable as it
arguments concerning the foregoing,
is an additional rebate per contract
including whether the proposed rule SECURITIES AND EXCHANGE
designed to encourage Members to enter
change is consistent with the Act. COMMISSION
orders in response to SUM auctions on
Comments may be submitted by any of
the Exchange. The Exchange further [Release No. 34–78367; File No. SR–
the following methods:
believes that the rebate is reasonable NYSEMKT–2016–49]
because the proposed additional rebate Electronic Comments
per contract does not represent a • Use the Commission’s Internet Self-Regulatory Organizations; NYSE
significant departure from pricing comment form (http://www.sec.gov/ MKT LLC; Notice of Withdrawal of
previously offered by the Exchange or rules/sro.shtml); or Proposed Rule Change Amending the
other options exchanges. Lastly, the • Send an email to rule-comments@ Definition of ‘‘Block’’ for Purposes of
Exchange believes the proposed rebate sec.gov. Please include File No. SR– Rule 72(d)—Equities and the Size of a
is not unfairly discriminatory as all BatsEDGX–2016–32 on the subject line. Proposed Cross Transaction Eligible
Members may enter orders in response for the Cross Function in Rule 76—
to a SUM auction and receive the Paper Comments Equities
proposed rebate if their order is • Send paper comments in triplicate July 20, 2016.
executed. to Secretary, Securities and Exchange
On April 22, 2016, NYSE MKT LLC
B. Self-Regulatory Organization’s Commission, 100 F Street NE.,
(‘‘Exchange’’ or ‘‘NYSE MKT’’) filed
Statement on Burden on Competition Washington, DC 20549–1090. with the Securities and Exchange
All submissions should refer to File No. Commission (‘‘Commission’’), pursuant
The Exchange believes the proposed SR–BatsEDGX–2016–32. This file to Section 19(b)(1) of the Securities
rebate would not impose any burden on number should be included on the Exchange Act of 1934 (‘‘Act’’) 1 and Rule
competition that is not necessary or subject line if email is used. To help the 19b–4 thereunder,2 a proposed rule
appropriate in furtherance of the Commission process and review your change to amend its rules relating to
purposes of the Act. The Exchange does comments more efficiently, please use pre-opening indications and opening
not believe that the proposed rebate only one method. The Commission will procedures. The proposed rule change
represents a significant departure from post all comments on the Commission’s was published for comment in the
previous pricing offered by the Internet Web site (http://www.sec.gov/ Federal Register on May 3, 2016.3 The
Exchange or pricing offered by the rules/sro.shtml). Copies of the Commission received no comments on
Exchange’s competitors. Rather, the submission, all subsequent the proposed rule change. On May 31,
Exchange believes the proposal will amendments, all written statements 2016, pursuant to Section 19(b)(2) of the
enhance competition as it is a with respect to the proposed rule Act,4 the Commission designated a
competitive proposal that seeks to change that are filed with the longer period within which to approve
further the growth of the Exchange by Commission, and all written the proposed rule change, disapprove
encouraging Members to enter orders in communications relating to the the proposed rule change, or institute
response to SUM auctions. proposed rule change between the proceedings to determine whether to
C. Self-Regulatory Organization’s Commission and any person, other than disapprove the proposed rule change.5
Statement on Comments on the those that may be withheld from the
Proposed Rule Change Received From public in accordance with the 16 17 CFR 200.30–3(a)(12).
srobinson on DSK5SPTVN1PROD with NOTICES

Members, Participants, or Others provisions of 5 U.S.C. 552, will be 1 15 U.S.C. 78s(b)(1).
available for Web site viewing and 2 17 CFR 240.19b–4.

The Exchange has not solicited, and printing in the Commission’s Public 3 See Securities Exchange Act Release No. 77734

does not intend to solicit, comments on Reference Room, 100 F Street NE., (Apr. 27, 2016), 81 FR 26598.
4 15 U.S.C. 78s(b)(2).
this proposed rule change. The Washington, DC 20549, on official 5 See Securities Exchange Act Release No. 77951,
Exchange has not received any written
81 FR 36367 (June 6, 2016). The Commission
14 15 U.S.C. 78s(b)(3)(A). designated August 1, 2016, as the date by which it
13 15 U.S.C. 78f(b)(4). 15 17 CFR 240.19b–4(f). should approve, disapprove, or institute

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Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices 48861

On July 18, 2016, the Exchange II. Self-Regulatory Organization’s Background
withdrew the proposed rule change Statement of the Purpose of, and In 2007, the Exchange and FINRA 6
(File No. SR–NYSEMKT–2016–49). Statutory Basis for, the Proposed Rule entered into an agreement (the
For the Commission, by the Division of Change ‘‘Agreement’’) pursuant to Rule 17d–2
Trading and Markets, pursuant to delegated In its filing with the Commission, the under the Act to reduce regulatory
authority.6 self-regulatory organization included duplication by allocating to FINRA
Robert W. Errett, statements concerning the purpose of, certain regulatory responsibilities for
Deputy Secretary. and basis for, the proposed rule change NYSE rules and rule interpretations
[FR Doc. 2016–17573 Filed 7–25–16; 8:45 am] and discussed any comments it received (‘‘FINRA Incorporated NYSE Rules’’).7
BILLING CODE 8011–01–P on the proposed rule change. The text In order to reduce regulatory
of those statements may be examined at duplication and relieve firms that are
the places specified in Item IV below. members of the Exchange and FINRA of
SECURITIES AND EXCHANGE The Exchange has prepared summaries, conflicting or unnecessary regulatory
COMMISSION set forth in sections A, B, and C below, burdens, FINRA has been reviewing and
of the most significant parts of such amending the NASD and FINRA
[Release No. 34–78372; File No. SR–NYSE–
2016–50]
statements. Incorporated NYSE Rules in order to
create a consolidated FINRA rulebook.8
A. Self-Regulatory Organization’s
Self-Regulatory Organizations; New Statement of the Purpose of, and the Payment of Transaction-Based
York Stock Exchange LLC; Notice of Statutory Basis for, the Proposed Rule Compensation
Filing and Immediate Effectiveness of Change
Proposed Rule Change Amending Its As part of the rule consolidation
1. Purpose process, in 2014, FINRA adopted FINRA
Rules Regarding Payment of
Rule 2040 regarding payment of
Compensation and Rebates, and The Exchange proposes amending its
transaction-based compensation by
Research Analyst Attestation rules concerning (1) payment of
members to unregistered persons.9 The
Requirements, Harmonizing With compensation and rebates, and (2)
requirements of Incorporated NYSE
Certain Financial Industry Regulatory research analyst attestation
Rule 353 10 as well as Incorporated
Authority, Inc. Rules and Making Other requirements in order to harmonize
Conforming Changes with certain FINRA rules and make
‘‘member organization’’ for ‘‘member’’ and the term
other conforming changes. Specifically, ‘‘Exchange’’ for ‘‘FINRA.’’
July 20, 2016. the Exchange proposes to: 6 NYSE Regulation, Inc., a former not-for-profit
Pursuant to Section 19(b)(1) 1 of the • Delete Rule 353 (Rebates and subsidiary of the Exchange, was also a party to the
Securities Exchange Act of 1934 (the Compensation),4 NYSE Rule Agreement by virtue of the fact that it performed
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Interpretation 345(a)(i)/01 regulatory functions for the Exchange pursuant to
notice is hereby given that on July 12, a delegation agreement. See Securities Exchange
(Compensation to Non-Registered Act Release No. 53382 (February 27, 2006), 71 FR
2016, New York Stock Exchange LLC Persons), NYSE Rule Interpretation 11251, 11264–65 (March 6, 2006) (SR–NYSE–2005–
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 345(a)(i)/02 (Compensation Paid for 77) (approving delegation agreement). The
the Securities and Exchange delegation agreement terminated on February 16,
Advisory Solicitations), and NYSE Rule 2016, and NYSE Regulation has ceased providing
Commission (the ‘‘Commission’’) the Interpretation 345(a)(i)/03 regulatory services to the Exchange, which has re-
proposed rule change as described in (Compensation to Non-Registered integrated its regulatory functions.
Items I, II, and III below, which Items Foreign Persons Acting as Finders), 7 See Securities Exchange Act Release Nos. 56148

have been prepared by the self- adopt the text of FINRA Rule 2040 (July 26, 2007), 72 FR 42146 (August 1, 2007) (order
regulatory organization. The approving the Agreement); 56147 (July 26, 2007), 72
(Payments to Unregistered Persons) FR 42166 (August 1, 2007) (SR–NASD–2007–054)
Commission is publishing this notice to (including Supplementary Material .01) (order approving the incorporation of certain NYSE
solicit comments on the proposed rule and add new Supplementary Material Rules as ‘‘Common Rules’’). Paragraph 2(b) of the
change from interested persons. .02, and amend Rule 8311 (Effect of a Agreement sets forth procedures regarding
proposed changes by FINRA or the Exchange to the
I. Self-Regulatory Organization’s Suspension, Revocation, Cancellation, substance of any of the Common Rules.
Statement of the Terms of Substance of or Bar) (including adding 8 FINRA’s rulebook currently has three sets of

the Proposed Rule Change Supplementary Material .01) in order to rules: (1) NASD Rules, (2) FINRA Incorporated
harmonize its rules with FINRA’s rules NYSE Rules, and (3) consolidated FINRA Rules.
The Exchange proposes to amend its The FINRA Incorporated NYSE Rules apply only to
regarding the payment of transaction- those members of FINRA that are also members of
rules regarding (1) payment of based compensation by members to the NYSE (‘‘Dual Members’’), while the
compensation and rebates, and (2) unregistered persons; consolidated FINRA Rules apply to all FINRA
research analyst attestation • delete Rule 351 (Reporting members. For more information about the FINRA
requirements in order to harmonize Requirements) (including rulebook consolidation process, see FINRA
Information Notice, March 12, 2008.
with certain Financial Industry Supplementary Material .11 and .12) 9 See Securities Exchange Act Release Nos. 73210
Regulatory Authority, Inc. (‘‘FINRA’’) and amend Rules 472 (Communications (September 25, 2014), 79 FR 59322 (October 1,
rules and make other conforming With The Public) and 9217 (Violations 2014) (SR–FINRA–2014–037) (‘‘FINRA Notice’’) and
changes. The proposed rule change is Appropriate for Disposition Under Plan 73954 (December 30, 2014), 80 FR 553 (January 6,
2015) (SR–FINRA–2014–37) (‘‘FINRA Approval
available on the Exchange’s Web site at Pursuant to SEA Rule 19d–1(c)(2)) to Order’’).
www.nyse.com, at the principal office of harmonize with FINRA’s rules regarding 10 NYSE Rule 353(a) prohibits a member,
the Exchange, and at the Commission’s annual attestation requirements for principal executive, registered representative or
srobinson on DSK5SPTVN1PROD with NOTICES

Public Reference Room. research analysts; and officer from, directly or indirectly, rebating to any
• make certain technical and person any part of the compensation he receives
from the solicitation of orders for the purchase or
proceedings to determine whether to disapprove the conforming changes.5 sale of securities or other similar instruments for
proposed rule change.
6 17 CFR 200.30–3(a)(12).
the accounts of customers of the member, or pay
4 References to rules are to NYSE rules unless such compensation, or any part thereof, as a bonus,
1 15 U.S.C. 78s(b)(1).
otherwise indicated. commission, fee or other consideration for business
2 15 U.S.C. 78a. 5 As discussed below, the conforming changes the sought or procured for him or for any other
3 17 CFR 240.19b–4. Exchange proposes would substitute the term Continued

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Document Created: 2018-02-08 08:01:06
Document Modified: 2018-02-08 08:01:06

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 48860