81_FR_80924 81 FR 80703 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Temporarily Widen Price Collar Thresholds for the Core Open Auction and Trading Halt Auctions

81 FR 80703 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Temporarily Widen Price Collar Thresholds for the Core Open Auction and Trading Halt Auctions

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 221 (November 16, 2016)

Page Range80703-80705
FR Document2016-27470

Federal Register, Volume 81 Issue 221 (Wednesday, November 16, 2016)
[Federal Register Volume 81, Number 221 (Wednesday, November 16, 2016)]
[Notices]
[Pages 80703-80705]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27470]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79275; File No. SR-NYSEArca-2016-146]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Temporarily 
Widen Price Collar Thresholds for the Core Open Auction and Trading 
Halt Auctions

November 9, 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 November 9, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 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 temporarily widen price collar thresholds 
for the Core Open Auction and Trading Halt Auctions, which would be 
operative on November 9, 2016 only. 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
    The Exchange proposes to temporarily widen price collar thresholds 
for the Core Open Auction and Trading Halt Auctions, which would be 
operative for November 9, 2016 only.
    On November 8, 2016, the United States held an election to decide, 
among other things, the next President of the United States. This 
election result has caused market volatility. This spike in market 
volatility has also impacted the pricing of Exchange Traded Products 
(``ETP''), the majority of which are listed on the Exchange.
    Because of the level of market volatility, the Exchange believes 
that widening the Auction Collars for the Core Open Auction and Trading 
Halt Auctions for November 9, 2016 only would assist the Exchange in 
conducting fair and orderly auctions.
    As set forth in Rule 7.35(a)(10), the price collar thresholds for 
the Core Open Auction and Trading Halt Auctions are currently set at 
10% for securities with an Auction Reference Price of $25.00 or less, 
5% for securities with an Auction Reference Price greater than $25.00 
but less than or equal to $50.00, and 3% for securities with an Auction 
Reference Price greater than $50.00.\4\
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    \4\ The Auction Reference Price for the Core Open Auction is the 
midpoint of the Auction NBBO or, if the Auction NBBO is locked, the 
locked price. If there is no Auction NBBO, the prior trading day's 
Official Closing Price. The Auction Reference Price for the Trading 
Halt Auction is the last consolidated round-lot price of that 
trading day, and if none, the prior trading day's Official Closing 
Price. See NYSE Arca Equities Rule 7.35(a)(8).
---------------------------------------------------------------------------

    The Exchange proposes to apply Auction Collars of 10% for all 
Auction-Eligible Securities,\5\ regardless of the Auction Reference 
Price. The Exchange believes that for securities priced greater than 
$25.00, the proposed wider price collar threshold will allow for 
additional price movements that is expected because of the volatility 
in the market, while continuing to prevent auctions from occurring at 
prices significantly away from the applicable Auction Reference Price. 
The proposed 10% price collar threshold for the Core Open Auction is 
the same as currently

[[Page 80704]]

used by the Nasdaq Stock Market LLC (``Nasdaq'') for its opening 
crosses.\6\
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    \5\ For the Core Open Auction, Auction-Eligible Securities are 
all securities for which the Exchange is the primary listing market 
and UTP Securities designated by the Exchange. For the Trading Halt 
Auction, Auction-Eligible Securities are securities for which the 
Exchange is the primary listing market. See NYSE Arca Equities Rule 
7.35(a)(1)(A) and (B).
    \6\ See Nasdaq Rule 4752(d)(2)(E) and http://www.nasdaqtrader.com/content/productsservices/trading/crosses/openclose_faqs.pdf.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\7\ in general, and furthers the objectives of Section 6(b)(5) of 
the Act,\8\ in particular, in that it is designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, and in general, to protect 
investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the Exchange believes that the impact of the results 
of the presidential election on November 8, 2016 has resulted in global 
market volatility and the U.S. ETP market is not immune. In response to 
this market volatility, the Exchange believes that it would promote the 
protection of investors and the public interest to temporarily widen 
the price collar thresholds for the Core Open Auction and Trading Halt 
Auctions on November 9, 2016 only because it would promote fair and 
orderly auctions. The Exchange further believes that widening the price 
collar thresholds would remove impediments to and perfect the mechanism 
of a national market system because it is designed to allow for greater 
price movement, while at the same time preventing auction trades from 
occurring at prices significantly away from the applicable Auction 
Reference Price. Accordingly, investors would be protected from 
executions significantly away from the last sale in a security or other 
applicable reference price, but natural price fluctuations resulting 
from the market volatility would be permitted. In addition, the 
Exchange believes that widening the Auction Collars could reduce the 
possibility of securities triggering multiple trading pauses under the 
Regulation NMS Plan to Address Market Volatility.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change is 
not designed to address any competitive issues but rather is designed 
to ensure a fair and orderly market by temporarily widening the price 
collar thresholds for the Core Open Auction and Trading Halt Auctions 
on a trading day with market volatility due to the results of the 
presidential election, In addition, the proposed rule change is 
intended to be in effect for November 9, 2016 only to respond to unique 
events relating to U.S. presidential election and therefore will not 
create a burden 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

    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, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). The Exchange has requested that the 
Commission waive the requirement that the Exchange provide the 
Commission written notice of its intent to file the proposed rule 
change, along with a brief description and the text of the proposed 
rule change, at least five business days prior to the date on which 
the Exchange filed the proposed rule change pursuant to Rule 19b-
4(f)(6)(iii). The Commission hereby grants this request.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \11\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The Exchange 
stated that waiver of the operative delay would allow the Exchange to 
immediately implement the proposed rule change, thereby promoting the 
operation of a fair and orderly market on a day with market volatility 
due to the U.S. presidential election. The Commission believes the 
waiver of the operative delay is consistent with the protection of 
investors and the public interest. Therefore, the Commission hereby 
waives the operative delay and designates the proposal operative upon 
filing.\13\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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-NYSEArca-2016-146 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-2016-146. 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

[[Page 80705]]

available for Web site viewing and printing in the Commission's Public 
Reference Room, 100 F Street NE., Washington, DC 20549 on official 
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 
such filing also will be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NYSEArca-2016-146, and should be submitted on or before 
December 7, 2016.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Brent J. Fields,
Secretary.
[FR Doc. 2016-27470 Filed 11-15-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                              Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Notices                                                     80703

                                                    Electronic Comments                                       SECURITIES AND EXCHANGE                               A. Self-Regulatory Organization’s
                                                                                                              COMMISSION                                            Statement of the Purpose of, and the
                                                      • Use the Commission’s Internet                                                                               Statutory Basis for, the Proposed Rule
                                                    comment form (http://www.sec.gov/                                                                               Change
                                                                                                              [Release No. 34–79275; File No. SR–
                                                    rules/sro.shtml); or
                                                                                                              NYSEArca–2016–146]                                    1. Purpose
                                                      • Send an email to rule-comments@
                                                    sec.gov. Please include File Number SR–                   Self-Regulatory Organizations; NYSE                      The Exchange proposes to temporarily
                                                    NASDAQ–2016–150 on the subject line.                      Arca, Inc.; Notice of Filing and                      widen price collar thresholds for the
                                                                                                              Immediate Effectiveness of Proposed                   Core Open Auction and Trading Halt
                                                    Paper Comments                                                                                                  Auctions, which would be operative for
                                                                                                              Rule Change To Temporarily Widen
                                                                                                                                                                    November 9, 2016 only.
                                                      • Send paper comments in triplicate                     Price Collar Thresholds for the Core
                                                                                                              Open Auction and Trading Halt                            On November 8, 2016, the United
                                                    to Secretary, Securities and Exchange
                                                                                                              Auctions                                              States held an election to decide, among
                                                    Commission, 100 F Street NE.,
                                                                                                                                                                    other things, the next President of the
                                                    Washington, DC 20549–1090.                                                                                      United States. This election result has
                                                                                                              November 9, 2016.
                                                    All submissions should refer to File                                                                            caused market volatility. This spike in
                                                                                                                 Pursuant to Section 19(b)(1) 1 of the
                                                    Number SR–NASDAQ–2016–150. This                                                                                 market volatility has also impacted the
                                                                                                              Securities Exchange Act of 1934 (the                  pricing of Exchange Traded Products
                                                    file number should be included on the                     ‘‘Act’’),2 and Rule 19b–4 thereunder,3
                                                    subject line if email is used. To help the                                                                      (‘‘ETP’’), the majority of which are listed
                                                                                                              notice is hereby given that on November               on the Exchange.
                                                    Commission process and review your                        9, 2016, NYSE Arca, Inc. (the
                                                    comments more efficiently, please use                                                                              Because of the level of market
                                                                                                              ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with             volatility, the Exchange believes that
                                                    only one method. The Commission will                      the Securities and Exchange
                                                    post all comments on the Commission’s                                                                           widening the Auction Collars for the
                                                                                                              Commission (the ‘‘Commission’’) the                   Core Open Auction and Trading Halt
                                                    Internet Web site (http://www.sec.gov/                    proposed rule change as described in
                                                    rules/sro.shtml). Copies of the                                                                                 Auctions for November 9, 2016 only
                                                                                                              Items I and II below, which Items have                would assist the Exchange in
                                                    submission, all subsequent                                been prepared by the self-regulatory                  conducting fair and orderly auctions.
                                                    amendments, all written statements                        organization. The Commission is                          As set forth in Rule 7.35(a)(10), the
                                                    with respect to the proposed rule                         publishing this notice to solicit                     price collar thresholds for the Core
                                                    change that are filed with the                            comments on the proposed rule change                  Open Auction and Trading Halt
                                                    Commission, and all written                               from interested persons.                              Auctions are currently set at 10% for
                                                    communications relating to the                                                                                  securities with an Auction Reference
                                                    proposed rule change between the                          I. Self-Regulatory Organization’s                     Price of $25.00 or less, 5% for securities
                                                    Commission and any person, other than                     Statement of the Terms of Substance of                with an Auction Reference Price greater
                                                    those that may be withheld from the                       the Proposed Rule Change                              than $25.00 but less than or equal to
                                                    public in accordance with the                                                                                   $50.00, and 3% for securities with an
                                                    provisions of 5 U.S.C. 552, will be                          The Exchange proposes to temporarily
                                                                                                              widen price collar thresholds for the                 Auction Reference Price greater than
                                                    available for Web site viewing and                                                                              $50.00.4
                                                    printing in the Commission’s Public                       Core Open Auction and Trading Halt
                                                                                                              Auctions, which would be operative on                    The Exchange proposes to apply
                                                    Reference Room, 100 F Street NE.,                                                                               Auction Collars of 10% for all Auction-
                                                    Washington, DC 20549, on official                         November 9, 2016 only. The proposed
                                                                                                                                                                    Eligible Securities,5 regardless of the
                                                    business days between the hours of                        rule change is available on the
                                                                                                                                                                    Auction Reference Price. The Exchange
                                                    10:00 a.m. and 3:00 p.m. Copies of the                    Exchange’s Web site at www.nyse.com,                  believes that for securities priced greater
                                                    filing also will be available for                         at the principal office of the Exchange,              than $25.00, the proposed wider price
                                                    inspection and copying at the principal                   and at the Commission’s Public                        collar threshold will allow for
                                                    office of the Exchange. All comments                      Reference Room.                                       additional price movements that is
                                                    received will be posted without change;                   II. Self-Regulatory Organization’s                    expected because of the volatility in the
                                                    the Commission does not edit personal                     Statement of the Purpose of, and                      market, while continuing to prevent
                                                    identifying information from                              Statutory Basis for, the Proposed Rule                auctions from occurring at prices
                                                    submissions. You should submit only                       Change                                                significantly away from the applicable
                                                    information that you wish to make                                                                               Auction Reference Price. The proposed
                                                    available publicly. All submissions                         In its filing with the Commission, the              10% price collar threshold for the Core
                                                    should refer to File Number SR–                           self-regulatory organization included                 Open Auction is the same as currently
                                                    NASDAQ–2016–150 and should be                             statements concerning the purpose of,
                                                    submitted on or before December 7,                        and basis for, the proposed rule change                  4 The Auction Reference Price for the Core Open

                                                                                                                                                                    Auction is the midpoint of the Auction NBBO or,
                                                    2016.                                                     and discussed any comments it received                if the Auction NBBO is locked, the locked price. If
                                                                                                              on the proposed rule change. The text                 there is no Auction NBBO, the prior trading day’s
                                                      For the Commission, by the Division of
                                                                                                              of those statements may be examined at                Official Closing Price. The Auction Reference Price
                                                    Trading and Markets, pursuant to delegated                                                                      for the Trading Halt Auction is the last consolidated
                                                    authority.7
                                                                                                              the places specified in Item IV below.
                                                                                                                                                                    round-lot price of that trading day, and if none, the
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                              The Exchange has prepared summaries,                  prior trading day’s Official Closing Price. See NYSE
                                                    Brent J. Fields,
                                                                                                              set forth in sections A, B, and C below,              Arca Equities Rule 7.35(a)(8).
                                                    Secretary.                                                of the most significant parts of such                    5 For the Core Open Auction, Auction-Eligible

                                                    [FR Doc. 2016–27472 Filed 11–15–16; 8:45 am]                                                                    Securities are all securities for which the Exchange
                                                                                                              statements.                                           is the primary listing market and UTP Securities
                                                    BILLING CODE 8011–01–P
                                                                                                                                                                    designated by the Exchange. For the Trading Halt
                                                                                                                1 15
                                                                                                                                                                    Auction, Auction-Eligible Securities are securities
                                                                                                                     U.S.C. 78s(b)(1).
                                                                                                                                                                    for which the Exchange is the primary listing
                                                                                                                2 15 U.S.C. 78a.                                    market. See NYSE Arca Equities Rule 7.35(a)(1)(A)
                                                      7 17   CFR 200.30–3(a)(12).                               3 17 CFR 240.19b–4.                                 and (B).



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                                                    80704                   Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Notices

                                                    used by the Nasdaq Stock Market LLC                     address any competitive issues but                     consistent with the protection of
                                                    (‘‘Nasdaq’’) for its opening crosses.6                  rather is designed to ensure a fair and                investors and the public interest.
                                                                                                            orderly market by temporarily widening                 Therefore, the Commission hereby
                                                    2. Statutory Basis
                                                                                                            the price collar thresholds for the Core               waives the operative delay and
                                                       The proposed rule change is                          Open Auction and Trading Halt                          designates the proposal operative upon
                                                    consistent with Section 6(b) of the Act,7               Auctions on a trading day with market                  filing.13
                                                    in general, and furthers the objectives of              volatility due to the results of the                      At any time within 60 days of the
                                                    Section 6(b)(5) of the Act,8 in particular,             presidential election, In addition, the                filing of the proposed rule change, the
                                                    in that it is designed to prevent                       proposed rule change is intended to be                 Commission summarily may
                                                    fraudulent and manipulative acts and                    in effect for November 9, 2016 only to                 temporarily suspend such rule change if
                                                    practices, to promote just and equitable                respond to unique events relating to                   it appears to the Commission that such
                                                    principles of trade, to foster cooperation              U.S. presidential election and therefore               action is necessary or appropriate in the
                                                    and coordination with persons engaged                   will not create a burden on competition.               public interest, for the protection of
                                                    in facilitating transactions in securities,                                                                    investors, or otherwise in furtherance of
                                                    and to remove impediments to and                        C. Self-Regulatory Organization’s                      the purposes of the Act. If the
                                                    perfect the mechanism of a free and                     Statement on Comments on the                           Commission takes such action, the
                                                    open market and a national market                       Proposed Rule Change Received From                     Commission shall institute proceedings
                                                    system, and in general, to protect                      Members, Participants, or Others                       to determine whether the proposed rule
                                                    investors and the public interest.                        No written comments were solicited                   change should be approved or
                                                       In particular, the Exchange believes                 or received with respect to the proposed               disapproved.
                                                    that the impact of the results of the                   rule change.
                                                    presidential election on November 8,                                                                           IV. Solicitation of Comments
                                                    2016 has resulted in global market                      III. Date of Effectiveness of the                        Interested persons are invited to
                                                    volatility and the U.S. ETP market is not               Proposed Rule Change and Timing for                    submit written data, views, and
                                                    immune. In response to this market                      Commission Action                                      arguments concerning the foregoing,
                                                    volatility, the Exchange believes that it                  Because the proposed rule change                    including whether the proposed rule
                                                    would promote the protection of                         does not (i) significantly affect the                  change is consistent with the Act.
                                                    investors and the public interest to                    protection of investors or the public                  Comments may be submitted by any of
                                                    temporarily widen the price collar                      interest; (ii) impose any significant                  the following methods:
                                                    thresholds for the Core Open Auction                    burden on competition; and (iii) become
                                                                                                                                                                   Electronic Comments
                                                    and Trading Halt Auctions on                            operative for 30 days from the date on
                                                    November 9, 2016 only because it                        which it was filed, or such shorter time                 • Use the Commission’s Internet
                                                    would promote fair and orderly                          as the Commission may designate, it has                comment form (http://www.sec.gov/
                                                    auctions. The Exchange further believes                 become effective pursuant to Section                   rules/sro.shtml); or
                                                    that widening the price collar                          19(b)(3)(A) of the Act 9 and Rule 19b–                   • Send an email to rule-comments@
                                                    thresholds would remove impediments                     4(f)(6) thereunder.10                                  sec.gov. Please include File Number SR–
                                                    to and perfect the mechanism of a                          A proposed rule change filed                        NYSEArca-2016–146 on the subject line.
                                                    national market system because it is                    pursuant to Rule 19b–4(f)(6) under the                 Paper Comments
                                                    designed to allow for greater price                     Act 11 normally does not become
                                                    movement, while at the same time                        operative for 30 days after the date of its               • Send paper comments in triplicate
                                                    preventing auction trades from                          filing. However, Rule 19b–4(f)(6)(iii) 12              to Brent J. Fields, Secretary, Securities
                                                    occurring at prices significantly away                  permits the Commission to designate a                  and Exchange Commission, 100 F Street
                                                    from the applicable Auction Reference                   shorter time if such action is consistent              NE., Washington, DC 20549–1090.
                                                    Price. Accordingly, investors would be                  with the protection of investors and the               All submissions should refer to File
                                                    protected from executions significantly                 public interest. The Exchange has asked                Number SR–NYSEArca-2016–146. This
                                                    away from the last sale in a security or                the Commission to waive the 30-day                     file number should be included on the
                                                    other applicable reference price, but                   operative delay so that the proposal may               subject line if email is used. To help the
                                                    natural price fluctuations resulting from               become operative immediately upon                      Commission process and review your
                                                    the market volatility would be                          filing. The Exchange stated that waiver                comments more efficiently, please use
                                                    permitted. In addition, the Exchange                    of the operative delay would allow the                 only one method. The Commission will
                                                    believes that widening the Auction                      Exchange to immediately implement the                  post all comments on the Commission’s
                                                    Collars could reduce the possibility of                 proposed rule change, thereby                          Internet Web site (http://www.sec.gov/
                                                    securities triggering multiple trading                  promoting the operation of a fair and                  rules/sro.shtml). Copies of the
                                                    pauses under the Regulation NMS Plan                    orderly market on a day with market                    submission, all subsequent
                                                    to Address Market Volatility.                           volatility due to the U.S. presidential                amendments, all written statements
                                                                                                            election. The Commission believes the                  with respect to the proposed rule
                                                    B. Self-Regulatory Organization’s                                                                              change that are filed with the
                                                    Statement on Burden on Competition                      waiver of the operative delay is
                                                                                                                                                                   Commission, and all written
                                                      The Exchange does not believe that                      9 15  U.S.C. 78s(b)(3)(A).                           communications relating to the
                                                    the proposed rule change would impose                     10 17  CFR 240.19b–4(f)(6). The Exchange has         proposed rule change between the
                                                    any burden on competition that is not                   requested that the Commission waive the                Commission and any person, other than
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    necessary or appropriate in furtherance                 requirement that the Exchange provide the              those that may be withheld from the
                                                                                                            Commission written notice of its intent to file the
                                                    of the purposes of the Act. The                         proposed rule change, along with a brief description   public in accordance with the
                                                    proposed rule change is not designed to                 and the text of the proposed rule change, at least     provisions of 5 U.S.C. 552, will be
                                                                                                            five business days prior to the date on which the
                                                       6 See Nasdaq Rule 4752(d)(2)(E) and http://          Exchange filed the proposed rule change pursuant          13 For purposes only of waiving the 30-day
                                                    www.nasdaqtrader.com/content/productsservices/          to Rule 19b–4(f)(6)(iii). The Commission hereby        operative delay, the Commission has also
                                                    trading/crosses/openclose_faqs.pdf.                     grants this request.                                   considered the proposed rule’s impact on
                                                       7 15 U.S.C. 78f(b).                                     11 17 CFR 240.19b–4(f)(6).
                                                                                                                                                                   efficiency, competition, and capital formation. See
                                                       8 15 U.S.C. 78f(b)(5).                                  12 17 CFR 240.19b–4(f)(6)(iii).                     15 U.S.C. 78c(f).



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                                                                             Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Notices                                                    80705

                                                    available for Web site viewing and                      Exchange pursuant to EDGX Rules                       User (other than a Market Maker 9)
                                                    printing in the Commission’s Public                     15.1(a) and (c).                                      identifies to the Exchange, in writing, as
                                                    Reference Room, 100 F Street NE.,                                                                             a Clearing Member the User requests the
                                                                                                            II. Self-Regulatory Organization’s
                                                    Washington, DC 20549 on official                                                                              ability to give up. With this change, a
                                                                                                            Statement of the Purpose of, and
                                                    business days between the hours of                                                                            Member acting as an options routing
                                                                                                            Statutory Basis for, the Proposed Rule
                                                    10:00 a.m. and 3:00 p.m. Copies of such                                                                       firm on behalf of one or more other
                                                    filing also will be available for                       Change                                                Exchange Members (a ‘‘Routing Firm’’)
                                                    inspection and copying at the principal                   In its filing with the Commission, the              is able to route orders to the Exchange
                                                    office of the Exchange. All comments                    Exchange included statements                          and to immediately give up the party (a
                                                    received will be posted without change;                 concerning the purpose of and basis for               party other than the Routing Firm itself
                                                    the Commission does not edit personal                   the proposed rule change and discussed                or the Routing Firm’s own clearing firm)
                                                    identifying information from                            any comments it received on the                       who will accept and clear any resulting
                                                    submissions. You should submit only                     proposed rule change. The text of these               transaction. Because the Routing Firm is
                                                    information that you wish to make                       statements may be examined at the                     responsible for the decision to route the
                                                    available publicly. All submissions                     places specified in Item IV below. The                order to the Exchange, the Exchange
                                                    should refer to File Number SR–                         Exchange has prepared summaries, set                  believes that such Member should be
                                                    NYSEArca–2016–146, and should be                        forth in Sections A, B, and C below, of               provided the rebate when orders that
                                                    submitted on or before December 7,                      the most significant parts of such                    yield fee code NC or PC are executed.
                                                    2016.                                                   statements.                                           In connection with this change, the
                                                      For the Commission, by the Division of                                                                      Exchange proposes to append new
                                                    Trading and Markets, pursuant to delegated              A. Self-Regulatory Organization’s                     footnote 5 to fee codes NC and PC in the
                                                    authority.14                                            Statement of the Purpose of, and                      Fee Codes and Associated Fees table of
                                                    Brent J. Fields,                                        Statutory Basis for, the Proposed Rule                the fee schedule.
                                                    Secretary.                                              Change
                                                                                                                                                                  2. Statutory Basis
                                                    [FR Doc. 2016–27470 Filed 11–15–16; 8:45 am]            1. Purpose                                               The Exchange believes that the
                                                    BILLING CODE 8011–01–P
                                                                                                               The Exchange proposes to amend its                 proposed rule change is consistent with
                                                                                                            fee schedule to specify in new footnote               the requirements of the Act and the
                                                                                                            5 that when Customer 4 orders are                     rules and regulations thereunder that
                                                    SECURITIES AND EXCHANGE
                                                                                                            submitted with a Designated Give Up, as               are applicable to a national securities
                                                    COMMISSION
                                                                                                            defined below, the applicable rebates for             exchange, and, in particular, with the
                                                    [Release No. 34–79273; File No. SR–                     such orders when executed on the                      requirements of Section 6 of the Act.10
                                                    BatsEDGX–2016–62]                                                                                             Specifically, the Exchange believes that
                                                                                                            Exchange (yielding fee code NC or PC) 5
                                                                                                            are provided to the Member who routed                 the proposed rule change is consistent
                                                    Self-Regulatory Organizations; Bats                                                                           with Section 6(b)(4) of the Act,11 in that
                                                    EDGX Exchange, Inc.; Notice of Filing                   the order to the Exchange.
                                                                                                                                                                  it provides for the equitable allocation
                                                    and Immediate Effectiveness of a                           The Exchange recently amended Rule                 of reasonable dues, fees and other
                                                    Proposed Rule Change to Fees for Use                    21.12 (Clearing Member Give Up) to                    charges among members and other
                                                    of the Exchange’s Equity Options                        expand upon the procedure related to                  persons using any facility or system
                                                    Platform                                                the ‘‘give up’’ of a Clearing Member 6 by             which the Exchange operates or
                                                                                                            Users 7 on the Exchange.8 As amended,                 controls.
                                                    November 9, 2016.
                                                                                                            Rule 21.12 provides that, in addition to                 The Exchange notes that the U.S.
                                                       Pursuant to Section 19(b)(1) of the                  its own Clearing Member (or itself, if the
                                                    Securities Exchange Act of 1934 (the                                                                          options markets are highly competitive,
                                                                                                            firm is self-clearing), a User may                    and the proposed fee structure is
                                                    ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                            identify to the Exchange a Designated                 intended to provide an incentive for
                                                    notice is hereby given that on November
                                                                                                            Give Up, as that term is defined in the               Members utilizing the Exchange’s new
                                                    1, 2016, Bats EDGX Exchange, Inc. (the
                                                                                                            Rule. Specifically, amended Rule                      give up procedure to direct orders to the
                                                    ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
                                                                                                            21.12(b)(1) defines the term Designated               Exchange. The proposal would only
                                                    Securities and Exchange Commission
                                                                                                            Give Up as any Clearing Member that a                 apply to fee codes NC and PC, related
                                                    (the ‘‘Commission’’) the proposed rule
                                                    change as described in Items I, II, and                                                                       to Customer orders, because these are
                                                                                                               4 As defined in the Exchange’s fee schedule
                                                    III below, which Items have been                                                                              the primary rebates in place on the
                                                                                                            available at http://www.bats.com/us/options/
                                                    prepared by the Exchange. The                           membership/fee_schedule/edgx/.
                                                                                                                                                                  Exchange 12 and reflect the primary
                                                    Commission is publishing this notice to                    5 Fee codes NC and PC are appended to Customer     liquidity that the Exchange is seeking to
                                                    solicit comments on the proposed rule                   orders in Non-Penny Pilot and Penny Pilot             attract from Routing Firms that are
                                                    change from interested persons.                         Securities, respectively. Id.                         likely to utilize the give up procedure.
                                                                                                               6 A Clearing Member is defined as ‘‘an Options
                                                                                                                                                                     The Exchange believes that the
                                                    I. Self-Regulatory Organization’s                       Member that is self-clearing or an Options Member
                                                                                                                                                                  proposed amendments to its fee
                                                    Statement of the Terms of the Substance                 that clears EDGX Options Transactions for other
                                                                                                            Members of EDGX Options.’’ See Exchange Rule
                                                    of the Proposed Rule Change                             16.1(a)(15). An Option Member is defined as ‘‘a         9 For purposes of this filing, Market Maker refers

                                                       The Exchange filed a proposal to                     firm, or organization that is registered with the     to Members acting in the capacity of Market Maker
                                                                                                            Exchange pursuant to Chapter XVII of these Rules      and includes all Exchange Market Maker capacities
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                                                    amend the fee schedule applicable to                                                                          e.g., Primary Market Makers.
                                                                                                            for purposes of participating in options trading on
                                                    Members 3 and non-Members of the                        EDGX Options as an ‘Options Order Entry Firm’ or        10 15 U.S.C. 78f.

                                                                                                            ‘Options Market Maker.’’’ See Exchange Rule             11 15 U.S.C. 78f(b)(4).
                                                      14 17 CFR 200.30–3(a)(12).                            16.1(a)(38).                                            12 The Exchange notes that Market Maker orders
                                                      1 15 U.S.C. 78s(b)(1).                                   7 A User is defined as ‘‘any Options Member or
                                                                                                                                                                  yielding fee codes NM and PM do indeed receive
                                                      2 17 CFR 240.19b–4.                                   Sponsored Participant who is authorized to obtain     rebates to the extent a Member qualifies for Market
                                                      3 The term ‘‘Member’’ is defined as ‘‘any             access to the System pursuant to Rule 11.3            Maker Volume Tier 6 pursuant to footnote 2 of the
                                                    registered broker or dealer that has been admitted      (Access).’’ See Exchange Rule 16.1(a)(63).            fee schedule. The Exchange, however, again notes
                                                    to membership in the Exchange.’’ See Exchange              8 See Securities Exchange Act Release No. 79184    that Market Makers are expressly excluded from
                                                    Rule 1.5(n).                                            (October 28, 2016) (SR–BatsEDGX–2016–58).             utilizing the give up procedure.



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Document Created: 2016-11-16 00:58:00
Document Modified: 2016-11-16 00:58:00
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 80703 

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