81_FR_54306 81 FR 54149 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 123D Relating to When a DMM May Reopen a Security Electronically

81 FR 54149 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 123D Relating to When a DMM May Reopen a Security Electronically

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 157 (August 15, 2016)

Page Range54149-54152
FR Document2016-19317

Federal Register, Volume 81 Issue 157 (Monday, August 15, 2016)
[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)]
[Notices]
[Pages 54149-54152]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19317]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78512; File No. SR-NYSE-2016-53]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending Rule 123D Relating to When a DMM May Reopen a Security 
Electronically

August 9, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on July 28, 2016, New York Stock Exchange LLC (``NYSE'' or 
the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 123D relating to when a DMM may 
reopen a security electronically. The proposed rule change is available 
on the Exchange's Web site at www.nyse.com, at the principal office of 
the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Rule 123D relating to when a DMM may 
reopen a security electronically. The proposed rule changes would 
provide greater specificity regarding the applicable reference price 
for determining when a DMM may effect a reopening transaction 
electronically.
Background
    The Exchange recently amended Rule 123D to specify when DMMs may 
effect an opening of a security electronically.\4\ Rule 123D(a)(1)(B) 
provides that openings may be effectuated manually or electronically 
(as provided for in Rule 104(b)(ii)) and that Exchange systems will not 
permit a DMM to open a security electronically if a DMM has manually 
entered Floor interest. Rule 123D(a)(1)(B)(i) further provides that, 
except under the conditions set forth in paragraph (a)(1)(B)(ii) of 
Rule 123D, a DMM may not effect an opening electronically if the 
opening transaction will be at a price more than 4% away from the 
Official Closing Price, as defined in Rule 123C(1)(e), or the matched 
volume will be more than: (a) 150,000 shares for securities with an 
average opening volume of 100,000 shares or fewer in the previous 
calendar quarter; or (b) 500,000 shares for securities with an average 
opening volume of over 100,000 shares in the previous calendar quarter.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release Nos. 78228 (July 5, 
2016), 81 FR 44907(July 11, 2016) (SR-NYSE-2016-24) (Approval Order) 
and 77491 (March 31, 2016), 81 FR 20030 (April 6, 2016) (SR-NYSE-
2016-24) (Notice of Filing) (``Opening Filing'').
---------------------------------------------------------------------------

    Rule 123D(a)(1)(B)(ii) provides that if as of 9:00 a.m. Eastern 
Time, the E-mini S&P 500 Futures are  2% from the prior 
day's closing price of the E-mini S&P

[[Page 54150]]

500 Futures, or if the Exchange determines that it is necessary or 
appropriate for the maintenance of a fair and orderly market, a DMM may 
effect an opening electronically if the opening transaction will be at 
a price of up to 8% away from the Official Closing Price, as defined in 
Rule 123C(1)(e), without any volume limitations. The current rule is 
silent on the reference price for when a DMM may effect a reopening of 
a security electronically.
Proposed Rule Change
    The Exchange proposes to amend Rule 123D(a)(1) to provide for how 
the Exchange would determine when a DMM may effect a reopening of a 
security electronically. First, because Rule 123D(a)(1) is applicable 
to reopenings, the Exchange proposes to add to Rule 123D(a) that unless 
otherwise specified, references to an open or opening in Rule 123D(a) 
also mean a reopening following a trading halt or pause in a security. 
This proposed rule text is based on the last sentence of Rule 
123D(a)(2).\5\ As proposed, this text would be applicable to Rules 
123D(a)(1) and (a)(2) in addition to Rules 123D(a)(3)-(6), as currently 
provided for in Rule 123D(a)(2). The Exchange proposes to delete the 
last sentence of Rule 123D(a)(2) as duplicative of the proposed new 
rule text.
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    \5\ See Rule 123D(a)(2) (``Unless otherwise specified, 
references to an open or opening in paragraphs (a)(3)-(a)(6) of this 
Rule also mean a reopening following a trading halt or pause.''). 
See also Supplementary Material .10 to Rule 15 (``Unless otherwise 
specified in this Rule, references to an opening transaction include 
a reopening transaction following a trading halt or pause in a 
security.'')
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    Second, because Rule 123D has always governed the reopening 
process, in addition to the opening process, the Exchange proposes to 
add language to paragraph (1) of Rule 123D(a) to provide for DMM 
responsibilities regarding the reopening process. As proposed, Rule 
123D(a)(1) would explicitly state that it is the responsibility of each 
DMM to ensure that registered securities open as close to the end of a 
halt or pause, while at the same time not unduly hasty, particularly 
when at a price disparity from the last price on the Exchange.
    Third, the Exchange proposes to amend Rule 123D(a)(1)(B)(i) to 
provide for the reference price that the Exchange would use to 
determine whether a DMM may effect a reopening electronically. As 
proposed, a DMM may not effect a reopening electronically if the 
reopening transaction would be at a price more than 4% away from the 
last price on the Exchange, rather than 4% away from the Official 
Closing Price. The Exchange also proposes to specify that the Official 
Closing Price would be used as the reference price for openings, but 
not reopenings.
    The Exchange believes that when reopening a security, the Official 
Closing Price from the prior day would no longer be a relevant 
reference price because the security has already opened for trading. 
Rather, because the security has been subject to a halt or pause before 
reopening, the Exchange believes that using the last sale price on the 
Exchange would be more representative of the most recent price of a 
security. A reopening price that would be more than 4% away from the 
last Exchange sale price demonstrates a level of price movement in a 
security during the halt or pause that warrants the manual price 
discovery process for the reopening. If the reopening price were to be 
within 4% away from the last Exchange sale price, that security likely 
has not experienced as much price movement, and therefore an electronic 
reopening may be more appropriate.
    To effect this proposed rule change, the Exchange proposes to break 
current Rule 123D(a)(1)(B)(i) into subsections in order to specify the 
applicable parameters for determining whether to open or reopen a 
security electronically. The proposed amended rule text would provide 
(new text underlined, deletions bracketed):
    (i) Except under the conditions set forth in paragraphs 
(a)(1)(B)(ii) and (iii) of this Rule, a DMM may not effect an opening 
electronically if:
    (a) the opening (but not reopening) transaction will be at a price 
more than 4% away from the Official Closing Price, as defined in Rule 
123C(1)(e),
    (b) the reopening transaction will be at a price more than 4% away 
from the last price on the Exchange, or
    (c) the matched volume for the opening transaction will be more 
than:
    [(a)](1) 150,000 shares for securities with an average opening 
volume of 100,000 shares or fewer in the previous calendar quarter; or
    [(b)](2) 500,000 shares for securities with an average opening 
volume of over 100,000 shares in the previous calendar quarter.
    Fourth, the Exchange proposes to amend Rule 123D(a)(1)(B)(ii) to 
similarly provide that the reference price that the Exchange would use 
to determine whether a DMM may effect a reopening electronically on 
more volatile trading days would be based on the last sale price on the 
Exchange.\6\ The proposed amended rule text would provide (new text 
underlined):
---------------------------------------------------------------------------

    \6\ The first clause of Rule 123D(a)(1)(B)(ii) specifically 
governs assessing volatility before the opening of trading i.e., 
assessing volatility based on the E-mini S&P 500 Futures before 9:00 
a.m. Eastern Time to determine whether to widen the opening 
parameters. Based on the proposed changes to Rule 123D(a), discussed 
above, to specify that reference to the opening also refers to a 
reopening, the second clause of the current rule, i.e., that the 
Exchange may widen the opening parameters if it determines that it 
is necessary or appropriate for the maintenance of a fair and 
orderly market, would also apply to reopenings. For example, during 
a market-wide halt under Rule 80B, the futures markets may also halt 
trading in related securities. However, because of the market-wide 
volatility that triggered such halt, the Exchange may determine that 
it is appropriate to widen the parameters for when a DMM may effect 
a reopening electronically, even in the absence of a benchmark index 
to measure volatility.
---------------------------------------------------------------------------

    (ii) If as of 9:00 a.m. Eastern Time, the E-mini S&P 500 Futures 
are +/-2% from the prior day's closing price of the E-mini S&P 500 
Futures, or if the Exchange determines that it is necessary or 
appropriate for the maintenance of a fair and orderly market, a DMM may 
effect an opening electronically if the opening transaction will be at 
a price of up to 8% away from the Official Closing Price, as defined in 
Rule 123C(1)(e), (for openings, but not reopenings) or the last sale 
price on the Exchange (for reopenings), without any volume 
limitations.\7\
---------------------------------------------------------------------------

    \7\ The Exchange proposes a non-substantive, technical amendment 
to change the phrase ``fair and order market'' to provide instead 
``fair and orderly market'' in Rule 123D(a)(1)(B)(ii).
---------------------------------------------------------------------------

    Finally, the Exchange proposes to add new Rule 123D(a)(1)(B)(iii) 
to specify the reference price that the Exchange would use when 
reopening a security following a trading pause under Rule 80C or a 
market-wide halt under Rule 80B and a pre-opening indication has been 
published in a security under Rule 15. As proposed, under such 
circumstances, a DMM may not reopen such security electronically if the 
reopening transaction would be at a price outside of the last-published 
pre-opening indication. The Exchange believes that because price 
volatility was likely the cause of such trading pause or halt, if the 
DMM publishes a pre-opening indication in a security for a reopening 
following such trading pause or halt, the reopening price should be 
within such pre-opening indication price range, regardless of whether 
the security is reopened manually or electronically. If the price moves 
away from the last pre-opening indication, the DMM should publish a new 
pre-opening indication to provide notice of the new price range.\8\ 
Because the DMM would need to reopen a security within such price 
indication

[[Page 54151]]

range, the Exchange believes it is appropriate to prohibit a DMM from 
reopening electronically if the reopening price were to be outside of 
the last-published pre-opening indication. The proposed new rule text 
would provide (new text underlined):
---------------------------------------------------------------------------

    \8\ See Rule 15(e)(2) (a pre-opening indication must be updated 
if the opening transaction would be at a price outside of a 
published pre-opening indication).
---------------------------------------------------------------------------

    (iii) When reopening a security following a trading pause under 
Rule 80C or a market-wide halt under Rule 80B, if a pre-opening 
indication has been published in a security under Rule 15, a DMM may 
not reopen such security electronically if the reopening transaction 
will be at a price outside of the last-published pre-opening 
indication.
* * * * *
    Because of the technology changes associated with the proposed rule 
change, the Exchange will announce by Trader Update the implementation 
date of the changes.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\9\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\10\ in particular, because it 
is designed to prevent fraudulent and manipulative acts and practices, 
promote just and equitable principles of trade, remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system, and protect investors and the public interest. The 
Exchange believes that amending Rule 123D(a) to specify that unless 
otherwise provided, all of Rule 123D(a) is applicable to both openings 
and reopenings would remove impediments to and perfect the mechanism of 
a free and open market and a national market system because it would 
promote transparency regarding the scope of the rule. The proposed 
change is also consistent with current Rule 123D(a)(2) and 
Supplementary Material .10 to Rule 15, which similarly provide that 
references to an opening also refers to a reopening, unless otherwise 
specified.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange further believes that amending Rule 123D to specify 
when a DMM may effect a reopening electronically would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system by promoting transparency in Exchange rules 
regarding under what circumstances a DMM may effect a reopening 
electronically. The Exchange believes that using the last Exchange sale 
price as a reference price would promote just and equitable principles 
of trade and remove impediments to and perfect the mechanism of a free 
and open market and a national market system because using the last 
sale price on the Exchange would be more representative of the most 
recent price of a security from before the halt or pause. In addition, 
the Exchange believes that if a security were to reopen more than 4% 
(or 8% on a more volatile trading day) from that reference price, such 
reopening would likely benefit from the manual price discovery process. 
The Exchange further believes that it would remove impediments to and 
perfect the mechanism of a free and open market to double the 
parameters for when a DMM may reopen a security electronically if the 
Exchange believes that it is necessary or appropriate for the 
maintenance of a fair and orderly reopening of a security.
    The Exchange also believes that it would remove impediments to and 
perfect the mechanism of a free and open market to provide that a DMM 
may reopen a security electronically if the reopening transaction would 
be at a price outside of the last-published pre-opening indication when 
reopening a security following a trading pause under Rule 80C or a 
market-wide halt under Rule 80B and a pre-opening indication has been 
published under Rule 15. Finally, the Exchange believes that the 
proposal would advance the efficiency and transparency of the reopening 
process, thereby fostering accurate price discovery at the reopen of 
trading. For the same reasons, the proposal is also designed to protect 
investors as well as 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 rule change is 
not intended to address competitive issues but rather promote greater 
efficiency and transparency at the reopen of trading on the Exchange.

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

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

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\14\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange notes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest. The Exchange believes that waiver 
will provide clarification to its updated Disaster Recovery Plan, which 
has been filed with the Commission. The Commission hereby waives the 
30-day operative delay and designates the proposal operative upon 
filing.\15\
---------------------------------------------------------------------------

    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ For purposes only of waiving the 30-day 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 such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act.

[[Page 54152]]

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 [email protected]. Please include 
File Number SR-NYSE-2016-53 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSE-2016-53. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSE-2016-53, and should be 
submitted on or before September 6, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

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

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19317 Filed 8-12-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                                   54149

                                                Rule 19b–4(f)(2) thereunder,9 because it                  office of the Exchange. All comments                  II. Self-Regulatory Organization’s
                                                establishes or changes a due, or fee.                     received will be posted without change;               Statement of the Purpose of, and
                                                   At any time within 60 days of the                      the Commission does not edit personal                 Statutory Basis for, the Proposed Rule
                                                filing of the proposed rule change, the                   identifying information from                          Change
                                                Commission summarily may                                  submissions. You should submit only                      In its filing with the Commission, the
                                                temporarily suspend the rule change if                    information that you wish to make                     self-regulatory organization included
                                                it appears to the Commission that the                     available publicly. All submissions                   statements concerning the purpose of,
                                                action is necessary or appropriate in the                 should refer to File Number SR–BOX–                   and basis for, the proposed rule change
                                                public interest, for the protection of                                                                          and discussed any comments it received
                                                                                                          2016–38, and should be submitted on or
                                                investors, or would otherwise further                                                                           on the proposed rule change. The text
                                                                                                          before September 6, 2016.
                                                the purposes of the Act. If the                                                                                 of those statements may be examined at
                                                Commission takes such action, the                           For the Commission, by the Division of
                                                                                                                                                                the places specified in Item IV below.
                                                Commission shall institute proceedings                    Trading and Markets, pursuant to delegated
                                                                                                          authority.10
                                                                                                                                                                The Exchange has prepared summaries,
                                                to determine whether the proposed rule                                                                          set forth in sections A, B, and C below,
                                                should be approved or disapproved.                        Robert W. Errett,                                     of the most significant parts of such
                                                IV. Solicitation of Comments                              Deputy Secretary.                                     statements.
                                                                                                          [FR Doc. 2016–19319 Filed 8–12–16; 8:45 am]
                                                  Interested persons are invited to                                                                             A. Self-Regulatory Organization’s
                                                submit written data, views, and                           BILLING CODE 8011–01–P
                                                                                                                                                                Statement of the Purpose of, and the
                                                arguments concerning the foregoing,                                                                             Statutory Basis for, the Proposed Rule
                                                including whether the proposed rule                                                                             Change
                                                change is consistent with the Act.                        SECURITIES AND EXCHANGE
                                                Comments may be submitted by any of                       COMMISSION                                            1. Purpose
                                                the following methods:                                                                                             The Exchange proposes to amend
                                                                                                          [Release No. 34–78512; File No. SR–NYSE–              Rule 123D relating to when a DMM may
                                                Electronic Comments                                       2016–53]                                              reopen a security electronically. The
                                                  • Use the Commission’s Internet                                                                               proposed rule changes would provide
                                                comment form (http://www.sec.gov/                         Self-Regulatory Organizations; New                    greater specificity regarding the
                                                rules/sro.shtml); or                                      York Stock Exchange LLC; Notice of                    applicable reference price for
                                                  • Send an email to rule-comments@                       Filing and Immediate Effectiveness of                 determining when a DMM may effect a
                                                sec.gov. Please include File Number SR–                   Proposed Rule Change Amending Rule                    reopening transaction electronically.
                                                BOX–2016–38 on the subject line.                          123D Relating to When a DMM May
                                                                                                                                                                Background
                                                Paper Comments                                            Reopen a Security Electronically
                                                                                                                                                                  The Exchange recently amended Rule
                                                   • Send paper comments in triplicate                    August 9, 2016.                                       123D to specify when DMMs may effect
                                                to Secretary, Securities and Exchange                                                                           an opening of a security electronically.4
                                                Commission, 100 F Street NE.,                                Pursuant to Section 19(b)(1) 1 of the
                                                                                                          Securities Exchange Act of 1934 (the                  Rule 123D(a)(1)(B) provides that
                                                Washington, DC 20549–1090.                                                                                      openings may be effectuated manually
                                                                                                          ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                All submissions should refer to File                                                                            or electronically (as provided for in Rule
                                                Number SR–BOX–2016–38. This file                          notice is hereby given that on July 28,
                                                                                                                                                                104(b)(ii)) and that Exchange systems
                                                number should be included on the                          2016, New York Stock Exchange LLC
                                                                                                                                                                will not permit a DMM to open a
                                                subject line if email is used. To help the                (‘‘NYSE’’ or the ‘‘Exchange’’) filed with             security electronically if a DMM has
                                                Commission process and review your                        the Securities and Exchange                           manually entered Floor interest. Rule
                                                comments more efficiently, please use                     Commission (the ‘‘Commission’’) the                   123D(a)(1)(B)(i) further provides that,
                                                only one method. The Commission will                      proposed rule change as described in                  except under the conditions set forth in
                                                post all comments on the Commission’s                     Items I, II, and III below, which Items               paragraph (a)(1)(B)(ii) of Rule 123D, a
                                                Internet Web site (http://www.sec.gov/                    have been prepared by the self-                       DMM may not effect an opening
                                                rules/sro.shtml). Copies of the                           regulatory organization. The                          electronically if the opening transaction
                                                submission, all subsequent                                Commission is publishing this notice to               will be at a price more than 4% away
                                                amendments, all written statements                        solicit comments on the proposed rule                 from the Official Closing Price, as
                                                with respect to the proposed rule                         change from interested persons.                       defined in Rule 123C(1)(e), or the
                                                change that are filed with the                                                                                  matched volume will be more than: (a)
                                                Commission, and all written                               I. Self-Regulatory Organization’s
                                                                                                                                                                150,000 shares for securities with an
                                                communications relating to the                            Statement of the Terms of Substance of
                                                                                                                                                                average opening volume of 100,000
                                                proposed rule change between the                          the Proposed Rule Change                              shares or fewer in the previous calendar
                                                Commission and any person, other than                        The Exchange proposes to amend                     quarter; or (b) 500,000 shares for
                                                those that may be withheld from the                       Rule 123D relating to when a DMM may                  securities with an average opening
                                                public in accordance with the                                                                                   volume of over 100,000 shares in the
                                                                                                          reopen a security electronically. The
                                                provisions of 5 U.S.C. 552, will be                                                                             previous calendar quarter.
                                                                                                          proposed rule change is available on the
                                                available for Web site viewing and                                                                                 Rule 123D(a)(1)(B)(ii) provides that if
                                                printing in the Commission’s Public                       Exchange’s Web site at www.nyse.com,                  as of 9:00 a.m. Eastern Time, the E-mini
                                                                                                          at the principal office of the Exchange,              S&P 500 Futures are ± 2% from the prior
sradovich on DSK3GMQ082PROD with NOTICES




                                                Reference Room, 100 F Street, NE.,
                                                Washington, DC 20549 on official                          and at the Commission’s Public                        day’s closing price of the E-mini S&P
                                                business days between the hours of                        Reference Room.
                                                10:00 a.m. and 3:00 p.m. Copies of such                                                                            4 See Securities Exchange Act Release Nos. 78228

                                                filing also will be available for                           10 17 CFR 200.30–3(a)(12).                          (July 5, 2016), 81 FR 44907(July 11, 2016) (SR–
                                                                                                                                                                NYSE–2016–24) (Approval Order) and 77491
                                                inspection and copying at the principal                     1 15 U.S.C.78s(b)(1).
                                                                                                                                                                (March 31, 2016), 81 FR 20030 (April 6, 2016) (SR–
                                                                                                            2 15 U.S.C. 78a.
                                                                                                                                                                NYSE–2016–24) (Notice of Filing) (‘‘Opening
                                                  9 17   CFR 240.19b–4(f)(2).                               3 17 CFR 240.19b–4.                                 Filing’’).



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                                                54150                         Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                500 Futures, or if the Exchange                         away from the Official Closing Price.                  proposed amended rule text would
                                                determines that it is necessary or                      The Exchange also proposes to specify                  provide (new text underlined):
                                                appropriate for the maintenance of a fair               that the Official Closing Price would be                  (ii) If as of 9:00 a.m. Eastern Time, the
                                                and orderly market, a DMM may effect                    used as the reference price for openings,              E-mini S&P 500 Futures are +/¥2%
                                                an opening electronically if the opening                but not reopenings.                                    from the prior day’s closing price of the
                                                transaction will be at a price of up to                    The Exchange believes that when                     E-mini S&P 500 Futures, or if the
                                                8% away from the Official Closing                       reopening a security, the Official                     Exchange determines that it is necessary
                                                Price, as defined in Rule 123C(1)(e),                   Closing Price from the prior day would                 or appropriate for the maintenance of a
                                                without any volume limitations. The                     no longer be a relevant reference price                fair and orderly market, a DMM may
                                                current rule is silent on the reference                 because the security has already opened                effect an opening electronically if the
                                                price for when a DMM may effect a                       for trading. Rather, because the security              opening transaction will be at a price of
                                                reopening of a security electronically.                 has been subject to a halt or pause                    up to 8% away from the Official Closing
                                                                                                        before reopening, the Exchange believes                Price, as defined in Rule 123C(1)(e), (for
                                                Proposed Rule Change                                    that using the last sale price on the                  openings, but not reopenings) or the last sale
                                                   The Exchange proposes to amend                       Exchange would be more representative                  price on the Exchange (for reopenings),
                                                Rule 123D(a)(1) to provide for how the                  of the most recent price of a security. A              without any volume limitations.7
                                                Exchange would determine when a                         reopening price that would be more                        Finally, the Exchange proposes to add
                                                DMM may effect a reopening of a                         than 4% away from the last Exchange                    new Rule 123D(a)(1)(B)(iii) to specify
                                                security electronically. First, because                 sale price demonstrates a level of price               the reference price that the Exchange
                                                Rule 123D(a)(1) is applicable to                        movement in a security during the halt                 would use when reopening a security
                                                reopenings, the Exchange proposes to                    or pause that warrants the manual price                following a trading pause under Rule
                                                add to Rule 123D(a) that unless                         discovery process for the reopening. If                80C or a market-wide halt under Rule
                                                otherwise specified, references to an                   the reopening price were to be within                  80B and a pre-opening indication has
                                                open or opening in Rule 123D(a) also                    4% away from the last Exchange sale                    been published in a security under Rule
                                                mean a reopening following a trading                    price, that security likely has not                    15. As proposed, under such
                                                halt or pause in a security. This                       experienced as much price movement,                    circumstances, a DMM may not reopen
                                                proposed rule text is based on the last                 and therefore an electronic reopening                  such security electronically if the
                                                sentence of Rule 123D(a)(2).5 As                        may be more appropriate.                               reopening transaction would be at a
                                                proposed, this text would be applicable                    To effect this proposed rule change,                price outside of the last-published pre-
                                                to Rules 123D(a)(1) and (a)(2) in                       the Exchange proposes to break current                 opening indication. The Exchange
                                                addition to Rules 123D(a)(3)–(6), as                    Rule 123D(a)(1)(B)(i) into subsections in              believes that because price volatility
                                                currently provided for in Rule                          order to specify the applicable                        was likely the cause of such trading
                                                123D(a)(2). The Exchange proposes to                    parameters for determining whether to                  pause or halt, if the DMM publishes a
                                                delete the last sentence of Rule                        open or reopen a security electronically.              pre-opening indication in a security for
                                                123D(a)(2) as duplicative of the                        The proposed amended rule text would                   a reopening following such trading
                                                proposed new rule text.                                 provide (new text underlined, deletions                pause or halt, the reopening price
                                                   Second, because Rule 123D has                        bracketed):                                            should be within such pre-opening
                                                always governed the reopening process,                     (i) Except under the conditions set                 indication price range, regardless of
                                                in addition to the opening process, the                 forth in paragraphs (a)(1)(B)(ii) and (iii)            whether the security is reopened
                                                Exchange proposes to add language to                    of this Rule, a DMM may not effect an                  manually or electronically. If the price
                                                paragraph (1) of Rule 123D(a) to provide                opening electronically if:                             moves away from the last pre-opening
                                                for DMM responsibilities regarding the                     (a) the opening (but not reopening)                 indication, the DMM should publish a
                                                                                                        transaction will be at a price more than               new pre-opening indication to provide
                                                reopening process. As proposed, Rule
                                                                                                        4% away from the Official Closing                      notice of the new price range.8 Because
                                                123D(a)(1) would explicitly state that it
                                                                                                        Price, as defined in Rule 123C(1)(e),                  the DMM would need to reopen a
                                                is the responsibility of each DMM to
                                                                                                           (b) the reopening transaction will be at a          security within such price indication
                                                ensure that registered securities open as
                                                close to the end of a halt or pause, while              price more than 4% away from the last price
                                                                                                        on the Exchange, or                                    opening of trading i.e., assessing volatility based on
                                                at the same time not unduly hasty,                                                                             the E-mini S&P 500 Futures before 9:00 a.m. Eastern
                                                particularly when at a price disparity                     (c) the matched volume for the                      Time to determine whether to widen the opening
                                                from the last price on the Exchange.                    opening transaction will be more than:                 parameters. Based on the proposed changes to Rule
                                                   Third, the Exchange proposes to                         [(a)](1) 150,000 shares for securities              123D(a), discussed above, to specify that reference
                                                                                                        with an average opening volume of                      to the opening also refers to a reopening, the second
                                                amend Rule 123D(a)(1)(B)(i) to provide                                                                         clause of the current rule, i.e., that the Exchange
                                                for the reference price that the Exchange               100,000 shares or fewer in the previous                may widen the opening parameters if it determines
                                                would use to determine whether a DMM                    calendar quarter; or                                   that it is necessary or appropriate for the
                                                may effect a reopening electronically.                     [(b)](2) 500,000 shares for securities              maintenance of a fair and orderly market, would
                                                                                                        with an average opening volume of over                 also apply to reopenings. For example, during a
                                                As proposed, a DMM may not effect a                                                                            market-wide halt under Rule 80B, the futures
                                                reopening electronically if the                         100,000 shares in the previous calendar                markets may also halt trading in related securities.
                                                reopening transaction would be at a                     quarter.                                               However, because of the market-wide volatility that
                                                price more than 4% away from the last                      Fourth, the Exchange proposes to                    triggered such halt, the Exchange may determine
                                                                                                        amend Rule 123D(a)(1)(B)(ii) to                        that it is appropriate to widen the parameters for
                                                price on the Exchange, rather than 4%                                                                          when a DMM may effect a reopening electronically,
                                                                                                        similarly provide that the reference                   even in the absence of a benchmark index to
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                                                   5 See Rule 123D(a)(2) (‘‘Unless otherwise            price that the Exchange would use to                   measure volatility.
                                                specified, references to an open or opening in          determine whether a DMM may effect a                      7 The Exchange proposes a non-substantive,

                                                paragraphs (a)(3)–(a)(6) of this Rule also mean a       reopening electronically on more                       technical amendment to change the phrase ‘‘fair
                                                reopening following a trading halt or pause.’’). See                                                           and order market’’ to provide instead ‘‘fair and
                                                                                                        volatile trading days would be based on                orderly market’’ in Rule 123D(a)(1)(B)(ii).
                                                also Supplementary Material .10 to Rule 15
                                                (‘‘Unless otherwise specified in this Rule,             the last sale price on the Exchange.6 The                 8 See Rule 15(e)(2) (a pre-opening indication must

                                                references to an opening transaction include a                                                                 be updated if the opening transaction would be at
                                                reopening transaction following a trading halt or         6 The first clause of Rule 123D(a)(1)(B)(ii)         a price outside of a published pre-opening
                                                pause in a security.’’)                                 specifically governs assessing volatility before the   indication).



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                                                                                Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                                   54151

                                                range, the Exchange believes it is                         perfect the mechanism of a free and                   19(b)(3)(A)(iii) of the Act 11 and Rule
                                                appropriate to prohibit a DMM from                         open market and a national market                     19b–4(f)(6) thereunder.12 Because the
                                                reopening electronically if the                            system because using the last sale price              proposed rule change does not: (i)
                                                reopening price were to be outside of                      on the Exchange would be more                         Significantly affect the protection of
                                                the last-published pre-opening                             representative of the most recent price               investors or the public interest; (ii)
                                                indication. The proposed new rule text                     of a security from before the halt or                 impose any significant burden on
                                                would provide (new text underlined):                       pause. In addition, the Exchange                      competition; and (iii) become operative
                                                   (iii) When reopening a security following               believes that if a security were to reopen            prior to 30 days from the date on which
                                                a trading pause under Rule 80C or a market-                more than 4% (or 8% on a more volatile                it was filed, or such shorter time as the
                                                wide halt under Rule 80B, if a pre-opening                 trading day) from that reference price,               Commission may designate, if
                                                indication has been published in a security                such reopening would likely benefit                   consistent with the protection of
                                                under Rule 15, a DMM may not reopen such                   from the manual price discovery                       investors and the public interest, the
                                                security electronically if the reopening                   process. The Exchange further believes                proposed rule change has become
                                                transaction will be at a price outside of the              that it would remove impediments to                   effective pursuant to Section 19(b)(3)(A)
                                                last-published pre-opening indication.                     and perfect the mechanism of a free and               of the Act and Rule 19b–4(f)(6)(iii)
                                                *       *    *      *      *                               open market to double the parameters                  thereunder.
                                                   Because of the technology changes                       for when a DMM may reopen a security                     A proposed rule change filed under
                                                associated with the proposed rule                          electronically if the Exchange believes               Rule 19b–4(f)(6) 13 normally does not
                                                change, the Exchange will announce by                      that it is necessary or appropriate for the           become operative prior to 30 days after
                                                Trader Update the implementation date                      maintenance of a fair and orderly                     the date of the filing. However, pursuant
                                                of the changes.                                            reopening of a security.                              to Rule 19b4(f)(6)(iii),14 the Commission
                                                                                                              The Exchange also believes that it                 may designate a shorter time if such
                                                2. Statutory Basis                                                                                               action is consistent with the protection
                                                                                                           would remove impediments to and
                                                   The Exchange believes that the                          perfect the mechanism of a free and                   of investors and the public interest. The
                                                proposed rule change is consistent with                    open market to provide that a DMM may                 Exchange has asked the Commission to
                                                Section 6(b) of the Act,9 in general, and                  reopen a security electronically if the               waive the 30-day operative delay so that
                                                furthers the objectives of Section 6(b)(5)                                                                       the proposal may become operative
                                                                                                           reopening transaction would be at a
                                                of the Act,10 in particular, because it is                                                                       immediately upon filing. The Exchange
                                                                                                           price outside of the last-published pre-
                                                designed to prevent fraudulent and                                                                               notes that waiving the 30-day operative
                                                                                                           opening indication when reopening a
                                                manipulative acts and practices,                                                                                 delay is consistent with the protection
                                                                                                           security following a trading pause under
                                                promote just and equitable principles of                                                                         of investors and the public interest. The
                                                                                                           Rule 80C or a market-wide halt under
                                                trade, remove impediments to and                                                                                 Exchange believes that waiver will
                                                                                                           Rule 80B and a pre-opening indication
                                                perfect the mechanism of a free and                                                                              provide clarification to its updated
                                                                                                           has been published under Rule 15.
                                                open market and a national market                                                                                Disaster Recovery Plan, which has been
                                                                                                           Finally, the Exchange believes that the
                                                system, and protect investors and the                                                                            filed with the Commission. The
                                                                                                           proposal would advance the efficiency
                                                public interest. The Exchange believes                                                                           Commission hereby waives the 30-day
                                                that amending Rule 123D(a) to specify                      and transparency of the reopening
                                                                                                           process, thereby fostering accurate price             operative delay and designates the
                                                that unless otherwise provided, all of                                                                           proposal operative upon filing.15
                                                Rule 123D(a) is applicable to both                         discovery at the reopen of trading. For
                                                                                                                                                                    At any time within 60 days of the
                                                openings and reopenings would remove                       the same reasons, the proposal is also
                                                                                                                                                                 filing of such proposed rule change, the
                                                impediments to and perfect the                             designed to protect investors as well as
                                                                                                                                                                 Commission summarily may
                                                mechanism of a free and open market                        the public interest.
                                                                                                                                                                 temporarily suspend such rule change if
                                                and a national market system because it                    B. Self-Regulatory Organization’s                     it appears to the Commission that such
                                                would promote transparency regarding                       Statement on Burden on Competition                    action is necessary or appropriate in the
                                                the scope of the rule. The proposed                                                                              public interest, for the protection of
                                                change is also consistent with current                        The Exchange does not believe that
                                                                                                                                                                 investors, or otherwise in furtherance of
                                                Rule 123D(a)(2) and Supplementary                          the proposed rule change will impose
                                                                                                                                                                 the purposes of the Act. If the
                                                Material .10 to Rule 15, which similarly                   any burden on competition that is not
                                                                                                                                                                 Commission takes such action, the
                                                provide that references to an opening                      necessary or appropriate in furtherance
                                                                                                                                                                 Commission shall institute proceedings
                                                also refers to a reopening, unless                         of the purposes of the Act. The
                                                                                                                                                                 under Section 19(b)(2)(B) 16 of the Act to
                                                otherwise specified.                                       proposed rule change is not intended to
                                                                                                                                                                 determine whether the proposed rule
                                                   The Exchange further believes that                      address competitive issues but rather
                                                                                                                                                                 change should be approved or
                                                amending Rule 123D to specify when a                       promote greater efficiency and
                                                                                                                                                                 disapproved.
                                                DMM may effect a reopening                                 transparency at the reopen of trading on
                                                electronically would remove                                the Exchange.                                         IV. Solicitation of Comments
                                                impediments to and perfect the                             C. Self-Regulatory Organization’s                       Interested persons are invited to
                                                mechanism of a free and open market                        Statement on Comments on the                          submit written data, views, and
                                                and a national market system by                            Proposed Rule Change Received From                    arguments concerning the foregoing,
                                                promoting transparency in Exchange                         Members, Participants, or Others                      including whether the proposed rule
                                                rules regarding under what                                                                                       change is consistent with the Act.
                                                circumstances a DMM may effect a                             No written comments were solicited
                                                                                                           or received with respect to the proposed
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                                                reopening electronically. The Exchange                                                                             11 15 U.S.C. 78s(b)(3)(A)(iii).
                                                believes that using the last Exchange                      rule change.                                            12 17 CFR 240.19b–4(f)(6).
                                                                                                                                                                   13 17 CFR 240.19b–4(f)(6).
                                                sale price as a reference price would                      III. Date of Effectiveness of the                       14 17 CFR 240.19b–4(f)(6)(iii).
                                                promote just and equitable principles of                   Proposed Rule Change and Timing for                     15 For purposes only of waiving the 30-day
                                                trade and remove impediments to and                        Commission Action                                     operative delay, the Commission has considered the
                                                                                                                                                                 proposed rule’s impact on efficiency, competition,
                                                  9 15   U.S.C. 78f(b).                                      The Exchange has filed the proposed                 and capital formation. See 15 U.S.C. 78c(f).
                                                  10 15   U.S.C. 78f(b)(5).                                rule change pursuant to Section                         16 15 U.S.C. 78s(b)(2)(B).




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                                                54152                            Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                Comments may be submitted by any of                       SECURITIES AND EXCHANGE                               statements may be examined at the
                                                the following methods:                                    COMMISSION                                            places specified in Item IV below. The
                                                                                                                                                                Exchange has prepared summaries, set
                                                Electronic Comments                                       [Release No. 34–78522; File No. SR-
                                                                                                                                                                forth in Sections A, B, and C below, of
                                                                                                          BatsEDGX–2016–40]
                                                  • Use the Commission’s Internet                                                                               the most significant parts of such
                                                comment form (http://www.sec.gov/                         Self-Regulatory Organizations; Bats                   statements.
                                                rules/sro.shtml); or                                      EDGX Exchange, Inc.; Notice of Filing                 (A) Self-Regulatory Organization’s
                                                                                                          and Immediate Effectiveness of a                      Statement of the Purpose of, and
                                                  • Send an email to rule-comments@                       Proposed Rule Change Related to Fees
                                                sec.gov. Please include File Number SR–                                                                         Statutory Basis for, the Proposed Rule
                                                                                                          for Use of the Exchange’s Options                     Change
                                                NYSE–2016–53 on the subject line.                         Platform
                                                Paper Comments                                                                                                  1. Purpose
                                                                                                          August 9, 2016.
                                                                                                             Pursuant to Section 19(b)(1) of the                   The Exchange proposes to amend its
                                                  • Send paper comments in triplicate                                                                           fee schedule for its equity options
                                                to Brent J. Fields, Secretary, Securities                 Securities Exchange Act of 1934 (the
                                                                                                          ‘‘Act’’),1 and Rule 19b–4 thereunder,2                platform (‘‘EDGX Options’’) to: (i)
                                                and Exchange Commission, 100 F Street                                                                           Modify the criteria necessary to achieve
                                                                                                          notice is hereby given that on July 29,
                                                NE., Washington, DC 20549–1090.                                                                                 Customer Volume Tier 5; (ii) modify
                                                                                                          2016, Bats EDGX Exchange, Inc. (the
                                                All submissions should refer to File                      ‘‘Exchange’’ or ‘‘EDGX’’) filed with the              criteria necessary to achieve Market
                                                Number SR–NYSE–2016–53. This file                         Securities and Exchange Commission                    Maker Volume Tier 7 and decrease the
                                                number should be included on the                          (‘‘Commission’’) the proposed rule                    corresponding rate; and (iii) adopt a
                                                subject line if email is used. To help the                change as described in Items I, II and III            new tier entitled the ‘‘Firm Penny Pilot
                                                Commission process and review your                        below, which Items have been prepared                 Cross-Asset Tier’’.
                                                comments more efficiently, please use                     by the Exchange. The Exchange has                        The Exchange determines the reduced
                                                only one method. The Commission will                      designated the proposed rule change as                fee or enhanced rebate using a tiered
                                                post all comments on the Commission’s                     one establishing or changing a member                 pricing structure offering two tiers
                                                Internet Web site (http://www.sec.gov/                    due, fee, or other charge imposed by the              under footnotes 1 and 2 of the fee
                                                rules/sro.shtml). Copies of the                           Exchange under Section 19(b)(3)(A)(ii)                schedule, Customer Volume Tiers and
                                                submission, all subsequent                                of the Act 3 and Rule 19b–4(f)(2)                     Market Maker Volume Tiers,
                                                                                                          thereunder,4 which renders the                        respectively. Under the tiers, Members
                                                amendments, all written statements
                                                                                                          proposed rule change effective upon                   that achieve certain volume criteria may
                                                with respect to the proposed rule
                                                                                                          filing with the Commission. The                       qualify for reduced fees or enhanced
                                                change that are filed with the                            Commission is publishing this notice to               rebates for Customer 6 and Market
                                                Commission, and all written                               solicit comments on the proposed rule                 Maker 7 orders. The Exchange proposes
                                                communications relating to the                            change from interested persons.                       to modify the criteria necessary to
                                                proposed rule change between the                                                                                achieve Customer Volume Tier 5 under
                                                Commission and any person, other than                     I. Self-Regulatory Organization’s
                                                                                                                                                                footnote 1, and modify the
                                                those that may be withheld from the                       Statement of the Terms of Substance of
                                                                                                                                                                corresponding rate and criteria
                                                public in accordance with the                             the Proposed Rule Change
                                                                                                                                                                necessary to achieve Market Maker
                                                provisions of 5 U.S.C. 552, will be                          The Exchange filed a proposal to                   Volume Tier 7 under footnote 2. The
                                                available for Web site viewing and                        amend the fee schedule applicable to                  Exchange also proposes to adopt a new
                                                printing in the Commission’s Public                       Members 5 and non-Members of the                      tier entitled the ‘‘Firm Penny Pilot
                                                Reference Room, 100 F Street NE.,                         Exchange pursuant to EDGX Rules                       Cross-Asset Tier’’ under a new footnote
                                                Washington, DC 20549, on official                         15.1(a) and (c).                                      4.
                                                business days between the hours of                           The text of the proposed rule change                  Customer Volume Tier 5. Fee codes
                                                10:00 a.m. and 3:00 p.m. Copies of the                    is available at the Exchange’s Web site               PC and NC are currently appended to all
                                                filing also will be available for                         at www.batstrading.com, at the                        Customer orders in Penny Pilot
                                                inspection and copying at the principal                   principal office of the Exchange, and at              Securities 8 and Non-Penny Pilot
                                                office of the Exchange. All comments                      the Commission’s Public Reference
                                                                                                                                                                Securities,9 respectively, and result in a
                                                received will be posted without change;                   Room.
                                                                                                                                                                standard rebate of $0.05 per contract.
                                                the Commission does not edit personal                     II. Self-Regulatory Organization’s                    The Customer Volume Tiers in footnote
                                                identifying information from                              Statement of the Purpose of, and                      1 consist of five separate tiers, each
                                                submissions. You should submit only                       Statutory Basis for, the Proposed Rule                providing an enhanced rebate to a
                                                information that you wish to make                         Change                                                Member’s Customer order that yields fee
                                                available publicly. All submissions                          In its filing with the Commission, the             codes PC or NC upon satisfying monthly
                                                should refer to File Number SR–NYSE–                      Exchange included statements                          volume criteria required by the
                                                2016–53, and should be submitted on or                    concerning the purpose of and basis for               respective tier. For instance, pursuant to
                                                before September 6, 2016.                                 the proposed rule change and discussed                Customer Volume Tier 1, the lowest
                                                                                                          any comments it received on the                       volume tier, a Member will receive a
                                                  For the Commission, by the Division of                                                                        rebate of $0.10 per contract where the
                                                Trading and Markets, pursuant to delegated                proposed rule change. The text of these
                                                                                                                                                                Member has an ADV 10 in Customer
sradovich on DSK3GMQ082PROD with NOTICES




                                                authority.17
                                                                                                            1 15 U.S.C. 78s(b)(1).
                                                Robert W. Errett,                                           2 17                                                  6 As defined in the Exchange’s fee schedule
                                                                                                                 CFR 240.19b–4.
                                                Deputy Secretary.                                           3 15 U.S.C. 78s(b)(3)(A)(ii).                       available at http://www.batsoptions.com/support/
                                                [FR Doc. 2016–19317 Filed 8–12–16; 8:45 am]                 4 17 CFR 240.19b–4(f)(2).                           fee_schedule/edgx/.
                                                                                                                                                                  7 Id.
                                                                                                            5 The term ‘‘Member’’ is defined as ‘‘any
                                                BILLING CODE 8011–01–P                                                                                            8 Id.
                                                                                                          registered broker or dealer that has been admitted
                                                                                                                                                                  9 Id.
                                                                                                          to membership in the Exchange.’’ See Exchange
                                                  17 17   CFR 200.30–3(a)(12).                            Rule 1.5(n).                                            10 Id.




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Document Created: 2016-08-13 02:21:54
Document Modified: 2016-08-13 02:21:54
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 54149 

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