81_FR_7420 81 FR 7392 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Supplementary Material .10 to Rule 103B-Equities To Provide That Any Senior Official of a Listed Company With the Rank of Corporate Secretary or Higher Can Sign the Written Request of a Listed Company Seeking To Change Its Designated Market Maker Unit

81 FR 7392 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Supplementary Material .10 to Rule 103B-Equities To Provide That Any Senior Official of a Listed Company With the Rank of Corporate Secretary or Higher Can Sign the Written Request of a Listed Company Seeking To Change Its Designated Market Maker Unit

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 28 (February 11, 2016)

Page Range7392-7394
FR Document2016-02729

Federal Register, Volume 81 Issue 28 (Thursday, February 11, 2016)
[Federal Register Volume 81, Number 28 (Thursday, February 11, 2016)]
[Notices]
[Pages 7392-7394]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02729]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77074; File No. SR-NYSEMKT-2016-14]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending Supplementary 
Material .10 to Rule 103B--Equities To Provide That Any Senior Official 
of a Listed Company With the Rank of Corporate Secretary or Higher Can 
Sign the Written Request of a Listed Company Seeking To Change Its 
Designated Market Maker Unit

February 5, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on January 27, 2016, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 
filed with the Securities and Exchange Commission (``SEC'' or 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the Exchange. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Supplementary Material .10 to Rule 
103B--Equities to provide that any senior official of a listed company 
with the rank of Corporate Secretary or higher can sign the written 
request of a listed company seeking to change its designated market 
maker (``DMM'') unit. 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,

[[Page 7393]]

of the most significant parts of such statements.

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

1. Purpose
    The Exchange proposes to amend Supplementary Material .10 to Rule 
103B--Equities to provide that any senior official of a listed company 
with the rank of Corporate Secretary or higher can sign the written 
request of a listed company seeking to change its DMM unit required by 
that provision.
    Supplementary Material .10 to Rule 103B--Equities establishes a 
process to be followed by any listed company wishing to change to a new 
DMM unit. The rule provides that a listed company wishing to change DMM 
units must file with the Corporate Secretary of the Exchange a written 
notice (the ``Issuer Notice''), signed by the company's chief executive 
officer. The Issuer Notice is required to indicate the specific issues 
prompting this request. It has been the Exchange's experience that 
companies have occasionally found it burdensome to obtain the signature 
of their CEO for purposes of submitting an Issuer Notice and that this 
requirement has caused an undesirable delay when companies are making 
their submissions. We also note that this requirement is inconsistent 
with the provisions of Rule 103B--Equities in relation to an issuer's 
initial selection of a DMM, which provides that any senior official 
with the rank of Corporate Secretary or higher (or, in the case of a 
structured product listing, a senior officer of the issuer) can sign 
the notice in which a listed company informs the Exchange of its 
initial selection of a DMM unit. It has been the Exchange's experience 
that a senior officer other than the chief executive officer often 
manages the DMM relationship on behalf of the listed company and has 
authority to take action in relation to that relationship. We also note 
that the NYSE recently amended its parallel provision (Section 806.01 
of the NYSE's Listed Company Manual) to address this issue by providing 
that an Issuer Notice may be signed by an official of the listed 
company with the rank of Corporate Secretary or higher.\3\ 
Consequently, we propose to amend Supplementary Material .10 to Rule 
103B--Equities to make the same change.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 76591 (December 8, 
2015), 80 FR 77392 (December 14, 2015) (SR-NYSE-2015-63).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \4\ of the Act, in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\5\ in particular in that it 
is designed to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
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 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers. The Exchange believes that the proposed 
amendment is consistent with the investor protection objectives of 
Section 6(b)(5) because it is designed to ensure that listed companies 
are able to expeditiously change their DMM unit when senior management 
of the listed company believes it is desirable to do so. An effective 
relationship between the listed company and the DMM is important to the 
maintenance of a high quality market for the company's securities and 
is therefore in the interests of investors.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purpose of the Act. The proposed rule change is 
designed to permit listed companies to apply for a change in the DMM 
unit allocated to their securities on the basis of a notice signed by 
any officer with the title of Corporate Secretary or higher rather than 
requiring that it be signed in all cases by the CEO, as is currently 
the case. The proposed amendment simply provides more flexibility in 
providing the required paperwork and conforms the signing requirements 
with respect to the commencement and severing of a listed company's 
relationship with its DMM unit, but does not change any of the 
substantive rights of the listed company or the DMM unit in any way. As 
such, the Exchange does not expect the rule change to have any 
significant impact on competition.

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 \6\ and Rule 19b-4(f)(6) thereunder.\7\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ 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 proposed 
rule change may become operative immediately. The Exchange believes 
that providing greater flexibility in the preparation of the paperwork 
needed to request a change of DMM unit is in the interests of investors 
as it is important to the maintenance of a high quality market for an 
issuer's stock that the issuer has a good relationship with its DMM. As 
the Exchange notes in its filing, the proposal would better conform the 
process for changing a DMM to that which is used for initially 
selecting a DMM. In particular, the officer's signature that would be 
required to change a company's DMM

[[Page 7394]]

must be that of a senior official at the company with a rank of 
Corporate Secretary or above. Based on the foregoing, the Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest. For this reason, the 
Commission hereby waives the 30-day operative delay and designates the 
proposal operative upon filing.\12\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEMKT-2016-14 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-2016-14. 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-NYSEMKT-2016-14, and should 
be submitted on or before March 3, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12), (59).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-02729 Filed 2-10-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                  7392                        Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices

                                                  number, or for an applicant using the                   purposes of the Act and will be based                 SECURITIES AND EXCHANGE
                                                  Company name box, at http://                            on the net asset values of the                        COMMISSION
                                                  www.sec.gov/search/search.htm, or by                    Underlying Funds.                                     [Release No. 34–77074; File No. SR–
                                                  calling (202) 551–8090.                                    2. Applicants agree that any order                 NYSEMKT–2016–14]
                                                  Summary of the Application                              granting the requested relief will be
                                                                                                          subject to the terms and conditions                   Self-Regulatory Organizations; NYSE
                                                     1. Applicants request an order to                                                                          MKT LLC; Notice of Filing and
                                                  permit (a) a Fund 1 (each a ‘‘Fund of                   stated in the application. Such terms
                                                                                                          and conditions are designed to, among                 Immediate Effectiveness of Proposed
                                                  Funds’’) to acquire shares of Underlying                                                                      Rule Change Amending
                                                  Funds 2 in excess of the limits in                      other things, help prevent any potential
                                                                                                                                                                Supplementary Material .10 to Rule
                                                  sections 12(d)(1)(A) and (C) of the Act                 (i) undue influence over an Underlying
                                                                                                                                                                103B—Equities To Provide That Any
                                                  and (b) the Underlying Funds that are                   Fund that is not in the same ‘‘group of
                                                                                                                                                                Senior Official of a Listed Company
                                                  registered open-end investment                          investment companies’’ as the Fund of                 With the Rank of Corporate Secretary
                                                  companies or series thereof, their                      Funds through control or voting power,                or Higher Can Sign the Written
                                                  principal underwriters and any broker                   or in connection with certain services,               Request of a Listed Company Seeking
                                                  or dealer registered under the Securities               transactions, and underwritings, (ii)                 To Change Its Designated Market
                                                  Exchange Act of 1934 to sell shares of                  excessive layering of fees, and (iii)                 Maker Unit
                                                  the Underlying Fund to the Fund of                      overly complex fund structures, which
                                                  Funds in excess of the limits in section                are the concerns underlying the limits                February 5, 2016.
                                                  12(d)(1)(B) of the Act.3 Applicants also                in sections 12(d)(1)(A), (B), and (C) of                 Pursuant to Section 19(b)(1) of the
                                                  request an order of exemption under                     the Act.                                              Securities Exchange Act of 1934
                                                  sections 6(c) and 17(b) of the Act from                                                                       (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                  the prohibition on certain affiliated                      3. Section 12(d)(1)(J) of the Act                  notice is hereby given that on January
                                                  transactions in section 17(a) of the Act                provides that the Commission may                      27, 2016, NYSE MKT LLC (the
                                                  to the extent necessary to permit the                   exempt any person, security, or                       ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
                                                  Underlying Funds to sell their shares to,               transaction, or any class or classes of               the Securities and Exchange
                                                  and redeem their shares from, the Funds                 persons, securities, or transactions, from            Commission (‘‘SEC’’ or ‘‘Commission’’)
                                                  of Funds.4 Applicants state that such                   any provision of section 12(d)(1) if the              the proposed rule change as described
                                                  transactions will be consistent with the                exemption is consistent with the public               in Items I and II below, which Items
                                                  policies of each Fund of Funds and each                 interest and the protection of investors.             have been prepared by the Exchange.
                                                  Underlying Fund and with the general                    Section 17(b) of the Act authorizes the               The Commission is publishing this
                                                                                                          Commission to grant an order                          notice to solicit comments on the
                                                     1 Applicants request that the order apply to each
                                                                                                          permitting a transaction otherwise                    proposed rule change from interested
                                                  existing and future series of Good Hill ETF Trust
                                                  and to each existing and future registered open-end     prohibited by section 17(a) if it finds               persons.
                                                  investment company or series thereof that is            that (a) the terms of the proposed                    I. Self-Regulatory Organization’s
                                                  advised by Good Hill Partners LP or its successor       transaction are fair and reasonable and
                                                  or by any entity controlling, controlled by or under                                                          Statement of the Terms of Substance of
                                                  common control with Good Hill Partners LP or its        do not involve overreaching on the part               the Proposed Rule Change
                                                  successor and is part of the same ‘‘group of            of any person concerned; (b) the
                                                  investment companies’’ as Good Hill ETF Trust                                                                    The Exchange proposes to amend
                                                                                                          proposed transaction is consistent with
                                                  (each, a ‘‘Fund’’). For purposes of the requested                                                             Supplementary Material .10 to Rule
                                                  order, ‘‘successor’’ is limited to an entity that       the policies of each registered
                                                                                                                                                                103B—Equities to provide that any
                                                  results from a reorganization into another              investment company involved; and (c)
                                                  jurisdiction or a change in the type of business                                                              senior official of a listed company with
                                                                                                          the proposed transaction is consistent                the rank of Corporate Secretary or
                                                  organization. For purposes of the request for relief,
                                                  the term ‘‘group of investment companies’’ means        with the general purposes of the Act.                 higher can sign the written request of a
                                                  any two or more investment companies, including         Section 6(c) of the Act permits the                   listed company seeking to change its
                                                  closed-end investment companies and business            Commission to exempt any persons or
                                                  development companies, that hold themselves out                                                               designated market maker (‘‘DMM’’) unit.
                                                  to investors as related companies for purposes of       transactions from any provision of the                The proposed rule change is available
                                                  investment and investor services.                       Act if such exemption is necessary or                 on the Exchange’s Web site at
                                                     2 Certain of the Underlying Funds have obtained
                                                                                                          appropriate in the public interest and                www.nyse.com, at the principal office of
                                                  exemptions from the Commission necessary to
                                                  permit their shares to be listed and traded on a
                                                                                                          consistent with the protection of                     the Exchange, and at the Commission’s
                                                  national securities exchange at negotiated prices       investors and the purposes fairly                     Public Reference Room.
                                                  and, accordingly, to operate as an exchange-traded      intended by the policy and provisions of
                                                  fund (‘‘ETF’’).                                                                                               II. Self-Regulatory Organization’s
                                                                                                          the Act.
                                                     3 Applicants represent that a Funds of Funds will                                                          Statement of the Purpose of, and
                                                  not invest in reliance on the order in business           For the Commission, by the Division of              Statutory Basis for, the Proposed Rule
                                                  development companies or closed-end investment          Investment Management, pursuant to
                                                  companies that are not listed and traded on a
                                                                                                                                                                Change
                                                                                                          delegated authority.
                                                  national securities exchange.                                                                                    In its filing with the Commission, the
                                                     4 A Fund of Funds generally would purchase and       Brent J. Fields,                                      self-regulatory organization included
                                                  sell shares of an Underlying Fund that operates as      Secretary.
                                                  an ETF through secondary market transactions
                                                                                                                                                                statements concerning the purpose of,
                                                  rather than through principal transactions with the     [FR Doc. 2016–02764 Filed 2–10–16; 8:45 am]           and basis for, the proposed rule change
                                                  Underlying Fund. Applicants nevertheless request        BILLING CODE 8011–01–P                                and discussed any comments it received
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  relief from section 17(a) to permit a Fund of Funds                                                           on the proposed rule change. The text
                                                  to purchase or redeem shares from the ETF. A Fund
                                                  of Funds will purchase and sell shares of an                                                                  of those statements may be examined at
                                                  Underlying Fund that is a closed-end fund through                                                             the places specified in Item IV below.
                                                  secondary market transactions at market prices                                                                The Exchange has prepared summaries,
                                                  rather than through principal transactions with the                                                           set forth in sections A, B, and C below,
                                                  closed-end fund. Accordingly, applicants are not
                                                  requesting section 17(a) relief with respect to
                                                                                                                                                                  1 15   U.S.C. 78s(b)(1).
                                                  transactions in shares of closed-end funds
                                                  (including business development companies).                                                                     2 17   CFR 240.19b–4.



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                                                                              Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices                                                         7393

                                                  of the most significant parts of such                   2. Statutory Basis                                      C. Self-Regulatory Organization’s
                                                  statements.                                                                                                     Statement on Comments on the
                                                                                                             The Exchange believes that the                       Proposed Rule Change Received From
                                                  A. Self-Regulatory Organization’s                       proposed rule change is consistent with                 Members, Participants, or Others
                                                  Statement of the Purpose of, and the                    Section 6(b) 4 of the Act, in general, and
                                                  Statutory Basis for, the Proposed Rule                                                                            No written comments were solicited
                                                                                                          furthers the objectives of Section 6(b)(5)              or received with respect to the proposed
                                                  Change                                                  of the Act,5 in particular in that it is                rule change.
                                                  1. Purpose                                              designed to promote just and equitable
                                                                                                          principles of trade, to foster cooperation              III. Date of Effectiveness of the
                                                     The Exchange proposes to amend                       and coordination with persons engaged                   Proposed Rule Change and Timing for
                                                  Supplementary Material .10 to Rule                      in regulating, clearing, settling,                      Commission Action
                                                  103B—Equities to provide that any                       processing information with respect to,                    The Exchange has filed the proposed
                                                  senior official of a listed company with                and facilitating transactions in                        rule change pursuant to Section
                                                  the rank of Corporate Secretary or                      securities, to remove impediments to                    19(b)(3)(A)(iii) of the Act 6 and Rule
                                                  higher can sign the written request of a                and perfect the mechanism of a free and                 19b–4(f)(6) thereunder.7 Because the
                                                  listed company seeking to change its                    open market and a national market                       proposed rule change does not: (i)
                                                  DMM unit required by that provision.                    system, and, in general, to protect                     Significantly affect the protection of
                                                     Supplementary Material .10 to Rule                   investors and the public interest and is                investors or the public interest; (ii)
                                                  103B—Equities establishes a process to                  not designed to permit unfair                           impose any significant burden on
                                                  be followed by any listed company                       discrimination between customers,                       competition; and (iii) become operative
                                                  wishing to change to a new DMM unit.                                                                            for 30 days from the date on which it
                                                                                                          issuers, brokers, or dealers. The
                                                  The rule provides that a listed company                                                                         was filed, or such shorter time as the
                                                                                                          Exchange believes that the proposed
                                                  wishing to change DMM units must file                                                                           Commission may designate, if
                                                                                                          amendment is consistent with the                        consistent with the protection of
                                                  with the Corporate Secretary of the                     investor protection objectives of Section               investors and the public interest, the
                                                  Exchange a written notice (the ‘‘Issuer                 6(b)(5) because it is designed to ensure                proposed rule change has become
                                                  Notice’’), signed by the company’s chief                that listed companies are able to                       effective pursuant to Section 19(b)(3)(A)
                                                  executive officer. The Issuer Notice is                 expeditiously change their DMM unit                     of the Act 8 and Rule 19b–4(f)(6)
                                                  required to indicate the specific issues                when senior management of the listed                    thereunder.9
                                                  prompting this request. It has been the                 company believes it is desirable to do                     A proposed rule change filed under
                                                  Exchange’s experience that companies                    so. An effective relationship between                   Rule 19b–4(f)(6) 10 normally does not
                                                  have occasionally found it burdensome                   the listed company and the DMM is                       become operative prior to 30 days after
                                                  to obtain the signature of their CEO for                important to the maintenance of a high                  the date of the filing. However, pursuant
                                                  purposes of submitting an Issuer Notice                                                                         to Rule 19b–4(f)(6)(iii),11 the
                                                                                                          quality market for the company’s
                                                  and that this requirement has caused an                                                                         Commission may designate a shorter
                                                                                                          securities and is therefore in the
                                                  undesirable delay when companies are                                                                            time if such action is consistent with the
                                                                                                          interests of investors.
                                                  making their submissions. We also note                                                                          protection of investors and the public
                                                  that this requirement is inconsistent                   B. Self-Regulatory Organization’s                       interest. The Exchange has asked the
                                                  with the provisions of Rule 103B—                       Statement on Burden on Competition                      Commission to waive the 30-day
                                                  Equities in relation to an issuer’s initial                                                                     operative delay so that the proposed
                                                  selection of a DMM, which provides                         The Exchange does not believe that                   rule change may become operative
                                                  that any senior official with the rank of               the proposed rule change will impose                    immediately. The Exchange believes
                                                  Corporate Secretary or higher (or, in the               any burden on competition that is not                   that providing greater flexibility in the
                                                  case of a structured product listing, a                 necessary or appropriate in furtherance                 preparation of the paperwork needed to
                                                  senior officer of the issuer) can sign the              of the purpose of the Act. The proposed                 request a change of DMM unit is in the
                                                  notice in which a listed company                        rule change is designed to permit listed                interests of investors as it is important
                                                  informs the Exchange of its initial                     companies to apply for a change in the                  to the maintenance of a high quality
                                                  selection of a DMM unit. It has been the                DMM unit allocated to their securities                  market for an issuer’s stock that the
                                                  Exchange’s experience that a senior                     on the basis of a notice signed by any                  issuer has a good relationship with its
                                                  officer other than the chief executive                  officer with the title of Corporate                     DMM. As the Exchange notes in its
                                                  officer often manages the DMM                           Secretary or higher rather than requiring               filing, the proposal would better
                                                  relationship on behalf of the listed                    that it be signed in all cases by the CEO,              conform the process for changing a
                                                  company and has authority to take                       as is currently the case. The proposed                  DMM to that which is used for initially
                                                  action in relation to that relationship.                amendment simply provides more                          selecting a DMM. In particular, the
                                                  We also note that the NYSE recently                     flexibility in providing the required                   officer’s signature that would be
                                                  amended its parallel provision (Section                 paperwork and conforms the signing                      required to change a company’s DMM
                                                  806.01 of the NYSE’s Listed Company
                                                                                                          requirements with respect to the
                                                  Manual) to address this issue by                                                                                  6 15  U.S.C. 78s(b)(3)(A)(iii).
                                                                                                          commencement and severing of a listed
                                                  providing that an Issuer Notice may be                                                                            7 17  CFR 240.19b–4(f)(6).
                                                                                                          company’s relationship with its DMM                        8 15 U.S.C. 78s(b)(3)(A).
                                                  signed by an official of the listed
                                                                                                          unit, but does not change any of the                       9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                  company with the rank of Corporate                                                                              4(f)(6)(iii) requires the Exchange to give the
                                                                                                          substantive rights of the listed company
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  Secretary or higher.3 Consequently, we                                                                          Commission written notice of the Exchange’s intent
                                                  propose to amend Supplementary                          or the DMM unit in any way. As such,                    to file the proposed rule change, along with a brief
                                                  Material .10 to Rule 103B—Equities to                   the Exchange does not expect the rule                   description and text of the proposed rule change,
                                                  make the same change.                                   change to have any significant impact                   at least five business days prior to the date of filing
                                                                                                                                                                  of the proposed rule change, or such shorter time
                                                                                                          on competition.                                         as designated by the Commission. The Exchange
                                                    3 See Securities Exchange Act Release No. 76591                                                               has satisfied this requirement.
                                                                                                            4 15   U.S.C. 78f(b).                                    10 17 CFR 240.19b–4(f)(6).
                                                  (December 8, 2015), 80 FR 77392 (December 14,
                                                  2015) (SR–NYSE–2015–63).                                  5 15   U.S.C. 78f(b)(5).                                 11 17 CFR 240.19b–4(f)(6)(iii).




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                                                  7394                        Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices

                                                  must be that of a senior official at the                proposed rule change between the                      December 16, 2015.3 The Commission
                                                  company with a rank of Corporate                        Commission and any person, other than                 received one comment letter on the
                                                  Secretary or above. Based on the                        those that may be withheld from the                   proposed rule change.4 On January 20,
                                                  foregoing, the Commission believes that                 public in accordance with the                         2016, the Exchange filed a response
                                                  waiving the 30-day operative delay is                   provisions of 5 U.S.C. 552, will be                   letter.5 On January 28, 2016, the
                                                  consistent with the protection of                       available for Web site viewing and                    Exchange filed Amendment No. 1 to the
                                                  investors and the public interest. For                  printing in the Commission’s Public                   proposed rule change.6 The Commission
                                                  this reason, the Commission hereby                      Reference Room, 100 F Street NE.,                     is publishing this notice to solicit
                                                  waives the 30-day operative delay and                   Washington, DC 20549 on official                      comments on Amendment No. 1 from
                                                  designates the proposal operative upon                  business days between the hours of                    interested persons and is approving the
                                                  filing.12                                               10:00 a.m. and 3:00 p.m. Copies of the                proposed rule change, as modified by
                                                     At any time within 60 days of the                    filing also will be available for                     Amendment No. 1, on an accelerated
                                                  filing of the proposed rule change, the                 inspection and copying at the principal               basis.
                                                  Commission summarily may                                office of the Exchange. All comments
                                                                                                          received will be posted without change;               II. Description of the Proposal, as
                                                  temporarily suspend such rule change if
                                                                                                          the Commission does not edit personal                 Modified by Amendment No. 1
                                                  it appears to the Commission that such
                                                  action is necessary or appropriate in the               identifying information from                            The Exchange proposes to change its
                                                  public interest, for the protection of                  submissions. You should submit only                   rules to provide that the co-location
                                                  investors, or otherwise in furtherance of               information that you wish to make                     services offered by the Exchange
                                                  the purposes of the Act. If the                         available publicly. All submissions                   include three time feeds and four Partial
                                                  Commission takes such action, the                       should refer to File Number SR–                       Cabinet Solution bundles, and to
                                                  Commission shall institute proceedings                  NYSEMKT–2016–14, and should be                        establish fees for these services.
                                                  to determine whether the proposed rule                  submitted on or before March 3, 2016.
                                                                                                                                                                Time Feeds
                                                  change should be approved or                              For the Commission, by the Division of
                                                  disapproved.                                            Trading and Markets, pursuant to delegated               The Exchange proposes to offer Users
                                                                                                          authority.13                                          the option to purchase connectivity to
                                                  IV. Solicitation of Comments                            Brent J. Fields,                                      one or more of three time feeds.7 Each
                                                    Interested persons are invited to                     Secretary.                                            proposed time feed provides a feed with
                                                  submit written data, views, and                         [FR Doc. 2016–02729 Filed 2–10–16; 8:45 am]           the current time of day using one of
                                                  arguments concerning the foregoing,                     BILLING CODE 8011–01–P                                three different time protocols: Global
                                                  including whether the proposed rule                                                                           Positioning System (‘‘GPS’’) Time
                                                  change is consistent with the Act.                                                                            Source, the Network Time Protocol
                                                  Comments may be submitted by any of                     SECURITIES AND EXCHANGE                               (‘‘NTP’’), and Precision Timing Protocol
                                                  the following methods:                                  COMMISSION
                                                                                                                                                                   3 See Securities Exchange Act Release No. 34–
                                                  Electronic Comments                                     [Release No. 34–77072; File No. SR–NYSE–              76612 (December 10, 2015), 80 FR 78269
                                                                                                          2015–53]
                                                    • Use the Commission’s Internet                                                                             (‘‘Notice’’). On January 28, 2016, the Exchange
                                                                                                                                                                consented to extending the time period for the
                                                  comment form (http://www.sec.gov/                       Self-Regulatory Organizations; New                    Commission to either approve or disapprove the
                                                  rules/sro.shtml); or                                    York Stock Exchange LLC; Notice of                    proposed rule change, or to institute proceedings to
                                                    • Send an email to rule-comments@                     Filing of Amendment No. 1 and Order                   determine whether to approve or disapprove the
                                                  sec.gov. Please include File Number SR–                                                                       proposed rule change, to February 5, 2016.
                                                                                                          Granting Accelerated Approval of                         4 See letter from Kermit Kubitz to the
                                                  NYSEMKT–2016–14 on the subject line.                    Proposed Rule Change, as Modified by                  Commission, dated January 6, 2016 (‘‘Kubitz
                                                  Paper Comments                                          Amendment No. 1, To Provide That the                  Letter’’).
                                                                                                          Co-Location Services Offered by the                      5 See letter from Martha Redding Senior Counsel
                                                     • Send paper comments in triplicate                  Exchange Include Three Time Feeds                     & Assistant Secretary, NYSE to Brent J. Fields,
                                                  to Secretary, Securities and Exchange                   and Four Partial Cabinet Bundle
                                                                                                                                                                Secretary of the Commission, dated January 20,
                                                  Commission, 100 F Street NE.,                                                                                 2016 (‘‘Exchange Response Letter’’).
                                                                                                          Options                                                  6 Amendment No. 1 (i) updates the proposal to
                                                  Washington, DC 20549–1090.                                                                                    specify that that Partial Cabinet Solution Bundles,
                                                  All submissions should refer to File                    February 5, 2016.                                     originally proposed to be offered on January 1,
                                                  Number SR–NYSEMKT–2016–14. This                                                                               2016, instead will be offered on the date that is the
                                                                                                          I. Introduction                                       later of February 1, 2016 and the date of any
                                                  file number should be included on the                                                                         Commission approval of the proposal; and (ii) as
                                                  subject line if email is used. To help the                 On November 27, 2015 the New York
                                                                                                                                                                described further below, adds clarity to the
                                                  Commission process and review your                      Stock Exchange LLC (‘‘the Exchange’’)                 proposal by specifying the differences in precision
                                                  comments more efficiently, please use                   filed with the Securities and Exchange                among the three time feeds.
                                                  only one method. The Commission will                    Commission (‘‘Commission’’), pursuant                    7 For purposes of the Exchange’s co-location


                                                  post all comments on the Commission’s                   to Section 19(b)(1) of the Securities                 services, a ‘‘User’’ means any market participant
                                                                                                          Exchange Act of 1934 (‘‘Act’’) 1 and Rule             that requests to receive co-location services directly
                                                  Internet Web site (http://www.sec.gov/                                                                        from the Exchange, a ‘‘Hosting User’’ means a User
                                                  rules/sro.shtml). Copies of the                         19b–4 thereunder,2 a proposed rule                    that hosts a Hosted Customer in the User’s co-
                                                  submission, all subsequent                              change to provide that the co-location                location space, and a ‘‘Hosted Customer’’ means a
                                                  amendments, all written statements                      services offered by the Exchange                      customer of a Hosting User that is hosted in a
                                                                                                          include three time feeds and four                     Hosting User’s co-location space. See Securities
                                                  with respect to the proposed rule                                                                             Exchange Act Release No. 76008 (September 29,
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  change that are filed with the                          bundles of co-location services (‘‘Partial            2015), 80 FR 60190 (October 5, 2015) (SR–NYSE–
                                                  Commission, and all written                             Cabinet Solution bundles’’). The                      2015–40). As specified in the Price List, a User that
                                                  communications relating to the                          proposed rule change was published for                incurs co-location fees for a particular co-location
                                                                                                          comment in the Federal Register on                    service pursuant thereto would not be subject to co-
                                                                                                                                                                location fees for the same co-location service
                                                    12 For purposes only of waiving the 30-day                                                                  charged by the Exchange’s affiliates NYSE MKT
                                                                                                            13 17 CFR 200.30–3(a)(12), (59).
                                                  operative delay, the Commission has considered the                                                            LLC and NYSE Arca, Inc. See Securities Exchange
                                                                                                            1 15 U.S.C. 78s(b)(1).
                                                  proposed rule’s impact on efficiency, competition,                                                            Act Release No. 70206 (August 15, 2013), 78 FR
                                                  and capital formation. See 15 U.S.C. 78c(f).              2 17 CFR 240.19b–4.                                 51765 (August 21, 2013) (SR–NYSE–2013–59).



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Document Created: 2016-02-11 00:03:29
Document Modified: 2016-02-11 00:03:29
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 7392 

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