81 FR 86033 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 5.1(c) Regarding the Requirements for the Listing of Securities That Are Issued by the Exchange or Any of Its Affiliates
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 229 (November 29, 2016)
Federal Register Volume 81, Issue 229 (November 29, 2016)
| Page Range | 86033-86036 | |
| FR Document | 2016-28635 |
[Federal Register Volume 81, Number 229 (Tuesday, November 29, 2016)] [Notices] [Pages 86033-86036] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28635] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79376; File No. SR-NYSEARCA-2016-147] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 5.1(c) Regarding the Requirements for the Listing of Securities That Are Issued by the Exchange or Any of Its Affiliates November 22, 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 10, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Equities Rule 5.1(c) regarding the requirements for the listing of securities that are issued by the Exchange or any of its affiliates. 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. [[Page 86034]] A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend NYSE Arca Equities Rule 5.1(c) (Listing of an Affiliate or Entity that Operates and/or Owns a Trading System or Facility of the Corporation) (``Rule 5.1(c)'') regarding the requirements for the listing of securities that are issued by the Exchange or any of its affiliates. The proposed changes are based on Rule 497 of the Exchange's affiliate New York Stock Exchange LLC (``NYSE'') and Rule 497-Equities of the Exchange's affiliate NYSE MKT LLC (``NYSE MKT'') (together, ``Rule 497'').\4\ The Exchange proposes to amend Rule 5.1(c) to be substantially similar to Rule 497, thereby expanding the Rule 5.1(c) requirements. --------------------------------------------------------------------------- \4\ NYSE Rule 497 and NYSE MKT Rule 497-Equities are substantially similar. See Securities Exchange Act Release Nos. 79130 (October 21, 2016), 81 FR 74847 (October 27, 2016) (SR-NYSE- 2016-67) and 79132 (October 21, 2016), 81 FR 74851 (October 27, 2016) (SR-NYSEMKT-2016-94). --------------------------------------------------------------------------- Rule 5.1(c) provides that if a ``security of an affiliate of the Corporation or any entity that operates and/or owns a trading system or facility of the Corporation'' is listed pursuant to the rules of NYSE Arca Equities, then NYSE Arca Equities shall: \5\ --------------------------------------------------------------------------- \5\ Rule 5.1(c). ---------------------------------------------------------------------------File monthly reports with the Securities and Exchange Commission (``Commission'') regarding its monitoring of the issuer's compliance with listing standards and trading in the security; have an independent accounting firm conduct an annual review of compliance with listing standards and provide a copy of the review to the Commission; and notify any non-compliant issuer and provide the Commission with information regarding the non-compliance and plan of remediation. Rule 497 sets forth similar reporting requirements regarding securities issued by the Exchange's ultimate parent, Intercontinental Exchange, Inc. (``ICE''), and its affiliates. However, Rule 497 goes further in its requirements than Rule 5.1(c) in several ways. First, in its first sentence, Rule 5.1(c) states that securities ``of an affiliate of the Corporation or any entity that operates and/or owns a trading system or facility of the Corporation'' \6\ are subject to its requirements. However, Rule 5.1(c) does not define what constitutes an ``affiliate of the Corporation.'' By contrast, Rule 497 provides the relevant criteria in its definition of ``ICE Affiliate'': --------------------------------------------------------------------------- \6\ Id. ``ICE Affiliate'' means ICE and any entity that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with ICE, where ``control'' means that one entity possesses, directly or indirectly, voting control of the other entity either through ownership of capital stock or other equity securities or through majority representation on the board of directors or other management body of such entity.\7\ --------------------------------------------------------------------------- \7\ NYSE Rule 497(a)(1) and NYSE MKT Rule 497--Equities(a)(1). ICE is the Exchange's ultimate parent. Unlike Rule 5.1(c), under Rule 497 an entity that operates and/or owns a trading system or facility of the relevant exchange would not be an ICE Affiliate unless it meets the definition's control requirements. A second, substantive difference between the rules is that, unlike Rule 5.1(c), Rule 497 applies not just to securities issued by ICE Affiliates, but also to any listed option on such securities, as set forth in the definition of ``Affiliate Security.'' \8\ Also unlike Rule 5.1(c), Rule 497 has pre-listing requirements that must be met before any Affiliate Security can be listed, including pre-listing approval by the relevant Regulatory Oversight Committee (each, a ``ROC'') of the board of directors.\9\ Finally, Rule 497 requires quarterly, not monthly reports, and both the quarterly and annual reports must be provided to the relevant ROC.\10\ --------------------------------------------------------------------------- \8\ NYSE Rule 497(a)(2) and NYSE MKT Rule 497--Equities(a)(2). \9\ NYSE Rule 497(b) and NYSE MKT Rule 497--Equities(b). \10\ NYSE Rule 497(c)(1)-(2) and NYSE MKT Rule 497-- Equities(c)(1)-(2). --------------------------------------------------------------------------- The Exchange proposes to include the definitions of ``ICE Affiliate'' and ``Affiliate Security'' in revised Rule 5.1(c), adding them as a new sub-paragraph (a), together with a definition of ``NYSE Arca Equities, Inc.'' stating that it is a wholly owned subsidiary of ICE. A new sub-paragraph (b) would incorporate the Rule 497 pre-listing requirements. The existing reporting requirements would be included as sub-paragraphs (c)(1)-(c)(3), the text of which would be revised consistent with Rule 497. As a result of such changes, under the proposed Rule 5.1(c), prior to listing any security issued by an ICE Affiliate or a new class of options on a security issued by an ICE Affiliate, Exchange regulatory staff would be required to make a finding that the security or option class satisfied the Exchange's rules for listing, and the Exchange's ROC would be required to approve such finding. Throughout the continued listing and trading of the Affiliate Security on the Exchange, NYSE Arca Equities would prepare quarterly reports and have annual reviews conducted by an independent accounting firm, providing copies of both reports to the Commission and the Exchange's ROC. Finally, if an Affiliate Security were not in compliance with listing standards, Exchange regulatory staff would notify the issuer, request a plan of compliance, and provide the Commission with information regarding the non-compliance and plan of compliance. Rule 497 requires that the quarterly report describe the monitoring of the Affiliate Security's compliance with applicable listing standards, including the Affiliate Security's compliance with both the minimum share price requirement and the quantitative listing requirements. Because NYSE Arca Equities requirements differ from those of NYSE and NYSE MKT, proposed Rule 5.1(c)(1) would include ``bid price requirement'' in place of ``minimum share price requirement'' \11\ and ``quantitative and qualitative maintenance requirements'' in place of ``quantitative listing requirements.'' \12\ Proposed Rule 5.1(c) would also differ from Rule 497 in that it would refer to the Corporation as well as the Exchange. --------------------------------------------------------------------------- \11\ See NYSE Arca Equities Rule 5.5(b)(4) (Common Stock--Select Market Companies, Equity Securities and Similar Issues) (maintenance requirement of a share bid price of at least $3) and NYSE Arca Equities Rule 5.5(h)(4) (Common Stock--Development Stage Companies) (maintenance requirement of a share bid price of at least $1). \12\ The NYSE Arca Equities rules regarding maintenance requirements provide that the Exchange may consider qualitative factors in determining whether maintenance requirements have been met. See NYSE Arca Equities Rule 5.5(b).02; NYSE Arca Equities NYSE Arca Equities Rule 5.5(g)(1)(C) (Unit Investment Trusts (``UITs'')); Rule 5.5(g)(2)(a) (Investment Company Units); NYSE Arca Equities Rule 5.5(h).02 and NYSE Arca Equities Rule 5.5(l) (Other Reasons for Suspending or Delisting). --------------------------------------------------------------------------- Finally, the Exchange notes that the proposed Rule 5.1(c) would be consistent with Bats BZX Exchange, Inc. (``BZX'') Rule 14.3 regarding requirements for the listing of securities listed by BZX or any of its affiliates.\13\ --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release No. 77639 (April 18, 2016), 81 FR 23768 (April 22, 2016) (SR-BatsBZX-2016-08). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Exchange Act \14\ in general, and Section 6(b)(5) \15\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and [[Page 86035]] equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to, and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b). \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Specifically, the Exchange believes that the proposed rule change would remove impediments to, and perfect the mechanism of a free and open market and a national market system and, in general, protect investors and the public interest by requiring heightened oversight of the listing and trading on the Exchange of Affiliate Securities and related reporting to the Commission and the ROC. The proposed changes would help protect against concerns that the Exchange will not effectively enforce its rules with respect to the listing and trading of such securities. The proposed defined terms would add clarity regarding what entities would be considered to be an affiliate and what securities fall within the scope of the rule. Expanding Rule 5.1(c) to incorporate Exchange-listed options on any security issued by an ICE Affiliate and require pre-listing requirements would strengthen the rule's requirements. In addition, the proposed changes would enhance reporting requirements by requiring NYSE Arca Equities to provide copies of both the annual and quarterly reports to the Commission and the Exchange's ROC. For these reasons, the Exchange believes that the proposed amendments to Rule 5.1(c) would continue to eliminate any perception of a potential conflict of interest if an ICE Affiliate seeks to list a security on the Exchange. The proposed changes will provide greater harmonization between NYSE Arca Equities, NYSE and NYSE MKT rules of similar purpose, resulting in more comparable and consistent information being provided to the Commission and ROCs. As such, the proposed rule change would remove impediments to and perfect the mechanism of a free and open market and a national market system. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act. The proposed rule change is not intended to address competitive issues but rather provide market participants with additional specificity and transparency regarding the Exchange's controls that are in place to address the potential conflicts of interest that may arise in the listing of Affiliate Securities on the Exchange. 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 \16\ and Rule 19b-4(f)(6) thereunder.\17\ --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(3)(A). \17\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with 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 of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \18\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \19\ 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 notes that the proposed rule change would amend Rule 5.1(c) to be substantially similar to Rule 497 of its affiliates NYSE and NYSE MKT, which would result in enhancing the Rule 5.1(c) requirements. The Exchange believes that the proposed rule change would provide market participants with additional specificity and transparency regarding the Exchange's controls that are in place to address the potential conflicts of interest that may arise in the listing of Affiliate Securities on the Exchange. The Commission believes that waiver of the operative delay is consistent with the protection of investors and the public interest because it will allow the Exchange to implement the proposed changes to Rule 5.1(c) without delay. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\20\ --------------------------------------------------------------------------- \18\ 17 CFR 240.19b-4(f)(6). \19\ 17 CFR 240.19b-4(f)(6)(iii). \20\ 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-2016-147 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-2016-147. 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 86036]] 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-2016-147, and should be submitted on or before December 20, 2016. --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-28635 Filed 11-28-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Notices 86033
Exchange believes that it is necessary to • Send an email to rule-comments@ SECURITIES AND EXCHANGE
have the ability to systematically sec.gov. Please include File Number SR– COMMISSION
enforce the requirements of Phlx Rule Phlx–2016–116 on the subject line.
1080(l)(ii) with respect to Directed [Release No. 34–79376; File No. SR–
Complex Orders to assure that the Paper Comments
NYSEARCA–2016–147]
Exchange’s Directed Complex Order • Send paper comments in triplicate
rules operate as intended. Accordingly, to Secretary, Securities and Exchange Self-Regulatory Organizations; NYSE
the Exchange requests a waiver of the Arca, Inc.; Notice of Filing and
Commission, 100 F Street NE.,
30-day operative delay to allow the Immediate Effectiveness of Proposed
Washington, DC 20549–1090.
Exchange to discontinue the Rule Change Amending NYSE Arca
participation allocation for Directed All submissions should refer to File Equities Rule 5.1(c) Regarding the
Complex Orders prior to December 1, Number SR–Phlx–2016–116. This file Requirements for the Listing of
2016.17 The Commission believes that number should be included on the Securities That Are Issued by the
waiving the 30-day operative delay is subject line if email is used. To help the Exchange or Any of Its Affiliates
consistent with the protection of Commission process and review your
investors and the public interest comments more efficiently, please use November 22, 2016.
because the proposed rule change will only one method. The Commission will Pursuant to Section 19(b)(1) 1 of the
allow the Exchange to discontinue the post all comments on the Commission’s
participation allocation for Directed Securities Exchange Act of 1934 (the
Internet Web site (http://www.sec.gov/ ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Complex Orders until the Exchange is rules/sro.shtml). Copies of the
able to systematically enforce the notice is hereby given that, on
submission, all subsequent November 10, 2016, NYSE Arca, Inc.
requirements of Phlx Rule 1080(l)(ii)
amendments, all written statements (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with respect to Directed Complex
with respect to the proposed rule with the Securities and Exchange
Orders.18 Accordingly, the Commission
change that are filed with the Commission (the ‘‘Commission’’) the
designates the proposed rule change to
be operative upon filing.19 Commission, and all written proposed rule change as described in
communications relating to the Items I and II below, which Items have
At any time within 60 days of the proposed rule change between the been prepared by the self-regulatory
filing of the proposed rule change, the Commission and any person, other than organization. The Commission is
Commission summarily may those that may be withheld from the
temporarily suspend such rule change if publishing this notice to solicit
public in accordance with the comments on the proposed rule change
it appears to the Commission that such
provisions of 5 U.S.C. 552, will be from interested persons.
action is necessary or appropriate in the
available for Web site viewing and
public interest, for the protection of I. Self-Regulatory Organization’s
investors, or otherwise in furtherance of printing in the Commission’s Public
Reference Room, 100 F Street NE., Statement of the Terms of Substance of
the purposes of the Act. If the the Proposed Rule Change
Commission takes such action, the Washington, DC 20549, on official
Commission shall institute proceedings business days between the hours of The Exchange proposes to amend
to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of the NYSE Arca Equities Rule 5.1(c)
should be approved or disapproved. filing also will be available for regarding the requirements for the
inspection and copying at the principal listing of securities that are issued by
IV. Solicitation of Comments office of the Exchange. All comments the Exchange or any of its affiliates. The
Interested persons are invited to received will be posted without change; proposed rule change is available on the
submit written data, views and the Commission does not edit personal Exchange’s Web site at www.nyse.com,
arguments concerning the foregoing, identifying information from at the principal office of the Exchange,
including whether the proposed rule submissions. You should submit only and at the Commission’s Public
change is consistent with the Act. information that you wish to make Reference Room.
Comments may be submitted by any of available publicly. All submissions
the following methods: should refer to File Number SR–Phlx– II. Self-Regulatory Organization’s
2016–116 and should be submitted on Statement of the Purpose of, and
Electronic Comments or before December 20, 2016. Statutory Basis for, the Proposed Rule
Change
• Use the Commission’s Internet For the Commission, by the Division of
comment form (http://www.sec.gov/ Trading and Markets, pursuant to delegated In its filing with the Commission, the
rules/sro.shtml); or authority.20 self-regulatory organization included
Robert W. Errett, statements concerning the purpose of,
17 As noted above, the Exchange may seek to offer
Deputy Secretary. and basis for, the proposed rule change
a participation allocation for Directed Complex and discussed any comments it received
Orders after the Exchange has the ability to [FR Doc. 2016–28632 Filed 11–28–16; 8:45 am]
systematically enforce the requirements of Phlx BILLING CODE 8011–01–P
on the proposed rule change. The text
Rule 1080(l)(ii) with respect to Directed Complex of those statements may be examined at
Orders. the places specified in Item IV below.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
18 The Commission also notes that the Exchange
The Exchange has prepared summaries,
stated that if it intends to offer a participation
allocation for Directed Complex Orders in the set forth in sections A, B, and C below,
future it will file a proposed rule change with the of the most significant parts of such
Commission. statements.
19 For purposes only of waiving the 30-day
operative delay, the Commission has also
1 15 U.S.C. 78s(b)(1).
considered the proposed rule’s impact on
2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 20 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
VerDate Sep<11>2014 17:48 Nov 28, 2016 Jkt 241001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 E:\FR\FM\29NON1.SGM 29NON1](https://thefederalregister.org/doc/81_FR_86262/page/1.svg)
![86036 Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Notices
available for Web site viewing and testing and certification feeds; and execution services; connectivity to
printing in the Commission’s Public connectivity to DTCC; and other data feeds and to testing and
Reference Room, 100 F Street NE., services. The proposed rule change was certification feeds; connectivity to
Washington, DC 20549, on official published for comment in the Federal clearing; and other services.9
business days between the hours of Register on August 26, 2016.3 The
10:00 a.m. and 3:00 p.m. Copies of the Commission received no comments in Background and Access to Exchange
filing also will be available for response to the proposed rule change.4 Systems
inspection and copying at the principal On October 4, 2016, the Commission As discussed more fully in the Notice,
office of the Exchange. All comments extended the time period within which a User can purchase access to the
received will be posted without change; to approve the proposed rule change, Liquidity Center Network (‘‘LCN’’) and/
the Commission does not edit personal disapprove the proposed rule change, or
or internet protocol (‘‘IP’’) network in
identifying information from institute proceedings to determine
submissions. You should submit only the data center through the purchase of
whether to approve or disapprove the
information that you wish to make a 1, 10, or 40 Gb LCN circuit, a 10 Gb
proposed rule change to November 24,
available publicly. All submissions LX Circuit, bundled network access,
2016.5
should refer to File Number SR– On November 2, 2016, the Exchange Partial Cabinet Solution bundle, or 1, 10
NYSEARCA–2016–147, and should be filed Amendment No. 1 to the proposed or 40 Gb IP network access.10 The
submitted on or before December 20, rule change.6 The Commission is purchase of any of the LCN or IP
2016. publishing this order to solicit network circuit options gives a User
comments on Amendment No. 1 from access 11 to the Exchange’s trading and
For the Commission, by the Division of
Trading and Markets, pursuant to delegated interested persons and to institute execution systems, connectivity to the
authority.21 proceedings pursuant to Exchange Act Exchange’s certification and testing
Robert W. Errett, Section 19(b)(2)(B) to determine feeds,12 and the ability to connect to any
Deputy Secretary. whether to approve or disapprove the NYSE Data Product.13 More specifically,
[FR Doc. 2016–28635 Filed 11–28–16; 8:45 am] proposed rule change, as modified by access to the Exchange’s trading and
Amendment No. 1.7 Institution of execution system provides a User with
BILLING CODE 8011–01–P
proceedings does not indicate that the access to the Exchange’s ‘‘customer
Commission has reached any gateways that provide for order entry,
SECURITIES AND EXCHANGE conclusions with respect to the order receipt (i.e. confirmation that an
COMMISSION proposed rule change, nor does it mean order has been received), receipt of drop
that the Commission will ultimately copies and trade reporting (i.e. whether
[Release No. 34–79379; File No. SR– a trade is executed or cancelled), as well
NYSEArca–2016–89]
disapprove the proposed rule change.
Rather, as discussed below, the as for sending information to shared
Self-Regulatory Organizations; NYSE Commission seeks additional input on data services for clearing and
Arca, Inc.; Order Instituting the proposed rule change, as modified settlement.’’ 14 The Exchange seeks to
Proceedings To Determine Whether To by Amendment No. 1, and on the issues add clarifying language in its proposed
Approve or Disapprove a Proposed presented by the proposal.
Change, as Modified by Amendment II. Description of the Proposed Rule from the Exchange. See Securities Exchange Act
No. 1, Amending the Co-location Release No. 76008 (September 29, 2015), 80 FR
Change, as Modified by Amendment 60190 (October 5, 2015) (SR–NYSE–2015–40). As
Services Offered by the Exchange To No. 1 specified in the Fee Schedules, a User that incurs
Add Certain Access and Connectivity co-location fees for a particular co-location service
Fees The proposed rule change seeks to pursuant thereto would not be subject to co-location
amend the co-location services offered fees for the same co-location service charged by the
November 22, 2016. by the Exchange to (1) provide Exchange’s affiliates NYSE MKT LLC (‘‘NYSE
additional information regarding the MKT’’) and NYSE Arca, Inc. (‘‘NYSE Arca’’ and,
I. Introduction together with NYSE MKT, the ‘‘Affiliate SROs’’).
access to trading and execution services See Securities Exchange Act Release No. 70206
On August 16, 2016, NYSE Arca, Inc. and connectivity to data provided to (August 15, 2013), 78 FR 51765 (August 21, 2013)
(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed Users with local area networks available (SR–NYSE–2013–59).
with the Securities and Exchange in the data center; and (2) establish fees 9 See Notice, supra note 3, 81 FR at 59004–59005.
Commission (‘‘Commission’’), pursuant relating to a User’s 8 access to trading
10 See id. at 59005.
11 The purchase of access is subject to receiving
to Section 19(b)(1) of the Securities
authorization from the NYSE, NYSE MKT or NYSE
Exchange Act of 1934 (‘‘Act’’) 1 and Rule 3 See Securities Exchange Act Release No. 34–
Arca for the Included Data Products, as applicable.
19b–4 thereunder,2 a proposed rule 78628 (August 22, 2016), 81 FR 59004 (‘‘Notice’’). See id. at 59005 n.10.
4 The Commission notes that it did receive one
change (1) to provide additional 12 Certification feeds are used to certify that a
comment letter on a related filing, NYSE–2016–45,
information regarding access to various which is equally relevant to this filing. See letter
User conforms to any relevant technical
trading and execution services; requirements for receipt of data or access to
to Brent J. Fields, Secretary, Commission, from John Exchange systems. Testing feeds, which do not
connectivity to market data feeds and Ramsay, Chief Market Policy Officer, Investors carry live production data, provide Users with an
testing and certification feeds; Exchange LLC (IEX), dated September 9, 2016 (‘‘IEX environment to conduct tests with the non-live
Letter’’).
connectivity to Third Party Systems; data, including testing for upcoming Exchange
On September 23, 2016, the NYSE submitted a releases and product enhancements or the User’s
and connectivity to DTCC provided to response (‘‘Response Letter’’). own software development. See id. at 59005. These
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Users using data center local area 5 See Securities Exchange Act Release No. 34–
feeds are only available over the IP network,
networks; and (2) to establish fees 78967 (September 28, 2016), 81 FR 68480. however a User without an IP network connection
relating to a User’s access to various 6 Amendment No. 1 is discussed further infra. may obtain an IP network circuit for purposes of
trading and execution services; Amendment No. 1 is available on the Commission’s testing and certification for free for three months.
Web site at https://www.sec.gov/comments/sr- See id. at 59005 n.12.
connectivity to market data feeds and nysearca-2016-89/nysearca201689-1.pdf. 13 See id. at 59005.
7 15 U.S.C. 78s(b)(2)(B). 14 See id. at 59006.The Exchange represents that
21 17 CFR 200.30–3(a)(12). 8 For purposes of the Exchange’s co-location connectivity to the Exchange systems can be
1 15 U.S.C. 78s(b)(1). services, a ‘‘User’’ means any market participant obtained without the purchase of access to the LCN
2 17 CFR 240.19b–4. that requests to receive co-location services directly or IP network. See id.
VerDate Sep<11>2014 17:48 Nov 28, 2016 Jkt 241001 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 E:\FR\FM\29NON1.SGM 29NON1](https://thefederalregister.org/doc/81_FR_86262/page/4.svg)
Document Created: 2016-11-29 00:33:35
Document Modified: 2016-11-29 00:33:35
| 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 86033 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR