81 FR 57642 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Period for the Exchange's Retail Liquidity Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 163 (August 23, 2016)
Federal Register Volume 81, Issue 163 (August 23, 2016)
| Page Range | 57642-57644 | |
| FR Document | 2016-20061 |
[Federal Register Volume 81, Number 163 (Tuesday, August 23, 2016)] [Notices] [Pages 57642-57644] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-20061] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78600; File No. SR-NYSE-2016-54] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Period for the Exchange's Retail Liquidity Program August 17, 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 August 8, 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 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 extend the pilot period for the Exchange's Retail Liquidity Program (the ``Retail Liquidity Program'' or the ``Program''), which is currently scheduled to expire on August 31, 2016, until December 31, 2016. 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. [[Page 57643]] 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 purpose of this filing is to extend the pilot period of the Retail Liquidity Program, currently scheduled to expire on August 31, 2016,\4\ until December 31, 2016. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release Nos. 77426 (March 23, 2016), 81 FR 17533 (March 29, 2016) (SR-NYSE-2016-25). --------------------------------------------------------------------------- Background In July 2012, the Commission approved the Retail Liquidity Program on a pilot basis.\5\ The Program is designed to attract retail order flow to the Exchange, and allows such order flow to receive potential price improvement. The Program is currently limited to trades occurring at prices equal to or greater than $1.00 per share. Under the Program, Retail Liquidity Providers (``RLPs'') are able to provide potential price improvement in the form of a non-displayed order that is priced better than the Exchange's best protected bid or offer (``PBBO''), called a Retail Price Improvement Order (``RPI''). When there is an RPI in a particular security, the Exchange disseminates an indicator, known as the Retail Liquidity Identifier, indicating that such interest exists. Retail Member Organizations (``RMOs'') can submit a Retail Order to the Exchange, which would interact, to the extent possible, with available contra-side RPIs. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 67347 (July 3, 2012), 77 FR 40673 (July 10, 2012) (``RLP Approval Order'') (SR- NYSE-2011-55). --------------------------------------------------------------------------- The Retail Liquidity Program was approved by the Commission on a pilot basis. Pursuant to NYSE Rule 107C(m), the pilot period for the Program is scheduled to end on August 31, 2016. Proposal To Extend the Operation of the Program The Exchange established the Retail Liquidity Program in an attempt to attract retail order flow to the Exchange by potentially providing price improvement to such order flow. The Exchange believes that the Program promotes competition for retail order flow by allowing Exchange members to submit RPIs to interact with Retail Orders. Such competition has the ability to promote efficiency by facilitating the price discovery process and generating additional investor interest in trading securities, thereby promoting capital formation. The Exchange believes that extending the pilot is appropriate because it will allow the Exchange and the Commission additional time to analyze data regarding the Program that the Exchange has committed to provide.\6\ As such, the Exchange believes that it is appropriate to extend the current operation of the Program.\7\ Through this filing, the Exchange seeks to amend NYSE Rule 107C(m) and extend the current pilot period of the Program until December 31, 2016. --------------------------------------------------------------------------- \6\ See id. at 40681. \7\ Concurrently with this filing, the Exchange has submitted a request for an extension of the exemption under Regulation NMS Rule 612 previously granted by the Commission that permits it to accept and rank the undisplayed RPIs. See Letter from Martha Redding, Asst. Corporate Secretary, NYSE Group, Inc. to Brent J. Fields, Secretary, Securities and Exchange Commission, dated August 8, 2016. --------------------------------------------------------------------------- 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,\8\ in general, and furthers the objectives of Section 6(b)(5),\9\ in particular, in that it is designed to promote just and equitable principles of trade, 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. The Exchange believes that extending the pilot period for the Retail Liquidity Program is consistent with these principles because the Program is reasonably designed to attract retail order flow to the exchange environment, while helping to ensure that retail investors benefit from the better price that liquidity providers are willing to give their orders. Additionally, as previously stated, the competition promoted by the Program may facilitate the price discovery process and potentially generate additional investor interest in trading securities. The extension of the pilot period will allow the Commission and the Exchange to continue to monitor the Program for its potential effects on public price discovery, and on the broader market structure. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change simply extends an established pilot program for an additional six months, thus allowing the Retail Liquidity Program to enhance competition for retail order flow and contribute to the public price discovery process. 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) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 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 \12\ and Rule 19b- 4(f)(6) thereunder.\13\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(6). \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission [[Page 57644]] 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 proposed rule change may become operative before the expiration of the current pilot period. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest, because waiver would allow the pilot period to continue uninterrupted after its current expiration date of August 31, 2016, thereby avoiding any potential investor confusion that could result from temporary interruption in the pilot program. For this reason, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing.\16\ --------------------------------------------------------------------------- \14\ 17 CFR 240.19b-4(f)(6). \15\ 17 CFR 240.19b-4(f)(6)(iii). \16\ 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 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSE-2016-54 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-2016-54. 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-2016-54 and should be submitted on or before September 13, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-20061 Filed 8-22-16; 8:45 am] BILLING CODE 8011-01-P
![57642 Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Notices
Commission, 100 F Street NE., SECURITIES AND EXCHANGE the proposed rule change. Accordingly,
Washington, DC 20549–1090. COMMISSION the Commission, pursuant to Section
19(b)(2) of the Act,6 designates October
All submissions should refer to File [Release No. 34–78598; File No. SR–
5, 2016, as the date by which the
Number SR–NASDAQ–2016–118. This NYSEMKT–2016–52]
Commission shall either approve or
file number should be included on the disapprove, or institute proceedings to
Self-Regulatory Organizations; NYSE
subject line if email is used. To help the determine whether to disapprove, the
MKT LLC; Notice of Designation of a
Commission process and review your Longer Period for Commission Action proposed rule change (File No. SR–
comments more efficiently, please use on Proposed Rule Change Amending NYSEMKT–2016–52).
only one method. The Commission will Rules 340, 341, and 359 To Extend the For the Commission, by the Division of
post all comments on the Commission’s Time Within Which a Member, Member Trading and Markets, pursuant to delegated
Internet Web site (http://www.sec.gov/ Organization, or an ATP Holder Must authority.7
rules/sro.shtml). Copies of the File a Uniform Termination Notice for Brent J. Fields,
submission, all subsequent Securities Industry Registration (‘‘U5’’) Secretary.
amendments, all written statements [FR Doc. 2016–20060 Filed 8–22–16; 8:45 am]
with respect to the proposed rule August 17, 2016.
change that are filed with the On June 16, 2016, NYSE MKT LLC BILLING CODE 8011–01–P
Commission, and all written filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
communications relating to the SECURITIES AND EXCHANGE
to Section 19(b)(1) of the Securities
proposed rule change between the COMMISSION
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
Commission and any person, other than 19b–4 thereunder,2 a proposed rule
those that may be withheld from the change to amend Rules 340, 341, and [Release No. 34–78600; File No. SR–NYSE–
public in accordance with the 359 to extend the time within which a 2016–54]
provisions of 5 U.S.C. 552, will be member, member organization, or an
available for Web site viewing and ATP Holder must file a U5. The Self-Regulatory Organizations; New
printing in the Commission’s Public proposed rule change was published for York Stock Exchange LLC; Notice of
Reference Room, 100 F Street NE., comment in the Federal Register on July Filing and Immediate Effectiveness of
Washington, DC 20549, on official 7, 2016.3 The Commission received one Proposed Rule Change Extending the
business days between the hours of comment letter on the proposal and a Pilot Period for the Exchange’s Retail
10:00 a.m. and 3:00 p.m. Copies of the response to the comments from NYSE Liquidity Program
filing also will be available for MKT LLC.4 August 17, 2016.
inspection and copying at the principal Section 19(b)(2) of the Act 5 provides
office of the Exchange. All comments that within 45 days of the publication of Pursuant to Section 19(b)(1) 1 of the
notice of the filing of a proposed rule Securities Exchange Act of 1934 (the
received will be posted without change;
change, or within such longer period up ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
the Commission does not edit personal
to 90 days as the Commission may notice is hereby given that on August 8,
identifying information from
designate if it finds such longer period 2016, New York Stock Exchange LLC
submissions. You should submit only (‘‘NYSE’’ or the ‘‘Exchange’’) filed with
to be appropriate and publishes its
information that you wish to make the Securities and Exchange
reasons for so finding, or as to which the
available publicly. All submissions self-regulatory organization consents, Commission (the ‘‘Commission’’) the
should refer to File Number SR– the Commission shall either approve the proposed rule change as described in
NASDAQ–2016–118 and should be proposed rule change, disapprove the Items I and II, below, which Items have
submitted on or before September 13, proposed rule change, or institute been prepared by the self-regulatory
2016. proceedings to determine whether the organization. The Commission is
For the Commission, by the Division of proposed rule change should be publishing this notice to solicit
Trading and Markets, pursuant to delegated disapproved. The 45th day after comments on the proposed rule change
authority.9 publication of the notice for this from interested persons.
Brent J. Fields, proposed rule change is August 21,
I. Self-Regulatory Organization’s
2016. The Commission is extending this
Secretary. Statement of the Terms of Substance of
45-day time period.
[FR Doc. 2016–20065 Filed 8–22–16; 8:45 am] the Proposed Rule Change
The Commission finds it appropriate
BILLING CODE 8011–01–P to designate a longer period within The Exchange proposes to extend the
which to take action on the proposed pilot period for the Exchange’s Retail
rule change so that it has sufficient time Liquidity Program (the ‘‘Retail Liquidity
to consider the comment received and Program’’ or the ‘‘Program’’), which is
the response to the comment regarding currently scheduled to expire on August
31, 2016, until December 31, 2016. The
1 15 U.S.C. 78s(b)(1).
2 17
proposed rule change is available on the
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 78198
Exchange’s Web site at www.nyse.com,
(June 30, 2016), 81 FR 44363. at the principal office of the Exchange,
sradovich on DSK3GMQ082PROD with NOTICES
4 See letter from Judith Shaw, President, North and at the Commission’s Public
American Securities Administrators Association, Reference Room.
Inc., to Brent J. Fields, Secretary, Securities and
Exchange Commission, dated August 3, 2016 and 6 Id.
letter from Elizabeth K. King, General Counsel and
7 17 CFR 200.30–3(a)(31).
Corporate Secretary, New York Stock Exchange to
1 15 U.S.C. 78s(b)(1).
Brent J. Fields, Secretary, SEC, dated August 12,
2016. 2 15 U.S.C. 78a.
9 17 CFR 200.30–3(a)(12). 5 15 U.S.C. 78s(b)(2). 3 17 CFR 240.19b–4.
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![57644 Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Notices
may designate a shorter time if such comments more efficiently, please use Dated: August 16, 2016.
action is consistent with the protection only one method. The Commission will Mark Walsh,
of investors and the public interest. The post all comments on the Commission’s Associate Administrator, Office of Investment
Exchange has asked the Commission to Internet Web site (http://www.sec.gov/ and Innovation.
waive the 30-day operative delay so that rules/sro.shtml). Copies of the [FR Doc. 2016–20032 Filed 8–22–16; 8:45 am]
the proposed rule change may become submission, all subsequent BILLING CODE 8025–01–P
operative before the expiration of the amendments, all written statements
current pilot period. The Commission with respect to the proposed rule
believes that waiving the 30-day change that are filed with the
operative delay is consistent with the DEPARTMENT OF STATE
Commission, and all written
protection of investors and the public communications relating to the [Public Notice: 9670]
interest, because waiver would allow proposed rule change between the
the pilot period to continue Commission and any person, other than Notice of Receipt of Application for a
uninterrupted after its current those that may be withheld from the Presidential Permit To Operate and
expiration date of August 31, 2016, public in accordance with the Maintain the Brownsville West Rail
thereby avoiding any potential investor provisions of 5 U.S.C. 552, will be Bypass International Bridge on the
confusion that could result from available for Web site viewing and U.S.-Mexico Border West of
temporary interruption in the pilot printing in the Commission’s Public Brownsville, Texas
program. For this reason, the Reference Room, 100 F Street NE.,
Commission hereby waives the 30-day AGENCY: Department of State.
Washington, DC 20549 on official
operative delay and designates the ACTION: Notice.
business days between the hours of
proposal operative upon filing.16
10:00 a.m. and 3:00 p.m. Copies of the SUMMARY: The Department of State
At any time within 60 days of the
filing also will be available for hereby gives notice that, on July 22,
filing of the proposed rule change, the
inspection and copying at the principal 2016, it received an application from the
Commission summarily may
office of the Exchange. All comments Union Pacific Railroad Company
temporarily suspend such rule change if
it appears to the Commission that such received will be posted without change; (UPRR) for a Presidential Permit to
action is necessary or appropriate in the the Commission does not edit personal operate and maintain the Brownsville
public interest, for the protection of identifying information from West Rail Bypass International Bridge.
investors, or otherwise in furtherance of submissions. You should submit only The current Presidential Permit for the
the purposes of the Act. If the information that you wish to make Brownsville West Rail Bypass
Commission takes such action, the available publicly. All submissions International Bridge is held by Cameron
Commission shall institute proceedings should refer to File Number SR–NYSE– County, Texas. The Department of
to determine whether the proposed rule 2016–54 and should be submitted on or State’s jurisdiction over this application
change should be approved or before September 13, 2016. is based upon Executive Order 11423 of
disapproved. For the Commission, by the Division of August 16, 1968, as amended. As
Trading and Markets, pursuant to delegated provided in E.O. 11423, the Department
IV. Solicitation of Comments is circulating this application to relevant
authority.17
Interested persons are invited to federal agencies for review and
Brent J. Fields,
submit written data, views, and comment. Under E.O. 11423, the
Secretary. Department has the responsibility to
arguments concerning the foregoing,
[FR Doc. 2016–20061 Filed 8–22–16; 8:45 am] determine, taking into account input
including whether the proposed rule
change is consistent with the Act. BILLING CODE 8011–01–P from these agencies and other
Comments may be submitted by any of stakeholders, whether transferring the
the following methods: Presidential Permit from Cameron
County to UPRR would serve the
Electronic Comments SMALL BUSINESS ADMINISTRATION national interest.
• Use the Commission’s Internet Interested members of the public are
comment form (http://www.sec.gov/ Notice of Surrender of License of invited to submit written comments
rules/sro.shtml); or Small Business Investment Company regarding this application on or before
• Send an email to rule-comments@ September 22, 2016 to the U.S.-Mexico
sec.gov. Please include File Number SR– Pursuant to the authority granted to Border Affairs Office, via email at WHA-
NYSE–2016–54 on the subject line. the United States Small Business BorderAffairs@state.gov or by mail at
Administration (‘‘SBA’’) under Section WHA/MEX—Room 3924, Department of
Paper Comments 309 of the Small Business Investment State, 2201 C St. NW., Washington, DC
• Send paper comments in triplicate Act of 1958, as amended, and Section 20520.
to Brent J. Fields, Secretary, Securities 107.1900 of the Small Business FOR FURTHER INFORMATION CONTACT:
and Exchange Commission, 100 F Street Administration Rules and Regulations, U.S.-Mexico Border Affairs Office, via
NE., Washington, DC 20549–1090. SBA by this notice declares null and email at WHA-BorderAffairs@state.gov;
All submissions should refer to File void the license to function as a small by phone at 202–647–9894; or by mail
Number SR–NYSE–2016–54. This file business investment company under the at WHA/MEX—Room 3924, Department
sradovich on DSK3GMQ082PROD with NOTICES
number should be included on the Small Business Investment Company of State, 2201 C St. NW., Washington,
subject line if email is used. To help the License No. 08/78–0166 issued to Vista DC 20520.
Commission process and review your Ventures Advantage, LP
SUPPLEMENTARY INFORMATION: The
United States Small Business application and supporting documents
16 For purposes only of waiving the 30-day
Administration. are available online at http://
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition, www.state.gov/p/wha/rt/permit/app/
and capital formation. See 15 U.S.C. 78c(f). 17 17 CFR 200.30–3(a)(12). upp/index.htm.
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Document Created: 2018-02-09 11:40:33
Document Modified: 2018-02-09 11:40:33
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 57642 |
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