81 FR 63818 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.46 To Modify Certain Data Collection Requirements of the Regulation NMS Plan To Implement a Tick Size Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 180 (September 16, 2016)
Federal Register Volume 81, Issue 180 (September 16, 2016)
| Page Range | 63818-63821 | |
| FR Document | 2016-22253 |
[Federal Register Volume 81, Number 180 (Friday, September 16, 2016)] [Notices] [Pages 63818-63821] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-22253] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78814; File No. SR-NYSEARCA-2016-124] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.46 To Modify Certain Data Collection Requirements of the Regulation NMS Plan To Implement a Tick Size Pilot Program September 12, 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 29, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') 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 amend Rule 7.46 to modify certain data collection requirements of the Regulation NMS Plan to Implement a Tick Size Pilot Program. 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 On August 25, 2014, NYSE Arca, and several other self-regulatory organizations (the ``Participants'') filed with the Commission, pursuant to Section 11A of the Act \4\ and Rule 608 of Regulation NMS thereunder,\5\ the Plan to Implement a Tick Size Pilot Program (the ``Plan'').\6\ The Participants filed the Plan to comply with an order issued by the Commission on June 24, 2014.\7\ The Plan was published for comment in the Federal Register on November 7, 2014, and approved by the Commission, as modified, on May 6, 2015.\8\ --------------------------------------------------------------------------- \4\ 15 U.S.C. 78k-1. \5\ 17 CFR 242.608. \6\ See Letter from Brendon J. Weiss, Vice President, Intercontinental Exchange, Inc., to Secretary, Commission, dated August 25, 2014. \7\ See Securities Exchange Act Release No 72460 (June 24, 2014), 79 FR 36840 (June 30, 2014). \8\ See Securities Exchange Act Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015) (``Approval Order''). --------------------------------------------------------------------------- The Plan is designed to allow the Commission, market participants, and the public to study and assess the impact of increment conventions on the liquidity and trading of the common stock of small- capitalization companies. Each Participant is required to comply, and to enforce compliance by its member organizations, as applicable, with the provisions of the Plan. The Plan provides for the creation of a group of Pilot Securities, which shall be placed in a control group and three separate test groups, with each subject to varying quoting and trading increments. Pilot Securities in the control group will be quoted at the current tick size increment of $0.01 per share and will trade at the currently permitted increments. Pilot Securities in the first test group will be quoted in $0.05 minimum increments but will continue to trade at any price increment that is currently permitted.\9\ Pilot Securities in the second test group (``Test Group Two'') will be quoted in $0.05 minimum increments and will trade at $0.05 minimum increments subject to a midpoint exception, a retail investor order exception, and a [[Page 63819]] negotiated trade exception.\10\ Pilot Securities in the third test group (``Test Group Three'') will be subject to the same quoting and trading increments as Test Group Two, and also will be subject to the ``Trade-at'' requirement to prevent price matching by a market participant that is not displaying at the price of a Trading Center's ``Best Protected Bid'' or ``Best Protected Offer,'' unless an enumerated exception applies.\11\ In addition to the exceptions provided under Test Group Two, an exception for Block Size orders and exceptions that mirror those under Rule 611 of Regulation NMS \12\ will apply to the Trade-at requirement. --------------------------------------------------------------------------- \9\ See Section VI(B) of the Plan. \10\ See Section VI(C) of the Plan. \11\ See Section VI(D) of the Plan. \12\ 17 CFR 242.611. --------------------------------------------------------------------------- The Plan also requires a Trading Center \13\ or a Market Maker \14\ to collect and transmit certain data to its designated examining authority (``DEA''), and requires DEAs to transmit this data to the Commission. Participants that operate a Trading Center also are required under the Plan to collect certain data, which is then transmitted directly to the Commission. With respect to Trading Centers, Appendix B.I to the Plan (Market Quality Statistics) requires a Trading Center to submit to the Participant that is its DEA a variety of market quality statistics. Appendix B.II to the Plan (Market and Marketable Limit Order Data) requires a Trading Center to submit information to its DEA relating to market orders and marketable limit orders, including the time of order receipt, order type, the order size, and the National Best Bid and National Best Offer quoted price. --------------------------------------------------------------------------- \13\ The Plan incorporates the definition of a ``Trading Center'' from Rule 600(b)(78) of Regulation NMS. Regulation NMS defines a ``Trading Center'' as ``a national securities exchange or national securities association that operates an SRO trading facility, an alternative trading system, an exchange market maker, an OTC market maker, or any other broker or dealer that executes orders internally by trading as principal or crossing orders as agent.'' See 17 CFR 242.600(b). \14\ The Plan defines a Market Maker as ``a dealer registered with any self-regulatory organization, in accordance with the rules thereof, as (i) a market maker or (ii) a liquidity provider with an obligation to maintain continuous, two-sided trading interest.'' --------------------------------------------------------------------------- With respect to Market Makers, Appendix B.III requires a Participant that is a national securities exchange to collect daily Market Maker Registration statistics. Appendix B.IV requires a Participant to collect data related to Market Maker participation with respect to each Market Maker engaging in trading activity on a Trading Center operated by the Participant. Appendix C.I requires a Participant to collect data related to Market Maker profitability from each Market Maker for which it is the DEA. Appendix C.II requires the Participant, as DEA, to aggregate the Appendix C.I data, and to transmit this data to the Commission. The Commission approved the Pilot on a two-year basis, with implementation to begin no later than May 6, 2016.\15\ On November 6, 2015, the SEC exempted the Participants from implementing the pilot until October 3, 2016.\16\ As set forth in Appendices B and C to the Plan, data that is reported pursuant to the appendices shall be provided for dates starting six months prior to the Pilot Period through six months after the end of the Pilot Period. Under the revised Pilot implementation date, the Pre-Pilot data collection period commenced on April 4, 2016. --------------------------------------------------------------------------- \15\ See Approval Order at 27533 and 27545. \16\ See Securities Exchange Act Release No. 76382 (November 6, 2015), 80 FR 70284 (November 13, 2015) (File No. 4-657). --------------------------------------------------------------------------- On March 29, 2016, NYSE Arca filed with the Commission a proposed rule change to adopt NYSE Arca Rule 7.46(b) to implement the data collection requirements of the Plan.\17\ On December 9, 2015, NYSE Arca submitted an exemptive request to the Commission, seeking an exemption from certain data collection and reporting requirements set forth in the Plan.\18\ On April 4, 2016, the Commission granted exemptive relief from complying with certain data collection and reporting requirements in the Plan.\19\ --------------------------------------------------------------------------- \17\ See Securities Exchange Act Release No. 77484 (March 31, 2016), 81 FR 20024 (April 6, 2016) (Immediate Effectiveness of Proposed Rule Change Adopting Requirements for the Collection and Transmission of Data Pursuant to Appendices B and C of the Regulation NMS Plan to Implement a Tick Size Pilot Program) (SR- NYSEARCA-2016-52). NYSE Arca also submitted a proposed rule change to implement the quoting and trading requirements of the Plan. See Securities Exchange Act Release No. 77947 (May 31, 2016), 81 FR 36361 (June 6, 2016) (Immediate Effectiveness of Proposed Rule Change Implementing the Quoting and Trading Provisions of the Plan to Implement a Tick Size Pilot Program) (SR-NYSEARCA-2016-76). \18\ See Letter from Marcia E. Asquith, Senior Vice President and Corporate Secretary, FINRA, to Robert W. Errett, Deputy Secretary, Commission, dated December 9, 2015 (``Exemptive Request''). \19\ See letter from John C. Roeser, Associate Director, Division of Trading and Markets, Commission, to Sherry Sandler, Associate General Counsel, NYSE Arca, dated April 4, 2016. --------------------------------------------------------------------------- NYSE Arca now proposes to further amend Rule 7.46 to modify additional data collection and reporting requirements. First, Appendix B.I.a(21) through B.I.a(27) currently requires that Trading Centers report the cumulative number of shares of cancelled orders during a specified duration of time after receipt of the order that was cancelled. NYSE Arca and the other Participants believe that, for purposes of reporting cancelled orders, it is appropriate to categorize unexecuted Immediate or Cancel orders separately as one bucket irrespective of the duration of time after order receipt, i.e., without a time increment, to better differentiate orders cancelled subsequent to entry from those where the customer's intent prior to order entry was to cancel the order if no execution could be immediately obtained. NYSE Arca, therefore, proposes to modify Supplementary Material .30 to provide that unexecuted Immediate or Cancel orders shall be categorized separately for purposes of Appendix B.I.a(21) through B.I.a(27). The second change relates to the reporting of daily market quality statistics pursuant to Appendix B.I. Currently, Appendix B.I sets forth categories of orders, including market orders, marketable limit orders, and inside-the-quote resting limit orders, for which daily market quality statistics must be reported. NYSE Arca and the other Participants have determined that it is appropriate to include an order type for limit orders priced more than $0.10 away from the NBBO for purposes of Appendix B reporting. NYSE Arca therefore proposes to amend Supplementary Material .50 to provide that limit orders priced more than $0.10 away from the NBBO shall be included as an order type for purposes of Appendix B reporting, and shall be assigned the number (22). These orders are not currently required to be reported pursuant to Appendix B, and NYSE Arca and the other Participants believe that requiring the reporting of such orders will produce a more comprehensive data set. The third change relates to the reporting of market quality statistics pursuant to Appendix B.I for a variety of order types, including inside-the-quote resting limit orders (12), at-the-quote resting limit orders (13), and near-the-quote resting limit orders (within $0.10 of the NBBO) (14). NYSE Arca and the other Participants believe that it is appropriate to require Trading Centers to report all orders that fall within these categories, and not just those orders that are ``resting.'' NYSE Arca, therefore, proposes to amend Supplementary Material .50 to make this change. In the fourth change, NYSE Arca proposes to add new Supplementary Material .100 to modify the manner in which market maker participation statistics are calculated. Currently, Appendix B.IV provides that market maker participation statistics shall be calculated based on share participation, trade participation, cross-quote share (trade) participation, inside-the-quote [[Page 63820]] share (trade) participation, at-the-quote share (trade) participation, and outside-the-quote share (trade) participation. NYSE Arca and the other Participants have determined that it is appropriate to add the count of the number of Market Makers used in the calculation of share (trade) participation to each category. NYSE Arca is therefore proposing this change as part of Supplementary Material .100. In addition, Appendix B.IV(b) and (c) currently require that, when aggregating across Market Makers, share participation and trade participation shall be calculated using the share-weighted average and trade-weighted average, respectively. NYSE Arca and the other Participants believe that it is more appropriate to calculate share and trade participation by providing the total count of shares or trades, as applicable, rather than weighted averages, and NYSE Arca is therefore proposing this change as part of Supplementary Material .100. The fifth change relates to the NBBO that a Trading Center is required to use when performing certain quote-related calculations. When calculating cross-quote share (trade) participation pursuant to Appendix B.IV(d) and inside-the-quote share (trade) participation pursuant to Appendix B.IV(e), the Plan requires the Trading Center to utilize the NBBO at the time of the trade for both share and trade participation calculations. When calculating at-the-quote share (trade) participation and outside-the-quote share (trade) participation pursuant to Appendix B.IV(f) and (g), the Plan allows the Trading Center to utilize the National Best Bid or National Best Offer (NBBO) at the time of or immediately before the trade for both share and trade participation calculations. NYSE Arca and the other Participants believe that it is appropriate to calculate all quote participation (cross-quote share (trade) participation, inside-the-quote share (trade) participation, at-the-quote share (trade) participation and outside-the-quote share (trade) participation) solely by reference to the NBBO in effect immediately prior to the trade. NYSE Arca therefore proposes to make this change as part of Supplementary Material .100. Finally, NYSE Arca proposes to change the end date until which the Pre-Pilot Data Collection Securities shall be used to fulfill the Plan's data collection requirements. Currently, Supplementary Material .90 provides that Pre-Pilot Data Collection Securities are the securities designated by the Participants for purposes of the data collection requirements described in Items I, II and IV of Appendix B and Item I of Appendix C to the Plan for the period beginning six months prior to the Pilot Period and ending on the trading day immediately preceding the Pilot Period. NYSE Arca the other Participants believe that it is appropriate to use the Pilot Securities to satisfy the Plan's data collection requirements prior to the commencement of the Pilot. According, NYSE Arca is revising Supplementary Material .90 to provide that the Pre-Pilot Data Collection Securities shall be used to satisfy the Plan's data collection requirements through thirty-one days prior to the Pilot Period, after which time the Pilot Securities shall be used for purposes of the data collection requirements.\20\ --------------------------------------------------------------------------- \20\ After regular trading hours on September 2, 2016, the national securities exchanges will establish which securities will be included as Pilot Securities for purposes of the Plan. NYSE Arca and the other Participants have determined that members should use the Pilot Securities list for data collection purposes once it becomes available. Thus, the proposed rule change requires that, beginning thirty days prior to the first day of the Pilot Period-- i.e., September 3, 2016--NYSE Arca and NYSE Arca ETP Holders will comply with the data collection obligations of the Plan by collecting data on the Pilot Securities. As a result, beginning on September 3, 2016, ETP Holders must migrate from using NYSE Arca's published Pre-Pilot Data Collection Security list and begin using the Pilot Securities list. September 2, 2016 will be the last day that ETP Holders use the Pre-Pilot Data Collection Security list. --------------------------------------------------------------------------- As noted in Item 2 of this filing, NYSE Arca has filed the proposed rule change for immediate effectiveness. NYSE Arca has requested that the SEC waive the 30-day operative period so that the proposed rule change can become operative on August 30, 2016. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \21\ in general, and furthers the objectives of Section 6(b)(5) of the Act \22\ in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78f(b). \22\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- NYSE Arca believes that this proposal is consistent with the Act because it implements and clarifies the provisions of the Plan, and is designed to assist NYSE Arca in meeting its regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Pilot was an appropriate, data-driven test that was designed to evaluate the impact of a wider tick size on trading, liquidity, and the market quality of securities of smaller capitalization companies, and was therefore in furtherance of the purposes of the Act. NYSE Arca believes that this proposal is in furtherance of the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act because the proposal implements and clarifies the requirements of the Plan. B. Self-Regulatory Organization's Statement on Burden on Competition NYSE Arca notes that the proposed rule change implements the provisions of the Plan, and is designed to assist NYSE Arca in meeting its regulatory obligations pursuant to the Plan. NYSE Arca also notes that, other than the change to require use of the Pilot Securities beginning thirty days prior to the beginning of the Pilot Period, the proposed changes will only affect how NYSE Arca and Participants that operate Trading Centers collect and report data. NYSE Arca notes that, with respect to the change to require the use of the Pilot Securities beginning thirty days prior to the start of the Pilot Period, the proposed change reduces the number of securities on which affected ETP Holders otherwise would have been required to collect data pursuant to the Plan and NYSE Arca Rule 7.46. In addition, the proposed rule change applies equally to all similarly situated ETP Holders. Therefore, NYSE Arca does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. 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 \23\ and Rule 19b-4(f)(6) thereunder.\24\ 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) by its terms, become operative prior to 30 days from the date on which it was filed, or such [[Page 63821]] shorter time as the Commission may designate, if consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \23\ 15 U.S.C. 78s(b)(3)(A)(iii). \24\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \25\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\26\ 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. --------------------------------------------------------------------------- \25\ 17 CFR 240.19b-4(f)(6). \26\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The Commission believes that waiving the 30 day operative delay is consistent with the protection of investors and the public interest because it will allow the Exchange to implement the proposed rules immediately thereby preventing delays in the implementation of the Plan. The Commission notes that the Plan is scheduled to start on October 3, 2016. Therefore, the Commission hereby waives the 30 day operative delay and designates the proposed rule change to be operative upon filing with the Commission.\27\ --------------------------------------------------------------------------- \27\ For Purposes only of waiving the operative delay for this proposal 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) \28\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \28\ 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. 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-NYSEARCA-2016-124 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-NYSEARCA-2016-124. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEARCA-2016-124 and should be submitted on or before October 7, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\29\ --------------------------------------------------------------------------- \29\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-22253 Filed 9-15-16; 8:45 am] BILLING CODE 8011-01-P
![63818 Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Notices
action is necessary or appropriate in the For the Commission, by the Division of of those statements may be examined at
public interest, for the protection of Trading and Markets, pursuant to delegated the places specified in Item IV below.
investors, or otherwise in furtherance of authority.30 The Exchange has prepared summaries,
the purposes of the Act.29 Robert W. Errett, set forth in sections A, B, and C below,
Deputy Secretary. of the most significant parts of such
IV. Solicitation of Comments
[FR Doc. 2016–22255 Filed 9–15–16; 8:45 am] statements.
Interested persons are invited to BILLING CODE 8011–01–P
submit written data, views and A. Self-Regulatory Organization’s
arguments concerning the foregoing, Statement of the Purpose of, and the
including whether the proposed rule SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
change is consistent with the Act. COMMISSION Change
Comments may be submitted by any of [Release No. 34–78814; File No. SR– 1. Purpose
the following methods: NYSEARCA–2016–124] On August 25, 2014, NYSE Arca, and
Electronic Comments several other self-regulatory
Self-Regulatory Organizations; NYSE organizations (the ‘‘Participants’’) filed
• Use the Commission’s Internet Arca, Inc.; Notice of Filing and
comment form (http://www.sec.gov/ with the Commission, pursuant to
Immediate Effectiveness of Proposed Section 11A of the Act 4 and Rule 608
rules/sro.shtml); or Rule Change To Amend Rule 7.46 To of Regulation NMS thereunder,5 the
• Send an email to rule-comments@ Modify Certain Data Collection Plan to Implement a Tick Size Pilot
sec.gov. Please include File Number SR– Requirements of the Regulation NMS Program (the ‘‘Plan’’).6 The Participants
NASDAQ–2016–123 on the subject line. Plan To Implement a Tick Size Pilot filed the Plan to comply with an order
Paper Comments Program issued by the Commission on June 24,
• Send paper comments in triplicate September 12, 2016. 2014.7 The Plan was published for
to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) 1 of the comment in the Federal Register on
Commission, 100 F Street NE., Securities Exchange Act of 1934 (the November 7, 2014, and approved by the
Washington, DC 20549–1090. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Commission, as modified, on May 6,
notice is hereby given that, on August 2015.8
All submissions should refer to File The Plan is designed to allow the
Number SR–NASDAQ–2016–123. This 29, 2016, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with Commission, market participants, and
file number should be included on the the public to study and assess the
subject line if email is used. To help the the Securities and Exchange
Commission (the ‘‘Commission’’) the impact of increment conventions on the
Commission process and review your liquidity and trading of the common
comments more efficiently, please use proposed rule change as described in
Items I and II below, which Items have stock of small-capitalization companies.
only one method. The Commission will Each Participant is required to comply,
post all comments on the Commission’s been prepared by the self-regulatory
organization. The Commission is and to enforce compliance by its
Internet Web site (http://www.sec.gov/ member organizations, as applicable,
rules/sro.shtml). Copies of the publishing this notice to solicit
comments on the proposed rule change with the provisions of the Plan.
submission, all subsequent
from interested persons. The Plan provides for the creation of
amendments, all written statements
a group of Pilot Securities, which shall
with respect to the proposed rule I. Self-Regulatory Organization’s be placed in a control group and three
change that are filed with the Statement of the Terms of Substance of separate test groups, with each subject
Commission, and all written the Proposed Rule Change to varying quoting and trading
communications relating to the
The Exchange proposes to amend increments. Pilot Securities in the
proposed rule change between the
Rule 7.46 to modify certain data control group will be quoted at the
Commission and any person, other than
collection requirements of the current tick size increment of $0.01 per
those that may be withheld from the
Regulation NMS Plan to Implement a share and will trade at the currently
public in accordance with the
Tick Size Pilot Program. The proposed permitted increments. Pilot Securities in
provisions of 5 U.S.C. 552, will be
rule change is available on the the first test group will be quoted in
available for Web site viewing and
Exchange’s Web site at www.nyse.com, $0.05 minimum increments but will
printing in the Commission’s Public
at the principal office of the Exchange, continue to trade at any price increment
Reference Room, 100 F Street NE.,
and at the Commission’s Public that is currently permitted.9 Pilot
Washington, DC 20549, on official
Reference Room. Securities in the second test group
business days between the hours of 10
(‘‘Test Group Two’’) will be quoted in
a.m. and 3 p.m. Copies of such filing II. Self-Regulatory Organization’s
$0.05 minimum increments and will
also will be available for inspection and Statement of the Purpose of, and
trade at $0.05 minimum increments
copying at the principal office of the Statutory Basis for, the Proposed Rule
subject to a midpoint exception, a retail
Exchange. All comments received will Change
investor order exception, and a
be posted without change; the
In its filing with the Commission, the
Commission does not edit personal
self-regulatory organization included 4 15 U.S.C. 78k–1.
identifying information from
statements concerning the purpose of, 5 17 CFR 242.608.
submissions. You should submit only
mstockstill on DSK3G9T082PROD with NOTICES
and basis for, the proposed rule change 6 See Letter from Brendon J. Weiss, Vice
information that you wish to make President, Intercontinental Exchange, Inc., to
and discussed any comments it received
available publicly. All submissions Secretary, Commission, dated August 25, 2014.
on the proposed rule change. The text
should refer to File Number SR– 7 See Securities Exchange Act Release No 72460
NASDAQ–2016–123 and should be (June 24, 2014), 79 FR 36840 (June 30, 2014).
30 17 CFR 200.30–3(a)(12). 8 See Securities Exchange Act Release No. 74892
submitted on or before October 7, 2016. 1 15 U.S.C. 78s(b)(1). (May 6, 2015), 80 FR 27513 (May 13, 2015)
2 15 U.S.C. 78a. (‘‘Approval Order’’).
29 15 U.S.C. 78s(b)(3)(C). 3 17 CFR 240.19b–4. 9 See Section VI(B) of the Plan.
VerDate Sep<11>2014 17:55 Sep 15, 2016 Jkt 238001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 E:\FR\FM\16SEN1.SGM 16SEN1](https://thefederalregister.org/doc/81_FR_63998/page/1.svg)
![Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Notices 63821
shorter time as the Commission may • Send an email to rule-comments@ SECURITIES AND EXCHANGE
designate, if consistent with the sec.gov. Please include File Number SR– COMMISSION
protection of investors and the public NYSEARCA–2016–124 on the subject
[Release No. 34–78812; File No. SR–CHX–
interest. line. 2016–17]
A proposed rule change filed under
Rule 19b–4(f)(6) 25 normally does not Paper Comments
Self Regulatory Organizations;
become operative prior to 30 days after • Send paper comments in triplicate Chicago Stock Exchange, Inc.; Notice
the date of the filing. However, pursuant to Brent J. Fields, Secretary, Securities of Filing and Immediate Effectiveness
to Rule 19b4(f)(6)(iii),26 the Commission and Exchange Commission, 100 F Street of a Proposed Rule Change To Amend
may designate a shorter time if such Article 20, Rule 13(b) To Modify Certain
NE., Washington, DC 20549–1090.
action is consistent with the protection Data Collection Requirements of the
of investors and the public interest. The All submissions should refer to File Regulation NMS Plan To Implement a
Exchange has asked the Commission to Number SR–NYSEARCA–2016–124. Tick Size Pilot Program
waive the 30-day operative delay so that This file number should be included on
the proposal may become operative the subject line if email is used. To help September 12, 2016.
immediately upon filing. the Commission process and review Pursuant to Section 19(b)(1) of the
The Commission believes that your comments more efficiently, please Securities Exchange Act of 1934
waiving the 30 day operative delay is use only one method. The Commission (‘‘Act’’),1 and Rule 19b–4 2 thereunder,
consistent with the protection of will post all comments on the notice is hereby given that on August
investors and the public interest 29, 2016, the Chicago Stock Exchange,
Commission’s Internet Web site (http://
because it will allow the Exchange to Inc. (‘‘CHX’’ or the ‘‘Exchange’’) filed
www.sec.gov/rules/sro.shtml). Copies of
implement the proposed rules with the Securities and Exchange
the submission, all subsequent
immediately thereby preventing delays Commission (‘‘Commission’’) the
amendments, all written statements proposed rule change as described in
in the implementation of the Plan. The with respect to the proposed rule
Commission notes that the Plan is Items I and II below, which Items have
change that are filed with the been prepared by the Exchange. The
scheduled to start on October 3, 2016.
Commission, and all written Commission is publishing this notice to
Therefore, the Commission hereby
communications relating to the solicit comments on the proposed rule
waives the 30 day operative delay and
proposed rule change between the change from interested persons.
designates the proposed rule change to
be operative upon filing with the Commission and any person, other than
those that may be withheld from the I. Self-Regulatory Organization’s
Commission.27 Statement of the Terms of Substance of
At any time within 60 days of the public in accordance with the
the Proposed Rule Change
filing of such proposed rule change, the provisions of 5 U.S.C. 552, will be
Commission summarily may available for Web site viewing and CHX proposes to amend Article 20,
temporarily suspend such rule change if printing in the Commission’s Public Rule 13(b) to modify certain data
it appears to the Commission that such Reference Room, 100 F Street NE., collection requirements of the
action is necessary or appropriate in the Washington, DC 20549 on official Regulation NMS Plan to Implement a
public interest, for the protection of business days between the hours of Tick Size Pilot Program.
10:00 a.m. and 3:00 p.m. Copies of the CHX has designated this proposed
investors, or otherwise in furtherance of
filing also will be available for rule change as non-controversial
the purposes of the Act. If the
inspection and copying at the principal pursuant to Section 19(b)(3)(A) 3 of the
Commission takes such action, the
Act and Rule 19b–4(f)(6) 4 thereunder
Commission shall institute proceedings office of the Exchange. All comments
and has provided the Commission with
under Section 19(b)(2)(B) 28 of the Act to received will be posted without change;
the notice required by Rule 19b–
determine whether the proposed rule the Commission does not edit personal
4(f)(6)(iii).5
change should be approved or identifying information from The text of this proposed rule change
disapproved. submissions. You should submit only is available on the Exchange’s Web site
IV. Solicitation of Comments information that you wish to make at (www.chx.com) and in the
available publicly. All submissions Commission’s Public Reference Room.
Interested persons are invited to should refer to File Number SR–
submit written data, views, and NYSEARCA–2016–124 and should be II. Self-Regulatory Organization’s
arguments concerning the foregoing, submitted on or before October 7, 2016. Statement of the Purpose of, and
including whether the proposed rule Statutory Basis for, the Proposed Rule
change is consistent with the Act. For the Commission, by the Division of Change
Comments may be submitted by any of Trading and Markets, pursuant to delegated
authority.29 In its filing with the Commission, the
the following methods: CHX included statements concerning
Robert W. Errett,
Electronic Comments the purpose of and basis for the
Deputy Secretary. proposed rule changes and discussed
• Use the Commission’s Internet [FR Doc. 2016–22253 Filed 9–15–16; 8:45 am] any comments it received on the
comment form (http://www.sec.gov/ BILLING CODE 8011–01–P proposed rule change. The text of these
rules/sro.shtml); or
statements may be examined at the
mstockstill on DSK3G9T082PROD with NOTICES
places specified in Item IV below. The
25 17 CFR 240.19b–4(f)(6).
26 17
CHX has prepared summaries, set forth
CFR 240.19b–4(f)(6)(iii).
27 For Purposes only of waiving the operative
1 15 U.S.C. 78s(b)(1).
delay for this proposal the Commission has
2 17 CFR 240.19b–4.
considered the proposed rule’s impact on
3 15 U.S.C. 78s(b)(3)(A).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 4 17 CFR 240.19b–4(f)(6).
28 15 U.S.C. 78s(b)(2)(B). 29 17 CFR 200.30–3(a)(12). 5 17 CFR 240.19b–4(f)(6)(iii).
VerDate Sep<11>2014 17:55 Sep 15, 2016 Jkt 238001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\16SEN1.SGM 16SEN1](https://thefederalregister.org/doc/81_FR_63998/page/4.svg)
Document Created: 2016-09-16 00:25:11
Document Modified: 2016-09-16 00:25:11
| 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 63818 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR