81_FR_60206 81 FR 60037 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Liquidity Program Until December 31, 2016

81 FR 60037 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Liquidity Program Until December 31, 2016

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 169 (August 31, 2016)

Page Range60037-60038
FR Document2016-20884

Federal Register, Volume 81 Issue 169 (Wednesday, August 31, 2016) 
[Federal Register Volume 81, Number 169 (Wednesday, August 31, 2016)]
[Notices]
[Pages 60037-60038]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20884]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78677; File No. SR-NYSEArca-2013-107]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an 
Extension to Limited Exemption From Rule 612(c) of Regulation NMS in 
Connection With the Exchange's Retail Liquidity Program Until December 
31, 2016

August 25, 2016.
    On December 23, 2013, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted NYSE 
Arca, Inc. (``Exchange'') a limited exemption from the Sub-Penny Rule 
in connection with the operation of the Exchange's Retail Liquidity 
Program (``Program'').\2\ The limited exemption was granted 
concurrently with the Commission's approval of the Exchange's proposal 
to adopt the Program for a one-year pilot term.\3\ The exemption was 
granted coterminous with the effectiveness of the pilot Program; both 
the pilot Program and exemption are scheduled to expire on August 31, 
2016.\4\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 71176 (December 23, 
2013), 78 FR 79524 (December 30, 2013) (SR-NYSEArca-2013-107) 
(``Order'').
    \3\ See id.
    \4\ The pilot term of the Program was originally scheduled to 
end on April 14, 2015, but the Exchange initially extended the term 
through September 30, 2015, see Securities Exchange Act Release No. 
74572 (March 24, 2015), 80 FR 16705 (March 30, 2015) (NYSEArca-2015-
22), and then subsequently extended the term again through August 
31, 2016, see Securities Exchange Act Release Nos. 75994 (September 
28, 2015), 80 FR 59834 (October 2, 2015) (SR-NYSEArca-2015-84), 
77236 (Feb. 25, 2016), 81 FR 10943 (March 2, 2016) (SR-NYSEArca-
2016-30), and 77425 (March 23, 2016), 81 FR 17523 (March 29, 2016) 
(SR-NYSEArca-2016-47). Each time the pilot term of the Program was 
extended, the Commission granted the Exchange's request to also 
extend the Sub-Penny exemption through September 30, 2015, see 
Securities Exchange Act Release No. 74609 (March 30, 2015), 80 FR 
18272 (April 3, 2015), March 31, 2016, see Securities Exchange Act 
Release No. 34-76021 (September 29, 2015), 80 FR 60207 (October 5, 
2015), and August 31, 2016, see Securities Exchange Act Release No. 
34-77437 (March 24, 2016), 81 FR 17752 (March 30, 2016).
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    The Exchange now seeks to extend the exemption until December 31, 
2016.\5\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Program 
through the same date.\6\ In its request to extend the exemption, the 
Exchange notes that the participation in the Program has increased more 
recently. Accordingly, the Exchange has asked for additional time to 
allow itself and the Commission to analyze more robust data concerning 
the Program, which the Exchange committed to provide to the 
Commission.\7\ For this reason and the reasons stated in the Order 
originally granting the limited exemption, the Commission finds that 
extending the exemption, pursuant to its authority under Rule 612(c) of 
Regulation NMS, is appropriate in the public interest and consistent 
with the protection of investors.
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    \5\ See Letter from Martha Redding, Assistant Secretary, NYSE, 
to Brent J. Fields, Secretary, Securities and Exchange Commission, 
dated August 8, 2016.
    \6\ See Securities Exchange Act Release No. 78601 (August 17, 
2016), 81 FR 57632 (August 23, 2016) (SR-NYSEArca-2016-113).
    \7\ See Order, supra note 2, 78 FR at 79529.
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    THEREFORE, IT IS HEREBY ORDERED that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows it to accept and rank orders priced 
equal to or greater than $1.00 per share in increments of $0.001, in 
connection with the operation of its Retail Liquidity Program, until 
August 31, 2016.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the persons relying on the exemption that is the 
subject of this Order.


[[Page 60038]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(83).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-20884 Filed 8-30-16; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 169 / Wednesday, August 31, 2016 / Notices 60037 it appears to the Commission that such submissions. You should submit only The Exchange now seeks to extend action is necessary or appropriate in the information that you wish to make the exemption until December 31, public interest, for the protection of available publicly. 2016.5 The Exchange’s request was investors, or otherwise in furtherance of All submissions should refer to File made in conjunction with an the purposes of the Act. If the No. SR–CHX–2016–15 and should be immediately effective filing that extends Commission takes such action, the submitted on or before September 21, the operation of the Program through Commission shall institute proceedings 2016. the same date.6 In its request to extend under Section 19(b)(2)(B) of the Act 48 to For the Commission, by the Division of the exemption, the Exchange notes that determine whether the proposed rule Trading and Markets, pursuant to delegated the participation in the Program has should be approved or disapproved. authority.49 increased more recently. Accordingly, IV. Solicitation of Comments Robert W. Errett, the Exchange has asked for additional Deputy Secretary. time to allow itself and the Commission Interested persons are invited to submit written data, views and [FR Doc. 2016–20885 Filed 8–30–16; 8:45 am] to analyze more robust data concerning arguments concerning the foregoing, BILLING CODE 8011–01–P the Program, which the Exchange including whether the proposal is committed to provide to the consistent with the Act. Comments may Commission.7 For this reason and the be submitted by any of the following SECURITIES AND EXCHANGE reasons stated in the Order originally methods: COMMISSION granting the limited exemption, the Electronic Comments [Release No. 34–78677; File No. SR– Commission finds that extending the NYSEArca–2013–107] exemption, pursuant to its authority • Use the Commission’s Internet under Rule 612(c) of Regulation NMS, is comment form (http://www.sec.gov/ Self-Regulatory Organizations; NYSE appropriate in the public interest and rules/sro.shtml); or Arca, Inc.; Order Granting an consistent with the protection of • Send an email to rule-comments@ Extension to Limited Exemption From sec.gov. Please include File No. SR– investors. Rule 612(c) of Regulation NMS in CHX–2016–15 on the subject line. Connection With the Exchange’s Retail THEREFORE, IT IS HEREBY Liquidity Program Until December 31, ORDERED that, pursuant to Rule 612(c) Paper Comments 2016 of Regulation NMS, the Exchange is • Send paper comments in triplicate granted a limited exemption from Rule to Robert W. Errett, Deputy Secretary, August 25, 2016. 612 of Regulation NMS that allows it to Securities and Exchange Commission, On December 23, 2013, the Securities accept and rank orders priced equal to 100 F Street NE., Washington, DC and Exchange Commission or greater than $1.00 per share in 20549–1090. (‘‘Commission’’) issued an order increments of $0.001, in connection All submissions should refer to File No. pursuant to its authority under Rule with the operation of its Retail Liquidity SR–CHX–2016–15. This file number 612(c) of Regulation NMS (‘‘Sub-Penny Program, until August 31, 2016. should be included on the subject line Rule’’) 1 that granted NYSE Arca, Inc. if email is used. To help the (‘‘Exchange’’) a limited exemption from The limited and temporary exemption Commission process and review your the Sub-Penny Rule in connection with extended by this Order is subject to comments more efficiently, please use the operation of the Exchange’s Retail modification or revocation if at any time only one method. The Commission will Liquidity Program (‘‘Program’’).2 The the Commission determines that such post all comments on the Commission’s limited exemption was granted action is necessary or appropriate in Internet Web site (http://www.sec.gov/ concurrently with the Commission’s furtherance of the purposes of the rules/sro.shtml). Copies of the approval of the Exchange’s proposal to Securities Exchange Act of 1934. submission, all subsequent adopt the Program for a one-year pilot Responsibility for compliance with any amendments, all written statements term.3 The exemption was granted applicable provisions of the Federal with respect to the proposed rule coterminous with the effectiveness of securities laws must rest with the change that are filed with the the pilot Program; both the pilot persons relying on the exemption that is Commission, and all written Program and exemption are scheduled the subject of this Order. communications relating to the to expire on August 31, 2016.4 proposed rule changes between the 49 17 CFR 200.30–3(a)(12). Commission and any person, other than 1 17 CFR 242.612(c). those that may be withheld from the 2 See Securities Exchange Act Release No. 71176 public in accordance with the (December 23, 2013), 78 FR 79524 (December 30, provisions of 5 U.S.C. 552, will be 2013) (SR–NYSEArca–2013–107) (‘‘Order’’). Penny exemption through September 30, 2015, see available for Web site viewing and 3 See id. Securities Exchange Act Release No. 74609 (March printing in the Commission’s Public 4 The pilot term of the Program was originally 30, 2015), 80 FR 18272 (April 3, 2015), March 31, Reference Room, 100 F Street NE., scheduled to end on April 14, 2015, but the 2016, see Securities Exchange Act Release No. 34– Exchange initially extended the term through Washington, DC 20549 on official September 30, 2015, see Securities Exchange Act 76021 (September 29, 2015), 80 FR 60207 (October business days between the hours of Release No. 74572 (March 24, 2015), 80 FR 16705 5, 2015), and August 31, 2016, see Securities 10:00 a.m. and 3:00 p.m. Copies of the (March 30, 2015) (NYSEArca–2015–22), and then Exchange Act Release No. 34–77437 (March 24, subsequently extended the term again through 2016), 81 FR 17752 (March 30, 2016). filing also will be available for mstockstill on DSK3G9T082PROD with NOTICES August 31, 2016, see Securities Exchange Act 5 See Letter from Martha Redding, Assistant inspection and copying at the principal Release Nos. 75994 (September 28, 2015), 80 FR Secretary, NYSE, to Brent J. Fields, Secretary, office of the CHX. All comments 59834 (October 2, 2015) (SR–NYSEArca–2015–84), Securities and Exchange Commission, dated August received will be posted without change; 77236 (Feb. 25, 2016), 81 FR 10943 (March 2, 2016) 8, 2016. the Commission does not edit personal (SR–NYSEArca–2016–30), and 77425 (March 23, 6 See Securities Exchange Act Release No. 78601 2016), 81 FR 17523 (March 29, 2016) (SR– identifying information from NYSEArca–2016–47). Each time the pilot term of (August 17, 2016), 81 FR 57632 (August 23, 2016) the Program was extended, the Commission granted (SR–NYSEArca–2016–113). 48 15 U.S.C. 78s(b)(2)(B). the Exchange’s request to also extend the Sub- 7 See Order, supra note 2, 78 FR at 79529. VerDate Sep<11>2014 21:59 Aug 30, 2016 Jkt 238001 PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 E:\FR\FM\31AUN1.SGM 31AUN1

60038 Federal Register / Vol. 81, No. 169 / Wednesday, August 31, 2016 / Notices For the Commission, by the Division of The Exchange has prepared summaries, effectuate an opening electronically. Trading and Markets, pursuant to delegated set forth in sections A, B, and C below, The proposed rule changes are designed authority.8 of the most significant parts of such to preserve the Exchange’s existing Robert W. Errett, statements. model, which values human touch Deputy Secretary. when opening securities with A. Self-Regulatory Organization’s [FR Doc. 2016–20884 Filed 8–30–16; 8:45 am] significant price or volume disparity, Statement of the Purpose of, and the BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule while at the same time promoting Change automated measures to have as many securities open as close to 9:30 a.m. as SECURITIES AND EXCHANGE 1. Purpose feasible, even during extreme market- COMMISSION The Exchange proposes to amend its wide volatility. [Release No. 34–78673; File No. SR– rules relating to pre-opening indications These proposed changes are based on NYSEMKT–2016–79] and opening procedures to promote recent amendments to the rules of the greater efficiency and transparency at New York Stock Exchange LLC Self-Regulatory Organizations; NYSE the open of trading on the Exchange. In MKT LLC; Notice of Filing and (‘‘NYSE’’).4 particular, the Exchange proposes to: Immediate Effectiveness of Proposed • Make changes to the rules related to Background Rule Change Amending Its Rules the pre-opening indication process by: Relating to Pre-Opening Indications Æ Amending Rules 15—Equities The Exchange’s current pre-opening and Opening Procedures (‘‘Rule 15’’) and 123D—Equities (‘‘Rule procedures are outlined in Rules 15 August 25, 2016. 123D’’) to consolidate the requirements (Pre-Opening Indications), 48 for publication of pre-open indications (Exemptive Relief—Extreme Market Pursuant to Section 19(b)(1) 1 of the in a single rule (Rule 15); Volatility Condition), and 123D Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Æ changing the conditions in which a (Openings and Halts in Trading). notice is hereby given that on August Designated Market Maker (‘‘DMM’’) is Rule 15(a) provides that if the opening 16, 2016, NYSE MKT LLC (the required to publish a pre-opening transaction in a security will be at a ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with indication in a security to an anticipated price that represents a change of more the Securities and Exchange 5% move from a security’s reference than the ‘‘applicable price change’’ Commission (the ‘‘Commission’’) the price and, during extreme market-wide specified in the Rule,5 the DMM proposed rule change as described in volatility, an anticipated 10% from a arranging the opening transaction or the Items I and II, below, which Items have security’s reference price; and Æ providing for the CEO of the Exchange shall issue a pre-opening been prepared by the self-regulatory indication (‘‘Rule 15 Indication’’), Exchange to temporarily suspend the organization. The Commission is which represents a price range in which requirement to publish pre-opening publishing this notice to solicit a security is anticipated to open. indications. comments on the proposed rule change • Make changes to Rule 123D related A Rule 15 Indication is published on from interested persons. to the opening process by: the Exchange’s proprietary data feeds I. Self-Regulatory Organization’s Æ Incorporating all procedures only and includes the security and the Statement of the Terms of Substance of relating to openings, other than pre- price range within which the DMM the Proposed Rule Change opening indications, in Rule 123D; and anticipates the opening transaction will The Exchange proposes to amend its Æ Specifying that DMMs may effect occur, and would include any orally- rules relating to pre-opening indications an opening of a security electronically represented Floor broker interest for the and opening procedures to promote within specified percentage and volume open. The applicable price ranges for greater efficiency and transparency at parameters, which would be doubled determining whether to publish a Rule the open of trading on the Exchange. during extreme market-wide volatility; 15 Indication are based on five different The proposed rule change is available and price buckets and are expressed in on the Exchange’s Web site at Æ providing for the CEO of the Exchange to temporarily suspend price dollar and percentage parameters: www.nyse.com, at the principal office of the Exchange, and at the Commission’s and volume limitations for a DMM 4 See Securities Exchange Act Release No. 78228 Public Reference Room. automated open or the requirement for (July 5, 2016), 81 FR 44907 (July 11, 2016) (SR– prior Floor Approval before opening or NYSE–2016–24) (‘‘NYSE Approval Order’’); and II. Self-Regulatory Organization’s reopening a security. Securities Exchange Act Release No. 78512 (August Statement of the Purpose of, and • Delete Rule 48—Equities (‘‘Rule 9, 2016) (SR–NYSE–2016–53) (Notice of Filing). Statutory Basis for, the Proposed Rule 48’’). 5 In current Rule 15, other than for certain Change • Make conforming changes to Rules American Depositary Receipts (‘‘ADRs’’), the ‘‘applicable price change’’ is measured from a In its filing with the Commission, the 80C—Equities (‘‘Rule 80C’’) and 9217. security’s last reported sale price on the Exchange, self-regulatory organization included The Exchange believes that the the security’s offering price in the case of an initial statements concerning the purpose of, proposed changes will enhance public offering (‘‘IPO’’), or the security’s last and basis for, the proposed rule change transparency regarding the Exchange’s reported sale price on the market from which it is opening process by specifying new being transferred. For an ADR where the trading and discussed any comments it received day of the underlying security in the primary parameters for how the opening at the mstockstill on DSK3G9T082PROD with NOTICES on the proposed rule change. The text foreign market for the ADR concludes after the of those statements may be examined at Exchange would be effectuated on previous day’s trading in the U.S. has ended, the the places specified in Item IV below. trading days experiencing extreme ‘‘applicable price change’’ is measured from closing market-wide volatility, which would price of the primary foreign market. For an ADR include both additional information where the primary foreign market on which the 8 17 CFR 200.30–3(a)(83). underlying security is open for trading at the time 1 15 U.S.C. 78s(b)(1). before the open through the use of new of the opening of the Exchange, the ‘‘applicable 2 15 U.S.C. 78a. parameters for pre-opening indications price change’’ is measured from parity with the last 3 17 CFR 240.19b–4. and expanded ability for DMMs to sale price of the underlying security. VerDate Sep<11>2014 21:59 Aug 30, 2016 Jkt 238001 PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 E:\FR\FM\31AUN1.SGM 31AUN1


Document Created: 2018-02-02 12:14:54
Document Modified: 2018-02-02 12:14:54
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 60037 
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