81 FR 48876 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rules 1.1(s) and 7.35P(a)(10)(A) to Extend the Period for the Current Trading Halt Auction Collar Price Collar Thresholds

SECURITIES AND EXCHANGE COMMISSION

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

Page Range		48876-48878
FR Document		2016-17585

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

[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Notices]
[Pages 48876-48878]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-17585]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78374; File No. SR-NYSEARCA-2016-98]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rules 1.1(s) and 7.35P(a)(10)(A) to Extend the Period for the
Current Trading Halt Auction Collar Price Collar Thresholds

July 20, 2016.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on July 8, 2016, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the self-regulatory organization. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------

\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to amend NYSE Arca Equities Rules 1.1(s) and
7.35P(a)(10)(A) to extend the period for the current Trading Halt
Auction Collar price collar thresholds. The proposed rule change is
available on the

[[Page 48877]]

Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Exchange proposes to amend NYSE Arca Equities Rule 1.1(s)
(``Rule 1.1(s)'') and 7.35P(a)(10)(A) (``Rule 7.35P'') to extend the
period for the current Trading Halt price collar thresholds.
As specified in Rules 1.1(s) and 7.35P(a)(10)(A), the price collar
thresholds for Trading Halt Auctions are currently set at 10% for
securities with an Auction Reference Price \4\ of $25.00 or less, 5%
for securities with an Auction Reference Price greater than $25.00 but
less than or equal to $50.00, and 3% for securities with an Auction
Reference Price greater than $50.00.\5\ These price collar thresholds
were adopted on an interim basis and sunset on July 28, 2016.
---------------------------------------------------------------------------

\4\ As set forth in Rule 7.35P(a)(8)(A), the Auction Reference
Price for Trading Halt Auctions is the last consolidated round-lot
price of that trading day and, if none, the prior trading day's
Official Closing Price. As set forth in Rule 1.1(s), the auction
reference price is the last consolidated sale price.
\5\ Rule 7.35P governs trading for symbols transitioned to the
Pillar trading platform. Although all symbols are trading on the
Pillar trading platform, the [sic] the Exchange proposes to amend
Rule 1.1(s) so that Exchange rules that address the same topic are
harmonized.
---------------------------------------------------------------------------

When approving the current price collar thresholds for Trading Halt
Auctions, the Commission noted that they were appropriate as an interim
measure to protect investors and the public interest.\6\ The Exchange
committed to use the period while the interim price collar thresholds
are in place to conduct an analysis to determine whether to make the
proposed price collar thresholds permanent or to propose other or
additional changes to its re-opening process. Since that time, under
the auspices of the Operating Committee of the Regulation NMS Plan to
Address Extraordinary Market Volatility (``LULD Plan''), and with input
from the Advisory Committee to the LULD Plan, the Exchange has begun
working with other primary listing markets and participants to the LULD
Plan to identify proposed changes to the resumption of trading
following a trading pause that could be applied across all automated
markets. This initiative has superseded the Exchange's prior analysis
relating to the resumption of trading following a trading pause.
---------------------------------------------------------------------------

\6\ See Securities Exchange Act Release Nos. 76994 (Jan. 28,
2016), 81 FR 5809 (Feb. 3, 2016) (SR-NYSEArca-2015-121) (Approval
Order) and 77140 (Feb. 16, 2016), 81 FR 8812 (SR-NYSEArca-2016-27)
(Notice of Filing).
---------------------------------------------------------------------------

Because the analysis associated with market-wide initiative is not
expected to be completed by July 28, 2016, the Exchange proposes to
extend the time for its interim price collar thresholds for Trading
Halt Auctions from July 28, 2016 to January 31, 2017. The Exchange
believes that extending the existing interim measures an additional six
months will provide time for the participants to the LULD Plan to
complete their analysis relating to the resumption of trading following
a trading pause, while at the same time maintaining the current
protections for Trading Halt Auctions. This extension of the time
period will also provide additional time for the Exchange and other
participants to the LULD Plan to amend their respective rules or the
LULD Plan, as appropriate.
The Exchange continues to believe that it is appropriate to have
protections in place for Trading Halt Auctions to assure that a
reopening trade will not deviate significantly from prior prices, even
taking into consideration natural price movements for a security. The
Exchange believes that it is appropriate to maintain price collar
thresholds for Trading Halt Auctions based on the clearly erroneous
execution guidelines because an auction trade is subject to these
guidelines for purposes of determining whether such execution is
clearly erroneous. In addition, the Exchange's interim price collar
thresholds are similar to how BATS BZX Exchange, Inc. (``BATS'') prices
its Halt Auctions for ETPs. Like BATS, the Exchange is the primary
listing market only for ETPs and would, therefore only have Trading
Halt Auctions for ETPs. BATS Rule 11.23(d)(2)(D) provides that BATS
executes orders in ETPs in a Halt auction at a price level within a
``Collar Price Range'' that maximizes the number of shares executed in
the auction. Similar to the Exchange's rule, BATS uses Collar Price
Ranges that are based on the numerical guidelines set forth in the
market-wide clearly erroneous execution rules.\7\ The Exchange's
Auction Collars differ from BATS's pricing mechanism because the
Exchange would use the consolidated last sale price as the reference
price, rather than the midpoint of a ``Valid NBBO.'' The Exchange
believes that using the consolidated last sale price tracks the market-
wide clearly erroneous execution rules, which similarly use the
consolidated last sale price for determining whether an execution is
clearly erroneous.
---------------------------------------------------------------------------

\7\ As set forth in BATS Rule 11.23(a)(6), the Collar Price
Range is 10% for securities with a Collar Midpoint of $25.00 or
less, 5% for securities with a Collar Midpoint greater than $25.00
but less than or equal to $50.00, and 3% for securities with a
Collar Midpoint greater than $50.00. BATS Rule 11.23(a)(6) defines
the Collar Midpoint as the Volume Based Tie Breaker, which is
defined in BATS Rule 11.23(a)(23) as the midpoint of the NBBO if it
is a Valid NBBO, with a Valid NBBO defined as where: (i) There is
both a NBB and NBO for the security; (ii) the NBBO is not crossed;
and (iii) the midpoint of the NBBO is less than the Maximum
Percentage away from both the NBB and the NBO.
---------------------------------------------------------------------------

2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\8\ in general, and
furthers the objectives of Section 6(b)(5),\9\ in particular, because
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
mechanism 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 interim period for the
current Trading Halt Auction price collar thresholds would remove
impediments to and perfect the mechanism of a fair and orderly market
by providing for Auctions Collars at the Exchange pending the ongoing
analysis by the participants to the LULD Plan to identify a market-wide
solution to automated reopenings following a trading pause. For the
extended interim basis, the price collar thresholds would continue to
be aligned with the clearly erroneous execution guidelines and
therefore continuing with these price collar thresholds would reduce
the

[[Page 48878]]

potential for a Trading Halt Auction to be a clearly erroneous
execution. In addition, the Exchange believes that pending the outcome
of the analysis being performed by the Operating Committee to the LULD
Plan, extending the Exchange's interim measure an additional six months
would be consistent with the protection of investors and the public
interest.

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 change is not
designed to address any competitive issue but rather to provide for a
six-month extension to the price collar thresholds for Trading Halt
Auctions on the Exchange, pending the analysis being conducted by the
Operating Committee to the LULD Plan.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

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, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\10\ and Rule 19b-4(f)(6) 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 a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and the text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \12\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \13\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest. As
the Exchange notes, waiver of the operative delay would allow for the
current price collar thresholds, which are due to expire on July 28,
2016, to continue uninterrupted pending the ongoing market-wide
analysis regarding potential changes to automated reopenings following
a trading pause. Accordingly, the Commission hereby waives the
operative delay and designates the proposal operative upon filing.\14\
---------------------------------------------------------------------------

\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 change 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 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-NYSEARCA-2016-98 on the subject line.

Paper Comments

Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEARCA-2016-98. 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-NYSEARCA-2016-98 and should
be submitted on or before August 16, 2016.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17585 Filed 7-25-16; 8:45 am]
BILLING CODE 8011-01-P

48876 Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices

Advised Fund, subject to the class or classes of persons, securities, or 31, 2016, pursuant to Section 19(b)(2) of
supervision and direction of the transactions from any provisions of the the Act,4 the Commission designated a
Adviser.2 The primary responsibility for Act, or any rule thereunder, if such longer period within which to approve
managing the Sub-Advised Fund will relief is necessary or appropriate in the the proposed rule change, disapprove
remain vested in the Adviser. The public interest and consistent with the the proposed rule change, or institute
Adviser will hire, evaluate, allocate protection of investors and purposes proceedings to determine whether to
assets to and oversee the Sub-Advisers, fairly intended by the policy and disapprove the proposed rule change.5
including determining whether a Sub- provisions of the Act. Applicants On July 18, 2016, the Exchange
Adviser should be terminated, at all believe that the requested relief meets withdrew the proposed rule change
times subject to the authority of the this standard because, as further (File No. SR–NYSE–2016–30).
Board. explained in the Application, the For the Commission, by the Division of
2. Applicants request an exemption to Investment Management Agreements Trading and Markets, pursuant to delegated
permit the Adviser, subject to Board will remain subject to shareholder authority.6
approval, to hire a Non-Affiliated Sub- approval, while the role of the Sub- Robert W. Errett,
Adviser or a Wholly-Owned Sub- Advisers is substantially equivalent to Deputy Secretary.
Adviser, pursuant to Sub-Advisory that of individual portfolio managers, so
[FR Doc. 2016–17580 Filed 7–25–16; 8:45 am]
Agreements and materially amend Sub- that requiring shareholder approval of
BILLING CODE 8011–01–P
Advisory Agreements with Non- Sub-Advisory Agreements would
Affiliated Sub-Advisers and Wholly- impose unnecessary delays and
Owned Sub-Advisers without obtaining expenses on the Sub-Advised Fund. SECURITIES AND EXCHANGE
the shareholder approval required under Applicants believe that the requested COMMISSION
section 15(a) of the Act and rule 18f–2 relief from the Disclosure Requirements
under the Act.3 Applicants also seek an meets this standard because it will [Release No. 34–78374; File No. SR–
improve the Adviser’s ability to NYSEARCA–2016–98]
exemption from the Disclosure
Requirements to permit a Sub-Advised negotiate fees paid to the Sub-Advisers
that are more advantageous for the Sub- Self-Regulatory Organizations; NYSE
Fund to disclose (as both a dollar Arca, Inc.; Notice of Filing and
amount and a percentage of the Sub- Advised Fund.
Immediate Effectiveness of Proposed
Advised Fund’s net assets): (a) The For the Commission, by the Division of Rule Change Amending NYSE Arca
aggregate fees paid to the Adviser and Investment Management, under delegated
Equities Rules 1.1(s) and
any Wholly-Owned Sub-Advisers; (b) authority.
7.35P(a)(10)(A) to Extend the Period for
the aggregate fees paid to Non-Affiliated Robert W. Errett,
the Current Trading Halt Auction Collar
Sub-Advisers, and (c) the fee paid to Deputy Secretary. Price Collar Thresholds
each Affiliated Sub-Adviser. [FR Doc. 2016–17607 Filed 7–25–16; 8:45 am]
3. Applicants agree that any order BILLING CODE 8011–01–P July 20, 2016.
granting the requested relief will be Pursuant to Section 19(b)(1) 1 of the
subject to the terms and conditions Securities Exchange Act of 1934
stated in the Application. Such terms SECURITIES AND EXCHANGE (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
and conditions provide for, among other COMMISSION notice is hereby given that, on July 8,
safeguards, appropriate disclosure to 2016, NYSE Arca, Inc. (‘‘Exchange’’ or
[Release No. 34–78368; File No. SR–NYSE–
Sub-Advised Funds’ shareholders and 2016–30] ‘‘NYSE Arca’’) filed with the Securities
notification about sub-advisory changes and Exchange Commission
and enhanced Board oversight to protect Self-Regulatory Organizations; New (‘‘Commission’’) the proposed rule
the interests of the Subadvised Funds’ York Stock Exchange LLC; Notice of change as described in Items I and II
shareholders. Withdrawal of Proposed Rule Change below, which Items have been prepared
4. Section 6(c) of the Act provides that Amending the Definition of ‘‘Block’’ for by the self-regulatory organization. The
the Commission may exempt any Purposes of Rule 72(d) and the Size of Commission is publishing this notice to
person, security, or transaction or any a Proposed Cross Transaction Eligible solicit comments on the proposed rule
for the Cross Function in Rule 76 change from interested persons.
2 A ‘‘Sub-Adviser’’ for a Fund is (1) an indirect

or direct ‘‘wholly owned subsidiary’’ (as such term July 20, 2016. I. Self-Regulatory Organization’s
is defined in the Act) of the Adviser for the Fund, On April 12, 2016, New York Stock Statement of the Terms of Substance of
or (2) a sister company of the Adviser for the Fund
Exchange LLC (‘‘Exchange’’ or ‘‘NYSE’’) the Proposed Rule Change
that is an indirect or direct ‘‘wholly-owned
subsidiary’’ (as such term is defined in the Act) of filed with the Securities and Exchange The Exchange proposes to amend
the same company that, indirectly or directly, Commission (‘‘Commission’’), pursuant NYSE Arca Equities Rules 1.1(s) and
wholly owns the Adviser (each of (1) and (2) a to Section 19(b)(1) of the Securities 7.35P(a)(10)(A) to extend the period for
‘‘Wholly-Owned Sub Adviser’’ and collectively, the
‘‘Wholly-Owned Sub-Advisers’’), or (3) an
Exchange Act of 1934 (‘‘Act’’) 1 and Rule the current Trading Halt Auction Collar
investment sub-adviser for that Fund that is not an 19b–4 thereunder,2 a proposed rule price collar thresholds. The proposed
‘‘affiliated person’’ (as such term is defined in change to amend its rules relating to rule change is available on the
Section 2(a)(3) of the Act) of the Fund or the pre-opening indications and opening
Adviser, except to the extent that an affiliation
arises solely because the sub-adviser serves as a
procedures. The proposed rule change 4 15 U.S.C. 78s(b)(2).
sub-adviser to one or more Funds (each a ‘‘Non- was published for comment in the 5 See Securities Exchange Act Release No. 77950,
srobinson on DSK5SPTVN1PROD with NOTICES

Affiliated Sub-Adviser’’ and collectively, the ‘‘Non- Federal Register on April 29, 2016.3 81 FR 36357 (June 6, 2016). The Commission
Affiliated Sub-Advisers’’). designated July 28, 2016, as the date by which it
The Commission received no comments should approve, disapprove, or institute
3 The requested relief will not extend to any sub-
on the proposed rule change. On May proceedings to determine whether to disapprove the
adviser, other than a Wholly-Owned Sub-Adviser,
proposed rule change.
who is an affiliated person, as defined in section 6 17 CFR 200.30–3(a)(12).
1 15
U.S.C. 78s(b)(1).
2(a)(3) of the Act, of the Sub-Advised Fund or the
2 17 1 15 U.S.C. 78s(b)(1).
Adviser, other than by reason of serving as a sub- CFR 240.19b–4.
2 15 U.S.C. 78a.
adviser to one or more of the Sub-Advised Funds 3 See Securities Exchange Act Release No. 77701

(‘‘Affiliated Sub-Adviser’’). (Apr. 25, 2016), 81 FR 25748. 3 17 CFR 240.19b–4.

VerDate Sep<11>2014 20:28 Jul 25, 2016 Jkt 238001 PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 E:\FR\FM\26JYN1.SGM 26JYN1

Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices 48877

Exchange’s Web site at www.nyse.com, interim price collar thresholds are in number of shares executed in the
at the principal office of the Exchange, place to conduct an analysis to auction. Similar to the Exchange’s rule,
and at the Commission’s Public determine whether to make the BATS uses Collar Price Ranges that are
Reference Room. proposed price collar thresholds based on the numerical guidelines set
permanent or to propose other or forth in the market-wide clearly
II. Self-Regulatory Organization’s additional changes to its re-opening erroneous execution rules.7 The
Statement of the Purpose of, and process. Since that time, under the Exchange’s Auction Collars differ from
Statutory Basis for, the Proposed Rule auspices of the Operating Committee of BATS’s pricing mechanism because the
Change the Regulation NMS Plan to Address Exchange would use the consolidated
In its filing with the Commission, the Extraordinary Market Volatility (‘‘LULD last sale price as the reference price,
self-regulatory organization included Plan’’), and with input from the rather than the midpoint of a ‘‘Valid
statements concerning the purpose of, Advisory Committee to the LULD Plan, NBBO.’’ The Exchange believes that
and basis for, the proposed rule change the Exchange has begun working with using the consolidated last sale price
and discussed any comments it received other primary listing markets and tracks the market-wide clearly
on the proposed rule change. The text participants to the LULD Plan to erroneous execution rules, which
of those statements may be examined at identify proposed changes to the similarly use the consolidated last sale
the places specified in Item IV below. resumption of trading following a price for determining whether an
The Exchange has prepared summaries, trading pause that could be applied execution is clearly erroneous.
set forth in sections A, B, and C below, across all automated markets. This
2. Statutory Basis
of the most significant parts of such initiative has superseded the Exchange’s
statements. prior analysis relating to the resumption The proposed rule change is
of trading following a trading pause. consistent with Section 6(b) of the
A. Self-Regulatory Organization’s Because the analysis associated with Securities Exchange Act of 1934 (the
Statement of the Purpose of, and the market-wide initiative is not expected to ‘‘Act’’),8 in general, and furthers the
Statutory Basis for, the Proposed Rule be completed by July 28, 2016, the objectives of Section 6(b)(5),9 in
Change Exchange proposes to extend the time particular, because it is designed to
1. Purpose for its interim price collar thresholds for prevent fraudulent and manipulative
Trading Halt Auctions from July 28, acts and practices, to promote just and
The Exchange proposes to amend 2016 to January 31, 2017. The Exchange equitable principles of trade, to foster
NYSE Arca Equities Rule 1.1(s) (‘‘Rule believes that extending the existing cooperation and coordination with
1.1(s)’’) and 7.35P(a)(10)(A) (‘‘Rule interim measures an additional six persons engaged in facilitating
7.35P’’) to extend the period for the months will provide time for the transactions in securities, to remove
current Trading Halt price collar participants to the LULD Plan to impediments to, and perfect the
thresholds. complete their analysis relating to the mechanism of, a free and open market
As specified in Rules 1.1(s) and resumption of trading following a and a national market system and, in
7.35P(a)(10)(A), the price collar trading pause, while at the same time general, to protect investors and the
thresholds for Trading Halt Auctions are maintaining the current protections for public interest.
currently set at 10% for securities with Trading Halt Auctions. This extension The Exchange believes that extending
an Auction Reference Price 4 of $25.00 of the time period will also provide the interim period for the current
or less, 5% for securities with an additional time for the Exchange and Trading Halt Auction price collar
Auction Reference Price greater than other participants to the LULD Plan to thresholds would remove impediments
$25.00 but less than or equal to $50.00, amend their respective rules or the to and perfect the mechanism of a fair
and 3% for securities with an Auction LULD Plan, as appropriate. and orderly market by providing for
Reference Price greater than $50.00.5 The Exchange continues to believe Auctions Collars at the Exchange
These price collar thresholds were that it is appropriate to have protections pending the ongoing analysis by the
adopted on an interim basis and sunset in place for Trading Halt Auctions to participants to the LULD Plan to
on July 28, 2016. assure that a reopening trade will not identify a market-wide solution to
When approving the current price deviate significantly from prior prices, automated reopenings following a
collar thresholds for Trading Halt even taking into consideration natural trading pause. For the extended interim
Auctions, the Commission noted that price movements for a security. The basis, the price collar thresholds would
they were appropriate as an interim Exchange believes that it is appropriate continue to be aligned with the clearly
measure to protect investors and the to maintain price collar thresholds for erroneous execution guidelines and
public interest.6 The Exchange Trading Halt Auctions based on the therefore continuing with these price
committed to use the period while the clearly erroneous execution guidelines collar thresholds would reduce the
because an auction trade is subject to
4 As set forth in Rule 7.35P(a)(8)(A), the Auction
these guidelines for purposes of 7 As set forth in BATS Rule 11.23(a)(6), the Collar

Reference Price for Trading Halt Auctions is the last determining whether such execution is Price Range is 10% for securities with a Collar
consolidated round-lot price of that trading day Midpoint of $25.00 or less, 5% for securities with
and, if none, the prior trading day’s Official Closing clearly erroneous. In addition, the a Collar Midpoint greater than $25.00 but less than
Price. As set forth in Rule 1.1(s), the auction Exchange’s interim price collar or equal to $50.00, and 3% for securities with a
reference price is the last consolidated sale price. thresholds are similar to how BATS Collar Midpoint greater than $50.00. BATS Rule
5 Rule 7.35P governs trading for symbols
BZX Exchange, Inc. (‘‘BATS’’) prices its 11.23(a)(6) defines the Collar Midpoint as the
transitioned to the Pillar trading platform. Although Volume Based Tie Breaker, which is defined in
Halt Auctions for ETPs. Like BATS, the
srobinson on DSK5SPTVN1PROD with NOTICES

all symbols are trading on the Pillar trading BATS Rule 11.23(a)(23) as the midpoint of the
platform, the [sic] the Exchange proposes to amend Exchange is the primary listing market NBBO if it is a Valid NBBO, with a Valid NBBO
Rule 1.1(s) so that Exchange rules that address the only for ETPs and would, therefore only defined as where: (i) There is both a NBB and NBO
same topic are harmonized. have Trading Halt Auctions for ETPs. for the security; (ii) the NBBO is not crossed; and
6 See Securities Exchange Act Release Nos. 76994 (iii) the midpoint of the NBBO is less than the
BATS Rule 11.23(d)(2)(D) provides that Maximum Percentage away from both the NBB and
(Jan. 28, 2016), 81 FR 5809 (Feb. 3, 2016) (SR–
NYSEArca–2015–121) (Approval Order) and 77140
BATS executes orders in ETPs in a Halt the NBO.
(Feb. 16, 2016), 81 FR 8812 (SR–NYSEArca–2016– auction at a price level within a ‘‘Collar 8 15 U.S.C. 78f(b).

27) (Notice of Filing). Price Range’’ that maximizes the 9 15 U.S.C. 78f(b)(5).

VerDate Sep<11>2014 20:28 Jul 25, 2016 Jkt 238001 PO 00000 Frm 00142 Fmt 4703 Sfmt 4703 E:\FR\FM\26JYN1.SGM 26JYN1

48878 Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices

potential for a Trading Halt Auction to the Commission to waive the 30-day post all comments on the Commission’s
be a clearly erroneous execution. In operative delay so that the proposal may Internet Web site (http://www.sec.gov/
addition, the Exchange believes that become operative immediately upon rules/sro.shtml). Copies of the
pending the outcome of the analysis filing. The Commission believes that submission, all subsequent
being performed by the Operating waiving the 30-day operative delay is amendments, all written statements
Committee to the LULD Plan, extending consistent with the protection of with respect to the proposed rule
the Exchange’s interim measure an investors and the public interest. As the change that are filed with the
additional six months would be Exchange notes, waiver of the operative Commission, and all written
consistent with the protection of delay would allow for the current price communications relating to the
investors and the public interest. collar thresholds, which are due to proposed rule change between the
expire on July 28, 2016, to continue Commission and any person, other than
B. Self-Regulatory Organization’s
uninterrupted pending the ongoing those that may be withheld from the
Statement on Burden on Competition
market-wide analysis regarding public in accordance with the
The Exchange does not believe that potential changes to automated provisions of 5 U.S.C. 552, will be
the proposed rule change will impose reopenings following a trading pause. available for Web site viewing and
any burden on competition that is not Accordingly, the Commission hereby printing in the Commission’s Public
necessary or appropriate in furtherance waives the operative delay and Reference Room, 100 F Street NE.,
of the purposes of the Act. The designates the proposal operative upon Washington, DC 20549 on official
proposed change is not designed to filing.14 business days between the hours of
address any competitive issue but rather At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
to provide for a six-month extension to filing of the proposed rule change, the filing also will be available for
the price collar thresholds for Trading Commission summarily may inspection and copying at the principal
Halt Auctions on the Exchange, pending temporarily suspend such rule change if office of the Exchange. All comments
the analysis being conducted by the it appears to the Commission that such received will be posted without change;
Operating Committee to the LULD Plan. action is necessary or appropriate in the the Commission does not edit personal
C. Self-Regulatory Organization’s public interest, for the protection of identifying information from
Statement on Comments on the investors, or otherwise in furtherance of submissions. You should submit only
Proposed Rule Change Received From the purposes of the Act. If the information that you wish to make
Commission takes such action, the available publicly. All submissions
Members, Participants, or Others
Commission shall institute proceedings should refer to File Number SR–
No written comments were solicited to determine whether the proposed rule NYSEARCA–2016–98 and should be
or received with respect to the proposed change should be approved or submitted on or before August 16, 2016.
rule change. disapproved. For the Commission, by the Division of
III. Date of Effectiveness of the IV. Solicitation of Comments Trading and Markets, pursuant to delegated
Proposed Rule Change and Timing for authority.15
Interested persons are invited to Robert W. Errett,
Commission Action
submit written data, views, and
Because the foregoing proposed rule Deputy Secretary.
arguments concerning the foregoing,
change does not: (i) Significantly affect [FR Doc. 2016–17585 Filed 7–25–16; 8:45 am]
including whether the proposed rule
the protection of investors or the public change is consistent with the Act. BILLING CODE 8011–01–P
interest; (ii) impose any significant Comments may be submitted by any of
burden on competition; and (iii) become the following methods:
operative for 30 days from the date on SECURITIES AND EXCHANGE
which it was filed, or such shorter time Electronic Comments COMMISSION
as the Commission may designate, the • Use the Commission’s Internet Submission for OMB Review;
proposed rule change has become comment form (http://www.sec.gov/ Comment Request
effective pursuant to Section 19(b)(3)(A) rules/sro.shtml); or
of the Act 10 and Rule 19b–4(f)(6) • Send an email to rule-comments@ Upon Written Request Copies Available
thereunder.11 sec.gov. Please include File Number SR– From: Securities and Exchange
A proposed rule change filed NYSEARCA–2016–98 on the subject Commission, Office of FOIA Services,
pursuant to Rule 19b–4(f)(6) under the line. 100 F Street NE., Washington, DC
Act 12 normally does not become 20549–2736.
Paper Comments
operative for 30 days after the date of its Ombudsman Matter Management System,
filing. However, Rule 19b–4(f)(6)(iii) 13 • Send paper comments in triplicate OMB Control No. 3235–XXXX, SEC File
permits the Commission to designate a to Secretary, Securities and Exchange No. 270–797.
shorter time if such action is consistent Commission, 100 F Street NE.,
Washington, DC 20549–1090. Notice is hereby given that, pursuant
with the protection of investors and the to the Paperwork Reduction Act of 1995
public interest. The Exchange has asked All submissions should refer to File (44 U.S.C. 3501 et seq.), the Securities
Number SR–NYSEARCA–2016–98. This and Exchange Commission
10 15 U.S.C. 78s(b)(3)(A). file number should be included on the (‘‘Commission’’ or ‘‘SEC’’) has
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– subject line if email is used. To help the submitted this new request for the new
4(f)(6) requires a self-regulatory organization to give Commission process and review your
srobinson on DSK5SPTVN1PROD with NOTICES

the Commission written notice of its intent to file collection of information to the Office of
the proposed rule change, along with a brief comments more efficiently, please use Management and Budget for approval.
description and the text of the proposed rule only one method. The Commission will Members of the public who contact
change, at least five business days prior to the date the Ombudsman for assistance currently
of filing of the proposed rule change, or such 14 For purposes only of waiving the 30-day
shorter time as designated by the Commission. The do so by traditional mail, electronic
operative delay, the Commission has also
Exchange has satisfied this requirement. considered the proposed rule’s impact on mail, telephone, and facsimile. To make
12 17 CFR 240.19b–4(f)(6).
efficiency, competition, and capital formation. See
13 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 15 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 20:28 Jul 25, 2016 Jkt 238001 PO 00000 Frm 00143 Fmt 4703 Sfmt 4703 E:\FR\FM\26JYN1.SGM 26JYN1

Document Created: 2018-02-08 08:00:47
Document Modified: 2018-02-08 08:00:47

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 48876