81 FR 86357 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 7.31

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 230 (November 30, 2016)

Page Range		86357-86358
FR Document		2016-28781
Federal Register, Volume 81 Issue 230 (Wednesday, November 30, 2016)
[Federal Register Volume 81, Number 230 (Wednesday, November 30, 2016)]
[Notices]
[Pages 86357-86358]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28781]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79392; File No. SR-NYSEArca-2016-151]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Rule 7.31

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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 7.31 (Orders and Modifiers). 
The proposed rule change is available on the Exchange's Web site at 
www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to amend Rule 7.31 (Orders and Modifiers). 
Specifically, Rule 7.31(d)(1)(C) provides that a Reserve Order must be 
designated Day and may be combined with an Arca Only Order, a Primary 
Pegged Order or a Q Order as each such order is a displayed order. 
However, given the lack of participation of Reserve Orders that are 
combined with Q Orders, the Exchange proposes to delete from its rules 
that a Reserve Order may be combined with a Q Order.\4\ The Exchange 
believes the proposed change will streamline the operation of Reserve 
Orders on the Exchange by limiting the functionality to features that 
are actually utilized by market participants.
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    \4\ The Exchange has not received any Reserve Orders combined 
with a Q Order since the Exchange introduced the Pillar trading 
platform on February 22, 2016.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\5\ in general, and furthers the objectives of Section 6(b)(5),\6\ 
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.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    Specifically, the Exchange believes that removing the ability for 
market participants to combine Reserve Orders with Q Orders would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system because the proposed change would 
eliminate functionality not used by market participants and thereby, 
streamline the operation of Reserve Orders on the Exchange.

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 proposed change is not 
designed to address any competitive issue but rather

[[Page 86358]]

to make amendments to Exchange rules to streamline the operation of 
Reserve Orders on the Exchange by removing little-used functionality 
that allowed Reserve Orders to be combined with Q Orders.

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 \7\ and Rule 19b-4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \9\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \10\ 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, this proposal would eliminate functionality not used by 
market participants, and 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.\11\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ 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).
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    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-2016-151 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-2016-151. 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-2016-151 and should 
be submitted on or before December 21, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-28781 Filed 11-29-16; 8:45 am]
 BILLING CODE 8011-01-P
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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86358 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices

to make amendments to Exchange rules At any time within 60 days of the the Commission does not edit personal
to streamline the operation of Reserve filing of the proposed rule change, the identifying information from
Orders on the Exchange by removing Commission summarily may submissions. You should submit only
little-used functionality that allowed temporarily suspend such rule change if information that you wish to make
Reserve Orders to be combined with Q it appears to the Commission that such available publicly. All submissions
Orders. action is necessary or appropriate in the should refer to File Number SR–
public interest, for the protection of NYSEArca–2016–151 and should be
C. Self-Regulatory Organization’s
investors, or otherwise in furtherance of submitted on or before December 21,
Statement on Comments on the
the purposes of the Act. If the 2016.
Proposed Rule Change Received From
Commission takes such action, the For the Commission, by the Division of
Members, Participants, or Others
Commission shall institute proceedings Trading and Markets, pursuant to delegated
No written comments were solicited to determine whether the proposed rule authority.12
or received with respect to the proposed change should be approved or
rule change. disapproved. Robert W. Errett,
III. Date of Effectiveness of the IV. Solicitation of Comments Deputy Secretary.
Proposed Rule Change and Timing for [FR Doc. 2016–28781 Filed 11–29–16; 8:45 am]
Interested persons are invited to
Commission Action BILLING CODE 8011–01–P
submit written data, views, and
Because the proposed rule change arguments concerning the foregoing,
does not (i) significantly affect the including whether the proposed rule
protection of investors or the public SECURITIES AND EXCHANGE
change is consistent with the Act.
interest; (ii) impose any significant COMMISSION
Comments may be submitted by any of
burden on competition; and (iii) become the following methods: [Release No. 34–79385; File No. SR–
operative for 30 days from the date on BatsBZX–2016–77]
which it was filed, or such shorter time Electronic Comments
as the Commission may designate, it has • Use the Commission’s Internet Self-Regulatory Organizations; Bats
become effective pursuant to Section comment form (http://www.sec.gov/ BZX Exchange, Inc.; Notice of Filing
19(b)(3)(A) of the Act 7 and Rule 19b– rules/sro.shtml); or and Immediate Effectiveness of a
4(f)(6) thereunder.8 • Send an email to rule- Proposed Rule Change To Make
A proposed rule change filed comments@sec.gov. Please include File Ministerial and Corrective Changes to
pursuant to Rule 19b–4(f)(6) under the Number SR–NYSEArca–2016–151 on Exchange Rules 11.13, 11.16, 11.22,
Act 9 normally does not become the subject line. and 11.27
operative for 30 days after the date of its
Paper Comments November 23, 2016.
filing. However, Rule 19b–4(f)(6)(iii) 10
permits the Commission to designate a • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
shorter time if such action is consistent to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 (the
with the protection of investors and the and Exchange Commission, 100 F Street ‘‘Act’’),1 and Rule 19b–4 thereunder,2
public interest. The Exchange has asked NE., Washington, DC 20549–1090. notice is hereby given that on November
the Commission to waive the 30-day All submissions should refer to File 16, 2016, Bats BZX Exchange, Inc. (the
operative delay so that the proposal may Number SR–NYSEArca–2016–151. This ‘‘Exchange’’ or ‘‘BZX’’) filed with the
become operative immediately upon file number should be included on the Securities and Exchange Commission
filing. According to the Exchange, this subject line if email is used. To help the (‘‘Commission’’) the proposed rule
proposal would eliminate functionality Commission process and review your change as described in Items I, II, and
not used by market participants, and the comments more efficiently, please use III, below, which Items have been
Exchange anticipates that the only one method. The Commission will prepared by the Exchange. The
technology supporting the change will post all comments on the Commission’s Exchange has designated this proposal
be available in less than 30 days after Internet Web site (http://www.sec.gov/ as a ‘‘non-controversial’’ proposed rule
filing. The Commission believes the rules/sro.shtml). Copies of the change pursuant to Section 19(b)(3)(A)
waiver of the operative delay is submission, all subsequent of the Act 3 and Rule 19b–4(f)(6)(iii)
consistent with the protection of amendments, all written statements thereunder,4 which renders it effective
investors and the public interest. with respect to the proposed rule upon filing with the Commission. The
Therefore, the Commission hereby change that are filed with the Commission is publishing this notice to
waives the operative delay and Commission, and all written solicit comments on the proposed rule
designates the proposal operative upon communications relating to the change from interested persons.
filing.11 proposed rule change between the I. Self-Regulatory Organization’s
Commission and any person, other than Statement of the Terms of Substance of
7 15 U.S.C. 78s(b)(3)(A). those that may be withheld from the the Proposed Rule Change
8 17 CFR 240.19b–4(f)(6). As required under Rule public in accordance with the
19b–4(f)(6)(iii), the Exchange provided the The Exchange filed a proposal to
Commission with written notice of its intent to file provisions of 5 U.S.C. 552, will be
make ministerial and corrective changes
the proposed rule change, along with a brief available for Web site viewing and
description and the text of the proposed rule to Exchange Rules 11.13(b), 11.16(g)(4),
printing in the Commission’s Public
change, at least five business days prior to the date 11.22(f), and 11.27(a)(7)(A)(i)2.
Reference Room, 100 F Street NE.,
sradovich on DSK3GMQ082PROD with NOTICES

of filing of the proposed rule change, or such The text of the proposed rule change
shorter time as designated by the Commission. Washington, DC 20549 on official
is available at the Exchange’s Web site
9 17 CFR 240.19b–4(f)(6). business days between the hours of
10 17 CFR 240.19b–4(f)(6)(iii).
10:00 a.m. and 3:00 p.m. Copies of the 12 17 CFR 200.30–3(a)(12).
11 For purposes only of waiving the 30-day
filing also will be available for 1 15 U.S.C. 78s(b)(1).
operative delay, the Commission has also
considered the proposed rule’s impact on
inspection and copying at the principal 2 17 CFR 240.19b–4.

efficiency, competition, and capital formation. See office of the Exchange. All comments 3 15 U.S.C. 78s(b)(3)(A).

15 U.S.C. 78c(f). received will be posted without change; 4 17 CFR 240.19b–4(f)(6)(iii).

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Document Created: 2016-11-30 02:17:58
Document Modified: 2016-11-30 02:17:58
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 86357