81 FR 86355 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.16
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 230 (November 30, 2016)
Federal Register Volume 81, Issue 230 (November 30, 2016)
| Page Range | 86355-86357 | |
| FR Document | 2016-28777 |
[Federal Register Volume 81, Number 230 (Wednesday, November 30, 2016)] [Notices] [Pages 86355-86357] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28777] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79387; File No. SR-NYSEArca-2016-150] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.16 November 23, 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 15, 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 7.16 (Short Sales) to eliminate the option for a short sale order to include an instruction that it be rejected or cancelled if it is required to be re-priced. 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 86356]] 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 7.16 (Short Sales) (``Rule 7.16'') to eliminate the option for a short sale order to include an instruction that it be rejected or cancelled if it is required to be re-priced. Rule 7.16(f)(5)(B) currently provides that an ETP Holder may mark individual short sale orders to be rejected on arrival, or cancelled if resting, if required to be adjusted to a Permitted Price while a symbol is subject to the Short Sale Price Test.\4\ The Exchange adopted the current functionality in its rules in 2015 and implemented it when the Exchange migrated to the Pillar technology trading platform in 2016.\5\ Prior to operating on the Pillar platform, this option was available only to arriving orders.\6\ --------------------------------------------------------------------------- \4\ The term ``Permitted Price'' is defined in Rule 7.16(f)(5)(A) and the term ``Short Sale Price Test'' is defined in Rule 7.16(f)(2). \5\ See Securities Exchange Act Release Nos. 76198 (October 20, 2015), 80 FR 65274 (October 26, 2015) (Approval Order) and 75467 (July 16, 2015), 80 FR 43515 (July 22, 2015) (Notice) (SR-NYSEArca- 2016-58). \6\ See Notice supra note 5 at 43521. --------------------------------------------------------------------------- The Exchange proposes to simplify how short sale orders are processed by eliminating the current optional functionality described in Rule 7.16(f)(5)(B). The Exchange does not believe that removing this optional functionality will significantly affect investors or the public because it is a little-used feature.\7\ In addition, to reflect the deletion of the text currently set forth in Rule 7.16(f)(5)(B), the Exchange proposes a non-substantive change to renumber current Rules 7.16(f)(5)(C)-(J) as proposed Rules 7.16(f)(5)(B)-(I). --------------------------------------------------------------------------- \7\ For the three-month period of August 1, 2016 through October 31, 2016, only 0.16% of all sell short orders included the optional instruction. --------------------------------------------------------------------------- Because of the technology changes associated with this proposed rule change, the Exchange will announce by Trader Update the implementation date. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\8\ in general, and furthers the objectives of Section 6(b)(5),\9\ in particular, because 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, 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 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 by simplifying the operation of short sale orders on the Exchange. The Exchange proposes to eliminate an optional feature that provides that if so instructed, during a Short Sale Price Test, an individual short sale order would reject (on arrival) or cancel (if resting) if such order were required to be adjusted to a Permitted Price. Because this is infrequently-used optional functionality, 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 by simplifying the Exchange's operations and reducing complexity. The Exchange further believes that renumbering the remaining paragraphs of Rule 7.16(f)(5) would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would promote transparency in Exchange rules by conforming the rule numbering of the remaining rule text of Rule 7.16(f)(5). 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 Act. The Exchange believes that the proposed rule change would not impose any burden on competition because it is not designed to address any competitive issues. Rather, the proposed rule change is designed to simplify the Exchange's offerings and reduce complexity by eliminating an infrequently-used optional feature. 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 \10\ and Rule 19b-4(f)(6) thereunder.\11\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 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 \12\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \13\ 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. According to the Exchange, the proposal would eliminate an infrequently-used optional functionality and would have little impact on ETP Holders. In addition, the Exchange anticipates that the technology supporting the change will be available in less than 30 days after filing. 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.\14\ --------------------------------------------------------------------------- \12\ 17 CFR 240.19b-4(f)(6). \13\ 17 CFR 240.19b-4(f)(6)(iii). \14\ 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 [[Page 86357]] 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEArca-2016-150 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-2016-150. 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-2016-150 and should be submitted on or before December 21, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-28777 Filed 11-29-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices 86355
Implementation Timeframe • Send an email to rule-comments@ SECURITIES AND EXCHANGE
sec.gov. Please include File Number SR– COMMISSION
Pending Commission approval,
NSCC–2016–803 on the subject line.
Members would be advised of the
implementation date of this proposal Paper Comments [Release No. 34–79387; File No. SR–
through issuance of an NSCC Important NYSEArca–2016–150]
Notice. NSCC expects to run the • Send paper comments in triplicate
proposed changes in a test environment to Secretary, Securities and Exchange Self-Regulatory Organizations; NYSE
for a parallel period of at least three Commission, 100 F Street NE., Arca, Inc.; Notice of Filing and
months prior to implementation. Details Washington, DC 20549. Immediate Effectiveness of Proposed
and dates regarding such test period Rule Change Amending NYSE Arca
All submissions should refer to File Equities Rule 7.16
would be communicated to Members
Number SR–NSCC–2016–803. This file
through an NSCC Important Notice.
number should be included on the November 23, 2016.
III. Date of Effectiveness of the Advance subject line if email is used. To help the Pursuant to Section 19(b)(1) 1 of the
Notice, and Timing for Commission Commission process and review your Securities Exchange Act of 1934 (the
Action comments more efficiently, please use ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
The proposed change may be only one method. The Commission will notice is hereby given that, on
implemented if the Commission does post all comments on the Commission’s November 15, 2016, NYSE Arca, Inc.
not object to the proposed change Internet Web site (http://www.sec.gov/ (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
within 60 days of the later of (i) the date rules/sro.shtml). Copies of the with the Securities and Exchange
that the proposed change was filed with submission, all subsequent Commission (the ‘‘Commission’’) the
the Commission or (ii) the date that any amendments, all written statements proposed rule change as described in
additional information requested by the with respect to the Advance Notice that Items I and II below, which Items have
Commission is received. The clearing are filed with the Commission, and all been prepared by the self-regulatory
agency shall not implement the written communications relating to the organization. The Commission is
proposed change if the Commission has Advance Notice between the publishing this notice to solicit
any objection to the proposed change. Commission and any person, other than comments on the proposed rule change
The Commission may extend the those that may be withheld from the from interested persons.
period for review by an additional 60 public in accordance with the
days if the proposed change raises novel provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s
or complex issues, subject to the available for Web site viewing and Statement of the Terms of Substance of
Commission providing the clearing printing in the Commission’s Public the Proposed Rule Change
agency with prompt written notice of Reference Room, 100 F Street NE.,
the extension. A proposed change may The Exchange proposes to amend
Washington, DC 20549 on official
be implemented in less than 60 days NYSE Arca Equities Rule 7.16 (Short
business days between the hours of
from the date the advance notice is Sales) to eliminate the option for a short
10:00 a.m. and 3:00 p.m. Copies of the
filed, or the date further information sale order to include an instruction that
filing also will be available for
requested by the Commission is it be rejected or cancelled if it is
inspection and copying at the principal
received, if the Commission notifies the required to be re-priced. The proposed
office of NSCC and on DTCC’s Web site
clearing agency in writing that it does rule change is available on the
(http://dtcc.com/legal/sec-rule-
not object to the proposed change and Exchange’s Web site at www.nyse.com,
filings.aspx). All comments received
authorizes the clearing agency to at the principal office of the Exchange,
will be posted without change; the
implement the proposed change on an and at the Commission’s Public
Commission does not edit personal
earlier date, subject to any conditions Reference Room.
imposed by the Commission. identifying information from
submissions. You should submit only II. Self-Regulatory Organization’s
The clearing agency shall post notice
information that you wish to make Statement of the Purpose of, and
on its Web site of proposed changes that
available publicly. All submissions Statutory Basis for, the Proposed Rule
are implemented.
should refer to File Number SR–NSCC– Change
The proposal shall not take effect
2016–803 and should be submitted on
until all regulatory actions required In its filing with the Commission, the
or before December 15, 2016.
with respect to the proposal are self-regulatory organization included
completed. By the Commission. statements concerning the purpose of,
Brent J. Fields, and basis for, the proposed rule change
IV. Solicitation of Comments
Secretary. and discussed any comments it received
Interested persons are invited to [FR Doc. 2016–28771 Filed 11–29–16; 8:45 am] on the proposed rule change. The text
submit written data, views and of those statements may be examined at
BILLING CODE 8011–01–P
arguments concerning the foregoing, the places specified in Item IV below.
including whether the Advance Notice The Exchange has prepared summaries,
is consistent with the Clearing
set forth in sections A, B, and C below,
Supervision Act. Comments may be
sradovich on DSK3GMQ082PROD with NOTICES
of the most significant parts of such
submitted by any of the following
methods: statements.
Electronic Comments
• Use the Commission’s Internet 1 15 U.S.C. 78s(b)(1).
comment form (http://www.sec.gov/ 2 15 U.S.C. 78a.
rules/sro.shtml); or 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices 86357
change should be approved or For the Commission, by the Division of A. Self-Regulatory Organization’s
disapproved. Trading and Markets, pursuant to delegated Statement of the Purpose of, and the
authority.15 Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Robert W. Errett, Change
Deputy Secretary.
Interested persons are invited to 1. Purpose
submit written data, views, and [FR Doc. 2016–28777 Filed 11–29–16; 8:45 am]
The Exchange proposes to amend
arguments concerning the foregoing, BILLING CODE 8011–01–P
Rule 7.31 (Orders and Modifiers).
including whether the proposed rule Specifically, Rule 7.31(d)(1)(C) provides
change is consistent with the Act. that a Reserve Order must be designated
Comments may be submitted by any of SECURITIES AND EXCHANGE
COMMISSION Day and may be combined with an Arca
the following methods: Only Order, a Primary Pegged Order or
Electronic Comments a Q Order as each such order is a
[Release No. 34–79392; File No. SR–
NYSEArca–2016–151] displayed order. However, given the
• Use the Commission’s Internet lack of participation of Reserve Orders
comment form (http://www.sec.gov/ Self-Regulatory Organizations; NYSE that are combined with Q Orders, the
rules/sro.shtml); or Arca, Inc.; Notice of Filing and Exchange proposes to delete from its
• Send an email to rule-comments@ Immediate Effectiveness of Proposed rules that a Reserve Order may be
sec.gov. Please include File Number SR– Rule Change Amending Rule 7.31 combined with a Q Order.4 The
NYSEArca–2016–150 on the subject Exchange believes the proposed change
November 23, 2016. will streamline the operation of Reserve
line.
Pursuant to Section 19(b)(1) 1 of the Orders on the Exchange by limiting the
Paper Comments Securities Exchange Act of 1934 (the functionality to features that are actually
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 utilized by market participants.
• Send paper comments in triplicate notice is hereby given that, on
to Brent J. Fields, Secretary, Securities 2. Statutory Basis
November 15, 2016, NYSE Arca, Inc.
and Exchange Commission, 100 F Street (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed The proposed rule change is
NE., Washington, DC 20549–1090. with the Securities and Exchange consistent with Section 6(b) of the Act,5
Commission (the ‘‘Commission’’) the in general, and furthers the objectives of
All submissions should refer to File
proposed rule change as described in Section 6(b)(5),6 in particular, because it
Number SR–NYSEArca–2016–150. This
Items I and II below, which Items have is designed to prevent fraudulent and
file number should be included on the manipulative acts and practices, to
subject line if email is used. To help the been prepared by the self-regulatory
organization. The Commission is promote just and equitable principles of
Commission process and review your trade, to foster cooperation and
comments more efficiently, please use publishing this notice to solicit
comments on the proposed rule change coordination with persons engaged in
only one method. The Commission will facilitating transactions in securities, to
post all comments on the Commission’s from interested persons.
remove impediments to, and perfect the
Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s mechanism of, a free and open market
rules/sro.shtml). Copies of the Statement of the Terms of Substance of and a national market system and, in
submission, all subsequent the Proposed Rule Change general, to protect investors and the
amendments, all written statements public interest.
The Exchange proposes to amend
with respect to the proposed rule Specifically, the Exchange believes
Rule 7.31 (Orders and Modifiers). The
change that are filed with the that removing the ability for market
proposed rule change is available on the
Commission, and all written participants to combine Reserve Orders
Exchange’s Web site at www.nyse.com,
communications relating to the with Q Orders would remove
at the principal office of the Exchange,
proposed rule change between the impediments to and perfect the
and at the Commission’s Public
Commission and any person, other than mechanism of a free and open market
Reference Room.
those that may be withheld from the and a national market system because
public in accordance with the II. Self-Regulatory Organization’s the proposed change would eliminate
provisions of 5 U.S.C. 552, will be Statement of the Purpose of, and functionality not used by market
available for Web site viewing and Statutory Basis for, the Proposed Rule participants and thereby, streamline the
printing in the Commission’s Public Change operation of Reserve Orders on the
Reference Room, 100 F Street NE., In its filing with the Commission, the Exchange.
Washington, DC 20549 on official self-regulatory organization included
business days between the hours of B. Self-Regulatory Organization’s
statements concerning the purpose of, Statement on Burden on Competition
10:00 a.m. and 3:00 p.m. Copies of the and basis for, the proposed rule change
filing also will be available for and discussed any comments it received The Exchange does not believe that
inspection and copying at the principal on the proposed rule change. The text the proposed rule change will impose
office of the Exchange. All comments of those statements may be examined at any burden on competition that is not
received will be posted without change; the places specified in Item IV below. necessary or appropriate in furtherance
the Commission does not edit personal The Exchange has prepared summaries, of the purposes of the Act. The
identifying information from proposed change is not designed to
sradovich on DSK3GMQ082PROD with NOTICES
set forth in sections A, B, and C below,
submissions. You should submit only of the most significant parts of such address any competitive issue but rather
information that you wish to make statements.
available publicly. All submissions 4 The Exchange has not received any Reserve
should refer to File Number SR– Orders combined with a Q Order since the
15 17 CFR 200.30–3(a)(12). Exchange introduced the Pillar trading platform on
NYSEArca–2016–150 and should be 1 15 U.S.C. 78s(b)(1). February 22, 2016.
submitted on or before December 21, 2 15 U.S.C. 78a. 5 15 U.S.C. 78f(b).
2016. 3 17 CFR 240.19b–4. 6 15 U.S.C. 78f(b)(5).
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Document Created: 2016-11-30 02:18:02
Document Modified: 2016-11-30 02:18:02
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 86355 |
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