81 FR 83890 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Introducing NYSE OptX

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 225 (November 22, 2016)

Page Range		83890-83892
FR Document		2016-28034
Federal Register, Volume 81 Issue 225 (Tuesday, November 22, 2016)
[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)]
[Notices]
[Pages 83890-83892]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28034]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79327; File No. SR-NYSEArca-2016-143]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, 
Introducing NYSE OptX

November 16, 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 3, 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, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. On November 15, 2016, the Exchange filed Amendment No. 1 
to the proposal.\4\ The Commission is publishing this notice to solicit 
comments on the proposed rule change, as modified by Amendment No. 1, 
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.
    \4\ In Amendment No. 1, the Exchange proposed to amend note 11, 
infra, to clarify that QCC Orders sent through NYSE OptX to the 
Exchange for execution would comply with the order format and EOC 
entry requirements established by the Exchange, which are set forth 
in Rule 6.67.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to introduce NYSE OptX, an order entry 
platform that would allow for the submission of Qualified Contingent 
Cross orders (``QCC Orders'') by OTP Holders and OTP Firms. 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 83891]]

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 introduce NYSE OptX, an order entry 
platform that would allow for the submission of QCC Orders by OTP 
Holders \5\ and OTP Firms \6\ (collectively, ``OTPs''). OTPs currently 
send QCC Orders through the use of third party front end order 
management systems, such as PrecISE \7\ or PULSe,\8\ or by calling 
Floor Brokers and relaying their orders by telephone.
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    \5\ The term ``OTP Holder'' refers to a natural person, in good 
standing, who has been issued an OTP, or has been named as a 
Nominee. An OTP Holder must be a registered broker or dealer 
pursuant to Section 15 of the Securities Exchange Act of 1934, or a 
nominee or an associated person of a registered broker or dealer 
that has been approved by the Exchange to conduct business on the 
Exchange's Trading Facilities. See Rule 1.1(q).
    \6\ The term ``OTP Firm'' refers to a sole proprietorship, 
partnership, corporation, limited liability company or other 
organization in good standing who holds an OTP or upon whom an 
individual OTP Holder has conferred trading privileges on the 
Exchange's Trading Facilities pursuant to and in compliance with 
Exchange Rules. An OTP Firm must be a registered broker or dealer 
pursuant to Section 15 of the Securities Exchange Act of 1934. See 
Rule 1.1(r).
    \7\ PrecISE Trade[supreg] is a front-end order and execution 
management system for trading options and stock-option combinations. 
See https://www.ise.com/options/precise/.
    \8\ PULSe\SM\ is a front end execution management system that 
allows users to send orders to CBOE, C2 and to other U.S. options 
and stock exchanges. See https://www.cboe.org/hybrid/pulsesalessheet.pdf.
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    NYSE OptX is an order entry platform that utilizes a combination of 
Instant Messaging (IM) and browser-based technology to allow OTPs to 
submit QCC Orders for execution on the Exchange's trading system.\9\ 
There are multiple steps required for OTPs to execute their QCC Orders 
through NYSE OptX.\10\ First, an OTP would send a QCC Order in plain 
text to NYSE OptX.\11\ NYSE OptX would be established by an OTP as an 
IM contact that can be accessed through various instant messaging 
platforms. Next, upon receipt of the plain text message sent by an OTP, 
NYSE OptX would translate the message into a pre-populated order ticket 
with details of the order and return the order ticket to the OTP in a 
browser-based URL. When the OTP opens the URL, the pre-populated order 
ticket would appear with the order information as entered by the OTP. 
The OTP would then confirm the order ticket and submit the order to the 
Exchange for execution, or send the order to a Floor Broker for 
execution. If an OTP sends the order to a Floor Broker, the Floor 
Broker would verify the order and send it through NYSE OptX for 
execution on the Exchange's trading system much like how the Floor 
Broker would normally execute the order but without having to re-key 
the order into the Floor Broker's terminal. After an order is executed 
on the Exchange,\12\ NYSE OptX would remit details of the execution 
back to the OTP.
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    \9\ The Exchange represents that NYSE OptX is merely an instant 
messaging platform to link OTPs with the Exchange's trading system 
(i.e., it is a new means of sending QCC Orders to the Exchange's 
existing trading system), and does not require any changes to the 
Exchange's communication or surveillance rules.
    \10\ OTPs would be required to log into NYSE OptX each trading 
day, similar to how they would log into any other front end order 
management system.
    \11\ OTPs would be required to provide all the essential 
information regarding the QCC Order when sending it to NYSE OptX, 
including the price of the option and the stock, the size and side 
of the order, i.e., buy or sell, and delta. The Exchange represents 
that QCC Orders sent to the Exchange for execution would comply with 
the order format and EOC entry requirements established by the 
Exchange. See Rule 6.67--Order Format and System Entry Requirements. 
See also Amendment No. 1, supra note 4.
    \12\ All executions would be subject to the Exchange's standard 
transaction fees and credits applicable to QCC Orders.
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    NYSE OptX is designed as an alternative to the front end order 
management systems, such as PrecISE and PULSe, and as an alternative to 
the use of telephones for the sending by OTPs of QCC Orders to the 
Exchange. NYSE OptX would not provide OTPs with the capability to send 
any other type of orders or the capability to send QCC Orders for 
execution to other options markets. At this time, OTPs would only be 
able to use NYSE OptX for the transmission of QCC Orders. Use of NYSE 
OptX by OTPs would be voluntary and OTPs would continue to be able to 
submit QCC Orders through the use of a third party front end order 
management system, or by telephone, as they do today.
    While PrecISE and PULSe require software to be installed on a 
desktop computer, NYSE OptX does not require installation of any 
software as it relies on existing instant messaging technology which 
would make its use by OTPs seamless. OTPs would also not need a 
physical workstation to use NYSE OptX.
    The Exchange notes that the use of NYSE OptX to send QCC Orders is 
optional. The Exchange is offering NYSE OptX as a convenience to OTPs 
and NYSE OptX would not be the exclusive means available to OTPs to 
execute QCC Orders on the Exchange. The Exchange will announce the 
effective date of NYSE OptX in a Trader Update to be published no later 
than 90 days following Commission approval. The effective date will be 
no later than 270 days following publication of that Trader Update.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \13\ of 
the Securities Exchange Act of 1934 (the ``Act''), in general, and 
furthers the objectives of Section 6(b)(5),\14\ 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.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposed rule change would promote just 
and equitable principles of trade and remove impediments to and perfect 
the mechanism of a free and open market because offering NYSE OptX as 
an alternate means to submit QCC Orders for execution on the Exchange 
would generally allow the Exchange to better compete for QCC Orders and 
thus enhance competition. The Exchange believes that the proposed rule 
change is reasonable as it could encourage OTPs to direct a greater 
number of QCC Orders to the Exchange instead of sending such orders to 
a competing exchange.
    The Exchange further believes that the proposed rule change would 
allow the Exchange of [sic] offer a new service on an equitable and 
non-discriminatory basis. Specifically, the Exchange believes that use 
of NYSE OptX is equitable as it is voluntary and not required for OTPs 
to execute QCC Orders on the Exchange. Additionally, as proposed, the 
Exchange would provide NYSE OptX to OPTs [sic] on a non-discriminatory 
basis in that NYSE OptX would be available to all OTPs in a `one-size 
fits all' offering in which all OTPs would be subject to the same terms 
and conditions and would receive the same level of service.
    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

[[Page 83892]]

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

    In accordance with Section 6(b)(8) of the Act,\15\ 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. To the contrary, the Exchange believes that 
the proposed rule change evidences the strength of competition in the 
options industry. Specifically, the Exchange believes the proposed rule 
change will enhance the competitiveness of the Exchange relative to 
other options exchanges that transact in QCC Orders.
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    \15\ 15 U.S.C. 78f(b)(8).
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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

    Within 45 days of the date of publication of this notice in the 
Federal Register or up to 90 days (i) as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or (ii) as to which the self-regulatory 
organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be 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, as modified by Amendment No. 1, 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-2016-143 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-NYSEArca-2016-143. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEArca-2016-143 and should 
be submitted on or before December 13, 2016.
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    \16\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
Brent J. Fields,
Secretary.
[FR Doc. 2016-28034 Filed 11-21-16; 8:45 am]
 BILLING CODE 8011-01-P
83890 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices

Additionally, as proposed, the Exchange Electronic Comments SECURITIES AND EXCHANGE
would provide NYSE OptX to ATP COMMISSION
Holders on a non-discriminatory basis • Use the Commission’s Internet
in that NYSE OptX would be available comment form (http://www.sec.gov/ [Release No. 34–79327; File No. SR–
to all ATP Holders in a ‘one-size fits all’ rules/sro.shtml); or NYSEArca–2016–143]
offering in which all ATP Holders • Send an email to rule-
would be subject to the same terms and comments@sec.gov. Please include File Self-Regulatory Organizations; NYSE
conditions and would receive the same Number SR–NYSEMKT–2016–102 on Arca, Inc.; Notice of Filing of Proposed
level of service. the subject line. Rule Change, as Modified by
For these reasons, the Exchange Amendment No. 1 Thereto, Introducing
believes that the proposal is consistent Paper Comments NYSE OptX
with the Act.
• Send paper comments in triplicate November 16, 2016.
B. Self-Regulatory Organization’s to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) 1 of the
Statement on Burden on Competition Commission, 100 F Street NE., Securities Exchange Act of 1934 (the
In accordance with Section 6(b)(8) of Washington, DC 20549–1090. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
the Act,14 the Exchange does not believe notice is hereby given that on November
All submissions should refer to File 3, 2016, NYSE Arca, Inc. (the
that the proposed rule change would Number SR–NYSEMKT–2016–102. This ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
impose any burden on competition that file number should be included on the the Securities and Exchange
is not necessary or appropriate in subject line if email is used. To help the Commission (the ‘‘Commission’’) the
furtherance of the purposes of the Act. Commission process and review your proposed rule change as described in
To the contrary, the Exchange believes comments more efficiently, please use Items I, II, and III below, which Items
that the proposed rule change evidences only one method. The Commission will have been prepared by the self-
the strength of competition in the post all comments on the Commission’s regulatory organization. On November
options industry. Specifically, the Internet Web site (http://www.sec.gov/ 15, 2016, the Exchange filed
Exchange believes the proposed rule
rules/sro.shtml). Copies of the Amendment No. 1 to the proposal.4 The
change will enhance the
submission, all subsequent Commission is publishing this notice to
competitiveness of the Exchange
relative to other options exchanges that amendments, all written statements solicit comments on the proposed rule
transact in paired orders. with respect to the proposed rule change, as modified by Amendment No.
change that are filed with the 1, from interested persons.
C. Self-Regulatory Organization’s Commission, and all written
Statement on Comments on the I. Self-Regulatory Organization’s
communications relating to the Statement of the Terms of Substance of
Proposed Rule Change Received From proposed rule change between the
Members, Participants, or Others the Proposed Rule Change
Commission and any person, other than
those that may be withheld from the The Exchange proposes to introduce
No written comments were solicited
public in accordance with the NYSE OptX, an order entry platform
or received with respect to the proposed
that would allow for the submission of
rule change. provisions of 5 U.S.C. 552, will be
Qualified Contingent Cross orders
available for Web site viewing and
III. Date of Effectiveness of the (‘‘QCC Orders’’) by OTP Holders and
printing in the Commission’s Public OTP Firms. The proposed rule change is
Proposed Rule Change and Timing for
Commission Action Reference Room, 100 F Street NE., available on the Exchange’s Web site at
Washington, DC 20549, on official www.nyse.com, at the principal office of
Within 45 days of the date of business days between the hours of the Exchange, and at the Commission’s
publication of this notice in the Federal 10:00 a.m. and 3:00 p.m. Copies of the Public Reference Room.
Register or up to 90 days (i) as the filing also will be available for
Commission may designate if it finds inspection and copying at the principal II. Self-Regulatory Organization’s
such longer period to be appropriate office of the Exchange. All comments Statement of the Purpose of, and
and publishes its reasons for so finding received will be posted without change; Statutory Basis for, the Proposed Rule
or (ii) as to which the self-regulatory the Commission does not edit personal Change
organization consents, the Commission In its filing with the Commission, the
identifying information from
will: self-regulatory organization included
submissions. You should submit only
(A) By order approve or disapprove statements concerning the purpose of,
information that you wish to make
the proposed rule change, or and basis for, the proposed rule change
available publicly. All submissions
(B) institute proceedings to determine and discussed any comments it received
should refer to File Number SR–
whether the proposed rule change on the proposed rule change. The text
NYSEMKT–2016–102 and should be
should be disapproved. of those statements may be examined at
submitted on or before December 13,
IV. Solicitation of Comments 2016. the places specified in Item IV below.
The Exchange has prepared summaries,
Interested persons are invited to For the Commission, by the Division of set forth in sections A, B, and C below,
submit written data, views, and Trading and Markets, pursuant to delegated
arguments concerning the foregoing, authority.15
sradovich on DSK3GMQ082PROD with NOTICES

1 15 U.S.C.78s(b)(1).
including whether the proposed rule Brent J. Fields, 2 15 U.S.C. 78a.
change, as modified by Amendment No. Secretary. 3 17 CFR 240.19b–4.

1, is consistent with the Act. Comments [FR Doc. 2016–28035 Filed 11–21–16; 8:45 am]
4 In Amendment No. 1, the Exchange proposed to

may be submitted by any of the amend note 11, infra, to clarify that QCC Orders
following methods: BILLING CODE 8011–01–P sent through NYSE OptX to the Exchange for
execution would comply with the order format and
EOC entry requirements established by the
14 15 U.S.C. 78f(b)(8). 15 17 CFR 200.30–3(a)(12). Exchange, which are set forth in Rule 6.67.

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of the most significant parts of such established by an OTP as an IM contact effective date of NYSE OptX in a Trader
statements. that can be accessed through various Update to be published no later than 90
instant messaging platforms. Next, upon days following Commission approval.
A. Self-Regulatory Organization’s
receipt of the plain text message sent by The effective date will be no later than
Statement of the Purpose of, and the
an OTP, NYSE OptX would translate the 270 days following publication of that
Statutory Basis for, the Proposed Rule
Change message into a pre-populated order Trader Update.
ticket with details of the order and
1. Purpose return the order ticket to the OTP in a 2. Statutory Basis
The Exchange proposes to introduce browser-based URL. When the OTP
The proposed rule change is
NYSE OptX, an order entry platform opens the URL, the pre-populated order
consistent with Section 6(b) 13 of the
that would allow for the submission of ticket would appear with the order
information as entered by the OTP. The Securities Exchange Act of 1934 (the
QCC Orders by OTP Holders 5 and OTP ‘‘Act’’), in general, and furthers the
Firms 6 (collectively, ‘‘OTPs’’). OTPs OTP would then confirm the order
ticket and submit the order to the objectives of Section 6(b)(5),14 in
currently send QCC Orders through the
Exchange for execution, or send the particular, in that it is designed to
use of third party front end order
management systems, such as PrecISE 7 order to a Floor Broker for execution. If prevent fraudulent and manipulative
or PULSe,8 or by calling Floor Brokers an OTP sends the order to a Floor acts and practices, to promote just and
and relaying their orders by telephone. Broker, the Floor Broker would verify equitable principles of trade, to foster
NYSE OptX is an order entry platform the order and send it through NYSE cooperation and coordination with
that utilizes a combination of Instant OptX for execution on the Exchange’s persons engaged in facilitating
Messaging (IM) and browser-based trading system much like how the Floor transactions in securities, and to remove
technology to allow OTPs to submit Broker would normally execute the impediments to and perfect the
QCC Orders for execution on the order but without having to re-key the mechanism of a free and open market
Exchange’s trading system.9 There are order into the Floor Broker’s terminal. and a national market system.
multiple steps required for OTPs to After an order is executed on the The Exchange believes the proposed
execute their QCC Orders through NYSE Exchange,12 NYSE OptX would remit rule change would promote just and
OptX.10 First, an OTP would send a details of the execution back to the OTP.
equitable principles of trade and remove
QCC Order in plain text to NYSE NYSE OptX is designed as an
impediments to and perfect the
OptX.11 NYSE OptX would be alternative to the front end order
mechanism of a free and open market
management systems, such as PrecISE
5 The term ‘‘OTP Holder’’ refers to a natural
and PULSe, and as an alternative to the because offering NYSE OptX as an
person, in good standing, who has been issued an use of telephones for the sending by alternate means to submit QCC Orders
OTP, or has been named as a Nominee. An OTP for execution on the Exchange would
Holder must be a registered broker or dealer OTPs of QCC Orders to the Exchange.
pursuant to Section 15 of the Securities Exchange NYSE OptX would not provide OTPs generally allow the Exchange to better
Act of 1934, or a nominee or an associated person with the capability to send any other compete for QCC Orders and thus
of a registered broker or dealer that has been type of orders or the capability to send enhance competition. The Exchange
approved by the Exchange to conduct business on
the Exchange’s Trading Facilities. See Rule 1.1(q). QCC Orders for execution to other believes that the proposed rule change
6 The term ‘‘OTP Firm’’ refers to a sole options markets. At this time, OTPs is reasonable as it could encourage
proprietorship, partnership, corporation, limited would only be able to use NYSE OptX OTPs to direct a greater number of QCC
liability company or other organization in good for the transmission of QCC Orders. Use Orders to the Exchange instead of
standing who holds an OTP or upon whom an
individual OTP Holder has conferred trading of NYSE OptX by OTPs would be sending such orders to a competing
privileges on the Exchange’s Trading Facilities voluntary and OTPs would continue to exchange.
pursuant to and in compliance with Exchange be able to submit QCC Orders through The Exchange further believes that the
Rules. An OTP Firm must be a registered broker or the use of a third party front end order
dealer pursuant to Section 15 of the Securities proposed rule change would allow the
Exchange Act of 1934. See Rule 1.1(r). management system, or by telephone, as Exchange of [sic] offer a new service on
7 PrecISE Trade® is a front-end order and they do today.
an equitable and non-discriminatory
execution management system for trading options While PrecISE and PULSe require
and stock-option combinations. See https:// basis. Specifically, the Exchange
software to be installed on a desktop
www.ise.com/options/precise/. believes that use of NYSE OptX is
computer, NYSE OptX does not require
8 PULSeSM is a front end execution management
installation of any software as it relies equitable as it is voluntary and not
system that allows users to send orders to CBOE, required for OTPs to execute QCC
C2 and to other U.S. options and stock exchanges. on existing instant messaging
See https://www.cboe.org/hybrid/ technology which would make its use Orders on the Exchange. Additionally,
pulsesalessheet.pdf. by OTPs seamless. OTPs would also not as proposed, the Exchange would
9 The Exchange represents that NYSE OptX is
need a physical workstation to use provide NYSE OptX to OPTs [sic] on a
merely an instant messaging platform to link OTPs
with the Exchange’s trading system (i.e., it is a new NYSE OptX. non-discriminatory basis in that NYSE
means of sending QCC Orders to the Exchange’s The Exchange notes that the use of OptX would be available to all OTPs in
existing trading system), and does not require any NYSE OptX to send QCC Orders is a ‘one-size fits all’ offering in which all
changes to the Exchange’s communication or OTPs would be subject to the same
surveillance rules.
optional. The Exchange is offering
10 OTPs would be required to log into NYSE OptX NYSE OptX as a convenience to OTPs terms and conditions and would receive
each trading day, similar to how they would log and NYSE OptX would not be the the same level of service.
into any other front end order management system. exclusive means available to OTPs to
sradovich on DSK3GMQ082PROD with NOTICES

11 OTPs would be required to provide all the
For these reasons, the Exchange
execute QCC Orders on the Exchange. believes that the proposal is consistent
essential information regarding the QCC Order
when sending it to NYSE OptX, including the price
The Exchange will announce the with the Act.
of the option and the stock, the size and side of the
order, i.e., buy or sell, and delta. The Exchange Entry Requirements. See also Amendment No. 1,
represents that QCC Orders sent to the Exchange for supra note 4.
execution would comply with the order format and 12 All executions would be subject to the
13 15 U.S.C. 78f(b).
EOC entry requirements established by the Exchange’s standard transaction fees and credits
Exchange. See Rule 6.67—Order Format and System applicable to QCC Orders. 14 15 U.S.C. 78f(b)(5).

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83892 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices

B. Self-Regulatory Organization’s Commission, 100 F Street NE., (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Statement on Burden on Competition Washington, DC 20549–1090. notice is hereby given that on November
In accordance with Section 6(b)(8) of All submissions should refer to File 4, 2016, The NASDAQ Stock Market
the Act,15 the Exchange does not believe Number SR–NYSEArca–2016–143. This LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
that the proposed rule change would file number should be included on the with the Securities and Exchange
impose any burden on competition that subject line if email is used. To help the Commission (‘‘SEC’’ or ‘‘Commission’’)
is not necessary or appropriate in Commission process and review your the proposed rule change as described
furtherance of the purposes of the Act. comments more efficiently, please use in Items I and II below, which Items
To the contrary, the Exchange believes only one method. The Commission will have been prepared by the Exchange.
that the proposed rule change evidences post all comments on the Commission’s The Commission is publishing this
the strength of competition in the Internet Web site (http://www.sec.gov/ notice to solicit comments on the
options industry. Specifically, the rules/sro.shtml). Copies of the proposed rule change from interested
Exchange believes the proposed rule submission, all subsequent persons.
change will enhance the amendments, all written statements I. Self-Regulatory Organization’s
competitiveness of the Exchange with respect to the proposed rule Statement of the Terms of Substance of
relative to other options exchanges that change that are filed with the the Proposed Rule Change
transact in QCC Orders. Commission, and all written
communications relating to the The Exchange proposes to amend the
C. Self-Regulatory Organization’s proposed rule change between the Limit Order Protection or ‘‘LOP’’ for
Statement on Comments on the Commission and any person, other than members accessing the Nasdaq Market
Proposed Rule Change Received From those that may be withheld from the Center and adding rule text related to a
Members, Participants, or Others public in accordance with the collar applicable to Primary Pegging and
provisions of 5 U.S.C. 552, will be Market Pegging Orders.
No written comments were solicited The text of the proposed rule change
or received with respect to the proposed available for Web site viewing and
printing in the Commission’s Public is available on the Exchange’s Web site
rule change. at http://nasdaq.cchwallstreet.com, at
Reference Room, 100 F Street NE.,
III. Date of Effectiveness of the Washington, DC 20549, on official the principal office of the Exchange, and
Proposed Rule Change and Timing for business days between the hours of at the Commission’s Public Reference
Commission Action 10:00 a.m. and 3:00 p.m. Copies of the Room.
Within 45 days of the date of filing also will be available for II. Self-Regulatory Organization’s
publication of this notice in the Federal inspection and copying at the principal Statement of the Purpose of, and
Register or up to 90 days (i) as the office of the Exchange. All comments Statutory Basis for, the Proposed Rule
Commission may designate if it finds received will be posted without change; Change
such longer period to be appropriate the Commission does not edit personal In its filing with the Commission, the
and publishes its reasons for so finding identifying information from Exchange included statements
or (ii) as to which the self-regulatory submissions. You should submit only concerning the purpose of and basis for
organization consents, the Commission information that you wish to make the proposed rule change and discussed
will: available publicly. All submissions any comments it received on the
(A) By order approve or disapprove should refer to File Number SR– proposed rule change. The text of these
the proposed rule change, or NYSEArca–2016–143 and should be statements may be examined at the
(B) institute proceedings to determine submitted on or before December 13, places specified in Item IV below. The
whether the proposed rule change 2016. Exchange has prepared summaries, set
should be disapproved. For the Commission, by the Division of forth in sections A, B, and C below, of
Trading and Markets, pursuant to delegated the most significant aspects of such
IV. Solicitation of Comments authority.16 statements.
Interested persons are invited to Brent J. Fields,
submit written data, views, and Secretary.
A. Self-Regulatory Organization’s
arguments concerning the foregoing, Statement of the Purpose of, and
[FR Doc. 2016–28034 Filed 11–21–16; 8:45 am]
including whether the proposed rule Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P
change, as modified by Amendment No. Change
1, is consistent with the Act. Comments 1. Purpose
may be submitted by any of the SECURITIES AND EXCHANGE
following methods: The Exchange recently adopted a new
COMMISSION mechanism to protect against erroneous
Electronic Comments [Release No. 34–79330; File No. SR– Limit Orders, which are entered into the
• Use the Commission’s Internet NASDAQ–2016–155] Nasdaq Market Center, at Rule 4757(c).3
comment form (http://www.sec.gov/ This mechanism addresses risks to
Self-Regulatory Organizations; The market participants of human error in
rules/sro.shtml); or
NASDAQ Stock Market LLC; Notice of entering Limit Orders at unintended
• Send an email to rule-comments@ Filing and Immediate Effectiveness of
sec.gov. Please include File Number SR– prices. Specifically, LOP prevents
Proposed Rule Change To Amend the certain Limit Orders from executing or
NYSEArca–2016–143 on the subject
sradovich on DSK3GMQ082PROD with NOTICES

Limit Order Protection for Members being placed on the Order Book at
line. Accessing the Nasdaq Market Center prices outside pre-set standard limits.
Paper Comments
November 16, 2016.
• Send paper comments in triplicate
1 15 U.S.C. 78s(b)(1).
Pursuant to Section 19(b)(1) of the 2 17 CFR 240.19b–4.
to Secretary, Securities and Exchange Securities Exchange Act of 1934 3 See Securities Exchange Act Release No. 78246

[sic] (August 24, 2016), 81 FR 59672 (August 30,
15 15 U.S.C. 78f(b)(8). 16 17 CFR 200.30–3(a)(12). 2016) (SR–NASDAQ–2016–067).

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Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 83890