81 FR 61266 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 9217 To Add a Provision and Related Fines Addressing Trade-Through Violations
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 172 (September 6, 2016)
Federal Register Volume 81, Issue 172 (September 6, 2016)
| Page Range | 61266-61268 | |
| FR Document | 2016-21256 |
[Federal Register Volume 81, Number 172 (Tuesday, September 6, 2016)] [Notices] [Pages 61266-61268] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-21256] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78721; File No. SR-NYSEMKT-2016-75] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 9217 To Add a Provision and Related Fines Addressing Trade-Through Violations August 30, 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 17, 2016, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 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 [[Page 61267]] 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 the Substance of the Proposed Rule Change The Exchange proposes to amend Rule 9217 to add a provision and related fines addressing trade-through violations. 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the filing is to amend Rule 9217 (Violations Appropriate for Disposition Under Rule 9216(b)) to add a provision and related fines addressing trade-throughs. The proposed amendment would correct an oversight in not including trade-throughs when the Exchange adopted Rule 9217 in connection with the Options Order Protection and Locked/Crossed Market Plan (the ``Linkage Plan''). When the Linkage Plan was adopted in 2009, the Exchange filed and received approval for conforming rules,\4\ including modifications to Rule 476A (Imposition of Fines for Minor Violation(s) of Rules) to provide for certain violations of Rule 990NY, Rule 991NY, and Rule 992NY to be enforced under the Minor Rule Plan (``MRP'').\5\ However, the Exchange did not adopt a provision as part of the MRP regarding the avoidance of trade-throughs as required by Rule 991NY(a). Thus, when the Exchange adopted Rule 9217, it did not include violations of trade- throughs, which was likely an oversight because the Exchange simply ``retain[ed] its currently applicable list of minor rule violations and accompanying fine levels.'' \6\ The Exchange notes that the rules of other options exchanges, including the BOX Options Exchange LLC (``BOX'') and Chicago Board Options Exchange (``CBOE''), include as part of their minor rule plans provisions and related fines for trade- through violations.\7\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 60520 (August 18, 2009), 74 FR 43176 (August 26, 2009) (SR-NYSEAmex-2009-19). \5\ The Exchange's MRP fosters compliance with applicable rules and also helps to reduce the number and extent of rule violations committed by ATP Holders and associated persons. The prompt imposition of a financial penalty helps to quickly educate and improve the conduct of ATP Holders and associated persons that have engaged in inadvertent or otherwise minor violations of the Exchange's rules. By promptly imposing a meaningful financial penalty for such violations, the MRP focuses on correcting conduct before it gives rise to more serious enforcement action. \6\ See Securities Exchange Act Release No. 77241 (February 26, 2016), 81 FR 11311 (March 3, 2016) (SR-NYSEMKT-2016-30). The Exchange is not proposing to amend Rule 476A, which is part of Section 9A, Legacy Disciplinary Rules, because that rule applies ``only to a proceeding for which a Charge Memorandum has been filed with the hearing board under Rule 476(d) prior to April 15, 2016, until such proceeding is final; otherwise, the Rule 9000 Series shall apply.'' See Rule 476A (emphasis added). \7\ See, e.g., Securities Exchange Act Release Nos. 69259 (March 29, 2013), 78 FR 20706 (April 5, 2013) (SR-BOX-2013-17); 62602 (July 29, 2010) (regarding BOX Rule 12140(13); [sic] 75 FR 47672 (August 6, 2010) (SR-CBOE-2010-69) (regarding [sic] and CBOE Rule 17.50(g)(12)). --------------------------------------------------------------------------- To address this oversight, and to align with the rules of other options exchanges, the Exchange proposes to amend Rule 9217 to adopt ``[f]ailure to comply with the requirements for avoidance of trade- throughs set forth in Rule 991NY(a)'' as MRP Violation 35 and to add provision 35 to the Recommended Fine Schedule. As proposed, when an ATP Holder engages in a pattern or practice of trading through better prices available on other exchanges, the Exchange would recommend a 1st Level Fine of $500; a 2nd Level Fine of $1,000; and a 3rd Level Fine of $2,500. The Exchange notes that these fines are consistent with those adopted by competing options exchanges.\8\ --------------------------------------------------------------------------- \8\ See supra note 7. --------------------------------------------------------------------------- 2. Statutory Basis The proposed rule change is consistent with Section 6(b) \9\ of the Securities Exchange Act of 1934 (the ``Act''), in general, and furthers the objectives of Section 6(b)(5),\10\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system. The proposed rule change is also consistent with Sections 6(b)(6) and 6(b)(7) of the Act because it would promote the Exchange's ability to appropriately discipline its market participants and provide fair procedures when addressing violations of Exchange rules that are deemed by the Exchange to be minor in nature.\11\ --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). \11\ 15 U.S.C. 78f(b)(6) and (7). --------------------------------------------------------------------------- The proposed change would foster cooperation and coordination with persons engaged in facilitating transactions in securities because addressing violations of trade-throughs in Rule 9217 would align Exchange rules with rules of other options exchanges that likewise have trade-throughs as part of their minor rule plans.\12\ In addition, the Exchange believes that the proposed rule change would promote the efficient use and reasonable allocation of Exchange resources such that trade-through violations could be dealt with via the MRP allowing the Exchange to devote more time and effort to more serious violations. The proposed change would also strengthen the Exchange's ability to carry out its oversight responsibilities as a self-regulatory organization and reinforce its enforcement functions. Further, the Exchange believes the proposal would provide notice to, and fair procedures for the disciplining of, ATP Holders and persons associated with ATP Holders for violations of trade-throughs and would, in turn, protect investors and the investing public. The proposed changes are non-discriminatory in that they would be applied equally to all ATP Holders in a similar situation. The proposed changes also permit the Exchange to levy progressively larger fines against a repeat offender, in a manner and an amount consistent with those applied for violations on other markets.\13\ --------------------------------------------------------------------------- \12\ See supra note 7. \13\ See supra note 7. --------------------------------------------------------------------------- In addition, the proposed changes would promote consistency in minor rule violations and respective SRO reporting obligations, resulting in less burdensome and more efficient regulatory compliance for common permit holders. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change would impose [[Page 61268]] any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change would align Exchange rules with rules of other options exchanges and would therefore promote consistency in minor rule violations and respective SRO reporting obligations, resulting in less burdensome and more efficient regulatory compliance and facilitating performance of regulatory functions.\14\ The proposed rule change is not intended to address competitive issues, but rather it is designed to provide notice to, and fair procedures for the disciplining of, ATP Holders and persons associated with ATP Holders for violations of trade-throughs. --------------------------------------------------------------------------- \14\ See supra note 7. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \15\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\16\ --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(iii). \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change 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) normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \17\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay so that the proposed rule change will become operative on filing. The Exchange stated that the proposed rule change would allow the Exchange to align its rules with those of competing options exchanges, without delay, and would also strengthen the Exchange's ability to carry out its oversight responsibilities as a self-regulatory organization and reinforce its enforcement functions. The Exchange also stated that waiver of the operative delay would promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. For these reasons, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission designates the proposed rule change to be operative upon filing.\18\ --------------------------------------------------------------------------- \17\ 17 CFR 240.19b-4(f)(6)(iii). \18\ For purposes only of waiving the 30-day operative delay, the Commission also 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 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-NYSEMKT-2016-75 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEMKT-2016-75. 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 such 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-NYSEMKT-2016-75, and should be submitted on or before September 27, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-21256 Filed 9-2-16; 8:45 am] BILLING CODE 8011-01-P
![61266 Federal Register / Vol. 81, No. 172 / Tuesday, September 6, 2016 / Notices
3. Shares will be purchased and shares beyond the limits of section to the Feeder Fund beyond the
redeemed in Creation Units and 12(d)(1)(A) of the Act; and the Funds, limitations in section 12(d)(1)(B).
generally on an in-kind basis. Except and any principal underwriter for the 10. Section 6(c) of the Act permits the
where the purchase or redemption will Funds, and/or any broker or dealer Commission to exempt any persons or
include cash under the limited registered under the Exchange Act, to transactions from any provision of the
circumstances specified in the sell shares to Funds of Funds beyond Act if such exemption is necessary or
application, purchasers will be required the limits of section 12(d)(1)(B) of the appropriate in the public interest and
to purchase Creation Units by Act. The application’s terms and consistent with the protection of
depositing specified instruments conditions are designed to, among other investors and the purposes fairly
(‘‘Deposit Instruments’’), and things, help prevent any potential (i) intended by the policy and provisions of
shareholders redeeming their shares undue influence over a Fund through the Act. Section 12(d)(1)(J) of the Act
will receive specified instruments control or voting power, or in provides that the Commission may
(‘‘Redemption Instruments’’). The connection with certain services, exempt any person, security, or
Deposit Instruments and the transactions, and underwritings, (ii) transaction, or any class or classes of
Redemption Instruments will each excessive layering of fees, and (iii) persons, securities, or transactions, from
correspond pro rata to the positions in overly complex fund structures, which any provision of section 12(d)(1) if the
the Fund’s portfolio (including cash are the concerns underlying the limits exemption is consistent with the public
positions) except as specified in the in sections 12(d)(1)(A) and (B) of the interest and the protection of investors.
application. Act. Section 17(b) of the Act authorizes the
4. Because shares will not be 8. Applicants request an exemption Commission to grant an order
individually redeemable, applicants from sections 17(a)(1) and 17(a)(2) of the permitting a transaction otherwise
request an exemption from section Act to permit persons that are Affiliated prohibited by section 17(a) if it finds
5(a)(1) and section 2(a)(32) of the Act Persons, or Second-Tier Affiliates, of the that (a) the terms of the proposed
that would permit the Funds to register Funds, solely by virtue of certain transaction are fair and reasonable and
as open-end management investment ownership interests, to effectuate do not involve overreaching on the part
companies and issue shares that are purchases and redemptions in-kind. The of any person concerned; (b) the
redeemable in Creation Units only. deposit procedures for in-kind proposed transaction is consistent with
5. Applicants also request an the policies of each registered
purchases of Creation Units and the
exemption from section 22(d) of the Act investment company involved; and (c)
redemption procedures for in-kind
and rule 22c–1 under the Act as the proposed transaction is consistent
redemptions of Creation Units will be
secondary market trading in shares will with the general purposes of the Act.
the same for all purchases and
take place at negotiated prices, not at a For the Commission, by the Division of
redemptions and Deposit Instruments
current offering price described in a Investment Management, under delegated
and Redemption Instruments will be
Fund’s prospectus, and not at a price authority.
valued in the same manner as those
based on NAV. Applicants state that (a) Robert W. Errett,
Portfolio Positions currently held by the
secondary market trading in shares does Deputy Secretary.
Funds. Applicants also seek relief from
not involve a Fund as a party and will
not result in dilution of an investment the prohibitions on affiliated [FR Doc. 2016–21247 Filed 9–2–16; 8:45 am]
in shares, and (b) to the extent different transactions in section 17(a) to permit a BILLING CODE 8011–01–P
prices exist during a given trading day, Fund to sell its shares to and redeem its
or from day to day, such variances occur shares from a Fund of Funds, and to
engage in the accompanying in-kind SECURITIES AND EXCHANGE
as a result of third-party market forces, COMMISSION
such as supply and demand. Therefore, transactions with the Fund of Funds.2
applicants assert that secondary market The purchase of Creation Units by a [Release No. 34–78721; File No. SR–
transactions in shares will not lead to Fund of Funds directly from a Fund will NYSEMKT–2016–75]
discrimination or preferential treatment be accomplished in accordance with the
policies of the Fund of Funds and will Self-Regulatory Organizations; NYSE
among purchasers. Finally, applicants
be based on the NAVs of the Funds. MKT LLC; Notice of Filing and
represent that share market prices will
9. Applicants also request relief to Immediate Effectiveness of Proposed
be disciplined by arbitrage
permit a Feeder Fund to acquire shares Rule Change Amending Rule 9217 To
opportunities, which should prevent
of another registered investment Add a Provision and Related Fines
shares from trading at a material
company managed by the Adviser Addressing Trade-Through Violations
discount or premium from NAV.
6. With respect to Funds that hold having substantially the same August 30, 2016.
non-U.S. Portfolio Positions and that investment objectives as the Feeder Pursuant to Section 19(b)(1) 1 of the
effect creations and redemptions of Fund (‘‘Master Fund’’) beyond the Securities Exchange Act of 1934 (the
Creation Units in kind, applicants limitations in section 12(d)(1)(A) and ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
request relief from the requirement permit the Master Fund, and any notice is hereby given that on August
imposed by section 22(e) in order to principal underwriter for the Master 17, 2016, NYSE MKT LLC (the
allow such Funds to pay redemption Fund, to sell shares of the Master Fund ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
proceeds within fifteen calendar days the Securities and Exchange
following the tender of Creation Units 2 The requested relief would apply to direct sales
Commission (the ‘‘Commission’’) the
for redemption. Applicants assert that of shares in Creation Units by a Fund to a Fund of
mstockstill on DSK3G9T082PROD with NOTICES
Funds and redemptions of those shares. Applicants, proposed rule change as described in
the requested relief would not be moreover, are not seeking relief from section 17(a) Items I and II below, which Items have
inconsistent with the spirit and intent of for, and the requested relief will not apply to, been prepared by the self-regulatory
section 22(e) to prevent unreasonable, transactions where a Fund could be deemed an organization. The Commission is
undisclosed or unforeseen delays in the Affiliated Person, or a Second-Tier Affiliate, of a
Fund of Funds because an Adviser or an entity
actual payment of redemption proceeds. controlling, controlled by or under common control
1 15 U.S.C. 78s(b)(1).
7. Applicants request an exemption to with an Adviser provides investment advisory 2 15 U.S.C. 78a.
permit Funds of Funds to acquire Fund services to that Fund of Funds. 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 81, No. 172 / Tuesday, September 6, 2016 / Notices 61267
publishing this notice to solicit However, the Exchange did not adopt a cooperation and coordination with
comments on the proposed rule change provision as part of the MRP regarding persons engaged in facilitating
from interested persons. the avoidance of trade-throughs as transactions in securities, and to remove
required by Rule 991NY(a). Thus, when impediments to and perfect the
I. Self-Regulatory Organization’s
the Exchange adopted Rule 9217, it did mechanisms of a free and open market
Statement of the Terms of the Substance not include violations of trade-throughs, and a national market system. The
of the Proposed Rule Change which was likely an oversight because proposed rule change is also consistent
The Exchange proposes to amend the Exchange simply ‘‘retain[ed] its with Sections 6(b)(6) and 6(b)(7) of the
Rule 9217 to add a provision and related currently applicable list of minor rule Act because it would promote the
fines addressing trade-through violations and accompanying fine Exchange’s ability to appropriately
violations. The proposed rule change is levels.’’ 6 The Exchange notes that the discipline its market participants and
available on the Exchange’s Web site at rules of other options exchanges, provide fair procedures when
www.nyse.com, at the principal office of including the BOX Options Exchange addressing violations of Exchange rules
the Exchange, and at the Commission’s LLC (‘‘BOX’’) and Chicago Board that are deemed by the Exchange to be
Public Reference Room. Options Exchange (‘‘CBOE’’), include as minor in nature.11
part of their minor rule plans provisions The proposed change would foster
II. Self-Regulatory Organization’s and related fines for trade-through cooperation and coordination with
Statement of the Purpose of, and violations.7 persons engaged in facilitating
Statutory Basis for, the Proposed Rule To address this oversight, and to align transactions in securities because
Change with the rules of other options addressing violations of trade-throughs
In its filing with the Commission, the exchanges, the Exchange proposes to in Rule 9217 would align Exchange
self-regulatory organization included amend Rule 9217 to adopt ‘‘[f]ailure to rules with rules of other options
statements concerning the purpose of, comply with the requirements for exchanges that likewise have trade-
and basis for, the proposed rule change avoidance of trade-throughs set forth in throughs as part of their minor rule
and discussed any comments it received Rule 991NY(a)’’ as MRP Violation 35 plans.12 In addition, the Exchange
on the proposed rule change. The text and to add provision 35 to the believes that the proposed rule change
of those statements may be examined at Recommended Fine Schedule. As would promote the efficient use and
the places specified in Item IV below. proposed, when an ATP Holder engages reasonable allocation of Exchange
The Exchange has prepared summaries, in a pattern or practice of trading resources such that trade-through
set forth in sections A, B, and C below, through better prices available on other violations could be dealt with via the
of the most significant parts of such exchanges, the Exchange would MRP allowing the Exchange to devote
statements. recommend a 1st Level Fine of $500; a more time and effort to more serious
2nd Level Fine of $1,000; and a 3rd violations. The proposed change would
A. Self-Regulatory Organization’s Level Fine of $2,500. The Exchange also strengthen the Exchange’s ability to
Statement of the Purpose of, and notes that these fines are consistent with carry out its oversight responsibilities as
Statutory Basis for, the Proposed Rule those adopted by competing options a self-regulatory organization and
Change exchanges.8 reinforce its enforcement functions.
1. Purpose 2. Statutory Basis Further, the Exchange believes the
proposal would provide notice to, and
The purpose of the filing is to amend The proposed rule change is fair procedures for the disciplining of,
Rule 9217 (Violations Appropriate for consistent with Section 6(b) 9 of the ATP Holders and persons associated
Disposition Under Rule 9216(b)) to add Securities Exchange Act of 1934 (the with ATP Holders for violations of
a provision and related fines addressing ‘‘Act’’), in general, and furthers the trade-throughs and would, in turn,
trade-throughs. The proposed objectives of Section 6(b)(5),10 in protect investors and the investing
amendment would correct an oversight particular, in that it is designed to public. The proposed changes are non-
in not including trade-throughs when prevent fraudulent and manipulative discriminatory in that they would be
the Exchange adopted Rule 9217 in acts and practices, to promote just and applied equally to all ATP Holders in a
connection with the Options Order equitable principles of trade, to foster similar situation. The proposed changes
Protection and Locked/Crossed Market
also permit the Exchange to levy
Plan (the ‘‘Linkage Plan’’). Exchange’s rules. By promptly imposing a
progressively larger fines against a
When the Linkage Plan was adopted meaningful financial penalty for such violations,
the MRP focuses on correcting conduct before it repeat offender, in a manner and an
in 2009, the Exchange filed and received
gives rise to more serious enforcement action. amount consistent with those applied
approval for conforming rules,4 6 See Securities Exchange Act Release No. 77241
for violations on other markets.13
including modifications to Rule 476A (February 26, 2016), 81 FR 11311 (March 3, 2016) In addition, the proposed changes
(Imposition of Fines for Minor (SR–NYSEMKT–2016–30). The Exchange is not
would promote consistency in minor
Violation(s) of Rules) to provide for proposing to amend Rule 476A, which is part of
Section 9A, Legacy Disciplinary Rules, because that rule violations and respective SRO
certain violations of Rule 990NY, Rule rule applies ‘‘only to a proceeding for which a reporting obligations, resulting in less
991NY, and Rule 992NY to be enforced Charge Memorandum has been filed with the burdensome and more efficient
under the Minor Rule Plan (‘‘MRP’’).5 hearing board under Rule 476(d) prior to April 15,
regulatory compliance for common
2016, until such proceeding is final; otherwise, the
4 See Securities Exchange Act Release No. 60520 Rule 9000 Series shall apply.’’ See Rule 476A permit holders.
(August 18, 2009), 74 FR 43176 (August 26, 2009) (emphasis added).
B. Self-Regulatory Organization’s
mstockstill on DSK3G9T082PROD with NOTICES
7 See, e.g., Securities Exchange Act Release Nos.
(SR–NYSEAmex–2009–19).
5 The Exchange’s MRP fosters compliance with 69259 (March 29, 2013), 78 FR 20706 (April 5, Statement on Burden on Competition
2013) (SR–BOX–2013–17); 62602 (July 29, 2010)
applicable rules and also helps to reduce the
(regarding BOX Rule 12140(13); [sic] 75 FR 47672
The Exchange does not believe that
number and extent of rule violations committed by the proposed rule change would impose
ATP Holders and associated persons. The prompt (August 6, 2010) (SR–CBOE–2010–69) (regarding
imposition of a financial penalty helps to quickly [sic] and CBOE Rule 17.50(g)(12)).
8 See supra note 7. 11 15 U.S.C. 78f(b)(6) and (7).
educate and improve the conduct of ATP Holders
9 15 U.S.C. 78f(b). 12 See supra note 7.
and associated persons that have engaged in
inadvertent or otherwise minor violations of the 10 15 U.S.C. 78f(b)(5). 13 See supra note 7.
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![61268 Federal Register / Vol. 81, No. 172 / Tuesday, September 6, 2016 / Notices
any burden on competition that is not ability to carry out its oversight amendments, all written statements
necessary or appropriate in furtherance responsibilities as a self-regulatory with respect to the proposed rule
of the purposes of the Act. The organization and reinforce its change that are filed with the
proposed change would align Exchange enforcement functions. The Exchange Commission, and all written
rules with rules of other options also stated that waiver of the operative communications relating to the
exchanges and would therefore promote delay would promote regulatory clarity proposed rule change between the
consistency in minor rule violations and and consistency, thereby reducing Commission and any person, other than
respective SRO reporting obligations, burdens on the marketplace and those that may be withheld from the
resulting in less burdensome and more facilitating investor protection. For public in accordance with the
efficient regulatory compliance and these reasons, the Commission believes provisions of 5 U.S.C. 552, will be
facilitating performance of regulatory that waiver of the 30-day operative available for Web site viewing and
functions.14 The proposed rule change delay is consistent with the protection printing in the Commission’s Public
is not intended to address competitive of investors and the public interest. Reference Room, 100 F Street NE.,
issues, but rather it is designed to Therefore, the Commission designates Washington, DC 20549 on official
provide notice to, and fair procedures the proposed rule change to be operative business days between the hours of
for the disciplining of, ATP Holders and upon filing.18 10:00 a.m. and 3:00 p.m. Copies of such
persons associated with ATP Holders At any time within 60 days of the filing also will be available for
for violations of trade-throughs. filing of such proposed rule change, the inspection and copying at the principal
Commission summarily may office of the Exchange. All comments
C. Self-Regulatory Organization’s temporarily suspend such rule change if received will be posted without change;
Statement on Comments on the it appears to the Commission that such the Commission does not edit personal
Proposed Rule Change Received From action is necessary or appropriate in the identifying information from
Members, Participants, or Others public interest, for the protection of submissions. You should submit only
No written comments were solicited investors, or otherwise in furtherance of information that you wish to make
or received with respect to the proposed the purposes of the Act. If the available publicly. All submissions
rule change. Commission takes such action, the should refer to File Number SR–
III. Date of Effectiveness of the Commission shall institute proceedings NYSEMKT–2016–75, and should be
Proposed Rule Change and Timing for to determine whether the proposed rule submitted on or before September 27,
Commission Action change should be approved or 2016.
disapproved. For the Commission, by the Division of
Because the foregoing proposed rule
IV. Solicitation of Comments Trading and Markets, pursuant to delegated
change does not (i) significantly affect authority.19
the protection of investors or the public Interested persons are invited to Robert W. Errett,
interest; (ii) impose any significant submit written data, views, and
burden on competition; and (iii) become Deputy Secretary.
arguments concerning the foregoing,
operative for 30 days from the date on [FR Doc. 2016–21256 Filed 9–2–16; 8:45 am]
including whether the proposed rule
which it was filed, or such shorter time change is consistent with the Act. BILLING CODE 8011–01–P
as the Commission may designate, it has Comments may be submitted by any of
become effective pursuant to Section the following methods:
19(b)(3)(A)(iii) of the Act 15 and SECURITIES AND EXCHANGE
subparagraph (f)(6) of Rule 19b–4 Electronic Comments COMMISSION
thereunder.16 • Use the Commission’s Internet [Release No. 34–78727; File No. SR–
A proposed rule change filed under comment form (http://www.sec.gov/ NYSEArca–2016–96]
Rule 19b–4(f)(6) normally does not rules/sro.shtml); or
become operative for 30 days after the • Send an email to rule-comments@ Self-Regulatory Organizations; NYSE
date of its filing. However, Rule 19b– sec.gov. Please include File Number SR– Arca, Inc.; Notice of Designation of a
4(f)(6)(iii) 17 permits the Commission to NYSEMKT–2016–75 on the subject line. Longer Period for Commission Action
designate a shorter time if such action on Proposed Rule Change To Amend
Paper Comments NYSE Arca Equities Rule 8.700 and To
is consistent with the protection of
investors and the public interest. The • Send paper comments in triplicate List and Trade Shares of the Managed
Exchange has requested that the to Secretary, Securities and Exchange Emerging Markets Trust Under
Commission waive the 30-day operative Commission, 100 F Street NE., Proposed Amended NYSE Arca
delay so that the proposed rule change Washington, DC 20549–1090. Equities Rule 8.700
will become operative on filing. The All submissions should refer to File
August 30, 2016.
Exchange stated that the proposed rule Number SR–NYSEMKT–2016–75. This
On July 1, 2016, NYSE Arca, Inc. filed
change would allow the Exchange to file number should be included on the
with the Securities and Exchange
align its rules with those of competing subject line if email is used. To help the
Commission (‘‘Commission’’), pursuant
options exchanges, without delay, and Commission process and review your to section 19(b)(1) of the Securities
would also strengthen the Exchange’s comments more efficiently, please use Exchange Act of 1934 (‘‘Act’’) 1 and Rule
only one method. The Commission will 19b–4 thereunder,2 a proposed rule
14 See supra note 7. post all comments on the Commission’s change to amend NYSE Arca Equities
15 15 U.S.C. 78s(b)(3)(A)(iii). Internet Web site (http://www.sec.gov/
mstockstill on DSK3G9T082PROD with NOTICES
16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Rule 8.700 to permit the use of swaps
rules/sro.shtml). Copies of the on equity indices, fixed income indices,
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file submission, all subsequent commodity indices, commodities or
the proposed rule change at least five business days interest rates, and to list and trade
prior to the date of filing of the proposed rule 18 For purposes only of waiving the 30-day
change, or such shorter time as designated by the operative delay, the Commission also has
19 17 CFR 200.30–3(a)(12).
Commission. The Exchange has satisfied this considered the proposed rule’s impact on
requirement. 1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
17 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
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Document Created: 2018-02-09 12:04:21
Document Modified: 2018-02-09 12:04:21
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 61266 |
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