81 FR 86371 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 15 Relating to Pre-Opening Indications
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 230 (November 30, 2016)
Federal Register Volume 81, Issue 230 (November 30, 2016)
| Page Range | 86371-86374 | |
| FR Document | 2016-28780 |
[Federal Register Volume 81, Number 230 (Wednesday, November 30, 2016)] [Notices] [Pages 86371-86374] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28780] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79390; File No. SR-NYSE-2016-78] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 15 Relating to Pre-Opening Indications 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 17, 2016, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') 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 Rule 15 relating to pre-opening indications. 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 15 relating to pre-opening indications. The proposed rule changes would restore the obligation for a DMM to publish a pre-opening indication if a security has not opened by 10:00 a.m. Eastern Time and add a new parameter for when a pre- opening indication should be published for lower-priced securities. Background The Exchange recently amended Exchange rules to consolidate and amend requirements relating to pre-opening indications in Rule 15.\4\ Rule 15(a) provides that a pre-opening indication will include the security and the price range within which the opening price is anticipated to occur and that a pre-opening indication will be published via the securities information processor and proprietary data feeds. Rule 15(b) specifies the conditions for publishing a pre-opening indication, and Rule 15(b)(1) provides that a DMM will publish a pre- opening indication, as described in Rule 15(e), before a security opens if the opening transaction on the Exchange is anticipated to be at a price that represents a change of more than the ``Applicable Price Range'' from a specified ``Reference Price'' before the security opens. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release Nos. 78228 (July 5, 2016), 81 FR 44907 (July 11, 2016) (SR-NYSE-2016-24) (Approval Order) and 77491 (March 31, 2016), 81 FR 20030 (April 6, 2016) (SR- NYSE-2016-24) (``Opening Notice of Filing'') (``Opening Filing''). The Exchange implemented the changes described in the Opening Filing on September 12, 2016. --------------------------------------------------------------------------- Under Rule 15(c), the Reference Price for a security, other than an ADR, is the securities last reported stale price on the Exchange, the security's offering price in the case of an initial public offering (``IPO''), or the security's last reported sale price in the securities market from which the security is being transferred to the Exchange. Rule 15(d)(1) provides that, except under conditions set forth in Rule 15(d)(2), the Applicable Price Range for determining whether to publish a pre-opening indication will be 5%. Rule 15(d)(2) provides that if as of 9:00 a.m. Eastern Time, the E-mini S&P 500 Futures are2% from the prior day's closing price of the E-mini S&P 500 Futures, when reopening trading following a market-wide trading halt under Rule 80B, or if the Exchange [[Page 86372]] determines that it is necessary or appropriate for the maintenance of a fair and orderly market, the Applicable Price Range for determining whether to publish a pre-opening indication will be 10%. Proposed Rule Change The Exchange proposes to amend Rule 15(b)(1) to add another condition for when a DMM would be required to publish a pre-opening indication. As proposed, a DMM would be required to publish a pre- opening indication if a security has not opened by 10:00 a.m. Eastern Time. This requirement was previously set forth in rule text in Rule 123D(b) that was deleted in the Opening Filing.\5\ The Exchange proposes to restore this requirement, as modified. Specifically, the Exchange would not retain the prior rule text that required Executive Floor Governor approval to extend the 30-minute time frame. The Exchange believes that current Rule 15(e)(1), which requires a Floor Governor to supervise and approve the publication of a pre-opening indication, provides for appropriate oversight of the publication of a pre-opening indication, including if such publication would be after 10:00 a.m. --------------------------------------------------------------------------- \5\ See Opening Notice of Filing, supra note 4 at 20031. Before being amended in the Opening Filing, Rule 123D(b) provided: ``If an indication is disseminated after the opening bell, it must be considered a delayed opening. In addition, any stock that is not opened with a trade or a reasonable quotation within 30 minutes after the opening of business must be considered a delayed opening (except for IPOs) and requires Floor Official supervision, as well as an indication. That 30-minute time frame may only be extended by an Executive Floor Governor on a Floor-wide basis.'' --------------------------------------------------------------------------- The Exchange believes that restoring the requirement to publish a pre-opening indication if a security is not opened by 10:00 a.m. Eastern Time would promote transparency in the opening process for securities that do not open on either a trade or a quote by such time. The Exchange believes that there are limited circumstances when a security would not be opened by 10:00 a.m. and for which a pre-opening indication has not already been published. For example, if the reason a security has not opened by 10:00 a.m. is due to an order imbalance, the DMM would have already published a pre-opening indication, as required by current Rule 15(b)(1). By contrast, if there is no trading interest in a security, such as the first day of trading of a security listed on a when issued basis, the proposed requirement to publish a pre-opening indication for such security would provide investors with additional information regarding the indicative price for such security so they can evaluate whether to submit trading interest to participate in the opening. The Exchange believes that 10:00 a.m. is an appropriate time threshold for publishing a pre-opening indication in such circumstances as it would provide sufficient time for the DMM to gather pricing information for a security that may otherwise have no trading interest.\6\ --------------------------------------------------------------------------- \6\ For example, a security that is listed on a when issued basis generally does not have an offering document that specifies a price for such security. In the absence of trading interest to provide an indication of how market participants would price such a security, a DMM would have to look to other sources, such as research analyst reports, to identify the appropriate pricing. The Exchange notes that in such scenarios, there may be wide fluctuations on the estimated price. The first published pre-opening indication therefore may be wide, but would serve the purpose of providing transparency regarding the potential pricing for such a security. --------------------------------------------------------------------------- To effect this proposed change, the Exchange proposes to amend Rule 15(b)(1) to add sub-numbering within the paragraph, delete the phrase ``before the security opens'' as duplicative of a prior reference to the same phrase, and add the new text, as follows (new text in italics, deleted text bracketed): (b) Conditions for publishing a pre-opening indication: (1) A DMM will publish a pre-opening indication, as described in paragraph (e), (i) before a security opens if the opening transaction on the Exchange is anticipated to be at a price that represents a change of more than the ``Applicable Price Range,'' as specified in paragraph (d) of this Rule, from a specified ``Reference Price,'' as specified in paragraph (c) of this Rule[, before the security opens]; or (ii) if a security has not opened by 10:00 a.m. Eastern Time. The Exchange also proposes to amend Rule 15(d) to add a new Applicable Price Range for securities priced $3.00 and lower. As proposed, for these securities, the Applicable Price Range would be $0.15 on regular trading days. To effect this proposed change, the Exchange proposes to amend Rule 15(d)(1) to provide that, except under the conditions set forth in Rule 15(d)(2), the Applicable Price Range for determining whether to publish a pre-opening indication would be 5% for securities with a Reference Price over $3.00 and $0.15 for securities with a Reference Price equal to or lower than $3.00. The Exchange proposes to make a related change to Rule 15(d)(2) to provide for what the Applicable Price Range would be for securities priced $3.00 and lower if as of 9:00 a.m. Eastern Time, the E-mini S&P 500 Futures are 2% from the prior day's closing price of the E-mini S&P 500 Futures, when reopening trading following a market-wide trading halt under Rule 80B, or if the Exchange determines that it is necessary or appropriate for the maintenance of a fair and orderly market. As proposed, in such case, the Applicable Price Range would be $0.30. The Exchange believes a price range movement of more than $0.15 for lower-priced securities on regular trading days, and more than $0.30 on more volatile trading days, would better reflect when an opening price for such securities is significantly away from the Reference Price, thus warranting a pre-opening indication. By contrast, the Exchange believes that the current 5% Applicable Price Range applicable to securities priced $3.00 and below is too narrow and would result in a disproportionate number of pre-opening indications for these securities as compared to how many pre-opening indications are required for securities priced above $3.00. Requiring pre-opening indications when they would not otherwise be warranted would also reduce the number of securities that would be eligible to be opened by a DMM electronically. For example, based on Exchange data from January 2016 through October 2016, if the Exchange had applied the 5% Applicable Price Range, there would have been 13 securities requiring a pre-opening indication. By contrast, using a $0.15 Applicable Price Change for this same period would have resulted in only four securities requiring a pre-opening indication.\7\ This reduced number of required pre-opening indications would mean that more securities would have been eligible to be opened electronically by the DMM. The Exchange further notes that the proposed break point of which parameter would be used is based on the current price buckets used in the Regulation NMS Plan to Address Extraordinary Market Volatility (``LULD Plan'') (providing that securities priced $3.00 and below are subject to wider percentage parameters than securities priced above $3.00).\8\ --------------------------------------------------------------------------- \7\ When applying the proposed double-wide Applicable Price Change for volatile trading days, as provided for in Rule 15(d)(2), to trade data from August 25, 2015, the change to a $0.30 Applicable Price Change instead of a 10% Applicable Price Change would have resulted in six securities requiring pre-opening indications instead of 76. Similarly, applying these Applicable Price Changes to June 24, 2016, a 10% move would have resulted in 49 securities requiring pre-opening indications, whereas a $0.30 parameter would have resulted in one security requiring pre-opening indication. \8\ See Securities Exchange Act Release No. 77679 (April 21, 2016), 81 FR 24908 (April 27, 2016) (File No. 4-631) (Order approving 10th Amendment to the LULD Plan). --------------------------------------------------------------------------- * * * * * There are no technology changes associated with this proposed rule [[Page 86373]] change. However, because the proposed rule change would require DMMs to change behavior, the Exchange will announce the operative date by a Trader Update that describes the proposed changes. The Exchange will publish this Trader Update no later than 10 days after the operative date of this filing. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\9\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\10\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and protect investors and the public interest. The Exchange believes that amending Rule 15(b)(1) to restore the requirement that a pre-opening indication be published if a security has not opened by 10:00 a.m. Eastern Time would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would provide additional transparency to the opening process if a security has not opened by 10:00 a.m. As such, the Exchange believes that the proposal would advance the efficiency and transparency of the opening process, thereby fostering accurate price discovery at the open of trading. For the same reasons, the proposal is also designed to protect investors as well as the public interest. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange further believes that providing for a $0.15 Applicable Price Range for securities priced $3.00 and lower on regular trading days, and a $0.30 Applicable Price Range for such securities on more volatile trading days, would remove impediments to and perfect a free and open market and a national market system because it would require a wider range of price movement before a pre-opening indication must be published for these lower-priced securities. The Exchange believes that these proposed changes would balance the goal of providing price transparency if there would be significant price dislocation in the opening price of a security compared to the Reference Price with the manual process involved with publishing pre-opening indications. Moreover, the Exchange believes that any reduction in number of pre- opening indications published for these lower-priced securities would not result in less transparency because the Exchange would continue to publish Order Imbalance Information for such securities, as provided for in Rule 15(g). 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 rule change is not intended to address competitive issues but rather promote greater efficiency and transparency at the open of trading 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\ 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b 4(f)(6)(iii) thereunder.\13\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 17 CFR 240.19b 4(f)(6). \13\ In addition, Rule 19b 4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's intent to file the proposed rule change, along with a brief description and 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b 4(f)(6) \14\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \14\ 17 CFR 240.19b 4(f)(6). \15\ 17 CFR 240.19b 4(f)(6)(iii). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-NYSE-2016-78 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-NYSE-2016-78. 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; [[Page 86374]] 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- NYSE-2016-78 and should be submitted on or before December 21, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-28780 Filed 11-29-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices 86371
IV. Solicitation of Comments For the Commission, by the Division of A. Self-Regulatory Organization’s
Trading and Markets, pursuant to delegated Statement of the Purpose of, and the
Interested persons are invited to authority.13 Statutory Basis for, the Proposed Rule
submit written data, views, and Robert W. Errett, Change
arguments concerning the foregoing, Deputy Secretary.
including whether the proposed rule 1. Purpose
[FR Doc. 2016–28773 Filed 11–29–16; 8:45 am]
change is consistent with the Act. BILLING CODE 8011–01–P The Exchange proposes to amend
Comments may be submitted by any of Rule 15 relating to pre-opening
the following methods: indications. The proposed rule changes
SECURITIES AND EXCHANGE would restore the obligation for a DMM
Electronic Comments COMMISSION to publish a pre-opening indication if a
• Use the Commission’s Internet security has not opened by 10:00 a.m.
[Release No. 34–79390; File No. SR–NYSE–
Eastern Time and add a new parameter
comment form (http://www.sec.gov/ 2016–78]
for when a pre-opening indication
rules/sro.shtml); or
Self-Regulatory Organizations; New should be published for lower-priced
• Send an email to rule-comments@ York Stock Exchange LLC; Notice of securities.
sec.gov. Please include File Number SR– Filing and Immediate Effectiveness of
NYSE–2016–77 on the subject line. Background
Proposed Rule Change Amending Rule
15 Relating to Pre-Opening Indications The Exchange recently amended
Paper Comments Exchange rules to consolidate and
• Send paper comments in triplicate November 23, 2016. amend requirements relating to pre-
to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) 1 of the opening indications in Rule 15.4 Rule
and Exchange Commission, 100 F Street Securities Exchange Act of 1934 (the 15(a) provides that a pre-opening
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 indication will include the security and
NE., Washington, DC 20549–1090.
notice is hereby given that on November the price range within which the
All submissions should refer to File 17, 2016, New York Stock Exchange opening price is anticipated to occur
Number SR–NYSE–2016–77. This file LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed and that a pre-opening indication will
number should be included on the with the Securities and Exchange be published via the securities
subject line if email is used. To help the Commission (the ‘‘Commission’’) the information processor and proprietary
Commission process and review your proposed rule change as described in data feeds. Rule 15(b) specifies the
comments more efficiently, please use Items I and II below, which Items have conditions for publishing a pre-opening
only one method. The Commission will been prepared by the self-regulatory indication, and Rule 15(b)(1) provides
post all comments on the Commission’s organization. The Commission is that a DMM will publish a pre-opening
Internet Web site (http://www.sec.gov/ publishing this notice to solicit indication, as described in Rule 15(e),
rules/sro.shtml). Copies of the comments on the proposed rule change before a security opens if the opening
submission, all subsequent from interested persons. transaction on the Exchange is
amendments, all written statements anticipated to be at a price that
I. Self-Regulatory Organization’s represents a change of more than the
with respect to the proposed rule Statement of the Terms of Substance of ‘‘Applicable Price Range’’ from a
change that are filed with the the Proposed Rule Change specified ‘‘Reference Price’’ before the
Commission, and all written The Exchange proposes to amend security opens.
communications relating to the Rule 15 relating to pre-opening Under Rule 15(c), the Reference Price
proposed rule change between the indications. The proposed rule change for a security, other than an ADR, is the
Commission and any person, other than is available on the Exchange’s Web site securities last reported stale price on the
those that may be withheld from the at www.nyse.com, at the principal office Exchange, the security’s offering price
public in accordance with the of the Exchange, and at the in the case of an initial public offering
provisions of 5 U.S.C. 552, will be Commission’s Public Reference Room. (‘‘IPO’’), or the security’s last reported
available for Web site viewing and sale price in the securities market from
printing in the Commission’s Public II. Self-Regulatory Organization’s
which the security is being transferred
Statement of the Purpose of, and
Reference Room, 100 F Street NE., to the Exchange. Rule 15(d)(1) provides
Statutory Basis for, the Proposed Rule
Washington, DC 20549 on official that, except under conditions set forth
Change
business days between the hours of in Rule 15(d)(2), the Applicable Price
10:00 a.m. and 3:00 p.m. Copies of such In its filing with the Commission, the Range for determining whether to
filing also will be available for self-regulatory organization included publish a pre-opening indication will be
inspection and copying at the principal statements concerning the purpose of, 5%. Rule 15(d)(2) provides that if as of
office of the Exchange. All comments and basis for, the proposed rule change 9:00 a.m. Eastern Time, the E-mini S&P
received will be posted without change; and discussed any comments it received 500 Futures are ± 2% from the prior
the Commission does not edit personal on the proposed rule change. The text day’s closing price of the E-mini S&P
identifying information from of those statements may be examined at 500 Futures, when reopening trading
the places specified in Item IV below. following a market-wide trading halt
submissions. You should submit only
The Exchange has prepared summaries, under Rule 80B, or if the Exchange
information that you wish to make
sradovich on DSK3GMQ082PROD with NOTICES
set forth in sections A, B, and C below,
available publicly. All submissions of the most significant parts of such 4 See Securities Exchange Act Release Nos. 78228
should refer to File Number SR–NYSE– statements. (July 5, 2016), 81 FR 44907 (July 11, 2016) (SR–
2016–77, and should be submitted on or NYSE–2016–24) (Approval Order) and 77491
before December 21, 2016. 13 17
(March 31, 2016), 81 FR 20030 (April 6, 2016) (SR–
CFR 200.30–3(a)(12). NYSE–2016–24) (‘‘Opening Notice of Filing’’)
1 15 U.S.C. 78s(b)(1). (‘‘Opening Filing’’). The Exchange implemented the
2 15 U.S.C. 78a.
changes described in the Opening Filing on
3 17 CFR 240.19b–4. September 12, 2016.
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![86372 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices
determines that it is necessary or evaluate whether to submit trading under Rule 80B, or if the Exchange
appropriate for the maintenance of a fair interest to participate in the opening. determines that it is necessary or
and orderly market, the Applicable The Exchange believes that 10:00 a.m. is appropriate for the maintenance of a fair
Price Range for determining whether to an appropriate time threshold for and orderly market. As proposed, in
publish a pre-opening indication will be publishing a pre-opening indication in such case, the Applicable Price Range
10%. such circumstances as it would provide would be $0.30.
sufficient time for the DMM to gather The Exchange believes a price range
Proposed Rule Change movement of more than $0.15 for lower-
pricing information for a security that
The Exchange proposes to amend may otherwise have no trading interest.6 priced securities on regular trading
Rule 15(b)(1) to add another condition To effect this proposed change, the days, and more than $0.30 on more
for when a DMM would be required to Exchange proposes to amend Rule volatile trading days, would better
publish a pre-opening indication. As 15(b)(1) to add sub-numbering within reflect when an opening price for such
proposed, a DMM would be required to the paragraph, delete the phrase ‘‘before securities is significantly away from the
publish a pre-opening indication if a the security opens’’ as duplicative of a Reference Price, thus warranting a pre-
security has not opened by 10:00 a.m. prior reference to the same phrase, and opening indication. By contrast, the
Eastern Time. This requirement was add the new text, as follows (new text Exchange believes that the current 5%
previously set forth in rule text in Rule in italics, deleted text bracketed): Applicable Price Range applicable to
123D(b) that was deleted in the Opening (b) Conditions for publishing a pre- securities priced $3.00 and below is too
Filing.5 The Exchange proposes to opening indication: narrow and would result in a
restore this requirement, as modified. (1) A DMM will publish a pre-opening disproportionate number of pre-opening
Specifically, the Exchange would not indication, as described in paragraph indications for these securities as
retain the prior rule text that required (e), (i) before a security opens if the compared to how many pre-opening
Executive Floor Governor approval to opening transaction on the Exchange is indications are required for securities
extend the 30-minute time frame. The anticipated to be at a price that priced above $3.00. Requiring pre-
Exchange believes that current Rule represents a change of more than the opening indications when they would
15(e)(1), which requires a Floor ‘‘Applicable Price Range,’’ as specified not otherwise be warranted would also
Governor to supervise and approve the in paragraph (d) of this Rule, from a reduce the number of securities that
publication of a pre-opening indication, specified ‘‘Reference Price,’’ as specified would be eligible to be opened by a
provides for appropriate oversight of the in paragraph (c) of this Rule[, before the DMM electronically. For example, based
publication of a pre-opening indication, security opens]; or (ii) if a security has on Exchange data from January 2016
including if such publication would be not opened by 10:00 a.m. Eastern Time. through October 2016, if the Exchange
after 10:00 a.m. The Exchange also proposes to amend had applied the 5% Applicable Price
The Exchange believes that restoring Rule 15(d) to add a new Applicable Range, there would have been 13
the requirement to publish a pre- Price Range for securities priced $3.00 securities requiring a pre-opening
opening indication if a security is not and lower. As proposed, for these indication. By contrast, using a $0.15
opened by 10:00 a.m. Eastern Time securities, the Applicable Price Range Applicable Price Change for this same
would promote transparency in the would be $0.15 on regular trading days. period would have resulted in only four
opening process for securities that do To effect this proposed change, the securities requiring a pre-opening
not open on either a trade or a quote by Exchange proposes to amend Rule indication.7 This reduced number of
such time. The Exchange believes that 15(d)(1) to provide that, except under required pre-opening indications would
there are limited circumstances when a the conditions set forth in Rule 15(d)(2), mean that more securities would have
security would not be opened by 10:00 the Applicable Price Range for been eligible to be opened electronically
a.m. and for which a pre-opening determining whether to publish a pre- by the DMM. The Exchange further
indication has not already been opening indication would be 5% for notes that the proposed break point of
published. For example, if the reason a securities with a Reference Price over which parameter would be used is
security has not opened by 10:00 a.m. is $3.00 and $0.15 for securities with a based on the current price buckets used
due to an order imbalance, the DMM Reference Price equal to or lower than in the Regulation NMS Plan to Address
would have already published a pre- $3.00. The Exchange proposes to make Extraordinary Market Volatility (‘‘LULD
opening indication, as required by a related change to Rule 15(d)(2) to Plan’’) (providing that securities priced
current Rule 15(b)(1). By contrast, if provide for what the Applicable Price $3.00 and below are subject to wider
there is no trading interest in a security, Range would be for securities priced percentage parameters than securities
such as the first day of trading of a $3.00 and lower if as of 9:00 a.m. priced above $3.00).8
security listed on a when issued basis, Eastern Time, the E-mini S&P 500 * * * * *
the proposed requirement to publish a Futures are ± 2% from the prior day’s There are no technology changes
pre-opening indication for such security closing price of the E-mini S&P 500 associated with this proposed rule
would provide investors with additional Futures, when reopening trading
information regarding the indicative following a market-wide trading halt 7 When applying the proposed double-wide
price for such security so they can Applicable Price Change for volatile trading days,
as provided for in Rule 15(d)(2), to trade data from
6 For example, a security that is listed on a when
August 25, 2015, the change to a $0.30 Applicable
5 See Opening Notice of Filing, supra note 4 at issued basis generally does not have an offering Price Change instead of a 10% Applicable Price
20031. Before being amended in the Opening Filing, document that specifies a price for such security. Change would have resulted in six securities
Rule 123D(b) provided: ‘‘If an indication is In the absence of trading interest to provide an requiring pre-opening indications instead of 76.
sradovich on DSK3GMQ082PROD with NOTICES
disseminated after the opening bell, it must be indication of how market participants would price Similarly, applying these Applicable Price Changes
considered a delayed opening. In addition, any such a security, a DMM would have to look to other to June 24, 2016, a 10% move would have resulted
stock that is not opened with a trade or a reasonable sources, such as research analyst reports, to identify in 49 securities requiring pre-opening indications,
quotation within 30 minutes after the opening of the appropriate pricing. The Exchange notes that in whereas a $0.30 parameter would have resulted in
business must be considered a delayed opening such scenarios, there may be wide fluctuations on one security requiring pre-opening indication.
(except for IPOs) and requires Floor Official the estimated price. The first published pre-opening 8 See Securities Exchange Act Release No. 77679
supervision, as well as an indication. That 30- indication therefore may be wide, but would serve (April 21, 2016), 81 FR 24908 (April 27, 2016) (File
minute time frame may only be extended by an the purpose of providing transparency regarding the No. 4–631) (Order approving 10th Amendment to
Executive Floor Governor on a Floor-wide basis.’’ potential pricing for such a security. the LULD Plan).
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![86374 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices
the Commission does not edit personal SSA is soliciting comments on the Your comments regarding the
identifying information from accuracy of the agency’s burden information collections would be most
submissions. You should submit only estimate; the need for the information; useful if OMB and SSA receive them 30
information that you wish to make its practical utility; ways to enhance its days from the date of this publication.
available publicly. All submissions quality, utility, and clarity; and ways to To be sure we consider your comments,
should refer to File Number SR–NYSE– minimize burden on respondents, we must receive them no later than
2016–78 and should be submitted on or including the use of automated December 30, 2016. Individuals can
before December 21, 2016. collection techniques or other forms of obtain copies of the OMB clearance
For the Commission, by the Division of information technology. Mail, email, or packages by writing to
Trading and Markets, pursuant to delegated fax your comments and OR.Reports.Clearance@ssa.gov.
authority.17 recommendations on the information
collection(s) to the OMB Desk Officer 1. Missing and Discrepant Wage
Robert W. Errett,
and SSA Reports Clearance Officer at Reports Letter and Questionnaire—26
Deputy Secretary. CFR 31.6051–2—0960–0432. Each year
the following addresses or fax numbers.
[FR Doc. 2016–28780 Filed 11–29–16; 8:45 am] employers report the wage amounts they
BILLING CODE 8011–01–P (OMB) paid their employees to the Internal
Office of Management and Budget, Attn: Revenue Service (IRS) for tax purposes,
Desk Officer for SSA, Fax: 202–395– and separately to SSA for retirement
SOCIAL SECURITY ADMINISTRATION 6974, Email address: and disability coverage purposes.
[Docket No: SSA–2016–0062]
OIRA_Submission@omb.eop.gov. Employers should report the same
(SSA) figures to SSA and the IRS; however,
Agency Information Collection each year some of the employer wage
Activities: Comment Request Social Security Administration, OLCA,
reports SSA receives show wage
Attn: Reports Clearance Director, 3100
amounts lower than those employers
The Social Security Administration West High Rise, 6401 Security Blvd.,
report to the IRS. SSA uses Forms SSA–
(SSA) publishes a list of information Baltimore, MD 21235, Fax: 410–966–
2830, Email address: L93–SM, SSA–L94–SM, SSA–95–SM,
collection packages requiring clearance
OR.Reports.Clearance@ssa.gov. and SSA–97–SM to ensure employees
by the Office of Management and
Budget (OMB) in compliance with receive full credit for their wages.
Or you may submit your comments
Public Law 104–13, the Paperwork Respondents are employers who
online through www.regulations.gov,
Reduction Act of 1995, effective October reported lower wage amounts to SSA
referencing Docket ID Number [SSA–
1, 1995. This notice includes revisions 2016–0062]. than they reported to the IRS.
and one extension of OMB-approved II. SSA submitted the information Type of Request: Revision of an OMB-
information collections. collections below to OMB for clearance. approved information collection.
Average Estimated total
Number of Frequency of burden per
Modality of completion annual burden
responses response response (hours)
(minutes)
SSA–95–SM and SSA–97–SM (and accompanying cover letters SSA–L93,
L94) .............................................................................................................. 360,000 1 30 180,000
2. Application for Supplemental public who wish to file for SSI. SSA until SSA approves the disability. The
Security Income—20 CFR 416.305– uses the information for two purposes: respondents are applicants for SSI.
416.335, Subpart C—0960–0444. SSA (1) To formally deny SSI for non- Note: This is a correction notice: SSA
uses Form SSA–8001–BK to determine medical reasons when information the published the incorrect burden information
an applicant’s eligibility for applicant provides results in for this collection at 81 FR 81224, on 11/17/
Supplemental Security Income (SSI) ineligibility; or (2) to establish a 16. We are correcting this error here.
and SSI payment amounts. SSA disability claim, but defer the complete
employees also collect this information development of non-medical issues Type of Request: Revision of an OMB-
during interviews with members of the approved information collection.
Average Estimated total
Number of Frequency of burden per
Modality of completion annual burden
respondents response response (hours)
(minutes)
MSSICS/Signature Proxy ................................................................................ 537,207 1 20 179,069
iClaim/MSSICS ................................................................................................ 162,945 1 20 54,315
SSA–8001–BK (Paper Version) ...................................................................... 1,033 1 20 344
sradovich on DSK3GMQ082PROD with NOTICES
Totals ........................................................................................................ 701,185 ........................ ........................ 233,728
3. Incorporation by Reference of Oral Wholly Favorable Written Decisions 404.953 and 416.1453—0960–0694. If an
Findings of Fact and Rationale in (Bench Decision Regulation)—20 CFR administrative law judge (ALJ) makes a
17 17 CFR 200.30–3(a)(12).
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Document Created: 2016-11-30 02:17:51
Document Modified: 2016-11-30 02:17:51
| 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 86371 |
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